Council’s auditor has praised its financial performance for the year ending June 2015 which resulted in an operating surplus of $327,000.

Council’s financial position continues to remain sound with total equity increasing to $599,324,000 for the 2015 - an increase from the $579,552,000 in 2014.

John O’Malley from Intentus Chartered Accountants addressed council at its last meeting saying ‘the books are in a healthy position’ and deserving of the status issued by the Independent Pricing and Regulatory Tribunal (IPART) as being fit for the future.  

The Auditor's presentation to Council finalises the Annual Financial Statements process for 2014/15 financial year. 

“This is a very good result and reflects the work Council has done over the past few years to improve and consolidate its financial position,” Mr O’Malley told the council.

He went on to say that Parkes' ratios and key measures were positive and largely better than the industry averages.

"Many councils were not able to adequately address the shortfall left after the Federal Government's cessation of the pre-payment method for the annual Financial Assistance Grants.

However, Parkes has not only met that challenge, but has returned a surplus both before and after grants are taken into account,” he said.

Mr O’Malley also said Parkes' debt service cover ratio and unrestricted current ratio were well above benchmark levels.

“The debt service cover ratio measures the availability of operating cash to service debt and the higher the number, the greater the ability to service debt,” he said.

“The benchmark level is 2.0 times coverage, whereas Parkes' ratio is nearly 12 times coverage.”

Mr O’Malley said Parkes' unrestricted current ratio was also strong, with $2.50 of short-term assets available to cover each $1 of liability.

“Council has been above the benchmark of $1.50:1 for the past four years, indicating sufficient liquidity and is comfortably able to satisfy its debts as and when they fall due,” he said.

Other key observations from the audit included a net cash outflow of $23 million spent on the community's infrastructure, property, plant and equipment as well as all reporting and disclosure obligations being satisfied. 

Mr O’Malley extended his thanks to the Council staff who assisted with the audit process for working diligently in preparing a very satisfactory set of books for audit.  

“I make special mention of the work relating to the calculations associated with the roads assets revaluation which was undertaken in the period under review,” he said. 

“I have pleasure in advising that there are no issues that would cause me to qualify my report and that I further believe the financial statements are a true and fair reflection of the year's activities." Mr O'Malley concluded.

Such was the thoroughness of the presentation that Mr O'Malley received no questions from Councillors and the report was adopted unanimously. 

With a solid tick from the Auditor, the details of the year's results can know be advertised for public comment.