Expenses Total expenses 4.31% to $132.779M Overall expenditure for 2020/2021 decreased by $1.159M, which is mainly attributed to a $2.659M decrease in materials and services, a $3.137M decrease in net losses on disposal of assets and an increase in depreciation and amortisation expense of $4.308M. Further details are provided below.
Employee benefits and on-costs p 0.69% to $43.938M Total employee costs remained stable for 2020/2021 at $43.938M, an increase of $302K when compared to 2019/2020. This can be mainly attributed to an increase in workers compensation expense.
Materials and contracts 6.55% to $37.946M The total cost to Council for materials and services decreased to $37.946M for 2020/2021, a $2.659M reduction when compared to 2019/2020. This reduction can be attributed to a reduction in electricity and water expenses for 2020/2021, as well as reduction in expenses following the cessation of the Family Day Care Service in 2019/2020.
Borrowing costs 2.78% to $3.143M Council saw a decrease in borrowing costs for the 2020/21 of 2.78% or $90K, when compared to 2019/2020. This can mainly be attributed to a decrease in other borrowing costs required to be recognised for employee leave liabilities.
Depreciation, amortisation and impairment p 12.30% to $39.337M Depreciation is a non-cash expense that reduces the value of an asset over time due to wear and tear, ageing of an asset or obsolescence. The Australian Accounting Standards Board (AASB) requires that a revaluation of each asset class is undertaken at least every 5 years. As a result of recently completed capital works and asset revaluations, Council’s depreciation expense increased for 2020/2021 by $4.308M when compared to the 2019/2020 financial year.
Other expenses p 4.23% to $2.883M Other expenses decreased by 4.23% or $117K in 2020/2021 when compared to 2019/2020. This is mainly attributable to an increase in the contributions paid by Council for Rural Fire Services, Emergency Services and Fire and Rescue services.
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WA G G A WA G G A C I T Y C O U N C I L
ANNUAL REPORT 2020/21
