Financial Performance Report – June 2023

Good afternoon, Councillors. The Financial Performance Report for June 2023 shows the interim position at the year end. However, financial adjustments are still in progress, which may have a material impact on the final position. These adjustments include provisions, calculations, revenue recognition-- calculation and accrual adjustments, so there may be a movement-- there will be a movement when we do the final reports. A further final report will be provided in respect to the 2022-23 financial performance at the November 2023 meeting, once the independent audit has been completed and the financial statements are released. Firstly, I'd like to advise the table on page 190.197 should indicate that the operating expenses are below budget and not above so, budget. There's light on that page. Thank you, Brian. You. So, operating revenue has outperformed forecast by $3.6 million, which is predominantly driven by interest revenue of $1.2 million and grants of $1.2 million. Grants relate to the advance payment of the 2024 financial assistance grant. And in previous years, we have only received a 50% or 75% prepayment. Operating expenditure is $6.2 million under budget, with employee cost-making at $1 million, and materials and services are $5.3 million under budget. $2.5 million of that relates to restricted projects that are funded by special levies and separate charges, so they'll be held in reserve for future use and for specific programs. The remainder of underspend relates to civil operations, community facilities, holiday parks, sorry, they're over, sorry, and strategic planning, infrastructure, waste development assessment and environmental services are all underspend. Tourism and economic development expenditure remains on track. A summary of consultancy fees has also been included as requested at the May General Committee Meeting which shows expenditure by Council over time on consultancy. These summaries only include operational consultancy and that's been incurred on capital projects. It should be noted when reading these graphs that generally consultancy spend relates to specialised services and the quantum is dependent on the nature and size of projects that are being undertaken by Council. Overall council's interim operating position at June is $9.8 million above budget. Capital revenue is above budget $5.5 million due to some the further advance payments of QRA disaster projects funding. Council has expended 82% of its budget which equates to $46.6 million which is the largest capital program that we've delivered. Council's cash holdings at the end of June were $115 million with $15 million of these still invested in higher return term deposits. As mentioned previously, council's cash holdings are higher than we would normally expect at this time of year and this is predominantly due to the advance payment of the QRA disaster program which is held in reserve for these works once they're underway. Council is also holding $10 million in relation to the advance payment of four years worth of waste levy and $2 million as I mentioned for the prepayment of the 2024 financial assistance grant. In accordance with council's financial staff sustainability policy we also hold a minimum of three months cash cover which is about $25 million as well as cash reserves to fund the operations of Council through July until the first rate runs of 2024 and that's $7.3 million. Three million. Also providers $10 million in project funding for capital works that will be delivered in financial year 2024 as well as 9 million of projects that will be pushed out at Budget Review 2. In addition to this Council also holds funds for restricted purchases such as reserves disaster, waste management operations, developer contributions and unspent levies and this is in accordance with the council's management of restricted cash policy. Overall council's financial position ended the financial year in a strong position and it continues to meet its financial sustainability targets.