09 Financial Performance Report - Mar 2025

GENERAL COMMITTEE MEETING                             14 APRIL 2025


Category                     Comments
Cash Expense Cover              •   Intent: Indicates      how    long
                                    council can continue paying its
                                    day-to-day expenses from cash
                                    at    bank      without    needing
                                    additional cash flows
                                • Target: > 3 months
                                • Result: 12.7 months
                                 • Comment: Council is forecast
                                     to remain above target for the
                                     financial year. Business as
                                     usual expenditure through to 30
                                     June 2025 will continue to
                                     diminish      Council’s      cash
                                     holdings, albeit not below the
                                     target range of 3 – 6 months.
                               Cash balances are at the peak of the
                               cycle with the second rates issue
                               occurring in January 2025. Cash
                               reserves also include working capital
                               requirements and funding for capital
                               programs, unspent grant monies
                               paid in advance, Waste Levy subsidy
                               prepayments and QRA advance
                               payments for disaster projects which
                               are restricted for specific purposes
                               and inflate the ratio.




Asset Sustainability Ratio      •   Intent: Measures the extent to
                                    which assets are being replaced
                                    as their condition degrades to
                                    ensure service potential is
                                    maintained
                                •   Target: 80% of depreciation
                                    budget spent on renewals
                                    annually
                                •   Result: 58.2%            achieved,
                                    however below forecast result
                                    due to project delays and
                                    scheduling.
                                •   Comment: The          ratio     will
                                    progressively increases each
                                    month as expenditure on
                                    renewals occurs as part of the
                                    capital works program. For
                                    transparency      QRA      disaster
                                    projects have been excluded
                                    from            the            ratio
                                    calculations.     Should capital
                                    works continue to fall below
                                    forecast for the remainder of the
                                    year this may impact the
                                    achievement of Council’s asset
                                    sustainability     and      renewal
                                    targets