Environment Southland releases end of year financial result

Environment Southland has ended the year in a more positive financial position than budgeted in the midst of challenging economic conditions, with better than expected returns on investment income.

The 2023-24 draft financial results were released this week for review by the Finance and Performance Committee, which met to discuss these on Wednesday 11 September.

Environment Southland Chairman Nicol Horrell said the draft full year operating results were positive, with the actual deficit of $4.7m being better than the budgeted operating deficit of $5.5m, subject to end of year adjustments.

With the inclusion of Government Funded Projects and the investment income, the total full year surplus position is $9.6m against a budget of $10.3m. This mainly represents money received from government to co-fund the construction of the Climate Resilience Projects, that will be completed this year.

Income from investments for the year exceeded the budget by $2.1m, generating $7.65m, against a budget forecast of $5.51m. Of this, $1.64m was on paper only, reflecting the value of the portfolio at year end.

The 2023-24 year had thrown up significant challenges through high inflation and higher interest rates, and the council was not immune to these pressures. A prudent approach to budgeting had allowed the council to keep its work programmes on track during the year, Nicol Horrell said.

The report presented to the Finance and Performance Committee covers the draft results for the year ended 30 June 2024. The final results will be made available once the annual audit is completed and the Annual Report adopted in October.

ENDS

For more information, contact the communications team on 0800 76 88 45 or email communications@es.govt.nz