11 Financial Performance Report - May 2025

GENERAL COMMITTEE MEETING                        16 JUNE 2025


Category                     Comments
Cash Expense Cover              •   Intent: Indicates how long
                                    council can continue paying
                                    its day-to-day expenses
                                    from cash at bank without
                                    needing additional cash
                                    flows
                                • Target: > 3 months
                                • Result: 11.5 months
                                • Comment:           Council    is
                                    forecast to remain above
                                    target for the financial year.
                                    Business        as       usual
                                    expenditure through to 30
                                    June 2025 will continue to
                                    diminish Council’s cash
                                    holdings, albeit not below
                                    the target range of 3 – 6
                                    months.
                               Cash reserves also include
                               working capital requirements
                               and funding for capital
                               programs, unspent grant monies
                               paid in advance, Waste Levy
                               subsidy prepayments and QRA
                               advance payments for disaster
                               projects which are restricted for
                               specific purposes and inflate the
                               ratio.


Asset Sustainability Ratio      •   Intent: Measures the extent
                                    to which assets are being
                                    replaced as their condition
                                    degrades to ensure service
                                    potential is maintained
                                •   Target: 80% of depreciation
                                    budget spent on renewals
                                    annually
                                •   Result: 70.2% achieved,
                                    however below forecast
                                    result due to project delays
                                    and scheduling.
                                •   Comment: The ratio will
                                    progressively increase each
                                    month as expenditure on
                                    renewals occurs as part of
                                    the capital works program.
                                    For    transparency     QRA
                                    disaster projects have been
                                    excluded from the ratio
                                    calculations.        Ongoing
                                    delays in the delivery of the
                                    capital works program may
                                    impact the achievement of
                                    Council’s asset sustainability
                                    and renewal targets