Hilltops Council released the audited financial statements of the three former Council areas of Boorowa, Harden and Young at the February 22 Ordinary Meeting of Council.
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The financial statements were presented by Council’s auditors Crowe Howarth Chartered Accountants and Auswild and Co Chartered Accountants.
The financial statements presented a sound financial outcome for each of the former Councils, however General Manager Anthony McMahon advised some caution in interpreting the statements.
“As an example, each of the Councils achieved operating surpluses, however the statements only reflect 10 and a half months’ expenditure versus 12 months’ income, making the bottom line surplus appear much better,” Mr McMahon said.
The reason for the anomaly between income and expenditure reporting periods is due to the amalgamation timing and directive from the government on the accounting standards to be used.
“The timing issue has resulted in a positive impact for the last financial year and will conversely result in a negative impact at the end of the current financial year which will again include reporting on income for a 12-month period but will include expenditure over a 13 and half month period,” Mr McMahon said.
This also has influenced the performance ratios with some being inflated by the increased income whilst others such as the rates income appear poorer as a reflection of the shortened time to collect this income.
The Quarterly Budget Review was also presented to the February meeting with several variations endorsed, most notably in the areas of Infrastructure expenditure.
Considering the additional cost to road maintenance due to significant flooding in the area during the financial year, Council was pleased to receive the $1M funding from the State Government to offset to the increased budgetary needs in the infrastructure area.
Council is still in negotiation with RMS to finalise the scope of works for flood damage and once these are agreed Council may need to defer some capital works to complete these in a timely manner.
The full reports and statements for the three former Councils as well as the Quarterly Budget Review can be found on Council’s website www.hilltops.nsw.gov.au.
