ANNUAL PERFORMANCE REPORT INCLUDING Q4 OPERATIONAL PLAN 2023-24 PROGRESS REPORT · Attachment 2 - Q4 Operational Plan Progress Report-KPI Graphs Final

OUR FINANCES

OUR FINANCES Measure Working capital ratio > 2 (times) Purpose Measures Council's ongoing solvency 8 6 4 0 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June mms 2023/24 —— 2022/23 ———— 2021/22 Comment The working capital ratio is tracking above Council's target of 2 which indicates Council has strong liquidity so that we are able to meet financial obligations as they fall due. The decrease in ratio in September relates to the finalisation of the 2023 annual financial statements, where $24.6 million in contract liabilities where recognised in relation to the advance payment of capital grant programs, specifically the Queensland Reconstruction Authorities funding of disaster restoration projects resulting from the February 2022 flood event. As a result currently liabilities have increased considerably compared to current assets. As these capital projects are delivered, current liabilities will reduce resulting in an increase in Council's working capital ratio.