Draft Annual Report Year ended 30 June 2015
Operating result Operational result on budget $700,000 better than forecast We have spent what we said we would.
Capital Expenditure Capital expenditure reduced to match funding Cash flow $5.9m better off than budget Repaid debt instead of borrowing
Year end result - funding Budget Actual Variance $(000) $(000) $(000) Operating income 102,374 99,404 (2,970) Operating expenditure 112,902 109,951 2,951 Operating deficit (10,528) (10,547) (19) Add back depreciation 27,404 26,504 900 Funding from operations 16,876 15,957 (919) Plus Capital revenue 9,488 3,046 (6,442) Funding available for capital 26,364 19,003 (7,361) Capital expenditure 30,595 17,253 13,342 Funding available (borrowed) (4,231) 1,750 5,981 Note: Does not include non-cash asset write downs and revaluations
Journey of understanding our finances • Late 2013 introduced new financial framework • 2014 provided clarity of: – Self funding reserves – Airport debt – Under funding of services • 2015 – continue to clarify Council finances focusing on accounting treatment of fixed assets
Non-cash adjustments to fixed assets • Asset management practices are being reviewed post the merger of asset management systems • High emphasis from Audit following change in accounting standards – Expenditure waiting to be capitalised – Economic assessment of existing assets • Adjustments have a non cash impact on our annual report result.
Example of some non cash items Action Amount $(000) Year Waste water infrastructure in the forest (economic life) 6,401 2015 Rotoiti/ Rotoma Sewerage costs prior to Environment Court 3,089 2012 Lakefront designs 295 2008 Duplicate assets 1,710 2012 Fairy Springs 4 lanes - water assets replaced during road upgrade 272 2015 Roading - Victoria Street Arterial 712 2015
Financial Statements – restated Budget Actual Variance $(000) $(000) $(000) Operating income 102,374 99,404 (2,970) Capital revenue 9,488 3,046 (6,442) Total Revenue 111,862 102,450 (9,412) Operating expenditure 112,902 109,951 2,951 Write down of assets - 9,216 (9,216) Total Expenditure 112,902 119,167 (6,265) Net Surplus (deficit) (1,040) (16,717) (15,677) Revaluation and other gains - 17,930 17,930 Total Comprehensive Income (1,040) 1,213 2,253 Add back non cash items 27,404 17,790 (9,614) Funding available for capital 26,364 19,003 (7,361) Capital expenditure 30,595 17,253 13,342 Funding available (borrowed) (4,231) 1,750 5,981
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