Financial Statements

Statement of Cash Flows

For the year ended 30 June 2014

    Council Group
  Note Actual
2014
$000
Budget
2014
$000
Actual
2013
$000
Actual
2014
$000
Actual
2013
$000
CASH FLOWS FROM OPERATING ACTIVITIES            
Receipts from rates - Council (excluding metered water)   234,890 233,551 225,077 234,890 225,077
Receipts from water rates by meter   12,086 13,333 11,373 12,086 11,373
Receipts from rates- Greater Wellington Regional Council   48,575 50,341 46,517 48,575 46,517
Receipts from activities and other Income   137,052 108,056 116,087 151,890 134,271
Receipts from grants and subsidies - Operating   5,189 7,251 6,913 16,446 11,168
Receipts from grants and subsidies - Capital   37,129 42,495 45,938 39,253 46,377
Receipts from investment property lease rentals   11,174 9,220 13,508 11,174 13,649
Cash paid to suppliers and employees   (276,384) (260,882) (254,770) (310,507) (285,646)
Rates paid to GWRC   (48,828) (50,341) (50,410) (48,828) (50,410)
Grants paid   (32,341) (29,389) (32,811) (25,743) (22,959)
Income tax paid   - - - (15) -
Net GST (paid) / received   (609) - (455) (1,487) (1,246)
NET CASH FLOWS FROM OPERATING ACTIVITIES   127,933 123,635 126,967 127,734 128,171
             
CASH FLOWS FROM INVESTING ACTIVITIES            
Dividends received   12,079 9,898 10,922 12,079 10,922
Interest received   2,240 10 1,642 2,491 1,856
Decrease in bank investments   - - - - 1,532
Proceeds from sale of property, plant and equipment   4,088 15,075 3,492 4,088 3,492
Loan advance made   (300) - - (300) -
Increase in investments   (20,683) - (123) (20,683) (523)
Purchase of investment properties   (781) - (92) (781) (92)
Purchase of intangibles   (1,788) (3,305) (4,877) (1,859) (4,886)
Purchase of property, plant and equipment   (125,147) (154,413) (122,260) (126,976) (122,962)
NET CASH FLOWS FROM INVESTING ACTIVITIES   (130,292) (132,735) (111,296) (131,941) (110,661)
             
CASH FLOWS FROM FINANCING ACTIVITIES            
New borrowings   86,197 29,967 156,360 86,197 156,360
Repayment of borrowings   (55,000) - (129,000) (55,000) (129,000)
Interest paid on borrowings   (20,654) (20,866) (21,264) (20,654) (21,264)
NET CASH FLOWS FROM FINANCING ACTIVITIES   10,543 9,101 6,096 10,543 6,096
             
Net increase/(decrease) in cash and cash equivalents   8,184 - 21,767 6,335 23,606
Cash and cash equivalents at beginning of year   44,389 2,622 22,622 50,518 26,912
CASH AND CASH EQUIVALENTS AT END OF YEAR 10 52,573 2,622 44,389 56,853 50,518

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 ring fenced cash of $24.320m 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 116 to 198 form part of and should be read in conjunction with these financial statements.

Statement of Cash Flows – continued

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 2014
$000
2013
$000
2014
$000
2013
$000
Net surplus for the period   27,465 28,187 30,988 30,444
           
Add/(deduct) non-cash items:          
Vested assets 4 (8,468) (10,519) (8,468) (10,519)
Bad debts written off not previously provided for 6 101 46 101 46
Depreciation and amortisation 7 95,860 91,148 96,841 91,958
Impairment of property, plant and equipment 6 458 - 458 -
Fair value changes in investment properties 17 7,661 (5,385) 7,661 (5,385)
Other fair value changes   (375) (850) (375) (566)
Movement in provision for impairments of doubtful debts   (322) (179) (333) (217)
Tax expense   - - 392 22
Non-cash movement in provisions   (65) 15,852 (65) 15,851
Total non-cash items   94,850 90,067 96,211 91,144
           
Add/(deduct) movement in working capital: 1          
Trade and other receivables   12,390 5,066 12,312 5,506
Prepayments   3,405 (837) 3,421 (942)
Inventories   (94) (9) 85 118
Trade and other payables   (1,095) 1,262 (702) 1,127
Revenue In advance   700 (484) (397) (751)
Employee benefit liabilities   (737) (1,115) (689) (1,243)
Provision for other liabilities   (18,000) (4,997) (17,945) (4,993)
Total working capital movement   (3,431) (1,114) (3,914) (1,178)
           
Add/(deduct) investing and financing activities:          
Net (gain)/loss on disposal of property, plant and equipment   1,861 1,127 1,782 1,162
Dividends received   (12,079) (10,922) (113) (94)
Interest received   (2,240) (1,642) (2,383) (1,863)
Tax paid   - - (15) -
Interest paid on borrowings   21,507 21,264 21,507 21,261
Subvention payment   - - (209) -
Share of equity accounted surplus in associates   - - (16,120) (12,705)
Total investing and financing activities   9,049 9,827 4,449 7,761
           
Net cash flow from operating activities   127,933 126,967 127,734 128,171
  1. Excluding non-cash items


The notes on pages 116 to 198 form part of and should be read in conjunction with these financial statements.