2019-2020 annual financial statements and audit reports
Balranald Shire Council’s (BSC) 2019-2020 annual financial statements were presented to the public at the February council meeting, together with reports by the New South Wales Audit Office through Nexia, a firm appointed by the NSW Audit Office to carry out the audit work.
The audit report contained an unqualified opinion on BSC’s general purpose financial statements, the special purpose financial statements for council’s declared business activities, and the special schedule on permissible income for general rates.
The auditors found that the financial statements were fairly and appropriately presented, without any identified exceptions, and that they are in compliance with generally accepted accounting principles.
BSC achieved an operating result from continuing operations of $3.57 million, or $48,000 before allowing for capital grants and contributions. Rates and annual charges amounted to $3.82m.
BSC had an approved special rate variation which resulted in an increase of general rates revenue by 10 per cent. Annual charges for services increased by $344,000. Grants and contributions revenue of $12.14m had increased by 9.05 per cent. This was primarily due to increased funding from the Roads to Recovery Program.
Cash and investments as at June 30, 2020 totalled $11.8m and after repaying principal and interest of $408,000, BSC’s total debt as at that date was $2.3m.
BSC council either met or exceeded industry benchmarks for the debt service ratio, unrestricted current ratio, percentage of rates and annual charges outstanding, and liquidity, although its operating performance ratio and own source operating revenue ratio were again below the industry benchmarks.
Overall, revenue has remained consistent, but expenditure increased due to the continued rural roads maintenance programme that commenced in 2018-1019, which resulted in increased rural road maintenance costs. BSC will always struggle to achieve the minimum 60 per cent operating own source revenue benchmark as the Shire does not have sufficient rating base to raise rates and annual charges to that level.
The 2019-2020 annual financial statements demonstrate that the council’s financial position remains satisfactory in the circumstances.Operational plan 2020-2021 progress report
Under the integrated planning and reporting framework for NSW councils, Balranald Shire Council is required to report on its progress in implementing the delivery programme and operational plan.
The general manager must ensure that regular progress reports are provided to the council at six-monthly intervals detailing the council’s progress with respect to the principal activities detailed in the delivery programme.
In 2020-2021, the council committed to delivering 89 actions focussed on achieving our community’s vision across the strategic directions contained in the Balranald Shire community strategic plan 2027.
At the February council meeting, council received a six-monthly report to December 31, 2020 that utilises easy to follow traffic light indicators to describe the council’s progress over the reporting period.
The report is available in the agenda for the February council meeting on council’s website.
Of the 89 actions covered by the operational plan, 68 per cent are either complete, or on track to being completed.
Eleven per cent were not yet commenced during the reporting period and are only scheduled to commence about now.
The council is also currently delivering and working on numerous projects that were not envisaged in the current operational plan.
This is mostly due to large, external stimulus funding that has been received in response to the COVID-19 pandemic.
As a result, 20 per cent of planned actions, at risk of falling behind, are being intensively managed.
