2019-12-10 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                    10 DECEMBER 2019


9                        BUDGET WRAP UP
DOCUMENT INFORM AT ION




Author                          Director Corporate Services, Michael Shave
                                Corporate Services Department

Index                           ECM/ 22.09 – Monthly Financial Performance Report

Attachments                     Nil



EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Director Corporate Services to the Services & Organisation
Committee Meeting dated 12 December 2019 providing a summary of Council’s financial
performance against the 2018/19 budget.


REPORT
As part of required monthly financial performance reporting against budget, a report was
provided to the 15 July 2019 General Committee meeting outlining Council’s interim financial
performance against budget for the 2018/19 year. Now that the financial statements and annual
report have been completed it is timely that Council is provided with a final summary of financial
performance against budget.

A wrap up report is considered necessary given that often the detail in the financial statements is
different to that reported in the budget reports and includes a number of non-cash adjustments
(i.e. movements in employee liabilities, landfill rehabilitation provisions, Unitywater equity
ownership) that make it challenging to assess Council’s overall performance against budget.

Overall Operating Performance

Operating financial performance relates to the business as usual services provided by Council to
the community and excludes capital related revenue sources in addition to any capital
expenditure. From a financial sustainability perspective achieving an operating surplus reflects
the fact that day to day services are being appropriately funded without degrading cash reserves,
and sufficient cash is also being collected to reflect infrastructure consumption (and as such is
allowing for ongoing future asset renewal via funding of the capital program).

The table below outlines Council’s operating performance against budget once all financial year-
end adjustments were made.

Operating Summary to 30 June 2019
                                Budget                      Actual   Variance $m
                                    $m                         $m
Operating Revenue                 $95.1                      $99.2           $4.1
Operating Expense                 $93.7                      $92.1           $1.7
Operating Surplus                  $1.4                       $8.6           $5.7
Operating Surplus Ratio           1.5%                       8.7%
Note: Some rounding



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