Annual Report - Summary of Financial Performance

Operating Outcome

During 2011–12, income, including revenue from government, amounted to $66.616 million and expenses were $76.440 million, resulting in a deficit of $9.824 million. From an income-statement perspective, the Library does not receive appropriation funding for depreciation of the national collection (totalling $12.024 million), which forms part of operating expenses. Government funding for the purchase of collection material is provided through an equity injection totalling $9.779 million.

Income

The total income of $66.616 million for 2011–12 was $3.761 million above budget and compares to total actual income of $64.418 million for 2010–11. Figure 1.1 shows a comparison of income across items against budget for 2011–12 and 2010–11.

Figure 1.1: Income, 2011–12 and 2010–11Figure 1.1: Income, 2011–12 and 2010–11

Note: A logarithmic scale is used.

Figure 1.1: Income, 2011–12 and 2010–11 Data in Table Format
 Actual 2011–12Budget 2011–12Actual 2010–11
Revenue from government48.98948.98949.105
Sales of goods and services8.9078.0387.780
Interest2.9882.2803.333
All other income5.7323.5484.200
Total66.61662.85564.418

The major variations between financial years relate to increases in the sales of goods and services ($1.127 million), largely due to an increase in revenue received from digitising other library collections, increased sales through the Bookshop and sponsorship revenue associated with the Library’s exhibition program; increases in other revenue ($1.613 million), largely due to increased grant and donation revenue; and reductions in interest revenue ($0.345 million) and revenue from government ($0.116 million). The decline in interest revenue is primarily the result of reduced deposit rates received during 2011–12.

Expenses

The total expenses of $76.440 million for 2011–12 were $0.216 million above budget and $4.458 million more than 2010–11. Figure 1.2 shows a comparison of expenditure across items and against budget for 2011–12 and 2010–11.

Figure 1.2: Expenses, 2011–12 and 2010–11Figure 1.2: Expenses, 2011–12 and 2010–11 Note: A logarithmic scale is used.

Figure 1.2: Expenses, 2011–12 and 2010–11 Data in Table Format
 Actual 2011–12Budget 2011–12Actual 2010–11
Employees39.18237.01636.016
Suppliers17.10017.40116.214
Depreciation and amortisation19.39221.21419.029
Other0.7660.5930.723
Total76.44076.22471.982

Employee expenses were $3.166 million more than 2010–11. This is the result of a combination of factors, including a net increase in leave expenses ($1.842 million), of which $1.254 million is due to the movements in the long-term bond rate during 2011–12, which has the effect of increasing the value of the liability; reduced capitalisation of staff time ($0.401 million) associated with the production of internally developed software and with the digitising of collection material, which has the effect of increasing salary expenditure; and base salary increases and a small productivity payment provided to staff under the Library’s Enterprise Agreement and partially offset by a small reduction in staff numbers (8.9 average staffing level).

Supplier expenses were higher ($0.886 million) than 2010–11, largely due to increased cost of goods sold ($0.193 million), primarily as a result of increased sales through the Library’s Bookshop, and increased promotional expenses ($0.585 million), largely associated with the opening of the Library’s Treasures Gallery and the exhibition, Handwritten: Ten Centuries of Manuscript Treasures from Staatsbibliothek zu Berlin. Much of the additional expenditure associated with the exhibition was funded by the receipt of sponsorship revenue.

Depreciation and amortisation expenses were $0.363 million higher than 2010–11. The primary reason for the variation is increased depreciation of plant and equipment ($0.242 million),
largely the result of the replacement of existing assets.

Equity

In 2011–12, the Library’s total equity increased by $86.766 million to $1,776.531 million. The net increase is a result of an equity injection for collection acquisitions ($9.779 million), a net revaluation increment ($86.811 million) following the revaluation of the Library’s collection, land and buildings, and the net operating result ($9.824 million) for 2011–12.

Total Assets

Figure 1.3 shows that the total value of the Library’s assets increased by $86.339 million to $1,793.712 million in 2011–12.

Figure 1.3: Total Assets, 2011–12 and 2010–11Figure 1.3: Total Assets, 2011–12 and 2010–11

Note: A logarithmic scale is used.

Figure 1.3: Total Assets, 2011–12 and 2010–11 Data in Table Format
 Actual 30 June 2012Actual 30 June 2011
Financial assets54.366m56.194m
Inventories and other3.840m3.893m
Intangibles—software4.102m4.663m
The National Collection1,516.170m1,435.175m
Plant and equipment13.289m12.937m
Land and buildings201.945m194.511m
Total1,793.712m1,707.373m

The increase in non-financial assets ($88.167 million) is largely the result of the revaluation of the Library’s collections, land and buildings (a net increment of $86.811 million) and the net difference between current-year assets acquisitions, disposals and current-year depreciation expenses ($1.409 million). In addition, there was an increase in the value of inventories ($0.089 million) and a reduction in the value of prepaid supplier expenses ($0.142 million). The decrease in financial assets ($1.828 million) relates primarily to a reduction in receivables ($0.676 million), a reduction in cash at bank ($0.781 million) and a reduction in investments ($0.579 million).

Total Liabilities

As Figure 1.4 shows, the Library’s total liabilities reduced by $0.427 million from last financial year to $17.181 million.

Figure 1.4: Total Liabilities, 2011–12 and 2010–11Figure 1.4: Total Liabilities, 2011–12 and 2010–11

Note: A logarithmic scale is used.

Figure 1.4: Total Liabilities, 2011–12 and 2010–11 Data in Table Format
 Actual 30 June 2012Actual 30 June 2011
Employee provisions12.279m11.001m
Payable4.902m6.607m
Total17.181m17.608m

The changes in liabilities relate to a reduction in supplier payables ($1.971 million) and increases in grants payable ($0.007 million), employee provisions ($1.278 million) and other payables ($0.259 million).

Cash Flow 

In 2011–12 there was a reduction in the Library’s cash balance, which decreased by $0.781 million to $5.443 million as at 30 June 2012. Figure 1.5 shows a comparison of cash flow items for 2011–12 and 2010–11.

Figure 1.5: Net Cash Flow, 2011–12 and 2010–11Figure 1.5: Net Cash Flow, 2011–12 and 2010–11

Figure 1.5: Net Cash Flow, 2011–12 and 2010–11 Data in Table Format
 Actual 30 June 2012Actual 30 June 2011
Net operating8.259m10.625m
Net investing-18.819m-18.280m
Net financing9.779m9.743m
Total-0.781m2.088m

The decrease in net cash from operating activities ($2.366 million) reflects the comments under ‘Income’ and ‘Expenses’. The increase in net cash used by investing activities ($0.539 million) primarily reflects the net movement of funds from investments to cash at bank between years ($4.391 million), a decrease in the investment in property, plant and equipment and intangibles ($4.452 million) and a decrease in proceeds from the sales of property, plant and equipment as a consequence of the sale in 2010–11 of an apartment gifted to the Library ($0.600 million). The decrease in the investment in property, plant and equipment and intangibles is largely the result of increased building expenditure during 2010–11 as a result of the construction of the new Treasures Gallery. There was a minor increase in net cash from financing activities between financial years ($0.036 million), as a result of the Library’s equity injection provided by government to fund collection acquisitions being slightly increased.