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Financial Summary 2018/19

An operating surplus of $2.8 million was recorded in 2018/19, compared with a surplus of $800,000 in 2017/18.

Funding amounting to $2.6 million received against Aboriginals Benefit Account (ABA) was not rolled over to the next year, which is in line with the accounting standards. Funds were received for different projects with few of them in the later half of the year 2018/19 and NLC did not spend the complete amount by year end. So income has been recorded in 2018/19 while the expenditure will be incurred in 2019/20.

In 2018/19, the NLC’s operating result was $5.2 million favourable compared
with the annual forecast, with an actual surplus of $2.8 million compared with a budgeted deficit of $2.4 million.

Part of this variance is due to ABA funds (explained above) while the remaining is due to income relating to different fundings taken forward to the next financial year (originally budgeted for in 2018/19). Similarly, the expenses relating to these fundings were not incurred this year.

It is merely timing difference as income and expenditure were budgeted this year but will be incurred in next financial year.

ACTUAL

2018/19

$M

ACTUAL

2017/18

$M

VARIANCE

$M

BUDGET

2018/19

$M

VARIANCE

$M

Income

57.9

48.2

9.7

59.5

(1.6)

Expenses

55.1

47.4

707

61.9

(6.8)

Surplus / Deficit

2.8

0.8

2.0

(2.4)

5.2

Figure 1: Results: Comparison to Previous Year and Budget

Net Result

Income

In 2018/19, there was an overall increase in funding of $9.7 million (20%) compared with 2017/18. Funding can vary significantly from year to year depending on a number of factors, such as the number of major projects being undertaken, litigation matters and the availability of funds in general from various sources. Figure 2 compares the change in income from 2017/18 with 2018/19 and the actual and budgeted results for 2018/19.

Figure 2 compares the change in income from 2017/18 with 2018/19 and the actual and budgeted results for 2018/19. These results are for ABA, Working on Country, Learning on Country, Native Title and Other.
Figure 2: 2017/18 Actual vs 2018/19 Actual & Budget
Figure 3 shows the sources of revenue in 2018/19 in percentage terms.

In 2018/19, 54% of the NLC’s income was via ABA funding (55% in 2017/18). The Native Title percentage went down to 10% (11% in 2017/18) while the Working on Country percentage went down to 13% (17% in 2017/18).

This was due to the addition of a new funding stream, Learning on Country, which formed 4% of the NLC’s income.

Other funding, which includes grants for numerous projects, recoverable works, revenue and minor sundry incomes, is the same as last year.

Figure 3 shows the sources of revenue in 2018/19 in percentage terms. ABA 54%, Working on Country 13%, Learning on Country 4%, Native Title 10% and Other 19%.
Figure 3: Sources of Revenue 2018/19

Expenses

Total expenses increased by $7.7 million in 2018/19 compared with 2017/18.

This was in line with increased revenues. Figure 4 shows the change in expenses
from 2017/18 to 2018/19 and the actual and budgeted results for 2018/19, while Figure 5 shows the 2018/19 expenditure in percentage terms

Figure 4 shows the change in expenses from 2017/18 to 2018/19 and the actual and budgeted results for 2018/19 for Other, Supplies & Other Expenses and Employee Costs.
Figure 4: 2017/18 Actual vs 2018/19 Actual & Budget
In 2018/19, NLC’s employee costs accounted for 52% of total expenditure compared with 53% in 2017/18.

Supplier and other expenses increased to 44% in 2018/19 (up from 41% in the previous year) and other expenses, which include depreciation and amortisation, decreased from 6% to 4% as useful lives of assets was changed last year.

Expenditure breakdown for 2018/19. Employee Costs 52%, Suppliers and Other Expenses 44% and Other 4%
Figure 5: Expenditure Breakdown 2018/19