Agenda of Extraordinary Meeting

Extraordinary Meeting 26 October 2016

Chief Financial Officer

CFO 01

Annual General Purpose Financial Statements 2015/16

Strategic Direction	Leading Proactive Council Provide business excellence and financial sustainability to deliver services that meet community expectations
Key Policy	Long-Term Financial Plan
File Ref	284231.2016
Report By	Vishwa Nadan - Manager Financial Services
Approved By	Gary Grantham - Chief Financial Officer / Director Corporate Services

Executive Summary

The Council has a regulatory obligation to prepare and present audited financial statements to the Office of Local Government (due on or before 31^th October 2016), and to the community.

Council at its meeting on 12 October 2016 resolved to hold an Extraordinary Meeting on Wednesday 26 October 2016 for management to present its audited financial statements, together with the auditor’s reports. This Extraordinary Meeting was requested to enable the Audit Office of New South Wales to complete their audit and provide their final report.

Council’s general purpose financial statements for the year ended 30 June 2016 have been prepared and audited. The general purpose financial statements were presented to the Audit and Risk Committee Meeting on Monday 24 October, 2016, and the Audit and Risk Committee accepted the Audit Office of New South Wales unmodified opinion.

RECOMMENDATION

That Council:

1. Receives and endorses the 2015/16 audited financial reports;

2. Authorises the Mayor, Deputy Mayor, Acting Chief Executive Officer and the Responsible Accounting Officer (CFO) to sign the prescribed statement that will form part of the financial reports;

3. Forward a copy of the financial reports together with the auditor’s report to the Office of Local Government in accordance with Section 417(5) of the Local Government Act 1993.

4. Authorises the Acting Chief Executive Officer to issue a public notice containing a summary of financial results and put the financial statements on exhibition for 7 days to seek public submissions; and

5. Note that the financial statements and a summary of public submissions received will be presented to Council at its next meeting for consideration and adoption.

REPORT

Legislative Requirements

The Local Government Act 1993 states:

· As soon as practicable after a council receives a copy of the auditors reports:

a. It must fix a date for the meeting at which it proposes to present its audited financial reports, together with the auditors reports, to the public, and

b. It must give public notice of the date so fixed [Section 418 (1)]

· The date fixed for the meeting must be at least 7 days after the date on which the notice is given, but not more than 5 weeks after the auditor’s reports are given to the council. [Section 418 (2)]

Council’s draft general purpose financial statements for the year ended 30 June 2016 have been prepared and audited. The draft general purpose financial statements were presented to the Audit and Risk Committee Meeting on Monday 24 October, 2016, and the Audit and Risk Committee accepted the Audit Office of New South Wales unmodified opinion.

This paper seeks Council’s endorsement and a resolution authorising issue of the financial statements. Council’s auditors, Audit Office of New South Wales, have audited the financial statements and will issue an unmodified audit certificate after receiving a signed “statement by Councillors and Management” (provided as Attachment 1) following this Council meeting.

A report on the conduct of audit is provided in Attachment 2.

A complete set of draft general purpose financial statements are provided in Attachment 3.

Key highlights are as follows:

· Council’s operating result from continuing operations was a surplus of $156.6 million.

· Council’s net operating result for the year before capital grants and contributions was a surplus of $0.344 million.

· Depreciation was $33.9 million.

· Infrastructure Backlog reduced from $60.0 million to $57.6 million.

· Capital expenditure $90.9 million (excluding revaluations and dedicated assets of $107.1 million)

· Rates and annual charges comprised $113.0 million (34 per cent) of the total income from continuing operations.

· $9.1 million Financial Assistance Grant (FAG) received during the year.

· Significant non-recurring items of $4.7 million loss relating to the transfer of control and care of Crown Land, and a $9.4 million fair value increase relating to Councils investment property.

· Fit for the Future operating result $4.3 million deficit.

· Asbestos remediation costs $9.4 million.

To fulfil the legislative requirements, the Acting Chief Executive Officer will issue a public notice (provided as Attachment 4) which will include a summary of financial results and put the audited financial statements on public exhibition for 7 days. A summary of public submissions, if any, will be presented to the Council at its next meeting for consideration and adoption of 2015/16 financial reports.

CONSIDERATIONS

Economic and Financial	The financial implications are contained and presented within the report.
Environmental and Sustainability	There are no environmental and sustainability considerations.
Social and Cultural	There are no social and cultural considerations.
Civic Leadership and Governance	There are no civic leadership and governance considerations.