SLIDE 1
Council Audit Briefing 13 May 2016 to 30 June 2017 What will this - - PowerPoint PPT Presentation
Council Audit Briefing 13 May 2016 to 30 June 2017 What will this - - PowerPoint PPT Presentation
Council Audit Briefing 13 May 2016 to 30 June 2017 What will this presentation cover? Significant matters for 2017 Level of Cash & Investments Operating Result Performance Ratios Sources of Income General Observations Application of
SLIDE 2
SLIDE 3
▪
Net operating surplus $5,057,000
▪
The operating result from ordinary activities before capital amounts ($4,882,000) deficit
▪
User Charges & Fees revenue included $2.6M of RMS roadwork
▪
Operating & Capital grants totalled $26.7M
▪
Water & Sewer infrastructure were revalued with a (P&L) decrement of $6.9M
Significant matters for 2017
SLIDE 4
2017 Before Capital 7,432 After Capital 13,361
- 2,000
4,000 6,000 8,000 10,000 12,000 14,000 16,000 $’000
Consolidated Operating Result
SLIDE 5
Water Fund Pre Capital Water Fund After Capital Sewer Fund Pre Capital Sewer Fund After Capital General Fund Pre Capital General Fund After Capital 2017 306 306
- 6,402
- 6,402
1,214 11,153
- 8,000
- 6,000
- 4,000
- 2,000
- 2,000
4,000 6,000 8,000 10,000 12,000 14,000 $’000
Operating Result – Water, Sewer & General Fund
SLIDE 6
Rates Annual Charges G & C - Operating G & C - Capital User Charges Interest Revenue Other 2017 6,927 5,948 16,787 9,939 6,576 1,350 1,108
- 2,000
4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 $’000
Operating Revenue – by source
Total operating revenue $48,635,000
SLIDE 7
Employees Materials Depreciation Borrowing Costs Other 2017 12,093 9,959 9,322 185 12,019
- 2,000
4,000 6,000 8,000 10,000 12,000 14,000 $’000
Operating Expenses – by type
Operating expenses $43,578,000
Revaluation decrement $6.9M Stronger Community Grants Paid $1.1M
SLIDE 8
2017 Unrestricted 5,483 External 14,154 Internal 21,744 10,000 20,000 30,000 40,000 50,000 $’000 Cash and investments total $41,381,000
Cash and Investments
SLIDE 9
Operating Performance Ratio
% The ratio of 4.71 % exceeds the OLG benchmark of 0% - helped by the amalgamation operating grants and early payment of 2018 FAG instalments
Purpose of this ratio: To assess whether operating expenditure is contained within operating revenue. OLG Benchmark: 0%
2017 4.71
2 4 6
OLG Benchmark > 0%
SLIDE 10
2017 OSOR 44.77
- 20.00
40.00 60.00 80.00 100.00 %
Own Source Operating Revenue Ratio
- This ratio measures Council’s financial flexibility by determining the degree of
reliance on external funding sources such as operating grants and contributions.
- Increases in the level of grants & contributions will serve to decrease this ratio.
OLG Benchmark >60%
SLIDE 11
2017 UCR 8.46
- 3.00
6.00 9.00 12.00
Unrestricted Current Ratio
- Council's Unrestricted Current Ratio is 8.46 exceeding the industry benchmark of 1.50x
by a large margin and indicating sufficient liquidity that council is comfortably able to satisfy its debts as and when they fall due.
OLG Benchmark > 1.5 times
SLIDE 12
2017 DSCR 19.62
- 5.00
10.00 15.00 20.00 25.00
Debt Service Cover Ratio
This ratio measures the availability of operating cash to service debt including interest, principal and lease payments. The higher the number, the greater the ability to service debt.
OLG Benchmark > 2.0 times
SLIDE 13
2017 Term Loans 3,459 1,000 2,000 3,000 4,000 $’000
External Debt
SLIDE 14
Audit findings
▪
Unqualified audit reports issued on General & Special Purpose Financial Statements.
▪
All reporting and disclosure obligations satisfied
▪
Management letters issued and acted upon appropriately
▪
We extend our thanks to Council’s staff for their preparation and assistance.
SLIDE 15