2020-09-08 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                           8 SEPTEMBER 2020


The combined impacts of the maintenance and COVID shutdowns make it very difficult to
produce a meaningful read on financial performance in 2019/20. The maintenance shutdown
extended approximately 3 weeks longer than what was factored into the budget and obviously
the impact of COVID wasn’t factored into the budget. Even the normal months of operation were
impacted by increased competition from the new St Andrew’s school pool which was hard to
accurately estimate when developing the budget.

Revenue finished the year $432k behind budget, with a reasonable portion of the shortfall offset
by expenditure savings totalling $330k. Overall the Centre underperformed against budget by a
net sum of $102k.

Large savings were seen in utilities, cost of goods sold (COGS) and maintenance as a result of
the periods of closure.

Council provided generous support to NAC staff during both shutdowns through redeployment
and pandemic leave however NAC management also identified opportunities to reduce employee
costs and offset some of the impact of the shutdowns without negatively impacting on individual
employees.

NAC 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    (14,055)    (14,038)    (13,139)    (11,194)            0
40029 - Rent Revenue                    (12,650)    (13,500)    (13,025)    (13,325)    (13,438)
40034 - Lease Revenue                   (60,004)    (61,141)    (65,184)    (53,778)    (30,179)
41153 - Admission Fees                 (429,289)   (494,139)   (513,250)   (482,124)   (314,052)
42000 - Other - Commission Received       (5,592)           0           0           0
42020 - Other - Sales - Retail         (147,346)   (180,613)   (174,294)   (166,958)   (117,582)
42072 - Learn to Swim Revenue          (604,445)   (689,854)   (703,645)   (654,846)   (397,857)
42073 - Squad Revenue                   (63,206)    (97,859)   (111,889)   (126,583)    (72,593)
42074 - Group Fitness Revenue           (93,951)   (138,818)   (154,386)   (154,228)   (104,871)
42075 - Gym Revenue                    (144,766)   (106,612)   (147,772)   (155,362)    (98,643)
42076 - Creche Revenue                    (6,459)     (9,508)     (8,969)     (7,603)     (5,474)
                                     (1,581,762) (1,806,082) (1,905,552) (1,826,002) (1,154,689)


Controllable expenses
6EX01 - Employee Benefits             1,054,980    1,157,384   1,181,757   1,214,416    1,046,812
6EX02 - Finance Costs                        (0)           0       (268)       (118)       10,645
6EX03 - Materials & Services            663,905      793,850     701,009     738,792      562,948
6EX06 - Other Expenses                      956          990       1,024       1,060        1,084
                                      1,719,841    1,952,224   1,883,522   1,954,151    1,621,488

Net operating result                  -138,079     -146,143      22,030     -128,149    -466,800


Uncontrollable expenses
6EX04 - Depreciation & Amortization     167,573     192,724     228,237      231,689      236,922
6EX12 - Internal Charges                309,815     448,309     646,462      584,076      640,418
                                        477,388     641,033     874,698      815,765      877,340

Total operating result                -615,466     -787,176    -852,669     -943,914   -1,344,140



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