2020-09-08 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                   8 SEPTEMBER 2020


attendance numbers up 11% on the same period last year. Venue hire also performed well
through to the end of March, exceeding YTD budget by $4,705.

Expenditure finished the year approximately $100k under budget, largely due savings in
employee costs, utilities, cleaning and café food costs during the shutdown. Some employee
costs were incurred during this period and these related to staff who were redeployed or
performing alternative duties at NLC.

The comparison of the past five years’ financial performance below reveals a trend of strong
revenue growth through to the point where it was halted in 2019/20 due to the COVID shutdown.
Despite the impact of COVID it is pleasing that the net operating result in 2019/20 is comparable
to that of 2015/16 and 2016/17.

NLC historical financial performance – 2015/16 to 2019/20


                                              2015/16      2016/17      2017/18      2018/19      2019/20
Revenue                                       actuals      actuals      actuals      actuals      actuals
40023 - Miscellaneous Fees & Charges                 0            0            0            0            0
41103 - Other - Sales - Bar & Kiosk Sales      (4,483)            0            0            0            0
41154 - Venue Hire                          (151,496)    (159,382)    (174,028)    (174,233)    (125,455)
42019 - Other - Sales - Food                (175,533)    (177,777)    (180,011)    (177,696)    (131,115)
42020 - Other - Sales - Retail                   (168)        (563)      (7,165)      (4,181)      (3,948)
42074 - Group Fitness Revenue                (86,686)    (118,451)    (146,775)    (185,424)    (161,104)
42076 - Creche Revenue                         (5,445)      (9,712)      (8,704)      (8,253)      (4,964)
42077 - Kids Playroom Revenue                (19,587)     (17,198)     (21,507)     (22,895)     (13,623)
42078 - Sports Program Revenue               (20,498)     (20,234)     (25,587)     (25,927)     (23,250)
49030 - Internal Recoveries - Catering           (144)            0            0            0            0
                                            (464,041)    (503,318)    (563,776)    (598,607)    (463,459)


Controllable expenses
6EX01 - Employee Benefits                    417,755      413,875      427,629      446,174      413,505
6EX02 - Finance Costs                              3        1,174        (851)        (220)        (187)
6EX03 - Materials & Services                 296,534      329,676      341,621      369,887      293,039
6EX06 - Other Expenses                         2,823        2,921        3,023        3,129        2,985
                                             717,115      747,646      771,423      818,970      709,343

Net operating result                        -253,074     -244,327     -207,646     -220,362     -245,884


Uncontrollable expenses
6EX04 - Depreciation & Amortization           71,839       74,755       84,767       84,767       88,938
6EX12 - Internal Charges                     151,640      147,793      304,066      213,217      224,039
                                             223,479      222,548      388,833      297,984      312,977

Total operating result                      -476,553     -466,875     -596,479     -518,347     -558,861

2.    CUSTOMERS

NLC recorded 73,470 attendances for the year, down 42% on the previous year’s total of
127,580. While COVID-19 and the subsequent closure of the facility had a large impact on NLC’s
visitation numbers, lower numbers can also be attributed to the cessation of the mini library at
NLC and a decrease in large events which all contributed to the high numbers in 2018/19.


                                                                                          Page 23 of 48