2022-08-15 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                   15 AUGUST 2022


2.    Any eligible capital or operating project must be underway with a commitment to deliver and
      complete the project.
3.    Capital submissions will be reviewed and authorised by the Executive Team before inclusion
      as a budget review submission, where the group will consider justification for the request,
      deliverability as well as organisational and community priorities before endorsing any capital
      works.
4.    All operating and capital submissions for additional spend, reallocation of savings or
      additional revenue will be confirmed by the Executive Team based on business risk
      assessment.
The revised statement of comprehensive income, included as Attachment 4, identifies the financial
statement line items that have been affected by the proposed budget adjustments. The budget
financial statements, included in Attachment 5, also identify the impact of the proposed budget
adjustments to Council’s financial sustainability indicators.

1.      Operating Budget Adjustments and Carryovers
Funding Capacity for Operational Carryovers – Prior Year Position

To inform the determination of maximum threshold for operational carryovers, the following table
summarises the 2021/22 draft full year operating financial result. It identifies a $9.0 million surplus
in 2021/22. This surplus provides additional funding for emergent (general rate funded) budget
adjustments and is set as the target ceiling of funding available for carryover. This ensures that
cash reserves are not eroded in accordance with the Financial Sustainability Policy. In particular,
it identifies $0.9 million in grant monies received last financial year that are still to be spent on
required programs and a further $3.8 million in unconstrained operating surplus.

                                                                                Actual
 Item
                                                                                   $m
 General business operating position (unconstrained funds)                        $3.8
 Significant Grant Prepayments – FAG & Disaster (constrained
                                                                                  $2.3
 funds)
 Other operating grants paid upfront and not fully spent                          $0.9
 Unspent levies operating position (constrained funds)                            $2.0
 Total Council Operating Position                                                 $9.0

It should be noted that the Australian Accounting Standards provide guidance on a case-by-case
basis on the accrual accounting recognition of grant revenue to determine whether grant monies
are recognised upon receipt or upon utilisation.

Proposed Budget Adjustment for Operational Carryovers

The proposed operational carryover budget adjustments will result in a $865k decrease to
Council’s operating position. The following table summarises the operational carryovers by type of
funding, with a detailed list contained in Attachment 1. It is noted that the majority of budget
submissions are grant or levy related programs and projects, whereas noted in the previous table
funds had already been received last year. There is no long-term cash flow implication for Council
as it is reflective of timing of spend revenue and expenditure between financial years.




                                                                                      Page 36 of 122