GOVERNANCE AND RISK COMMITTEE
Monday, 3 March 2014
5:30pm
Council Chambers
Members
Councillor Bailey
Councillor Beyersdorf
Councillor Bishop
Councillor Gadd
Councillor Halligan
Councillor Maher
Councillor Murat
Councillor O’Connor
Councillor O'Donohue
Councillor Richardson
AGENDA
BUSINESS PAPER
Armidale Dumaresq Council
Page 2
INDEX
L
General Manager's Reports
L.1
L.1
Feedback on the Final Report NSW Independent Local Government Review
Panel. ........................................................................................................................... 3
Second Quarter Budget Review 2013-2014................................................................. 6
Armidale Dumaresq Council
Page 3
Item:
Title:
Author:
Attachments:
L.1
Ref: INT/2014/00857
Feedback on the Final Report NSW Independent Local Government
Review Panel.
Container: A12/5660
Administration Officer
1. Final Report of Independent Local Government Review Panel
2. Final Report of the Local Government Acts Taskforce
Introduction:
This item was deferred from the Council Meeting on the 24 February 2014 to allow Councillors
time to consider Councillor Beyersdorf’s submission that has been previously circulated to
Councillors.
The final report from the NSW Independent Local Government Review Panel was released and
the NSW Government has requested submissions on the document, closing date 7 March 2014.
Report:
Council has received a copy of the report from the NSW Independent Local Government Review
Panel and Council is requested to make a submission by the 7 March 2014.
The report contains 65 recommendations essential to make NSW Local Government sustainable
and fit for purpose into the mid 21st Century and that Councils have a once in a generation
opportunity to make changes in placing councils in a sustainable position.
The report found that the sustainability of many councils in NSW and their capacity to deliver
services that communities need has declined and there are a number of Councils at crisis point.
The solution involves a “package of measures” key issues being the need to include
amalgamations as part of the package and that rate pegging should be reviewed along with
rating exemptions and concessions. They make the point that there is not “pots of gold” at a
State and Federal level and that Councils will need to increase own source of revenues.
The panel has suggested that there needs to be greater regional and state partnerships and
councils should be looking at different and stronger models to bring about greater capacity and
efficiencies. Key functions of these regional bodies are joint strategic planning, information
exchange and Councils must see themselves as partners in one public sector, not competitors.
Key themes and recommendations
 Major new initiatives are required to tackle the underlying problems of financial
weakness and infrastructure backlogs.
 Improvements in the rating system and rate pegging are essential to generate the
revenues needed to find infrastructure and services.
 Giving limited funds and distribution of grants must change to direct more assistance
to areas of greatest need.
Armidale Dumaresq Council
Page 4



Stronger regional organisations are vital to ensure increased resource sharing and
joint planning.
A package of incentives for councils to look at amalgamations and boundary changes.
Working relationships between local government and state government need to be
improved across the board and regional coordination should be the centerpiece of
this effort.
The Recommendations
Councillors you will have read the full document and recommendations. I will only give
comment on the recommendations that management disagrees with and reasons. There is also
obviously a number of recommendations which are not relevant to Council.
Page 37 Recommendation 3 - for fiscal responsibility placing local government audits under the
aegis of the Auditor General. This is supported as long as the cost is met by the State
Government.
Page 53 recommendation 17 - Should the proposed Joint Regional water alliances be established
the assets should remain with member Councils.
Summary
The Independent Local Government Review Panel has done an exceptional job in capturing the
key issues/problems confronting Local Government and making recommendations in response
to these identified issues/problems, in moving Local Government into a position to be able to
meet future challenges and achieve the objectives of the destination 2036 vision for Local
Government.
The main issues raised by ADC in the last year are recognized in the document and
recommendations made. Review peg pegging, streamlining special rate variations, reviewing the
concessions and exemptions given on non ratable properties, increased pensioner rebates paid
for by the Federal Government, greater efficiency and capacity through regional partnerships.
The future for ADC
It is suggested that Regional Organisations are a centerpiece for the future of ADC. This vehicle
(details of governance structure and functions to be determined) will provide the strategic and
operations capacity to provide better services and efficiencies.
Financial Implications:
Not applicable.
Environmental Implications:
Not applicable.
Policy Issues:
Not applicable.
Social Implications:
Not applicable.
Integrated Planning and Reporting Issues:
Looks to address Council vision and goal of being sustainable. .
Armidale Dumaresq Council
Page 5
Risk Management Issues:
The State Government not accepting and actioning the recommendations.
Legal Issues:
Not applicable.
RECOMMENDATION:
That Council make a submission to the NSW Government on the final report of the NSW
Independent Local Government Review Panel, supporting the recommendations made and
including the positions outlined in the recommendations’ section of this report.
Armidale Dumaresq Council
Page 6
Item:
Title:
Author:
Attachments:
L.1
Ref: INT/2014/02064
Second Quarter Budget Review 2013-2014
Container: A12/5797
Chief Finance and Information Officer
1. Capital Budget Review
Introduction:
The Chief Finance and Information Officer presenting the 2013/2014 second quarter budget
review.
Section 203 (1) of the Local Government Regulation (General) 2005 requires Council’s
Responsible Accounting Officer to prepare and submit a Quarterly Budget Review Statement
(QBRS) to Council within two months from the end of each quarter. This report would have
been presented to the Council meeting on 24th February 2014, however it has been moved 1
week to the Governance and Risk on 3rd March as agreed with the General Manager because
commitments and resources allocated the preparation of the Special Rating Variation
application. The Regulations also require that a budget review statement must include or be
accompanied by a report as to whether or not the Responsible Accounting Officer (RAO)
believes that QBRS indicates that Council’s financial position is satisfactory, having regard to the
original estimate of income and expenditure.
Report:
Quarterly Budget Review
A project review of project outcomes and deliverables with the Manager has not been
conducted, however a review of income and expenditure against the project has been
completed. From this review several recommended changes to the budget has been identified
and included in this report.
As required by the accounting regulations, the following general purpose financial reports are
included in this report:





Consolidated Income Statement, Cash Flow (accrual) and Financial Performance Indicators
Income Statement by Fund
Contracts Register
Capital budget review
Cash and Investments Restrictions
Armidale Dumaresq Council
Page 7
Income Statement
Consolidated All Funds
Council’s Consolidated Income Statement following the second quarter review has projected an
operating surplus including Capital Grants income or a deficit excluding the recognition of
Capital Grants income.
Original Budget
September
December
Operating Result
(,000)
Revised Budget
Operating Result
(,000)
Revised Budget
Operating Result
(,000)
Surplus / (Deficit
Surplus / (Deficit
Surplus / (Deficit)
Including Capital Income
(958)
(597)
59
Excluding Capital Income
(2,421)
(2,012)
(1,357)
The operating result does not include capital expenditure movements. These are included in the
Cash Flow Statement in “Plant Property and Equipment”.
Armidale Dumaresq Council
Page 8
Armidale Dumaresq Council
CONSOLIDATED INCOME STATEMENT
For financial years 2013 - 2014
Original
Budget
2014
$'000
Actual
2013
$'000
Notes
Revised
Budget
2014
$'000
Actual
2014
$'000
Income from Continuing Operations
Revenue
18,922
17,145
1,184
1,698
8,301
1,351
20,003
14,029
1,375
1,800
7,406
1,463
1,100
0
0
49,700
0
46,076
Rates and Annual Charges
User Charges and Fees
Interest and Investment Revenue
Other Revenues
Grants and Cont'n provided for operational purposes
Grants and Cont'n provided for capital purposes
Other Income
Net Gain from Disposal of Assets
Share of Interests in Joint Ventures and Associates
Using the Equity Method
Total Income from Continuing Operations
3a
3b
3c
3d
3e,f
3e,f
20,003
14,090
1,375
1,746
6,903
1,416
19,517
8,791
165
1,144
3,092
736
5
1,039
371
19
0
46,571
0
33,817
4a
4b
4c
4d
4d
4e
5
16,985
2,163
9,154
12,185
0
6,026
8,649
882
4,740
0
0
3,343
46,512
17,613
59
16,204
0
0
Expenses from Continuing Operations
17,676
1,262
11,802
11,860
0
6,373
16,958
2,163
9,106
12,184
0
6,624
48,973
47,035
727
0
(624 )
(958 )
0
(2,421 )
Employee Benefits and On-Costs
Borrowing Costs
Materials and Contracts
Depreciation and Amortisation
Impairment
Other Expenses
Net Loss from the Disposal of Assets
Share of Interests in Joint Ventures and Associates
Using the Equity Method
Total Expenses from Continuing Operations
19
Operating Result from Continuing Operations
Operating Result from discontinued Operations
Net Operating Result for the Year
24
(1,357 )
16,939
Armidale Dumaresq Council
Page 9
Income Statement by Fund
The General Fund Income Statement following the second quarter review has moved from an
original net operating deficit after capital grants of $3,384,000 to $2,561,000.
General Fund
Original Budget
Operating Result
(,000)
September
Revised Budget
Operating Result
(,000)
December
Revised Budget
Operating Result
(,000)
Surplus /
(Deficit)
Surplus / (Deficit)
Surplus / (Deficit)
Including Capital Income
($1,971)
($1,610)
($1,578)
Excluding Capital Income
($3,384)
($2,975)
($2,561)
The Water Fund Income Statement following the second quarter review has moved from a net
operating surplus after capital grants of $940,000 to $1,244,000.
Water Fund
Original Budget
Surplus / (Deficit)
Surplus / (Deficit)
Including Capital Income
$990
$990
December
Revised Budget
Operating Result
(,000)
Surplus /
(Deficit)
$1,294
Excluding Capital Income
$940
$940
$1,244
Operating Result
(,000)
September
Revised Budget
Operating Result
(,000)
The Sewer Fund Income Statement following the second quarter review has moved from a net
operating surplus after capital grants of $23,000 to $443,000.
Sewer Fund
Original Budget
Operating Result
(,000)
September
December
Revised Budget
Revised Budget
Operating Result
(,000)
Including Capital Income
$23
$23
Operating Result
(,000)
Surplus /
(Deficit)
$443
Excluding Capital Income
$23
$23
$443
Surplus / (Deficit)
Surplus / (Deficit)
Armidale Dumaresq Council
Page 10
Cash-Flow Statement
Consolidated All Funds
Council’s Consolidated Cash Flow Budget Statement following the second quarter review and
taking into account recommended adjustments, has projected an increase in cash for the year
ending 30 June 2014 to a surplus of $121k. This is compared to a deficit of $122k in the original
budget. The Cash Flow, unlike the Income Statement, takes into account all operating and
capital expenditure and income and changes in investments and excludes non-cash transactions
such as depreciation. This improvement in result is attributable to the changes recommended in
the first quarter.
Armidale Dumaresq Council
CONSOLIDATED CASH FLOW STATEMENT
For financial years 2013 - 2014
Original
Budget
2014
$'000
Actual
2013
$'000
Notes
Revised
Budget
2014
$'000
Actual
2014
$'000
CASH FLOWS FROM OPERATING ACTIVITIES
18,922
17,145
1,184
9,652
1,698
19,926
13,454
1,366
8,841
2,248
(17,676)
(11,802)
(1,262)
(6,373)
(14,769)
(9,104)
(2,032)
(6,467)
11,488
13,463
537
1,301
999
0
(7,560)
0
(27,036)
0
(5,722)
(26,037)
0
14,000
(1,341)
(1,548)
(1,341)
12,452
4,424
(122)
Receipts
Rates and Annual Charges
User Charges and Fees
Interest Received
Grants and Contributions
Other Receipts
Payments
Employee Costs
Materials and Contracts
Interest Paid
Other Expenses
Net Cash provided for (or used in) Operating
Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds from Property, Plant & Equipment
Proceeds from sale of Investment Securities
Payments
Purchase of Property, Plant & Equipment
Purchase of Investment Securities
Net Cash provided for (or used in) Investing
Activities
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Proceeds from Borrowing & Advances
Proceeds from Retirement Home Contributions
Payments
Repayments of Borrowing & Advances
Repayments of Retirement Home Contributions
Net Cash provided for (or used in) Financing
Activities
NET INCREASE/(DECREASE) IN CASH HELD
20,003
14,090
1,375
8,318
1,746
19,517
8,791
165
3,828
1,144
(16,985)
(9,154)
(2,163)
(6,026)
(8,649)
(4,740)
(882)
(3,343)
11,205
15,833
1,039
4,797
353
0
(12,824)
(16,548)
(3,837)
0
(23,536)
(3,485)
14,000
14,000
(1,548)
(913)
12,452
13,087
121
25,435
Armidale Dumaresq Council
Page 11
On a funds basis, Council’s cash position is as follows:
Fund
Increase (Decrease) In Cash
Position
Original
Cash Result
$(,000)
(189)
40
27
(122)
General
Water
Sewer
Total
September
Revised Cash
Result
$(,000)
38
40
27
105
December
Revised Cash
Result
$(,000)
(701)
856
(34)
121
Balance Sheet and Key Performance Ratios
Consolidated All Funds
The following financial performance KPI’s are calculated in accordance with the code of
accounting practice and will be used in this and future reports.






Operating Performance Ratio
Unrestricted Current Ratio
Debt Service Cover Ratio
Capital Expenditure Ratio
Debt Service Ratio and
Building and Infrastructure Renewal Ratio
The ratios have five (5) years of comparative actual data and forecast budgeted result.
Estimated capital costs for both constructed and non-constructed assets are based on the actual
for the period ending 30 September 2013 and estimated project costs for the next quarter.
Armidale Dumaresq Council
Page 12
Ratio
Ratio
Calculation
Purpose
Operating Performance
Ratio (Consolidated)
(Operating revenue
excluding capital grants
and contributions less
operating expenses) over
rating revenue excluding
capital grants and
contributions)
Measures Council’s
ability to contain
operating expenditure
within operating
revenues
Benchmark Minimum Negative 4 - Financial Sustainability Target Positive 2
Ratio
Ratio
Calculation
Purpose
Un Restricted Ratio
Current assets less all
external restrictions
over current liabilities
less specific purpose
liabilities
The unrestricted
current ratio is specific
to local government
and is intended to
represent a council’s
ability to meet debt
payments when they
fall due
Benchmark Minimum is 1.5 - A financial sustainability target of 2 or greater is deemed to be
satisfactory.
Armidale Dumaresq Council
Page 13
Ratio
Ratio
Calculation
Purpose
Debt Service Cover
Ratio
Operating results before
interest and
depreciation (EBITDA)
over principal
repayments in the
statement of cash flows
+ borrowing interest
costs in the Income
Statement
This measures the
availability of cash to
service debt including
interest, principal and
lease payments
Benchmark Minimum is 2 - Financial sustainability target positive 2.
Ratio
Capital Expenditure
Ratio
Ratio
Calculation
Annual capital
expenditure over
depreciation
Purpose
Measures the extent to
which a Council is
forecasting to expand
its asset base with
capital expenditure
spent on both new and
replacement and
renewal of existing
assets
Benchmark Minimum is 1.1 - Financial sustainability target 1.5.
Armidale Dumaresq Council
Page 14
Ratio
Building and Infrastructure
Renewals
Ratio
Calculation
Asset renewals over
depreciation of assets
Purpose
The proportion spent on
asset renewals and asset
deterioration measured by
its accounting
depreciation. Asset
renewal is defined as the
replacement or
refurbishment of existing
assets to an equivalent
capacity or performance
not new assets or
enhancements of existing
assets
Benchmark Minimum is 1 - Financial sustainability target positive 1.
Ratio
Debt Service Ratio
Ratio
Calculation
Debt Cost over income from
continuing operations
Purpose
Measures the amount of
income that services the
repayment of debt
Financial sustainability indicator less than 10 is deemed acceptable. Note that this indicator is
based on income from continuing operations so any fluctuations in variable income may
increase or decrease this indicator.
Armidale Dumaresq Council
Page 15
Loans Register
Original
Amount
Loan Animal shelter
& Roads
Roads 43%
Animal 57%
Maturity
Date
Opening
Balance @ 30
June 2013
Total Balance
@ 30 June
2014
Balance by Fund / Function
General
Waste
Fund
Water Fund
Function
353,000
30/06/2022
221,144.00
202,820.62
202,820.62
3,845,000
15/07/2029
3,160,167.58
3,073,959.09
2,390,718.29
Loan (Malpas Dam)
100,000
1/06/2013
5,974.55
-
-
Loan (Water supply)
100,000
17/09/2015
12,576.61
6,486.29
6,486.29
Loan (CBD upgrade)
1,000,000
29/06/2020
562,286.12
496,437.33
496,437.33
CBD 9.26%
Depot 7.4%
Landfill 55.56%
Water 27.78%
5,400,000
29/03/2030
4,437,458.24
4,283,060.18
710,973.15
1,786,000
27/06/2014
277,252.41
-
-
Loan Gas Works &
Water Fund
Gas wks 79%
Water fd 21%
Loan Computer &
Aquatic Centre
(REPAID 2014)
computer 95.52%
aquatic centre 4.48%
683,240.80
1,192,418.79
2,379,668.24
Armidale Dumaresq Council
Page 16
Loan Register
Continued
Original
Amount
Maturity
Date
Opening
Balance @ 30
June 2013
Total Balance
@ 30 June
2014
Loan Mann St Depot
upgrade
(REPAID 2014)
1,300,000
30/05/2033
1,062,685.23
-
300,000
30/05/2013
-
-
1,000,000
4/02/2020
875,000.00
750,000.00
750,000.00
6,360,000
28/06/2026
4,982,821.76
4,729,868.40
2,515,954.90
150,000
10/05/2014
9,111.82
-
70,000
10/05/2014
4,252.19
-
Loan - N.E Regional
Indoor Sports
Complex
(REPAID 2014)
Loan (Saleyards/Gas
works)
saleyards 32% gas
68%
Loan Gasworks ,HNE
Water, Waste
Gas Works 39.31%
Hockey NE 5.66%
Water 23.58%
Waste 31.45%
Malpas Dam- Loan
(REPAID 2014)
Water supply-Malpas
Dam
(REPAID 2014)
Balance by Fund / Function
General
Waste
Fund
Water Fund
Function
1,118,517.97
1,095,395.53
-
Loan- Ozonation
Plant
Loan Waste Depot
Facility
TOTAL
3,000,000
9/05/2038
2,850,862.63
2,810,446.17
14,000,000
27/07/2023
-
13,225,809.00
18,461,593.14
29,578,887.08
38,764,000
2,810,446.17
13,225,809.00
7,066,904.29
5,811,110.02
16,700,872.77
Armidale Dumaresq Council
Page 17
Asset Back Log
At 30 June 2013 three percent (3%) of assets are categorised as unsatisfactory. Council has
identified the cost to restore its current backlog in infrastructure assets works to a satisfactory
level is $15,787,000:
Special Schedule No. 7 - Condition of Public Works as at 30 June 2013
$'000
Dep'n.
Rate
Asset
Annual
Annual
Cond.
restore to a
satisfactory
cond.
Maint.
Maint.
ASSET CLASS
Asset Category
(%)
Buildings
CAB Grounds/Facilities
1.00%
2
5
100
105
Public Halls
2.00%
3
-
25
21
Old Council Chambers
2.00%
3
-
20
13
Town Hall
1.00%
2
35
40
27
Rental Other Properties
1.00%
3
-
20
14
Aquatic Centre
2.00%
3
-
15
2
Kent House
1.00%
3
3
-
-
Museums
1.00%
3
40
120
113
Saleyards
2.00%
2
-
20
10
SES
1.00%
3
-
10
-
Traffic/Fire Training Education Centre
2.00%
3
-
40
37
Engineering & Works
2.00%
3
-
70
68
Workshop
2.00%
3
-
120
117
Library
1.00%
5
60
30
25
Cemetery
2.00%
3
-
10
5
Parks
2.00%
3
7
15
12
Mall
1.00%
3
-
5
-
Animal Control
Sewer
1.00%
2.00%
2
2
-
5
105
101
Tourism Development
2.00%
2
4
60
59
Aerodromes
2.00%
1
-
200
188
Waste
2.00%
2
20
10
6
Water
1.00%
2
-
40
37
174
1,080
960
sub total
Armidale Dumaresq Council
Page 18
Special Schedule No. 7 - Condition of Public Works (continued)
Dep'n.
$'000
Rate
(%)
Asset
Annual
Annual
Cond.
restore to a
satisfactory
cond.
Maint.
Maint.
ASSET CLASS
Asset Category
Public Roads
Sealed Roads
2.00%
4
3,780
1,213
841
Unsealed Roads
2.00%
4
3,735
1,005
2,874
Sealed Roads Structure
1.00%
Bridges
1.00%
4
Footpaths
2.00%
Cycle ways
96
8
96
4
216
323
2.00%
4
23
10
Kerb and Gutter
1.00%
4
130
144
Road Furniture
1.00%
4
sub total
528
80
940
170
70
9,063
2,765
4,454
Armidale Dumaresq Council
Page 19
Special Schedule No. 7 - Condition of Public Works (continued)
Dep'n.
Rate
$'000
(%)
Asset
Annual
Annual
Cond.
restore to a
satisfactory
cond.
Maint.
Maint.
ASSET CLASS
Asset Category
Water
Treatment Plants
1..25%
3
60
60
873
Water Connections
2.00%
2
60
50
-
Reservoirs
1.50%
4
60
50
62
Dams
1.50%
4
2,000
80
250
Hydrants
1.50%
2
15
10
-
Pipeline
1.25%
3
120
360
1,320
Pump Station
1.50%
3
100
10
115
2,415
620
2,620
sub total
Sewerage
Pump Stations
1.50%
2
-
10
-
Pipeline
1.25%
3
1,000
650
1,060
Manholes
1.25%
3
60
25
-
Treatment Works
1.25%
4
600
202
1,374
Sewerage Connection
2.00%
3
25
15
-
1,685
902
2,434
sub total
Armidale Dumaresq Council
Page 20
Special Schedule No. 7 - Condition of Public Works (continued)
Dep'n.
Rate
$'000
(%)
Asset
Annual
Annual
Cond.
restore to a
satisfactory
cond.
Maint.
Maint.
ASSET CLASS
Asset Category
Drainage Works
Pipes
5.00%
2
1,450
266
207
Inlet and Junction Pits
5.00%
2
650
119
93
Culverts
5.00%
2
sub total
TOTAL - ALL ASSETS
Asset Condition "Key" - as per the DLG Integrated Planning & Reporting Manual
1
Excellent - No work required (normal maintenance)
2
Good - Only minor maintenance work required
3
Average - Maintenance work required
4
Poor - Renewal required
5
Very Poor - Urgent renewal/upgrading required
350
65
51
2,450
450
350
15,787
5,817
10,818
Armidale Dumaresq Council
Page 21
FUNCTIONS AND ACCOUNTS
Budget Review Summary
Council’s projected budgets continue to be under pressure to meet increasing and existing
service levels.
Adjustments have been made to this quarterly review to reflect the original budget as adopted
in the Long Term Financial Plan (LTFP). Transposition errors occurred in transferring the data
from the LTFP to the ledger. Figures have now been reconciled and an adjusted balance is
presented. These adjustments relate primarily to Capital transactions which are reflected in the
changed cash positions for each fund. Following an internal review of current active projects
and corporate costs, the following changes to budget are recommended to Council for approval.
$
Budget
Adjusted Opening Cash Balance – General Fund
Current
Budget
Allocation
$
$
Adjustment New Budget
-665,572.00
Operating Adjustments
Recreation access - brought forward grant
Aged and Disability team leader - grant duplicated in original budget
-
New Cash Operating Balance - General Fund
-700,719.00
Adjusted Opening Cash Balance Water Fund
620,612.00
1,700 88,473 -
22,545 32,481
20,845
55,992
234,599
-
-
234,599
259,383
-
-
259,383
Operating Adjustments
Reversal or water contribution
New Cash Operating Balance - Water Fund
855,211.00
Adjusted Opening Cash Balance Sewer Fund
-293,313.00
Operating Adjustments
Reversal or water contribution
New Cash Operating Balance - Sewer Fund
Consolidated Cash Balance
- 33,930.00
120,562.00
Armidale Dumaresq Council
Page 22
The 2013/2014 Original Budget projected a cash deficit of $122k for General, Water and
Sewerage Funds. After adjusting known variances and taking up the recommended changes,
Council’s projected cash result will improve to a cash surplus of $121k. On a funds basis the
result is summarised as follows:
Fund
General Fund
Water Fund
Sewer Fund
Surplus/Deficit
Deficit
Surplus
Deficit
Amount
(701)
856
(34)
In the short term, it is essential that Council concentrate on improving the budgeted result to a
surplus of between 1.5% to 2% total recurrent operation. In dollar terms a target of $800k
would achieve this goal. One of the new Division of Local Government financial performance
indicators looks at Council’s ability to have an operating surplus over the medium to longer
term. This Council has failed to achieve an acceptable benchmark for this area.
Operating Income
Income at the end of the second quarter is in line with expectation and is close to 50% or
greater.
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
-$2,000,000
Current Year Actual Income
Revised Budget Income
Armidale Dumaresq Council
Page 23
Operating Expenditure
Expenditure levels to date are generally very close to the 50 percent level as they should be
except depreciation. The following chart demonstrates the actual to total budget for each
expense category as at the end of December.
25,000,000.00
Current Year Expenditure Actual
Revised Expenditure Budget
20,000,000.00
15,000,000.00
10,000,000.00
5,000,000.00
0.00
Materials and
Contracts
Employee Costs
Borrowing Costs
Depreciation &
Amortisation
Other Expenses
The following table provides line details of the above summary charts:
Actual Budget Variance Report YTD - Period Ending December 2013
Armidale Dumaresq
YTD Actual
YTD Budget
YTD Variance
YTD %
Revenue
Ordinary Rates
1100 - Residential Rates
1105 - Pension Rebate Granted by Council - Residential
1110 - Farmland Rates
1115 - Pension Rebate Granted by Council - Farmland
1120 - Mining Rates
1130 - Business Rates
Total Ordinary Rates
Special Rates
1200 - Special Capital Rate (ADC)
Total Special Rates
Annual Charges
1140 - Sewer Rates (Annual Charge)
1145 - Pension Rebate Granted by Council - Sewerage
1170 - Water Rates (Annual Charge)
1175 - Pension Rebate Granted by Council - Water
1190 - Special Drainage Charge (ADC)
1210 - Domestic Waste Mgt Annual Charge
1215 - Pension Rebate Granted by Council - DWM
Total Annual Charges
$8,256,454
-$297,512
$2,270,179
-$10,861
$21,046
$1,905,452
$12,144,756
$8,491,402
-$321,240
$2,311,016
-$9,668
$21,654
$1,975,007
$12,468,171
-$234,949
$23,728
-$40,837
-$1,193
-$608
-$69,556
-$323,415
97
93
98
112
97
96
97
-$230
-$230
$0
$0
-$230
-$230
0
0
$2,846,012
-$137,845
$1,910,920
-$145,507
$416,950
$2,566,456
-$84,022
$7,372,963
$2,895,934
-$146,461
$1,970,873
-$154,563
$428,032
$2,628,757
-$87,566
$7,535,005
-$49,923
$8,616
-$59,953
$9,056
-$11,082
-$62,301
$3,544
-$162,042
98
94
97
94
97
98
96
98
Armidale Dumaresq Council
Page 24
YTD Actual
YTD Budget
YTD Variance
User Charges
1160 - Sewer Other (Comm. Annual chgs)
1211 - Other Waste Mgt Annual Charge
1250 - Water User Charges
1260 - Sewer User Charges
1265 - Trade Waste Charges
1280 - Other Waste Mgt User Charges
1285 - Other Waste Charges (Internal)
1290 - Other User Charges
Total User Charges
$1,285,313
$1,620,597
$2,268,862
$26,108
$29,682
$657,825
$29,187
$1,400
$5,918,974
$1,310,456
$1,644,833
$5,126,722
$38,228
$54,240
$1,564,200
$195,151
$25,240
$9,959,070
-$25,143
-$24,236
-$2,857,860
-$12,120
-$24,558
-$906,376
-$165,964
-$23,840
-$4,040,096
98
99
44
68
55
42
15
6
59
User Fees
1299 - Subdivision Certificate Income
1300 - Regulatory/Statutory Fees
1301 - 149 Planning Certificate Income
1302 - 603 Certificate Income
1303 - Inspection Fees
1304 - DA Fees
1305 - Construction Certificates
1306 - Section 68 Fee
1308 - 149(a) Building Certificate Income
1309 - CDC Application Fee
1310 - Private Works
1311 - s121ZP s735A Certifcates
1320 - RTA - State Roads
1330 - Airport Passenger Head Tax
1331 - Aircraft Weight Landing Charge
1332 - Aircraft Parking Fees
1333 - Airport Hire Car Concessions
1334 - Airport Sundry Income
1340 - Swimming Pool Entry Fees
1350 - Saleyards
1360 - Public Cemeteries
1370 - Rent & Lease Income
1371 - Internal Rents
1430 - Quarries
1550 - Other Fees
Total User Fees
$0
$33,605
$30,117
$36,881
$80,191
$71,903
$30,257
$18,090
$4,250
$19,095
$167,378
$5,760
$1,273,549
$613,857
$0
$16,618
$5,110
$50
$64,342
$52,710
$66,111
$187,897
$5,378
$29,078
$59,423
$2,871,650
$6,150
$40,600
$52,100
$35,900
$126,682
$216,300
$51,200
$86,909
$5,150
$41,350
$339,797
$2,240
$1,148,833
$1,136,000
$3,777
$20,072
$10,290
$1,537
$138,300
$60,000
$134,343
$221,375
$18,510
$200,000
$33,376
$4,130,790
-$6,150
-$6,995
-$21,983
$981
-$46,491
-$144,397
-$20,943
-$68,819
-$900
-$22,255
-$172,419
$3,520
$124,717
-$522,143
-$3,777
-$3,454
-$5,180
-$1,487
-$73,958
-$7,290
-$68,232
-$33,478
-$13,132
-$170,922
$26,047
-$1,259,140
0
83
58
103
63
33
59
21
83
46
49
257
111
54
0
83
50
3
47
88
49
85
29
15
178
70
$44,480
$0
$0
$107,371
$13,586
$165,436
$60,000
$225,249
$300,000
$750,000
$40,000
$1,375,249
-$15,520
-$225,249
-$300,000
-$642,629
-$26,414
-$1,209,813
74
0
0
14
34
12
Investment Revenues
1220 - Extra Charges
1650 - Interest on Water Fund Investments
1660 - Interest on Sewer Fund Investments
1670 - Interest on General Fund Investments
1675 - Interest on Deferred Debtors
Total Investment Revenues
Armidale Dumaresq Council
Page 25
YTD Actual
YTD Budget
YTD Variance
Other Revenues
1230 - Legal Fees
1560 - Other Operating Revenues
1565 - Rebates
1570 - Sale of goods
1580 - Staff FBT Contributions
1585 - Other Staff Contributions/Recoveries
1590 - Cattle Sales
1600 - Animal Sales
1610 - Commissions
1620 - Fines
1630 - Sundry Sales
1640 - Training Workshops
1990 - Insurance Claims
Total Other Revenues
$35,959
$102,054
$278,191
$45,067
$57,747
$3,399
$322,631
$13,985
$2,937
$167,179
$95,292
-$318
$20,272
$1,144,395
$144,800
$180,013
$46,350
$104,315
$110,000
$3,225
$559,400
$25,780
$22,130
$332,474
$180,717
$0
$36,500
$1,745,703
-$108,841
-$77,959
$231,841
-$59,249
-$52,253
$174
-$236,769
-$11,795
-$19,193
-$165,295
-$85,425
-$318
-$16,228
-$601,308
25
57
600
43
52
105
58
54
13
50
53
0
56
66
Grants
1690 - Financial Assistance Grants (GPR)
1691 - Financial Assistance Grants (Roads)
1700 - Pension Rebate Grant Income (GPR)
1701 - Pension Rebate Grant Income (Water)
1702 - Pension Rebate Grant Income (Sewer)
1703 - Pension Rebate Grant Income (DWM)
1710 - Community Centre Grants State
1711 - Community Centre Grants Federal
1720 - Health Grants State
1730 - Transport Grants State
1740 - Roads to Recovery Grants - Federal
1750 - Heritage and Culture Grants State
1760 - Bushfire and Emergency Services Grants State
1790 - Aged and Community Services State
1791 - Aged and Community Services Federal
1820 - Library Grants State
1842 - Education & Training Grants State
1844 - Other Grants State
1845 - Other Grants Federal
Total Grants
$662,160
$311,604
$164,424
$81,706
$78,503
$54,808
$1,700
$0
$25,601
$152,000
$656,888
$0
$345,925
$0
$0
$85,507
$0
$34,039
$220,228
$2,875,093
$2,898,960
$1,242,003
$165,790
$84,222
$79,647
$54,275
$37,613
$12,679
$0
$472,520
$751,500
$7,000
$401,200
$126,773
$1,500
$130,943
$20,560
$109,000
$261,690
$6,857,875
-$2,236,800
-$930,399
-$1,367
-$2,516
-$1,144
$533
-$35,913
-$12,679
$25,601
-$320,520
-$94,612
-$7,000
-$55,275
-$126,773
-$1,500
-$45,436
-$20,560
-$74,961
-$41,462
-$3,982,782
23
25
99
97
99
101
5
0
0
32
87
0
86
0
0
65
0
31
84
42
Contributions
1852 - S94 Open Space Contributions
1853 - S94 Community Facilities Contributions
1854 - S94 Other Contributions
1857 - S94 Street Tree Contributions
1858 - S94 Traffic Facilities Contributions
1868 - RTA Contributions
1870 - Water Contributions (Headworks)
1880 - Sewer Contributions (Headworks)
1910 - Roads Contributions
1920 - K&G/Footpaving Cont'n
1930 - Sporting Association Contributions
1941 - Other Councils - Joint Works & Shared Service
1965 - Other Contributions & Donations
Total Contributions
$0
$0
$0
-$1,200
$2,006
$661,222
$46,978
$38,734
$3,642
$3,928
$1,849
$90,330
$105,300
$952,790
$1,000
$500
$1,000
$2,000
$1,000
$597,000
$50,000
$126,901
$25,000
$0
$11,500
$400,185
$244,204
$1,460,290
-$1,000
-$500
-$1,000
-$3,200
$1,006
$64,222
-$3,022
-$88,167
-$21,359
$3,928
-$9,651
-$309,854
-$138,904
-$507,500
0
0
0
-60
201
111
94
31
15
0
16
23
43
65
Gain or Loss on Disposal of Asset
1970 - Proceeds from Sale of P&E
1972 - Proceeds from Sale of Property
Total Gain or Loss on Disposal of Asset
$352,614
$18,182
$370,795
$1,039,000
$0
$1,039,000
-$686,386
$18,182
-$668,205
34
0
36
Armidale Dumaresq Council
Page 26
YTD Actual
Current Payables
1665 - Interest on Trust Fund
Total Current Payables
YTD Budget
YTD Variance
$11,011
$11,011
$0
$0
$11,011
$11,011
0
0
Work Order Tfr
1999 - Transfer To From Workorders
Total Work Order Tfr
$0
$0
$0
$0
$0
$0
0
0
Transfer From Reserve
1998 - Transfer From Reserve
Total Transfer From Reserve
$0
$0
$4,797,070
$4,797,070
-$4,797,070
-$4,797,070
0
0
$33,827,634
$51,368,223
-$17,540,589
66
Total Revenue
YTD Actual
YTD Budget
YTD Variance
Expenditure
Materials and Contracts
2429 - Software Maintenance
2446 - Cleaning Supplies
2452 - Repairs and Maintenance
2456 - Stocktake Adjustment
2458 - Inventory Price Variation
2462 - Stock Returns Price Variation
2464 - Cost of repairs to Inventory
2470 - Service Subsidy Recurrent
2473 - Plant Hire Expense
2474 - Chemical Costs
2475 - Plant Hire: Contractors Wet Hire
2476 - Materials and Consumables
2477 - Plant Hire: Contractors Dry Hire
2478 - Registration of Plant Items
2480 - Fuel
2481 - Diesel Fuel Rebate
2482 - Licence Fees
2483 - Testing Costs
2490 - Plant Running Income
2492 - Major Contracts
2493 - Consultancies
2494 - Digital Program Contractor costs
2501 - Medical Expenses
2510 - Food Supplies
2511 - Linen Service
2530 - Rents and Lease Payments
2535 - Internal Waste Expenses
2800 - Asset Purchases
2830 - Capitalise Expenses
2941 - Other Council Shared Service Contribution
Total Materials and Contracts
$311,294
$404
$183,206
$10
$0
$0
$0
$226
$2,317,755
$68,363
$57,062
$2,207,342
$223,375
$1,697
$384,640
-$34,881
$97,958
$1,266
-$1,894,840
$2,122,400
$300,454
$48,401
$3,177
$13,261
$151
$9,561
$28,256
$1,420,344
$0
-$4,645
$7,866,236
$366,348
$0
$605,354
$2,640
$0
$721
$140
$0
$4,415,900
$215,796
$73,186
$4,622,457
$23,391
$92,520
$729,161
-$41,120
$195,866
$0
-$4,322,800
$1,774,598
$656,500
$0
$8,000
$29,690
$850
$1,542
$59,257
$12,276,965
$0
$2,800
$21,789,762
-$55,054
$404
-$422,148
-$2,630
$0
-$721
-$140
$226
-$2,098,146
-$147,433
-$16,125
-$2,415,114
$199,984
-$90,823
-$344,521
$6,239
-$97,908
$1,266
$2,427,960
$347,802
-$356,046
$48,401
-$4,823
-$16,429
-$700
$8,019
-$31,001
-$10,856,621
$0
-$7,445
-$13,923,526
85
0
30
0
0
0
0
0
52
32
78
48
955
2
53
85
50
0
44
120
46
0
40
45
18
620
48
12
0
-166
36
Armidale Dumaresq Council
Page 27
YTD Actual
Employee Costs
2094 - Oncost Credit
2095 - Salary Oncosts
2100 - Ordinary Salaries
2110 - Overtime Salaries
2120 - Casual Salaries
2125 - Allowance Salaries
2130 - Annual Leave
2140 - Long Service Leave
2150 - Sick Leave
2160 - Carers Leave
2165 - Bereavement Leave
2170 - Public Holidays
2180 - Other Leave
2190 - Accrued Leave
2200 - Maternity Leave
2210 - Superannuation
2220 - Workers Compensation Insurance
2225 - Workers Compensation Wages
2226 - Workers Compensation Claimed
2230 - Fringe Benefits Tax
2240 - Payroll Tax
2245 - Travel & Accommodation
2250 - Training Costs
2260 - Staff Uniform Expense
2270 - Safety Clothing
2280 - Medical Retirements & Terminations
2285 - Other Employee Costs
2290 - Industrial Issues Expenses
2340 - Staff Medicals
Total Employee Costs
Borrowing Costs
2350 - Interest on Overdraft
2352 - Interest on Loans
Total Borrowing Costs
Depreciation & Amortisation
2354 - Plant & Equip Depreciation
2356 - Office Equip Depreciation
2362 - Buildings Depreciation
2364 - Other Structures Depreciation
2366 - Sealed Roads Structure Depreciation
2367 - Sealed Roads Surface Depreciation
2368 - Unsealed Roads Depreciation
2369 - Bridges Depreciation
2370 - Footpaths Depreciation
2371 - Kerb and Gutter Depreciation
2372 - Stormwater Depreciation
2374 - Water Supply Depreciation
2376 - Sewerage Depreciation
2378 - Heritage Depreciation
2380 - Library Books Depreciation
2382 - Airport Depreciation
2384 - Other Assets Depreciation
2385 - Remediation Depreciation
Total Depreciation & Amortisation
YTD Budget
YTD Variance
-$2,896,940
$2,897,461
$5,767,444
$341,703
$134,254
$155,304
$550,545
$297,688
$203,332
$51,181
$4,409
$243,096
$28,568
$17,969
$7,887
$848,999
$224,758
$24,250
-$17,155
$33,880
$39,463
$49,398
$91,078
$2,169
$18,588
$156,348
$7,726
$0
$725
$9,284,127
-$6,019,973
$5,352,354
$10,757,711
$521,843
$166,079
$281,642
$1,144,000
$418,000
$443,200
$88,200
$15,440
$532,080
$78,000
$0
$10,400
$1,873,200
$682,800
$52,000
-$52,000
$30,800
$86,120
$95,184
$137,785
$6,260
$63,059
$449,000
$7,280
$79
$160
$17,220,703
$3,123,033
-$2,454,894
-$4,990,266
-$180,140
-$31,825
-$126,338
-$593,455
-$120,312
-$239,868
-$37,019
-$11,031
-$288,984
-$49,432
$17,969
-$2,513
-$1,024,201
-$458,042
-$27,750
$34,845
$3,080
-$46,658
-$45,786
-$46,708
-$4,091
-$44,471
-$292,652
$446
-$79
$565
-$7,936,576
48
54
54
65
81
55
48
71
46
58
29
46
37
0
76
45
33
47
33
110
46
52
66
35
29
35
106
0
453
54
$0
$942,750
$942,750
$5,000
$2,157,576
$2,162,576
-$5,000
-$1,214,826
-$1,219,826
0
44
44
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,696,326
$356,995
$437,599
$413,657
$2,623,776
$81,359
$381,843
$582,421
$170,861
$506,291
$597,581
$2,248,745
$1,210,125
$628
$180,726
$168,275
$413,869
$113,511
$12,184,590
-$1,696,326
-$356,995
-$437,599
-$413,657
-$2,623,776
-$81,359
-$381,843
-$582,421
-$170,861
-$506,291
-$597,581
-$2,248,745
-$1,210,125
-$628
-$180,726
-$168,275
-$413,869
-$113,511
-$12,184,590
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Armidale Dumaresq Council
Page 28
YTD Actual
YTD Budget
YTD Variance
Armidale Dumaresq Council
Page 29
Other Expenses
2386 - Audit Expenses
2388 - Advertising
2390 - General Bank Fees
2392 - Bad Debts Expense
2393 - Cashier Shortfall
2394 - Donations and Contributions
2395 - Contributions to Regional Bodies
2396 - Election Expenses
2398 - Asset Insurance
2399 - Comprehensive Insurance
2400 - Public Indemnity Insurance
2401 - Public Liability Insurance
2402 - Miscellaneous Insurance
2403 - Personal Accident/Volunteers Insurance
2404 - CTP Insurance
2406 - Planning & Dev Legal Fees
2408 - Other Legal Fees
2410 - Electricity
2411 - Gas
2412 - Mayoral Allowance
2414 - Councillor Fees
2416 - Members' Expenses
2417 - Members' Training Expenses
2418 - Operating Leases
2420 - Postage and Freight
2422 - Printing and Stationery
2424 - Promotions and Publicity
2428 - Street Lighting
2430 - Subscriptions and Publications
2431 - Internet Exp
2432 - Telephone
2433 - Communications
2434 - Valuations - Rating
2435 - Valuations - Insurance
2436 - Valuations - Assets
2437 - Council Rates - Waste (within LG Area)
2438 - Council Rates - Sewer (within LG Area)
2439 - Council Rates - Residential (within LG Area)
2440 - Council Rates - Business (within LG Area)
2441 - Council Rates - Farmland (within LG Area)
2442 - Council Water Rates (within LG Area)
2444 - Security
2445 - Cash Security
2447 - Items for Resale
2449 - Drainage Rates (inside LG area)
2451 - Special Rates (Inside LG Area)
2521 - Merchant Fees
2522 - Australia Post Fees
2531 - Internal Rents
Total Other Expenses
Non Current Borrowings
2454 - Principal Loan Repayments
Total Non Current Borrowings
Eliminations on Consolidation
2980 - Overheads Transferred In
2981 - Overheads Transferred Out
Total Eliminations on Consolidation
$24,200
$43,288
$26,938
$0
$0
$127,391
$580,643
$800
$257,436
$115,994
$0
$345,476
$42,081
$2,093
$6,228
$12,658
$52,358
$355,499
$16,836
$0
$96,269
$785
$6,618
$45,500
$51,736
$42,081
$54,150
$221,312
$31,880
$25,121
$153,839
$50,303
$63,785
$0
$44,800
$8,957
$26,079
$16,757
$70,236
$10,419
$81,343
$24,999
$0
$204,369
$1,150
$0
$0
$9,511
$5,314
$3,357,228
$39,216
$97,752
$51,600
$157,040
$206
$193,446
$1,080,373
$0
$301,344
$123,840
$1,216
$387,844
$63,676
$67
$77,112
$60,744
$165,540
$784,611
$25,072
$39,344
$161,992
$3,096
$8,640
$72,240
$91,737
$94,045
$29,023
$500,976
$91,694
$22,210
$285,248
$118,680
$63,824
$2,064
$0
$8,046
$32,290
$7,687
$74,730
$8,171
$155,538
$67,437
$547
$433,600
$1,321
$1,223
$5,320
$30,960
$4,396
$6,026,780
-$15,016
-$54,464
-$24,662
-$157,040
-$206
-$66,055
-$499,731
$800
-$43,909
-$7,846
-$1,216
-$42,368
-$21,595
$2,026
-$70,884
-$48,086
-$113,182
-$429,113
-$8,236
-$39,344
-$65,723
-$2,311
-$2,022
-$26,740
-$40,001
-$51,964
$25,127
-$279,664
-$59,813
$2,911
-$131,409
-$68,377
-$39
-$2,064
$44,800
$912
-$6,212
$9,070
-$4,494
$2,248
-$74,195
-$42,438
-$547
-$229,231
-$171
-$1,223
-$5,320
-$21,449
$917
-$2,669,551
62
44
52
0
0
66
54
0
85
94
0
89
66
3115
8
21
32
45
67
0
59
25
77
63
56
45
187
44
35
113
54
42
100
0
0
111
81
218
94
128
52
37
0
47
87
0
0
31
121
56
$913,324
$913,324
$1,547,880
$1,547,880
-$634,556
-$634,556
59
59
$0
$0
$0
$9,034,152
-$9,082,091
-$47,939
-$9,034,152
$9,082,091
$47,939
0
0
0
Armidale Dumaresq Council
Page 30
YTD Actual
Work Order Tfr
2999 - Transfer To From Workorders
Total Work Order Tfr
YTD Budget
YTD Variance
$42,090
$42,090
$0
$0
$42,090
$42,090
0
0
$0
$0
$16,547,900
$16,547,900
-$16,547,900
-$16,547,900
0
0
$169
$169
$0
$0
$169
$169
0
0
Total Expenditure
$22,405,924
$77,432,253
-$55,026,329
29
(Surplus) / Deficit
-$11,421,711
$26,064,030
-$37,485,740
-44
Transfer To Reserve
2998 - Transfer To Reserves
Total Transfer To Reserve
Not Applicable
2858 - Write off Expense Other Assets
Total Not Applicable
Financial Report by Function
Council operates over 45 different function or business units and each area receives its income
and consumes resources at different times of the year. The budget review aims to take into
account seasonal factors and scheduled works programs so when comparing actual to budget it
is not linear and, therefore, caution is needed to be exercised when understanding if a budget is
likely to meet the set target.
Council’s service delivery projects and tasks are grouped and classified into core functions as
prescribed by the Division of Local Government Code of Accounting Practice.
Governance
Costs relating to Council’s role as a component of democratic government, including
elections, meetings and associated activities, area representation and public disclosure
and compliance, together with related administration costs, costs not otherwise
attributed to functions.
Public Order & Safety
Fire protection, emergency services, enforcement of Local Government regulations,
animal control, other.
Health
Administration and inspection, immunisations, food control, health centres, other.
Environment
Noxious plants, insect and vermin control, environmental protection, solid waste
management, street cleaning, drainage, stormwater management.
Community Services & Education
Administration, education, migrant services, Aboriginal services, aged and disabled, family
day care, youth services, other services to families and children, other community
services.
Armidale Dumaresq Council
Page 31
Housing & Community Amenities
Public cemeteries, public conveniences, street lighting, town planning, housing, other
community amenities.
Water Supplies
Sewerage Services
Recreation & Culture
Public libraries, museums, art galleries, community centres, public halls, performing arts
venues, other performing arts, sporting grounds and venues, swimming pools, parks and
gardens, lakes, other sport and recreation.
Mining, Manufacturing & Construction
Building control, other.
Transport & Communication
Roads and streets, bridges, footpaths, aerodromes, parking areas, bus shelters and
services, water transport, works undertaken for Roads & Transport Authority, other.
Armidale Dumaresq Council
Page 32
Economic Affairs
Camping areas, tourism and area promotion, industrial development promotion,
saleyards and markets, real estate development, private works, other business
undertakings.
The following report shows by function the current status in each cost area:
Armidale Dumaresq Council
Principal Activities by Process - Summarised
Using Periods from Brought Forward to January
For the Financial Year Ending 30 June 2014
REVENUE
Governance
Civic Governance
REVISED
ACTUAL
BUDGET
YTD
REVISED
OPERATING
BUDGET
REVISED
CAPITAL
BUDGET
ACTUAL
OPERATING
YTD
ACTUAL
CAPITAL
YTD
$
(6,192) $
(6,200) $
271,151 $
0 $
162,542 $
0
Total Governance $
(6,192) $
(6,200) $
271,151 $
0 $
162,542 $
0
Administration
CAB Grounds/Facilities M&R
Administration Support
Corporate Management
Council Administration Support
Customer Service Centre
Information Technology
GIS
Records Management
FOI
Engineering & Work s
Fleet Operations
Plant Management
Work shop
Work s Stores
Purchasing & Supply
Training
Work s Depot
Financial Services
Oncosts
Executive
Risk Management
Council Occup.Health & Safety
Council Personnel
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Total Administration $
Public Order and Safety
Crime Prevention
Bushfire Services
Emergency Services Support
Fire Brigade/Other Service
SES - State Emergency Service
Traffic/Fire Training Education Centre
Animal Control
Enforcement of Local Government Regulations
Total Public Order and Safety
Health
Health
EXPENDITURE
$
$
$
$
$
$
$
$
$
$
Total Health $
Community Services & Education
Aboriginal Services
Kent House
Recreation Access
Volunteer Centre
Dementia Respite
Aged and Disability Team Leader
Community Development
Mayor/Council to be Determined
Youth Services
Total Community Services & Education
$
$
$
$
$
$
$
$
$
$
(4,195)
(13,460)
0
(110,000)
(15)
(154,171)
0
0
0
(21,855)
(3,700,225)
(7,000)
(1,500)
(200)
0
0
(15,510)
(252,408)
0
0
(97,850)
0
(102,346)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(1,053)
0
3,810
(71,869)
(34)
(37,500)
0
0
(180)
(11,254)
(400,845)
0
(10,083)
0
(580)
(13,680)
(5,378)
(57,116)
(229,941)
0
(78,106)
(49,590)
(2,376)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
278,595
593,263
0
32,270
258,265
2,054,555
865
230,853
0
659,215
(2,645,052)
7,000
14
9,076
291,940
198
37,285
1,586,187
(646,416)
409,686
771,791
163,213
1,406,067
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(4,480,735) $
(965,776) $
5,498,872 $
0
(605,200)
0
0
0
(26,060)
(53,114)
(320,060)
(1,004,434)
0
(323,448)
0
0
0
(21,710)
(64,664)
(187,939)
(597,761)
44,855
680,572
17,568
138,256
53,437
52,696
417,600
403,443
1,808,428
$
$
$
$
$
$
$
$
$
(141,283) $
(141,283) $
(3,042)
(22,545)
(66,300)
(45,708)
(100,942)
(32,481)
(11,500)
0
(16,542)
(299,060)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(79,203) $
(79,203) $
(3,000)
(13,579)
(63,821)
(31,812)
(65,954)
(19,735)
(1,221)
0
(11,219)
(210,342)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
230,553 $
230,553 $
118,920
122,131
61,668
53,633
95,470
26,783
316,462
0
80,706
875,773
$
$
$
$
$
$
$
$
$
$
24,000
0
0
0
0
364,834
0
0
0
0
5,195,625
0
0
0
0
0
281,425
0
0
0
0
0
0
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
5,865,885 $
0
0
0
0
0
40,000
10,281
0
50,281
$
$
$
$
$
$
$
$
$
0 $
0 $
0
0
0
0
0
0
14,317
0
0
14,317
$
$
$
$
$
$
$
$
$
$
195,245
240,219
0
30,930
159,212
1,066,282
41,203
149,533
0
518,302
(1,332,813)
109,959
89,510
1,374
159,731
21,042
213,922
914,193
(137,020)
259,383
688,966
3,876
347,152
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
3,514
0
0
0
0
130,726
0
0
0
51,854
1,098,572
0
0
0
0
0
112,834
0
0
0
0
0
0
3,740,200 $
1,397,499
32,166
452,666
6,152
99,998
30,608
62,237
219,756
170,034
1,073,617
$
$
$
$
$
$
$
$
$
0
49,431
0
0
0
0
5,035
0
54,466
139,153 $
139,153 $
0
0
79,466
92,477
48,557
25,171
76,392
28,905
146,555
80
41,107
538,710
$
$
$
$
$
$
$
$
$
$
0
1,770
0
0
0
0
6,969
0
0
8,739
Armidale Dumaresq Council
Page 33
Armidale Dumaresq Council
Principal Activities by Process - Summarised
Using Periods from Brought Forward to January
For the Financial Year Ending 30 June 2014
REVENUE
EXPENDITURE
REVISED
ACTUAL
BUDGET
YTD
REVISED
OPERATING
BUDGET
REVISED
CAPITAL
BUDGET
ACTUAL
OPERATING
YTD
ACTUAL
CAPITAL
YTD
Catchment Management
Vegetation Management
Urban Stormwater Management
Cemetery Grounds
Cemetery Management
Public Toilets
Development Control Management
Long Service Leave Levy
Section 94
Environmental Management
Environmental Strategic Planning
Domestic Waste Management
Other Waste Management
Waste Admin and Management
Waste Collection
Landfill Operation
Transfer Station
Total Housing & Community Amenities
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
0
0
(428,032)
(134,343)
0
0
(501,346)
0
(5,500)
(135,690)
(37,000)
(2,595,999)
(3,315,219)
0
0
(2,300,373)
(5)
(9,453,507)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
0
0
(416,850)
(78,482)
0
0
(280,827)
(1,314)
(806)
(1,052)
0
(2,564,055)
(2,486,237)
0
0
(61,913)
(100)
(5,891,636)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2,937
105,058
311,250
171,648
0
82,016
820,767
0
0
639,236
272,547
1,519,607
1,354,030
13,476
2,012
1,959,904
7,118
7,753,419
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
0
0
472,334
29,400
0
0
0
0
5,500
0
0
0
0
0
0
14,706,301
0
15,442,262
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
18,343
105,862
206,730
66,462
1,719
45,694
552,295
0
0
181,239
182,496
885,076
760,418
(27,631)
1,054
904,370
613
4,083,079
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
4,083
0
6,818
8,971
0
0
0
0
0
6,352
0
0
38,317
0
0
564,106
0
805,759
Water Supplies
Private Work s Water
Water Management - Administration
Water Management - Engineering & Supervision
Dams and Weirs
Water Mains
Reservoirs
Water Pumping Stations
Water Treatment
Water Other
Total Water Supplies
$
$
$
$
$
$
$
$
$
$
(157,120)
(84,693)
0
0
(9,381)
0
0
0
(7,233,686)
(7,484,880)
$
$
$
$
$
$
$
$
$
$
(89,620)
(82,199)
0
0
(9,406)
0
0
0
(4,046,141)
(4,227,367)
$
$
$
$
$
$
$
$
$
$
139,284
114,472
288,962
216,297
890,579
73,906
96,659
868,684
338,859
3,027,701
$
$
$
$
$
$
$
$
$
$
0
0
51,000
655,379
292,892
40,800
122,400
455,960
1,022,969
2,641,400
$
$
$
$
$
$
$
$
$
$
73,589
58,800
144,975
93,113
553,948
46,725
69,182
433,840
164,448
1,638,620
$
$
$
$
$
$
$
$
$
$
0
0
0
51,538
684,002
24,055
29,238
56,039
70,904
915,776
Sewerage Services
Private Work s Sewer
$
Sewer Management - Administration
$
Sewer Management - Engineering and Supervision
$
Sewer Mains
$
Sewer Pumping Stations
$
Sewer Treatment Operation
$
Sewer Treatment Effluent Management
$
Sewer Treatment Biosolids Management
$
Sewer Other
$
Sewer Miscellaneous
$
Total Sewerage Services $
(48,930)
(111)
0
0
0
(640)
(646,350)
(85,700)
(4,578,408)
0
(5,360,139)
$
$
$
$
$
$
$
$
$
$
$
(17,467)
0
0
0
0
(21,936)
(324,343)
(37,262)
(4,142,729)
0
(4,543,737)
$
$
$
$
$
$
$
$
$
$
$
55,046
149,208
289,281
911,906
19,427
598,088
735,165
0
334
0
2,758,457
$
$
$
$
$
$
$
$
$
$
$
0
0
51,500
1,421,400
0
0
0
0
0
87,100
1,560,000
$
$
$
$
$
$
$
$
$
$
$
17,692
82,970
130,309
370,797
5,432
307,958
384,517
0
0
0
1,299,676
$
$
$
$
$
$
$
$
$
$
$
0
0
0
1,111,332
0
77
44,040
0
0
0
1,155,449
(45,000)
(4,468)
(35,068)
(215,750)
0
5,250
0
0
(300)
(164,231)
0
(270)
(345)
(505)
0
0
0
0
0
(460,687)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(28,167)
(1,724)
(23,636)
(130,482)
0
(10,755)
0
0
(7,763)
(140,669)
0
(3,149)
(15,637)
(1,885)
(1,494)
(12,631)
0
0
0
(377,991)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
84,494
81,974
96,463
449,084
26,466
138
25,320
1,548
532,419
991,227
0
0
527,218
461,074
316,627
29,356
5,160
20,921
178,075
3,827,562
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
0
26,000
0
107,878
12,418
0
0
0
30,000
263,529
0
0
87,700
24,000
0
0
0
0
80,146
631,671
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
20,655
18,617
51,614
252,772
9,415
0
0
0
107,272
525,517
900
6,688
252,405
557,783
12,929
100,123
3,250
13,221
30,835
1,963,994
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
0
0
0
25
6,090
0
0
0
0
69,522
0
0
25,325
8,353
0
0
0
0
39,195
148,511
Recreation and Culture
Community Facilities
Public Halls
Town Hall
Swimming Pools & Aquatic Centres
Aquatic Centre Management
Art Galleries
Cultural/Recreational
Museums Grounds/Facilities
Museums Management
Library
Ovals Active Use
Park s & Reserves
Park s for Active Use
Park s for Passive Use
Park s Management
Public Places
Other Sport & Recreation
Unused Land
Mall & CBD Areas
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Total Recreation and Culture $
Armidale Dumaresq Council
Page 34
Armidale Dumaresq Council
Principal Activities by Process - Summarised
Using Periods from Brought Forward to January
For the Financial Year Ending 30 June 2014
REVENUE
Transport and Communication
Streetscapes
Carpark s
Park ing Areas
Kerb & Gutter
Street Lighting
Urban Facilities
Aerodromes
Regional Airport Orchardfield
Roads & Transport Management
Roads Regional Rural Sealed
Roads Regional Rural Unsealed
Roads Regional Urban
Roads Local Urban
Roads Local Rural Sealed
Roads Local Rural Unsealed
Bridges Local Urban
Bridges Local Rural Sealed
Bridges Local Rural Unsealed
Bridges Regional Rural Sealed
Bridges Regional Rural Unsealed
Roads State (RTA Work s)
Bus Shelters
Cycleways
Footpath
Total Transport and Communication
Economic Affairs
Old Council Chambers
Other Council Facilities
Events & Promotions
Rental Other Properties
Saleyards
Economic Development
Private Works
Tourism Development
Tourist Office
Television Blackspot Program
General Purpose Revenue
General Purpose Revenue
EXPENDITURE
REVISED
ACTUAL
BUDGET
YTD
REVISED
OPERATING
BUDGET
REVISED
CAPITAL
BUDGET
ACTUAL
OPERATING
YTD
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
0
0
(22,538)
0
(47,000)
(62,520)
(1,286,114)
(900)
0
(310,000)
0
0
(286,269)
(957,566)
(861,668)
0
(553,000)
0
(10,000)
0
(1,148,833)
0
0
0
(5,546,407)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(43,300)
(2,033)
(12,683)
(409)
0
(46,000)
(850,585)
0
0
(106,000)
(51,000)
0
(28,704)
(968,492)
(585,839)
0
0
0
0
0
(1,270,655)
0
0
(26,028)
(3,991,728)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
194,909
0
61,562
185,471
508,009
5,674
762,720
41,923
256,080
310,272
0
0
835,560
384,664
1,651,739
20,000
20,000
20,000
20,000
0
1,115,052
5,584
765
197,214
6,597,198
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
0
30,600
0
450,000
0
0
1,821,000
0
7,756
0
0
0
386,593
1,155,588
697,000
0
0
0
0
0
0
0
48,384
74,000
4,670,921
$
$
$
$
$
$
$
$
$
$
Total Economic Affairs $
(14,080)
0
(2,980)
(21,369)
(134,572)
(127,000)
(141,247)
(21,500)
(32,750)
(80)
(495,578)
$
$
$
$
$
$
$
$
$
$
$
(9,913)
(26,706)
(7,139)
(8,103)
(95,971)
(125,498)
(151,841)
514
(33,137)
0
(457,794)
$
$
$
$
$
$
$
$
$
$
$
49,532
354
27,541
30,268
39,253
512,319
123,113
375,659
332,692
(13,814)
1,476,916
$
$
$
$
$
$
$
$
$
$
$
0
0
0
0
20,274
0
0
0
0
0
20,274
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
93,911
0
39,108
80,001
260,951
0
339,213
5,519
244,080
226,158
0
4,578
339,418
356,786
1,641,929
6,658
26,068
33,564
220
936
370,676
1,136
10,828
155,129
4,236,866
22,576
6,988
14,945
79,315
12,172
259,733
212,737
283,329
197,716
203
1,089,715
ACTUAL
CAPITAL
YTD
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
0
0
0
92,568
76
0
149,464
0
17,960
0
0
0
246,040
328,005
121
0
0
0
0
9,957
0
806
133
667
845,796
$
$
$
$
$
$
$
$
$
$
$
0
0
0
0
23,644
0
0
0
0
0
23,644
$
Total General Purpose Revenue $
(16,435,321) $
(16,435,321) $
(13,439,599) $
(13,439,599) $
82,560 $
82,560 $
0 $
0 $
40,003 $
40,003 $
0
0
TOTAL : $
(51,368,223) $
(34,818,614) $
34,398,590 $
30,897,011 $
20,037,848 $
5,355,638
Armidale Dumaresq Council
Page 35
The recommended changes to the accounts by function are as follows:
Function
Community Services
Decrease in Income
Grant brought forward for Recreation access of 21k less duplicated
grant for Aged and disabled of 55k.
Water
Decrease in Expenditure
Removal of water contribution to general fund that was omitted in
the 1st qtr Budget Review
Sewer
Decrease in Expenditure
Removal of sewer contribution to general fund that was omitted in
the 1st qtr Budget Review
Net Change in Cash Result From Revised 1st to 2nd Quarter
Net Change to
Budget
$34,000
$234,000
$259,000
$527,000
Armidale Dumaresq Council
Page 36
Budget Review of Contracts, Consultancies and Legal Expenses
Details of specific contracts for the 2013/14 year are included below:
Armidale Dumaresq Council
Budget Review for the quarter ended 31 December 2013
Current Contracts
CURRENT YEAR
Contractor
Contract detail &
purpose
Original
Contract
Amount
$
Rehabilitation of
Sewer
1,452,426
Insituform Pacific
Parking Detection &
807,830
Database Consultants Aust Handheld Devices
Cleaning Various
Locations
57,172
Diane's Cleaning
Internal Audit
50,000
TNR Financial Services
Ready Mixed
100000pa
Boral & Ducat's Earthmoving Concrete
approx
Armidale Recycling Services Recycling Collection 4,555,000
approx
Waste Collection
6,500,000
Cleanaway
Group Trainer Digital
Hub
70,000
Tracey McLauchlin
Group Trainer Digital
Hub
62,555
Attentive Consulting
Investigation,Design
Preparation of
Tender Documents
Upgrade of
Dumaresq dam
229,571
Arup
Insurances
888,601
Statewide Mutual
Pathway Annual
Maintenace
56,715
Infor Global Solutions
Concept Design
Airport Water &
sewer
98,120
Hunter Water Aust
Inspection of Sewer
Veolia Water Network Services
Road Maintenance
Unit
Adtrans Hino P/L
Entrance Signage
Danthonia Designs
Upgrade of Enlighten
Open Spatial Technologies and Oracle
P/L
Database
Heavy Rigid Truck
with 5M tipping body
JT Fossey(Sales) P/L
Rehabilitation of
Sewer Manholes
Flowpro P/L
11000GVM Cab
Chassis Truck
JT Fossey(Sales) P/L
8500GVM Cab
Wideland Truck & Machinery Chassis Truck
Skid Mounted
Jetting Machine with
trade
Pumps Australia P/L
Technology One
EAM Implementation
Executive Collections
Debt Collection
Eletricity for Major
Sites
ERM Power Retail P/L
Current
Contract
Value
$
Contract
Amount
Variation
TOTAL paid
Contract
Amount paid
to date
Commencement in previous
including
date
years
bonuses*
Duration of
Contract
673,605
2,126,031
Mar-12
1,054,712
2,017,137
3 years
0
807,830
Mar-12
449,458
449,458
5 years
0
57172.04
Aug-12
53,888
97,025
0
50000
Jul-12
24,449
43,041
Y
119,457
Y
Annual Supply
43,137
Y
2 years
18,592
y
57,375
y
Feb-12
764,139
1,239,549 8 years
396,822
y
6,500,000
Feb-12
1,153,393
1,665,446 8 years
512,053
y
70,000
Feb-13
27,732
73,682 Task Completion
42,000
y
62,555
Feb-13
62,242
124,484 Task Completion
62,242
y
229,571
Mar-13
35,412
32,123
Y
888,601
Jul-13
707,554 Annual Supply
707,554
Y
56,715
Apr-13
56,714 Annual Supply
56,714
Y
98,120
Apr-13
52,578
106,529 Task Completion
53,951
Y
92,041
Apr-13
29,072
117,946 Task Completion
88,874
Y
368,714
368,714
Apr-13
Task Completion
83,191
83,191
Jun-13
87,496 Task Completion
87,496
Y
35,933 Task Completion
35,933
Y
0
18199
Jul-12
962,425
Budgeted
in
2013/2014
(Y/N)
4,555,000
73,842
100000pa
Total
Payment
YTD
Annual Supply
67,535 Task Completion
Y
55,963
0
55,963
Jul-13
-
144,239
0
144,239
Jul-13
-
144,239
Y
55,715
0
55,715
Jul-13
-
49,608 Task Completion
49,608
Y
77,000
0
77,000
Jul-13
-
77,000 Supplied
77,000
Y
54,524
0
54,524
Jul-13
-
54,524 Supplied
54,524
Y
64,950
0
64,950
Jul-13
64,950 Supplied
64,950
50,000
0
50,000
Jul-13
38,738 Task Completion
38,738
Y
180,000
0
180,000
Jul-13
42,786 Annual Supply
42,786
Y
0
655,000
Jul-13
-
291,089 Annual Supply
291,089
Y
Y
655000 pa
144,239 Supplied
Tony Williams Machinery P/LTractor with trade
Landfill Bin Transfer
J R Richards & Sons
86,490
0
86,490
Aug-13
-
86,490 Supplied
86,490
70,000
0
70,000
Jul-13
-
63,540 Annual Supply
63,540
Tony Williams Machinery P/LTractor with trade
Reach Mower with
trade
International Mowers P/L
Annual Support and
Maintenance fee
Technology One
Landfill Compaction
R A & R G Nelson
Bitumen Seal
Boral Construction Materials Enmore Road
84,500
0
84,500
Aug-13
-
84,050 Supplied
84,050
Y
50,050
0
50,050
Aug-13
-
50,500 Supplied
50,050
Y
126,813
0
126,813
Jul-13
126,813 Annual Supply
126,813
Y
303,000
0
303,000
Jul-13
206,687 Annual Supply
206,687
Y
69,300
0
69,300
Sep-13
60,093 Task Completion
60,093
Y
100,000
0
100,000
Jul-13
82,311 Annual Supply
82,311
Y
84,098
0
84,098
Sep-13
-
84,098 Supplied
84,098
Y
533,500
0
533,500
Jul-13
-
474,590
Y
Ridley Mini Skips
Sorting Fee
Insight Enterprises Aust P/L Software Licences
Contract A2013/10
Design and
Construction of Road
Slip failure repairs on
Kempsey Road
Lower Creek
Pan Civil
-
474,590 Task Completion
This document forms part of Armidale Dumaresq Council's Quarterly Budget Review Statement for the quarter ended 31st December 2013 and should be read in conjunction with the other documents in the Quarterly Budget Review
Statement.
Armidale Dumaresq Council
Page 37
Capital Budget Review Statement
Council is required to report quarterly on the capital budget and how it is funded. The following
table illustrates Council’s total capital budget, any variations included in this review.
It is expected that the capital budget will continue along its current trend so that funding and
expenditure will approximate the revised budget figure.
Armidale Dumaresq Council
Budget review for the quarter ended 30th December 2013
Capital Budget
ORIGINAL
Budget
2013/2014
(000's)
Approved
Changes
Recommended
changes for
Council
Sept Review
Resolution
(000's)
(000's)
Capital Funding
Rates and Other Untied funding
Capital Grants & Contributions
New Loans
Internal Restrictions
-renewals
-new assets
External Restrictions
-renewals
-new assets
Other Capital Sources
Income from Sale of Assets
-Plant & Equipment
-Land & Buildings
Total Capital Funding
9,129.00
1,360.00
14,000.00
1,821.00
26,310.00
1,494.00
-
Capital Expenditure
New Assets
-Plant & Equipment
-Land & Buildings
-Airport
Renewals
-Plant & Equipment
-Land & Buildings
-Roads, Bridges and Footpaths
-Drainage
-Water & Sewerage Projects
-Library Books
-Airport
-Other
Total Capital Expenditure
2,912.00
2,145.00
472.00
4,093.00
264.00
1,821.00
14,603.00
26,310.00
Loan Repayments
1,546.00
PROJECTED
year end Budget
2013/2014
(000's)
1,494.00
-
10,623.00
1,360.00
14,000.00
1,821.00
27,804.00
10,623.00
1,360.00
14,000.00
1,821.00
27,804.00
70.00
712.00
712.00
1,494.00
-
2,912.00
2,145.00
542.00
4,093.00
264.00
2,533.00
15,315.00
27,804.00
2,912.00
2,145.00
542.00
4,093.00
264.00
2,533.00
15,315.00
27,804.00
-
1,546.00
1,546.00
-
-
-
REVISED
Budget
2013/2014
(000's)
Armidale Dumaresq Council
Page 38
Armidale Dumaresq Council
Page 39
Cash and Investments Budget Review Statement
The following is the cash and investments particulars for the period 1 December 2013 to 31
December 2013.
All of Council’s investments for the period ending are in accordance with:
Council Investment Policy POL152.
Local Government Act 1993 – Section 625.
Local Government Act 1993 – Order of the Minister dated 12 January 2011.
The Local Government General Regulation 2005 Reg 212.
At the end of the December period Council held $34,774,204.26 in investments and a
consolidated bank account balance of $4,530,231.80 excluding Trust Fund.
During the month of December total payments and receipts were $5.988 million and $3.887
million respectively.
Council’s bank account balance as per bank statements at the end of the period 31 December
2013 are as follows:
Bank Accounts
General Fund
1,238,361.13
Business Cash Reserve
2,037,611.50
Sub Total
3,275,972.63
AMP Bank (at call)
1,105,301.48
Digital Hubs Grant
92,705.88
Digital Enterprise Grant
56,251.81
Trust Fund
Total Bank Balances
952,040.86
5,482,272.66
Armidale Dumaresq Council
Page 40
Investments
%
30 day BBSW Index
2.63
Average Interest Rate on Term Deposit Investments
3.71
Armidale Dumaresq Council
Page 41
The following are the details of Council's investments as at the beginning of the period
Investment at
Interest
Institution
Market Value
Rate %
% of
Portfolio
Term Deposits
NAB
2,050,461.37
3.82
5.90
Bank of QLD
1,000,000.00
3.80
2.88
ING Bank
1,000,000.00
3.82
2.88
500,000.00
3.82
1.44
ING Bank
1,200,000.00
3.43
3.45
Community Mutual
1,109,621.40
3.16
3.19
RaboDirect
2,000,000.00
3.70
5.76
Bank of QLD
1,000,000.00
3.70
2.88
ME Bank
2,000,000.00
3.55
5.76
AMP
1,000,000.00
3.60
2.88
AMP
3,000,000.00
4.00
8.63
St George
3,000,000.00
3.85
8.63
Rabo
1,000,000.00
4.00
2.88
ME Bank
1,047,918.70
3.55
3.02
NAB
1,112,179.53
3.82
3.20
Bank of Queensland
1,000,000.00
3.60
2.88
NAB
7,000,000.00
3.99
20.14
Bank of Queensland
1,000,000.00
3.55
2.88
NAB
Sub Total
31,020,181.00
Other Investments
Hold to Maturity Investments
Longreach Global Capital (FRN)
3,730,000.00
Sub Total
3,730,000.00
Total
34,750,181.00
Redemptions to the WBC General and Business A/c's
Funds Transferred from the WBC General and Business A/c's
Increased principal due to roll over of funds
Revaluation of FRNs
24,023.26
10.73
Armidale Dumaresq Council
Page 42
Closing Balance at the end of the Period
34,774,204.26
The following are the details of Council's investments as at the end of the period
Investment at
Interest
Institution
Market Value
Rate %
% of
Portfolio
Term Deposits
NAB
2,069,775.04
3.75
5.95
Bank of QLD
1,000,000.00
3.70
2.88
ING Bank
1,000,000.00
3.61
2.88
504,709.59
3.82
1.45
ING Bank
1,200,000.00
3.85
3.45
Community Mutual
1,109,621.40
3.16
3.19
RaboDirect
2,000,000.00
3.70
5.75
Bank of QLD
1,000,000.00
3.70
2.88
ME Bank
2,000,000.00
3.55
5.75
AMP
1,000,000.00
3.60
2.88
AMP *
3,000,000.00
4.00
8.63
St George *
3,000,000.00
3.85
8.63
Rabo *
1,000,000.00
4.00
2.88
ME Bank
1,047,918.70
3.55
3.01
NAB
1,112,179.53
3.82
3.20
Bank of Queensland
1,000,000.00
3.60
2.88
NAB *
7,000,000.00
3.99
20.13
Bank of Queensland
1,000,000.00
3.55
2.88
NAB
Sub Total
31,044,204.26
Other Investments
Hold to Maturity Investments
Longreach Global Capital (FRN)
3,730,000.00
Sub Total
3,730,000.00
Total
-
34,774,204.26
* Landfill Capital
10.73
Armidale Dumaresq Council
Page 43
Armidale Dumaresq Council
Page 44
CDO Recovery Action
Financial Implications:
Longreach Global Capital (FRN) is the only security that is subject to price risk. Maturity is
November 2014 and is Capital Guaranteed by UBS.
Legal Issues:
Council continues to actively pursue legal avenues for recovery of investments placed by
Lehman Brothers under the Individually Managed Portfolio (IMP) contract as part of the Lehman
Brothers Australia administration. Currently the administrators have deferred current action to
liquidate Lehman Brothers Australia until an appeal submitted during the month of June by the
parent company Lehman’s Holdings is resolved.
Reserves and Cash Working Funds
After accounting for budget movements at the 30 December 2013 from reserve, Council’s
restricted assets register status is per the following table:
Armidale Dumaresq Council
Budget review for the quarter ended 30 December 2013
Cash & Investments
Opening
Balance
1 July 2013
(000's)
Approved
Changes
ORIGINAL
Budget
2013/2014
(000's)
Sept
Review
(000's)
Recommended
REVISED Budget
Movements
(000's)
Recommended
changes for
Council
Resolution
(000's)
PROJECTED
year end Budget
2013/2014
(000's)
ACTUAL
YTD
(000's)
Unrestricted
Externally restricted
Developer Contributions
Unexpended Grants
Unexpended Contributions
Unexpended Loans
Water Supply Funds
Sewerage Funds
Domestic Waste Management
Total Externally restricted
Internally restricted
Employee Entitlements
Plant Replacement
Office Equipment
Asset Replacement
Airport Improvements
Other Reserves
Parks & Gardens
Roadworks
Maintenance Conditions (Roads)
Total Internally restricted
Total Restricted
Total Cash & Investments
Avaliable Cash
311.00
-
1,143.00
243.00
156.00
409.00
7,268.00
6,580.00
270.00
16,069.00
-
-
1,977.00
110.00
2,000.00
1,426.00
659.00
6,172.00
-
22,241.00 -
-
-
-
409.00
40.00
27.00
14,162.00
13,820.00
58.00 110.00
-
-
399.00 -
1,977.00
1,600.00
3,577.00
754.00 -
815.00
61.00
754.00
-
-
754.00 -
58.00
-
1,426.00
659.00
11,852.00
-
1,977.00 200.00 2,177.00 -
815.00 61.00
754.00 -
1,800.00
1,968.00
-
1,143.00
8,716.00
8,881.00
14,432.00
30,886.00
243.00
156.00
2,027.00
2,426.00 -
-
-
-
1,143.00
8,123.00
6,546.00
14,432.00
30,244.00
32,421.00 -
34,463.00
22,874.00
34,774.00
34,774.00
633.00
2,353.00
311.00
This document forms part of Armidale Dumaresq Council's Quarterly Budget Review Statement for the quarter ended 30th December 2013 and should be read in conjunction with the other documents in
the Quarterly Budget Review Statement.
It can be seen from the above that Council currently has 311k of uncommitted cash. This figure
will improve over the year as water and sewer funds expend more of their budgets. At present
Armidale Dumaresq Council
Page 45
these funds have generated a large proportion of their income but have spent only half of their
expenditure resulting in larger restrictions.
Council needs to rebuild its cash level and unrestricted cash remains too low.
(000’s)
Unrestricted
Internal Restrictions
External Restrictions
2013
633
6172
16069
22874
2012
2457
6561
11670
20688
2011
745
6785
13262
20792
2010
458
5683
11443
17584
2009
1222
5726
7890
14838
2008
364
3206
11268
14838
The internal restrictions are at Council’s discretion; however, due to limited available cash at
bank the internal restrictions have been underfunded or reduced.
As previously presented, Council continually needs the interest from reserves to fund
operations. Council should, at a minimum, be running an operating cash surplus equivalent to
the amount of interest income received per annum.
Armidale Dumaresq Council
Page 46
Responsible Accounting Officer’s Statement
Reconciliations
Subsidiary Accounting Ledgers have been reconciled to the General Ledger as at the end of each
month.
Investments
As at the end of December the year to date cash and investments has been reconciled with the
funds invested in accordance with the adopted Investments Policy and the Minister’s
Investment Order.
Cash
Council’s working fund bank accounts have been reconciled and recorded in the register as per
table:
Period Ending
Date Reconciled and Signed off
October
3rd December
November
11th December
December
15th January
Financial Position
In accordance with section 203 (2) of the Local Government (General) Regulation 2005, it is my
opinion that the Quarterly Budget Review Statement for Armidale Dumaresq Council for the
quarter ended 30 December 2013 indicates that Council’s projected financial position at 30 June
2014 will be satisfactory, having regard to the projected estimated of income and expenditure
and the original budgeted income and expenditure and recognising Council’s decision at the first
quarter review.
Armidale Dumaresq Council
Page 47
Financial Implications:
2012-2015 Financial Plan Strategic Action
Council needs to be vigilant in its commitment to maintaining a budget surplus and improve the
asset renewal rate and needs to consider the long term implications of current decisions and
continue to run operating deficits by over-committing.
Council’s future budgets need to have sufficient working funds of at least 2% of total turnover in
order to absorb small variations to budget. To achieve this figure this year, Council should be
aiming for a surplus budget of 850k.
The following financial targets are part of Council’s IP&R Resourcing Plans:
Financial Component
Target
Unrestricted Working Funds
A minimum unrestricted working funds balance of 5% of the
unrestricted revenues in the same financial year.
Employee Leave Entitlements
Council’s target cash reserve provision is 20%, however, given
the current size of the liability and the employee profiles, the
potential for large payments on termination or resignation of
employees over the next five (5) to ten (10) years will require
Council to increase its liability provision from the current 22%
to 40% incrementally.
Investments Funds
Restrict suitable level of funds for identified future works or
projects. Funds from the sales of assets, surplus equipment
or functions with funded depreciation from operating income
are directed into an asset management reserve that is to be
utilised as part of Council’s asset management strategy
programs.
External Borrowings
Council limits debt repayments as a percentage of income to
between 0 and 10% of own source revenue.
Operating Budget
Council’s operating budget aims to achieve a surplus of 2% on
both a consolidated and business unit level, to maintain an
adequate level of working capital and to fund asset
replacements or renewals. From any operating surplus
Council’s goal is to hold 5% cash from total recurrent sources
of revenue as unrestricted funds.
Armidale Dumaresq Council
Page 48
Environmental Implications:
Not applicable.
Policy Issues:
No Policies were presented in this report.
Integrated Planning and Reporting Issues:
Not applicable.
Social Implications:
Not applicable.
Risk Management Issues:
Not applicable.
Legal Issues:
Nil.
RECOMMENDATION:
(a)
That the Second Quarter Budget Review for the 2013/2014 financial year as required by
the Local Government General Regulation 2005 be adopted.
(b)
That Council approve $527,000 in Budget Changes.
Function
Community Services
Decrease in Income
Grant brought forward for Recreation access of 21k less duplicated
grant for Aged and disabled of 55k.
Net Change to
Budget
$34,000
Water
Decrease in Expenditure
Removal of water contribution to general fund
$234,000
Sewer
Decrease in Expenditure
Removal of sewer contribution to general fund
$259,000
Net Change in Cash Result From Revised 1st to 2nd Quarter
$527,000