MEETING OF COUNCIL - Town of Cambridge

COUNCIL MINUTES
TUESDAY 27 NOVEMBER 2012
Cash Surplus (Closing Funds)
The surplus as at 31 October 2012 is $19.9 million which is above the year to date budget of
$18.7 million, a $1.2 million difference. The surplus is predominantly due to the $0.8 million
under expenditure with respect to materials and contracts.
This surplus will decline as the year progresses with day to day operational expenditure and
the carrying out of budgeted capital works.
Cash Surplus ($ millions)
24
22
20
18
16
14
12
10
8
6
4
2
0
July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June
Budget
Actual
Material Variances
Permanent variances above $30k and timing variances above $100k for specific line items
are normally reported upon. As at 31 October 2012 three material variances exist as follows:
• Waste management - waste fee revenue, $154k under YTD budget;
• Wembley Golf Course - green fee revenue, $128k under YTD budget.
• Wembley Golf Course - interest expense, $88k under YTD budget.
The shortfall in waste revenue is expected to be offset by a reduction in waste disposal
costs. To what extent will become apparent as the year progresses.
POLICY/STATUTORY IMPLICATIONS:
The Local Government Act 1995, Section 6.4 requires the preparation of financial reports.
The Local Government (Financial Management) Regulations 1996, in particular Regulation
34, expands on this requirement to include a monthly financial report to be prepared
identifying significant variations between actual and budget. This report complies with this
requirement.
FINANCIAL IMPLICATIONS:
The variations in expenditure and revenue line items, compared to budget, may have an
impact on Council funds.
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