2016-11-14 General Committee Meeting Notes

GENERAL COMMITTEE MEETING AGENDA                                                               14 NOVEMBER 2016


4                         SEPTEMBER QUARTER BUDGET REVIEW (BR2)
OCUMENT INFORM AT ION




Author                               Manager Financial Services, Wayne Jensen
                                     Corporate Services Department

Index                                ECM/ Subject/ 7.13: 2016 - 2017 Budget

Attachments                          1.    Proposed Budget Adjustments – Operating
                                     2.    Proposed Budget Adjustments – Capital
                                     3.    Revised Budget Financial Statements


EXECUTIVE SUMMARY
The Local Government Act 2009 and Local Government Regulation 2012 require Council to
undertake regular reviews of the adopted budget to ensure it remains reflective of planned
activities to be funded through the budget period. Consequently, a full review of all operational
and capital activities has been undertaken using income and expenditure figures as at the end of
September 2016.

RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee
Meeting dated 14 November 2016 and approve the requested changes to the budget for the
2016/17 financial year, as outlined in the attached Budget Financial Statements.


REPORT
Section 170(3) of the Local Government Regulation 2012 allows Council, by resolution, to amend
the budget at any time before the end of the financial year. As such, formal reviews have been
scheduled to be undertaken following the close of each quarter (July to September; October to
December; January to March), using year-to-date figures as the basis for any revised forecasts.

This review provides an opportunity to take account of any additional information that has come
to light since the last review and to ensure the most accurate figures are included in the year-end
forecast. The September quarter review establishes a revised 30 June 2017 forecast position,
which then forms the basis for the ensuing 10-year financial plan.

The Revised Budget Financial Statements clearly identify statement line items that have been
affected by the proposed adjustments. It is noted that the Budget Financial Statements have
been amended to reflect the actual closing position as at 30 June 2016, and therefore the
Statement of Financial Position, Statement of Cash Flows, and Statement of Changes in Equity
all show variations from the original forecast position from the original budget.

Key requirements for budget reviews include:
•                       All increases in operating expenditure should be funded. If variances cannot be funded at the
                        branch or departmental level, then operational savings, determined after collaboration with
                        other departments, should be identified to ensure no degradation in the overall operating
                        position for Council.
•                       Proposed reallocation of savings or additional revenue will be confirmed by the leadership
                        team based on business risk assessment.
•                       The capacity to deliver capital projects has been considered as part of the evaluation
                        process.


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