Annual Report 2016-2017

Financial statements for the period ending 30 June 2017

In our opinion, the attached financial statements for the period ended 30 June 2017 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the National Disability Insurance Scheme Launch Transition Agency will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the directors.

Signed……………………………… Signed………………………………

Helen Nugent AO Robert De Luca

Chairman Chief Executive Officer

9 October 2017 9 October 2017

Signed……………………………… Signed………………………………

Steve Jennaway Sandra Birkensleigh

Chief Financial Officer Chair, Audit Committee

9 October 2017 9 October 2017

						Original Budget
		2017		2016		2017
	Notes	$'000		$'000		$'000
NET COST OF SERVICES
Expenses
Employee benefits	1.1A	175,013		115,464		184,442
Suppliers	1.1B	262,653		114,490		484,437
Community partnership costs	1.1E	125,687		21,514		-
Grants	1.1C	39,104		8,958		33,284
Participant plan expenses	1.1F	2,238,147		722,679		3,486,713
Depreciation and amortisation	2.2A	8,718		8,886		22,922
Finance costs		444		167		-
Write-down and impairment of assets	1.1D	6,923		82,078		-
Total expenses		2,856,689		1,074,236		4,211,798
OWN-SOURCE INCOME
Own-source revenue
Revenue from rendering of services	1.2A	1,382,615		286,907		1,793,177
Interest	1.2B	13,802		6,219		-
Other revenue	1.2C	1,379		18,315		-
Total own-source revenue		1,397,796		311,441		1,793,177
Gains
Other gains	1.2D	477,495		197,507		820,155
Total gains		477,495		197,507		820,155
Total own-source income		1,875,291		508,948		2,613,332
Net (cost of)/contribution by services		(981,398)		(565,288)		(1,598,466)
Revenue from Government		1,598,466		581,070		1,598,466
Surplus/(Deficit)		617,068		15,782		-
OTHER COMPREHENSIVE INCOME
Items not subject to subsequent reclassification to net cost of services
Changes in asset revaluation reserve		3,675		1,881		-
Total comprehensive income		3,675		1,881		-
Total comprehensive income/(loss)		620,743		17,663		-

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Statement of Comprehensive Income (‘SoCI’)

Affected line items	Explanations of major variances
Expenses Employee benefits, Suppliers, Community partnership costs	The budget anticipated an Average Staffing Level (ASL) of 1,749 employees and actual ASL for the year ended 30 June 2017 was 1,872. ASL is above budget but includes secondees from Commonwealth, state and territory agencies. These positions are funded on a cost recovery basis. The budget aggregates supplier expenses and community partnership costs. The variance to budget for supplier and community partnership costs has resulted from a slower rollout of Local Area Coordinator (LAC) services and Early Childhood Early Intervention (ECEI) arrangements. This has been offset by increase in contractors and consultants expenses incurred by the Agency.
Expenses Grant expenses Own-source revenue Other revenue	The budget included Department of Social Services (DSS) 2016-17 Portfolio Budget Statement Program 1.2 Community Inclusion and Capacity Development (CICD) grant expenses of $33.3 million.  In addition to CICD grants, the Agency incurred expenditure for Sector Development Fund (SDF) and sponsorship grant activities.  The SDF payments were made on behalf of the DSS and are offset by a matching revenue. Other revenue is derived from SDF grant funding and rental income received from the sub-leasing of premises. The budget does not assume revenue from any additional sources.
Expenses Participant plan expenses	Participant plan expenses are lower than projected in the budget due to the slower phasing of participants than anticipated in the bilateral agreements.  Delays experienced in transitioning participants into the Scheme early in the year impacted on the overall participant expenses.  Participants expected to have transitioned into the Scheme earlier in the year had a larger impact on the 2016-17 participant plan expenses than participants entering the Scheme later in the year. In addition, plan expenses have been adjusted on advice provided by the Scheme Actuary to reflect the lower utilisation rate of committed supports.
Expenses Depreciation and amortisation	The Agency has adopted the whole-of-government policies in regard to colocating service delivery sites within existing Commonwealth property infrastructure, where feasible. As a consequence, investment in property, plant and equipment and related depreciation and amortisation expenses are less than projected in the budget.
Expenses Write-down and impairment of assets	Accounting standards require the write-down and impairment of assets that are considered non-recoverable. An assessment of transactions that were considered non-recoverable was undertaken and recognised at year-end. These transactions were not anticipated in the budget.
Own-source revenue Revenue from rendering of services	The budget anticipated the phasing of participants in accordance with Bilateral Agreements. Delays experienced in transitioning participants from existing state and territory programs early in the year impacted revenue received.
Own-source revenue Interest revenue	Interest revenue is derived from the Agency investing cash in short-term deposits. The budget does not assume that cash on hand will be in excess to immediate requirements, whereas a significant amount of surplus cash was held and invested during the year.
Gains Other gains	Other gains primarily reflect in-kind contributions made to the Scheme by Commonwealth, state and territory governments. Other gains are less than budget due to the slower phasing of participants in the Scheme than originally anticipated and therefore the proportion of in-kind services utilised was lower than the targeted amounts agreed in the Bilateral Agreements.