2020-09-08 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                             8 SEPTEMBER 2020


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.

2019/20 was a unique year for NCS with regard to finances. To begin with, it was the first year of
operating without the former Queensland Community Care (QCC) grant and as such the team’s
operating budget was approximately $400k lower than previous years. To maintain a zero bottom
line the team had to streamline operations and make savings across all areas of the business
and we are pleased to report that these efforts were successful.

Secondly, 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 advised of their willingness to be
flexible in how funding was expended during COVID-19 and the Federal government has made a
provision for any unspent funds to be carried across to 2020/21. NCS finished the year with a
surplus of nearly $40k due to savings made as a result of reduced service delivery and this
surplus will be carried forward to next year.

NCS interim financial performance as at 30 June 2020



     Statement of Income and         2019-20       2019-20                     %
            Expenses                 Current        YTD          2019-20     Curren       YTD
                                     Budget        Budget          YTD          t       Variance
                                                                 Actuals     Budget
Total Revenue                         2,591,134     2,591,134    2,624,255   101.3%        33,120
Total Expenditure                     2,583,632     2,583,632    2,585,147   100.1%        (1,516)
Net Result - Surplus/(Deficit)            7,503         7,503       39,107                 31,604


Total Revenue                         2,591,134     2,591,134    2,624,255    101.3%       33,120
Direct Costs (Controllable)
  Employee Benefits                   1,478,243     1,478,243    1,546,245    104.6%      (68,002)
  Finance Costs                               0             0          420    100.0%         (420)
  Materials & Services                  582,385       582,385      521,660     89.6%        60,724
  Other Expenses                            541           541          540     99.7%             1
Subtotal Direct Costs                 2,061,169     2,061,169    2,068,865    100.4%       (7,696)
(Controllable)
Operating Surplus/Deficit              529,965       529,965       555,390                 25,424
Indirect Costs (Corporate)
  Depreciation & Amortization           58,441        58,441        58,441    100.0%            0
  Internal Charges                     464,021       464,021       457,841     98.7%        6,180
Subtotal Indirect Costs                522,463       522,463       516,283     98.8%        6,180
(Corporate)
Net Result - Surplus/(Deficit)            7,503         7,503       39,107                 31,604
*Please note figures are interim financial results only as final figures were not available at the
time of compiling this report.

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