Finance Portfolio Report - 20 July 2016

Financial Report

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

The financial ratios for cash, operating cash and working capital ratio are within the industry guide. The operating cash is subject to change based on the review of restricted cash as part of the preparation for the year-end financial audit. The decrease in the funded long term liabilities ratio from 59% in May to 58% as of 30 June is mainly on account of the end of financial year payments to suppliers.

With regard to the Comprehensive Income Statement:

Actual revenue for 2015-2016 amounting to $72.5 Million is higher than budget by $789,513 mainly on account of RTR capital grant pertaining to 2014-2015 that was received in the current financial year. 

Actual expenses incurred for the year amounts to $58.4 Million. This is $2.3 Million lower than the budgeted total operating expense of $60.7 Million. 

It is to be noted that the actual recurrent expense presented in the periodic report is not the final result as the year end accruals specifically for Materials and Services are still to be recognised and posted to the ledger. 

The Finance costs are slightly higher than budget figures due to the year- end recognition of landfill and quarry provisions.

Capex Report

Actual capital expenditure as of 30 June amounts to $43.5 Million, however there will be expenditure which is estimated at nearly $9 million accrued back into the 2015-2016 financial year, which will take the amount close to the $56.8 Million budget figure.  The commitments relating to the Kingaroy Water and Waste Water Treatment Plant are the largest influence on the difference between actual and budgeted expenditure.  All 2015-2016 capital projects will now be reviewed to assess the carry-overs into 2016-2017.

Rate Notices

The first rates notice for this financial year will be issued 23 August and will be a half yearly rate notice. As mentioned previously due to the transition to half yearly rates there will be two month period in which to pay this notice and still receive the 10 % discount which is 25 October.