2016-05-16 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                     16 MAY 2016


3                        BUDGET REVIEW - MARCH QUARTER 2016
DOCUMENT INFORM AT ION




Author                              Manager Financial Services, Wayne Jensen
                                    Corporate Services Department

Index                               ECM/Subject/7.09 – 2015/2016 Budget

Attachments                         1.    Proposed Budget Adjustments – Operating
                                    2.    Proposed Budget Adjustments – Capital
                                    3.    Summary of Submissions
                                    4.    Revised Budget Financial Statements


EXECUTIVE SUMMARY
The Local Government Act 2009 and Local Government Regulation 2012 require Council to
undertake regular reviews of the adopted budget to ensure it remains reflective of planned
activities to be funded through the budget period. Consequently, a full review of all budgets has
been undertaken using income and expenditure figures as at the end of March 2016.

RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee
Meeting dated 16 May 2016 and approve the requested changes to the budget for the 2015/16
financial year, as outlined in the attached Budget Financial Statements.


REPORT
Section 170(3) of the Local Government Regulation 2012 allows Council, by resolution, to amend
the budget at any time before the end of the financial year. As such, formal reviews have been
scheduled to be undertaken following the close of each quarter (July to September; October to
December; January to March), using year-to-date figures as the basis for any revised forecasts.

This review provides an opportunity to take account of any additional information that has come
to light since the last review and to ensure the most accurate figures are included in the year-end
forecast. The March quarter review establishes a revised 30 June position, which then forms the
basis for development of the 2016/17 budget and the ensuing 10-year financial plan.

The Revised Budget Financial Statements clearly identify statement line items that have been
affected by the proposed adjustments.

Key considerations for Council’s budget adjustments include:

                       All increases in operating expenditure should be funded. If variances cannot be funded at
                         the branch or departmental level, then operational savings, determined after collaboration
                         with other departments, should be identified to ensure no degradation in the overall
                         operating position for Council.

                       Proposed reallocation of savings or additional revenue will be confirmed by the leadership
                         team based on business risk assessment.

                       The business capacity to deliver the adopted works program should be considered as part
                         of the evaluation process for all projects.



                                                                                                    Page 11 of 53