Summary of Financial Performance

Operating Outcome

During 2012–13, income, including revenue from Government, amounted to $65.700 million and expenses were $75.255 million, resulting in a deficit of $9.555 million. From an income-statement perspective, the Library does not receive appropriation funding for depreciation of the national collection (totalling $12.359 million), which forms part of operating expenses. Government funding for the purchase of collection material is provided through an equity injection totalling $9.832 million.

Income

The total income of $65.700 million for 2012–13 was $3.233 million above budget and compares to total actual income of $66.616 million for 2011–12. Figure 1.1 shows a comparison of income across items against budget for 2012–13 and 2011–12.

Figure 1.1: Income, 2012–13 and 2011–12

Figure1.1: A horizontal bar graph with a logarithmic x axis showing the National Library of Australia's actual and budgeted income for 2011-2013

                          Note: A logarithmic scale is used.

The major variations between financial years relate to increases in the sales of goods and services ($1.262 million) largely due to an increase in revenue received from digitising other library collections, reduction in interest revenue largely as the result of a decline in deposit interest rates ($0.557 million), reduction in other revenue ($2.284 million) largely due to reductions in the receipt of collection material at no cost ($0.820 million), grants ($0.455 million) and donation revenue ($0.823 million), and an increase in revenue from Government ($0.663 million). The decline in collection material received at no cost is partly due to a high-value item being received in 2011–12; the decline in grants received reflects the receipt of a large Government grant ($0.385 million) in 2011–12 to assist with the digitisation of a photographic collection; and the decline in donation revenue reflects the receipt of a large bequest ($1.100 million) in 2011–12.

Expenses

The total expenses of $75.255 million for 2012–13 were $0.766 million above budget and $1.185 million less than 2011–12. Figure 1.2 shows a comparison of expenditure across items and against budget for 2012–13 and 2011–12.

Figure 1.2: Expenses, 2012–13 and 2011–12

Figure1.1: A horizontal bar graph with a logarithmic x axis showing the National Library of Australia's actual and budgeted income for 2011-2013

                         Note: A logarithmic scale is used.

There was a minor decrease in employee expenses of $0.116 million compared to the 2011–12 financial year.

Supplier expenses were lower ($1.711 million) than in 2011–12. This was largely due to a decline in the cost of goods sold ($0.158 million) primarily as a reduction in sales through the Library’s Bookshop, reductions ($0.328 million) in the purchase of overseas-sourced magazines, reductions ($0.505 million) in the purchase of non-asset equipment and furniture following a project to acquire workstations in 2011–12, and reduced promotional expenses ($0.655 million) largely associated with major one-off activities undertaken in 2011–12, which included the opening of the Library’s Treasures Gallery and the exhibition, Handwritten: Ten Centuries of Manuscript Treasures from Staatsbibliothek zu Berlin.

Depreciation and amortisation expenses were $0.682 million higher than in 2011–12. The primary reasons for the variation include increased depreciation of plant and equipment ($0.333 million), largely the result of the replacement of existing assets, and additional depreciation for the Library’s collections ($0.335 million) following a revaluation undertaken in June 2012.

Equity

The Library’s total equity increased by $5.682 million to $1,782.213 million in 2012–13. The net increase was a result of an equity injection for collection acquisitions ($9.832 million); a net revaluation increment ($5.405 million) following the revaluation of the Library’s plant and equipment, land and buildings; and the net operating result (–$9.555 million) for 2012–13.

Total Assets

Figure 1.3 shows that the total value of the Library’s assets increased by $6.598 million to $1,800.310 million in 2012–13.

Figure 1.3: Total Assets, 2012–13 and 2011–12

Figure1.3: A Horizontal bar graph with a logarithmic x axis showing the National Library of Australia's actual assets for 2012-2013

                        Note: A logarithmic scale is used.

The increase in non-financial assets ($5.353 million) was largely the result of the revaluation of the Library’s plant and equipment, land and buildings (a net increment of $5.405 million), and the net difference between current-year assets acquisitions, disposals and current-year depreciation expenses (–$0.117 million). In addition, there was an increase in the value of inventories ($0.300 million) and a reduction in the value of prepaid supplier expenses ($0.235 million). The increase in financial assets ($1.245 million) relates primarily to an increase in receivables and accrued revenue ($1.230 million), an increase in cash at bank ($0.163 million), and a reduction in investments ($0.148 million).

Total Liabilities

As Figure 1.4 shows, the Library’s total liabilities increased by $0.916 million from last financial year to $18.097 million.

Figure 1.4: Total Liabilities, 2012–13 and 2011–12

Figure1.4: A Horizontal bar graph with a logarithmic x axis showing the National Library of Australia's total actual liabilities for 2012-2013

                        Note: A logarithmic scale is used.

The changes in liabilities relate to an increase in supplier payables ($0.154 million), employee provisions ($0.395 million), other provisions ($0.070 million) and other payables ($0.308 million), and a decrease in grants payable ($0.011 million).

Cash Flow

In 2012–13, there was a minor increase in the Library’s cash balance, which increased by $0.163 million to $5.606 million as at 30 June 2013. Figure 1.5 shows a comparison of cash flow items for 2012–13 and 2011–12.

Figure 1.5: Net Cash Flow, 2012–13 and 2011–12

Figure1.5: A horizontal bar graph showing the National Library of Australia's actual cash flow for 2012-2013

The increase in net cash from operating activities ($1.191 million) reflects the comments under ‘Income’ and ‘Expenses’. The increase in net cash used by investing activities ($0.300 million) primarily reflects the net movement of funds from investments to cash at bank between years (–$0.430 million), a minor increase in the investment in property, plant and equipment and intangibles ($0.045 million), and an increase in proceeds from the sales of property, plant and equipment ($0.175 million). There was a minor increase in net cash from financing activities between financial years ($0.053 million), as a result of the Library’s equity injection provided by Government to fund collection acquisitions being slightly increased.