Ordinary Meeting of Council 24 February 2010

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5.2 FINANCIAL MANAGEMENT REPORT - JANUARY 2010

(All Wards) (Financial Services)

KEY ISSUES

• This report provides Council with the suite of financial management reports in order for Council to monitor the financial performance and position of the City.

• A summary page has been developed that includes high level financial information, commentary and graphical representation from the Income Statements, Balance Sheet, Capital Payments, Investments and Debtors.

• A Debtors Schedule has been included that lists the top 10 non-rate debtors (in value). For privacy purposes the names of the debtors are not included, however the report provides insight into the management of the aged debtors.

It is recommended that Council receive the monthly financial management reports for the period ended 31 January 2010.

BACKGROUND

Monthly reporting of financial management reports is standard practice for most organisations. These reports facilitate analysis of the performance of the organisation against the target (budget). Section 6.4 of the Local Government Act requires an Annual financial report to be prepared as well as such other financial reports as prescribed. In 2005, the Local Government (Financial Management) Regulations 1996 (34) was amended to require a financial activity statement report to be prepared each month.

The financial management report for January 2010 has been included as attachments.

REPORT

The January 2010 financial management reports provide insight up to the Seventh month of the new financial year. As the information contained in the Statement of Financial Activity is repeated in the Income Statement and Balance Sheet, the analysis of the information is included below.

1. Income Statement

The actual revenue from ordinary activities for the year to date (ytd) January 2010 is $87.6m which is greater than budget by $824k (ytd). Expenditure from ordinary activities for January 2010 is $49.7m this is $4.5m lower than budget of $54.2m.

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The net result is favourable in comparison to the budget, currently $41.6m (profit) actual in comparison to $38.8m budget.

2. Balance Sheet

The current assets of $53.2m is significantly greater than at year end 08/09 due to rates being raised (receivables) and received (cash).

Total current receivables are at $16.3m with the main portion being the rates levied and received which significantly affects the net current assets of $39.7m compared to $2.6m at year end 08/09.

3. Cash Flows

This report indicates where the council has collected and raised cash. Net cash of $23.3m is shown on the bottom line of the cash flow statement.

ATTACHMENTS

Financial Management Summary

Income Statement Performance Report

Income Statement by Activities - Program View

Income Statement by Objects - Nature and Type View

Balance Sheet Position

Balance Sheet

Statement of Changes in Equity

Capital Report

Investment Report

Rate Debtors Report

Sundry Debtors Report

Other Statutory Reports

Statement of Cash Flows

Rate Setting Statement

Statement of Financial Activity

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STRATEGIC IMPLICATIONS

Monitoring performance by comparison of budget and actual is an essential management tool to ensure financial performance within acceptable pre determined limits.

STATUTORY ENVIRONMENT

Action in accordance with section 6.4 of the Local Government Act and clause 34 of the Local Government (Financial Management) Regulations.

FINANCIAL IMPLICATIONS

Compares financial activity with budget as detailed in this report.

RECOMMENDATION

That the Council resolve to:

1) Receive the monthly financial statements and report for the period ended 31 January 2010.

CARRIED

Ordinary Meeting of Council 24 February 2010

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