The ASC incurred an operating loss of $7.150 million in 2016–17. The key factors contributing to this loss were:
- An unfunded depreciation expense as a result of revaluations to land, buildings, property, plants and equipment since 2010.
- An increase in contributions from Government entities to partially maintain grant funding levels.
Table 13 compares the 2016–17 results to 2016–17 and to Original Budget estimates, and 2015-16 Actuals.
Key elements to the financial statement results are primarily associated with revenue and grants. The increase in revenue across years is primarily driven by a one-off agreement with the Department of Health to contribute to the ASC maintaining grant funding levels to NSOs. The overall increase in grant funding was in-part due to additional dAIS athlete funding supported by contributions from the Commonwealth Games Association, as well as additional participation grants.
The overall ASC performance against the Original Budget position is detailed in Note 11 of the financial statements.
| Actual 2015–16|
|Variance|| Actual 2016–17|
| Original Budget|
Note: Budget figures are based on the 2016–17 Portfolio Budget Statements.
Key indicators of the health of the ASC’s financial position are demonstrated by its ability to sustain its asset base, pay debts as they fall due in the short-term and maintain prudent levels of long-term liabilities. The ability of the ASC to sustain its asset base is indicated by changes in net assets. Figure 2 shows that net assets are stable in relation to 2016–17 and the Forward Estimates. However, the ASC is in the process of undertaking a Strategic Asset Management Review to support its business strategy. Decisions taken around this strategy will be done to also the ongoing financial sustainability of the ASC.
While the financial position of the ASC is considered to be sound over the Budget and Forward Estimates, the Commission is reviewing its ongoing capital funding for the refurbishment and replacement of buildings and infrastructure, plant and equipment, to ensure the requirements and strategic direction of the ASC into the forward years, within available resources.
Statement of Compliance
For the reporting period, the ASC did not have any significant issues reported to the Minister for Sport or the Minister for Finance that relates to non-compliance with the finance law.