2021-09-07 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                        7 SEPTEMBER 2021


By end of year, revenue was 12% ahead of budget, while expenditure was roughly 2% below budget.
Overall, the centre finished $67k ahead of the net budgeted position, a strong result given the
significant impact and uncertainties of Covid-19.
All revenue streams performed strongly against budget, however, a comparison to previous years’
performance paints a more meaningful picture. When compared to the three-year average across
2016/17 to 2018/19, revenue performance as a whole was down around 38%, with that level of
reduction fairly consistent across most revenue streams. The one exception was lease revenue
which was down only 10% on the average as a majority of rental payments were made in line with
budget throughout the year.
Expenditure finished the year broadly in line with budget expectations. When compared to three-
year averages, materials and services costs tracked roughly 31% under the three-year average
which is reflective of savings made in areas directly related to hosting performances. Employee costs
were down 7% on the three-year average, with only minor labour savings made because staff were
largely redeployed or working on behind the scenes tasks during operating restrictions.
The comparison of historical financial performance below clearly shows the negative impact of
Covid-19 on revenue from 2019/20 onwards. While some expenditure savings have been achieved
during Covid, they have not been sufficient to fully offset the negative revenue impacts and therefore
the operating performance of the venue has understandably deteriorated over the past two years.
Despite this, staff remain committed to running the venue as efficiently and effectively as the
operating conditions allow for.
The J historical financial performance – 2016/17 to 2020/21
                                                    2016/17     2017/18     2018/19     2019/20       2020/21
Revenue                                             actuals     actuals     actuals     actuals       actuals
40025 - Misc Fees - Venue Catering                    2,240         127           0           0             0
40032 - Other - Sales - Equipment Hire               42,323      55,644      54,931      47,758        38,957
40034 - Lease Revenue                                81,372      88,825      91,759      84,976        78,887
41103 - Other - Sales - Bar & Kiosk Sales           120,015     141,696     125,955      81,394        73,288
41154 - Venue Hire                                  164,521     187,961     192,983     143,570        95,118
42000 - Other - Commission Received                  46,122      60,278      55,173      38,467        28,400
42017 - Other - Sales - Tickets                      27,749      26,684      21,956       7,116        21,075
42032 - Other - Sundry Recoupment                     4,822      12,359       9,598      10,802         9,108
42043 - Other - Misc - Photocopying and Printing      4,050       3,781       4,521       3,113           250
42044 - Other - Misc - Employee Cost Recoveries      73,944     123,677     110,170      84,817        55,927
42046 - Other - Misc - Telephone Transaction Fee      1,413       1,364       1,207         757           714
42050 - Marketing Recoupment/Recovery                 2,603       5,666       4,690       8,440         5,496
49029 - Internal Recoveries - Venue Hire              1,485           0           0           0             0
                                                    572,658     708,062     672,942     511,210       407,220


Controllable expenses
6EX01 - Employee Benefits                           435,061     462,775     489,231     465,299       431,660
6EX02 - Finance Costs                                     0       (214)       (101)         (26)           36
6EX03 - Materials & Services                        400,108     446,584     397,606     309,742       284,678
6EX06 - Other Expenses                                   74       1,024       1,060       1,084         1,103
                                                    835,243     910,169     887,795     776,099       717,477

Net operating result                               (262,585)   (202,106)   (214,854)   (264,889)     (310,257)


Uncontrollable expenses
6EX04 - Depreciation & Amortization                 241,050     257,369     258,648     266,695       267,185
6EX12 - Internal Charges                            199,305     299,393     263,568     277,808       264,837
                                                    440,356     556,762     522,216     544,503       532,022

Total operating result                             (702,940)   (758,868)   (737,069)   (809,393)     (842,279)

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