2021-03-09 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                       9 MARCH 2021


The NAC’s performance in the first half of 2020/21 was significantly impacted by COVID-19
restrictions, particularly in Q1 when the restrictions were more severe than in Q2. During the most
severe period of restrictions, the number of patrons permitted within the facility at any given time was
heavily curtailed, and normal programming involving large groups of people was prohibited.
Restrictions eased with time and by the commencement of term 3 (late September), the centre was
able to operate in a relatively normal manner.

Revenue performance compared to previous typical years was impacted by the restricted nature of
operations, however, significantly outperformed budget as a result of the previously mentioned
budget adjustments. In total, YTD revenue was down approximately $100k (11%) compared to the
same period in previous typical years (note: 2019/20 was also a heavily disrupted year due to the
maintenance closure over winter and as such comparisons against this period are largely worthless).

Despite the restrictions and the overall decline in revenue, it was pleasing to note that many revenue
streams performed strongly and limited declines to less than 10%. Retail sales for the period actually
exceeded 2017/18’s result by 6% and squad revenue was significantly up due to a change in
operating model (the program is back in-house after a period of being operated by external
contractors). Admission fee revenue declined by closer to 30% which is consistent with expectations
for an activity that is more heavily utilised by casual users rather than members or pass holders.
Café lease revenue was down significantly as a result of rent relief granted by Council.

Expenditure finished the period approximately $25k (1.8%) over the $1,377,591 budget. This was
predominately caused by higher than anticipated electricity, instructor and retail cost of goods sold
(COGS) expenses, all of which were more than offset by revenue outperformance.

The below comparison of the past four years’ half-yearly financial performance data reveals that
admission fees, learn to swim and lease revenue were the areas most impacted by COVID-19. There
were no major employee benefits cost savings realised during the period due to redeployment of
staff during restricted operations and then the need for extra staff to assist with implementation of
various COVID-safe practices upon reopening, and the transition to in-house provision of junior
squad programs.




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