4.2 ANALYSIS OF BALANCE SHEET

This section of the Budget analyses the expected financial position of Council at the end of the 2021-22 financial year.

Note 4.2.1: Current assets ($2.5m decrease)

• Cash assets decreased by $2,842k • Receivables increased by $635k • Inventories decreased by $11k • Other assets decreased by $261k

Note 4.2.2: Non-current assets ($37m increase)

The increase in non-current assets is detailed in the table below, including: • An increase in property, infrastructure plant and equipment by $37m, comprised of the capital works program ($18.8m), less depreciation and amortisation ($9.3m) and disposal of assets ($0.3m) plus the receipt of gifted assets ($1.1m).

Movements in Non-Current Assets

Description

Forecast Balance 1 July 2022 $'000 Additions $'000 Handed to Council $'000 WDV of Disposals $'000 Depreciation $'000 Balance 30 June 2023 $'000

Land 37,707 0 0 0 0 37,707 Buildings Specialised 29,386 150 0 0 (951) 28,585 Buildings Unspecialised 9,899 150 0 0 (229) 9,820 Heritage Buildings 1,065 0 0 0 (64) 1,001 Parks, Open Spaces etc. 3,978 1,965 0 0 (109) 5,834 Recreation, Leisure & Community 18,442 5,826 0 0 (687) 23,581 Car Park 1,567 100 0 0 (31) 1,636 Furniture & Equip 565 0 0 0 (48) 517 Plant & Machinery 4,071 1,087 0 (278) (747) 4,133 Roads 346,230 4,319 1,125 0 (5,165) 346,509 Bridges 35,634 2,760 0 0 (369) 38,025 Footpaths 13,660 400 0 0 (161) 13,899 Drainage 5,740 980 0 0 (159) 6,561 Waste management 0 800 0 0 0 800 Information Comm Technology 1,181 261 0 0 (486) 956 Gravel Pit 240 0 0 0 (62) 178 Land Under Roads 5,213 0 0 0 0 5,213 Invest In Association 636 0 0 0 0 636 Total 515,214 18,798 1,125 (278) (9,268) 525,591

Investment in association represents Council’s share of the net equity of the Geelong Regional Library (GRL) which equated to 6.3% in 2020-21. The GRL Board is comprised of seven representatives from four member councils. Golden Plains Shire Council has one representative on the GRL Board.

Note 4.2.3: Current liabilities ($20k increase)

• Current liabilities represent obligations Council must pay within the next year • The provision for employee benefits as at 30 June 2022 represents Council’s liability to pay employees annual leave and long service leave

Note 4.2.4: Non-current liabilities ($2m decrease)

• Non-current liabilities represent obligations Council must pay beyond the next year • The non-current liability provision primarily for employment benefits will increase by $960k. This largely represents the Council’s provision for long service leave (non-current) • Interest bearing liabilities decrease by $1m which is the net result of new borrowings and repayments of loans taken out in prior years • The non-current liability for landfill rehabilitation will now be funded over 10 years with an increase in the garbage charge that commenced from 2021-22