VC: GR

 

18 May 2011

 

 

 

 

 

 

 

 

 

 

 

Dear Councillor/Sir/Madam

 

You are invited to attend an BUDGET AND OPERATIONS REVIEW COMMITTEE MEETING of Ashfield Council, to be held at the Haberfield Library, 78 Dalhousie Street, Haberfield on TUESDAY  24 MAY 2011 at the conclusion of the Library Committee.

 

Yours faithfully

 

 

 

VANESSA CHAN

General Manager

 

 

 

SEE ATTACHED AGENDA


 

Budget and Operations Review Committee Meeting - 24 May 2011

 

AGENDA

 

1.                      Opening

 

2.                      Acknowledgement of Local Indigenous Community

 

3.                      Apologies/Request for Leave of Absence

                   

4.                      Condolence and Sympathy Motions

 

5.                      Moment of Private Contemplation

 

6.                      Disclosures Of Interest

 

Disclosures to be made by any Councillors who have a pecuniary / non-pecuniary interest in respect of matters that are before Council at this meeting.

(24/05/2011)

 

7.                      Confirmation of Minutes of Council/Committees

 

Budget and Operations Review Committee Meeting - 22/03/2011

 

8.                      Staff Reports

 

8.1        SUNDRY GRANTS -  REQUESTS TO COUNCIL FOR FINANCIAL ASSISTANCE

 

8.2        THIRD QUARTER REVIEW AGAINST THE MANAGEMENT PLAN 2010-2014

 

8.3        THIRD QUARTER BUDGET REVIEW

 

8.4        PROVISION OF BANKING SERVICES

 

8.5        GOODS & SERVICES TAX CERTIFICATE

 

8.6        INVESTMENT REPORT AS AT 31 MARCH 2011

 

8.7        INVESTMENT REPORT AS AT 30 APRIL 2011

 

 

9.                      General Business

 

 

 

10.                  Close

 

 

 

 

 

Ashfield Council

 

Budget and Operations Review Committee Meeting - 24 May 2011

 

 

8         Summary of  Staff Reports

 

8.1         SUNDRY GRANTS -  REQUESTS TO COUNCIL FOR FINANCIAL ASSISTANCE. Gerard Howard - Manager Community Services. Report submitted.

(12/05/11)                                                             Financial Assistance - Council Grants

                                             h:\reports.bp\Committees\Reports\BOR240511SR_5.doc

                                                                                                               BOR 8.1 Attached

RECOMMENDATION

 

1/5         That Council note the information contained in this report.

 

2/5         That for the reasons outlined in the report, Council not make a contribution to Breast Cancer Australia.  

 

3/5         That Council not provide assistance to the Australian Paralympic  Committee as a sundry grant but refer the applicant to the CDSE grant program.

 

4/4         That Council provide $150 to St Joan of Arc School for their Annual Fete.

 

5/5         That Council provide $150 to Ashfield resident Liam Erby to assist with his expenses in representing Australia at the American Football World Cup in Austria.

 

 

8.2         THIRD QUARTER REVIEW AGAINST THE MANAGEMENT PLAN 2010-2014. Gabrielle Rennard - Manager Governance. Report submitted with attachment 1.

(16/05/11)                                                             Governance>Management Plan 2010

                                             h:\reports.bp\Committees\Reports\BOR240511SR_6.doc

                                                                                                               BOR 8.2 Attached

RECOMMENDATION

 

That Council's performance over the 3rd Quarter 2010/14 be noted.

 

 

8.3         THIRD QUARTER BUDGET REVIEW. Glenn McMahon - Chief Financial Officer. Report submitted with attachments 1 and 2.

(17/05/11) Financial Management > Quarterly Reviews > Budget Quarterly Reviews 2010-11

                                             h:\reports.bp\Committees\Reports\BOR240511SR_7.doc

                                                                                                               BOR 8.3 Attached

RECOMMENDATION

 

That Council adopt the recommended Third Quarter Budget Review variations specifically:

 

i)     Adjust the forecast end of year surplus to $100,000; and

ii)    Remaining funds of $142,000 be transferred to the internal restriction for the Civic Centre Restoration.

 

 

8.4         PROVISION OF BANKING SERVICES. Glenn McMahon - Chief Financial Officer. Report submitted.

(21/04/11)                                           Financial Management/Banking/Banking Advice

                                             h:\reports.bp\Committees\Reports\BOR240511SR_3.doc

                                                                                                               BOR 8.4 Attached

RECOMMENDATION

 

That the Budget and Operations Review Committee note this information.

 

 

8.5         GOODS & SERVICES TAX CERTIFICATE. Ramani Sathananthan - General Ledger Coordinator. Report submitted with attachment 1.

(20/04/11)                                                    Financial Management>Tax>GST 2010/11

                                             h:\reports.bp\Committees\Reports\BOR240511SR_2.doc

                                                                                                               BOR 8.5 Attached

RECOMMENDATION

 

That Council resolve to sign the Goods and Services Tax Certificate and forward this to the Department of Local Government.

 

 

8.6         INVESTMENT REPORT AS AT 31 MARCH 2011. Ramani Sathananthan - General Ledger Coordinator. Report submitted with attachments 1 to 3.

(20/04/11)                                     Financial Management>Reports>Investment Report

                                             h:\reports.bp\Committees\Reports\BOR240511SR_1.doc

                                                                                                               BOR 8.6 Attached

RECOMMENDATION

 

That the report be received and noted.

 

 

8.7         INVESTMENT REPORT AS AT 30 APRIL 2011. Ramani Sathananthan - General Ledger Coordinator. Report submitted with attachments 1 to 3.

(09/05/11)                                     Financial Management>Reports>Investment Report

                                             h:\reports.bp\Committees\Reports\BOR240511SR_4.doc

                                                                                                               BOR 8.7 Attached

 

RECOMMENDATION

 

That the report be received and noted.

  

 

 

 

 


Ashfield Council – Report to Budget and Operations Review Committee Meeting held on Tuesday 24 May 2011

BOR8.1

Subject                            SUNDRY GRANTS -  REQUESTS TO COUNCIL FOR FINANCIAL ASSISTANCE

 

File Ref                            Financial Assistance - Council Grants

 

Prepared by                   Gerard Howard - Manager Community Services       

 

 

Reasons                          Council has received correspondence asking for financial assistance.

 

Objective                         For Council to determine a suitable response to the requests received

 

 

 


Overview of Report


The report presents submissions for financial assistance, evaluated in light of previously adopted procedures relating to ‘sundry’ requests.

 

 

Background

 

Council has received requests for financial assistance or sponsorship from St Joan of Arc School in Haberfield, Liam Erby a local resident, Breast Cancer Australia & the Australian Paralympic Committee.

 

1.    St Joan of Arc school is holding a fete on 17th September, 2011. They are seeking financial sponsorship for the fete and financial donations.

 

2.    Liam Erby is a resident of Ashfield and has been selected to represent Australia at the upcoming American Football World Cup to be held in Austria in July.

 

3.    Breast Cancer Australia is running the 2011 Breast Cancer Australia NSW Appeal to raise money for four primary project areas: research, treatment, patient accommodation and awareness/prevention.

 

4.    The Australian Paralympic Committee are seeking donations to support athletes competing at the Paralympic Games

 

Under Council’s adopted procedures for determining ‘sundry’ requests for financial assistance from organisations and individuals, Council can consider applications for financial assistance from individuals and groups/organisations in the following categories:

 

a)   Individual residents living in the Ashfield Council area. Residents must provide proof of residency with their application.

 

b)   Locally based groups, teams and organisations, requiring assistance for projects and activities for the benefit of residents of Ashfield Municipality. Such organisations must be located in the Municipality of Ashfield or provide benefits for a significant proportion of the residents; and established as not-for-profit, community based and/or charitable organisations (i.e. not commercial or profit-driven entities, including registered clubs).

c)   Other groups and organisations requiring assistance for humanitarian or community concerns consistent with Council’s social and/or other policies.

 

Preference for funding will generally be given to groups/organisations with limited sources of funding or fund-raising. In cases where individuals and teams apply for assistance they should provide support documentation from their club or association and peak body.

 

Council may consider applications or proposals involving financial assistance of the following nature:

 

·    An initiative which strengthens formal and informal support networks, reduces isolation and increases community participation and opportunities especially for people with the greatest need.

·    A special event servicing the local community, which is not provided for in Council’s events programs.

·    Establishment of a new service where no other source of funding exists

·    State or national representation in chosen field, including academic, cultural, artistic and sporting endeavours, where people require financial assistance to attend or compete.

·    A team or individual from a disadvantaged background in pursuit of a unique cultural, academic or sporting experience and which will produce considerable social capital for those involved.

·    Requests for use of Council facilities, which involve either waiving of charges or reduction of fees and charges at a level below the scheduled amounts in Council’s Annual Management Plan Fees and Charges.

·    Donations towards humanitarian or community concerns consistent with Council’s social and/or other policies.

 

Applications for a Sundry Grant will not be considered in cases where they:

 

·    Are eligible to apply for an Ashfield Council Community Grant or have already been granted assistance from another Council assistance program.

·    Will gain a personal financial benefit from the grant.

 

Current requests.

 

All requests which have been received are worthy endeavours, however some are considered to have access to other sources of funding or fund-raising. Given Council’s own limited resources and the ability of Breast Cancer Australia to raise funds through other means, it is recommended that their request not be supported on this occasion. It is important that Council support projects which more clearly meet the criteria of the Sundry Grants program. Whilst it might be argued that the request from Breast Cancer Australia is consistent with the category relating to assistance “for humanitarian or community concerns”, the broad intent of the Sundry Grants is to strengthen and build the capacity of more local initiatives.

 

In the case of the Australian Paralympic Committee, it is proposed that Council suggest that they apply to Ashfield local registered clubs for funding under Category 2 of the Community Development & Support Expenditure (CDSE) program. Category 2 of the scheme funds traditional areas of club expenditure such as support for sport and recreation groups.

 

St Joan of Arc School fete and Liam Erby’s request for assistance are more localised and warrant consideration. In the case of the school it can be seen to be consistent with “a special event servicing the local community, which is not provided for in Council’s events programs”. The fete also serves to strengthen and build the capacity of a local initiative. Whist Council’s own Annual Community Grants program may consider a request from a school, the program is primarily geared towards community based, not for profit organisations.  Therefore, a Sundry grant donation from Council of $150 to the school would seem reasonable on this occasion.

 

In the case of Mr Erby’s request, it is consistent with a “State or national representation in chosen field, including academic, cultural, artistic and sporting endeavours, where people require financial assistance to attend or compete”. Mr Erby outlines that the sport is amateur & to participate in the World Cup he needs to raise $7,000. Whilst some support may be warranted it is suggested he also apply to Ashfield local registered clubs for funding under Category 2 of the Community Development & Support Expenditure (CDSE) program. Category 2 of the scheme funds traditional areas of club expenditure such as support for sport and recreation groups. A donation from Council of $150 to assist with Mr Erby’s expenses would seem reasonable on this occasion.

 

 

Financial Implications

 

Sundry donations such as those recommended in this report will be sourced from available funds within the existing Councillors’ Donations vote. There is currently $4,000 remaining within this vote.

 

Other Staff Comments

Nil

 

Public Consultation

Nil

 

Conclusion

 

Council frequently receives ad hoc requests for financial assistance. These need to be assessed in a systematic way and support provided where appropriate. The adopted procedures for ‘sundry’ requests enable this process to be implemented. In this context the report recommends that two of the four requests being considered, receive some assistance from Council.

 

 

 

 

 

ATTACHMENTS

There are no supporting documents for this report.

 

RECOMMENDATION

 

1/5    That Council note the information contained in this report.

 

2/5    That for the reasons outlined in the report, Council not make a contribution to Breast Cancer Australia.  

 

3/5    That Council not provide assistance to the Australian Paralympic  Committee as a sundry grant but refer the applicant to the CDSE grant program.

 

4/4    That Council provide $150 to St Joan of Arc School for their Annual Fete.

 

5/5    That Council provide $150 to Ashfield resident Liam Erby to assist with his expenses in representing Australia at the American Football World Cup in Austria.

 

 

 

 

 

 

 

 

 

Nellette Kettle

Director Corporate & Community Services

 

 

 

 


Ashfield Council – Report to Budget and Operations Review Committee Meeting held on Tuesday 24 May 2011

BOR8.2

Subject                            THIRD QUARTER REVIEW AGAINST THE MANAGEMENT PLAN 2010-2014

 

File Ref                            Governance>Management Plan 2010

 

Prepared by                   Gabrielle Rennard - Manager Governance       

 

 

Reasons                          To fulfil statutory reporting requirements according to the Local Government Act 1993 and the Local Government Amendment (Planning and Reporting) Act 2009

 

Objective                         To update Council on progress towards delivery of the 2010/2014 Management Plan

 

 


Overview of Report

 

The Local Government Act 1993 requires that a report be prepared to Council within two (2) months after the end of each quarter. The report (attachment 1) reflects actions and achievements undertaken during the third quarter in relation to performance targets as determined in the Management Plan 2010/2014.

 

 

Background

This is the third quarter review presented against the Management Plan 2010/2014.

 

Detailed information on performance against each initiative listed in the Management Plan is provided in the attachment to this report. The report indicates that, overall, consistent progress is being made towards the delivery of programs/initiatives that Council committed to for the 2010/2014 year.

 

 

Financial Implications

These are outlined in the 3rd Quarter Budget review report that is also to be considered at the Ordinary Council Meeting on 24 May 2011.

 

 

Other Staff Comments

All Program Managers have contributed to the review through the delivery of their operational plans.

 

 

Public Consultation

Not required.

 

 

Conclusion

This third quarter review has been conducted in accordance with the requirements of the Local Government Act 1993 and the Local Government Amendment (Planning and Reporting) Act 2009, ensuring all statutory and legislative requirements for Council have been met.

 

 

 

 

ATTACHMENTS

Attachment 1View

3rd Quarter Review

27 Pages

 

 

 

RECOMMENDATION

 

That Council's performance over the 3rd Quarter 2010/14 be noted.

 

 

 

 

 

 

 

 

Nellette Kettle

Director Corporate & Community Services

 

 

 

 


Attachment 1

 

3rd Quarter Review

 




























Ashfield Council – Report to Budget and Operations Review Committee Meeting held on Tuesday 24 May 2011

BOR8.3

Subject                            THIRD QUARTER BUDGET REVIEW

 

File Ref                            Financial Management > Quarterly Reviews > Budget Quarterly Reviews 2010-11

 

Prepared by                   Glenn McMahon - Chief Financial Officer       

 

 

Reasons                          Statutory Requirement

 

Objective                         To inform Council of the current status and proposed changes to the budget for 2010/11

 

 

 


Overview of Report

The Local Government (General) Regulation 2005 requires Council to review its budget on a quarterly basis. This is the third quarterly review for the 2010/11 financial year.  The Council originally adopted a budget surplus of $12,895 as part of its 2010/11 Management Plan in June 2010. At Quarter 3 we are recommending a revised forecast budget surplus of $100,000, bringing Council back in line with policy parameters. Council is on track to deliver our commitments in the Management Plan.

 

 

Background

 

Clause 203 (1) of the Local Government (General) Regulation 2005 states:

 

“Not later than two months after the end of each quarter, the responsible accounting officer of a council must prepare and submit to the council a budget review statement that shows, by reference to the estimate of income and expenditure set out in the management plan that the council has adopted for the relevant year, revised estimates of the income and expenditure for that year.”

 

3rd Quarter Review Variations

 

The third quarter review recommends the following variations to the adopted budget:

 

1.   Increase investment income (from Civic Centre funds) of $140,000

2.   Increase DA fees by $90,000

3.   Increase Section 94A contributions by $39,000 and increase the corresponding transfer to the Section 94A restriction

4.   Increase income from park rentals by $80,000

5.   Reduce sponsorship for the Carnival of Cultures by $6,000

6.   Reduce the immunisation subsidy and inspection fees by $39,000

7.   Reduce salary and wages costs by $200,000 representing a saving across the whole of Council

8.   Increase the Workers Compensation Premium estimate $11,000 due to an under accrual in 09/10

9.   Increase Counselling Services and recruitment advertising costs by $24,000

10. Increase in photocopying costs, offset by other savings by a net $6,000

11. Increase the operational costs for parks & gardens by $30,000

12. Increase in the Civic Centre Redevelopment expenditure of $80,000*

 

*Council resolved on 10 May 2011 to adopt variations to the total project costs for the Civic Centre Redevelopment and the recommendations relating to the funding of the related outlays.

 

Due to careful management of our investments and operations, we are able to deliver at the third quarter a surplus of $174,000 after transferring $140,000 of the increased investment income into the Civic Centre Redevelopment Restriction. This is a very positive result. It is the strong recommendation of the Finance Department and General Manager that these funds be applied to:

 

1.   Bringing Council’s forecasted end of year position within the bounds of adopted Council policy, this being between $50,000 and $100,000. Recommended at $100,000.

2.   Remaining surplus funds be transferred into the Civic Centre Restriction. Recommended at $142,000.

 

Certificate

 

In accordance with the Local Government (Financial Management) Regulation 1999, Part 2, Clause 7, I report that the financial position of the Council was satisfactory as at 31 March 2011, having regard to the original estimates of income and expenditure.

 

Financial Implications

 

As outlined in this report.

 

Other Staff Comments

 

The Directors and Program Managers were consulted and have provided input into the status of the projects relating to their area of responsibility.

 

Public Consultation

 

Not required.

 

Conclusion

 

Approval will provide the funding necessary to enable the continuation or commencement of various works and projects.

 

 

 

 

 

ATTACHMENTS

Attachment 1View

Summary of Variations and Recommend Adjustments

1 Page

 

Attachment 2View

Movement in Restrictions and a Reconciliation of Councillors' Donations and Contingency Account

1 Page

 

 

 

RECOMMENDATION

 

That Council adopt the recommended Third Quarter Budget Review variations specifically:

 

i)          Adjust the forecast end of year surplus to $100,000; and

ii)         Remaining funds of $142,000 be transferred to the internal restriction for the Civic Centre Restoration.

 

 

 

 

 

 

 

 

 

Nellette Kettle

Director Corporate & Community Services

 

 

 

 


Attachment 1

 

Summary of Variations and Recommend Adjustments

 


Attachment 2

 

Movement in Restrictions and a Reconciliation of Councillors' Donations and Contingency Account

 


Ashfield Council – Report to Budget and Operations Review Committee Meeting held on Tuesday 24 May 2011

BOR8.4

Subject                            PROVISION OF BANKING SERVICES

 

File Ref                            Financial Management/Banking/Banking Advice

 

Prepared by                   Glenn McMahon - Chief Financial Officer       

 

 

Reasons                          To provide the Committee with an update on the implementation of the changeover to the Commonwealth Bank.

 

Objective                         To present the action plan and provide information.

 

 


Overview of Report

This report updates the Budget & Operations Review Committee on the change over of Council’s banking service provider from Westpac to the Commonwealth Bank.

 

 

Background

 

On 28 September 2010, Council resolved to the following:

 

1/3 That Council accept CBA as the recommended service provider for the provision of general transactional banking services.

 

2/3 That the General Manager is granted the authority to execute the associated contract with CBA for a term of 3 years (extension options 2 x 12 months) as soon as practicable.

 

3/3 Council to formally advise all parties, who submitted proposals, of the decision within the next 7 days.

 

As a consequence of that decision, the Finance Section has developed a project plan for the change over and is now undertaking the identified tasks.

 

Update

 

A project plan has been developed to facilitate a smooth transfer of our banking services.

 

The major tasks included in the plan are:

 

Task

Comments & Finish Dates

Open accounts with the Commonwealth Bank and attend to documentation.

Completed.

Design, approval and purchasing of new stationery such as rates notices.

New stationery with a Commonwealth Bank deposit slip will be available from

31 May 2011.

Communication with stakeholders to advice of the change of banking details. Stakeholders include our ratepayers, sundry debtors, employees and financial intermediaries such as Australia Post.

A flyer which will be included with all rate notices and invoices – 30 June 2011

Financial intermediaries will be contacted – 31 May 2011.

Installation and training for the new equipment such as EFTPOS machines and electronic banking software.

New machines will be installed and staff will be trained mid June.  The service transferred prior to 30 June 2011.

Testing that the electronic files which we generate such as payroll disbursements can be processed by the Commonwealth Bank.

Confirmation of the acceptance of electronic files will be received by 31 May 2011.

The “Go Live” date.

From 1 July 2011 all transactions instigated by us will be transacted through the new account.

 

To date all tasks have been completed by the due date and the implementation is progressing well.

 

Impact on Stakeholders

 

Our stakeholders can be divided into two groups, those who we remit money to (Payees) and those who we receive money from (Depositors).

 

Payees include councillors, staff and creditors.  The change in financial services provider from Westpac to the Commonwealth Bank will mean that payees who banked with Westpac will receive the funds one day later the usual.  Previously those payees would have access to funds on the same day as it was paid by Council.  Now they will need to wait for the overnight settlement between financial institutions. This change will occur from 1 July 2011.

 

All payees will be notified of this change from 1 June 2011 so they can make the necessary adjustment to activities such as direct debit and bill payments and every day banking needs, and also to reschedule any automated bank transactions like loan repayments.

 

Depositors include our ratepayers, other customers, government departments and collection intermediaries.  For depositors who make their payments using the deposit slip on the bottom of rate notices and invoices, they will need to go to the Commonwealth Bank instead of Westpac.  A colourful flyer will be included with rate notices and invoices from 1 July 2011 to alert them of the change.

 

For government departments and other parties who pay by direct transfer, a letter detailing our new bank account details will be sent with a request to notify us that the change to their records has been performed.

 

The Westpac bank account will remain open for several months to capture deposits and allow for the Westpac cheques to be presented.

 

 

Financial Implications

 

The changeover will require designing and printing of new stationary such as cheques, invoices and rate notices.

 

There will also be a need to print flyers to advise rate payers and other customers that Council has changed banks.

 

The costs will be of a minor nature and funded out of the current budget allocation.

 

Other Staff Comments

 

The Customer Relations Officer has been consulted in relation to the need to replace the EFTPOS terminals and the provision of equipment training.

 

The Manager of Workplace Relations has been consulted in relation to the changeover and stressed the need to advise staff of the changes well in advance.

 

Public Consultation

 

Not applicable.

 

Conclusion

 

The action plan has been developed and will be progressed and monitored over the coming months.

 

 

 

ATTACHMENTS

There are no attachments for this report

 

RECOMMENDATION

 

That the Budget and Operations Review Committee note this information.

 

 

 

 

 

 

 

 

 

Nellette Kettle

Director Corporate & Community Services


Ashfield Council – Report to Budget and Operations Review Committee Meeting held on Tuesday 24 May 2011

BOR8.5

Subject                            GOODS & SERVICES TAX CERTIFICATE

 

File Ref                            Financial Management>Tax>GST 2010/11

 

Prepared by                   Ramani Sathananthan - General Ledger Coordinator       

 

 

Reasons                          Local Government bodies are requested to provide the Department of Local Government with advice as to GST compliance by way of a certificate so that the Department can notify NSW Treasury for confirmation with the Commonwealth Commissioner of Taxation

 

 

Objective                         To confirm compliance with GST legislation

 

 


Overview of Report

 

The Department of Local Government requires Council to complete a Goods and Services Tax Certificate to be signed by the Mayor, Councillor, the General Manager and the Responsible Accounting Officer in accordance with a resolution of Council

 

 

Background

Prior to 30 June 2004 the Goods and Services Tax Certificate had been completed by Council’s auditors and forwarded on to the Department of Local Government.

 

It is no longer mandatory for Councils to have their auditors undertake a review of the GST systems, even though it would be included as part of their normal procedures.

 

The request from the Department is to allow the Commonwealth Commissioner of Taxation to make a determination concerning the amount of GST collected in the 2010/11 Financial Year.

 

Financial Implications

Nil

 

Other Staff Comments

Not Required

 

Public Consultation

Not Required

 

 

Conclusion

 

The certification for the Goods and Services Tax is to confirm compliance with legislation

 

 

 

ATTACHMENTS

Attachment 1View

Goods & Services Tax Certificate

1 Page

 

 

 

RECOMMENDATION

 

That Council resolve to sign the Goods and Services Tax Certificate and forward this to the Department of Local Government.

 

 

 

 

 

 

 

 

 

 

Nellette Kettle

Director Corporate & Community Services

 

 

 

 


Attachment 1

 

Goods & Services Tax Certificate

 

 

 

 

 

 

 

 

 

 

 

 

 

COUNCIL OF ASHFIELD

GOODS AND SERVICES TAX CERTIFICATE

 

 

Payment of Voluntary GST for the period 1 May 2010 to 30 April 2011

 

To assist compliance with Section 114 of the Commonwealth Constitution, we certify that:

 

§ Voluntary GST has been paid by Ashfield Council for the period 1 May 2010 to

30 April 2011.

 

§ Adequate management arrangements and internal controls were in place to enable

the Council to adequately account for its GST liabilities and recoup all GST input tax

credits eligible to be claimed.

 

§ No GST non-compliance events by the Council were identified by or raised with the

Australian Taxation Office during the period 1 May 2010 to 30 April 2011.

 

Signed in accordance with a resolution of Council made on ………….Resolution No………..

 

 

 

 

            

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

             Cr.Ted Cassidy PSM                                       Cr.Lyall Kennedy

             MAYOR                                                            COUNCILLOR

 

 

 

 

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

             Vanessa Chan                                                               Glenn McMahon

             GENERAL MANAGER                                               RESPONSIBLE

                                                                                         ACCOUNTING OFFICER                


Ashfield Council – Report to Budget and Operations Review Committee Meeting held on Tuesday 24 May 2011

BOR8.6

Subject                            INVESTMENT REPORT AS AT 31 MARCH 2011

 

File Ref                            Financial Management>Reports>Investment Report

 

Prepared by                   Ramani Sathananthan - General Ledger Coordinator       

 

 

Reasons                          Legislative Requirement

 

Objective                         To report the balance of investments as at 31 March 2011

 

 

 


Overview of Report
In accordance with the requirements of Clause 212 of the Local Government (General) Regulation 2005, Council is provided with a listing of all investments made pursuant to Section 625 of the Local Government Act 1993 and held as at 31 March 2011.

 

Background

Clause 212 of the Local Government (General) Regulation 2005 requires that a report be presented to Council each month listing all investments with certification from the Responsible Accounting Officer. Council’s cash at bank and investments as at 31 March 2011 amounted to $15,443,502.14. It should be noted that the amount currently invested represents all of Council’s external and internal restrictions (i.e. grants, section 94 funds, loans, etc) as well as cash flow requirements.

 

The movement of cash and investments during the month of Mar 2011 is as follows:

 

Cash at Bank and Investments as at 28 Feb 2011                                             $16,644,604.56

Increase/(Decrease) during the month of Mar 2011                                          $ (1,201,102.42)

Cash at Bank and Investments as at 31 Mar 2011                                            $15,443,502.14

                                                                                              

 

Represented By:

Book Value                                                                                                        $15,299,264.98

Bank and Cash Book Balance                                                                           $     144,237.16 

                                                                                                                            $15,443,502.14

 

 

In March 2011, the cash at bank and call deposits decreased by $1,201,102.42 representing a net cash outflow for maintaining Council's activities during the month. This was mainly due to Council's income being lower than average for a non-rating month and expenditure being constant

 

The average yield on the short term portfolio for March was 5.68% whilst the comparative benchmark yield for 90 days bank swap rates was 4.93%.

 

Interest earned for the period 1 July 2010 to 31 March 2011 is $604,459 compared to the budget amount of $383,445.

 

The value of the 3 CDOs shown in the Investment Portfolio Report is the fair value as per the valuation provided by Australia and New Zealand Banking Group Limited dated 28 February 2011.

 

 

Certification – Responsible Accounting Officer

I certify that the investments, as appended, have been made in accordance with the Local Government Act, Regulations and Council’s previous investment policy decisions.

 

Financial Implications

The actual interest income for the 9 months to 31 March 2011 is $604,459 and compares favourably with the budget of $383,445. The favourable variance was mainly due to the higher investment balance as a result of the delay of the Civic Centre re-development project. Actual earnings on investments will be considered within the context of future quarterly budget reviews.

 

Other Staff Comments

Nil

 

Public Consultation

Nil

 

Conclusion

The investments listed in the attached report have been made in accordance with the Local Government Act, Regulations and Council’s previous investment policy decisions

 

 

 

 

ATTACHMENTS

Attachment 1View

Investment Portfolio by Asset Class as at 31 March 2011

2 Pages

 

Attachment 2View

Investment Trend March 2011

1 Page

 

Attachment 3View

CDO Valuation Report Feb 2011

10 Pages

 

 

 

RECOMMENDATION

 

That the report be received and noted.

 

 

 

 

 

 

 

 

Nellette Kettle

Director Corporate & Community Services

 

 

 

 


Attachment 1

 

Investment Portfolio by Asset Class as at 31 March 2011

 



Attachment 2

 

Investment Trend March 2011

 


Attachment 3

 

CDO Valuation Report Feb 2011

 











Ashfield Council – Report to Budget and Operations Review Committee Meeting held on Tuesday 24 May 2011

BOR8.7

Subject                            INVESTMENT REPORT AS AT 30 APRIL 2011

 

File Ref                            Financial Management>Reports>Investment Report

 

Prepared by                   Ramani Sathananthan - General Ledger Coordinator       

 

 

Reasons                          Legislative Requirement

 

Objective                         To report the balance of investments as at 30 April 2011

 

 

 


Overview of Report
In accordance with the requirements of Clause 212 of the Local Government (General) Regulation 2005, Council is provided with a listing of all investments made pursuant to Section 625 of the Local Government Act 1993 and held as at 30 April 2011.

 

Background

Clause 212 of the Local Government (General) Regulation 2005 requires that a report be presented to Council each month listing all investments with certification from the Responsible Accounting Officer. Council’s cash at bank and investments as at 30 April 2011 amounted to $13,389,575.12. It should be noted that the amount currently invested represents all of Council’s external and internal restrictions (i.e. grants, section 94 funds, loans, etc) as well as cash flow requirements.

 

The movement of cash and investments during the month of Apr 2011 is as follows:

 

Cash at Bank and Investments as at 31 Mar 2011                                             $15,443,502.14

Increase/(Decrease) during the month of Apr 2011                                          $ (2,053,927.02)

Cash at Bank and Investments as at 30 Apr 2011                                            $13,389,575.12

                                                                                              

 

Represented By:

Book Value                                                                                                        $12,630,817.72

Bank and Cash Book Balance                                                                           $     758,757.40 

                                                                                                                            $13,389,575.12

 

 

In April 2011, the cash at bank and call deposits decreased by $2,053,927.02 representing a net cash outflow for maintaining Council's activities during the month. This was mainly due to Council's income being lower than average for a non-rating month and expenditure being constant.

 

The average yield on the short term portfolio for April was 5.52% whilst the comparative benchmark yield for 90 days bank swap rates was 4.92%.

 

Interest earned for the period 1 July 2010 to 30 April 2011 is $648,689 compared to the budget amount of $426,033.

 

The value of the 3 CDOs shown in the Investment Portfolio Report is the fair value as per the valuation provided by Australia and New Zealand Banking Group Limited dated 31 March 2011.

Certification – Responsible Accounting Officer

I certify that the investments, as appended, have been made in accordance with the Local Government Act, Regulations and Council’s previous investment policy decisions.

 

 

Financial Implications

The actual interest income for the 10 months to 30 April 2011 is $648,689 and compares favourably with the budget of $426,033. The favourable variance was mainly due to the higher investment balance as a result of the delay of the Civic Centre re-development project. Actual earnings on investments will be considered within the context of future quarterly budget reviews.

 

Other Staff Comments

Nil

 

Public Consultation

Nil

 

Conclusion

The investments listed in the attached report have been made in accordance with the Local Government Act, Regulations and Council’s previous investment policy decisions.

 

 

 

 

ATTACHMENTS

Attachment 1View

Investment Portfolio by Asset Class as at 30 April 2011

2 Pages

 

Attachment 2View

Investment Trend April 2011

1 Page

 

Attachment 3View

CDO Valuation  Report March 2011

10 Pages

 

 

 

RECOMMENDATION

 

That the report be received and noted.

 

 

 

 

 

 

 

 

 

 

Nellette Kettle

Director Corporate & Community Services

 

 

 

 


Attachment 1

 

Investment Portfolio by Asset Class as at 30 April 2011

 



Attachment 2

 

Investment Trend April 2011

 


Attachment 3

 

CDO Valuation  Report March 2011