Stage two is underway in Central Coast Council’s Business Recovery Plan, previously called the 100-Day Recovery Action Plan.
Council’s focus continues to be on reducing expenditure, arranging financing, raising additional income, monitoring incoming cash flow, performing cash flow forecasts and ensuring a more sustainable cash preservation.
Spending of $7M will be reallocated after the ongoing financial review showed that these capital items should have been funded from Waste, Water and Sewer Funds rather than the General Fund, to better reflect the use of those items.
Council has identified more than $30M worth of property assets that may be considered for sale within the next 12 months.
Any sale of assets would need to be a resolution of Council.
Council is also working with its financiers to organise additional financial arrangements.
Interim Administrator, Dick Persson, said he was determined to get to the bottom of the financial situation and was keen to progress solutions as soon as possible.
“This is a difficult time for our community, our staff and the Central Coast,” he said.
“Council is continuing to monitor our cash position, payments and restrictions, and communicating with suppliers.
“I am pleased that we have appointed such a competent Chief Financial Officer and I look forward to working with her in the months ahead.
“We are determined to meet all our obligations to our staff, suppliers and the community,” Persson said.
KPMG has been formally engaged to complete the forensic audit.
The initial phase of engagement is expected to be completed by Friday, November 13, and historic analysis will take a further six to eight weeks, with findings available mid to late January 2021.
Source:
Media release, Nov 9
Central Coast Council