Financial Report
Understanding the Financial Report
Council's Finance staff prepare the Financial Statements and follow a statutory approvals process as set out in The Local Government Act 1989. The Financial Statements are based on requirements set out in the Act, Australian Accounting Standards and the Local Government Model Accounts. To produce these Statements the following processes have been undertaken:- Council's Audit Committee met to consider the draft statements and the preliminary recommendation made by the external Auditor, The Audit Committee was satisfied to recommend that the statements be presented to Council.
- Council then considered the Statements, approved them "In Principle", and authorised the Statements be submitted to the Auditor General. The Council also authorised Council's two Audit Committee members, Councillors Morrissey & Kottek to certify the Statements in their final form.
- The Statements were then submitted to the Auditor General for review and certification.
- The Financial, Standard and Performance Statements and all other parts of the Annual Report are lodged with the Minister for Local Government prior to 30 September annually.
For the 2006/2007 financial year, Monash Council has received a clear audit of its Financial Statements.
Financial Statements
The four main Statements are the Income Statement, the Balance Sheet, the Statement of Changes in Equity and the Cash Flow Statement. The notes detail Council's accounting policies and the make-up of values contained in the Statements. The notes should be read in conjunction with the four main statements.
Income Statement
The Income Statement shows the sources of Council's revenue received and the expenditure incurred, under various headings, over the year.
Balance Sheet
The Balance Sheet Statement is a one-page snap shot of the financial situation as at 30 June 2007. It shows what the Council owns as assets and what it owes as liabilities. The bottom line of this Statement is net assets. This is the Council's net worth, which has been built up over many years.
Statement of Changes in Equity
Over the year the value of total equity as set out in the Balance Sheet changes. The Statement of Changes in Equity shows the movement in equity from the profit or loss from operations, the use of monies to and from Council's reserves and the revaluation of fixed assets.
Cash Flow Statement
The Cash Flow Statement summarises Council's cash payments and cash receipts for the year.
Standard Statements
The Local Government Act 1989 also requires Council to produce the Standard Statements. The Standard Statements provide four statements, Standard Income Statement, Standard Balance Sheet, Standard Cash Flow Statement and Standard Statement of Capital Works.
The Standard Statements provide a comparison between the actual results for the year and the budget that was set at the start of the year. All major differences are explained in the accompanying notes.
Financial Statements
Financial Statements for the year ended 30 June 2007 (PDF 5,518 kB)
Published: 22 November 2007
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