This section provides an overview of the NBA’s financial management and outcome in 2010–11.
The functions of the NBA are outlined in the National Blood Authority Act 2003 and the National Blood Agreement. As a material statutory agency, the NBA has a range of corporate and compliance responsibilities under the National Blood Authority Act 2003, the Financial Management and Accountability Act 1997, the Australian Public Service Act 1999, along with a responsibility to meet ministerial, parliamentary and financial reporting requirements.
Under the National Blood Agreement between the Australian Government and the states and territories, 63 per cent of NBA funding is provided by the Australian Government and the remaining 37 per cent is provided by the state and territory governments. The funding covers both the national blood supply and the operations of the NBA.
The NBA operates through two special accounts, the National Blood Account and the National Managed Fund (Blood and Blood Products) Special Account.
Special accounts are held in the Consolidated Revenue Fund and are used for setting aside and recording amounts to be used for specified purposes. Funding received from the Australian Government and the states and territories is held within the special accounts and expended as required.
Funding for the supply of blood and blood products and the operation of the NBA is included in the National Blood Account, established under section 40 of the National Blood Authority Act 2003.
The National Managed Fund (Blood and Blood Products) Special Account was established under section 20 of the Financial Management and Accountability Act 1997 to accumulate funds required to meet potential product liability claims against the Blood Service. Contributions to the account are made by all governments and the Blood Service. In addition, interest is received on special account balances.
For budgeting and accounting purposes, the NBA’s financial transactions are classified as either departmental or administered revenues or expenses:
Transactions in the National Blood Account are separated into departmental and administered components. All balances in the National Managed Fund (Blood and Blood Products) Special Account are administered funds.
The NBA’s agency resource statement and total resources for outcome tables are given in Appendix 3. Table 6.1 summarises the NBA’s revenue and expenditure for the year.
This section provides a summary of the NBA’s financial performance for 2010–11. Details of departmental and administered results are shown in the audited financial statements, and this summary should be read in conjunction with those statements.
The NBA received an unqualified audit report for 2010–11.
The NBA’s departmental finances cover the NBA’s operations.
Funding for the NBA since 2005–06 has been provided to build capacity, particularly for risk management, appropriate patient blood management and the safe use of blood and blood products.
Although all planned initiatives in these areas are well under way, several factors have caused delays in implementation. As a result, funds provided for those initiatives have not yet been fully spent.
These unspent funds were drawn on to meet the staffing and other costs of completing these initiatives in 2010–11 and will be accessed similarly in 2011–12, so operating deficits will occur in those financial years. These deficits have been approved by the Minister for Finance and Deregulation. Staffing and other costs will be managed to match the level of funding provided for 2012–13.
The NBA’s income statement reports a 2010–11 operating surplus of $0.238 million, compared with an operating surplus of $0.048 million in 2009–10. Table 6.2 shows the key results for the period 2008–11.
Total departmental revenue received in 2010–11 amounted to $10.022 million: $5.948 million in funding from the Australian Government; $3.980 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 $0.498 million (5.2 per cent) on revenue received in 2009–10. Other revenue refers to contributions arising from officers transferring from other agencies and the use of funds provided in earlier years for specific projects.
The NBA’s expenses for 2010–11 amounted to $9.784 million, 3 per cent higher than in 2009–10.
Details of the NBA’s assets and liabilities are presented in the audited financial statements in this report.
The NBA held cash of $0.036 million at 30 June 2011. Funds received from all jurisdictions are transferred to the Official Public Account held by the Department of Finance and Deregulation until required for expenditure. In the NBA’s financial statements these funds are classified as a receivable. The funds represent amounts intended to be used for implementing key information technology projects and for consultancies on the quality and appropriate use of blood products in Australia, as well as being surpluses from prior years.
The reduction in the carrying amount of non-financial assets largely results from the depreciation of infrastructure and plant and equipment, particularly information technology equipment and furniture and fittings.
Payables to suppliers and other payables decreased by $0.616 million, down from $2.5 million in 2010.
Employee provisions, which cover annual and long service leave entitlements, remained constant at $1.2 million.
On behalf of the Australian Government, the NBA manages and coordinates the Australian blood supply in accordance with the National Blood Agreement between the Australian Government and state and territory governments. This includes negotiating and managing national contracts with suppliers of blood and blood products on behalf of all governments.
The NBA administered finances include contributions from all states and territories and the Australian Government for the supply of blood and blood products. Each year the AHMC approves an annual NSP&B, which is formulated by the NBA from demand estimates provided by the states and territories.
Total estimated revenue for 2010–11 is presented in Table 6.3. Because funding is provided to meet the cost of supplying blood and blood products, the increase of $68.0 million in funding (8 per cent) for the current financial year reflects the increasing demand for products and contractually agreed increases in prices.
Table 6.4 shows the NBA’s administered expenses for 2008–09 to 2010–11.
Administered expenses for 2010–11 increased by 9.2 per cent over those for 2009–10. Total payments to commercial suppliers increased by 9.5 per cent and payments to the Blood Service increased by 8.9 per cent.
Administered assets comprise the following:
Administered liabilities comprise payables to suppliers.
Net administered assets and liabilities increased by $119.6 million during 2010–11 mainly as a result of drawings from the Official Public Account to undertake the investments for the National Managed Fund and the prepayment to the Blood Service.
Unspent funds received from jurisdictions are transferred to the Official Public Account and are not classified as administered assets.