Gympie City Public Notice Board

 
Gympie Regional Council - Financials do Matter
 
 
Overview

Figures in this article, quoted in relation to Gympie Regional Council’s financial management, have been extracted from publications available on Council’s website.

Figures have been reassembled to make their comprehension for the general community more useful and appropriate.

The documents from which they have been extracted are the FY2015 and FY2016 budget documents

As they are budget documents, the figures are estimations only. Council does not publish comprehensive actual figures in relation to financial management.

While all care has been taken in the extraction and realignment of the data, errors may occur. While I am reasonably confident this has not happened, it is not impossible!

Reserve Funds

There has been discussion about the amount of money spent from Council’s Reserve Funds in recent times. Page 8 of the FY2016 budget document indicates that the Reserve of $84,882,380 as at 1 July 2014 is estimated to stand at $46,335,654 as of 30 June 2016.

A transfer of some $38,546,726 between the 1 July 2014 and 30 June 2016

Budget FY 2016
Financial Accounts
The Budget

In the Press Release published on 3 June 2015 Council advised that the FY2016 budget would be a "Balanced budget" involving $130 million

Budget FY2016

As can be seen from the operational statement the total amount of funds flowing into the Council during the financial year was  estimated at only $81 million in Revenue and $14 million in Grants giving a total net inflow of  $95 million - a shortfall of $35 million.

In financial land a ‘balanced budget’ means one in which expenditure is matched by receipts. The budget as announced by Council in FY2016 was not 'balanced'. It relied upon drawing upon reserves to satisfy the projected expenditure.

Not that there is any inherent problem in drawing upon reserves to meet expenditure but for public organisations, there is a problem when they elect not to be forthcoming about such a decision as well as provide reasons for the action taken.