2015-11-16 GC Agenda - Item 3, Attach 1 - Annual Report 2014-15

Statement of Cash Flows
The Statement of Cash Flows illustrates where Council has generated cash, and where these
funds have been expended. The detailed schedule in the financial statements is summarised
below (columns above the line represent cash flowing into the organisation, and columns below the
line represent cash payments made).

Figure 6 – 2014/15 Net Cash Flow Sources ($’000)

    30,000

    25,000

    20,000

    15,000

    10,000

     5,000

         -

    (5,000)

(10,000)

(15,000)
              Operating Activities   Investing Activities   Financing Activities   Net Movement in Cash


     Operating Activities depicts the net of income received from rates, interest, grants, etc. as well
      as payments made to suppliers and employees (net increase).
     Investing Activities relate to the acquisition and sale/disposal of long-term assets, generally in
      the form of roads, bridges, plant and equipment, etc. A negative outcome here represents a net
      investment in community infrastructure during the reporting period.
     Financing Activities shows the receipt and repayment of Council borrowings.
     Net Movement in Cash represents the physical movement of cash, with any accounting
      adjustments and accruals removed. The net movement in cash for the year of $12.6 million
      represents the net increase in cash on hand, with all significant outlays fully funded within the
      period.



Financial Ratios
Ratios are useful tools for getting a snap-shot of the financial status and trends of an organisation.
Ratios can also be useful in comparing Noosa Council to other Councils to gain an understanding
of relative financial strength. This analysis is undertaken annually by the Queensland Treasury
Corporation (QTC) in assessing the financial sustainability of Council. A financial sustainability
review was undertaken by QTC in April 2015 and Council was assessed as having a ‘sound’ rating
with a ‘positive’ outlook. The sound rating reflects Council having operating surpluses forecasted in
our financial model, strong capacity to take on more debt if required, high level of Council
controlled revenue and having good levels of cash resources to fund operations and capital works.

With the implementation of the Local Government Regulation 2012, a number of sustainability
ratios were mandated, including target ranges for each measure. Details of these ratios are shown
below, including actual results for the current reporting period, plus projections over the next 9
years.


Noosa Council Annual Report 2014/15                                                                       Page 33