Document Overview
Document Overview
PURPOSE
The annual plan and budget is the key annual operational and financial planning document of the
Brisbane City Council.
 It provides the funding for the activities of the Council for the coming year.
 It states the annual operational plan for the coming year.
 It provides financial accountability for the Council through budgeted financial statements.
 It reflects the policies and direction of the Lord Mayor and Council.
 It is consistent with Council’s long term financial forecast, Corporate Plan and the Brisbane Vision.
DOCUMENTS
Four documents relating to the 2014-15 annual plan and budget are produced.
 The Lord Mayor's Annual Plan and Budget Speech, a transcript of the speech delivered to the
Council, which provides the direction for the operations, programs and financial management of
the Council.
 The Annual Plan and Budget document provides details of revenues to be raised, program
allocations, business information, annual operational plan, budgeted financial statements and the
Resolution of Rates and Charges.
 The Annual Plan and Budget Summary document provides an overview and key highlights of the
annual plan and budget.
 The Fees and Charges document provides details of the fees and charges set for Council products
and services for the financial year.
INTERPRETING THE ANNUAL PLAN AND BUDGET DOCUMENT
Setting the Annual Plan and Budget
The Council has prepared the annual plan and budget in accordance with accrual accounting and reporting
procedures required under Australian Accounting Standards. It complies with the City of Brisbane Act 2010
and the City of Brisbane Regulation 2012.
Specifically, the City of Brisbane Regulation 2012 requires Council to prepare for the budget year and the
next two financial years the following four key financial statements: (i) income and expenditure (ii) financial
position (iii) cash flows and (iv) changes in equity. The City of Brisbane Regulation 2012 also requires
Council to include its revenue policy, a revenue statement and a long term financial forecast for the budget
year and the following nine years.
The Annual Plan and Budget Document commences with an Annual Plan and Budget Overview,
which compares the budgeted financial allocations for the 2014-15 budget year with the anticipated
financial outcome for 2013-14. The overview is structured to present the financial estimates in a Summary
of Recommendations – Long Term Financial Forecast showing:
 the increase / decrease in operating capability
 the proposed allocations of expenses, estimates of revenue, assets, liabilities and equity
 appropriations from operations
 the anticipated closing accumulated surplus from 2013-14
 transfers to and from reserves
 the proposed accumulated surplus at the end of 2014-15.
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Document Overview
The purpose of the Budgeted Financial Statements follows.
Statement of Comprehensive Income
The Statement of Comprehensive Income details the revenues and expenses for the 2014-15 annual
plan and budget period and the next two financial years, calculated on an accrual basis, and provides
details of expected financial performance for these periods. It enables readers to identify the cost of
goods and services to be provided and the extent to which those costs will be recovered from revenues
raised.
The Statement of Comprehensive Income reflects the total Council operations, including Businesses and
Council Providers.
The net result of the Statement of Comprehensive Income gives rise to an increase or decrease in
Operating
Capability.
Statement of Financial Position
The Statement of Financial Position shows the assets, liabilities and equity of the Council, thereby
providing information about the resources controlled by the Council and other information which is useful for
assessing the Council's financial structure, solvency and capacity for adaptation.
The Statement of Financial Position highlights the budgeted financial position of the Council at the end
of
2014-15 and the next two financial years, in relevant categories of assets, liabilities and equity.
Assets and liabilities are disclosed as current and non-current. This distinction is based on the likelihood
of the respective items being liquidated, sold or received within the 12 month annual plan and budget
periods. Items, which are deemed to meet these criteria, are classed as current assets or current liabilities.
All other items are then classed as being non-current.
The Statement of Changes in Equity provides an understanding of the budgeted movements in the
Capital
Equity Accounts, Reserves and the Accumulated Surplus.
Together, these accounts reflect the Net Community Assets of the Council.
Statement of Cash Flows
The Statement of Cash Flows reflects the cash movements of the Council for 2014-15 and the next
two financial years. Payments to employees and suppliers for materials and services or for the
acquisition of assets are compared with cash received from rate revenue, subsidies and proceeds from
sales of assets and investments.
The information provided in the Statement of Cash Flows, together with other information in the
financial statements, assists in assessing the ability of the Council to generate cash flows to meet its
financial commitments as they fall due.
Long Term Financial Forecast
Council’s Long Term Financial Forecast includes:
a) the income of Council
b) the expenditure of Council, and
c) the value of its assets, liabilities and equity of the Council for the budget year and the following nine
years.
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Document Overview
Financial Ratios
As required by the City of Brisbane Act 2010 and the City of Brisbane Regulation 2012, the following
measures of financial sustainability are presented for 2014-15 and the next nine financial years:
 Asset Sustainability Ratio
 Net Financial Liabilities Ratio
 Operating Surplus Ratio
Whilst not a requirement of the City of Brisbane Act 2010 and City of Brisbane Regulation 2012, other
ratios have been included because the Council believes they provide valuable information to users of the
financial statements.
Program Information
Detailed information on each program is covered by a separate chapter in the annual plan and budget
document in the following format:
 Program Overview - This includes a program goal and description, a summary of the estimates by
outcome for the program showing the anticipated 2013-14 and proposed 2014-15 budgets
 Recurrent Operations Contracts - Where the forward estimates for 2015-16 to 2017-18 in any
financial summary include provision for recurrent operations contracts in those years, that
inclusion represents a commitment in this annual plan and budget to fund recurrent operations
contracts, entered into in 2014-15 and extending to, but not beyond 2017-18, to the aggregate
amounts stated in each of those years
 Outcome - This includes a description for each outcome and an overview describing its strategic
direction and alignment to Council’s Corporate Plan and the Brisbane Vision
 Strategy - For each strategy, the annual plan and budget document contains a description
 Service - Each service provides a description and a Service Budget split between Operating
(Core) and Projects
 Operating Budget - The anticipated 2013-14 and proposed 2014-15 budgets for each service
excluding the budget for projects
 Total Project Expenditure Combined with Rolling Projects list shows the proposed 2014 -15 annual
plan and budget and forward estimates for 2015-16 to 2017-18 for all expenditure projects in a
program. The forward estimates are indicative for planning purposes and signify an intention to
allocate resources. They imply neither a commitment nor an obligation. Similarly, any item which
subsequently may be allotted a higher priority may be funded, even though currently not included
 The 2014-15 Annual Plan and Budget proposes new outcome, strategy and service structures.
Every effort has been made to show accurate comparatives.
Businesses and Council Providers Information
The following information is included:
 A list of Council’s significant business activities subject to NCP reporting requirements
 A capital schedule for projects undertaken by Businesses or Council Providers that details the
capital allocation for capital projects in 2014-15 and incorporates a rolling capital program showing
forward estimates for capital projects in the subsequent three years
 Businesses and Council Providers overview - A description of Businesses or Council Providers
delivering significant business activities (subject to NCP reporting requirements) is provided with a
budgeted income statement showing the anticipated 2013-14 and proposed budgets for 2014-15
and the next two financial years. Annual performance plans are provided for Brisbane Transport
and City Parking, as required by the City of Brisbane Act 2010 and the City of Brisbane Regulation
2012.
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Document Overview
Resolution of Rates and Charges
A formal resolution that sets out the various rates levied by Council and any associated charges.
Appendix of Schedules
Individual activities that are undertaken to rehabilitate or enhance Council's infrastructure such as
roads, footpaths, drainage, parks, etc. are, for the purpose of the 2014-15 Annual Plan and Budget,
combined into projects that are termed 'Schedule' projects. Activities for Schedule projects are listed in
the Appendix of Schedules and have a brief description, location and indicative estimate.
Rounding
Figures in tables and generally in the text have been rounded. Discrepancies in tables between totals and
sums of components are due to rounding. Estimates are rounded to the nearest thousand, and estimates
midway between rounding points are rounded up.
Managing Operational Risk
Council manages operational risk by:
 the use of planning, project and program management and risk management methodologies
 developing and maintaining operational plans for the delivery of projects and services
 regular reporting to E&C on all projects funded by the annual plan and budget
 monitoring the efficiency and effectiveness of services delivered within the annual plan and budget
and both quarterly and annual reporting by the CEO to full Council
 ensuring executives and staff within Council are both appropriately skilled and accountable for
identifying and effectively managing risks within their area of responsibility
 providing tools, training and advice to the organisation to ensure effective management of risks
and compliance obligations
 monitoring and providing assurance that risks are being managed effectively and in accordance
with Council policies and standards, laws, regulations and commitments
 providing regular risk and compliance reports for its Executive Management Team
 providing an internal audit function that adopts a risk-based approach to provide assurance over
risk management and control activities across Council
 reporting the results of any internal audit reviews to its Executive Management Team.
Revenue Policy
Council’s Revenue Policy states the principles that Council proposes to employ in the budget year
for levying rates and charges, granting concessions, recovering overdue rates a nd charges for
funding physical and social infrastructure costs for new development.
Revenue Statement
Council’s Revenue Statement provides detail about Council’s revenue raising measures, including
rating categories and concessions.
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