Financial Performance
This section provides a summary of the NBA’s financial performance for 2013-14. 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 2013–14.
Departmental finances
The NBA’s departmental finances cover the NBA’s operations.
Operating result
The NBA’s income statement reports a 2013–14 operating deficit of $0.235 million, compared with an operating deficit of $0.642 million in 2012–13. Table 4.2 shows the key results for the period 2009-10 to 2013-14.
TABLE 4.2 Key results in financial performance, 2009–10 to 2013–14
| Revenue & expenses | 2009-10 ($’000) | 2010-11 ($’000) | 2011-12 ($’000) | 2012-13 ($’000) | 2013-14 ($’000) |
|---|---|---|---|---|---|
| Contributions from the Australian Government | 5.712 | 5.948 | 5.686 | 6.201 | 6.090 |
| Contributions from States and Territories and other revenue | 3.812 | 4.074 | 4.030 | 4.106 | 4.113 |
| Total revenue | 9.524 | 10.022 | 9.716 | 10.307 | 10.203 |
| Employee expenses | 5.636 | 5.869 | 6.776 | 6.490 | 6.632 |
| Supplier expenses | 2.677 | 3.114 | 2.840 | 3.569 | 3.149 |
| Other expenses | 1.162 | 0.801 | 0.764 | 0.890 | 0.657 |
| Total expenses | 9.475 | 9.784 | 10.380 | 10.949 | 10.438 |
| Operating result | 0.049 | 0.238 | (0.664) | (0.642) | (0.235) |
Revenue
Total departmental revenue received in 2013–14 amounted to $10.203 million: $6.090 million in funding from the Australian Government; $4.113 million in contributions received from the states and territories and other revenue; and $0.094 million for resources received free of charge. This represents a decrease of $0.104 million (1.0 per cent) on revenue received in 2012–13. Other revenue refers to contributions arising from officers transferring from other agencies.
Expenses
The NBA’s expenses for 2013–14 amounted to $10.438 million, five per cent lower than in 2012–13. The Commonwealth Government restrictions in relation to recruitment actions were a significant factor in this reduction in expenses.
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 $0.029 million at 30 June 2014. Funds received from all jurisdictions are transferred to the Official Public Account held by the Department of Finance until required for expenditure.
Non-financial assets
There was no significant change in the carrying amount of non-financial assets during the financial year.
Payables
Payables to suppliers and other payables increased by $0.252 million, up from $0.999 million in 2012-13.
Provisions
Employee provisions, which cover annual and long service leave entitlements, decreased slightly by $0.055 million to $1.317 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 2013–14 is presented in Table 4.3. Total revenue increased by $43.1 million
(a four per cent increase, up from two per cent the prior year) for the current financial year.
TABLE 4.3 Administered revenue, 2009–10 to 2013–14
| Administered revenue | 2009-10 ($’000) | 2010-11 ($’000) | 2011-12 ($’000) | 2012-13 ($’000) | 2013-14 ($’000) |
|---|---|---|---|---|---|
| Funding for supply of blood and blood products | 871.195 | 939.212 | 1,015.586 | 1,049.337 | 1,095.922 |
| Total administered revenues | 872.549 | 941.016 | 1,034.910 | 1,058.281 | 1,101.410 |
Expenses
Total administered expenses for 2013-14 including grants and rendering of goods and services is presented in Table 4.4. Administered expenses for 2013–14 increased by 3.2 per cent over those for 2012–13. 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 contract outcomes.
TABLE 4.4 Key results of administered expenses, 2009–10 to 2013–14
| Administered expense | 2009-10 ($’000) | 2010-11 ($’000) | 2011-12 ($’000) | 2012-13 ($’000) | 2013-14 ($’000) |
|---|---|---|---|---|---|
| Grants to the private sector - non-profit organisation | 456.881 | Nil | 7.773 | 8.092 | 8.331 |
| Rendering of goods and services - external entities | 402.143 | 937.954 | 947.820 | 1,003.772 | 1,035.847 |
| Other | 0.128 | 0.310 | 0.291 | 0.493 | 0.736 |
| Total administered expenses | 859.152 | 938.264 | 955.884 | 1,012.357 | 1,044.914 |
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 payment 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 transition to the OBFM.
Administered liabilities comprise payables to suppliers.
As a result of the surplus described above, net administered assets increased by $64.1 million during 2013–14.