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Financial Performance
This section provides a summary of the NBA's financial performance for 2017-18. 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 2017–18.
Departmental finances
The NBA's departmental finances cover the NBA's operations.
Operating result
The NBA's income statement reports a 2017–18 operating loss of $2.052 million, compared with an operating surplus of $0.397 million in 2016–17. During 2017-18 the NBA sought approval from the Minister for Finance to incur a departmental operating loss based on additional expenditure relating to three unforeseen issues that arose during the year to:
- strengthen the NBA's cyber security as a result of the Blood Service data breach
- ensure compliant and robust management and governance of contracted personnel as a result of Plutus payroll issues
- ensure that BloodSTAR is completed to meet the demand management imperatives of all funding governments.
The Minister approved an operating loss of $1.784 excluding depreciation.
Table 4.2 shows the key results for the period 2013–14 to 2017–18.
TABLE 4.2 Key results in financial performance, 2013–14 to 2017–18
|
Revenue & expenses
|
2013–14 ($'000)
|
2014–15 ($'000)
|
2015–16 ($'000)
|
2016–17 ($'000)
|
2017–18
($'000) |
|---|---|---|---|---|---|
|
Contributions from the Australian Government |
6.090 |
6.266 |
5.719 |
5.636 |
5.590 |
|
Contributions from States and Territories and other revenue |
4.113 |
4.590 |
3.877 |
4.376 |
4.087 |
|
Total revenue |
10.203 |
10.856 |
9.596 |
10.012 |
9.677 |
|
Employee expenses |
6.632 |
6.695 |
6.469 |
6.744 |
6.637 |
|
Supplier expenses |
3.149 |
3.753 |
3.002 |
2.350 |
4.698 |
|
Other expenses |
0.657 |
0.439 |
0.380 |
0.521 |
0.394 |
|
Total expenses |
10.438 |
10.887 |
9.851 |
9.615 |
11.729 |
|
Operating result |
(0.235) |
(0.031) |
(0.255) |
0.397 |
(2.052) |
Revenue
Total departmental revenue received in 2017–18 amounted to $9.677 million: $5.590 million in funding from the Australian Government; $4.087 million in contributions received from the States and Territories and other revenue; and $0.066 million for resources received free of charge. This represents a decrease of $0.335 million (3.3 per cent) on revenue received in 2016–17. Other revenue refers to contributions arising from officers transferring from other agencies.
Expenses
The NBA's expenses for 2017–18 amounted to $11.729 million, primarily due to increased expenditure associated with the approved departmental operating loss.
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 and cash equivalents of $8.069 million at 30 June 2018. This included funds received from all jurisdictions and transferred to the Official Public Account held by the Department of Finance until required for expenditure. Trade and other receivables increased by $0.154 to $0.919 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 by
$0.153 million to $2.045 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 2017–18 is presented in Table 4.3. Total revenue increased by $108.589 million
(a 10.3 per cent increase, up from the 0.5 per cent increase the prior year) for the current financial year. In 2017-18, the NBA returned $39.38 million (2016-17 $80.46 million) to the Commonwealth, State and Territory Governments for the 2016-17 end of year reconciliation as part of the National Blood Agreement.
TABLE 4.3 Administered revenue, 2013–14 to 2017–18
|
Administered revenue
|
2013-14 ($'000)
|
2014-15 ($'000)
|
2015-16 ($'000)
|
2016-17 ($'000)
|
2017-18
($'000) |
|---|---|---|---|---|---|
|
Funding for supply of |
1,095.922 |
922.718 |
1,040.865 |
1,046.325 |
1,153.302 |
|
Total administered revenues |
1,101.410 |
927.522 |
1,045.279 |
1,050.159 |
1,158.748 |
Expenses
Total administered expenses for 2017-18 including grants and rendering of goods and services are presented in Table 4.4. Administered expenses for 2017–18 increased by 9.6 per cent over those for 2016–17. The Blood Service as part of the Output Based Funding Model returned $22.27 million in 2017-18 (2016-17 $42.23 million).
TABLE 4.4 Key results of administered expenses, 2013–14 to 2017–18
|
Administered expense
|
2013-14 ($'000)
|
2014-15 ($'000)
|
2015-16 ($'000)
|
2016-17 ($'000)
|
2017-18
($'000) |
|---|---|---|---|---|---|
|
Grants to the private sector - |
8.331 |
8.577 |
8.830 |
0.401 |
0.599 |
|
Rendering of goods and |
1,035.847 |
960.818 |
1,056.815 |
1,061.265 |
1,163.196 |
|
Other |
0.736 |
0.803 |
0.716 |
1.169 |
1.275 |
|
Total administered expenses |
1,044.914 |
970.198 |
1,066.361 |
1,062.835 |
1,165.070 |
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.
During 2017–18, net administered assets decreased by $2.462 million.