ITEM NO. 11 - QUARTERLY BUDGET REVIEW FILE: 05.13 FROM: DIRECTOR CORPORATE & FINANCE

Attached is the quarterly budget review for the period to 31st March 2017, including a statement of financial performance, an income & expenditure statement by function, a forecast capital budget review by function, a statement of cash flows for each Fund, and a variation report. Attached also are a budget review of the cash and investment position, a budget review of key performance indicators, a budget review of contracts and other expenses, and a budget review of consultancy and legal expenses, as required by the updated Code of Accounting Practice and Financial Reporting in accordance with clause 203(3) of the Regulations. The forecast statement of cash flows for the General Fund indicates an increase of cash held of $7,935,630, an increase from the previous quarter of $2,758,732. This amount relates primarily to the deferral of New Council Implementation Fund (NCIF) expenditure of $2,500,000, which will be expended over the next 2 years. The Sewer Fund cash flows indicate expenditure over income of $112,746, a variance from the previous quarter of $142,615. The deferral of capital works for both Jerilderie and Darlington Point provides for this variation. The Water Fund cash flow indicates an increase of funds held of $25,477, being an improvement of $464,333 from the previous quarter. Deferral of capital projects for all three water supplies is the reason for this variation. The statement of financial performance indicates a surplus before capital grants and contributions of $10,491,479, compared to the previous quarter surplus amount of $8,303,698. This is summarised as General Fund surplus of $10,383,643, Water Fund a surplus of $69,314 and Sewer Fund a surplus of $38,522. The deferral of NCIF grant expenditure of $2.5M as mentioned above is a significant reason for this variation. The full list of the variances to the budgeted figures can be viewed at pages 23-31 of the attachment. Report by Responsible Accounting Officer Made in accordance with Clause 203(2) of the Local Government (General) Regulations 2005.

It is my opinion that the Quarterly Budget Review Statement for Murrumbidgee Council for the quarter ended 31st March 2017 indicates that Council’s projected financial position at 30/6/2017 will be satisfactory at year end, having regard to the projected estimates of income and expenditure and the original budgeted income and expenditure.

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Sue Mitchell Date Responsible Accounting Officer Murrumbidgee Council

RECOMMENDATION

That the report be noted and variances to the budgets as outlined in the attachment be approved.