2015-10-14 Audit & Risk Committee Meeting - Draft Annual Financial Statements

NOOSA SHIRE COUNCIL

Long-Term Financial Sustainability Statement
Prepared as at 30 June 2015
   Measures of Financial Sustainability
       (i) Operating surplus ratio
                 Operating surplus (Net result excluding all capital items) divided by total operating revenue (excludes capital revenue)
       (ii) Asset sustainability ratio
                 Capital expenditure on the replacement of assets (renewals) divided by depreciation expense.
       (iii) Net financial liabilities ratio
                 Total liabilities less current assets divided by total operating revenue

   Council's performance at 30 June 2015 against key financial ratios:

                                                                             Operating                 Asset       Net financial
                                                                            surplus ratio           sustainability  liabilities
                                                                                                        ratio          ratio

         Target                                                              between 0%               greater than            not greater
                                                                              and 10%                     90%                  than 60%
               Actuals at 30 June 2015                                          7.92%                    65.10%                   1.16%
               Projected for 30 June 2016                                       1.30%                   129.50%                 12.30%
                              30 June 2017                                      1.50%                    99.00%                 11.40%
                              30 June 2018                                      1.90%                   100.10%                 10.20%
                              30 June 2019                                      2.30%                   100.60%                   8.60%
                              30 June 2020                                      2.60%                   100.10%                   4.20%
                              30 June 2021                                      1.90%                    97.80%                   0.70%
                              30 June 2022                                      2.00%                    97.10%                  -3.20%
                              30 June 2023                                      1.90%                    96.20%                  -7.00%
                              30 June 2024                                      2.00%                   100.00%                  -9.90%

   Financial Management Strategy
   Council measures revenue and expenditure trends over time as a guide to future requirements and to make decisions about the efficient
   allocation of resources to ensure the most effective provision of services. Council ensures that its financial management strategy is
   prudent and that its long-term financial forecast shows a sound financial position whilst also being able to meet the community’s current
   and future needs.



                                                                  Certificate of Accuracy
                                     For the long-term financial sustainability statement prepared as at 30 June 2015

   This long-term financial sustainability statement has been prepared pursuant to Section 178 of the Local Government
   Regulation 2012 (the regulation).

   In accordance with Section 212(5) of the Regulation we certify that this long-term financial sustainability statement
   has been accurately calculated.

    _____________________________________                                  ___________________________________
    Mayor                                                                  Chief Executive Officer

    Name: ..............................................................   Name: ...........................................................

    Date: ______/______/______                                             Date:______/______/_______