2014-11-11 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                             11 NOVEMBER 2014


CORPORATE SERVICES DEPARTMENT REPORTS
Finance
6                        SEPTEMBER 2014 QUARTERLY BUDGET REVIEW
DOCUMENT INFORM AT ION




Author                              Manager Financial Services, Wayne Jensen
                                    Corporate Services Department

Index                               ECM / Subject / 7.06 – 2014/2015 Budget

Attachments                         1.    Proposed Budget Adjustments
                                    2.    Revised Budget Financial Statements


EXECUTIVE SUMMARY
The Local Government Act 2009 and Regulations 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 activities has been
undertaken using income and expenditure figures as at the end of September.

RECOMMENDATION
That Council note the report by the Manager Financial Services to the Planning &
Organisation Committee Meeting dated 11 November 2014 and approve the requested
changes to the budget for the 2014/2015 financial year, as outlined in the attached Budget
Financial Statements.


REPORT
Section 170 (3) of the Local Government Regulation allows Council, by resolution, to amend
the budget at any time before the end of the financial year. As a consequence, 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 also provides an opportunity to take account of any additional information that has
come to light since the adoption of the original budget to ensure the most accurate figures
are included.

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

Key considerations for any 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.




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