Cr Ros Heit - Finance Portfolio Report - 19 July 2017

Financial Report

The attached financial statements are as at the 30th of June 2017.

The financial ratios for cash, operating cash, working capital and funded long term liabilities are all within the industry guide. 

At financial year end, Council generated a 6% operating surplus ratio; an asset sustainability ratio of 146% and a net financial liabilities ratio of 26%.  All of the three (3) ratios are within the local government benchmark.

The proposed financial ratios that were discussed with Council at the recent Portfolio meeting will be included in the July Financial Report for presentation at the August General Meeting.

In terms of the Statement of Financial Position or the balance sheet, cash and cash equivalents are higher as compared to budget mainly due to the $3.5 Million received by Council in the early part of June that represents the advanced payment for two (2) quarters of the 2017-2018 Financial Assistance Grant (FAG). 

With regard to the Comprehensive Income Statement

The actual total operating revenue for FY 2016-2017 amounts to $67,441,388 ($67.4 Million) while the actual total operating expenses amount to $63,363,237($63.3 Million).

Operating Surplus at 30th June amounts to $4,078,151 ($4.1 Million); this is $3.1 Million higher than budget mainly due to the two (2) quarters advanced payment received for the Financial Assistance Grant, as earlier mentioned.

The estimated operating result as adopted in the original 2015/2016 budget was $789,691 while the actual operating result at the time of preparing the report was $556,335.  It should be noted here that all end of year journals are yet to be completed and the financial statements are yet to be audited.

A more complete analysis will be provided to the Audit Committee once the final statements have been prepared.

Capex Report

Actual capital expenditure as at the 30th of June amounts to $21,206,496 ($21.2 Million) which is equivalent to 60% of the 2016-2017 revised capex budget.  The total actual and year-to-date commitments for capital expenditure amount $25,894,597 ($25.9 Million) or 74 % of the total capital expenditure budget for the year. 

Works For Queensland Project

As at 30th of June, the actual expenditure amounts to $1,208,413 ($1.2 Million) and commitments amount to $ 564,146 or a total of $1,772,559 ($1.8 Million).  The year- to- date actual expenditure and commitments represent 42% of the $4,260,000 ($4.26 Million) grant.