Draft Annual Report Year ended 30 June 2015

Operating result Operational result on budget $700,000 better than forecast We have spent what we said we would.

Capital Expenditure Capital expenditure reduced to match funding Cash flow $5.9m better off than budget Repaid debt instead of borrowing

Year end result - funding Note: Does not include non-cash asset write downs and revaluations

Journey of understanding our finances Late 2013 introduced new financial framework 2014 provided clarity of: – Self funding reserves – Airport debt – Under funding of services 2015 – continue to clarify Council finances focusing on accounting treatment of fixed assets

Non-cash adjustments to fixed assets Asset management practices are being reviewed post the merger of asset management systems High emphasis from Audit following change in accounting standards – Expenditure waiting to be capitalised – Economic assessment of existing assets Adjustments have a non cash impact on our annual report result.

Example of some non cash items

Financial Statements – restated