What is a “Conflict of Interests” - A conflict of
interests can be of two types:
Pecuniary - an interest that a person has in a matter because of a reasonable
likelihood or expectation of appreciable financial gain or loss to the person
or another person with whom the person is associated.
Non-pecuniary – a private or personal interest that a Council
official has that does not amount to a pecuniary interest as defined in the
Code of Conduct for Councillors (eg. A friendship, membership of an
association, society or trade union or involvement or interest in an activity
and may include an interest of a financial nature).
Remoteness – a person does not have a pecuniary interest in a matter
if the interest is so remote or insignificant that it could not reasonably be
regarded as likely to influence any decision the person might make in relation
to a matter or if the interest is of a kind specified in the Code of Conduct
for Councillors.
Who has a Pecuniary Interest? - a person has a pecuniary interest in a
matter if the pecuniary interest is the interest of the person, or another
person with whom the person is associated (see below).
Relatives, Partners - a person is taken to have a pecuniary
interest in a matter if:
·
The
person’s spouse or de facto partner or a relative of the person has a
pecuniary interest in the matter, or
·
The
person, or a nominee, partners or employer of the person, is a member of a
company or other body that has a pecuniary interest in the matter.
N.B. “Relative”, in relation to a person means any of the
following:
(a) the parent,
grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descends or
adopted child of the person or of the person’s spouse;
(b) the spouse
or de facto partners of the person or of a person referred to in paragraph (a)
No Interest in the Matter - however, a person is not taken to have a
pecuniary interest in a matter:
·
If
the person is unaware of the relevant pecuniary interest of the spouse, de
facto partner, relative or company or other body, or
·
Just
because the person is a member of, or is employed by, the Council.
·
Just
because the person is a member of, or a delegate of the Council to, a company
or other body that has a pecuniary interest in the matter provided that the
person has no beneficial interest in any shares of the company or body.
Disclosure and participation in meetings
·
A
Councillor or a member of a Council Committee who has a pecuniary interest in
any matter with which the Council is concerned and who is present at a meeting
of the Council or Committee at which the matter is being considered must
disclose the nature of the interest to the meeting as soon as practicable.
·
The
Councillor or member must not be present at, or in sight of, the meeting of the
Council or Committee:
(a) at
any time during which the matter is being considered or discussed by the
Council or Committee, or
(b) at
any time during which the Council or Committee is voting on any question in
relation to the matter.
No Knowledge - a person does not breach this Clause if the person did
not know and could not reasonably be expected to have known that the matter
under consideration at the meeting was a matter in which he or she had a
pecuniary interest.
Non-pecuniary Interests - Must be disclosed in meetings.
There are a broad range of options available for managing conflicts &
the option chosen will depend on an assessment of the circumstances of the
matter, the nature of the interest and the significance of the issue being
dealt with. Non-pecuniary conflicts of interests must be dealt with in at
least one of the following ways:
·
It
may be appropriate that no action be taken where the potential for conflict is
minimal. However, Councillors should consider providing an explanation of
why they consider a conflict does not exist.
·
Limit
involvement if practical (eg. Participate in discussion but not in decision
making or vice-versa). Care needs to be taken when exercising this
option.
·
Remove
the source of the conflict (eg. Relinquishing or divesting the personal
interest that creates the conflict)
·
Have
no involvement by absenting yourself from and not taking part in any debate or
voting on the issue as of the provisions in the Code of Conduct (particularly
if you have a significant non-pecuniary interest)
Committee members are reminded that they should declare and manage all
conflicts of interest in respect of any matter on this Agenda, in accordance
with the Code of Conduct.
RECORDING OF VOTING ON PLANNING MATTERS
Clause 375A of the Local Government Act
1993 – Recording of voting on planning matters
(1) In this section, planning
decision means a decision made in the exercise of a function of a council
under the Environmental Planning and Assessment Act 1979:
(a) including a decision relating to a development
application, an environmental planning instrument, a development control plan
or a development contribution plan under that Act, but
(b) not including the making of an order under that Act.
(2) The general manager is required to keep a register
containing, for each planning decision made at a meeting of the council or a
council committee, the names of the councillors who supported the decision and
the names of any councillors who opposed (or are taken to have opposed) the
decision.
(3) For the purpose of maintaining the register, a division
is required to be called whenever a motion for a planning decision is put at a
meeting of the council or a council committee.
(4) Each decision recorded in the register is to be described
in the register or identified in a manner that enables the description to be
obtained from another publicly available document and is to include the
information required by the regulations.
(5) This section extends to a meeting that is closed to the
public.
OATH AND AFFIRMATION FOR COUNCILLORS
Councillors are
reminded of the oath of office or affirmation of office made at or before their
first meeting of the council in accordance with Clause 233A of the Local
Government Act 1993. This includes undertaking the duties of the office of
councillor in the best interests of the people of Byron Shire and the Byron
Shire Council and faithfully and impartially carrying out the functions,
powers, authorities and discretions vested under the Act or any other Act
to the best of one’s ability and judgment.
Staff Reports - Corporate and Community Services 4.1
Staff Reports - Corporate and Community
Services
Report No. 4.1 Budget
Review - 1 July 2022 to 30 September 2022
Directorate: Corporate
and Community Services
Report Author: James
Brickley, Manager Finance
File No: I2022/1648
Summary:
This report has been prepared to comply with Section 203 of
the Local Government (General) Regulation 2021 and to inform Council and
the Community of Council’s estimated financial position for the 2022/2023
financial year, reviewed as at 30 September 2022.
This report contains an overview of the proposed budget
variations for the General Fund, Water Fund and Sewerage Fund. The
specific details of these proposed variations are included in Attachment 1 and
2 for Council’s consideration and authorisation.
Attachment 3 contains the Integrated Planning and Reporting
Framework (IP&R) Quarterly Budget Review Statement (QBRS) as outlined by
the Office of Local Government in circular 10-32.
RECOMMENDATION:
1. That
Council authorises the itemised budget variations as shown in Attachment 2
(#E2022/109971) which include the following results in the 30 September 2022
Quarterly Review of the 2022/2023 Budget:
a) General
Fund – $0 movement to the Estimated Unrestricted Cash Result
b) General
Fund - $3,005,900 decrease in reserves
c) Water
Fund - $1,536,100 decrease in reserves
d) Sewerage
Fund - $278,600 decrease in reserves
2. That
Council adopts the revised General Fund Estimated Unrestricted Cash Result of
($207,000) for the 2022/2023 financial year as at 30 September 2022
Attachments:
1 Budget
Variations for General, Water and Sewerage Funds, E2022/109970 , page 26⇩ 
2 Itemised
Listing of Budget Variations for General, Water and Sewerage Funds, E2022/109971 ,
page 90⇩
3 Integrated
Planning and Reporting Framework (IP&R) required Quarterly Review
Statements, E2022/109972 , page 95⇩ 
Report
Council adopted the 2022/2023 budget on 30 June 2022 via
Resolution 22-332. Council also considered and adopted the budget
carryovers from the 2021/2022 financial year, to be incorporated into the
2022/2023 budget at its Ordinary Meeting held on 25 August 2022 via Resolution 22-391.
Since that date, Council has reviewed the budget taking into consideration the
unaudited 2021/2022 Financial Statement results and progress through the first
quarter of the 2022/2023 financial year. This report considers the
September 2022 Quarter Budget Review.
The details of the budget review for the Consolidated,
General, Water and Sewer Funds are included in Attachment 1, with an itemised
listing in Attachment 2. This aims to show the consolidated budget
position of Council, as well as a breakdown by Fund and Principal Activity. The
document in Attachment 1 is also effectively a publication outlining a review
of the budget and is intended to provide Councillors with more detailed
information to assist with decision making regarding Council’s finances.
Contained in the document at Attachment 1 is the following
reporting hierarchy:
Consolidated Budget
Cash Result
General Fund Cash
Result Water Fund Cash Result Sewer
Cash Result
Principal Activity Principal
Activity Principal
Activity
Operating Income Operating
Expenditure Capital income Capital
Expenditure
The pages within Attachment 1 are presented (from left to
right) by showing the original budget as adopted by Council on 30 June 2022
plus the adopted carryover budgets from 2021/2022 followed by the resolutions
between July and September and the revote (or adjustment for this review) and
then the revised position projected for 30 June 2023 as at 30 September 2022.
On the far right of the Principal Activity, there is a
column titled “Note”. If this is populated by a number, it
means that there has been an adjustment in the quarterly review. This
number then corresponds to the notes at the end of the Attachment 1 which
provides an explanation of the variation.
There is also information detailing restricted assets
(reserves) to show Council’s estimated balances as at 30 June 2023 for
all Council’s reserves.
A summary of Capital Works is also included by Fund and
Principal Activity.
Office of Local Government Budget Review Guidelines:
The Office of Local Government on 10 December 2010 issued
the new Quarterly Budget Review Guidelines via Circular 10-32, with the
reporting requirements to apply from 1 July 2011. This report includes a
Quarterly Budget Review Statement (refer Attachment 3) prepared by Council in
accordance with the guidelines.
The Quarterly Budget Review Guidelines set a minimum
standard of disclosure, with these standards being included in the Local
Government Code of Accounting Practice and Financial Reporting as mandatory
requirements for Councils to address.
Since the introduction of the new planning and reporting
framework for NSW Local Government, it is now a requirement for Councils to
provide the following components when submitting a Quarterly Budget Review
Statement (QBRS):
· A
signed statement by the Responsible Accounting Officer on Council’s
financial position at the end of the year based on the information in the QBRS
· Budget
review income and expenses statement in one of the following formats:
o Consolidated
o By
fund (e.g. General, Water, Sewer)
o By
function, activity, program etc. to align with the management plan/operational
plan
· Budget
Review Capital Budget
· Budget
Review Cash and Investments Position
· Budget
Review Key performance indicators
· Budget
Review Contracts and Other Expenses
The above components are included in Attachment 3 and
outlined below:
Income and Expenditure Budget Review Statement by Type
This shows Council’s income and Expenditure by
type. This has been split by Fund. Adjustments are shown, looking
from left to right. These adjustments are commented on through the last
13 pages of Attachment 1.
Capital Budget Review Statement
This statement identifies in summary Council’s capital
works program on a consolidated basis and then split by Fund. It also
identifies how the capital works program is funded. As this is the first
quarterly review for the reporting period, the Statement may not necessarily
indicate the total progress achieved on the delivery of the capital works
program.
Cash and Investments Budget Review Statement
This statement reconciles Council’s restricted funds
(reserves) against available cash and investments. Council has attempted
to indicate an actual position as at 30 September 2022 of each reserve to show
a total cash position of reserves with any difference between that position and
total cash and investments held as available cash and investments. It
should be recognised that the figure is at a point in time and may vary greatly
in future quarterly reviews pending on cash flow movements.
Key Performance Indicators (KPI’s)
At this stage, the KPI’s within this report are:
o Debt
Service Ratio - This assesses the impact of loan principal and interest
repayments on the discretionary revenue of Council.
o Rates
and Annual Charges Outstanding Ratio – This assesses the impact of
uncollected rates and annual charges on Councils liquidity and the adequacy of
recovery efforts
o Asset
Renewals Ratio – This assesses the rate at which assets are being
renewed relative to the rate at which they are depreciating.
These may be expanded in future to accommodate any
additional KPIs that Council may adopt to use in the future.
Contracts and Other Expenses - This report highlights any
contracts Council entered into during the July to September quarter that are
greater than $50,000.
CONSOLIDATED RESULT
The following table provides
a summary of the overall Council budget on a consolidated basis inclusive of
all Funds’ budget movements for the 2022/2023 financial year projected to
30 June 2023 but revised as at 30 September 2022.
|
2022/2023 Budget Review Statement as at 30 September
2022
|
Original Estimate (Including Carryovers)
1/7/2022
|
Adjustments to 30 Sept 2022 including Resolutions*
|
Proposed 30 Sept 2022 Review Revotes
|
Revised Estimate 30/6/2023 at 30/9/2022
|
|
Operating Revenue
|
98,653,200
|
0
|
4,046,400
|
102,699,600
|
|
Operating Expenditure
|
111,603,900
|
2,517,000
|
3,318,100
|
117,439,000
|
|
Operating Result –
Surplus/Deficit
|
(12,950,700)
|
(2,517,000)
|
728,300
|
(14,739,400)
|
|
Add: Capital Revenue
|
37,235,900
|
0
|
(6,137,900)
|
31,098,000
|
|
Change in Net Assets
|
24,285,200
|
(2,517,000)
|
(5,409,600)
|
16,358,600
|
|
Add: Non Cash Expenses
|
18,455,700
|
0
|
2,033,900
|
20,489,600
|
|
Add: Non-Operating Funds
Employed
|
20,800,000
|
0
|
0
|
20,800,000
|
|
Subtract: Funds Deployed for
Non-Operating Purposes
|
(99,493,500)
|
40,000
|
(1,444,900)
|
(100,898,400)
|
|
Cash Surplus/(Deficit)
|
(35,952,600)
|
(2,477,000)
|
(4,820,600)
|
(43,250,200)
|
|
Restricted Funds –
Increase / (Decrease)
|
(35,747,600)
|
(2,475,000)
|
(4,820,600)
|
(43,043,200)
|
|
Forecast Result for the
Year – Surplus/(Deficit) – Unrestricted Cash Result
|
(205,000)
|
(2,000)
|
0
|
(207,000)
|
GENERAL FUND
In terms of the General Fund projected Unrestricted Cash
Result the following table provides a reconciliation of the estimated position
as at 30 September 2022:
|
Opening
Balance – 1 July 2022
|
$0
|
|
Plus
original budget movement and carryovers
|
(205,000)
|
|
Council
Resolutions July – September Quarter
|
(2,000)
|
|
Recommendations
within this Review – increase/(decrease)
|
0
|
|
Forecast
Unrestricted Cash Result – Surplus/(Deficit) – 30 June 2023
|
(207,000)
|
|
Estimated
Unrestricted Cash Result Closing Balance – 30 June 2023
|
($207,000)
|
The General Fund financial position overall has not moved as
a result of this budget review, leaving the forecast cash result for the year
at an estimated deficit of $207,000. The proposed budget changes are detailed
in Attachment 1 and summarised further in this report below.
Council Resolutions
Resolution 22-361 relating to the Plan of Management
for Bangalow Sportfields point 4 states ‘That council
support a workshop with Bowling Club stakeholders and a budget of up to $2,000
be made available to support this workshop’. This has been
added to the 2022/2023 Budget.
Council at the 27 October 2022 Ordinary Meeting considered
Notice of Motion 9.2 Drainage Capital Works Budget. Through Resolution, 22-586
part 5, Council resolved ‘Considers, through this year’s
September Budget Review, adding $300,000 to Drainage Capital Works and notes
this may have to come from other important activities. In compiling the
30 September 2022 Quarterly Budget Review, the estimated budget deficit
position has not been changed and at this stage the $300,000 allocation has not
been included due to funding and capacity but will be discussed with the
Finance Advisory Committee at their Meeting to be held on 17 November
2022. Pending those discussions, further advice by way of Memo will be
provided to Council before the 24 November 2022 Ordinary Meeting.
Council at the 29 September 2022 Ordinary Meeting Council
resolved in relation to parking at Brunswick Heads to ‘allocate $140,000
in the September quarterly budget review to fund an updated parking study
including expansion of the pay parking areas and assessment of current supply
and demand, time limits….’ Through resolution 22-534 part 1(a).
The report to Council did not identify a funding source but this item has been
included in the review with funding sourced from the Infrastructure Renewal
Reserve – Non Byron.
Budget Adjustments
The budget adjustments identified in Attachments 1 and 2 for
the General Fund have been summarised by Budget Directorate in the following
table:
|
Budget Directorate
|
Revenue
Increase/
(Decrease)
$
|
Expenditure
Increase/
(Decrease)
$
|
Accumulated
Surplus (Working Funds) Increase/ (Decrease) $
|
|
General Manager
|
0
|
0
|
0
|
|
Corporate & Community Services
|
37,000
|
43,300
|
(6,300)
|
|
Infrastructure Services
|
5,083,900
|
5,082,800
|
1,100
|
|
Sustainable Environment & Economy
|
490,800
|
485,600
|
5,200
|
|
Total Budget Movements
|
5,611,700
|
5,611,700
|
0
|
Budget Adjustment Comments
Within each of the Budget Directorates of the General Fund,
are a series of budget adjustments identified in detail at Attachment 1 and
2. More detailed notes on these are provided in Attachment 1 but in
summary the major additional items included are summarised below by Directorate
and are included in the overall budget adjustments table above. Across
the budget as a whole there has been a global review of anticipated
depreciation following completion of the 2021-2022 financial statements and
results from indexation/revaluation of assets. Overall across all assets,
depreciation expenses are estimated to increase by $2.033million to be
$20.508million for 2022/2023.
Corporate and Community Services
· In
the General Purpose Revenue program, it is proposed to increase income by
$13,300 as the final amount allocated to Council for the 2022/2023 Financial
Assistance Grant (FAG) is more than the budget.
· In
the Community Development program, it is proposed to decrease operating
expenditure due to a decrease in the New Years’ Eve (NYE) budget
($30,000), an increase to the budget for an Arts & Cultural Summit
($10,000) identified by resolution 22-010 and an increase to the Community
Initiative Program ($3,800).
Infrastructure Services
· In the Projects
and Commercial Development Program it is proposed to decrease the salaries
budget (3009.1) by $50,000 as a result of savings in staff costs due to
vacancies and redirect this to the Rail Corridor Activation (3012.6) associated
with Resolutions 22-409 and 22-412. Further during the 2021/2022 financial
year, Council sold part of lot 12 Bayshore Drive to the Sewerage Fund for
provision of an easement in the amount of $1,057,000. A reserve was created for
Property Development – Lot 12 Bayshore Drive but the funds were not
transferred to that reserve at year end. This had the effect of understating
the reserve balance established for the flood recovery to represent outstanding
funding due to Council not paid at financial year end. This budget adjustment
is restating that reserve to reflect more accurately what was outstanding and
to re-establish the Property Development Reserve for Lot 12 Bayshore Drive to
reflect the 2022/2023 Budget and account for the sale proceeds.
· In the Depot Services
program, it is proposed to increase capital expenditure by $2,576,500 as the
renewal of plant items has been reassessed as a result of the replacement
program review and plant needs to assist in the February/March 2022 flood
events recovery which has resulted in the need for additional plant items to be
purchased. It is also proposed to increase operating income as $53,500 has been
transferred from the Sewer Fund to reimburse the plant reserve that purchased
or upgraded sewer vehicles and expected income from the sale of plant
($156,300).
· In
the Local Roads and Drainage program, there are a number of adjustments
outlined under Note 9 on pages 52 to 57 in the Budget Variations explanations
section of Attachment 1. Further disclosure is included in the second and third
pages of Attachment 2 under the budget program heading Local Roads and
Drainage.
· In
the Transport for New South Wales program (TfNSW), it is proposed to increase
operating income by $3,400,000 due to income received for the February 2022
flood events, transferring this to the Flood Recovery reserve, and decrease
capital income and expenditure due works on regional roads that have been
allocated to the Repair Program (4813.006) and will be duplicated if the budget
remains.
· In
the Open Space and Recreation program, there are a number of adjustments outlined
under Note 11 on pages 57 and 58 in the Budget Variations explanations section
of Attachment 1. Further disclosure is included in the fourth page of
Attachment 2 under the budget program heading Open Space &
Recreation.
· In
the Cavanbah Centre program it is proposed to increase capital revenue and
expenditure by $20,000 due to a grant being approved for sheds at the Cavanbah
Centre $70,000 and a decrease for Stadium Cooling/Airflow $50,000 as this
project was previously completed and no longer required.
· In
the Suffolk Park Holiday Park program, it is proposed to increase operating
expenditure by $53,400 to enable additional project resourcing to facilitate
ongoing negotiations and liaison with dwelling owners to allow compliance and
encroachment matters to be resolved. This can be funded through the
Holiday park reserve.
· In
the Facilities Management program, it is proposed to increase operating
expenditure due a budget required for flood repair works at the Bangalow
Showgrounds that is funded from an unexpended grant ($45,000) and a budget
required to treat rust on the awning at the Council Chambers ($14,800).
It is also proposed to increase capital works for the Apex park Exeloos
($30,000) and decrease the budgets for the Middleton Street toilets ($28,200)
and Clarkes Beach public amenities ($55,400) as these have been completed.
Sustainable Environment and Economy
· In
the Planning Policy & Natural Environment program, it is proposed to
increase operating income and expenditure by $26,600 due to a grant received
for Koala VMS Signs ($15,400) and the second instalment for the Byron Arts
& Industrial Estate Pocket Park project ($11,200). Operating
expenditure increased by a further $97,000 due to Council paying back the
unexpended part of the Communities Combating Pests and Weeds grant ($45,200)
and allocating a budget for Short Term Rental Accommodation ($51,800).
· In
the Environment & Compliance program, it is proposed to increase operating
income due to an increase in actual income received for Notices and Orders.
· In
the Economic Development program, it is proposed to increase operating income
and expenditure due to a grant of $362,000 being approved through the
Reconnecting Regional NSW - Communities Community Events Program.
WATER FUND
After
completion of the 2021/2022 Financial Statements the Water Fund as at 30 June
2022 has a capital works reserve of $8,953,800 and held $1,844,900 in
section 64 developer contributions.
The estimated Water Fund reserve
balances as at 30 June 2023, and forecast in this Quarter Budget Review, are
derived as follows:
Capital Works Reserve
|
Opening Reserve Balance at 1
July 2021
|
$8,953,800
|
|
Plus original budget reserve
movement
|
(4,874,800)
|
|
Resolutions July - September
Quarter – increase / (decrease)
|
0
|
|
September Quarterly Review
Adjustments – increase / (decrease)
|
(1,036,100)
|
|
Forecast Reserve Movement for
2022/2023 – Increase / (Decrease)
|
(5,910,900)
|
|
Estimated Reserve Balance at 30
June 2023
|
$3,042,900
|
Section 64 Developer
Contributions
|
Opening Reserve Balance at 1
July 2022
|
$1,844,900
|
|
Plus original budget reserve
movement
|
(1,120,100)
|
|
Resolutions July - September
Quarter – increase / (decrease)
|
0
|
|
September Quarterly Review
Adjustments – increase / (decrease)
|
(500,000)
|
|
Forecast Reserve Movement for
2022/2023 – Increase / (Decrease)
|
(1,620,100)
|
|
Estimated Reserve Balance at 30
June 2023
|
$224,800
|
Movements for Water Fund can be seen in Attachment 1 with a
proposed estimated decrease to reserves (including S64 Contributions) overall
of $1,313,100 from the 30 September 2022 Quarter Budget Review.
SEWERAGE FUND
After completion of the 2021/2022
Financial Statements the Sewer Fund as at 30 June 2022 has a capital works
reserve of $2,701,600 and plant reserve of $896,200. It also held
$7,180,100 in section 64 developer contributions and a $766,900 unexpended
grant.
Capital Works Reserve
|
Opening Reserve Balance at 1
July 2022
|
$2,701,600
|
|
Plus original budget reserve
movement
|
(926,200)
|
|
Resolutions July - September
Quarter – increase / (decrease)
|
0
|
|
September Quarterly Review Adjustments
– increase / (decrease)
|
(653,600)
|
|
Forecast Reserve Movement for
2022/2023 – Increase / (Decrease)
|
(1,579,800)
|
|
Estimated Reserve Balance at 30
June 2023
|
$1,121,800
|
Plant Reserve
|
Opening Reserve Balance at 1
July 2022
|
$896,200
|
|
Plus original budget reserve
movement
|
0
|
|
Resolutions July - September
Quarter – increase / (decrease)
|
0
|
|
September Quarterly Review
Adjustments – increase / (decrease)
|
0
|
|
Forecast Reserve Movement for
2022/2023 – Increase / (Decrease)
|
0
|
|
Estimated Reserve Balance at 30
June 2023
|
$896,200
|
Section 64 Developer
Contributions
|
Opening Reserve Balance at 1
July 2021
|
$7,180,100
|
|
Plus original budget reserve
movement
|
(4,591,700)
|
|
Resolutions July - September
Quarter – increase / (decrease)
|
0
|
|
September Quarterly Review
Adjustments – increase / (decrease)
|
375,000
|
|
Forecast Reserve Movement for
2022/2023 – Increase / (Decrease)
|
(4,216,700)
|
|
Estimated Reserve Balance at 30
June 2023
|
$2,963,400
|
Movements for the Sewerage Fund can be seen in Attachment 1
with a proposed estimated overall decrease to reserves (including S64
Contributions) of $278,600 from the 30 September 2022 Quarter Budget Review.
Legal Expenses
One of the major financial concerns for Council over
previous years has been legal expenses. Not only does this item represent a
large expenditure item funded by general revenue, but can also be susceptible
to large fluctuations.
The table that follows indicates the allocated budget and
actual legal expenditure within Council on a fund basis as at 30 September
2022.
Total Legal Income & Expenditure as at 30 September
2022
|
Program
|
2022/2023
Budget ($)
|
Actual ($)
|
Percentage To
Revised Budget
|
|
Income
|
|
|
|
|
Legal Expenses Recovered
|
0
|
0
|
0%
|
|
Total Income
|
0
|
0
|
0%
|
|
|
|
|
|
|
Expenditure
|
|
|
|
|
General Legal Expenses
|
202,600
|
9,246
|
4.56%
|
|
Total Expenditure General Fund
|
202,600
|
9,246
|
4.56%
|
Note: At the time of writing this report in October,
Council has incurred additional expenditure that brings the total legal expenditure
for 2022/23 to $12,705. This should continue to be monitored to ensure
there is enough funding for future expenses.
Strategic Considerations
Community Strategic Plan and Operational Plan
|
CSP
Objective
|
CSP
Strategy
|
DP
Action
|
Code
|
OP
Activity
|
|
1: Effective Leadership
We have effective decision making and
community leadership that is open and informed
|
1.3: Ethical and efficient management of resources
|
1.3.1: Financial Management - Ensure the financial
integrity and sustainability of Council through effective financial
management
|
1.3.1.2
|
Provide Quarterly Budget Reviews to Council for adoption.
|
|
|
|
|
|
|
Legal/Statutory/Policy
Considerations
In accordance with Section 203 of
the Local Government (General) Regulation 2021 the Responsible Accounting
Officer of a Council must:
(1) Not
later than 2 months after the end of each quarter (except the June quarter),
the responsible accounting officer of a council must prepare and submit to the
council a budget review statement that shows, by reference to the estimate of
income and expenditure set out in the statement of the council’s revenue
policy included in the operational plan for the relevant year, a revised
estimate of the income and expenditure for that year.
(2) A
budget review statement must include or be accompanied by:
(a) a
report as to whether or not the responsible accounting officer believes that
the statement indicates that the financial position of the council is
satisfactory, having regard to the original estimate of income and expenditure,
and
(b) if
that position is unsatisfactory, recommendations for remedial action.
(3) A
budget review statement must also include any information required by the Code
to be included in such a statement.
Financial Considerations
The 30 September 2022 Quarter Budget Review of the 2022/2023
Budget has left the overall estimated budget result at zero. This leaves the
movement against the unrestricted cash balance attributable to the General Fund
to an estimated deficit of $207,000 for the year, leaving the estimated
unrestricted cash balance attributable to the General Fund at an estimated
$207,000 at 30 June 2023.
It is the view of the Responsible Accounting Officer that
the short term financial position of the Council is still satisfactory for the
2022/2023 financial year, having consideration of the original estimate of
income and expenditure at the 30 September 2022 Quarter Budget Review.
This opinion is based on the estimated General Fund
Unrestricted Cash Result position and that the current indicative budget
position for 2022/2023 outlined in this Budget Review is further improved
through the remaining quarterly budget reviews for the 2022/2023 financial
year. Council must remember it has a short term financial goal of maintaining
$1,000,000 in unrestricted cash.
The 2022/2023 budget estimates are at a stage where it is a
real issue for Council in terms of physical capacity to deliver works programs,
operational plan activities and the ongoing flood recovery. It is
suggested that Council look closely to the remainder of 2022/2023 and consider
what is likely to be achieved and start to remove from the budget and
operational plan, items that will not be delivered/completed.
Distributed
10/11/22
