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6. Financial sustainability
In December 2021, we reviewed our Risk Management Maturity target, revising it to 85%. The updated target will be reflected in our future reports.
While for a number of years Council has been able to consistently sustain a modest underlying surplus, recent impacts from COVID-19, growing internal and external financial pressures such as inflation, increased insurance costs, multiple natural disasters and a continued rate pegging regime have made the ongoing achievement of our goal of an underlying surplus very difficult to realise. In December 2021, we subsequently reviewed our Financial Sustainability target revising it to ‘underlying result better than budget’.
COVID-19 and a range of other factors have significantly impacted almost every facet of our operations, however, through careful cash flow management and reprioritising our expenditure we have reduced this impact. Finalisation of our financial statements to 30 June 2022 is subject to audit findings and will be presented as part of the Annual Report 2021 to 2022. Based on the March 2022 Quarterly Budget Review an underlying surplus of $147,000 was projected.
As outlined under our Key Priorities section on page 12, Council continues to focus on our ongoing financial sustainability.
