2014-04-28 General Committee Meeting Agenda Pages 65-200

GENERAL COMMITTEE MEETING AGENDA                                                  28 APRIL 2014


     Other income – is generally on par with original forecasts. Some of the main elements
      here include payments from Unitywater for dividends and tax equivalents which will be
      paid/ recognised in the final quarter.
     Grants and subsidies – this item is down on original forecasts and may result in a variance
      as at 30 June due to a change in the administration of Federal Government Financial
      Assistance Grants.

2. Operating Expenses

     Employment benefits – currently tracking above budget, primarily relating to overtime and
      allowances. Much of this can be attributed to getting systems up and running, however, all
      areas will continue to be monitored as the endorsed organisation structure is applied with a
      view to offsetting any shortfall against savings in materials and services.
     Materials and services – actual costs are well below budget forecasts, partly as a result of
      the “distraction factor” as business areas have transitioned with de-amalgamation and
      partly as a result of operational efficiencies.
     Finance costs – currently under review, but no significant changes are proposed at this
      juncture.
     Depreciation – currently based on original budget estimates while the transfer of balances
      and subsequent revaluation of major asset classes are undertaken. As noted previously,
      the revaluation process may result in changes to asset values which would flow on to
      depreciation charges.
     Other expenses – will continue to be monitored.

3. Capital Works Program

     Expenditure on capital works though the month was generally in accordance with original
      estimates. The IT Major Projects are currently tracking above original estimates due to an
      expanded scope of works (including the library separation), however the total project is
      being closely monitored to ensure costs remain reasonable.

4. Investment Performance

     As at the end of March, 13% of the portfolio was held with the Commonwealth Bank of
      Australia, with the balance held by Queensland Treasury Corporation and invested in their
      capital guaranteed cash fund. The weighted average return for the month was 3.10%,
      which represents a margin of 0.50% above the industry benchmark, the UBS Bank Bill
      Index (2.60%).
     100% of the portfolio is held with A1+ ranked agencies and there were no breaches of the
      investment policy during the month.


Previous Council Consideration
Nil


Finance & Risk
All budget areas are under review as part of the 2014/15 budget development process, including
a review of the forecast to 30 June 2014. Where additional expenditure has been flagged,
managers and directors will be seeking to offset this against operational savings achieved
elsewhere within the budget.




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