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Financial performance

The National Archives recorded a deficit of $14.1 million for 2018–19, compared with a deficit of $12 million in 2017–18. From a Statement of Comprehensive Income perspective, the National Archives does not receive appropriation funding for depreciation and amortisation expenses; excluding these expenses, the National Archives’ overall result is a deficit of $2.9 million for 2018–19.

The Notes to the audited financial statements explain the key numbers. In particular, the commentary on variances to budget highlight specific events and reasons that had an impact on the results.

Statement of comprehensive income

Income

Total income for 2018–19 was $72.8 million, which is an increase of $1.3 million from $71.5 million in 2017–18.

The $1.3 million increase in income is primarily due to an increase in other revenue by $2.9 million from the higher intake of records from Australian Government entities.

The increase was offset by reduced revenue from government ($1.3 million) as a result of efficiency dividends and government savings measures ($2.3 million) offset by additional funding for the Digitisation of Prime Ministers’ Records ($1.0 million).

Expenditure

The total operating expenditure increased $3.4 million to $86.9 million in 2018–19 from $83.5 million in 2017–18.

There was an increase in employee expenses of $3.9 million to $37.3 million in 2018–19 from $33.4 million in 2017–18. This is primarily due to a voluntary redundancy program undertaken in 2018–19, the impact of bond rate adjustments on leave expenses, and a higher average staffing level compared to the previous year.

Supplier expenses increased $2.5 million to $36.9 million in 2018–19 from $34.4 million in 2017–18. The increase is mainly due to higher operating rental expenses ($3 million), and a writedown and impairment of assets ($1 million) due to a write-off of an infrastructure, plant and equipment project where work ceased in 2018–19.

The increase in operating expenditure through employees and suppliers was offset by a decrease in depreciation and amortisation expenditure of $4 million to $11.2 million in 2018–19 from $15.2 million in 2017–18. This decrease is primarily the result of a number of infrastructure plant and equipment assets reaching the end of their useful life after the expiration of leases for properties in New South Wales and Western Australia.

Balance sheet

Assets

At 30 June 2019, the National Archives’ assets increased by $10 million to $1.545 billion from $1.535 billion at 30 June 2018. The increase was mainly due to the revaluation of infrastructure, plant and equipment assets by $11.1 million, larger cash on hand of $0.6 million and other non-financial assets of $0.8 million as at 30 June 2019. This was offset by a reduction in trade and other receivables of $2.7 million resulting from higher appropriation drawdown during the year.

Liabilities

The National Archives’ total liabilities increased $1.9 million to $28.8 million at 30 June 2019 from $26.9 million at 30 June 2018. The increase was mainly due to an increase in supplier payables of $7.5 million, primarily as a result of the straight-lining accounting treatment for the new leases commenced during the year offset by a decrease in other provisions of $6.1 million due to de-recognition of make good provisions following lease expirations.

Equity

The National Archives’ total equity increased $8.0 million to $1.516 billion at 30 June 2019 from $1.508 billion at 30 June 2018. The net increase is a result of an increase of $16.5 million in reserves primarily as a result of the valuation of the infrastructure, plant and equipment assets and the de-recognition of make good provisions, an increase of $5.8 million in contributed equity (departmental capital budget), offset by a decrease of $14.1 million reflecting the deficit recorded in 2018–19.