The Finance Team…The Finance Team…

The Finance Department includes The Finance Department includes the following staff:the following staff:•Anna Bartlett – Finance ManagerAnna Bartlett – Finance Manager•Marc Cassidy – Rates OfficerMarc Cassidy – Rates Officer•Jenni Elso – Payroll OfficerJenni Elso – Payroll Officer•Narelle Greenwood – Finance OfficerNarelle Greenwood – Finance Officer•Maryanne Stone – Accounts Payable Maryanne Stone – Accounts Payable OfficerOfficer•Sheryl Wright – Debtors OfficerSheryl Wright – Debtors Officer

Our Role…Our Role…The Finance Department plays an important The Finance Department plays an important

partpartin day to day Council operations. For example:in day to day Council operations. For example:• Can you imagine what it would be like to Can you imagine what it would be like to

work without an operating budget?work without an operating budget?• What if you didn’t receive your wages on a What if you didn’t receive your wages on a

timely basis?timely basis?• What if our suppliers of goods and services What if our suppliers of goods and services

were not paid on time?were not paid on time?• Or, if there were no funds in Council’s bank Or, if there were no funds in Council’s bank

account to pay your wages??account to pay your wages??

Operating BudgetOperating Budget• Every year the Finance Department is Every year the Finance Department is

responsible for the completion of a Annual responsible for the completion of a Annual Budget followed by a Mid Year Budget Review Budget followed by a Mid Year Budget Review

• The Budget is split into eight The Budget is split into eight functions/activities:functions/activities:• CommunityCommunity• Health & Human ServicesHealth & Human Services• Economic DevelopmentEconomic Development• Culture & HeritageCulture & Heritage• Recreation & LeisureRecreation & Leisure• TransportTransport• Waste & Environment Waste & Environment • AdministrationAdministration

Operating BudgetOperating Budget

• Council has a current operating revenue Council has a current operating revenue budget of approximately $32 million budget of approximately $32 million dollars. dollars.

• Of this $32 million, $30 million is allocated Of this $32 million, $30 million is allocated towards operating expenditure including towards operating expenditure including over $10 million for Council’s capital works over $10 million for Council’s capital works program. program.

• As you would imagine spending and As you would imagine spending and receiving these funds, involves more than receiving these funds, involves more than just a few transactions…just a few transactions…

Accounts PayableAccounts Payable• Maryanne processes a fortnightly cheque-run Maryanne processes a fortnightly cheque-run • This involves the processing purchase This involves the processing purchase

orders, checking and matching invoices to orders, checking and matching invoices to purchase orders, ensuring invoices are purchase orders, ensuring invoices are accurate and appropriate, then processing accurate and appropriate, then processing invoices for approval and payment.invoices for approval and payment.

• For the current year to date 2,557 creditor For the current year to date 2,557 creditor cheques have been raised totalling $14.09 cheques have been raised totalling $14.09 million dollars.million dollars.

• This is a significant amount of $$, especially This is a significant amount of $$, especially when compared to the 2009/2010 total when compared to the 2009/2010 total which was only $13.64 million in 3,272 which was only $13.64 million in 3,272 cheques. cheques.

Other Payment TypesOther Payment Types

Other payment methods include Other payment methods include Council’s “Advance” cheque account Council’s “Advance” cheque account (for urgent/one-off cheques), (for urgent/one-off cheques), Purchasing Cards, Petty Cash, and Purchasing Cards, Petty Cash, and the occasional EFT transfer and the occasional EFT transfer and Direct Debit using Council’s bank Direct Debit using Council’s bank accountaccount

PayrollPayroll• Jenni processes a fortnightly pay transfer.Jenni processes a fortnightly pay transfer.• Council has approximately 190 employees Council has approximately 190 employees

with an EFT around 140.with an EFT around 140.• Each fortnight individual timesheets must be Each fortnight individual timesheets must be

processed, employees leave entitlements are processed, employees leave entitlements are managed, superannuation is calculated and managed, superannuation is calculated and then paid, other employee deductions are then paid, other employee deductions are processed, and payslips are produced and processed, and payslips are produced and circulated.circulated.

• Each fortnight a pay transfer of around Each fortnight a pay transfer of around $300,000 takes place.$300,000 takes place.

• For 2009/2010 Council’s total employee costs For 2009/2010 Council’s total employee costs amounted to $8.21 million.amounted to $8.21 million.

RatesRates• In 2009/2010 Rates represented 40% of income.In 2009/2010 Rates represented 40% of income.• Council’s total rateable property valuation pool is Council’s total rateable property valuation pool is

currently in excess of $1.368 billion dollars!! currently in excess of $1.368 billion dollars!! • In 2010/2011 Council levied approximately $9.014 In 2010/2011 Council levied approximately $9.014

million in rates and charges to over 8,000 ratepayers. million in rates and charges to over 8,000 ratepayers. • With over 8,000 ratepayers, the Finance Department, With over 8,000 ratepayers, the Finance Department,

in particular Marc, is kept quite busy not only during in particular Marc, is kept quite busy not only during February (when we collect approximately 62% of February (when we collect approximately 62% of Council’s rate revenue) but throughout the year.Council’s rate revenue) but throughout the year.

• Tasks include managing Council’s property database , Tasks include managing Council’s property database , issuing rate notices, handling never-ending ratepayer issuing rate notices, handling never-ending ratepayer queries, collecting and receipting rate payments and queries, collecting and receipting rate payments and following up on outstanding monies owed to Council.following up on outstanding monies owed to Council.

DebtorsDebtors

• In addition to Rates, Council’s other main In addition to Rates, Council’s other main income streams are Grants (37% of income streams are Grants (37% of income in 2009/2010) and User Charges, income in 2009/2010) and User Charges, Fees & Fines (11%).Fees & Fines (11%).

• The receipting of these revenue items The receipting of these revenue items generally involves the issuing of invoices, generally involves the issuing of invoices, and monthly statements, with these and monthly statements, with these processes being performed by Sheryl. processes being performed by Sheryl.

• Sheryl also handles all debtor related Sheryl also handles all debtor related queries, and follows up on unpaid invoices queries, and follows up on unpaid invoices on a regular basis. on a regular basis.

Financial ReportingFinancial Reporting• Narelle and myself perform regular reporting of Narelle and myself perform regular reporting of

financial transactions including the following:financial transactions including the following:• A monthly BAS, and an annual FBT returnA monthly BAS, and an annual FBT return• Monthly Account Management reports comparing Monthly Account Management reports comparing

budgeted against actual results budgeted against actual results • Monthly Council Finance Report Monthly Council Finance Report • Monthly Executive Finance Report with detailed Monthly Executive Finance Report with detailed

variance analysis of income, expenditure and variance analysis of income, expenditure and capital works programscapital works programs

• An annual financial report which is subject to An annual financial report which is subject to audit by the Victorian Auditor General’s Officeaudit by the Victorian Auditor General’s Office

• We also assist with and complete a number of We also assist with and complete a number of other ad hoc financial reports, and acquittals other ad hoc financial reports, and acquittals each yeareach year

Hopefully after this presentation you willHopefully after this presentation you willhave a better understanding of the Financehave a better understanding of the FinanceDepartments role, in particular:Departments role, in particular:

The significant transactions which we deal with The significant transactions which we deal with on a daily basison a daily basis

The role we play in relation to financial The role we play in relation to financial reporting and accountabilityreporting and accountability

How important it is to have an effective finance How important it is to have an effective finance department to ensure money is in the bank, department to ensure money is in the bank, bills are paid on time and I guess most bills are paid on time and I guess most importantly, that you all are paid on time!!importantly, that you all are paid on time!!

Any questions??Any questions?? Thankyou Thankyou