Operating Outcome

During 2013–14, income, including revenue from government, amounted to $67.904 million and expenses were $77.542 million, resulting in a deficit of $9.638 million. From an income-statement perspective, the Library does not receive appropriation funding for depreciation of the national collection (totalling $12.431 million), which forms part of operating expenses. Government funding for the purchase of collection material is provided through an equity injection totalling $9.861 million.

Income

The total income of $67.904 million for 2013–14 was $2.755 million above budget and $2.204 million more than 2012–13. 

Figure 1.1 shows a comparison of income across items against budgets for 2013–14 and 2012–13.

Figure 1.1: Income, 2013–14 and 2012–13

  A horizontal bar graph with a logarithmic x axis showing the National Library of Australia's actual and budgeted income for 2012-2014

Note: A logarithmic scale is used.

The major variations between financial years relate to an increase in government revenue ($0.566 million), which is the net effect of efficiency dividends, parameter adjustments and previous budget measures, and increases in the sales of goods and services ($1.507 million), largely due to increases in revenue received from corporate sponsorship ($0.649 million), Library shop ($0.752 million) and publications ($0.210 million), much of which related to the Mapping Our World exhibition. The reduction in interest revenue (-$0.379 million) is largely the result of a decline in deposit interest rates to approximately 3.7 per cent during 2013–14, compared with rates of above 4 per cent during 2012–13. The increase in the category, All other income, ($0.510 million) is primarily a result of increased grant revenue ($0.380 million) mainly for the Mapping Our World exhibition; increased donations ($0.264 million), including to support the preservation of the Joan Blaeu map and to fund an exhibitions curator position; and a reduction (-$0.125 million) in resources received free of charge.

Expenses

The total expenses of $77.542 million for 2013–14 were $0.365 million above budget and $2.287 million more than 2012–13. 

Figure 1.2 shows a comparison of expenditure across items against budgets for 2013–14 and 2012–13.

Figure 1.2: Expenses, 2013–14 and 2012–13

  A horizontal bar graph with a logarithmic x axis showing the National Library of Australia's actual and budgeted expenses for 2012-2014 

Note: A logarithmic scale is used.

There was a decrease in employee expenses (-$0.590 million) compared to 2012–13. The majority of this variation relates to a decline in leave expenses (-$0.884 million), largely due to a favourable movement in the discount rate, which is used to calculate the present value of the long service leave liability.

Supplier expenses were higher ($1.263 million) than 2012–13, largely due to increases in the cost of goods sold ($0.520 million), exhibitions freight ($0.344 million) and promotion of library services ($0.409 million), all of which relate to the Mapping Our World exhibition.

The increase in other expenses ($1.379 million) was primarily due to increased write-downs ($1.224 million), most of which were the result of revised procedures following a review of Library trade publications by an independent consultant. Also contributing to the variation in other expenses was a loss from asset sales ($0.238 million) due to revised timing arrangements for the replacement of some information technology equipment.

Equity

The Library’s total equity increased by $41.648 million to $1,823.861 million in 2013–14. The net increase was a result of an equity injection for collection acquisitions ($9.861 million), a net revaluation increment ($41.425 million) following the revaluation of the Library’s collection, land and buildings, and the net operating result (-$9.638 million) for 2013–14.

Total Assets

Figure 1.3 shows that the total value of the Library’s assets increased by $40.417 million to $1,840.727 million in 2013–14.

Figure 1.3: Total Assets, 2013–14 and 2012–13

  A Horizontal bar graph with a logarithmic x axis showing the National Library of Australia's actual assets for 2013-2014

Note: A logarithmic scale is used.

The increase in non-financial assets ($38.889 million) was largely the result of the revaluation of the Library’s collections, land and buildings (a net increment of $41.425 million) and the net difference between current-year assets acquisitions, disposals and current-year depreciation expenses (-$1.383 million). In addition, there was a decrease in the value of inventories (-$1.224 million) and an increase in the value of prepaid supplier expenses ($0.071 million). The increase in financial assets ($1.528 million) relates primarily to an increase in investments ($2.543 million) and cash at bank ($0.251 million), offset by decreases against other financial assets (-$0.800 million) and receivables (-$0.466 million).

Total Liabilities

As Figure 1.4 shows, the Library’s total liabilities decreased by $1.231 million from last financial year to $16.866 million.

Figure 1.4: Total Liabilities, 2013–14 and 2012–13

  A Horizontal bar graph with a logarithmic x axis showing the National Library of Australia's total actual liabilities for 2013-2014

The changes in liabilities relate to decreases in supplier payables (-$0.250 million), employee provisions (-$0.923 million), which relate mostly to the favourable movement in the discount rate used to calculate the present value of the long service leave liability, and other payables (-$0.096 million) offset by increases in grants payable ($0.026 million) and other provisions ($0.012 million).

Cash Flow 

In 2013–14, there was a minor increase in the Library’s cash balance, which increased by $0.251 million to $5.857 million as at 30 June 2014. 

Figure 1.5 shows a comparison of cash flow items for 2013–14 and 2012–13.

Figure 1.5: Net Cash Flow, 2013–14 and 2012–13

  A horizontal bar graph showing the National Library of Australia's actual cash flow for 2013-2014

The increase in net cash from operating activities ($2.074 million) reflects the comments under ‘Income’ and ‘Expenses’. The increase in net cash used by investing activities ($2.015 million) primarily reflects the net movement of funds from investments to cash at bank between years ($2.691 million) and a decrease in the purchase of property, plant, equipment and intangibles (-$0.781 million). There was a minor increase in net cash from financing activities between financial years ($0.029 million) as a result of the Library’s equity injection, provided by government to fund collection acquisitions, being slightly increased.