Financial Performance
This section provides a summary of the NBA's financial performance for 2014-15. Details of departmental and administered results are shown in the audited financial statements, and this summary should be read in conjunction with those statements.
Audit report
The NBA received an unqualified audit report for 2014–15.
Departmental finances
The NBA's departmental finances cover the NBA's operations.
Operating result
The NBA's income statement reports a 2014–15 operating deficit of $0.031 million, compared with an operating deficit of $0.235 million in 2013–14. Table 4.2 shows the key results for the period 2010-11 to 2014-15.
TABLE 4.2 Key results in financial performance, 2010–11 to 2014–15
| Revenue & expenses | 2010-11 ($'000) |
2011-12 ($'000) |
2012-13 ($'000) |
2013-14 ($'000) |
2014-15 ($'000) |
|---|---|---|---|---|---|
| Contributions from the Australian Government |
5.948 | 5.686 | 6.201 | 6.090 | 6.266 |
| Contributions from States and Territories and other revenue | 4.074 | 4.030 | 4.106 | 4.113 | 4.590 |
| Total revenue | 10.022 | 9.716 | 10.307 | 10.203 | 10.856 |
| Employee expenses | 5.869 | 6.776 | 6.490 | 6.632 | 6.695 |
| Supplier expenses | 3.114 | 2.840 | 3.569 | 3.149 | 3.753 |
| Other expenses | 0.801 | 0.764 | 0.890 | 0.657 | 0.439 |
| Total expenses | 9.784 | 10.380 | 10.949 | 10.438 | 10.887 |
| Operating result | 0.238 | (0.664) | (0.642) | (0.235) | (0.031) |
Revenue
Total departmental revenue received in 2014–15 amounted to $10.856 million: $6.266 million in funding from the Australian Government; $4.496 million in contributions received from the states and territories and other revenue; and $0.094 million for resources received free of charge. This represents an increase of $0.653 million (6.4 per cent) on revenue received in 2013–14. Other revenue refers to contributions arising from officers transferring from other agencies.
Expenses
The NBA's expenses for 2014–15 amounted to $10.887 million, 4 per cent higher than in 2013–14. The increase in expenses is mainly attributable to work carried out on behalf of Department of Health and acceleration of the Patient Blood Management programme.
Balance sheet
Details of the NBA's assets and liabilities are presented in the audited financial statements in
this report.
Financial assets
The NBA held cash of $0.021 million at 30 June 2015. Funds received from all jurisdictions are transferred to the Official Public Account held by the Department of Finance until required for expenditure. Trade and other receivables increased by $0.730 to $9.642 million.
Non-financial assets
There was no significant change in the carrying amount of non-financial assets during the financial year.
Payables
There was no significant change in the carrying amount of Payables during the financial year.
Provisions
Employee provisions, which cover annual and long service leave entitlements, increased slightly by $0.082 million to $1.674 million.
Administered finances
The NBA's administered finances include contributions from all states and territories and the Australian Government for the supply of blood and blood products. Each year the Council of Australian Governments (COAG) Health Council approves an annual National Supply Plan and Budget, which is formulated by the NBA from demand estimates provided by the states and territories.
Revenue
Total revenue for 2014–15 is presented in Table 4.3. Total revenue decreased by $173.9 million
(a 16 per cent decrease, down from the 4 per cent increase the prior year) for the current financial year. The reduction in revenue was driven by the return of $117 million to the Commonwealth, State and Territory Governments for the 2013-14 end of year reconciliation as part of the National Blood Agreement. In addition the NBA returned $103.780 million to the Commonwealth Department of Health for previous year reconciliations.
TABLE 4.3 Administered revenue, 2010–11 to 2014–15
| Administered revenue | 2010-11 ($'000) |
2011-12 ($'000) |
2012-13 ($'000) |
2013-14 ($'000) |
2014-15 ($'000) |
|---|---|---|---|---|---|
|
Funding for supply of |
939.212 |
1,015.586 |
1,049.337 |
1,095.922 |
922.718 |
|
Total administered revenues |
941.016 |
1,034.910 |
1,058.281 |
1,101.410 |
927.522 |
Expenses
Total administered expenses for 2014-15 including grants and rendering of goods and services are presented in Table 4.4. Administered expenses for 2014–15 decreased by 7.1 per cent over those for 2013–14. Key contributors to the outcome were a marked reduction in the demand for fresh blood products as a result of improvements in appropriate use, reduced wastage as a result of improved inventory management and increased value for money as a result of contract outcomes.
TABLE 4.4 Key results of administered expenses, 2010–11 to 2014–15
| Administered expense | 2010-11 ($'000) | 2011-12 ($'000) | 2012-13 ($'000) | 2013-14 ($'000) | 2014-15 ($'000) |
|---|---|---|---|---|---|
|
Grants to the private sector - |
Nil |
7.773 |
8.092 |
8.331 |
8.577 |
|
Rendering of goods and |
937.954 |
947.820 |
1,003.772 |
1,035.847 |
960.818 |
|
Other |
0.310 |
0.291 |
0.493 |
0.736 |
0.803 |
|
Total administered expenses |
938.264 |
955.884 |
1,012.357 |
1,044.914 |
970.198 |
Administered assets and liabilities
Administered assets comprise the following:
- funds held in the Official Public Account
- investments made in relation to the NMF
- Goods and Services Tax (GST) receipts from the Australian Taxation Office and payments to suppliers for products
- blood and blood product inventory held for distribution, including the national reserve of blood products
- a prepayment to the Blood Service as part of the OBFM.
Administered liabilities comprise payables to suppliers.
As a result of the deficit described above, net administered assets decreased by $35.5 million during 2014–15.