Finance Portfolio Report - 18 May 2016

Finance

Financial Report

The attached periodic financial statements are as at 30 April 2016.
The financial ratios are within reasonable parameters. However, the funded long term liabilities ratio computed at 59% is slightly under the 60% industry guide. This ratio is expected to improve once collections for the 4th quarter rates are received.
There is a $9.3 Million increase in trade receivables mainly on account of the 4th quarter rates levy. Rate notices were issued on the 19th April with discount date on the 24th May. Collection of the 4th quarter rates will further improve Council’s cash position and sustain the financial ratios.
With regard to the Comprehensive Income Statement:
94% of the total revenue budget has been achieved mainly due to recognition of the 4th quarter rates. Timely receipt of grants also contributed to the attainment of the revenue budget as at reporting date.
In terms of operating expenses, 78% of the total recurrent expenses budget has been expended. Costs incurred for employee benefits are within the expected budget limit.
It was noted that the materials and services budget for plant and fleet needs to be reviewed. Budget adjustments will be reflected in the 4th quarter budget revision and in the Statement of Estimated Financial Position for the year ending 30 June 2016.

Capex Report

Capital expenditure to date including commitments amounts to $47.4 Million equivalent to 84% of the $56.5 Million revised 2015/16 capex budget.