2021-02-09 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                            9 FEBRUARY 2021


Expenditure Growth Breakdown ($’000)
                                                                      Expenditure for
                                                                        industry
                                                                        development, vehicle
                                                                        costs and rent
                                                                        decreased by $55k in
                                                                        2020
                                                                      Visitor information
                                                                        centre costs
                                                                        increased in line with
                                                                        increases in revenue
                                                                        in 2020
                                                                      Marketing costs
                                                                        increased by $27k or
                                                                        2% in 2020



Financial Sustainability
Tourism Noosa appears to have some emerging financial sustainability challenges based on the
2020 financial year result. The following key issues are noted:
    The realisation of a $279k operating deficit in 2020 (which included job keeper cash flow
      support of $186k received as revenue).
    A significant reduction in cash holdings of $560k (79%) from $710k to $150k as at 30 June
      2021.
    As at 30 June 2020 free cash holdings were negative (albeit $94k of receivables were
      owing to the organisation).
Cash flows and in particular expenditure will need to be carefully managed moving forward in the
short term to ensure that going concern risks can be managed.

Operating Surplus ($’000)
                                                                      The operating
                                                                        surpluses in the
                                                                        graph exclude some
                                                                        minor interest
                                                                        revenue received
                                                                      The 2020 operating
                                                                        loss reflects
                                                                        increases in
                                                                        expenditure unable
                                                                        to be offset by
                                                                        additional revenues




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