What do financial statements show?
Our financial statements provide an insight into the City of Melbourne's financial health. Our financial statements show:

• how Melbourne City Council and its subsidiaries performed during the year
• the value of assets held by Melbourne City Council
• the ability of Melbourne City Council to pay its debts.

How are the financial statements audited?
These financial statements are prepared in accordance with the Local Government Act 1989 (Vic) and the Australian Accounting Standards. They are audited by the Victorian Auditor-General, approved in principle by Melbourne City Council's Audit Committee and by the Melbourne City Council. These auditing measures ensure the information provided is correct. Melbourne City Council has received a clear audit of its financial statements for 2008-09.

What is in the financial statements?
The financial statements consist of four financial reports, explanatory notes supporting the reports and endorsement from the Melbourne City Council and the Victorian Auditor-General. The four financial reports are:

• income statement
• balance sheet
• statement of cash flows
• statement of changes in equity.

The explanatory notes detail the Melbourne City Council's accounting policies and the make-up of values contained in the statements.

Consolidated and council statements
Our financial statements show our results for the last two years in two columns. Our subsidiary companies are companies owned by the Melbourne City Council but managed independently. Subsidiary companies included in our financial statements are:

• CityWide Service Solutions
• the Queen Victoria Market
• the Melbourne Wholesale Fish Market.

Melbourne City Council has 100 per cent ownership of these subsidiaries. Our Sustainable Melbourne Fund Trust is also included in the consolidated financial reports, but this is a trust and not a subsidiary company.