Overall the Library recorded a deficit of $6.380 million for 2018–19, compared with a deficit of $4.474 million in 2017–18. From a Statement of Comprehensive Income perspective, the Library does not receive appropriation funding for the depreciation of the national collection, which forms part of the operating expense. The Library received funding for additions to the national collection through a separate Collection Development Acquisition Budget provided through an equity appropriation. During 2018–19, the Library received an equity appropriation totaling $9.514 million ($9.563 million in 2017–18).
The notes to the Audited Financial Statements explain the key numbers.
In particular, the commentary on variances to budget highlights specific events that occurred throughout the year that had an impact on results.
STATEMENT OF COMPREHENSIVE INCOME
The total income for 2018–19 was $70.071 million, which is an increase of $2.547 million from $67.524 million in 2017–18.
The $2.547 million increase in income is primarily due to an increase in revenue from government ($1.921 million), which related to additional funding for the Cook and the Pacific exhibition ($1.800 million); an increase in Modernisation funding ($0.500 million); and a decrease as a result of efficiency dividends ($0.400 million).
The total expenditure increased $3.630 million to $76.753 million in 2018–19 from $73.123 million in 2017–18.
There was an increase in employee expenses of $0.277 million to $36.256 million in 2018–19 from $35.979 million in 2017–18. This is primarily due to the impact of the bond rate adjustment on the leave provision balances as well as movements in Library employees.
Supplier expenses increased $3.454 million to $20.215 million in 2018–19 from $16.761 million in 2017–18. The increase is primarily due to contractors and consultants ($1.6 million) as a result of additional contractors required for Modernisation-funded projects; an increase in Library promotion costs ($0.821 million); cost of goods sold ($0.145 million) as a result of higher revenue through the National Library Bookshop; building services ($0.339 million); training ($0.093 million); and other expenses ($0.133 million). This is offset by a decrease in magazine and newspaper subscriptions ($0.273 million).
STATEMENT OF FINANCIAL POSITION
Financial assets increased $5.672 million to $61.867 million in 2018–19 from $56.195 million in 2017–18. This was largely a result of a net increase of cash and investments on hand at 30 June 2019 ($6.873 million), offset by a decrease in trade and other receivables ($0.690 million) and accrued revenue ($0.800 million). The increase of cash and investments at 30 June 2019 is due to a lower than expected cash outflow on items such as suppliers and assets throughout the 2018–19 financial year and the inclusion of a term deposit of $10.124 million maturing within 90 days as cash and cash equivalents.
Non-financial assets decreased $3.581 million to $1,647.791 million in 2018–19 from $1,651.372 million in 2017–18. This is largely a result of the revaluation of the Library’s tangible collections, offset by an increase to the intangible collection as well as a modest increase to land and buildings.
Financial liabilities decreased $1.042 million to $14.554 million in 2018–19 from $15.596 million in 2017–18. This is primarily due to a decrease in suppliers payable ($1.225 million) due to timing of payment of invoices, offset by a modest increase to employee provisions as a result of movement in the bond rate at 30 June 2019.
The Library’s total equity increased $3.134 million to $1,695.104 million from $1,691.970 million in 2017–18. The net increase is a result of the net operating result of $6.682 million (deficit); an equity injection for collections acquisitions of $9.514 million; and the net revaluation increment of $0.302 million following the revaluation of the Library’s collections (–$4.480 million), land ($0.065 million) and buildings ($4.717 million).