Annual Report 2023-24

      Noosa Council




                                                                                                                                            Financial Performance
      Current Year Financial Sustainability Statement
      §Note/Subtotal§
      §Subnote§




                                                                                            Target           Actual          5 Yr Av.
                                                                                             Tier 3           2024           2020-24

      Audited ratios
      Council's performance at 30 June 2024 against key financial ratios and targets.


      Liquidity

      1. Unrestricted Cash Expense Coverage Ratio
      Total Cash and Equivalents add Current Investments add
      available ongoing QTC working capital limit less Externally                           Greater
      Restricted Cash                                                                                         9.3
                                                                              x 12          than 3                              N/A
                                                                                                             months
      Total Operating Expenditure less Depreciation and Amortisation                        months
      less Finance Costs

      Council's cash position is strong with the majority of restricted cash being internally restricted and therefore available to
      cover emergent expenditure if required. Internally restricted cash also includes reserves to fund the carryover and com-
      pletion of Council's capital works program.


      Operating Performance

      2. Operating Surplus Ratio
      Operating Result                                                                      Greater
                                                                                                              5.31%           4.55%
      Total Operating Revenue                                                               than 0%

      This result indicates Council is operating efficiently and generating small surplus margins which are set aside in reserve for
      future investment or to fund emergent costs. This ratio includes restricted funds from unspent levies and grant programs
262   as well as Council's equity share of profit in Unitywater which has not yet been fully received as a cash distribution.               263


      3. Operating Cash Ratio
      Operating Result add Depreciation and Amortisation add Finance Costs                  Greater
                                                                                                             22.31%           25.17%
      Total Operating Revenue                                                               than 0%

      Council is generating sufficient revenues to fund its operational expenditure requirements, while also providing cash flow to
      support capital expenditure renewal requirements.


      Asset Management

      4. Asset Sustainability Ratio
      Capital Expenditure on Replacement of Infrastructure Assets (Renewals)                Greater
                                                                                                            119.18%          122.71%
      Depreciation Expenditure on Infrastructure Assets                                    than 80%

      Council prioritises the renewal of its existing assets in line with Asset Management principles to ensure service potential is
      maintained, before investment in the construction of new assets.

      Renewal expenditure from QRA Disaster funded projects has been excluded from the calculation of this ratio to eliminate any
      distortion of the ratio.




                                                                                                                                            Noosa Council Annual Report 23/24
      5. Asset Consumption Ratio
      Written down replacement cost of Depreciable Infrastructure Assets                    Greater
                                                                                                             71.18%           73.48%
      Current replacement cost of Depreciable Infrastructure Assets                        than 60%

      This ratio approximates the extent to which council's infrastructure assets have been consumed compared to what it would
      cost to build a new asset with the same benefit to the community. Council is investing sufficiently in the renewal of its existing
      assets to ensure service levels to the community are maintained.




      continued on next page ...                                                                                            Page 51 of 60