DON'T USE - Old Finance

Frankston City Council prepares its financial statements in accordance with the requirements of the Local Government Act 2020, the Local Government (Planning and Reporting) Regulations 2020, the Australian Accounting Standards and other mandatory professional reporting requirements. Victorian Local Government authorities are required to follow the prescribed format of the model financial report issued by Local Government Victoria to ensure standardised financial reporting across the sector.

The quarterly progress (January to March 2022) provides a summary and analysis of Council's financial performance for the nine (9) months to March 2022. It is designed to ensure consistency with the 2021-2022 revised budget, compliance with statutory requirements and to measure Council’s overall financial performance.

The impact of COVID-19 has had a significant impact on Council’s financial result for the first nine months of the financial year. Council continue to review expenditure to identify areas to offset the COVID-19 financial impacts.

Council’s income is forecast to be 1.4% lower than the revised budget and expenditure is forecast to be 1.5% lower than the revised budget. Explanations for these variances are provided above.

Lockdowns and restrictions imposed due to Covid-19 had a significant impact on Council’s financial result but, investment in initiatives and targeted efficiency savings to keep costs as low as possible whilst continuing to deliver services valued by the community should allow us to close FY22 with a surplus slightly behind the revised budget.

Why do Councils need a surplus?

Council is a not-for-profit organisation. The surplus shown in these figures is not a “cash” surplus, but an operating surplus which allows funds to be invested in current and future capital works programs and initiatives to achieve its Council Plan outcomes. It also takes into account non-cash items such as depreciation.