Financial Performance Report – June 2023 · Financial Performance Report

GENERAL COMMITTEE MEETING                             17 JULY 2023


Category                          Comments
                                     • Target: > 3 months
                                     • Result: 14.1 months
                                      • Comment: Whilst interim
                                          annual cash cover result is
                                          well above target, this
                                          includes committed cash for
                                          capital programs, unspent
                                          grant monies paid in
                                          advance,      Waste     Levy
                                          subsidy prepayments and
                                          QRA advance payments for
                                          disaster projects
Asset Sustainability Ratio           •   Intent: Measures the extent
                                         to which assets are being
                                         replaced as their condition
                                         degrades to ensure service
                                         potential is maintained
                                     •   Target: 90% of depreciation
                                         budget spent on renewals
                                         annually
                                     •   Result: In line with budget
                                     •   Comment: The ratio will
                                         progressively increase each
                                         month as expenditure on
                                         renewals occurs as part of
                                         the capital works program.
Net Financial Liabilities Ratio      •   Intent: Outlines the level
                                         that net Council debt can be
                                         serviced      by    operating
                                         revenues. A ratio below zero
                                         implies that liabilities are
                                         less than cash (and other
                                         current assets) and there is
                                         adequate            borrowing
                                         capacity available if needed.
                                     •   Target: less than 60%
                                     •   Result: -33.6%
                                     •   Comment: Council has low
                                         debt levels and strong cash
                                         holdings which are reflected
                                         in the annual result.
Investment Return                    •   Intent: Ensure appropriate
                                         return on investment yield
                                         for cash at bank.
                                     •   Target: 0.25%           above
                                         current            Bloomberg
                                         commonwealth          10-year
                                         bond rate yield (3.40%)
                                     •   Result: 4.21%
                                     •   Comment: With bond rates
                                         rising, Council has invested
                                         surplus cash in higher
                                         yielding term deposits to
                                         maximise returns. Council’s
                                         investment returns remain
                                         above target.