Annual Report 2019-20

                                                                                                                                                                                                                                                                                                                                                      2019 - 20 Annual Report

  Highlights and achievements                                                                                   Where was the budget spent?
  Council has achieved another positive financial result this year. The following outcomes were achieved        Council spends significant amounts of ratepayer funds providing a range of services to the Noosa
  during the year:                                                                                              community. A summary of the cost of the services for our major service areas is provided in Figure 2.
                                                                                                                Spending on these services (including roads, bridges, parks, community facilities and waste
  1.     An operating surplus of $0.64 million was still achieved even after accommodating the financial
                                                                                                                management) makes up a significant component of Council’s annual budget.
         impacts of the COVID-19 pandemic.
  2.     The key COVID-19 financial impacts for Council included lost revenues from the closure of              Figure 2 – Operating Cost of Core Council Services 2019/20 ($’000)
         community facilities between March and June, reductions in waste collection charges, the provision
         of business and community financial support packages as well as increased personal protection            $30,000
         measures for the community and staff.
                                                                                                                  $25,000
  3.     A net financial result of $10.98 million when adding Council’s share of Unitywater’s annual profit,
         capital revenue and capital income to Council’s operating profit.                                        $20,000
  4.     A decrease in debt levels supported by stable cash balances.
                                                                                                                  $15,000

                                                                                                                  $10,000

        $97.2 million                                                             Over $1 Billion                  $5,000

        Operating
                                                       $2.7 million
                                                                                                                         $0
        Revenue                                          Reduction




                                                                                                                                                                             Parks and Reserves


                                                                                                                                                                                                  Community Facilities




                                                                                                                                                                                                                                                 Property / Holiday Parks




                                                                                                                                                                                                                                                                                                         Building / Plumbing
                                                                                                                                                                                                                                                                              Planning and Environment




                                                                                                                                                                                                                                                                                                                                                                                Local Laws
                                                                                                                                                                                                                         Libraries / Galleries
                                                                                                                               Roads / Bridges / Drainage




                                                                                                                                                                                                                                                                                                                               Economic Development


                                                                                                                                                                                                                                                                                                                                                        Community Development




                                                                                                                                                                                                                                                                                                                                                                                              Community Engagement
                                                                                                                                                            Waste / Health
        generated                                         in Debt
                                                                                 in Community Equity

                   $18 million                $10.6 million                   Credit rating
                    on renewal of
                                              Received in                     Sound with a
                    Infrastructure
                                              Grants and Subsidies            Neutral outlook
                        Assets



  Background                                                                                                    Statement of Comprehensive income
  Council’s annual financial statements are                  Figure 1 – Financial Reporting Elements            This statement (also known as the profit and                                                                                                                Figure 3 – Council Net Result Financial Performance
  prepared to comply with Australian Accounting                                                                 loss) measures how Council performed                                                                                                                        2019/20 ($’000)
  Standards and contain specific information                                                                    financially in relation to funding its operations
  regarding financial performance.                                                                              during the financial year. In simple terms, it                                                                                                                                                                                        2018/19                                2019/20
                                                                                                                summarises how much money was received by                                                                                                                                                                                              ($’000)                                ($’000)
  Financial statements include:                                                                                 Council and how much was spent in a particular
    a Statement of Comprehensive Income                                                                        year. Figure 3 summarises Council’s 2019/20                                                                                                                  Revenue                                                                  112,575                                111,738
      (i.e. Profit and Loss),                                                                                   financial performance.
    a Statement of Financial Position                                                                                                                                                                                                                                       Expenses                                                                  95,090                                100,750
      (i.e. Balance Sheet),                                                                                     The 2019/20 net result of $10.98 million includes
    a Statement of Changes in Equity, and                                                                      non-operational items such as revenue received                                                                                                               Net Result                                                                17,485                                 10,988
    a Statement of Cash Flows.                                                                                 specifically to fund capital expenditure (including
                                                                                                                grants     and     subsidies     and     developer                                                                                                          The removal of $10.34 million of non-operational
  Collectively, these financial statements provide a                                                            contributions), Council’s share of Unitywater’s                                                                                                             items shows Council’s actual operating surplus
  formal picture of the financial strength of an                                                                annual profit and movements in investment                                                                                                                   to be $0.64 million
  organisation.                                                                                                 property valuations.

  The Community Financial Report (CFR) consists
  of five key reporting elements, each of which has
  a specific purpose for the measurement and
  presentation of Council’s finances. The linkages
  between the five key elements are shown in
  Figure 1.

Page 58                                                                                                              P                                                                                                                                                                                                                                                                                               Page 59
  Noosa Council | Annual Report 2019 – 2020                                                            Page 2   Noosa Council | Annual Report 2019 – 2020                                                                                                                                                                                                                                                            Page 3