Update on council’s financial position post meeting

Published on 21 March 2022

Snowy Monaro Regional Council has taken another step forward in monitoring and finding solutions to the current financial situation, moving from quarterly to monthly reporting being presented at Council meetings.

Councillors were cautioned that during the introductory period of monthly reporting there was less time to respond to identified issues before the information is provided as systems are changed and new processes put into place.

Moving to monthly reports has in some cases led to impacts on the budget that reflect only the need for further work on the budget rather than highlighting a significant issue. The difficulties with getting the first report complete in a short period of time has led to robust discussion at the recent Council meeting on the best way to address reporting in line with Council’s current financial position.

The increased focus on improving the budget position has led to various adjustments needing to be made in relation to the financial year to date, a number of which still need further review. Changes have included several large additional grants being awarded, recognition of costs linked to increased operating grants such as future maintenance of new assets, and the impact of increased electricity costs in providing water supplies.

The operating position has improved significantly, driven by Council gaining more grant funds since the start of the financial year. The focus has been on applying for funding to address the state of the current infrastructure including $3.2million in additional funding towards rural road improvements and maintenance. Further funding for roads is expected as a result of the recent disaster declaration and extension.

Councillors noted the information in the supplied financial reports needs to closely focus on the underlying deficit and cash levels that are funded from general revenue i.e. rates. This cash flow level has deteriorated and needs to be reviewed to ensure an appropriate cash position is achieved at 30 June 2022.

The remaining deficit, after taking out the capital grants, and including depreciation of assets, shows the Council now having a $4.03million deficit, compared to the original budgeted deficit of $4.26million.