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AGENDA OF THE FINANCE AND RISK COMMITTEE MEETING TO BE HELD IN THE BOARDROOM, DELOITTE, PARSONS STREET, ALICE SPRINGS

ON FRIDAY 27TH SEPTEMBER, 2019 AT 10:00AM

1. MEETING OPENED 2. ATTENDANCE AND APOLOGIES Present: Apologies: 3. CONFIRMATION OF MINUTES

Minutes of the Finance and Risk Committee Meeting – 26th July 2019. 4. OFFICERS REPORTS

Financial report as at 31st August 2019 5. MEETING CLOSED 6. DATE OF NEXT MEETING Next meeting – Friday 29h November 2019.

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DRAFT MINUTES OF THE FINANCE AND RISK COMMITTEE MEETING

HELD IN THE BOARDROOM, DELOITTE, PARSONS STREET, ALICE SPRINGS ON FRIDAY 26TH JULY, 2019 AT 10.00 AM

1. MEETING OPENED - 10:02 am

2. ATTENDANCE

Present: Cr Braydon Williams (Chair), Cr Dalton MacDonald, Jeff MacLeod (CEO), Bhan Pratap (DCS), Sheree Sherry (Acting Manager Finance), Elna Dry (Auditor, Deloitte),

Apologies: President Roxanne Kenny (Chair), Deputy President Greg Sharman. 3. CONFIRMATION OF MINUTES

The Minutes of the Finance and Risk Committee Meeting of 29th March 2019 were accepted as a true record. Moved: Cr B Williams, Seconded: Cr Dalton MacDonald. CARRIED

4. OFFICERS REPORTS

Financial report as at 30th June 2019 The financial report for the period ended 30th June 2019 was tabled and discussed by the Director Corporate Services (DCS) which shows a surplus of $12,440,542 which is $14,590,542 above our expected budget at the end of the period. DCS also noted that all year end journal and internal cost adjustment journals have not been actioned for the 2018/19 Financial Year. It is expected that after all adjustments are made the surplus will be around 1.5 M to 2 M. The net cash position on page 7 of the report shows that Council owns $1.9 in current assets for each $1.00 it owes in current liabilities. DCS reported that the larger balance of Accounts Receivable outstanding at 30th June 2019 has the outstanding balance of $13,586. DCS reported that the balance of rates to be received totalled $342,786.

DRAFT MINUTES OF THE FINANCE AND RISK COMMITTEE MEETING HELD IN THE BOARDROOM, DELOITTE, PARSONS STREET, ALICE SPRINGS

ON FRIDAY 26TH JULY, 2019 AT 10.00 AM

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RECOMMENDATION That the Finance & Risk Committee accept and note the Finance Report as at 30th June 2019 Moved: Cr Dalton MacDonald, Seconded: Cr B Williams. CARRIED 5. MEETING CLOSED 10.40 am

6. DATE OF NEXT MEETING – Friday 27th September 2019 at 10:00am at the Council Chamber. THESE PAGES ARE THE DRAFT MINUTES OF THE Finance & Risk Committee Meeting HELD ON Friday 26TH JULY AND UNCONFIRMED.

Finance and Risk Committee 27th September 2019

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OFFICERS REPORTS

ITEM NUMBER 4

TITLE Finance Report as at 31 August 2019

AUTHOR Bhan Pratap, Director Corporate Services

LINKS TO STRATEGIC PLAN Goal 1 – Developing Communities Goal 2 – Liveable Communities Goal 3 – Engaged Communities Goal 4 – A Supportive Organisation

EXECUTIVE SUMMARY: Regulation 18 of the Local Government (Accounting) Regulations (LGA Regs), states that a finance report must be laid before Council or a Committee tasked with reviewing the finance report each month. The attached report is the finance report for Council as at 31st August 2019.

RECOMMENDATION (a) That the Finance & Risk Committee accept and note the Finance Report as at

31st August 2019.

BACKGROUND/DISCUSSION Summary of Income and expenditure. YTD income has variance of ($20m) YTD expenses has variance of $6M Net deficit of ($14) The following table provide further explanation to the above variance.

Account Category

YTD Current Budget

YTD actual Variance Comments

11 - Inc Op Grant (15,041,550) (2,480,440) (12,561,110) The main differences are: Transfer from reserve for Fleet management and brought forward for MES SPG (13%) IAS Community safety grant 8% Transfer from reserve for Bagot St upgrade (8%) SLGIF 2018/19 to upgrade Bagot Street 7% Remote oval upgrade (Haasts Bluff and Papunya) 7%

19 - Gains Sale Ass (4,897,603) 0 (4,897,603)

14 - Inc Comm Serv (6,310,063) (1,707,873) (4,602,189)

15 - Inc Ops (745,568) (547,521) (198,047)

17 - Income Inves (205,997) (8,202) (197,795)

12 - Inc from Op/cap 0 0 0

13 - Inc Cap Grants 0 0 0

18 - Other Income (4,167) (9,516) 5,349

16 - Inc Rates etc. (57,867) (1,981,678) 1,923,812 Rate invoice raised in September 2019, budget shows that 50% to be raised in October and March

Finance and Risk Committee 27th September 2019

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Account Category

YTD Current Budget

YTD actual Variance Comments

21 - Salaries etc 4,262,684 3,154,322

1,108,361 60% of this variance relates to Accrued salary leave expenses and Salary expenses wages being lower the budget.

22 - Empl Benefits 345,839 131,414 214,425

23 - ICA, Lease etc 903,583 112,492 791,091 Main variance relate to Internal costing

(to be posted).

24 - General Exp 1,244,533 394,759

849,774 ICA project management to be costed only once the project is completed. (33%) LA project and roads infrastructure expenses less than the budget (60%)

25 - Communications, 365,628 187,868 177,760

26 - Insurance & Oth 338,033 6,270 331,762

27 - Advertising, Pu 84,858 11,359 73,500

29 - Asset Impair 428,528 0 428,528 Client package expenses no expenses to

date. ISSUES/OPTIONS/CONSEQUENCES This report is presented for Committee’s information and noting. FINANCIAL IMPACT AND TIMING

CONSULTATION Executive Leadership Team Sheree Sherry, Management Accountant Anusha Niro, Quality Assurance Officer

ATTACHMENTS: 1 Finance Report as at 31st August 2019 9 Pages

31/08/2019

31/08/201931/08/2019

Finance and Risk Committee Members:

Roxanne Kenny PresidentGreg Sharman Deputy PresidentBraydon Williams CouncillorDalton McDonald Councillor Jeff MacLeod Chief Executive OfficerBhan Pratap Director Corporate ServicesBuke Ali Tunne Manager FinanceDeloitte Auditors

Accounting Period: 2

MacDonnell Regional CouncilFinancial Reporting - as at

1. Income and Expenditure for the year to 2. Net Cash Position - as at

Page 1 of 10

MacDonnell Regional CouncilIncome and Expenditure as at 31st August 2019

YTD Income YTD Expenditure YTDActual

YTDBudget Full Year Budget

Actual Budget Variance Actual Budget VarianceNet Income /(Expenses)

Net Income /(Expenses)

YTDVariance Income Expenses

Net Income /(Expenses)

Varianceto Full Year

COUNCIL SERVICES

Service Centre Delivery 186,093 1,750,825 (1,564,732) 1,430,168 1,712,307 282,139 (1,244,075) 38,518 (1,282,594) 2,495,260 10,755,920 (8,260,660) 7,016,585

Council Engagement - 1,230,040 (1,230,040) 196,474 423,439 226,965 (196,474) 806,601 (1,003,075) 1,230,040 2,620,430 (1,390,390) 1,193,916

Support and Administration 4,234,089 4,677,872 (443,783) 602,494 542,248 (60,246) 3,631,595 4,135,624 (504,029) 10,970,790 2,220,940 8,749,850 (5,118,255)

Total Council Services 4,420,182 7,658,737 (3,238,555) 2,229,136 2,677,994 448,857 2,191,045 4,980,743 (2,789,698) 14,696,090 15,597,290 (901,200) 3,092,245

NON-COUNCIL SERVICES

Outstations 1,085 1,433,560 (1,432,475) 133,602 438,951 305,349 (132,517) 994,609 (1,127,126) 2,372,590 2,372,590 - (132,517)

Swimming Pools 5,000 6,167 (1,167) 8,320 69,318 60,998 (3,320) (63,151) 59,831 37,000 437,810 (400,810) 397,490

Commercial Operations 398,870 4,252,032 (3,853,161) 578,892 1,201,563 622,671 (180,021) 3,050,469 (3,230,490) 7,171,160 5,044,310 2,126,850 (2,306,871)

Community Services 1,967,000 7,427,256 (5,460,256) 1,518,205 3,585,860 2,067,654 448,795 3,841,396 (3,392,602) 17,124,520 17,124,520 - 448,795Total Non-Council Services 2,371,956 13,119,014 (10,747,059) 2,239,020 5,295,692 3,056,672 132,936 7,823,323 (7,690,387) 26,705,270 24,979,230 1,726,040 (1,593,104)

Total 6,792,137 20,777,751 (13,985,614) 4,468,156 7,973,685 3,505,529 2,323,981 12,804,066 (10,480,084) 41,401,360 40,576,520 824,840 1,499,141

CAPITAL EXPENDITURE

Vehicles, Plant & Equipment - 6,485,063 (6,485,063) 969,389 3,601,527 2,632,138 (969,389) 2,883,536 (3,852,926) 6,986,730 7,811,570 (824,840) (144,549)Surplus / (Deficit) before Non-Cash Expen 6,792,137 27,262,814 (20,470,677) 5,437,545 11,575,212 6,137,667 1,354,592 15,687,602 (14,333,010) 48,388,090 48,388,090 - 1,354,592

NON-CASH EXPENDITURE

Depreciation - - - 356,677 358,333 1,656 (356,677) (358,333) 1,656 - 2,150,000 (2,150,000) 1,793,323

SURPLUS / (DEFICIT) Surplus / (Deficit) 997,914 15,329,269 (14,331,354) (2,150,000) 3,147,914

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MacDonnell Regional CouncilYTD Actual compared to YTD Budget

YTDActual Net Income /(Expenses)

YTDBudget Net Income /(Expenses)

YTDVariance

MacDonnell Regional CouncilExpenditure by Community as at 31st August 2019

Expenditure CategoryAll

Communities AmoongunaAreyonga

(Utju)Docker River (Kaltukatjara) Finke (Aputula)

Haasts Bluff (Ikuntji)

Hermannsburg (Ntaria) Imanpa

Kintore (Walungurru)

Mount Liebig (Watiyawanu)

Papunya (Warumpi)

Santa Teresa (Ltyentye Apurte) Titjikala

Wallace Rockhole

103 - Manage Council Buildings & Facilities 18,485 2,245 50 50 1,561 1,494 437 0 272 50 1,118 5,020 6,188 0105 - Maintain Roads 13,779 0 0 0 0 1,035 12,538 0 0 0 206 0 0 0106 - Manage Council Service Delivery 280,595 15,395 21,251 20,530 24,568 26,569 25,638 18,799 20,474 16,979 23,300 27,207 18,487 21,398107 - Civil Works 592,409 42,147 36,358 48,125 43,299 26,541 64,008 35,690 48,845 48,023 55,611 65,089 52,965 25,709109 - Staff Housing 49,277 0 765 722 3,272 1,571 1,724 415 4,062 3,114 14,238 5,335 13,678 382110 - Outstations Civil Works 25,066 0 0 0 0 0 0 0 0 0 6,757 740 17,569 0111 - Outstations Housing Repairs & Maintenanc 1,246 0 0 0 0 11 0 0 0 0 0 0 1,235 0112 - Operate Community Stores 46,278 46,278 0 0 0 0 0 0 0 0 0 0 0 0113 - Essential Services 157,553 326 13,730 14,104 17,902 14,434 10,928 19,019 7,944 10,340 13,220 13,622 20,767 1,217127 - Operate Swimming Pools 2,459 0 53 0 0 0 0 0 36 0 0 2,370 0 0129 - Community Safety 248,272 23,934 14,388 16,733 21,437 17,398 29,743 13,532 18,069 27,386 11,838 30,147 23,666 0130 - Youth Development 293,231 26,283 9,469 3,554 1,256 34,838 53,873 0 34,326 21,328 36,781 46,145 25,378 0131 - Home Care Services 204,163 18,761 35,393 0 22,485 15,694 32,897 13,506 0 0 34,333 0 31,095 0132 - Children's Services 231,186 0 18,995 19,876 9,333 21,152 35,402 0 22,879 24,669 20,387 31,904 26,589 0133 - Centrelink 74,570 8,437 5,325 6,018 8,331 5,051 3,954 1,794 8,881 8,799 4,437 0 7,284 6,259134 - SNP School Nutrition Program 11,128 0 1,578 0 2,108 2,642 0 667 0 0 0 0 4,134 0139 - Local Authorities 21,847 4,470 0 0 0 0 0 9,299 3,998 0 0 4,080 0 0157 - MES SPG Projects 142,346 0 0 55,217 0 15,304 0 0 0 6,570 18,104 0 47,150 0158 - Manage Projects 11,023 0 0 9,408 0 0 0 0 0 0 1,615 0 0 0161 - Street & Public Lighting 6,896 0 0 0 1,573 0 0 1,138 0 2,605 0 1,580 0 0162 - Airstrip Maintenance 1,000 0 0 0 0 0 0 0 0 1,000 0 0 0 0163 - Homelands Extra Allowance 33,211 0 0 0 0 0 1,324 0 0 0 21,319 0 10,568 0

Total 2,466,020 188,275 157,355 194,338 157,125 183,732 272,464 113,860 169,786 170,862 263,266 233,240 306,751 54,965Population 3,855 239 195 394 192 138 605 151 410 169 404 579 277 102Note:1. All the expenditure above is inclusive of salary and wages2. Expenditure for Head Office is not included

Expenditure per Person 640 788 807 493 818 1,331 450 754 414 1,011 652 403 1,107 539

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MacDonnell Regional CouncilExpenditure by Community as at 31st August 2019

########

################

1

Amoonguna8%

Areyonga (Utju)6%

Docker River (Kaltukatjara)8%

Finke (Aputula)6%

Haasts Bluff (Ikuntji)7%

Hermannsburg (Ntaria)11%

Imanpa5%

Kintore (Walungurru)

7%

Mount Liebig (Watiyawanu)

7%

Papunya9%

Santa Teresa (Ltyentye Apurte)10%

Titjikala12%

Wallace Rockhole2%

Total Year to Date Expenditure by Community Expenditure YTD by Community per Person

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MacDonnell Regional Council Local Authorities Expenditure by Community For the Year To Date

Spent orCommunity Committed Total

Amoonguna 1,000.00 Junkyard beats workshop & Instrument 1,000.00

Areyonga - -

Docker River 131.36 Lime Hydrate 20kg 54 bags 3,744.62 425.78 Softball Team Travel

2,220.66 Food for Community BBQ966.82 Sports Trophies

Finke - -

Haasts Bluff - -

Hermannsburg - -

Imanpa - -

Kintore - -

Mount Liebig - -

Papunya - -

Santa Teresa - -

Titjikala - -

Wallace Rockhole - -

Total Spent or Committed to 31 Aug 2019 4,744.62 Please Note.$4,000 is allocated to each Local Authority to spend as it thinks fit.

The $4,000 must be spent between 1 July and 30 June each year.

If unspent it does not carry forward to the next year.

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Current Assets $ Current Liabilities $Cash at Bank Position Estimated Accrued Employee Benefits 2,282,302 CentreLink 36,883 Accounts Payable Outstanding 271,341 Operations Account 1,183,020 "Pay as You Go" Tax owing to Tax Department 2,496 Territory Housing Bank Account 1,421,016 Unexpended grants 12,109,748 Amoonguna Store 13,437 Grants in Advance 0 Trust Account 497,377 GST Payable 159,317Total Cash at Bank 3,151,733 Plus: Short Term Deposits with Westpac 8,000,000 Short Term Deposits with NAB 16,000,000 Total Cash Available 27,151,733 Plus: Accounts Receivable 225,399 Rates Receivable 2,226,231 Less: Provision for Bad Debts 118,509-

Total Current Assets 29,484,855 Total Current Liabilities 14,825,203

Net Cash Position:Equals = Total Current Assets less Total Current Liabilities

Notes:Current assets = amounts the Council own / Current liabilities = what the Council owes.

MacDonnell Regional Council Estimate of Net Cash Position as at 31/08/2019

$14,659,651

Result = $ held in current assets available to pay current liabilities Actual =

> 1.2 2.0

KPI IMPROVE FINANCIAL SUSTAINABILITY = Divide Total Current Assets by Total Current LiabilitiesAim is to achieve 2 to 1 (baseline June 2011 1.2 to 1) Base =

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MacDonnell Regional Council As at 31 August 2019

0/01/19000/01/1900

7

Current Assets = $2.0, ($29,484,855)

Current Liabilities = $1, ($14,825,203)

Net Cash Position

Current Assets = $2.0

Current Liabilities 

= $1

Target Position

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MacDonnell Regional CouncilACCOUNTS RECEIVABLE - Aged Analysis Summary ReportAs at 31 August 2019

Debtor # Debtor NameOutstanding Amount Current 30 Days 60 days 90 + days

00036 Central Land Council 750 750 0 0 000097 Power and Water Corporation - Darwin 165,790 165,790 0 000098 Tangentyere Employment Services 8,250 0 0 8,250 000114 Tangentyere Constructions 6,200 6,200 0 0 000166 Titjikala Store (Outback Store) 450 450 0 0 000175 Central Desert Regional Council 1,278 1,278 0 0 000192 Pintubi Homelands Health Service 165 165 0 0 0

00264 Ingkerreke Commercial Pty Ltd as trustee for the Ingkerreke Operational Trust 680 170 510 0 0

00274 Territory Families 2,545 2,545 0 0 000297 Murray River North Pty Ltd 2,720 0 2,720 0 0

00304 Warlpiri Media Association Trading as PAW Media and Communications Inc 85 85 0 0 0

00319 Cardno Ullman & Nolan 350 0 0 0 35000400 The AOT Group Pty Ltd 2,040 2,040 0 0 000425 Outback Internet 83 0 0 0 8300474 Clarklec Electrical 85 85 0 0 0

00479 Mutitjulu Community Aboriginal Corporation 2,900 0 2,900 0 0

00536 North Australian Aboriginal Justice Agency 255 255 0 0 0

00553 Sydney Maloney Contracting 100 0 0 0 10000569 Michael Jerome-Smith 415 166 0 0 24900573 ANK Engineering 170 170 0 0 000587 Good Things Foundation Australia 27,500 27,500 0 0 000615 Ontrack Contracting 50 0 0 0 5000620 Remote Area Group Pty Ltd 15 0 15 0 000621 Solahart 1,194 1,194 0 0 000622 AXIOM NTPTY LTD 85 85 0 0 000625 Steele Electrical Pty Ltd 1,245 1,245 0 0 0

225,399 210,172 6,145 8,250 832

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Various Total of over 90 debtors $832 Average of $69 per debtor

Total $832

Total Outstanding Current 2018/19 2017/18 2016/17 2015/16 2014/15 2013/14 2012/13 2011/12

$2,226,231 $1,836,443 $107,519 $91,069 $52,442 $50,105 $58,424 $19,688 $4,198 $4,400

100% 82.5% 4.8% 4.1% 2.4% 2.3% 2.6% 0.9% 0.2% 0.2%

MacDonnell Regional CouncilBalance of Rates Receivable as at 31 Aug 2019

Larger Balances Outstanding > 90 days

Current,  210,172 , 93%

30 Days ,  6,145 , 3%

60 Days,  8,250 , 4%

90+Days,  832 , 0%

Accounts Receivable Age Analysis Summary Report

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