MEETING OF COUNCIL - Town of Cambridge

COUNCIL MINUTESTUESDAY 26 FEBRUARY 2013CR13.13 MID YEAR REVIEW - 2012/2013PURPOSE OF REPORT:To report on the mid year review of the budget and assess the financial performance for the sixmonth period ended 31 December 2012, consistent with good governance principles and therequirements of the Local Government Act 1995.BACKGROUND:Under Regulation 33A of the Financial Management Regulation 1996, Council is required toconduct a budget review of its adopted annual budget after considering changes in its operatingenvironment since the beginning of the financial year with a view to forecasting the financialimpacts likely to arise for the remainder of the year.The following tasks have been undertaken:• conducting an assessment of material variances to determine whether they are permanentor timing differences;• identify any offsetting increases in income or reductions in expenditure that will help reducemajor variances;• establish whether the budget review process and recommendations have a material impacton the long term plans;• establish whether at the close of the financial year there is sufficient working capital to meetcurrent commitments before the following year’s budget is adopted;• identify projects that may not be completed and which will need to be carried forward intothe new financial year for inclusion in the following year’s budget;• identify grants and contributions received that are likely to remain unspent at the close ofthe financial year.RevisedBudget YTD Budget YTD Actual YTD YTD Forecast2012/2013 31-Dec-12 31-Dec-12 Variance Variance 30-Jun-13$'000 $'000 $'000 $'000 % $'000CASH SURPLUS/(DEFICIT)FROM OPERATIONS5,279 13,051 13,873 823 6.3% 5,334NON OPERATING ACTIVITIESSURPLUS/(DEFICIT)3,190 (781) 96 877 (112.3)% 6,760SURPLUS/(DEFICIT) FROM ALLACTIVITIES8,469 12,270 13,969 1,699 13.8% 12,094CLOSING FUNDS 0 17,790 19,338 1,548 8.7% 0H:\CEO\GOV\COUNCIL MINUTES\13 MINUTES\FEBRUARY 2013\C CR.DOCX 176