Community Financial Report This report summarises Council's Financial position at 30 June 2021 in simple terms. Council is committed to ensuring it's financially sustainable in the long-term while ensuring our region is affordable for our families to live, work, prosper and play. For 2020/21, Council has delivered on these commitments with its finances strengthened and families having to pay relatively low rates and utility charges for the delivery of services. This Community Financial Report consists of the following five key statements or elements:
1. Statement of Comprehensive Income (what most people would call a Profit and Loss Account) 2. Statement of Financial Position (what most people would call their assets and liabilities) 3. Statement of Changes in Equity (how Council's equity or net worth has grown from one year to the next) 4. Statement of Cash Flows (how Council has used and grown its cash)
Our operating surplus is the outcome which results from deducting our day-to-day costs, including depreciation of our property, plant and equipment, from our day-to-day revenue. Revenue - where does our money come from? This year Council received $179.8 million in revenue which consisted of $158.4 million in recurrent revenue and $21.4 million in capital revenue. Recurrent or day-to-day income of $158.4 million comprised: • Rates, levies and utility charges $97.3 million, • Operational grants, subsides and donations $24.2 million, • Sale of major services of $26.1 million, including sale of gravel from our quarry and gravel pits, revenue from the use of our saleyards and revenue from contracts to maintain and upgrade Queensland Government owned roads, • Fees and charges $6.8 million, • Rentals and levies $1.8 million, • Interest received $1.1 million, and • Other income $1.1 million. In addition, we received Capital Revenue of $21.4 million to assist in delivering projects. This consisted mainly of grants provided by the State and Commonwealth Governments and contributions from the resource sector.
5. Financial Sustainability measures (how we sustain Council's business financially) Significant achievements for 2020/21 include:
• Delivering an operating profit of $12.8 million (Recurrent Revenue of $158.4 million less Recurrent Expenses of $145.6 million),
The following graph shows the break-up of our recurrent revenue. SOURCES OF COUNCIL RECURRENT REVENUE
• Completing capital works of $52.2 million, and
1% 1% 1%
• Increasing our cash by $26.1 million. 15%
1. Statement of Comprehensive Income (Profit and Loss) The Statement of Comprehensive Income details where Council received its money and how it spent this money delivering services to our region. The difference is Council's profit or operating surplus which will be used, at some future time, to deliver services. Financial Summary 2020/21
Fees and charges – 4% Sales of goods and major services – 17%
17% 61% 4%
Revenue and Expenditure - Recent Operating Surpluses $'million Financial Year
Rates, levies and charges – 61%
Grants, subsidies, contributions and donations – 15% Rental income – 1% Interest and investment revenue – 1% Other income – 1%
2016/17 2017/18 2018/19 2019/20 2020/21
Recurrent Revenue
152.9
147.5
157.4
150.6
158.4
Recurrent Expenditure
136.2
133.1
140.6
143.6
145.6
Operating Surplus
16.7
14.4
16.8
7.0
12.8
PA G E 8
WESTERN DOWNS REGIONAL COUNCIL ANNUAL REPORT 1 JULY 2020 TO 30 JUNE 2021
