Audit report reveals council surplus of $4.3 million

The result was announced at this week's historic "electronic" Council meeting after an audit of the Council's general purpose financial statements and special purpose (water and sewerage) financial statements conducted by the NSW Audit Office and their contract agents, Crowe.

Brad Bohun of Crowe presented the result at Tuesday's "electronic" meeting.

Council finished the previous year with a $7.1 million deficit.

Mr Bohun said the result was driven by Stronger Communities Funding, additional grant funding and Roads and Maritime Services fees.

Council received Stronger Communities Funding of $3.5 million during the year.

"Those three (factors) combined really drove the year on year result," Mr Bohun said.

Without these factors the council result "was in the negative" to the tune of $2.9 million.

Council's previous year's result was close to a deficit of $10 million if grant funding was excluded, Mr Bohun explained.

One of the biggest cost to council for the year was maintaining the shire's road network in its existing state.

READ ALSO:

In terms of debt Mr Bohun said the council had only limited borrowings in terms of its size which saw it carrying $2.6 million in debt which is small compared to its peers.

"Cash is king" in the current environment, Mr Bohun said.

At the end of 2019 Mr Bohun said council had $27 million in cash and cash equivalent which he described as "quite a healthy level" but added some of this was subject to "external restrictions" such as water and sewer meaning the money had to be spent on what it is raised for.

Internal restrictions, including money set aside for projects, he said, also restrict how council can spend the money.

Council had unrestricted cash of around $3.3 million.

"That would indicate you can pay your debts as and when they fall due, council's carrying a low level of debt.

"Overall council received a clean audit result," Mr Bohun said.

WHAT DO YOU THINK?