Annual Report 2016-2017

20.Financial performance 2016-17

This section of the Annual Report provides a summary of the financial performance of the Agency in 2016-17.

Overall, the Agency recorded a surplus of $617 million. Revenue and Expenses by Programs are discussed below. A full set of audited financial statements for 2016-17 have been included in Section 4.

Table 3: Actual costs 2016-17

Program	2016-17 $M
Program 1.1: Reasonable and necessary care and support for participants	2,243.2
Program 1.2: Community inclusion and capacity development grants	33.5
Program 1.3: Agency costs	580.0
Total	2,856.7

Note: Discrepancies in totals may exist due to rounding. The estimates include notional costs of transition to full Scheme over the forward estimates period. State and territory contributions to the trial phase of the Scheme have been agreed in the context of the Intergovernmental Agreement on the National Disability Insurance Scheme Launch. Negotiations on transition to full Scheme are ongoing.

Ratio of operating expenses to Scheme costs

The ratio of operating expenses to Scheme costs has decreased to 25.9 per cent when compared to last year’s ratio of 33.3 per cent.

Financial performance

The Agency received an unmodified audit opinion on the 2016-17 financial statements from the Australian National Audit Office.

Funding

The Agency is funded through a combination of cash and in-kind contributions as agreed between Commonwealth, state and territory governments.

In 2016-17, states and territories contributed $1,376.5 million for reasonable and necessary support for participants and the Commonwealth contributed $1,714.7 million. The Commonwealth’s contribution included $873.4 million for reasonable and necessary support for participants, $33.3 million for grants, $691.8 million for Agency operating costs and $116.2 million in capital funding.

The Agency also received $475.5 million of in-kind (non-cash) income from governments in the form of existing programs that are transitioning into the Scheme.

Financial performance 2016-17

The Agency ended 2016-17 with an operating surplus of $617 million, compared to a surplus of $15.8 million in 2015-16.

Highlights:

The Agency incurred $2,243.2 million in expenses related to Program 1.1. This included $2,238.2 million for participant plan expenses and $5.0 million impairment expense recognised against cash advances made to participants in previous financial years.

Total grant expenses recorded by the Agency in 2016-17 were $39.1 million. $33.5 million of this is directly related to Program 1.2. The remaining $5.6 million of grants provided include sponsorships and other grants and are attributable to Program 1.3.

In addition to the $5.6 million grant expenses, the Agency recorded $574.4 million in operating expenses for the Agency, which includes $125.7 million of community partnership costs. These costs relate to Program 1.3.

Forward position

In 2017–18 total expenses are forecast to exceed $9.1 billion including $8.0 billion to be incurred in providing reasonable and necessary supports of Scheme participants.

21.Statement of financial position

Equity

The total equity of the Agency at 30 June 2017 was $862.5 million, representing contributed equity of $205.7 million, reserves of $5.6 million and retained surplus of $651.2 million.

Assets

Total assets held by the Agency as at 30 June 2017 were $1.6 billion.

Liabilities

The Agency’s total liabilities as at 30 June 2017 were $709.5 million.

The Agency has sufficient cash reserves to pay its debts as and when they fall due.

Table 4: Expenses and grants 2013-14 to 2020-21

	Operating Expenses ($000)	CICD Grants ($000)	Participant Plan Expenses ($000)
2013-14 Actual	123,180	4,515	130,861
2014-15 Actual	169,841	14,928	451,293
2015-16 Actual	266,709	7,008	800,520
2016-17 Actual	580,083	33,503	2,243,103
2017-18 Estimate	1,033,017	68,871	8,045,077
2018-19 Estimate	1,393,872	105,264	14,267,086
2019-20 Estimate	1,143,913	119,348	17,855,828
2020-21 Estimate	1,096,187	118,603	19,165,494

Case study:

Lisa and Austin

Mum Lisa knows firsthand that transitioning to the NDIS can be tricky; especially when you’re juggling three children and a university degree.

“It (the NDIS) was difficult and hard for me to set up because I was at uni full-time, the kids were doing Jiu Jitsu, and I had constant other children’s appointments,” Lisa said.

“I know setting up to be part of the NDIS is a long, hard road but when you get there, it’s easier and it’s so good – it’s just so worth it!”

Lisa’s eldest son, 14 year-old Austin, was born with a rare chromosomal disorder which caused Duane syndrome – a congenital eye disorder leaving him with blurry vision, as well as two forms of epilepsy.

“Austin’s condition makes it hard for him to function but since he’s been part of the NDIS, he’s really improved,” she said.

“I get one-on-one in-home support for Austin, a few hours a week.

“I engaged a local support provider because I wanted to choose a qualified female support worker – someone he would love and relate to. We hit the jackpot with Emma who can stop and take her time with him in the morning, where I can’t, and he’s not having me do everything for him, it’s giving him more independence.”