Meeting papers

GENERAL COMMITTEE MEETING                                                           14 AUGUST 2023


RECOMMENDATION
That Council note the report by the Manager Financial Services (Acting) to the General Committee
Meeting dated 14 August 2023 and

A.     approve the proposed changes to the Budget and Schedule of Fees and Charges for the
2023/24 financial year as outlined in the Revised Budget Financial Statements provided in
Attachments 1 - 5 to the report.
B.     Pursuant to section 192 of the Local Government Regulation 2012, adopt for the 2023/24
financial year the updated Debt Policy, which is provided as Attachment 6 to the report.



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.

The key criteria for budget reviews include:
   1. Council must aim for compliance with its Financial Sustainability Policy.
   2. Any eligible capital or operating project must be underway with a commitment to deliver and
      complete the project.
   3. Capital submissions will be reviewed and authorised by the Executive Team before inclusion
      as a budget review submission, where the group will consider justification for the request,
      deliverability as well as organisational and community priorities before endorsing any capital
      works.
   4. All operating and capital submissions for additional spend, reallocation of savings or
      additional revenue will be confirmed by the Executive Team based on business risk
      assessment.

The revised statement of comprehensive income, included as Attachment 4, identifies the financial
statement line items that have been affected by the proposed budget adjustments. The budget
financial statements, included in Attachment 4, also identify the impact of the proposed budget
adjustments to Council’s financial sustainability indicators.

1. Operating Budget Adjustments and Carryovers

Funding Capacity for Operational Carryovers – Prior Year Position

To inform the determination of maximum threshold for operational carryovers, the following table
summarises the 2022/23 draft full year operating financial result. It identifies a $10.0 million surplus
in 2023/24. This surplus provides additional funding for emergent (general rate funded) budget
adjustments and is set as the target ceiling of funding available for carryover. This ensures that cash
reserves are not eroded in accordance with the Financial Sustainability Policy. Included in this
surplus are projects where grant funding was received last financial year and the project spans
multiple years.

It should be noted that the Australian Accounting Standards provide guidance on a case by case
basis on the accrual accounting recognition of grant revenue to determine whether grant monies are
recognised upon receipt or upon utilisation.




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