2021-09-07 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                  7 SEPTEMBER 2021


1.     FINANCIAL PERFORMANCE
The objective of all services within the Community Facilities branch is to balance the demands of
access, equity and community service obligations with sound financial management and improving
revenue through innovative and entrepreneurial approaches, whilst minimising operational costs.
NCS operates under funding agreements with both the State and Federal governments. The
requirements of the various funding agreements dictate that NCS should aim to perform to a ‘zero
bottom line’ standard, i.e. that all funding received should be fully expended on relevant programs
and services.
As per last year, while Covid-19 had a major impact on the team’s operations and their ability to
deliver certain services, this didn’t translate to a reduction in revenue because of the nature of the
bulk funding agreements in place at NCS. Funding bodies again advised of their willingness to be
flexible in how funding was expended during Covid-19.
NCS finished the year with a reported actual surplus of nearly $51k, however, it is expected that
this will reduce as year-end figures continue to be finalised. While revenue was down on budget
by $130k due to a reduction in fees and charges as a result of restricted programming, this was
fully offset by $202k of expenditure savings. Expenditure savings were realised in employee costs
and contractor services, again mainly as a result of restricted programming.

NCS interim financial performance as at 30 June 2021

 Statement of Income and Expenses          2020-21        2020-21       2020-21        %
                                           Original        YTD            YTD        Current       YTD
                                           Budget         Budget        Actuals      Budget      Variance
 Total Revenue                              2,635,171     2,764,741     2,634,594      95.3%         (130,148)
 Total Expenditure                          2,635,171     2,786,020     2,583,182      92.7%          202,838
 Net Result - Surplus/(Deficit)                       0    (21,278)       51,411                       72,690


 Total Revenue                              2,635,171     2,764,741     2,634,594      95.3%         (130,148)
 Direct Costs (Controllable)
     Employee Benefits                      1,520,099     1,520,099     1,457,629      95.9%           62,470
     Finance Costs                                    0             0      5,723      100.0%           (5,723)
     Materials & Services                    610,269       761,117       626,440       82.3%          134,678
     Other Expenses                               541          541           549      101.5%               (8)
 Subtotal Direct Costs (Controllable)       2,130,909     2,281,758     2,090,341      91.6%          191,417
 Operating Surplus/Deficit                   504,262       482,984       544,253                     (321,565)
 Indirect Costs (Corporate)
     Depreciation & Amortization               34,642       34,642        34,642      100.0%                0
     Internal Charges                        469,620       469,620       458,199       97.6%           11,420
 Subtotal Indirect Costs (Corporate)         504,262       504,262       492,842       97.7%           11,420
 Net Result - Surplus/(Deficit)                       0    (21,278)       51,411                       72,690

*Please note figures are interim financial results only as final figures were not available at the
time of compiling this report.




                                                                                       Page 34 of 55