2015-09-21 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                           21 SEPTEMBER 2015


Finance & Risk

1.   Breakdown of operational costs for the BFAC since January 2014

A breakdown of operational costs for the BFAC since 1 January 2014 can be found in
Attachments 1 and 2. The breakdown has been provided based on financial years, however the
2013/14 financial year only represents the six months of operation since 1 January 2014.

The following table summarises the operating costs (actuals) for each financial year:

                                                      2014/15 FY         2013/14 FY (6 months)
 Revenue                                                 -$8,973                        -$5,163
 Expenditure                                            $117,550                       $95,364
  Employee Benefits                                      $50,684                       $62,977
  Materials & Services                                   $65,146                       $31,583
  Other Expenses                                          $1,719                          $804

 Net Operating Cost to Council                           $108,576                         $90,201

 Depreciation & Amortization                              $19,082                          $9,412
 Corporate Overheads*                                     $75,800                         $37,900

 Total Cost to Council                                   $203,458                        $137,513

 * Limited information on corporate overheads for 2014/15 and 2013/14 financial years.
 Corporate overheads from 2015/16 financial year budget have been used for more accurate
 comparison as suggested and calculated by the finance team.

Note that employee benefits represent staff costed directly to the BFAC. For example, the full
time staff member ceased at the end of the 2013/14 financial year and was replaced by staff from
other areas such as the Community Development team. In this case employee costs for
Community Development staff have not been directly allocated to the BFAC.

As highlighted in the report to the Infrastructure and Services Committee on the 15 September
2015, limited programming has been undertaken at the BFAC for some time, particularly since 1
July 2014.

2.   Estimate of costs since Council decision in March 2015

Estimated costs for staff time and all consultant fees since the Council decision at the Ordinary
Meeting on 12 March 2015 are shown in the following table:

                                                                                 Estimated cost
 Staff time/ wages (Estimate)                                                            $5,975
 Consultant fees (Actual)                                                                $1,688
 Total                                                                                   $7,663

These costs cover a period of approximately five months. The original estimate to undertake the
business planning project was $8,000 over a period of approximately three months.




                                                                                        Page 4 of 9