Financial Statements

Statement of Cash Flows


For the year ended 30 June 2013

    Council Group
  Note Actual
2013
$000
Budget
2013
$000
Actual
2012
$000
Actual
2013
$000
Actual
2012
$000
             
CASH FLOWS FROM OPERATING ACTIVITIES            
             
Receipts from rates - Council (excluding metered water)   225,077 226,745 218,440 225,077 218,440
Receipts from water rates by meter   11,373 12,822 12,356 11,373 12,356
Receipts from rates - Greater Wellington Regional Council   46,517 - 43,789 46,517 43,789
Receipts from activities and other income   116,087 105,417 102,336 134,271 116,109
Receipts from grants and subsidies - operating   6,913 6,831 7,452 11,168 12,744
Receipts from grants and subsidies - capital   45,938 45,765 55,644 46,377 51,720
Receipts from investment property lease rentals   13,508 9,166 13,333 13,649 13,481
Cash paid to suppliers and employees   (254,770) (240,674) (243,401) (285,646) (266,379)
Rates paid to Greater Wellington Regional Council   (50,410) - (44,703) (50,410) (44,703)
Grants paid   (32,811) (29,328) (38,932) (22,959) (29,739)
Income tax paid   - - - - (49)
Net GST (paid)/received   (455) - 1,260 (1,246) 1,310
             
NET CASH FLOWS FROM OPERATING ACTIVITIES   126,967 136,744 127,574 128,171 129,079
             
CASH FLOWS FROM INVESTING ACTIVITIES            
             
Dividends received   10,922 9,298 22,436 10,922 22,426
Interest received   1,642 10 951 1,856 1,110
Decrease in bank investments   -   - 1,532 -
Proceeds from sale of property, plant and equipment   3,492 - 2,023 3,492 2,023
Increase in investments   (123) - (2,240) (523) (2,630)
Purchase of investment properties   (92) - (150) (92) (150)
Purchase of intangibles   (4,877) (4,563) (4,677) (4,886) (4,693)
Purchase of property, plant and equipment   (122,260) (151,574) (151,994) (122,962) (153,052)
             
NET CASH FLOWS FROM INVESTING ACTIVITIES   (111,296) (146,829) (133,651) (110,661) (134,966)
             
CASH FLOWS FROM FINANCING ACTIVITIES            
             
New borrowings   156,360 31,662 158,299 156,360 158,299
Repayment of borrowings   (129,000) - (129,000) (129,000) (129,000)
Interest paid on borrowings   (21,264) (21,577) (20,241) (21,264) (20,332)
             
NET CASH FLOWS FROM FINANCING ACTIVITIES   6,096 10,085 9,058 6,096 8,967
             
Net increase/(decrease) in cash and cash equivalents   21,767 - 2,981 23,606 3,080
Cash and cash equivalents at beginning of year   22,622 19,641 19,641 26,912 23,832
             
CASH AND CASH EQUIVALENTS AT END OF YEAR 10 44,389 19,641 22,622 50,518 26,912
             

Wellington City Council acts as a collection agency for Greater Wellington Regional Council (GWRC) by including additional rates and levies in its own billing process. Once collected, the monies are passed to GWRC. The budget assumes that the inflows and outflows will offset each other and are shown as nil accordingly.

The Council has ringfenced cash of $14.075 million relating to the housing upgrade project and waste activities; this has been offset against borrowings. See Note 21: Borrowings for more information.

The notes on pages 110 to 188 form part of and should be read in conjunction with these financial statements.

The net surplus from the Statement of Comprehensive Financial Performance is reconciled to the net cash flows from operating activities in the Statement of Cash Flows as follows:

Reconciliation of net surplus to net cash flows from operating activities   Council Group
  Note 2013
$000
2012
$000
2013
$000
2012
$000
Net surplus for the period   28,187 62,186 30,442 49,962
           
Add/(deduct) non-cash items:          
         
Net vested assets/expense 4 (10,519) (7,163) (10,519) (7,191)
Bad debts written-off not previously provided for 6 - 78 - 78
Depreciation and amortisation 7 91,148 88,537 91,958 89,356
Fair value changes in investment properties 17 (5,385) 3,418 (5,385) 3,418
Other fair value changes   (850) 100 (566) 30
Movement in provision for impairment of doubtful debts   (179) (72) (217) (72)
Tax expense   - - 22 81
Non-cash movement in provisions   15,852 9,887 15,851 9,887
           
Total non-cash items   90,067 94,785 91,144 95,587
           
Add/(deduct) movement in working capital:25          
Trade and other receivables   5,066 (16,249) 5,507 (17,682)
Prepayments   (837) (8,342) (941) (7,978)
Trade and other payables   1,262 6,422 1,127 7,592
Revenue in advance   (484) 1,569 (751) 1,140
Inventories   (9) 268 118 94
Employee benefit liabilities   (1,115) 993 1,243) 1,103
Provision for other liabilities   (4,997) (4,441) (4,993) (4,378)
           
Total working capital movement   (1,114) (19,780) (1,176) (20,109)
           
Add/(deduct) investing and financing activities:          
Net loss / (gain) on disposal of property, plant and equipment   1,127 (6,471) 1,162 (6,470)
Dividends received   (10,922) (22,436) (94) -
Interest received   (1,642) (951) (1,863) (1,110)
Interest paid on borrowings   21,264 20,241 21,261 20,332
Share of equity accounted surplus from associates   - - (12,705) (9,113)
           
Total investing and financing activities   9,827 (9,617) 7,761 3,639
           
Net cash flow from operating activities   126,967 127,574 128,171 129,079
           

The notes on pages 110 to 188 form part of and should be read in conjunction with these financial statements.

25Excluding non-cash items.