Yarriambiack Shire Council Budget – 2010/2011

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7. Analysis of budgeted financial positionThis section analyses the movements in assets, liabilities and equity between 2009/10 and2010/11. It also considers a number of key performance indicators.7.1 Budgeted balance sheetRefForecastActual2010$’000Budget2011$’000Variance$’000Current assets 7.1.1Cash and cash equivalents 6,378 5,311 (1,067)Trade and other receivables 687 713 26Financial assets 270 378 108Other assets 415 447 32Total current assets 7,750 6,849 (901)Non-current assets 7.1.1Trade and other receivables 252 178 (74)Investments – Library 275 275 0Property, infrastructure, plant andequipment 112,066 113,835 1,769Total non-current assets 112,593 114,288 1,695Total assets 120,343 121,137 764Current liabilities 7.1.2Trade and other payables 1,197 1,231 34Interest-bearing loans and borrowings 151 100 (51)Provisions 1,648 1,724 76Total current liabilities 2,996 3,055 59Non-current liabilities 7.1.2Interest-bearing loans and borrowings 205 105 (100)Provisions 295 297 2Total non-current liabilities 500 402 (98)Total liabilities 3,496 3,457 40Net assets 7.1.3 116,847 117,680 833Equity 7.1.4Accumulated surplus 66,229 66,262 33Asset revaluation reserve 50,618 51,418 800Total equity 116,847 117,680 833Source: Appendix A7.1.1 Current Assets ($0.90 million decrease) and Non-Current Assets ($1.70 million increase)Cash and cash equivalents include cash and investments such as cash held in the bank and in pettycash and the value of investments in deposits or other highly liquid investments with short termmaturities of three months or less. These balances are projected to decrease by $1.07 million duringthe year mainly to fund the capital works program during the year.Trade and other receivables are monies owed to Council by ratepayers and others. Short termdebtors are not expected to change significantly in the budget. Long term debtors (non current)relating to loans to community organisations will reduce by $74,000 in accordance with agreedrepayment terms.Yarriambiack Shire Council Budget – 2010/2011 32
Other assets includes items such as prepayments for expenses that Council has paid in advance ofservice delivery, inventories or stocks held for sale or consumption in Council’s services and otherrevenues due to be received in the next 12 months.Property, infrastructure, plant and equipment is the largest component of Council’s worth andrepresents the value of all the land, buildings, roads, vehicles, equipment, etc which has been built upby the Council over many years. The increase in this balance is attributable to the net result of thecapital works program ($5.82 million of new assets), depreciation of assets ($4.70 million) and thesale through sale of property, plant and equipment.7.1.2 Current Liabilities ($59,000 increase) and Non Current Liabilities ($98,000 decrease)Trade and other payables are those to whom Council owes money as at 30 June. These liabilities arebudgeted to remain consistent with 2009/10 levels.Provisions include accrued long service leave, annual leave and rostered days off owing toemployees. These employee entitlements are only expected to increase marginally due to moreactive management of entitlements despite factoring in an increase for Collective Agreementoutcomes.Interest-bearing loans and borrowings are borrowings of Council. The Council is budgeting to repayloan principal of $151,000 over the year.7.1.3 Net Assets ($0.83 million increase)This term is used to describe the difference between the value of total assets and the value of totalliabilities. It represents the net worth of Council as at 30 June.The increase in net assets of $0.83 million results directly from the operating surplus.7.1.4 Equity ($0.83 million increase)Total equity always equals net assets and is made up of the following components:• Asset revaluation reserve which represents the difference between the previously recorded valueof assets and their current valuations• Other reserves that are funds that Council wishes to separately identify as being set aside tomeet a specific purpose in the future and to which there is no existing liability. These amountsare transferred from the Accumulated Surplus of the Council to be separately disclosed• Accumulated surplus which is the value of all net assets less Reserves that have accumulatedover time.7.2 Key assumptionsIn preparing the Budgeted Balance Sheet for the year ending 30 June 2011 it was necessary to makea number of assumptions about assets, liabilities and equity balances. The key assumptions are asfollows:• A total of 95% of total rates and charges raised will be collected in the 2010/11 year (2009/10:94% forecast actual)• Trade creditors to be based on total capital and operating expenditure less written down value ofassets sold, depreciation and employee costs. Payment cycle is 30 days• Other debtors and creditors to remain consistent with 2009/10 levels• Employee entitlements to be increased by the Enterprise Bargaining Agreement outcome offsetby the impact of more active management of leave entitlements of staff• Repayment of loan principal to be $151,000• Total capital expenditure to be $6.12 millionYarriambiack Shire Council Budget – 2010/2011 33
Page 8: Budget processesThis section lists
Page 12 and 13: Key strategic activitiesStrategic A
Page 14 and 15: ActivitiesActivityInformation Servi
Page 16: ActivityWelfareDescriptionThis serv
Page 21 and 22: eing a budgeted Income Statement, B
Page 24 and 25: 4.3 Operating expenditureExpenditur
Page 26 and 27: 5. Analysis of Budgeted Cash Positi
Page 28 and 29: 6. Analysis of Capital BudgetThis s
Page 30 and 31: 6.2 Funding sourcesSources of Fundi
Page 34 and 35: 8. Strategic Resource Plan and Key
Page 36 and 37: 8.3 Key financial indicatorsThe fol
Page 38 and 39: 9. Rating StrategyThis section cons
Page 40 and 41: 9.4 General revaluation of properti
Page 42 and 43: The following table summarises Coun
Page 44 and 45: Appendix ABudgeted standard stateme
Page 46 and 47: Appendix ABudgeted Standard Balance
Page 48 and 49: Appendix ABudgeted Standard Capital
Page 50 and 51: Appendix BStatutory disclosuresThis
Page 52 and 53: Appendix B2.6 The basis of valuatio
Page 54 and 55: Appendix BThe characteristics of pl
Page 56 and 57: Appendix CCapital Works ProgramFor
Page 58 and 59: Appendix C3. SummaryExternally Inte
Page 60 and 61: Appendix DKey Strategic ActivitiesF
Page 62 and 63: COMMUNITY SERVICESHACC 2009/10 2010
Page 64 and 65: Other FeesTransfer Inspection FeeTo
Page 66 and 67: ENGINEERINGSale Yard Levies 2009/10
Page 68 and 69: ADMINISTRATIONFunction Room (Warrac
Page 70: Report & Consent 2009/10 2010/11Pla

Yarriambiack Shire Council Budget – 2010/2011

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