Cr Ros Heit - Finance Portfolio Report - 14 December 2016

Financial Report

The attached periodic financial statements are as at 30 November 2016.

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

Trade and other receivables decreased from $9.2 Million in October to $ 7.6 Million as of the end of November mainly on account of additional rates collection amounting to $1.6 Million. These collections were received after sending out the rates reminder notices in November.

With regard to the Comprehensive Income Statement:

50% of the total budgeted revenue has been attained due to the six-monthly rating.  The budget for interest income and other income are being reviewed as part of the 2nd quarter budget revision.  Sales revenue is lower than budget due to timing difference in revenue recognition. The second quarterly payment from the Financial Assistance Grant (FAGs) amounting to $1.7 Million was received in November. 

58% of the budgeted Capital Revenue has been achieved due to the grant received for the upgrade of the Kingaroy Waste Water Treatment Plant. Year to date capital grant received for this project amounts to $3.7 Million; $3.0 Million was received in September and $700,000 in November.   The Roads to Recovery (RTR) quarterly payment amounting to $726,778 was also received in November. 

In terms of expenditures, employee benefits; materials and services; finance costs and depreciation are within budget limits.

Capex Report

Actual year-to-date capital expenditure amounts to $8,646,430 which is equivalent to 26% of the 2016-17 capex budget. The total actual and year-to-date commitments for capital expenditure amount to $16,010,815 or 50% of the total capex budget for the year. 

2nd Quarter Opex and Capex Budget Review

The submission of the budget managers’ proposed revisions for the 2nd quarter opex review closed on 30 November. The salaries and wages budget review is currently being undertaken for finalisation.

The 2nd quarter capex budget review has been distributed to the respective budget managers and the deadline for the submission to Finance of the proposed revisions is on 20 December.

The proposed opex and capex budget revisions will be presented for Council’s consideration in the January 2017 general meeting.