Financial Performance Report – June 2024

Sure I can. Afternoon Councillors. Financial Performance Report for June 2024 shows the future of position at year end, however financial adjustments are still in progress which might impact have material impacts on our final position for the year. A further report on final 23-24 financial performance will be provided to Council in November 2024 following the finalisation of our independent audit financial of statements the in October. In summary, our operating revenue for the year is $1.5 million below budget. And while we have been tracking above budget, there is a real reason for that. So our interest income is $2.1 million above budget. Sales of goods and services are $1.5 million of our budget. Part of the revenue is $600,000 above budget. However, that's been offset by lower than forecast Fees and Charges of $2.1 million. Major movement in the last month has been ground grant operating grant revenue, and the main driver behind that is the receipt of the financial assistance grant. Historically, Council receives that grant in advance, so we would normally receive the 2025 payment in June. However, that did not occur this year. So obviously that's quite a large amount to have received. There's also several other grants that, due to the timing of delivery of those programs, have pushed out into the next financial year. Our operating expenditure is $9 million on descent, with $2.2 million of this relating to our employee costs. Year's and services expenditure $6.7 million on descent, and this relates to levy programs of $1.5 million and grant funded programs of $1 million, and those will both be quarantined. Held in reserve for future use for those particular programs. Commercial operations, which is waste and all their parts, are $1.6 million on descent. And general operations are $2.5 million on descent. This month, we have actually provided you with a detailed breakdown of materials and services so that you can see the movements in those particular items for the whole year. Terms of economic development, we provide monthly update for that and that expenditure is showing a slightly behind budget of 56,900. There is a quarterly legal cost summary which is also included which shows legal and associated costs which is consultancies and legal counsels for 400,000 over budget. With the majority of this relating to development appeals. As requested at the previous General Committee Meeting a summary of expenditure and consultancy fees has been included which shows expenditure by Council over time. These numbers only include operations operational consultancies and not consultancies that relate to capital projects. It should be noted that general consultancy spend relates to specialised services and the quantum is dependent on the nature and the size of projects that councils undertake at any particular time. Thank overall council's interim operating position at June is a surplus of $7.8 million with the drivers of this position being additional interest revenue wasted in holiday park surpluses, employee cost savings due to vacancies and timing expenditure for grant and levy programs. As I mentioned there will be further accruals, commissions and accounting adjustments. Occur in the coming months with the finalisation of the financial statements later in the year. In terms of capital program excluding our disaster projects. Council has spent 67% of its all year capital program which equates to $30.6 million of its $45.9 million. And $40.6 million has been spent in relation to our QRA disaster-deducted projects. Council's cash-holding at the end of June was $105 million, with $30 million of these funds invested in higher yielding return deposits, and we also included the cash-side section for this quarter as well. Overall, Council has finished the financial year in a strong position, and obviously the financial results may change between now and the end of the month.