2014-05-26 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                    26 MAY 2014


2.   BUDGET REVIEW FOR THE 6 MONTHS ENDING 30 JUNE 2014

Author           Manager Financial Services, Wayne Jensen
                 Corporate Services

Index            ECM / Budget / 2013-2014 Budget

Attachments      1.    6 Month Budget Financial Statements
                 2.    Schedule of Changes to Operating and Capital Budgets



EXECUTIVE SUMMARY
Council is required to undergo regular budget reviews throughout the financial reporting period to
ensure that forecast income and expenditure reflect the actual financial performance of Council,
and to account for known variations to the original budget estimates.

The original budget for the 6 months to 30 June 2014 was based around the adopted Sunshine
Coast Regional Council budget and modified for known variances. The past 4 months has
provided an opportunity for revision of these original estimates based on the adopted operating
model for Noosa Council, and to account for structural changes that have occurred.

All changes proposed in the budget review are financed via reallocation of existing funds, with no
negative impact on Council’s bottom line.

RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee dated
26 May 2014 and adopt the changes identified in the budget statements attached to the report.



REPORT
A thorough review of all budget areas has been undertaken in parallel to the development of the
2014/15 draft budget, and has identified a range of adjustments to the original budget.

A significant number of changes are reallocations of existing budgets to account for the Noosa
operating model (e.g. fleet and stationary charges). There are a further raft of changes to
accommodate known variances in employee costs that have been previously reported to Council.

Further adjustments have been made (primarily to materials and services) to accommodate
increases in the Capital Works Program.

Significant variances are identified below, summarised under the relevant reporting line in the
financial statements attached.

1.   Operating Revenue
    Fees and Charges – corrections to budgets where originally overstated and also to
     recognise additional revenue from holiday parks;
    Rental Income – adjustments to recognise additional revenue;




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