Header Logo

Extraordinary Council Meeting

24 May 2016

 

Item No:†††††††† Item 15

Subject:†††††††† 3rd Quarter 2015-16 Budget Review Statement for the former Marrickville Council

File Ref:†††††††† 16/4718/56962.16 ††††††††

Prepared By: Caroline Bugg - Deputy Chief Financial Officer, Marrickville

Authorised By: Steve Kludass -†† Director Corporate Services, Marrickville

 

SUMMARY

 

Clause 203 of the Local Government (General) Regulation 2005 requires that a quarterly budget review be considered by Council, which shows revised estimates for income and expenditure for the year, indicates whether Councilís financial position is satisfactory and makes recommendations for remedial action where needed.

The Quarterly Budget Review Statements (QBRS) are prepared in accordance with the requirements of the Code of Accounting Practice and Financial Reporting. This report provides a comprehensive high level overview of Councilís financial position as at 31 March 2016 in accordance with the Code, together with supplementary information. The report recommends budget adjustments where required and advises Council on issues that are currently being managed.

 

 

 

RECOMMENDATION

 

THAT:

 

1.†††††† the report be received and noted; and

2.†††††† Council approves the variations identified as matters requiring budget adjustments and incorporate the changes into 2015/16 revised budget.

 

 

 

BACKGROUND

 

This report provides an overview of Councilís quarterly financial position as at 31 March 2016.

The mandatory QBRS report is prepared in accordance with the Code of Accounting Practice and Financial Reporting. It includes the following supplementary information:

 

Mandatory

Item

ATTACHMENT 1

Yes

Income & Expenses (External Reporting Format)

ATTACHMENT 2

Yes

Income & Expenses by Key Result Activity

ATTACHMENT 3

No

Income & Expenses Working Capital Result

ATTACHMENT 4

No

Income & Expenses KRA Working Capital Result

ATTACHMENT 5

Yes

Capital Budget

ATTACHMENT 6

Yes

Cash & Investments

ATTACHMENT 7

Yes

Key Performance Measures

ATTACHMENT 8

Yes

Contracts Listing

ATTACHMENT 9

Yes

Consultancy & Legal Expenses

ATTACHMENT 10

No

Capital Project Rephasing

 

FINANCIAL IMPLICATIONS

 

Responsible Accounting Officer Report

Clause 203 of the Local Government (General) Regulation 2005 requires that the Responsible Accounting Officer reports whether the revised financial position is satisfactory having regard to the original estimate of income and expenditure and if that position is unsatisfactory, to recommend remedial action.

Accordingly, the Responsible Accounting Officer (Director Corporate Services, Marrickville) reports that:

It is my opinion that the Quarterly Budget Review Statements for Marrickville Council for the quarter ended 31 March 2016 indicates that Councilís projected financial position at 30 June 2016 will be satisfactory.

 

 

OTHER STAFF COMMENTS

 

Review of the Operating Budget and Capital Budget

All Budget Program Managers are required to review the 2015/2016 Operating Budget and Capital Budget on an on-going basis. This process identifies any proposed variations to the adopted budget in order to ensure all adopted budgets and programs are achieved. Minor amendments with a net nil impact have been treated as an Administrative Budget Adjustment.†

Councilís consolidated working funds position is as follows:

Details

 

Amount

Working Capital as at 30 June 2015

 

$3,987,000

Original Budget:

∑††† Operating Budget Surplus

∑††† Capital Budget Deficit

 

††† $1,754,529

†† ($1,752,983)

 

 

Original Budget Surplus

 

$1,546

Forecast Original Working Capital Position at 30 June 2016

 

$3,988,546

 

 

 

Working Capital as at 30 June 2015

 

$3,987,000

Original Budget Surplus††††††††

$1,546

 

September Review Ė Budget Surplus/Deficit†††††††††††††

$0

 

December Review Ė Budget Surplus/Deficit††††††††††††††

$0

 

March Review Ė Budget Surplus/Deficit

$0

 

Revised Budget Surplus††††††††

 

†$1,546

Projected Working Capital Position at 30 June 2016

 

$3,988,546

Revised Projected Working Capital

 

$3,988,546

Benchmark Figure as at 30 June 2015

 

$1,557,000

 

Summary of Council approved budget adjustments

 

The following budget adjustments are proposed in response to Council decisions:

Summary

Meeting Type

Meeting Date

Item

Amount

Net Impact

Revenue, savings and adjustments identified in the expenditure review as at 31 March 2016.

Council *

17/5/2016

New

$124,205

$124,205 surplus

Marrickville Fit for The Future and amalgamation work.

Council

1/3/2016

1

$10,000

$10,000 deficit

Flood studies Johnson Creek and Alexandra Canal

IPES

01/03/2016

8

$91,000

Nil

Street tree planting allocation

 

Council*

17/5/2015

New*

$40,000

$40,000 deficit

Increases in S88 levy on disposal costs.

Council*

17/5/2015

New*

$74,205

$74,205 deficit

Regional bike route funded by RMS grants

IPES

5/4/2016

5

$287,000

Nil

Adjustment in interest revenue as a result of falling interest rates offset by a reduction to transfer to interest and s94 interest reserves.

Council*

17/5/2015

New*

$450,000

Nil

 

Total

 

 

 

 

 

$0

 

* Denotes being before Council for the first time (not yet resolved).

 

 

PUBLIC CONSULTATION

 

Nil.

 

 

ATTACHMENTS

1.View

Income & Expenses (External Reporting Format)

2.View

Income & Expenses by Key Result Activity

3.View

Income & Expenses Working Capital Result

4.View

Income & Expenses KRA Working Capital Result

5.View

Capital Budget

6.View

Cash & Investments

7.View

Key Performance Measures

8.View

Contracts Listing

9.View

Consultancy & Legal Expenses

10.View

Capital Project Rephasing