Annual Report 2016-17

Community Financial Report 2016/17
                                                                                                                    Where was the budget spent?
                                                                                                                    Council spends significant amounts of ratepayer funds providing a range of services to the Noosa
                                                                                                                    community. A summary of the cost of the services for our major service areas is provided in the graph below.
                                                                                                                    Spending on these services (including roads, bridges, parks, community facilities and waste management)
                                                                                                                    makes up a significant component of Council’s annual budget.

                                                                                                                    Figure 2 - Operating Cost of Core Council Services 2016/17 ($’000)
                                                                                                                    $30,000

Background                                                                                                          $25,000
This report aims to simplify the financial information that Council is required to prepare under legislation and
provides a simple summary of Council financial performance for the 2016/17 year just ended (1 July 2016
                                                                                                                    $20,000
through to 30 June 2017).

Council’s annual financial statements are prepared to comply with                                                    $15,000
Australian Accounting Standards, and contain specific information
regarding financial performance.
                                                                                                                    $10,000
Financial statements include a statement of comprehensive income
(i.e. profit and loss), a statement of financial position (i.e. balance
sheet), a statement of cash flows as well as a statement of changes                                                   $5,000
in equity. Collectively, the statements provide a formal picture of the
financial strength of an organisation.
                                                                                                                         $0




                                                                                                                                                                   Waste/ Health
                                                                                                                                        Roads/ Bridges/ Drainage




                                                                                                                                                                                   Parks & Reserves


                                                                                                                                                                                                      Community Facilities


                                                                                                                                                                                                                             Libraries/ Galleries


                                                                                                                                                                                                                                                    Property/ Holiday Parks


                                                                                                                                                                                                                                                                              Planning & Environment


                                                                                                                                                                                                                                                                                                         Building/ Plumbing


                                                                                                                                                                                                                                                                                                                              Economic Development


                                                                                                                                                                                                                                                                                                                                                     Community Development


                                                                                                                                                                                                                                                                                                                                                                             Local Laws


                                                                                                                                                                                                                                                                                                                                                                                            Community Engagement
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 the figure on the right.
                                                                          Figure 1 - Financial Reporting Elements




Highlights and achievements
In line with previous years, Council has achieved a strong financial result for the 2016/17 year. The following      Statement of comprehensive income
key outcomes were achieved during the period:
                                                                                                                    This statement (also known as the profit and loss) measures how Council performed financially in relation
1. An operating surplus of $3.1 million as a result of strong revenue growth and good expenditure                   to funding its operations during the financial year. In simple terms, it summarises how much money was
   management, as well as some unspent levy funds that are required to be held for future use.                      received by Council and how much was spent in a particular year. The following table summarises Council’s
                                                                                                                    2016/17 financial performance.
2. A positive net result of $17.1 million when adding Council’s share of Unitywater’s annual profit, capital
   revenue and capital income to Council’s operating profit, whilst deducting capital expenses.                      Figure 3 - Council Financial Performance 2016/17 ($’000)
3. An increase in cash holdings and a decrease in debt levels required to be repaid.
                                                                                                                                                                                                                                     2015/16                                                           2016/17
4. No significant issues identified in the annual audit of Council’s finances by the Queensland Government.                                                                                                                              ($’000)                                                           ($’000)
                                                                                                                    Revenue                                                                                                  103,991                                                                   106,999
                                                                                                                    Expenses                                                                                                             84,944                                                         89,875
                                                                                                                    Net Result                                                                                                           19,047                                                         17,124


                                                                                                                    The 2016/17 net result of $17.1 million includes revenue received specifically to fund capital expenditure
                                                                                                                    (including grants and subsidies and developer contributions), Council’s share of Unitywater’s annual profit
                                                                                                                    as well as income and expenses recognised for investment property valuation changes, movement in the
                                                                                                                    provision for future landfill rehabilitation costs, and asset disposals. The removal of the $14 million of non-
                                                                                                                    operational items shows Council’s actual operating surplus to be $3.1 million.



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