Addendum Agenda of Ordinary Meeting

COUNCIL

ADDENDUM

AGENDA

Ordinary Council Meeting

25 October 2017

FRANCIS GREENWAY CENTRE

170 GEORGE STREET LIVERPOOL

FRANCIS GREENWAY CENTRE

170 GEORGE STREET LIVERPOOL

423

Ordinary Meeting 25 October 2017

City Corporate Report

CFO 03

Updated Report: Annual Financial Statements 2016-17

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	291291.2017
Report By	Earl Paradeza - Senior Management Accountant
Approved By	Vishwa Nadan - Acting Director City Corporate

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 2017), and to the community.

Council’s financial statements for the year ended 30 June 2017 have been prepared and audited. The financial statements were presented to the Audit, Risk and Improvement Committee Meeting on Friday 20 October 2017. The ARIC noted Audit Office NSW’s intention to issue an unmodified audit opinion and endorsed the financial statements.

RECOMMENDATION

That Council:

1. Receives and endorses the 2016-17 audited financial statements;

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

3. Forwards 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 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. Notes 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 2017 have been prepared and audited. The financial statements were presented to the Audit, Risk and Improvement Committee Meeting on Friday Monday 20 October 2017. The ARIC noted Audit Office NSW’s intention to issue an unmodified audit opinion and endorsed the financial statements.

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 complete set of draft general purpose financial statements are provided in Attachment 2.

Key highlights are as follows:

· Council’s net operating result for the year before capital grants and contributions was a deficit of $2.1 million. Significant non-recurring items contributing to this result included:

+$4.5 advance receipt of 2017-18 financial assistance grant

- $5.6m write-down for road surface removed as part of renewal programme

- $4m provision for hazardous waste remediation

- $3.5m LSA contract fees

- $2.4m Fair value decrement on road reserves

- $1.4m impairment on operational land

- $0.9m 2016 Council election expenses

· The Operating Performance Ratio at 2.4% was a significant improvement over past 3 years.

· Rates and annual charges comprised $118.9 million (42 per cent) of the total income from continuing operations.

· Infrastructure Backlog reduced from $57.6 million to $54.2 million.

· Capital expenditure $64 million, excluding revaluation increments ($62.9 m) and dedicated assets of ($54.5m).

To fulfil the legislative requirements, the Chief Executive Officer will issue a public notice (provided as Attachment 3) which will include a summary of financial results and put the audited financial statements on public exhibition for 7 days.

The financial statements and a summary of public submissions received will be presented to Council at its next meeting for consideration and adoption, and if necessary, will include the process required to amend the financial statements.

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.
Legislative	Division 2 of the Local Government Act 1993.