Financial Overview
As a statutory agency, the NCA’s primary source of operating revenue is departmental appropriation from the Australian Government. In addition, the NCA generates regular revenue through property rentals and from processing works approval applications.
The NCA uses this funding to deliver its two programs: National Capital Functions; and National Capital Estate. Delivery of these programs includes administration and overhead costs required to run the agency’s operations. The majority of costs incurred by the NCA relate to the maintenance and preservation of National Capital assets under its control.
The NCA also receives funding from non-government entities or state and territory government agencies to facilitate construction activities on their behalf. Usually these projects relate to the construction of memorials and upgrades to assets in the National Capital. The funding received is accounted for in the NCA’s departmental operations.
The NCA receives administered appropriations to carry out activities on behalf of the Australian Government, including management of pay parking. These activities primarily involve the construction and upgrade of assets in the National Capital, including the insurance and valuation of these assets. The NCA also manages land for diplomatic use and collects rental income from embassies on the Australian Government’s behalf.
Departmental Performance
In 2017-18, the NCA reported a departmental operating loss of $2.887 million, compared to an operating loss of $2.177 million in 2016-17. The NCA had an approved total comprehensive loss of $1.890 million. After adding back unfunded depreciation and amortisation expenses of $0.995 million, the NCA’s actual operating loss was $1.892 million. The loss was largely due to a timing difference relating to works on the National Police Memorial, where insurance funds were received (and recognised in the financial statements) in 2015-16 but the majority of the work was undertaken in 2017-18. Also contributing to the loss was the write-down and impairment of assets (including the replaced National Capital Exhibition fitout). Revenues and expenses both decreased in 2017-18 compared to the previous year. This is due to a decrease in third party funded construction works.
At 30 June 2018, the NCA’s departmental net assets decreased by $0.303 million. Financial assets decreased by $1.922 million mainly due to a reduction in appropriations receivable.
Non-financial assets decreased compared to the previous year due to write-down and impairment of assets. This impact is reflected in the closing equity position at 30 June 2018.
Administered Performance
In 2017-18, administered expenses increased by $10.635 million, mainly due to an increase of $8.925 million in the write-down and impairment of assets and an increase in depreciation charges of $1.157 million. Depreciation and asset write-down and impairment do not have an associated cash flow impact.
In 2017-18, administered revenue decreased by $41.547 million, mainly as a result of asset recognition for contributed revenue for sponsored works returning to normal levels.
During 2017-18, the NCA’s administered assets were revalued, resulting in a revaluation adjustment of $7.808 million. A comprehensive review of work-in-progress was completed which contributed to a $9.995 million write-down and impairment of assets expense.
The net asset position decreased by $13.977 million mainly due to the write-down and impairment of assets. The NCA’s non-financial assets include land, buildings, infrastructure, plant, equipment and heritage assets on the National Capital Estate, all of which are subject to revaluation annually by an external valuer.
Pay parking revenue and parking fines revenue increased by $0.733 million and $0.381 million respectively from the previous financial year. Rental income for commercial buildings and diplomatic sites remained largely unchanged. This revenue is paid directly to consolidated revenue.
Cost Recovery
During 2017-18, the NCA recovered revenue through works approval cost recovery fees and charges. Cost recovery revenue increased by 22 percent from 2016-17 to $1.2 million, due to increased activity.
Entity Resource Statement 2017–18
|
|
|
Actual available appropriation |
|
Payments made |
|
Balance remaining |
|
(a) |
(b) |
(a) - (b) |
||||
|
ORDINARY ANNUAL SERVICES1 |
||||||
|---|---|---|---|---|---|---|
|
Departmental appropriations |
||||||
|
Departmental appropriation2 |
32,335 |
26,040 |
6,295 |
|||
|
Total |
32,335 |
26,040 |
6,295 |
|||
|
Administered expenses |
||||||
|
Outcome 13 |
19,380 |
15,325 |
|
|||
|
Total |
19,380 |
15,325 |
|
|||
|
Total ordinary annual services |
A |
51,715 |
41,365 |
|
||
|
OTHER SERVICES |
||||||
|
Administered non-operating |
||||||
|
Administered assets and liabilities |
– |
– |
|
|||
|
Total |
– |
– |
|
|||
|
Total other services |
B |
– |
– |
|
||
|
Total available annual appropriations and payments A + B |
51,715 |
41,365 |
|
|||
|
SPECIAL APPROPRIATIONS |
||||||
|
Repayments by the Commonwealth |
||||||
|
Public Governance, Performance and Accountability Act 2013 - s77 |
25 |
12 |
|
|||
|
Total special appropriations |
C |
25 |
12 |
|
||
|
Total resourcing and payments A + B + C |
51,740 |
41,377 |
|
|||
|
1 Appropriation Act (No.1) 2017-18. This also includes prior year departmental appropriation and s74 retained revenue receipts. 2 Includes an amount of $2.430m for the Departmental Capital Budget and $0.156m for Appropriation Act (No.2). For accounting purposes, this has been designated as ‘contributions by owners’. 3 Includes an amount of $13.648m for the Administered Capital Budget. For accounting purposes, this has been designated as ‘contributions by owners’. |
||||||
Outcome Expense Statement 2017–18
|
EXPENSES FOR OUTCOME 1 Outcome 1: Manage the strategic planning, promotion and enhancement of Canberra as the National Capital for all Australians through the development and administration of the National Capital Plan, operation of the National Capital Exhibition, delivery of educational and awareness programs and works to enhance the character of the National Capital. |
|
Budget1 |
Actual |
Variation |
|
2017–18 |
2017–18 |
2017–18 |
||
|
(a) |
(b) |
(a) - (b) |
||
|
Program 1.1: NATIONAL CAPITAL FUNCTIONS |
||||
|---|---|---|---|---|
|
Departmental expenses |
||||
|
Departmental appropriation2 |
19,570 |
22,038 |
(2,468) |
|
|
Expenses not requiring appropriation in the budget year3 |
1,033 |
2,549 |
(1,516) |
|
|
Total for Program 1.1 |
20,603 |
24,587 |
(3,984) |
|
|
Program 1.2: NATIONAL CAPITAL ESTATE |
||||
|
Administered expenses |
||||
|
Ordinary annual services (Appropriation Act No. 1) |
3,435 |
2,570 |
865 |
|
|
Expenses not requiring appropriation in the budget year4 |
21,813 |
32,389 |
(10,576) |
|
|
Total for Program 1.2 |
25,248 |
34,959 |
(9,711) |
|
|
Outcome 1 TOTALS BY APPROPRIATION TYPE |
||||
|
Departmental expenses |
||||
|
Departmental appropriation2 |
19,570 |
22,038 |
(2,468) |
|
|
Expenses not requiring appropriation in the budget year3 |
1,033 |
2,549 |
(1,516) |
|
|
Administered expenses |
||||
|
Ordinary annual services (Appropriation Act No. 1) |
3,435 |
2,570 |
865 |
|
|
Expenses not requiring appropriation in the budget year4 |
21,813 |
32,389 |
(10,576) |
|
|
Total expenses for Outcome 1 |
45,851 |
59,546 |
(13,695) |
|
|
2016–17 |
2017–18 |
|||
|
Average Staffing Level (number) |
56 |
57 |
||
|
1 Full year budget, including any subsequent adjustment made to the 2017-18 budget at Additional Estimates. 2 Departmental appropriation combines ordinary annual services (Appropriation Act No. 1) and retained revenue receipts under section 74 of the Public Governance, Performance and Accountability Act 2013. 3 Departmental expenses not requiring appropriation in the budget year is made up of depreciation and amortisation expenses, expenses related to write-down of assets and resources received free of charge. 4 Administered expenses not requiring appropriation in the budget year is made up of depreciation and amortisation expenses and expenses related to write-down of assets. |
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CASE STUDY
Boundless Playground additional works (Stages 2 and 3)
The Boundless Playground (the Playground)was initiated as a project to celebrate Canberra’s centenary and was made possible with generous support from the Canberra community. The Playground is Canberra’s first all abilities playground, located at the eastern end of Kings Park in Parkes, ACT.
It is a place where the community’s young and young at heart have the opportunity to play, socialise, explore and challenge physical limits. The Boundless experience is very much about fostering social inclusion.
The Playground features a diverse range of play structures and activities and has on site amenities including toilets. It caters for children and young people with vision, hearing and mobility impairments, as well as children with spectrum disorders. The Playground was originally opened on 11 October 2014.
The NCA and Boundless Canberra Incorporated signed a Memorandum of Understanding (MOU) in July 2017 for the NCA to manage the next stage of the Playground’s development.
These new works included:
- a slide play structure with associated paths, pavements, seating, sunshading and landscaping
- a ‘sensory garden’ with a wheelchair accessible cubby house, balancing beams, tactile surfaces, musical equipment and landscaping.
The new works were commenced on site in early September 2017 and completed in late December 2017 when they were reopened to the public.
This was named the most popular playground in Canberra in the University of Canberra ‘Canberra Destination’ Playground Study report which surveyed 1300 people. The NCA is the custodian of the Playground on behalf of the Australian Government and is responsible for its ongoing maintenance.