2020-03-10 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                                10 MARCH 2020


The NAC’s performance in the first half of 2019/20 was significantly impacted by the centre’s
closure from 24 June to 27 August inclusive (note: full programming of the centre didn’t resume
until Monday 2 September). The centre closed in order to allow for the completion of major
maintenance works throughout the facility. The financial impact of the closure was factored into
the budget and, while the centre’s performance is down when compared to 2018/19, it is still ahead
of budgeted expectations for 2019/20.

While revenue finished the period $45,144 behind budget, this was more than offset by expenditure
underspends to the tune of $107,179. The net result against budget was therefore a favourable
variance of $62,036.

Revenue was impacted as a result of the closure extending almost four weeks longer than first
anticipated when the budget was developed at the beginning of the 2019 calendar year. At that
point the tender for building works had not been released and therefore the expected duration of
the works was simply management’s best estimate.

Revenue, particularly that related to the learn-to-swim program, has also been impacted by the
opening of the St Andrew’s pool in Peregian Springs. Current enrolments are down nearly 15%
compared to the year prior and it is expected that this trend will continue and possibly even increase
as St Andrew’s grows its programs.

On the upside, the longer than expected closure also generated larger than expected expenditure
savings. Most of this was related to employee benefits, as a majority of NAC employees are
employed on a casual basis. There were also some additional savings seen across utilities and
contract-based fitness instructors.

The overview of historical financial performance below clearly shows the closure’s impact on
revenue and expenditure when compared to previous years. Given the compromised nature of
2019/20’s results there is little value in trying to draw any further conclusions from this table.

                               Historical financial performance - Noosa Aquatic Centre (NAC)

                                                   2016/17 YTD            2017/18 YTD            2018/19 YTD             2019/20 YTD
Revenue                                     actuals as at 31 Dec   actuals as at 31 Dec   actuals as at 31 Dec    actuals as at 31 Dec
40023 - Miscellaneous Fees & Charges                  (9,291.65)             (8,273.89)             (9,531.87)                    0.00
40029 - Rent Revenue                                  (7,000.00)             (6,500.00)             (6,662.50)              (6,662.50)
40034 - Lease Revenue                                (30,569.09)            (34,049.42)            (27,499.98)             (18,571.68)
41153 - Admission Fees                              (251,016.68)           (279,397.23)           (255,171.37)            (184,512.01)
42020 - Other - Sales - Retail                       (89,590.78)            (90,422.76)            (84,122.51)             (71,274.87)
42072 - Learn to Swim Revenue                       (347,759.67)           (339,342.14)           (362,726.05)            (223,626.33)
42073 - Squad Revenue                                (44,451.88)            (51,204.97)            (53,923.73)             (40,580.63)
42074 - Group Fitness Revenue                        (61,357.02)            (75,565.51)            (66,472.27)             (57,019.88)
42075 - Gym Revenue                                  (35,105.92)            (70,056.60)            (71,291.58)             (53,041.14)
42076 - Creche Revenue                                (4,755.82)             (4,801.08)             (4,331.10)              (3,733.91)
                                                      (880,899)              (959,614)              (941,733)               (659,023)


Controllable expenses
6EX01 - Employee Benefits                             576,354.01             563,491.57             621,084.13              513,966.39
6EX02 - Finance Costs                                       0.00               (119.09)               (291.65)                  (71.44)
6EX03 - Materials & Services                          375,065.53             331,005.77             362,926.42              343,781.39
6EX06 - Other Expenses                                    494.80                 512.10                 530.00                  541.90
                                                        951,914                894,890                984,249                 858,218

Net operating result                                    -71,016                64,723                 -42,516                -199,195


Uncontrollable expenses
6EX04 - Depreciation & Amortization                    97,005.37             102,509.11             102,810.90              118,461.00
6EX12 - Internal Charges                              223,035.47             323,262.78             292,068.60              320,209.25
                                                        320,041                425,772                394,880                 438,670

Total operating result                                 -391,057               -361,049               -437,395                -637,866



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