ANNUAL REPORT 2007-2008 CITY OF GREATER GEELONG

Standard Statements
Basis of preparation of Standard
Statements
Council is required to prepare and include audited
Standard Statements within its Annual Report. A Standard
Income Statement, a Standard Balance Sheet, a Standard
Cash Flow Statement, and a Standard Statement of
Capital Works is required, together with explanatory
notes.
These statements and supporting notes form a special
purpose financial report prepared to meet the
requirements of the Local Government Act 1989 and
Local Government (Finance and Reporting) Regulations
2004.
The statements were prepared on accounting bases that
are consistent with those used for the General Purpose
Financial Statements, but are also prepared to the same
level of detail and format as the regular quarterly reporting
to Council. The statements are consistent with the
reporting format in the 2007-2008 Strategic Resource
Plan and the 2007-2008 Budget.
The budget figures included in the Statements are those
adopted by Council on 26 June 2007.
The Standard Income Statement highlights the recurrent
result which is the result of the day to day transactions
within Council's control. Council actively manages the
incomes and expenditures that make up this result to
ensure that the municipality receives the best value
service possible within the incomes available. The nonrecurrent
incomes and expenditures are one off activities
or items outside of Council's operating activities that have
contributed both in cash and non cash terms.
The Standard Cashflow Statement and the Standard
Balance Sheet are consistent with both the format in the
annual accounts and the quarterly management report.
The Standard Statement of Capital Works is consistent
with the format reported in the 2007-2008 Budget.
The Standard Statements are not a substitute for the
General Purpose Financial Statements, which are
included in the Annual Report. They have not been
prepared in accordance with all Australian Accounting
Standards or other authoritative professional
pronouncements.
The Standard Statements compare Council’s financial
plan, expressed through its budget, with actual
performance. Council has provided an explanation of
material variances. These explanations including
contributory factors are provided with respect to each of
the main categories reported in the Standard Statements.
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