2022-07-18 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                   18 JULY 2022


7       FINANCIAL PERFORMANCE REPORT – JUNE 2022

Author               Financial Services Manager (Acting), Pauline Coles
                     Corporate Services Department

Index                ECM/ Subject / 22.09 – Monthly Financial Performance Report

Attachments          1.      Statement of Income and Expenditure (Profit & Loss and Capital)
                     2.      Statement of Financial Position
                     3.      Statement of Cash Flows
                     4.      Summary of Materials and Services Expenditure


EXECUTIVE SUMMARY
Financial performance for the 2021/22 year has resulted in an interim operating surplus of $8.9
million, capital revenue of $15.7 million and capital expenditure of $34.4 million.

Note that year-end financial adjustments are still in progress. A further report on final 2021/22
financial performance will be provided to Council in November 2022 following the finalisation and
independent audit of the financial statements in October 2022.

    FY (Interim) Financial Performance Summary
                                          Budget              Actual         Variance   Variance
                                                                                                        Status
                                             $m                  $m               $m          %
    Operating Revenue                      $109.5             $114.5             $4.9      4.5%     Above Budget
    Operating Expense                      $110.2             $105.5             $4.7      4.3%     Below Budget
    Operating Position                       -$0.6               $9.0            $9.6   -1523.0%
    Capital Revenue                          $21.9             $15.7            -$6.1     -28.1%    Below Budget
    Capital Expenditure*                     $48.1             $34.4            $13.6     28.4%     Below Budget
 * Reflects constructed assets and intangibles only (excludes contributed)


The $8.9 million interim operating surplus comprises both a $4.7 million general operating surplus
from activities that are funded through Council’s general rate, regulatory fees and sales of goods
and services; as well an additional $2.0 million in unspent levy and separate charge funds which
are constrained in reserve for future specified uses.

The general operating surplus position is also augmented by a number of incomplete grant-funded
projects, where the unspent grant funds will carry over into the 2021/22 financial year at Budget
Review 1 (BR1). This includes major funding programs such as the $1.4 million disaster recovery
funding. In addition, the Financial Assistance Grant (FAG) for the 2022/23 year was 75% prepaid
to Council in June 2022.

                                                                                          Actual
 Item
                                                                                             $m
 General business operating position (unconstrained funds)                                  $4.7
 Significant Grant Prepayments – FAG & Disaster (constrained
                                                                                            $2.3
 funds)
 Unspent levies operating position (constrained funds)                                      $2.0
 Total Council Operating Position                                                           $9.0

Financial statements including Statement of Income & Expenditure, Statement of Financial
Position (balance sheet), and Statement of Cash Flows are included as attachments for information
for Council.

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