Financial Performance Report – Jul 2024 · Financial Performance Report

GENERAL COMMITTEE MEETING                                      12 AUGUST 2024


Category                     Comments
Operating Surplus Ratio         •   Intent: Identifies the extent to
                                    which       revenues       cover
                                    operational expenses, to ensure
                                    community      equity   is   not
                                    degraded
                                •   Target: Greater than 0%
                                •   Result: 77.9%
                                •   Comment: The high ratio
                                    reflects the levying of rates in
                                    July, which will degrade as
                                    expenditure       occurs      on
                                    operations through the financial
                                    year to 30 June 2025.


Cash Expense Cover              •  Intent: Indicates    how     long
                                   council can continue paying its
                                   day-to-day expenses from cash
                                   at    bank    without    needing
                                   additional cash flows
                                • Target: Greater than 3 months
                                • Result: 10.2 months
                                 • Comment: Current cash cover
                                    remains above target, while
                                    business as usual expenditure
                                    through to 30 June 2025 will
                                    degrade      Council’s     cash
                                    holdings, albeit not below the
                                    target range of 3 – 6 months.
                                    Cash balances include funding
                                    for capital programs, unspent
                                    grant monies paid in advance,
                                    Waste        Levy        subsidy
                                    prepayments and QRA advance
                                    payments for disaster projects
                                    which are restricted for specific
                                    purposes and inflate the ratio.


Asset Sustainability Ratio      •   Intent: Measures the extent to
                                    which assets are being replaced
                                    as their condition degrades to
                                    ensure service potential is
                                    maintained
                                •   Target: 80% of depreciation
                                    budget spent on renewals
                                    annually
                                •   Result: In line with budget.
                                •   Comment: The capital program
                                    has only just commenced. It is
                                    expected that the ratio will
                                    progressively increase each
                                    month as expenditure on
                                    renewals occurs.