2016-02-08 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                              8 FEBRUARY 2016


3                       DECEMBER QUARTER BUDGET REVIEW
OCUMENT INFORM AT ION




Author                             Manager Financial Services, Wayne Jensen
                                   Corporate Services Department

Index                              ECM/Subject/ 7.09 – 2015/2016 Budget

Attachments                        1.    Proposed Budget Adjustments – operating and capital
                                   2.    Revised Budget Financial Statements


EXECUTIVE SUMMARY
The Local Government Act 2009 and Local Government Regulation 2012 require Council to
undertake regular reviews of the adopted budget to ensure it remains reflective of planned
activities to be funded through the budget period. Consequently, a review of all activities has
been undertaken using income and expenditure figures as at the end of December 2015.

RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee
Meeting dated 8 February 2016 and approve the requested changes to the budget for the
2015/16 financial year, as outlined in Attachments 1 and 2 to the Report.


REPORT
Section 170(3) of the Local Government Regulation 2012 allows Council, by resolution, to amend
the budget at any time before the end of the financial year. As such, formal reviews have been
scheduled to be undertaken following the close of each quarter (July to September; October to
December; January to March), using year-to-date figures as the basis for any revised forecasts.
This review also provides an opportunity to take account of any additional information that has
come to light since the adoption of the original budget to ensure the most accurate figures are
included.
The Revised Budget Financial Statements clearly identify statement line items that have been
affected by the proposed adjustments.
Key considerations for any budget adjustments include:
                      All increases in operating expenditure should be funded. If variances cannot be funded at
                        the branch or departmental level, then operational savings, determined after collaboration
                        with other departments, should be identified to ensure no degradation in the overall
                        operating position for Council.
                      Proposed reallocation of savings or additional revenue will be confirmed by the leadership
                        team based on business risk assessment.
                      The business capacity to deliver the adopted works program should be considered as part
                        of the evaluation process for all projects.

1.                      Operating Budget Adjustments

There have been a number of proposed adjustments to the operating budget. Requests for
additional expenditure have not impacted Council’s operating position as they have been funded
with savings in other expenses or through additional revenue, apart from a recent decision of
Council relating to advance funding for the Noosa Biosphere Reserve Foundation Ltd (which is
funded via restricted cash held in the Environment Levy reserve).

                                                                                                   Page 23 of 47