Attachments - City of Busselton

COUNCIL 24/04/2013
ITEM 9.2 ATTACHMENT
51
Finance Committee 04/04/2013
STATUTORY ENVIRONMENT
Regulation 33A of the Local Government (Financial Management) Regulations details the
requirement for a formal budget review to be completed annually.
RELEVANT PLANS AND POLICIES
NA.
FINANCIAL IMPLICATIONS
Any financial implications attributable to this review are addressed within the context of this report.
STRATEGIC COMMUNITY OBJECTIVES
This matter principally aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and more
specifically Community Objective 6.3 ‐ ‘An organisation that is managed effectively and achieves
positive outcomes for the community’. The achievement of the above is underpinned by the Council
strategy to ‘ensure the long term financial sustainability of Council through effective financial
management’.
RISK ASSESSMENT
Risk assessments have been previously completed in relation to a number of ‘higher level’ financial
matters, including timely and accurate financial reporting to enable the Council to make fully
informed financial decisions. The completion of an annual budget review is a treatment/ control that
assists in addressing this risk.
CONSULTATION
NA.
OFFICER COMMENT
As in previous years, the Annual Budget Review has been compiled based on the ‘Nature and Type’
reporting structure, to maintain consistency with monthly Financial Activity Statement reporting.
The review has concluded that the City’s financial performance to 28 February 2013 is satisfactory.
Furthermore, as no (net) material adverse variances have been identified as part of the review,
specific remedial actions are not required to be implemented. Notwithstanding this, the report has
identified a number of areas in which variances will be evident as at 30 June 2013. In numerous
instances, the variances relate to items that are fully off‐set and, as such, will not directly impact on
the overall budget performance as at financial year end. Whilst these matters are discussed within
the body of this report, the following Executive Summary provides a synopsis of those areas in which
it is projected that the City’s overall (net) budget performance at financial year end will be impacted.
Executive Summary
Operating Revenue
• Kookaburra Caravan Park fees and charges revenue is projected to exceed annual budget
estimates by up to $50K
• Building Services related fees and charges revenue is projected to fall short of annual budget
estimates by up to $55K