Financial Plan inputs and assumptions The following financial statements portray the projected financial position of Council over the next ten years.
LONG TERM FINANCIAL PLAN 2022 - 2031
Appendix
Financial Statement
A
Comprehensive Income Statement
B
Conversion to Cash Result
C D
Balance Sheet Statement of Changes in Equity
E
Statement of Cash Flows
F
Statement of Capital Works
G H
Statement of Human Resources ($) Statement of Human Resources (FTE)
The statements are prepared based on current knowledge and service levels and will no doubt be affected by various events which will occur in future years. It is important that the long-term financial outlook be revisited and updated on an annual basis. It should be noted that final decisions on the allocation of funds are undertaken through Council’s Budget process in accordance with the Local Government Act 2020 (Section 94). Modelling methodology This section of the LTFP contains details of the assumptions specifically applied to produce the long-term outlook in the Financial Statements listed above. A commentary is also provided on the information relayed by the Statements and what they mean for Council. In a more global sense however, it is worthwhile detailing the approach to the modelling process as broad percentages have not been universally applied. The model has been prepared at the lowest accounting level within Council’s general ledger system being “sub activity (program and account) level”. At this level, certain accounts were coded for manual adjustment rather than broad percentage increases (e.g. election expenses, property revaluation costs and one-off projects). It is therefore not possible to simply multiply the previous year’s base by a percentage and achieve the same outcomes as presented. The base point used for modelling has largely been the original 2020-21 Budget before the factoring in of any COVID-19 impacts (a ‘normal’ base year). Achieving cost savings The LTFP is a high level strategic plan that acts as a framework for future budgets. Whilst this plan is based on the premise of continuing to deliver all present-day operational services, it must be highlighted that Council continues to institute a number of processes that have delivered considerable savings against the framework and will continue to identify savings in the future.
LONG TERM FINANCIAL PLAN 2022 - 2031 CITY OF GREATER DANDENONG
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