Audited financial statements of the former Young Shire Council presented at the last Hilltops Council meeting, showed the former council had been doing very well fiscally.
The financial statements presented a sound financial outcome for each of the former Councils.
However, Hilltops Council General Manager Anthony McMahon advised some caution in interpreting the statements.
“As an example, each of the Council’s achieved operating surpluses, however, the statements only reflect 10 and a half months’ expenditure versus 12 months’ income, “ Mr McMahon said.
“That anomaly does make the bottom line surplus appear much better.”
The reason for the anomaly between income and expenditure reporting periods is due to the amalgamation timing and directive from the government on the accounting standards to be used.
“The timing issue has resulted in a positive impact for the last financial year,” Mr McMahon said.
“But that will conversely result in a negative impact at the end of the current financial year which will again include reporting on income for a 12-month period but will include expenditure over a 13 and half month period.”
According to the audited financial statements presented by Council’s auditors Crowe Howarth Chartered Accountants the former Young Shire Council had profited $9,218,000 in their final term between July 1, 2015, and May 12, 2016.
Comparing this the to the previous year between July 1, 2014, and June 30, 2015, where the council had only made $2,709,000 the council’s profit margin had increased by $6,509,000.
Young Shire Council’s total income for the 2015 – 2016 period was reported as $29,438,000 compared to $27,008,000 in the previous year.
The Council’s assets had also increased in the 2015 – 2016 period with plant and equipment, infrastructure and property having increased in value by nearly $6 million from the previous year to result in $216,221,000 for the last financial period.
Revenue from rates and annual charges had also gone up resulting in almost a million dollars more revenue.
However, there was just under $2 m less revenue from user fees and charges over the 2015 - 2016 financial period.