Financial ReportFOR THE PERIOD ENDING 31 MARCH, 2014

Index

Contents:

Executive Summary)))))))))))))))))))))))))))))))))).3

Cash Flow)))))))))))))))))))))))))))))))))).3

Operating Progress Graphs))))))))))))))))))...)))).4

Capital & Projects Summary)))))))))))))))))).))))))))))))))6

Capital & Project Expenditure Progress Graph)))))))))))))))))).7

Summary of Major Variations))))))))))))))))))...8

Operating Statement))))))))))))))))))...)))).9

Capital Expenditure Summary))).))))))))))))))).11

Capital Income Summary))))))))...))).)))))))))))))))))))12

Cash & Investments))))))..)))))))))))))...)))))))))).13

Debtor Report))))))..))))))))))))))))))).14

Flood Graph))))))..)))))))))))))))))))..))))))).15

Executive Summary as at March 31, 2014

It should be noted that this report only reflects spending to March 31, 2014.

The forecast shows a favourable movement YTD of $1.2 million in closing cash held.

It is projected that the Council will end the year with $4.3 million cash.

Cash Flow Statement as at March 31, 2014

Total

Forecast

Budget

2013-14

Variations to

Budget

Fav (Unfav)

$`000 $`000 $`000 $`000

Operating ActivitiesRevenue

Rates & Charges (10,645) (14,248) (14,348) (100)

Operating Grants (3,695) (5,655) (8,040) (2,385)

Fees & User Charges (1,948) (2,164) (2,279) (115)

Contributions (527) (663) (872) (209)

Other Revenue (262) (302) (259) 43

Total Revenue (17,077) (23,032) (25,798) (2,766)

Expenses

Employee Costs 9,163 12,503 12,861 358

Call on Defined Benefits 0 0 2,099 0

Materials & Services 7,638 11,391 9,398 (1,993)

Borrowing Costs 108 163 307 144

Other Expenses 560 780 781 1

Total Expenses 17,469 24,837 25,446 609

Major Emergency OperationsRevenue

Operating Grants (63) (596) (382) 214

Fees & User Charges 0 0 0 0

Contributions (2) 0 0 0

Other Revenue (21) (17) 0 17

Major Emergency Revenue (86) (613) (382) 231

Expenses

Employee Costs 208 136 137 1

Materials & Services 564 434 245 (189)

Major Emergency Expenses 772 570 382 (188)

Net Operating 1,078 1,762 (352) (2,114)

Investing Activities Capital Expenditure 4,704 8,487 7,239 (1,248)

Capital Grants (4,035) (3,834) (3,327) 507

Capital Income (152) (329) (339) (10)

Capital Contributions (101) (406) (100) 306

Net Investing Activities 416 3,918 3,473 (445)

Major Emergency Restoration Activities Capital Expenditure 2,109 2,565 1,925 (640)

Capital Grants (3,270) (2,005) (1,925) 80

Net Major Emergency Restoration (1,161) 560 0 (560)

Financing Activities New Loans 0 (1,000) (2,600) (1,600)

Principal Repayments 288 380 553 173

Net Trust Movement (1) 0 0 0

Net Financing Activities 287 (620) (2,047) (1,427)

Net Movements for Year 620 5,620 1,074 (4,546)

Opening Cash 9,891 9,891 4,127 5,764

Closing Cash 9,271 4,271 3,053 1,218

Actuals to

March 31, 2014

3

0% 20% 40% 60% 80% 100%

Rates & Charges

Operating Grants

Capital Grants

Fees & User Charges

Contributions

Other Revenue

Total Revenue

% Through Year

Ordinary Operating Revenue Progress

0% 20% 40% 60% 80% 100%

Employee Costs

Materials & Services

Borrowing Costs

Other Expenses

Total Expenses

% Through Year

Ordinary Operating Expenditure Progress

4

0% 20% 40% 60% 80% 100%

Operating Grants

Capital Grants

Other Revenue

Total Revenue

% Through Year

Flood Operating Revenue Progress

0% 20% 40% 60% 80% 100%

Employee Costs

Materials & Services

Total Expenses

% Through Year

Flood Operating Expenditure Progress

5

Programs Actuals Forecast % Complete Remaning

Major Emergency Restoration 2,535,141 2,769,740 92% 8%

Roads 2,718,682 3,881,550 70% 30%

Bridges 134,697 365,000 37% 63%

Building 667,063 2,507,155 27% 73%

Drainage 37,429 157,010 24% 76%

Open Spaces 143,548 204,630 70% 30%

Land & Land Improvements - 5,700 0% 100%

IT 179,612 453,260 40% 60%

Plant, Vehicles & Equipment 931,384 1,379,000 68% 32%

Projects 1,143,139 1,995,634 57% 43%

Total Capital & Projects 8,490,695 13,718,679 62% 38%

% Through Year 91.00 365.00 75% 25%

2013/14 Capital Program

Capital Projects 4,704,318 8,487,385

Expensed Projects 1,251,236 2,461,554

2013/14 Major Emergency Restoration

Capital Projects 2,108,706 2,564,550

Expensed Projects 426,435 205,190

Total Capital & Projects 8,490,695 13,718,679

Capital & Projects Summary

6

0% 20% 40% 60% 80% 100%

Major EmergencyRestoration

Roads

Bridges

Building

Drainage

Open Spaces

Land & LandImprovements

IT

Plant, Vehicles &Equipment

Projects

Total Capital & Projects

% Through Year

Capital & Project Expenditure Progress

7

Forecast

Variation

(Fav)/Unfav

Variations to Operating Activities

Expenses

Delay in recruitment, meeting changed to normal work hours not overtime and

administrative efficiencies(114,580)

Decrease in expected training requirements in 2013/14 (59,210)

Waste audit no longer required in 13/14 (15,000)

Increase in water utilities for Stawell and St Arnaud due to low rainfall in

catchment areas for harvested water system34,000

Efficiency savings in environment and community protection (14,440)

Renew Goldfield reservoir St Arnaud pipeline due to break in pipeline 15,500

Decrease in principle repayments due to a decrease in borrowings for 13/14 (157,000)

Revenue

Decrease in expected fee income for Taylors Gully Childcare Centre up to 30

June 2014100,000

Decrease in expected fee income for St Arnaud Children's Precinct up to 30

June 2014100,000

Variations to Capital and Projects

Delay in transfer station development (96,000)

Funded Capital and Projects included in variations (no net impact on cash)

St Arnaud Pool Project - Grant received from RDV (40,000)

Halls Gap Skate Park - Funding to be received next year 390,000

Town Hall Entertainment Centre - No funding received 45,000

Resources for new non-smoking areas around children - Grant received from the

Department of Health

(5,000)

Discussion:

The area previously listed as Flood has been changed to Major Emergency.

Following the recent fires we are now seeing the related financial effect of the

recovery works coming through the accounts.

Summary of Major Variations for March 2014

8

Operating Statement as at March 31, 2014 75% Through the Year

YTD

Committed

Actuals Forecast

Adopted

Budget

% Actuals to

Forecast

Revenue

Rates & Charges

Residential (6,352,479) (6,350,000) (6,437,000) 100%

Farm/Rural (3,580,481) (3,581,000) (3,584,000) 100%

Commercial (881,389) (881,000) (955,000) 100%

Industrial (275,283) (274,000) (65,000) 100%

Cultural & Recreational (12,053) (12,000) (12,000) 100%

Municipal Charge (1,030,531) (1,030,000) (1,039,000) 100%

Garbage Charge (2,125,512) (2,120,000) (2,256,000) 100%

Rates & Charges (14,257,728) (14,248,000) (14,348,000) 100%

Grants Capital

Capital Grants (6,307,569) (5,838,925) (5,252,000) 108%Grants Capital (6,307,569) (5,838,925) (5,252,000) 108%

Grants Operating

Untied Grants (2,412,698) (3,216,925) (5,885,000) 75%

Aged & Disability Services Grants (488,582) (640,666) (640,666) 76%

Child Care Grants (271,879) (320,228) (338,728) 85%

Other Grants (168,624) (228,890) (177,600) 74%

Disaster Recovery Grants (63,295) (614,880) (382,200) 10%

Economic Development Grants (257,468) (1,066,034) (789,200) 24%

Environmental Grants (10,000) (100,000) (50,000) 10%

Public Safety Grants (47,910) (63,709) (158,709) 75%

Grants Operating (3,720,455) (6,251,332) (8,422,103) 60%

User Fees

Aged and Disability Service Fees (368,094) (538,616) (538,616) 68%

Child Care Fees (329,433) (518,300) (618,300) 64%

Other Fees (110,218) (153,910) (143,010) 72%

Leisure Fees (246,397) (328,000) (328,000) 75%

Building Fees (78,244) (120,901) (120,901) 65%

Local Law Fees (56,088) (114,415) (120,415) 49%

Economic Development Fees (13,025) (12,302) (41,100) 106%

Rental Income (54,735) (70,960) (70,960) 77%

Public Health Fees (79,682) (90,817) (81,817) 88%

Planning Fees (38,007) (41,613) (41,613) 91%

Private Works Infrastructure (118,867) (57,600) (57,600) 206%

Waste Management Fees (106,606) (116,500) (116,500) 92%

User Fees (1,599,396) (2,163,934) (2,278,832) 74%

Contributions

Contributions Child Care (398,984) (497,950) (579,450) 80%Contributions Other (120,129) (125,320) (101,620) 96%

Contributions Debt Collectors (10,021) (40,000) (40,000) 25%Contributions to Capital (103,559) (405,700) (250,500) 26%

Contributions (632,693) (1,068,970) (971,570) 59%

Other Revenue

Interest Income (239,903) (234,600) (183,100) 102%

Other Revenue (43,396) (84,096) (76,112) 52%

Other Revenue (283,299) (318,696) (259,212) 89%

Revenue (26,801,140) (29,889,857) (31,531,717) 90%

9

Operating Statement as at March 31, 2014 75% Through the Year

YTD

Committed

Actuals Forecast

Adopted

Budget

% Actuals to

Forecast

Expenses

Employee Benefits

Salary & Wages 8,068,292 10,898,347 11,036,840 74%

Superannuation 770,996 1,082,353 1,078,853 71%

LSL Provision Movement 234,720 314,296 312,946 75%

Training 79,566 145,390 243,850 55%

Workcover 106,435 108,262 235,002 98%

Fringe Benefit Tax 29,142 90,000 90,000 32%

Employee Benefits 9,289,150 12,638,648 12,997,491 73%

Materials & Services

Other Materials and Services 1,058,840 1,789,192 1,357,317 59%

Contractors 2,742,976 4,681,391 3,363,036 59%

Fuel 551,879 696,000 696,000 79%

Equipment Mtc & Repair 425,690 627,200 631,900 68%

Contract Employees 464,176 687,571 468,964 68%

Utilities 292,457 502,550 468,550 58%

Insurance 334,165 334,200 356,300 100%

Cost of Goods Sold 126,603 215,134 230,000 59%

Software Costs 154,542 315,200 329,400 49%

Contributions - Reciprocal 217,468 317,600 224,800 68%

Communications 195,413 328,490 294,090 59%

Professional Advice 95,928 283,260 191,550 34%

Advertising 30,312 71,640 70,690 42%

Printing 84,269 155,520 150,020 54%

Audit Fees 6,790 80,940 100,550 8%

Minor Equipment 27,247 66,180 62,690 41%

Memberships & Subscriptions 152,714 181,425 176,725 84%

Uniforms & Protective Clothing 48,624 82,970 82,970 59%

Security Expenses 41,143 68,300 68,300 60%

Catering 27,631 49,830 49,430 55%

Postage & Freight 24,846 47,300 47,300 53%

Bank Fees 43,480 57,600 49,800 75%

Office Supplies 22,312 42,380 41,380 53%

Legal Expenses 38,502 93,150 83,600 41%

Leases 24,833 34,295 31,395 72%

Recruitment & Retention Expenses 7,692 15,850 15,850 49%

Materials & Services 7,240,531 11,825,168 9,642,607 61%

Depreciation

Depreciation 0 6,587,000 6,587,000 0%Depreciation 0 6,587,000 6,587,000 0%

Finance Costs

Borrowing Costs 107,732 163,300 307,100 66%Finance Costs 107,732 163,300 307,100 66%

Other Expenses

Contributions - Non Reciprocal 391,117 527,829 518,829 74%

Councillor Allowances 139,213 172,220 182,020 81%

Other Expenses 20,631 79,612 79,612 26%

Other Expenses 550,961 779,661 780,461 71%

Expenses 17,188,373 31,993,777 30,314,659 54%

Other Income Statement Items

Proceeds of Asset Sales (152,189) (329,000) (339,000) 46%

Written Down Value of Assets Sold 0 329,000 339,000 0%Other Income Statement Items (152,189) 0 0

Operating Statement (9,764,955) 2,103,920 (1,217,058)

10

Capital & Project Expenditure Summary as at March 31, 2014

YTDYTDYTDYTD

ActualsActualsActualsActuals

(incl(incl(incl(incl

Commitments)Commitments)Commitments)Commitments) ForecastForecastForecastForecast

AdoptedAdoptedAdoptedAdopted

BudgetBudgetBudgetBudget

%%%%

CommittedCommittedCommittedCommitted

totototo

ForecastForecastForecastForecast

02 - Capital02 - Capital02 - Capital02 - Capital

1112 - B - Roads - Aerodrome Program 361,129.52 652,970 0 55

1101 - B - Roads - Final Seal Program 383,084.40 390,600 400,000 98

1110 - B - Roads - Footpaths Program 85,618.96 109,900 50,000 78

1100 - B - Roads - Kerb & Channel Program 3,334.00 10,000 0 33

1102 - B - Roads - Major Rural Roads Program 233,987.32 432,890 275,000 54

1104 - B - Roads - Resealing Program 478,783.29 519,510 500,000 92

1105 - B - Roads - Resheeting Program 760,154.18 800,000 800,000 95

1106 - B - Roads - Rural & Residential Program 115,658.56 201,000 130,000 58

1111 - B - Roads - Streetscapes 2,313.28 79,680 61,000 3

1107 - B - Roads - Town Street Sealing Program 188,996.42 165,000 0 115

1108 - B - Roads - Transport Dev Program 24,396.00 40,000 40,000 61

1109 - B - Roads - Urban Rd Improvement Program 46,936.98 50,000 50,000 94

1103 - B- Roads - Rehabilitation Program 34,289.24 430,000 430,000 8

1113 - C - Bridge & Major Culverts Program 134,697.49 365,000 365,000 37

1115 - D - Building Program 667,062.93 2,507,155 1,925,000 27

1116 - E - Drainage Program 37,429.09 157,010 260,000 24

1122 - F - Open Spaces Program 143,547.55 204,630 80,000 70

1120 - G - Land & Land Improvement Program 0.00 5,700 96,000 0

1119 - H - IT Program 179,612.27 453,260 347,000 40

1118 - H - Plant, Vehicles & Equipment Program 931,383.98 1,379,000 1,430,000 68

1121 - J - Projects 1,143,138.50 1,995,634 1,005,000 57

Total 02 - CapitalTotal 02 - CapitalTotal 02 - CapitalTotal 02 - Capital 5,955,553.965,955,553.965,955,553.965,955,553.96 10,948,93910,948,93910,948,93910,948,939 8,244,0008,244,0008,244,0008,244,000 54545454

04 - Emergency Capital04 - Emergency Capital04 - Emergency Capital04 - Emergency Capital

0232 - 01/11 DSE Flood Program Open Spaces 3,840.00 0 0 0

0246 - 01/11 FRRR Funding 16,861.42 16,700 0 101

0228 - 01/11 Natural Disaster Fund Drainage 80,688.92 75,000 75,000 108

0224 - 01/11 Natural Disaster Fund Open Spaces 14,773.94 10,000 10,000 148

0223 - 01/11 Natural Disaster Funding - Bridges 473,038.23 600,000 600,000 79

0230 - 01/11 Natural Disaster Funding - Public 256,182.78 85,000 85,000 301

0222 - 01/11 Natural Disaster Funding - Roads 762,640.37 1,399,550 840,000 54

0225 - 01/11 Natural Disaster Funding Building 93,983.05 100,000 0 94

0238 - 01/11 RRD Flood Recovery - Public Assets 85,520.59 83,490 0 102

0245 - 01/14 Fire Events NDF - Roads 485.00 0 0 0

0241 - 12/11 Natural Disaster Fund - Drainage 180,407.72 0 0 0

0239 - 12/11 Natural Disaster Fund Open Spaces 536,114.61 0 0 0

0247 - 12/11 Natural Disaster Funding - Public 19,590.00 0 0 0

0237 - 12/11 Natural Disaster Funding - Roads 4,935.00 400,000 400,000 1

0236 - 12/11 Natural Disaster Funding-Buildings 6,079.00 0 0 0

Total 04 - Emergency CapitalTotal 04 - Emergency CapitalTotal 04 - Emergency CapitalTotal 04 - Emergency Capital 2,535,140.632,535,140.632,535,140.632,535,140.63 2,769,7402,769,7402,769,7402,769,740 2,010,0002,010,0002,010,0002,010,000 92929292

Grand TotalGrand TotalGrand TotalGrand Total 8,490,694.598,490,694.598,490,694.598,490,694.59 13,718,67913,718,67913,718,67913,718,679 10,254,00010,254,00010,254,00010,254,000 62626262

11

Capital & Project Revenue Summary as at March 31, 2014

Level 2Level 2Level 2Level 2

YTDYTDYTDYTD

ActualsActualsActualsActuals

(incl(incl(incl(incl

Commitments)Commitments)Commitments)Commitments) ForecastForecastForecastForecast

AdoptedAdoptedAdoptedAdopted

BudgetBudgetBudgetBudget

%%%%

CommittedCommittedCommittedCommitted

totototo

ForecastForecastForecastForecast

02 - Capital02 - Capital02 - Capital02 - Capital

1112 - B - Roads - Aerodrome Program (291,000.00) (830,000) 0 35

1101 - B - Roads - Final Seal Program 0.00 0 (205,000) 0

1110 - B - Roads - Footpaths Program (22,727.27) (22,700) 0 100

1102 - B - Roads - Major Rural Roads Program (100,000.00) (100,000) (100,000) 100

1105 - B - Roads - Resheeting Program (1,256,459.00) (1,269,110) (1,073,000) 99

1106 - B - Roads - Rural & Residential Program 0.00 (40,000) (40,000) 0

1111 - B - Roads - Streetscapes (56,000.00) (61,000) (61,000) 92

1103 - B- Roads - Rehabilitation Program 0.00 0 (430,000) 0

1113 - C - Bridge & Major Culverts Program 0.00 0 (365,000) 0

1115 - D - Building Program (1,040,833.20) (1,421,395) (1,058,000) 73

1116 - E - Drainage Program (100,000.00) (100,000) 0 100

1122 - F - Open Spaces Program (262,960.43) (306,920) (80,000) 86

1120 - G - Land & Land Improvement Program 0.00 (34,000) 0 0

1119 - H - IT Program (10,500.00) (28,000) (15,000) 38

1118 - H - Plant, Vehicles & Equipment Program (152,189.10) (295,000) (339,000) 52

1121 - J - Projects (245,468.19) (1,044,834) (870,000) 23

Total 02 - CapitalTotal 02 - CapitalTotal 02 - CapitalTotal 02 - Capital (3,538,137.19)(3,538,137.19)(3,538,137.19)(3,538,137.19) (5,552,959)(5,552,959)(5,552,959)(5,552,959) (4,636,000)(4,636,000)(4,636,000)(4,636,000) 64646464

04 - Emergency Capital04 - Emergency Capital04 - Emergency Capital04 - Emergency Capital

0220 - 01/11 Natural Disaster Funding Income (2,448,200.00) (1,710,000) (1,610,000) 143

0238 - 01/11 RRD Flood Recovery - Public Assets (58,027.83) (57,160) 0 102

0244 - 12/11 Natural Disaster Funding Income (821,616.00) (400,000) (400,000) 205

Total 04 - Emergency CapitalTotal 04 - Emergency CapitalTotal 04 - Emergency CapitalTotal 04 - Emergency Capital (3,327,843.83)(3,327,843.83)(3,327,843.83)(3,327,843.83) (2,167,160)(2,167,160)(2,167,160)(2,167,160) (2,010,000)(2,010,000)(2,010,000)(2,010,000) 154154154154

Grand TotalGrand TotalGrand TotalGrand Total (6,865,981.02)(6,865,981.02)(6,865,981.02)(6,865,981.02) (7,720,119)(7,720,119)(7,720,119)(7,720,119) (6,646,000)(6,646,000)(6,646,000)(6,646,000) 89898989

12

Cash as at March 31, 2014

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

2010 - 11 4,108,977 3,380,170 4,390,875 5,956,830 6,418,103 5,185,086 5,712,022 7,937,181 6,348,651 7,470,547 11,613,931 11,355,339

2011 - 12 9,416,162 13,093,578 12,949,527 11,438,448 10,745,215 9,318,919 7,825,894 8,989,318 11,332,058 9,336,073 10,007,682 10,927,450

2012 - 13 9,722,961 11,709,370 11,434,765 10,096,131 9,040,666 10,951,119 8,265,197 9,409,944 11,083,587 8,180,547 10,416,917 9,950,999

2013 - 14 8,439,050 7,800,087 10,147,368 9,447,599 10,772,743 9,212,877 7,633,096 10,992,081 9,603,386

Amount Rate Term

Operating Account 2.00%

Long Service Leave Floating Rate TCD 3.62% 91 days

Long Service Leave At Call 9,106 2.40%

Fixed Term Deposit 3.25% 31 days

Fixed Term Deposit 3.25% 30 days

24 at Call Account 2.40%

24 at Call Account - FLOOD 2.40%

Total Cash Balance 2.91% Weighted Average Interest Rate

1,485,435

9,603,386

Total Cash Balance at Month End

Weighted Average Interest Rate as at March 31, 2014

Maturity Date

769,222

2,000,000

1,589,622

23-April-2014

1,000,000 22-April-2014

2,750,000 17-April-2014

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Dollars

Month

Cash Balance - Comparison Between Years2011 - 12

2012 - 13

2013 - 14

13

Debtor Summary as at March 31, 2014

Rates Debtors YTD

$ %

Current 3,356,799 78%

Arrears 972,984 22%

Total 4,329,783 100%

Sundry Debtors YTD

$ %

Current 326,114 80.6%

30 Days -23,035 -5.7%

60 Days 5,951 1.5%

90 Days or Greater 95,641 23.6%

Total 404,672 100%

Details:

90 Days or Greater $23,932 - Stawell industrial property: Chemical spill clean up costs

$54,553 - St Arnaud business: Loan Repayments and Monthly Rent

Childcare Debtors YTD

$ %

Current 12,257 24.7%

30 Days 8,778 17.7%

60 Days 5,138 10.3%

90 Days or Greater 23,507 47.3%

Total 49,679 100%

It should be noted that the 2013/14 rate debtors include Fire Service Property Levy (FSPL) to be collected

on behalf of the State Revenue Office. An amount of $1,630,474 FSPL was raised for 2013/14.

As at 31 March $393,043 remains outstanding.

Current 30 Days 60 Days 90 Days or Greater

Current Arrears

Current 30 Days 60 Days 90 Days or Greater

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Dollars

Month

Rate Debtors - Comparison Between Years

2011/12 2012/13 2013/14

14

-

5,0

00,0

00

10,0

00,0

00

15,0

00,0

00

20,0

00,0

00

25,0

00,0

00

30,0

00,0

00

35,0

00,0

00

40,0

00,0

00

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Oct-13

Nov-13

Dec-13

Jan-14

Feb-14

Mar-14

Amount $

Date

Flood Income & Expense Summary

Exp

ense

Incom

e

15