| Standard statement of cash flows - comparison report |
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|
| Ref. |
Item |
Commentary |
| 1 |
Depreciation and amortisation |
This favourable variance is related to the capital works program not being fully spent and a revaluation adjustment to infrastructure assets in the previous year. |
| 2 |
Loss/(profit) on sale of assets |
The disposal of the Drill Hall resulted in a loss that was unbudgeted. |
| 3 |
Contributed assets |
Contributed infrastructure assets from the Docklands development (including first-time recognition of land under roads) and contributed assets from the Commonwealth Games Village was unbudgeted. |
| 4 |
Recognition of increase in investments |
A revaluation of investment properties conducted showed no major change in the value of council’s investment properties. This reflects the current state of the commercial property market. |
| 5 |
Transfer assets to external parties |
Park assets and land on Gosch’s paddock transferred to external parties was unbudgeted. |
| 6 |
Net movement in working capital |
At the 30 June 2009 ‘payables’ were lower than budgeted, reflecting creditor payments. |
| 7 |
Capital expenditure |
Higher external capital contributions for projects resulted in higher capital expenditure. |
| 8 |
Payment from CityWide loan |
The cash inflow relates to repayments by council’s subsidiaries. |
| 9 |
Proceeds from sale of assets |
The higher inflow of funds represents proceeds from the sale of council’s properties and fleet vehicles. |
| 10 |
Investment in Sustainable Melbourne Fund |
Unbudgeted investment in Sustainable Melbourne Fund. |
| 11 |
Finance costs |
A change in the classification of finance costs from an ‘operating expense’ to a ‘financing activity’ in the cash flow statement – in accordance with accounting requirements – resulted in this variance. Finance costs relating to insurance and bank charges were budgeted in the income statement. |
