Administration and Finance Committee Meeting

 

  BUSINESS PAPER

 

 

 

 

 

 

 

 

 

 

 

Tuesday 11 August 2009

 

 

 

 

 

 

 

 

 

Administrative Centre 30 Frances Street Randwick 2031

Telephone: 02 9399 0999 or

1300 722 542 (for Sydney metropolitan area)

Fax:02 9319 1510

general.manager@randwick.nsw.gov.au

www.randwick.nsw.gov.au


 

 

 

 

 

 

 

 

 

 

 

 


Administration and Finance Committee

11 August 2009

 

 

 

 

 

 

 

 

 

 

 

Administration and Finance Committee Meeting

 

Notice is hereby given that a Administration and Finance Committee Meeting of the Council of the City of Randwick will be held in the Council Chamber, Town Hall, 90 Avoca Street, Randwick, on Tuesday, 11 August 2009 at 6:00pm.

 

 

Committee Members:           The Mayor, B Notley-Smith, Andrews, Belleli, Bowen, Hughes (Chairperson), Matson, Matthews, Nash (Deputy Chairperson), Procopiadis, Seng, Smith, Stevenson, Tracey, White and Woodsmith.

 

Quorum:                           Eight (8) members.

 

NOTE:    At the Extraordinary Meeting held on 28 September 2004, the Council resolved that the Administration and Finance Committee be constituted as a committee with full delegation to determine matters on the agenda.

 

Apologies/Granting of Leave of Absences 

 

Confirmation of the Minutes  

Administration and Finance Committee Meeting - 14 July 2009

 

Declarations of Pecuniary and Non-Pecuniary Interests

 

Address of Committee by Members of the Public

 

Urgent Business

 

Administration Reports

Nil

 

Finance Reports

F16/09      2008-09 Financial Result (Unaudited) and Carry Overs

F17/09      Contingency Fund - status as at 31 July 2009  

 

Closed Session

Nil

 

Notices of Rescission Motions

Nil

 

…………………………………………………….

Ray Brownlee

General Manager

 


Administration and Finance Committee

11 August 2009

 

 

 

Finance Report No. F16/09

 

 

Subject:                  2008-09 Financial Result (Unaudited) and Carry Overs

Folder No:                   F2008/00087

Author:                   Caroline Foley, Manager Corporate & Financial Planning     

 

Introduction

 

Section 203 (1) of Local Government (General) Regulation 2005 requires that at the end of each quarter, a Budget Review Statement be prepared and submitted to Council that indicates the latest estimates of income and expenditure for the 2008-09 financial year.

 

The regulation (Section 203 (2)) also requires that the budget review statement must include, or be accompanied by:

 

I.        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

II.       If that position is unsatisfactory, recommendations for remedial action.

 

Issues

 

This report provides the unaudited financial result and financial position of the Council as at 30 June 2009 in addition to recommendations to carry over funds to 2009-10 for certain projects. This report has been referred to the Administration and Finance Committee due to its capacity to move into a Committee-of-the-Whole and all Councillors are members of this Committee.

 

Attachment 1 summarises the Council’s Financial Performance and its Source and Application of Funds. It also summarises the operating result for each of the Council’s principal activities. Attachment 2 details the financial position of the Council as at 30 June 2009.

 

The attached Financial Reports for 2008-09 are unaudited and year end adjustments may still be required. On completion of the audit copies of the Financial Reports including the audit report will be circulated to Councillors. The audited financial reports will be presented at the Council meeting to be held on 22 September 2009.

 

Funds allocated for programs across the four divisions have been spent in accordance with the approved budget.

 

The anticipated surplus prior to audit and further adjustments is currently $298,001. It is recommended the surplus funds remaining following the completion of the 2008-09 Audit be transferred to the Information Technology Reserve for the future review of the Council’s Corporate Systems.

 

The Council currently holds $4.414 million in bonds, deposits and retentions of which $3.099 million is considered non-current (not expected to be returned within the next 12 months). $433,694 has been withdrawn from the Bonds and Deposits reserve, retaining the balance of the reserve to 100% of the non-current liability.

 

The Council’s Employee Leave Entitlements liability as at 30 June 2009 is $11.476 million of which $4.572 million is held in reserve. Movements to and from the reserve equated to an additional $587,812 transferred to the reserve at the end of the year. The reserve currently represents 39.84% of the liability. Council’s 2008-2012 Strategic Human Resources Plan has identified a target reserve of 42% of Council’s ELE liability to be funded. It should be noted that within Local Government it is considered than an amount of 27% of Council’s ELE liability should be held in reserve.

 

It is proposed to carry over funds to the new financial year 2009-10, due to the following reasons:

 

·      Projects had already commenced and expenditure was committed

·      Projects were incomplete as at 30 June 2009

·      Grant funding has been received for projects spanning a timeframe beyond 30 June 2009

·      The funds were voted towards the latter part of the 2008-09 financial year, and the project had not yet commenced.

 

A list of all proposed carryovers is listed in Attachment 3 and includes the following major projects:

 

$796,710        First instalment of the 2009-10 Financial Assistance Grant –  

paid in June 2009 – works scheduled in 2009-10 budget

 

$561,695         Information Technology Projects – IT Reserve funded

 

$980,079         Ecological Footprint Program – grant funded

 

$470,684         Solar Panels - Environment Levy program

 

$844,690         Clovelly Bay Coastal Walkway and Carpark

              

$302,724         La Perouse Loop Road

 

$769,952        Heffron Park Master Plan

 

$452,000         DRAC Filtration System – grant funded

 

$1,891,810      Randwick Library refurbishment

 

$500,000         Minneapolis Crescent Affordable Housing project

 

$304,824         Bushland projects - grant funded

 

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome 1:       Leadership in Sustainability.

Direction 1c:      Long term financial viability is achieved.

 

Financial impact statement

 

There is no direct financial impact for this matter. The organisation has provided sound financial management during the 2008-09 financial year. A Long Term Financial Plan has been adopted, Monthly Financial Reporting established and a comprehensive Budgeting and Executive Information System maintained.

Conclusion

 

Council is in a strong and stable financial position. The Director Governance & Financial Services, as the responsible accounting officer, advises that the projected financial position is satisfactory.

 

 

Recommendation

 

That, as a Committee-of-the-Whole:

 

a)  the unaudited financial position as at 30 June 2009 and 2008-09 surplus of $298,001 be noted.

 

b)  the surplus, following completion of the Financial Reports, be transferred to the Information Technology Reserve.

 

c)  The Carryovers be adopted as per Attachment 3.

 

 

Attachment/s:

 

1.View

Income Statements and Source & Application of Funds for the year ended 30 June 2009

 

 

2.View

Balance Sheet as at 30 June 2009

 

 

3.View

Schedule of 2008-09 Carry Overs

 

 

 

 

 


Income Statements and Source & Application of Funds for the year ended 30 June 2009

Attachment 1

 

 





 


Balance Sheet as at 30 June 2009

Attachment 2

 

 

 


Schedule of 2008-09 Carry Overs

Attachment 3

 

 

















 


Administration and Finance Committee

11 August 2009

 

 

 

Finance Report No. F17/09

 

 

Subject:                  Contingency Fund - status as at 31 July 2009

Folder No:                   F2004/07396

Author:                   Julie Hartshorn, Senior Administrative Coordinator     

 

Introduction

 

The purpose of this report is to detail the progressive amount of donations, allocations, waiving of fees and other similar contributions for the 2009-10 financial year.

 

In the 2009-10 financial year there have been 4 allocations totalling $12,316.80 as listed in the table below.

 

Meeting

Details

Net cost to Council

Ordinary Council – 26 Sept 2006

Annual contribution  (7 years from 2006/07)

Interest foregone on interest free loan - Coogee Surf Life Saving Club renovations

 

$4,500.00

Ordinary Council –

28 April 2009

Financial assistance – Randwick Boys and Girls High Schools – 2009 Rock Eisteddfod

 

$3,000.00

Ordinary Council –

26 May 2009

Waiving of fees – South Maroubra Village Green Art Show

 

$250.00

Ordinary Council –

26 May 2009

Waiving of fees – Maroubra Fun Run and Oktoberfest

 

$4,566.80

TOTAL:

 

$12,316.80

 

The amounts shown in the table above reflect the net cost to Council in providing the donation, grant or assistance.  The GST, where applicable, has not been shown because it will be claimed back from the Australian Taxation Office.

 

Annual contributions to the Guriwal Aboriginal Community (for waiving of green waste disposal fees); Ronald McDonald House (for waiving of fees for special rubbish pick up service); and Sydney Body Art Ride (annual contribution to charity event) will be funded under the new grant framework for administering Contingency Funds (Cultural Community Grants).

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome 2:           A vibrant and diverse community.

Our community will be proud to be part of our City and celebrate its range of cultures and people.

Direction 2b:         Enrich our range of community services that meet our community’s needs.

Key Actions:         Support the provision of services and facilities to meet the needs of our Target Groups and celebrate the range of cultures and people within Randwick City.

 


Financial impact statement

 

Council has allocated $140,000 in the 2009-10 budget for contingencies.  

 

 

Recommendation

 

That the report be received and noted.

 

 

Attachment/s:

 

Nil