Million-dollar turnaround forecasted
An about $1million positive turnaround in the books was the highlight of the South Waikato District Council’s Audit, Risk, and Improvement committee meeting in Tokoroa today (9 October 2024).
The committee heard the organisation is evidencing a better financial position than what had been forecasted for the year when they received the Draft 2023-24 Annual Report Financial Information report.
The report showed the original forecast indicated a budget deficit of $1.174 million but that was now estimated to be just a $6k year-end deficit for the 2023-24 Annual Report period.
The $6k deficit compares well to last year’s final $6m deficit position.
The draft annual report and draft summary report are still undergoing audit, and staff checks which may still alter the final position, but the improved position is welcomed by Mayor Gary Petley.
“The finances are moving in the right direction and that is a positive. These results do not happen by accident. We have worked hard, made tough decisions and we are performing much better than we were 12 months ago.
“The Council has agreed we would no longer borrow to operate, and this report shows we are moving towards a balanced budget scenario in line with our Long Term Plan.
“I congratulate our Chief Executive Susan and her staff for this improved position and acknowledge that long-term financial decisions and strategy adopted by our Council in the 2024-34 Long Term Plan need to continue to be followed to bring the further results we want for this District.”
During a challenging operating year, the Council experienced an increase in costs but managed to offset the rises through savings, operational efficiencies, and some unexpected revenues/grants. Through the year, Council has completed additional work in roading maintenance and completed a significant asset upgrade program.
The final Annual report is expected to be presented to the full Council for adoption at their 27 November meeting.
Live stream recordings of the Audit, Risk and Improvements committee can be found at https://www.southwaikato.govt.nz/our-council/agenda-and-minutes/live-streaming.
Audit, Risk and Improvement Committee reports available to the public can also be found on the Council website.
