2015-08-24 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                        24 AUGUST 2015


4                        BUDGET REVIEW FOR 2014/15 CARRYOVER EXPENDITURE
DOCUMENT INFORM AT ION




Author                             Manager Financial Services, Wayne Jensen
                                   Corporate Services Department

Index                              7.09 – 2015/2016 Budget

Attachments                        1.   Proposed Carryover Requests – Operating and Capital
                                   2.   Revised Budget Financial Statements


EXECUTIVE SUMMARY
The Local Government Act 2009 and Regulations require Council to undertake regular reviews of
the adopted budget to ensure it remains reflective of planned activities to be funded through the
budget period. At the close of each financial year, any uncompleted projects are considered for
possible carryover into the subsequent budget year.

RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee
Meeting dated 24 August 2015 and approve the requested changes to the budget for the 2015/16
financial year as outlined in the attached Revised Budget Financial Statements.


REPORT
The Local Government Regulation 2012, at section 170(3) allows Council, by resolution, to
amend the budget for a financial year at any time before the end of the financial year.

Along with regular quarterly reviews of the adopted budget, in October, January and April of each
year, a full review of uncompleted projects is undertaken in July to consider the carryover of
these projects into the following budget year. To qualify for consideration, there must be an
operating surplus, and there must also be sufficient funds from the original project budget to
complete the works in the new financial year.

Generally, there is no carryover of operational funding unless there is a contractual obligation;
specific funding from operational grants; or a Council resolution.

1.                       Operating Carryovers Proposed

Attachment 1 shows all of the proposed carryovers, and includes $257,332 in operational
carryovers. This includes projects funded from operational grants; identified in specific Council
resolutions; and projects funded from constrained cash on hand.

2.                       Capital Project Carryovers Proposed

There is a total of $8,059,208 in proposed capital project carryovers, relating to 46 individual
projects, some of which are eligible for grant funding ($968,722). Attachment 1 provides a
detailed explanation as to the reasons why these projects were not completed and / or the extent
of works to be undertaken.




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