Media Release - FOR IMMEDIATE RELEASE
Westland District Council’s 2024 Annual Report was impacted by loss on disposal and impairment of assets during the financial year.
The Council adopted the 2023/2024 Annual Report at today’s extraordinary meeting.
“While the financials report a deficit of $7.7m before tax, this is a reflection of the requirements of the accounting standards that the Council must meet,” says Lesley Crichton, Group Manager Corporate Services and Risk Assurance. “The deficit is due to non-cash items: loss on disposal and impairment of assets during the financial year. The Council’s assets, such as three waters reticulation and plant, are revalued each year. If the Council disposes of an asset during the year it is disposed of at the amount at which it has been revalued, this means that the higher the revaluation the greater the loss recorded. When an asset is identified as impaired, such as Jackson River Road, the Council must also impair it at its valuation which is higher than its cost. Within our financial reports this year, these three items account for $7m of the Council’s loss before tax. This along with some other smaller non-cash items that allow for future costs make up the $7.7 deficit that the Council has reported.”
“Essentially, these key items that impact on the deficit are not cash losses and therefore have no impact on Council’s cash balance as at 30 June 2024. If these non-cash items were excluded from the statements, the result is balanced i.e. the Council’s revenue would be at least equal to its expenditure.”
Investment highlights include the installation and opening of the new playground in Cass Square, the commissioning of the Fox Glacier Water Treatment Plant, completion of the seismic strengthening of the Carnegie Building, completion of the Hokitika Swimming Pool project, and the many Better Off funded community projects such as the maintenance and upgrades of Haast, Okuru, Waitaha, Whataroa and Kokatahi community halls.
Note: The Annual Report will be available on our website soon.
ENDS
Media enquiries to:
Emma Rae, Strategy and Communications Advisor
Emma.rae@westlanddc.govt.nz