Administration and Finance Committee Meeting

 

  BUSINESS PAPER

 

 

 

 

 

 

 

 

 

 

 

Tuesday 10 August 2010

 

 

 

 

 

 

 

 

 

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

10 August 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 10 August 2010 at 6:00pm.

 

Committee Members:           The Mayor, J Procopiadis, Andrews, Belleli (Deputy Chairperson), Bowen, Hughes, Matson, Matthews, Nash, Notley-Smith, Seng, Smith (Chairperson), 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 - 20 July 2010

 

Declarations of Pecuniary and Non-Pecuniary Interests

 

Address of Committee by Members of the Public

 

Urgent Business

Administration Reports

Nil

 

Finance Reports

F18/10      2009-10 Financial Result (Unaudited) and Proposed Budget Carry Overs

F19/10      Contingency Fund status as at 31 July 2010    

 

Notice of Rescission Motions

Nil

 

                                                             …………………………………………………….

Ray Brownlee

General Manager


Administration and Finance Committee

10 August 2010

 

 

 

Finance Report No. F18/10

 

Subject:                  2009-10 Financial Result (Unaudited) and Proposed Budget Carry Overs

Folder No:                   F2009/00340

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 2009-10 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 2010 in addition to recommendations to carry over funds to 2010-11 for certain projects.

 

Unaudited Financial Result

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 2010.

 

The attached Financial Reports for 2009-10 are unaudited and year end adjustments may still be required. An adjustment will be made to the value of the Council’s Revaluation Reserve (an Equity Account) and Infrastructure, Property, Plant and Equipment to reflect the revaluation of roads, drainage and footpath assets.

 

The draft Financial Statements will be reported to Council on 24 August 2010. On completion of the audit final copies of the Financial Statements including the audit report will be circulated to Councillors. The audited financial reports will be presented at the Council meeting to be held on 21 September 2010.

 

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 $18,500. It is recommended the surplus funds remaining following the completion of the 2009-10 Audit be transferred to the Infrastructure Reserve.

 


Bonds and Deposits

The Council currently holds $4.091 million in bonds, deposits and retentions of which $2.996 million is considered non-current (not expected to be returned within the next 12 months). $103,116 has been withdrawn from the Bonds and Deposits reserve, retaining the balance of the reserve to 100% of the non-current liability.

 

Employee Leave Entitlements

The Council’s Employee Leave Entitlements liability as at 30 June 2010 is $12.948 million of which $5.211 million is held in reserve. Movements to and from the reserve equated to an additional $721,991 transferred to the reserve at the end of the year. The reserve currently represents 40.2% of the liability. Council’s 2008-2012 Strategic Human Resources Plan has identified a target reserve of 43% of Council’s ELE liability to be funded. The Council continues to manage Employee Leave Entitlements through monitoring the age profile and leave balances of all staff.

 

Aeolia Street Carpark Reserve

The Council currently holds $715,000 in the Aeolia Street Carpark Reserve. This reserve arose from the sale of Lot 102 Aeolia Street Randwick to Brigidine College in 2002 and was set aside as a potential contribution towards the establishment of a public car park within a development proposed at the College. The public car park has now been constructed by the College and is operated on a commercial basis. The Council did not invest in the car park. As a result this reserve is no longer required.  As the funds were received as a result of the sale of property it is recommended the funds be transferred to the Property Development Reserve.

 

Parking Land Acquisition Reserve

The Council also holds $77,823 in the Parking Land Acquisition Reserve. These funds were accumulated over several years from contributions towards the acquisition of land for parking. However no contributions have been made to this fund in over twenty years and no future commitments have been identified for these funds. It is recommended this reserve be transferred to the Infrastructure Reserve.

 

Carry Over of Unspent Funds

It is proposed to carry over funds to the new financial year 2010-11, due to the following reasons:

 

·      Projects had already commenced and expenditure was committed

·      Projects were incomplete as at 30 June 2010

·      Grant funding has been received for projects spanning a timeframe beyond 30 June 2010

·      The funds were voted towards the latter part of the 2009-10 financial year, and the project had not yet commenced

·      Funding for the project is to be raised over two years.

 

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

 

$839,336        First instalment of the 2010-11 Financial Assistance Grant –

paid in June 2010 – works scheduled in 2010-11 budget

 

$2,832,674      Information Technology Projects

 

$939,240         Ecological Footprint Grant Funded Project

 

$1,326,996      Coastal Walkway – tender documents have been issued

 

$3,031,069      Heffron Park – work to commence Aug 2010

 

$2,379,823      Chifley Sports Reserve – work to commence Nov 2010

 

$576,046         Belmore Rd and High Street Paving - to commence Sept 2010

 

$986,665         Bunnerong Rd Rehabilitation – tender preparation underway

 

$500,000                Minneapolis Crescent Affordable Housing project – contribution anticipated to be made by 30 June 2011

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome 1:       Leadership in Sustainability.

Direction 1b:      Council is a leader in the delivery of social, financial and operational activities.

 

Financial impact statement

 

The organisation has provided sound financial management during the 2009-10 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 and 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 2010 and 2009-10 surplus of $18,500 be noted.

 

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

 

c)     The Carryovers be adopted as per Attachment 3.

 

d)     The Aeolia Street Car Park Reserve balance of $715,000 be transferred to the Property Development Reserve.

 

e)     The Parking Land Acquisition Reserve balance of $77,823 be transferred to the Infrastructure Reserve.

 

Attachment/s:

 

1.View

Income Statement and Source and Application of Funds for the year ended 30 June 2010 (Unaudited)

 

2.View

Balance Sheet as at 30 June 2010 (Unaudited)

 

3.View

Schedule of Carry Overs

 

  


Income Statement and Source and Application of Funds for the year ended 30 June 2010 (Unaudited)

Attachment 1

 

 






Balance Sheet as at 30 June 2010 (Unaudited)

Attachment 2

 

 


Schedule of Carry Overs

Attachment 3

 

 















Administration and Finance Committee

10 August 2010

 

 

 

Finance Report No. F19/10

 

 

Subject:                  Contingency Fund status as at 31 July 2010

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 2010-11 financial year.

 

In the 2010-11 financial year there have been 16 allocations totalling $61,336.00 as listed in the table below.

 

Issues

Meeting

Details

Net cost to Council

Ord 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

Extraord Council – 6 Oct 2009

Annual contribution (3 years from 2009-10)

Sponsorship - Westpac Life Saver Rescue Helicopter

 

$15,000.00

Ord Council - 24 Nov 2009

Annual contribution (5 years 2010-2015)

Waiving of fees – Rainbow Club Australia – Ocean Swim (Maroubra to Little Bay)

 

$10,820.00

Ord Council – 25 May 2010

Waiving of fees - Yvette Walters Fundraising Event – Randwick Town Hall

 

$780.00

Ord Council – 22 June 2010

Financial contribution - Randwick Boys and Girls High Schools – Combined Eisteddfod Show

 

$3,000.00

Ord Council – 22 June 2010

Waiving of fees – use of Town Hall for Cana Ball

 

$1,790.00

Ord Council – 27 July 2010

Waiving of fees and financial assistance - Art Exhibition of Tony Rafty's Drawings (Caricatures) at the Prince Henry Centre

 

$11,995.00

Ord Council – 27 July 2010

Waiving of fees - Banners for Brigidine College, Randwick

 

$3,753.00

Ord Council – 27 July 2010

Donation - Randwick Rugby Foundation for Hall of Fame Event

 

$1,500.00

Ord Council – 27 July 2010

Hosting of Presentation Function for 2011 Australia Day Botany Bay Regatta

 

$2,000.00

Ord Council – 27 July 2010

Waiving of fees - Supported Living Network 12 Hour Cycle Challenge at Heffron Park

 

$3,853.00

Ord Council – 27 July 2010

Waiving of fees - Prince Henry Hospital Trained Nurses' Association - Use of Prince Henry Centre

 

$1,495.00

Ord Council – 27 July 2010

Financial assistance - National Servicemen's Association of Australia (Eastern Suburbs Sub-Branch)

 

$500.00

Ord Council – 27 July 2010

Keith Stewart painting

 

$350.00

TOTAL:

 

$61,336.00

 

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.

 

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 $35,000 in the 2010-11 Budget for contingencies.  This amount will be adjusted, as necessary, in conjunction with quarterly budget reviews.

 

Recommendation

 

That the report be received and noted.

 

Attachment/s:

 

Nil