2019-03-12 Planning & Environment Committee Agenda

PLANNING & ENVIRONMENT COMMITTEE MEETING AGENDA                                    12 MARCH 2019


      ‘big ideas’ grant program round. This grant round committed $330,000 to 3 large projects
      and 6 small projects (under $20,000). The allocation of this funding occurred within NBRF
      financial capacity.

2.    Clause 5.1 (b) – Develop an Operational Plan and Budget aligned with the objectives for
      the Company and the Public Trust for each financial year and submit to Council for review
      no later than three months before the beginning of each financial year. This was done as
      part of the 2017/18 budget process. For the 2017/18 financial year, the Board advised that
      the same funding requirements would be required as the previous year based on both the
      operational needs and the intent to run the ‘big ideas’ grant program during 17/18. Council
      allocated $140,000 towards operational requirements for NBRF and $250,000 from
      Environment Levy for project grants. Both of these figures were drawn on by NBRF in
      2017/18. Further information is provided in the financial section of this report and in the
      audited financial statements and management accounts (refer appendix A and B of
      Attachment 1)

3.    Clause 5.1 (e) – In conjunction with the Council, develop appropriate key performance
      indicators that best reflect the performance of the NBRF against the objects of the Public
      Trust and submit to Council for review no less than 3 months before the beginning of each
      financial year. As part of the new funding deed (2018-2021) key performance indicators
      have been developed (referred to in Clause 6.2 (b) and found at schedule 1 of the Funding
      Deed 2018-2021). These KPIs from the 2018-2021 Funding Deed are more extensive than
      the previous funding deed and have been reported against in the attached annual report as
      provided in Attachment 1.

4.    Clause 5.2 (a) – Prepare an Annual Report for each financial year and submit to Council no
      later than 30 November each year. The Annual Report is to include evidence that the
      funding is being successfully applied to the objects of the company and public trust and
      particularly to the delivery of projects funded by the Council contribution. The attached
      report (Attachment 1) has been provided by NBRF in relation to this requirement for the
      2017/2018 financial year. NBRF advised Council’s CEO they would not be able to meet
      the 30 November deadline due to unforeseen medical issues. The Annual Report was
      received in February 2019 and is the subject of this report.

5.    Clause 5.2 (c) – Provide an audited financial report (which identifies the use of the funding
      provided by Council for the NBRF program). The attached Audited financial report was
      actually provided to Council in November as part of the Q1 progress presentation and is
      also submitted as part of the NBRF annual report (refer Appendix A, Attachment 1).

For the 2017/18 financial year Council provided $250,000 from the Environment Levy for delivery
of programs aligned with the principal purposes of the trust as well the amount of $140,000 for
operational funding.

The accounting standards for not for profit organisations over $250k require that grant funding
received is only recognised as income when funds are expended on a project. Until then, Council
funds are recognised in the NBRF balance sheet as an asset (cash) and liability (unexpended
grant) respectively. As funds are expended, they are recognised in the Profit & Loss statement as
income with a matching expense with a corresponding reduction in the balance sheet. The
annual operating funding is not treated in this way as no third party is involved.

The notes to the financial statement indicate that changes to the Australian Accounting
Standards will result in changed requirements in relation to accounting for fair value of the right to
use the premises provided by Council at Doonella House. These changes will come into effect
from 30/6/2020.



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