The Douglas Shire will start the new year with an opening bank balance of $15.75 million, $6 million more than the Queensland Treasury Corporation’s estimate in June last year.

The numbers were released after Cairns Regional Council (CRC) tabled its final statements for the 2012-13 financial year today, signalling the separation of finances between Cairns and Douglas councils.

Douglas Transfer Manager Jeff Tate described the news as “an important milestone”.

“The project of the joint Financial Due Diligence Working Group has been a very intensive process to examine the income and expenditure of Cairns Regional Council in great detail from the time of amalgamation in 2008 to 30 June 2013,” he said.

“Further work will be required to carry out the same exercise for the period 1 July 2013 to 31 December 2013. That work will take place after de-amalgamation on 1 January 2014 and should be completed in mid-March.”

The $15.75 million, endorsed by an independent review, will be less de-amalgamation costs owed to CRC, with a further financial adjustment to happen after the results for the six months to December 31 2013 are released. 

"To achieve an opening bank balance of $15.75 million as opposed to the Queensland Treasury Corporation estimate of $9 million is a fantastic result,” said CRC Division 10 Cr and DSC Mayor-elect Julia Leu.

“Despite dire predictions, the new Council will start the year with cash at bank and I am enormously encouraged by this outcome. Finances will however need to be constantly monitored and as Mayor I will ensure a conservative approach in order to be financially responsible and sustainable.

"I congratulate Jeff Tate and all staff involved with the financial due diligence working group on such a great result,," she said. 

“It needs to be recognised that the project just undertaken is very different in scope and detail to the work by QTC in late 2012." Mr Tate explained.

"The QTC work was done over a short time period of about four weeks, whereas this project has taken a group of approximately six (full time equivalent) people five months to work through. And whereas the QTC work was based on high level percentage splits of the 2012/13 CRC budget and financial statements back to 2008, this joint project has been much more detailed to analyse the actual income and expenditure over that period.”

“On a like-for-like basis, de-amalgamation costs are expected to be about $1 million less than the $4.45 million estimated by QTC. However, that $1 million is likely to be required to meet the costs of staff redundancies,” Mr Tate said.

“A $4m cash advance facility is available from QTC and some or all of it may be taken up depending on our cash flow requirements. If the cash advance facility is taken up, it has to be repaid by 31 December 2014."

The process identified $61 million had been spent on capital works in Douglas since amalgamation.