Extraordinary Council Meeting 24 May 2016

Item No:         Item 14

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

File Ref:         16/4718/57425.16         

Prepared By: David Murray – Manager Finance, Leichhardt  

Authorised By: Matthew Phillips – Director Corporate and Information Services, Leichhardt

SUMMARY

The former Leichhardt Council adopted the 2015-16 estimates of income and expenditure on 23 June 2015.  Council officers’ conduct monthly budget reviews and report any required changes to the adopted estimates quarterly to Council.  Accordingly, this report presents the budget review for the third quarter of the year ending 30 June 2016, for the former Leichhardt Council.

RECOMMENDATION

THAT:

1.       the report by the former Leichhardt Council responsible accounting officer be noted; and

2.       the budget report and changes as shown in Part A (ATTACHMENT 1) of this report be adopted.

BACKGROUND

A system of budgetary control has been established to monitor the actual income received and expenditure incurred each month, and to compare these against the adopted estimates. 

FINANCIAL IMPLICATIONS

Nil.

OTHER STAFF COMMENTS

In conjunction with the Integrated Planning and Reporting framework introduced by the Office of Local Government (OLG) and adopted by Leichhardt Council in 2010-11, the OLG has developed a set of minimum reporting requirements.  Collectively these reporting documents are known as the quarterly budget review statement (QBRS).  The QBRS is composed of, as a minimum, the following components:

·    Statement by the responsible accounting officer on council’s financial position at the end of the year based on the information in the QBRS

·    Budget Review Income and Expense Statement;

·    Budget Review of Capital Budget;

·    Budget Review of Cash and Investments position;

·    Budget Review Key Performance Indicators (refer separate report);

·    Budget Review Contracts and Other Expenses;

·    Statement of Consultancy and Legal Expenses.

Report by the Former Leichhardt Council Responsible Accounting Officer of Council

Section 203 (2) of the Local Government (General) Regulation 2005 requires a report by Council’s responsible accounting officer regarding Council’s financial position at the end of each quarter.

The former Leichhardt Council responsible accounting officer is of the opinion that the Quarterly Budget Review Statement for Leichhardt Council for the quarter ended 31 March 2016 indicates that Council’s projected financial position at 30 June 2016 will be satisfactory, having regard to the projected estimates of income and expenditure and the original budgeted income and expenditure.

Report on Carryovers

At the Leichhardt Council October Ordinary meeting the carryover expenditure from 2014-15 was approved.

The carryovers are being monitored throughout this financial year as part of the quarterly reviews – refer to ATTACHMENTS 1, 2 and 3 for details regarding the first 9 months of 2015-16.

PUBLIC CONSULTATION

Nil.

ATTACHMENTS

1.View	Part A - 3rd Quarter Budget Review
2.View	Part B - Program Financial Report
3.View	Part C - Councillor Major Issues - 3rd Quarter Report