27 February 2007 - Ordinary Meeting of Council (pdf. 14MB)

Ordinary Meeting of Council - 27 February 2007 12 / 2
Item 12
S04708
16 January 2007
PURPOSE OF REPORT
To present to Council the quarterly financial review for the 2nd quarter ended 31 December 2006.
BACKGROUND
This is a statutory requirement under the Local Government Financial Management Regulation
1999, Part 2 Clause 7 and it is an essential aspect of Council’s financial management.
At the Council meeting held on 13 June 2006, Council adopted the 2006-2010 Management Plan,
which incorporated the annual budget for Council for 2006/2007. The resolution adopting this
Management Plan was under Minute 210.
COMMENTS
General Budgetary Position
This review analyses the financial performance of the Council for the 2nd quarter of 2006/2007
comparing actual expenditure and revenue for the quarter against budget. Council’s budgetary
position for the quarter ended 31 December is well within expectations. The organisation’s year to
date net expenditure shows a surplus of $8,026,065 compared to a budget surplus of $4,989,986, a
positive variance of $3,036,079.
It should be noted, however, that Domestic Waste is $241,150 under budget, Sec 94 Contributions
are $5,666,458 over budget and Interest earnings on Sec 94 Contributions are also over budget by
$313,797. As these amounts are externally restricted, it is appropriate that they are removed from
the general budgetary surplus. This results in a positive cash variance of $1,804,660.
The financial position of the Council is satisfactory, having regard to the original estimate of
income and expenditure.
This total variance is broken down as follows:
Budget YTD Actual YTD Variance
Expenditure $37,469,120 $36,111,217 $1,357,903
Income $42,459,106 $49,127,269 $6,668,163
Sub Total $4,989,986 $13,016,051 $8,026,065
Less External Restrictions ($6,221,405)
Net Result $1,804,660
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