2016-03-01 Infrastructure and Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                                      1 MARCH 2016


1.     FINANCE

The objective of all services within the Community Facilities branch is to balance the demands of
access, equity and community service obligations with sound financial management and improve
revenue through innovative and entrepreneurial approaches, whilst minimising operational costs.

NCS operates under funding agreements with both the State and Federal Governments. In
November 2015, NCS received a funding offer of $4.949m from the Federal Government’s
Commonwealth Home Support Programme (CHSP). This funding offer will allow NCS to continue
to provide its services to the community until at least 30 June 2018 and was formally accepted by
Council at its December 2015 meeting.

YTD financial performance as at 31 January 2016


                                 2015/16        2015/16       2015/16      2015/16        %
     Statement of Income and
                                 Current       Forecast        YTD           YTD        Current     YTD
            Expenses
                                 Budget         Budget        Budget       Actuals      Budget    Variance

Total Revenue                     2,690,308      2,729,474     1,979,474    2,132,971     79.3%      153,496
Total Expenditure                 2,718,483      2,757,649     1,596,974    1,533,038     56.4%       63,935
Operating Surplus / (Deficit)       (28,175)       (28,175)      382,501      599,932                217,431


Expenditure Summary
Employee Benefits                 1,726,517      1,726,517     1,017,634      912,114     52.8%      105,520
Materials & Services                479,046        518,212       280,137      319,749     66.7%      (39,612)
Other Expenses                            0              0             0          238    100.0%         (238)
Depreciation & Amortization          48,813         48,813        28,474       28,474     58.3%             0
Internal Charges                    464,108        464,108       270,730      272,464     58.7%       (1,734)
Competitive Neutrality                    0              0             0            0      0.0%             0
Total                             2,718,483      2,757,649     1,596,974    1,533,038                  63,935


The current financial position sees NCS operating within its funding grants for the first 7 months
of 2015/16.

Revenue was up against budget due mainly to the timing of grant payments and to a lesser
degree, because of unbudgeted indexed increases to agreed funding levels. A BR3 adjustment
has accounted for these increases however this is not reflected in the above financial report.

Employee benefits were underspent by $105,520 for the 7 month period, largely due to a delay in
filling the roles of an Administration Assistant and two Community Care Assistants earlier in the
year. During this period labour hire staff and contractors were used to fill some gaps, resulting in
a Materials & Services overspend of $39,612.

Should there be any funds unexpended at end of financial year then these will be rolled into the
reserves account and used to deliver client services at some point in the future.




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