At the September Council Meeting this week (27/09), Councillors gave in principle approval of the Annual Financial Repot and Performance Statement for the 2021/22 financial year.
Council has recorded an operating surplus of $4.5 million for the 2021/22 financial year and a $6.6 million variance on budget resulting from two main items;
- Timing of capital grants mainly for Major Projects ($9.5 million)
- Costs for materials and services ($1.5 million)
Council's total income was $36.9 million as compared to a budget of $40.8 million and $30.2 million in 2020/21. This reflects the timing of capital grants and the recognition of that revenue, there were also additional operating grants of $1.7 million. Rates and waste charges contribute 43% of total revenue.
Council cash and investments was $20.5 million at 30 June 2022, reflecting cash for Capital Grants have been received, with these projects underway. This will continue to be recognised in the 2022/23 financial result as projects are delivered.
The value of property, infrastructure, plant and equipment increased from $308.7 million to $354.6 million as a result of Asset Revaluations of $41.2 million, capital expenditure of $10.7 million and depreciation of $6.4 million.
Council's total expenditure for the 2021/22 year was $32.4 million compared to $31.8 million in 2020/21. A major driver in increased costs was additional materials and services which increased by $0.6 million, both through additional grants to fund spending and some cost increases.
During the year Council completed $10.7 million of capital works and continues the growth in delivery over a number of years with $7.1 million in 2020/21 and $6.5 million in 2019/20 of capital works projects. Road and related infrastructure accounted for 36% of the capital spend.
Central Goldfields Shire Maryborough Ward Councillor and member of Council's Independent Audit and Risk Committee Geoff Lovett said Council's end of year result compared to last year and budget varies each year due to the number and timing of capital grants.
"Our capital works program continues to grow supported by capital grants for which we are very grateful. Many of the projects funded in 2021/22 are currently underway and will be complete in the current financial year."
The financial reports for financial year ended 30 June 2022 have been prepared in line with Australian Accounting Standards and the Local Government Act (2020).
Council is required to review the statements and pass a resolution giving in-principle approval and nominating two Councillors to sign the statements – before the reports are submitted to the Victorian Auditor-General.
Council resolved to authorise Cr Chris Meddows-Taylor and Cr Geoff Lovett to certify the Financial and Performance Statements in their final form on behalf of Council.
