Performance summary

Financial Performance Summary

Council’s Financial Statements were completed within the statutory timeframe set out in the Local Government Act 2009 and the Local Government Regulation 2012. The audit report was unqualified.

Council had an operating deficit of $48.1 million in 2021/22. This deficit is lower than the previous year’s deficit of $56.2 million. There was an increase in both revenue (+$10.2 million) and expenses (+$0.9 million). Increased revenue was due to an overall increase in all revenue items with grants (+$6.8 million) and sales (+$2.2 million) revenues being the most significant. Grants that contributed to the increase were the early part-payment of the 2022/23 financial assistance grant and funding for the waste metal program under the Indigenous Councils Critical Infrastructure Program. Sales revenue is mostly related to Council’s Building Services Unit which was able to deliver more repairs and maintenance works due to efficiencies created in processes (systems) and resource allocation (employees). Costs mainly increased due to the loss on revaluation of Council’s 40-year leases which have been affected by the increase in interest rates. Council’s total assets are valued at $1,059.2 million with the most significant component being property, plant, and equipment $993.4 million. Total liabilities are $36 million with the most significant amount relating to contract liabilities at $13.4 million. Contract liabilities relate to funds received where Council is not yet entitled to recognise the funding due the nonperformance of its obligations. Council is required to perform a comprehensive valuation at least every five years and a desktop valuation every other year. For the current year, a desktop valuation was undertaken which revealed an $111 million net increase of assets with the revenue being recognised as a revaluation surplus in comprehensive income. The following snapshot summarises the financial results for 2021/22 against the 2021/22 results. • Operating deficit decreased by 14.4% ($8.1m) to $48.1 million • Operating revenues increased by 17.5% ($9.1m) to $60.6 million • Sales revenue (30.1% of operating revenues) increased by 13.6% ($2.2m) to $18.2 million • Grants and subsidies (50.1% of operating revenues) increased by 29% ($6.8m) to $30.4 million • Operating expenses increased by 0.9% ($0.9m) to $108.8 million • Net assets increased by 8.1% ($79.6m) to $1,059.2 million

• Cash and investments decreased by 26.3% ($11.9m) to $33.3 million • Capital projects expenditure increased by 11.6% ($3.8m) to $36.7 million