2019-03-12 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                           12 MARCH 2019


Ticket sales and commission received were a combined $9,887 below budget, mainly due to
budget profiling and one event being rescheduled to the second half of the year. Employee cost
recoveries (revenue received from on charging employee costs to facility hirers) performed poorly
against budget and finished the period $21k behind target. This is in part due to budget profiling,
with reasons for the remaining difference not immediately obvious. Management are continuing
investigations into this to try and prevent any further performance issues.

YTD expenditure is under budget by $17,868, resulting in a net YTD financial position for the
facility of $23,439 over budget. Roughly half the expenditure savings relate to electricity savings
generated by the recently installed rooftop solar system. The remaining amount can be attributed
to small variances in tech costs, cleaning costs and general materials purchases.

While the variable nature of The J’s business can lead to a level of unpredictability, management
are continuing to monitor performance and are confident of pulling back a reasonable amount of
the current revenue shortfall in the second half of the year.

The past 4 years’ half-yearly financial results below shows a reduction in revenue for the first half
of 2018/19 compared to 2017/18. While this is disappointing, it should be highlighted that
2018/19’s result is still significantly higher than both 2015/16 and 2016/17.

Historical half-yearly financial performance – The J

                                                  2015/16 YTD          2016/17 YTD          2017/18 YTD          2018/19 YTD
Revenue                                    actuals as at 31 Dec actuals as at 31 Dec actuals as at 31 Dec actuals as at 31 Dec
40032 - Other - Sales - Equipment Hire              (24,360.00)          (20,970.47)          (28,262.25)          (26,658.15)
40034 - Lease Revenue                               (38,819.78)          (39,959.76)          (41,412.50)          (48,872.50)
41103 - Other - Sales - Bar & Kiosk Sales           (43,032.72)          (62,248.03)          (70,968.00)          (63,864.34)
41154 - Venue Hire                                  (82,789.26)          (91,964.52)          (95,977.94)         (103,525.18)
42000 - Other - Commission Received                 (23,087.48)          (28,300.28)          (35,158.60)          (34,296.84)
42017 - Other - Sales - Tickets                       (7,812.55)           (6,931.87)         (10,114.12)            (5,530.26)
42032 - Other - Sundry Recoupment                     (2,310.62)           (4,445.20)           (7,414.76)           (4,187.62)
42043 - Other - Misc - Photocopying and Printing        (461.70)           (1,344.92)           (1,322.52)           (1,204.41)
42044 - Other - Misc - Employee Cost Recoveries     (40,568.14)          (39,901.79)          (64,591.12)          (52,695.17)
42046 - Other - Misc - Telephone Transaction Fee        (388.55)             (470.85)             (731.76)             (524.43)
42050 - Marketing Recoupment/Recovery                       0.00             (257.73)           (2,394.12)           (1,350.00)
                                                       (263,631)            (296,795)            (358,348)            (342,709)


Controllable expenses
6EX01 - Employee Benefits                         195,047.53            217,230.78            229,413.23            248,385.93
6EX03 - Materials & Services                      137,044.70            182,234.15            203,186.87            188,196.33
6EX06 - Other Expenses                                149.72                  0.00                512.10                530.00
                                                     332,242               399,465               433,112               437,112

Net operating result                                 -68,611              -102,670               -74,765               -94,403


Uncontrollable expenses
6EX04 - Depreciation & Amortization               137,255.40            119,397.44            119,362.56            125,611.26
6EX12 - Internal Charges                          100,218.12             99,756.73            150,014.66            130,200.60
                                                     237,474               219,154               269,377               255,812

Total operating result                              -306,085              -321,824              -344,142              -350,215




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