2020-03-10 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                    10 MARCH 2020



                         Noosa Community Support QCCS
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
  800,000
  600,000
  400,000
  200,000
        0
                   Total Revenue                 Total Expenditure       Net Result - Surplus/(Deficit)

                                       2019-20                 2019-20
                                       YTD                     YTD
                                       Budget                  Actuals



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.

While the half-year results show NCS to be $102k behind YTD budget, this was entirely due to the
timing of a $106k grant payment which was received in January rather than December. After
allowing for this NCS is actually $4k ahead of budget in real terms.

Again after allowing for the additional $106k, revenue for NCS was $37k ahead of budget. This is
a pleasing result given the loss of roughly $400k of state government funding in 2019/20.

Controllable expenditure finished the period $42k over budget which is understandable given the
short notice period NCS received regarding the loss of the $400k of funding. In order for NCS to
maintain its operations at a zero bottom line level, roughly $400k of savings needed to be found to
offset the lost funding. While the team worked diligently to quickly streamline operations there was
always going to be a level of lag associated with cost saving measures and this explains why
expenditure tracked a little high, particularly employee benefits expenditure.

Management is confident operations will continue to become more efficient as the year progresses
and is optimistic that budget expectations will be met.

The overview of historical half-yearly financial performance below offers limited value because
there have often been timing variances on major grant payments from funding providers at the mid-
year point. This has had the effect of causing half-yearly results to vary wildly. That said, what can
be clearly seen is the $202k decrease in materials and services expenditure between 2018/19 and
2019/20, a sign that management is taking very seriously its obligation to reduce expenditure in
line with lost funding.




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