Original source · versioned page text
Annual Report 2019-20
Text sections have not been matched to the original PDF pages. Use the original document to check page numbers.
2019 - 20 Annual Report
Statement of Changes in Equity. Financial ratios
The Statement of Changes in Equity illustrates Figure 9 - Community Equity movement Ratios are useful tools for getting a snapshot of the financial status and trends of an organisation. Ratios
how the net worth of Council has changed as a can also be useful in comparing Noosa Council to other Councils to gain an understanding of relative
result of activities undertaken during the period. financial strength. This analysis is undertaken periodically by the Queensland Treasury Corporation
Council’s total community equity as at 30 June (QTC) in assessing the financial sustainability of Council.
2020 is $1.0 billion.
A number of sustainability ratios are mandated under the Local Government Regulation 2012, including
Community equity is equal to total assets (what target ranges for each measure. Details of these ratios are shown in Figure 11, including actual results
we own) less total liabilities (what we owe) and for the current reporting period plus projections over the next 9 years.
represents Council’s net investment in assets.
Figure 11 – Financial Ratios 2019/20 (Actual) to 2028/29 (Forecast)
Figure 9 shows the movement in Community Period Ended30
Period Ended 30June
June 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Equity since the De-Amalgamation of Council in Sustainability Ratios
Sustainability Ratios
2014. Operating Surplus
Operating SurplusRatio
Ratio
Operating Position
Operating Position 6.5%
6.5% (2.3)%
2.3% (0.6)%
0.6% 0.0%
(0.0)% 0.2%
(0.2)% 0.3%
(0.3)% 0.2%(0.2)%0.2% (0.2)%
0.1% 0.2%
(0.1)% (0.2)%
Local Govt
Local Govt Act
Act upper
upperindicator
indicator 10%
10% 10%
10% 10%
10% 10%
10% 10% 10% 10%10% 10% 10% 10% 10%10% 10%10% 10%
Net Financial
FinancialLiabilities
LiabilitiesRatio
Ratio
Statement of Cash Flows
Net Financial
Financial Liabilities
LiabilitiesRatio
Ratio (11.6)% (6.3)%
(6.3)% (7.5)%
(7.5)% (6.5)%
(6.5)% (5.6)%
(5.6)%(9.4)% (13.1)%(13.1)%
(9.4)% (14.8)% (14.8)%
(17.3)% (17.3)%
(19.9)% (19.9)%
Local Govt
Local Govt Act
Act upper
upperindicator
indicator 60%
60% 60%
60% 60%
60% 60%
60% 60%60% 60%60% 60% 60% 60% 60%60% 60% 60% 60%
Asset
Asset Sustainability Ratio
The Statement of Cash Flows shows where Council has generated cash and where these funds have Asset
Sustainability Ratio
SustainabilityRatio
Ratio 121.7% 100.2% 106.9%
106.9% 122.9%
122.9%121.4%
121.4%93.2%93.2%92.1%92.1%
Asset Sustainability 121.7% 100.2% 99.8% 99.8%
96.0% 96.0%
93.9% 93.9%
been expended. The detailed schedule in the financial statements is summarised in Figure 10 (columns Local Govt Act minimum
90% 90% 90% 90% 90% 90% 90% 90% 90% 90%
above the line represent cash flowing into the organisation, and columns below the line represent cash indicator
Local Govt Act minimum indicator 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%
payments made).
Colour Scale:
Colour Scale: Within Moderate
Within ModerateOutside
Outside
range
range range
range
Figure 10 –Net Cash Flow Sources 2019/20 ($’000)
Operating surplus ratio
Council’s should be aiming to achieve as a minimum a balanced operating position to ensure that revenues
received are sufficient to fund operations and capital replacement works. A surplus will be represented by a
positive result.
The 2019/20 operating surplus ratio of 6.5% is a reflection of consistent
revenue growth along with good management of our expenditure, partial
Operating Surplus / (Deficit) prepayment of the 2019/20 financial assistance grant early in June 2020,
__________________________________
revaluation of non-current asset impacts on depreciation expense as well
Total Operating Revenue as some unspent levy funds that are required to be held for future use. The
forecast shows Council’s ongoing commitment to strong financial
management.
Key elements to Council’s annual cash flow include: Net financial liabilities ratio
The target range is less than 60%. A negative percentage indicates that current assets exceed total liabilities
Operating activities depicts the net of income received from rates, interest, grants, etc. and and is considered a very strong position.
payments made to suppliers and employees.
Investing activities relate to the acquisition and sale/disposal of long-term assets, generally in the Net Financial Liabilities
form of roads, bridges, plant and equipment, etc. A negative outcome here represents a net (Total liabilities less current assets) The strong position of (11.6%) at 30 June 2020 indicates that Council has
investment in community infrastructure during the reporting period. __________________________________
the capacity to service higher levels of debt if needed.
Financing activities shows the receipt and repayment of Council borrowings. A negative outcome Total Operating Revenue
here represents that Council has repaid more loans compared to new borrowings raised.
Asset sustainability ratio
Net movement in cash represents the total physical movement of cash, with any accounting
adjustments and accruals removed. The net positive movement in cash for the year of $1.0 million This is a measure of whether Council is reinvesting in existing assets to ensure that they meet required
represents a net increase in cash on hand, with all significant outlays fully funded within the period. levels of service for the community.
During 2019/20 Council achieved a ratio of 121.7%. This ratio is reflective
Annual Asset Renewal and
of the efficient delivery of the capital program during the year, including an
Rehabilitation Expenditure
__________________________________ investment of $18 million in the replacement of infrastructure such as
roads, bridges and buildings. This result reflects Council’s continued
Annual Depreciation Charge investment in infrastructure replacement and adherence to sound asset
management principles to maintain levels of service to the community.
Page 62
P P Page 63
Noosa Council | Annual Report 2019 – 2020 Page 6 Noosa Council | Annual Report 2019 – 2020 Page 7
Preview the original
The page text is free to read. Previews and downloads of original files need an account.
Log in to previewLog in to download the original (Annual Report 2019-20(PDF, 7MB).pdf)
Searchable page text hides email addresses. Original files are unchanged and may show email addresses.