Financial Performance
This section provides a summary of the NBA's financial performance for 2015-16. 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 2015–16.
Departmental finances
The NBA's departmental finances cover the NBA's operations.
Operating result
The NBA's income statement reports a 2015–16 operating deficit of $0.255 million, compared with an operating deficit of $0.031 million in 2014–15. Table 4.2 shows the key results for the period 2011-12 to 2015-16.
TABLE 4.2 Key results in financial performance, 2011–12 to 2015–16
| Revenue & expenses | 2011-12 ($'000) | 2012-13 ($'000) | 2013-14 ($'000) | 2014-15 ($'000) | 2015-16 ($'000) |
|---|---|---|---|---|---|
| Contributions from the Australian Government | 5.686 | 6.201 | 6.090 | 6.266 | 5.719 |
| Contributions from States and Territories and other revenue | 4.030 | 4.106 | 4.113 | 4.590 | 3.877 |
| Total revenue | 9.716 | 10.307 | 10.203 | 10.856 | 9.596 |
| Employee expenses | 6.776 | 6.490 | 6.632 | 6.695 | 6.469 |
| Supplier expenses | 2.840 | 3.569 | 3.149 | 3.753 | 3.002 |
| Other expenses | 0.764 | 0.890 | 0.657 | 0.439 | 0.380 |
| Total expenses | 10.380 | 10.949 | 10.438 | 10.887 | 9.851 |
| Operating result | (0.664) | (0.642) | (0.235) | (0.031) | (0.255) |
Revenue
Total departmental revenue received in 2015–16 amounted to $9.596 million: $5.719 million in funding from the Australian Government; $3.783 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 $1.260 million (11.6 per cent) on revenue received in 2014–15. Other revenue refers to contributions arising from officers transferring from other agencies.
Expenses
The NBA's expenses for 2015–16 amounted to $9.851 million, 9 per cent lower than in 2014–15. The decrease in expenses is mainly attributable to one off pieces of work undertaken in 2014-15 on behalf of Department of Health and the acceleration of the Patient Blood Management program in the same year.
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 $0.054 million at 30 June 2016. 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 decreased by $0.507 to $9.135 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 $0.040 million to $1.714 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 2015–16 is presented in Table 4.3. Total revenue increased by $117.8 million (a 12.7 per cent increase, up from the 16 per cent decrease the prior year) for the current financial year. This increase in revenue was driven by one off events that occurred in 2014-15, for instance the return of funds in 2014-15 to the Commonwealth Department of Health for previous year reconciliations. In 2015-16 the NBA returned $113 million (2014-15 $117 million) to the Commonwealth, State and Territory Governments for the 2014-15 end of year reconciliation as part of the National Blood Agreement.
TABLE 4.3 Administered revenue, 2011–12 to 2015–16
| Administered revenue | 2011-12 ($'000) | 2012-13 ($'000) | 2013-14 ($'000) | 2014-15 ($'000) | 2015-16 ($'000) |
|---|---|---|---|---|---|
| Funding for supply of blood and blood products |
1,015.586 | 1,049.337 | 1,095.922 | 922.718 | 1,040.865 |
| Total administered revenues | 1,034.910 | 1,058.281 | 1,101.410 | 927.522 | 1,045.279 |
Expenses
Total administered expenses for 2015-16 including grants and rendering of goods and services are presented in Table 4.4. Administered expenses for 2015–16 increased by 10.0 per cent over those for 2014–15. A range of factors contributed to the increase in Administered expenses year on year. In 2014-15 there was a one off adjustment to inventory as a consequence of a change in accounting practice which resulted in a reduction in supplier costs. In addition there was a reduction in the return by the Blood Service associated with the Output Based Funding Model from $40.394 in 2014-15 to $28.500 million in 2015-16. After allowing for these one off events, growth year on year is reduced to 5 per cent which is consistent with prior years.
TABLE 4.4 Key results of administered expenses, 2011–12 to 2015–16
| Administered expense | 2011-12 ($'000) | 2012-13 ($'000) | 2013-14 ($'000) | 2014-15 ($'000) | 2015-16 ($'000) |
|---|---|---|---|---|---|
| Grants to the private sector - non-profit organisation |
7.773 | 8.092 | 8.331 | 8.577 | 8.830 |
| Rendering of goods and services - external entities |
947.820 | 1,003.772 | 1,035.847 | 960.818 | 1,056.815 |
| Other | 0.291 | 0.493 | 0.736 | 0.803 | 0.716 |
| Total administered expenses | 955.884 | 1,012.357 | 1,044.914 | 970.198 | 1,066.361 |
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 $14.0 million during 2015–16.