Cr Ros Heit - Finance Portfolio Report - 13 June 2018

Financial Reports to 31 May 2018 including 4th Quarter Budget Review

The financial reports presented to the meeting today have a twofold purpose.  Firstly the year to date actual result is at 31 May 2018 and secondly a fourth quarter review of the current budget was undertaken by the Finance Department.  

The reports presented have therefore been prepared as required by the Local Government Regulation 2012 showing the 10 year long term financial forecast for the required statements along with the relevant measures of financial sustainability, as required for a budget review. 

The actual result is generally performing to the revised budget. The relevant measures of financial sustainability are also within the tolerances for those ratios.

The profile of the estimated result for the fourth quarter is now more in line with the original budget, mainly for General Operations.  The table of results has been included in the agenda.  Of interest; although the result is similar to the original budget the following additional expenditure items have been included:

• An extra $400,000 was included for road and drainage maintenance bringing the total spend to $6.19m,
• An extra $512,000 depreciation expense was included in General operations,
• Extra depreciation expense was also included in the other expenditure programs as detailed in the supporting report.

This depreciation impact is largely due to the capitalisation of new or upgraded assets during this financial year.  Those assets are a result of prior year projects.  An example of the type of projects are also shown in the report supporting this budget review, and highlights the need to present business cases for the acquisition of  assets which are new or upgrade by nature.

This fourth quarter result will be used as the estimated financial position which will be included as part of the 2018/2019 financial year budget.

Capital Expenditure

The capital expenditure report which has been included in the agenda for Council’s information shows that 62.2% of the budget of $35.774m has been utilised when committed costs are included.  As mentioned last month several projects in the Property, Waste Water Programs and the W4Q projects for round two, will be either held over to be completed in the 2019 Financial Year or completed by the project milestone date in the case of W4Q projects.  Those other projects include the Nanango Office Refurbishment in Property and the Network Renewal Program in Waste Water.  The network renewal program for 2017/18 when combined with the program for 2018/19 has definite procurement benefits.

Budget for the financial year ending 30 June 2019

With the final Council workshops held during the month along with the Mayor’s presentation of the budget last Thursday 7 June 2018, the focus of the finance team is now on the compilation of the budget document and the associated budget resolutions in preparation for the formal budget meeting to be held on Monday 25 June 2018.

Works for Queensland

At reporting date 42.1% of the round 2 allocation of $4.385m had been spent.  Along with the road maintenance report that expenditure is better detailed in the reports included for Councillors information.