Annual Report 2018-19

    • Net movement in cash represents the total physical movement of cash, with any accounting adjustments and
      accruals removed. The net negative movement in cash for the year of $8.2 million represents a net decrease in
      cash on hand.


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 periodically by the Queensland Treasury Corporation (QTC) in assessing the financial sustainability of
Council.

A number of sustainability ratios are mandated under the Local Government Regulation 2012, including target ranges
for each measure. Details of these ratios are shown in Figure 10, including actual results for the current reporting period
plus projections over the next 9 years.

Figure 10 - Financial Ratios 2018/19 (Actual) to 2027/28 (Forecast)

 Period Ended 30 June                  2019         2020      2021     2022     2023   2024    2025      2026      2027        2028
 Sustainability Ratios
 Operating Surplus Ratio
 Operating Position                   11.6%        0.0%      0.1%      0.0%     0.1%   0.1%    0.1%      0.1%      0.1%       0.1%
 Local Govt Act upper indicator        10%          10%       10%       10%     10%    10%      10%       10%      10%         10%
 Net Financial Liabilities Ratio
 Net Financial Liabilities Ratio    (13.8)%       (5.7)%    (5.3)%    (3.3)%   (3.6)% (6.4)% (10.6)%   (13.8)% (18.8)% (22.0)%
 Local Govt Act upper indicator        60%          60%       60%       60%     60%    60%      60%       60%      60%         60%
 Asset Sustainability Ratio
 Asset Sustainability Ratio         132.3%       110.3% 100.6%        100.3% 103.7% 98.9%     90.4%     89.3%     82.7%       83.0%
 Local Govt Act minimum                90%          90%       90%       90%     90%    90%      90%       90%      90%         90%
 indicator
 Colour Scale:                       Within   Moderate Outside
                                     range              range
										


Operating surplus ratio
This ratio measures the operating surplus achieved for the period and represents the operating surplus / (deficit) as a
percentage of operating revenue. A surplus will be represented by a positive result.

Council’s should be aiming to achieve as a minimum a balanced operating position to ensure that revenues received are
sufficient to fund operations and capital replacement works. The 2018/19 operating surplus ratio of 11.6% is a reflection
of strong revenue growth along with good management of our expenditure, partial prepayment of the 2019/20 financial
assistance grant early in June 2019, revaluation of non-current asset impacts on depreciation expense as well as some
unspent levy funds that are required to be held for future use. The forecast shows Council’s ongoing commitment to
strong financial management.




Noosa Council | 2018/2019 Annual Report                                                                           Page 48