Council Minutes - Town of Cambridge

COUNCIL MINUTES
TUESDAY 28 AUGUST 2012
CR12.134 YEAR END REVIEW FOR FINANCIAL YEAR 2011/2012
PURPOSE:
To report on the year end actual results as against revised budget for the 2011/2012
financial year consistent with good governance principles and the requirements of the Local
Government Act.
BACKGROUND:
The pre-audit financial statements for the year ending 30 June 2012 have been produced
and a report centred around the rate setting statement produced, highlighting the major
variations.
Whilst the financial statements are nearing finalisation, depreciation adjustments for
infrastructure assets are yet to be booked, some expenditures are to be reclassified from
operating to capital and a small number of infrastructure assets need to be written off.
However, these adjustments will not affect the surplus position which is currently $180K.
DETAILS:
The following commentary should be read in conjunction with the comparative Rate Setting
Statement and End of Financial Year Report contained in attachment one.
Operations
The result from operations is $2 million compared to a revised budget of $2.8 million, giving
a variance of $728k. The variance is a culmination of a mixture of favourable and
unfavourable operational area results. A brief overview is a follows and more detail can be
found in the attached schedule to this agenda:
• The unfavourable variance of $425k in fees and charges is mainly attributable to a
decline in fee revenue from the Wembley Golf Course;
• The favourable variance of $637k for operating grants, subsidies and contributions is
a result of having received $481k of the general purpose grant in advance.
• The favourable variance of $102k from interest earnings is due to a combination of
accessing higher interest rates and an increase in funds available for investment.
• The unfavourable variance of $1.6 million on gains on disposal of assets is due to
less than anticipated gains on disposal of residential land.
• The favourable variance of $706k for materials and contracts is due to a number of
programmes, non capital and capital projects having been carried forward to the
2012/2013 financial year. It is also partially due to a number of services at the
Wembley Golf Course and Quarry Amphitheatre having been brought in house as
opposed to being contracted out.
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