Financial Update December 2015

Council’s 2014-15 Annual Financial Statements were formally adopted on 11 November 2015.

Council’s 2014-15 Annual Financial Statements were formally adopted on 11 November 2015. Our auditors, Deloitte, have again issued an unqualified audit opinion that Council’s financial accounts for the 2014-15 financial year are represented fairly, in all material respects, and that Council’s financial performance for the year ended in accordance with accepted accounting standards and legislative requirements.

This is five consecutive years of obtaining unqualified audits with Deloitte which continues Council’s desired goal of preserving an unqualified audit position, and reflects well on the efforts of Council staff to provide a foundation of confidence in the ability to provide accurate and timely financial management and reporting.

This year has seen a positive return for Council with an operating surplus of $1.46M, and net surplus of $4.30M, compared to an operating deficit of $3.67M, and net deficit of $1.58M last financial year. This result whilst very positive is unlikely to be sustainable in the short term.

After adjusting for any unusual receipts and expenses the Council was able to deliver a net surplus position compared to a deficit last year. 

The Kangaroo Island Council continued its commitment to long term financial planning and to taking steps towards securing its long-term financial sustainability during the year.

Kangaroo Island Council will continue to face long term challenges in its quest for financial sustainability. This is in part caused by our large asset base which is projected to exceed $200M by 30 June 2016, with depreciation of around $4.5M and our low population base.  In accordance with the Australian Accounting Standard and Deloitte, Council continues to investigate innovative ways to better manage its large asset base and minimise its depreciation costs.

During the 2014-15 financial year, Council continued to work on a Long-Term Financial Plan (LTFP) that targets a ‘break-even’ position within the next 10 year planning period. The 2014 plan was adopted by Council in November 2014 and during December 2015, a Council Informal Gathering was conducted to review this document taking into consideration the impact of the Kangaroo Island Airport Upgrade.  The Audit committee has endorsed the reviewed LTFP and this will be presented to the January 2016 Council meeting for adoption.

The following graph shows Council’s Operating Surplus Position.

Finance Update Dec 2015

 

Kangaroo Island Council | 43 Dauncey St (PO Box 121) KINGSCOTE SA 5223
Phone: 08 8553 4500 | Fax: 08 8553 2885 | Email: kicouncil@kicouncil.sa.gov.au
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