Sport Australia incurred an operating loss of $15.149m in 2017–18. The key factors contributing to this loss were:
- an unfunded depreciation expense as a result of revaluations to land, buildings, property, plant and equipment since 2010
- redundancies relating to the organisational restructure
- the transfer of ownership of sporting equipment from Sport Australia to relevant NSOs. The equipment was previously loaned out to NSOs by Sport Australia.
Table 12: 2017–18 results to 2016–17 and to the 2017–18 Original Budget estimates
Note: Budget figures are based on the 2017–18 Portfolio Budget Statements.
Key elements to the financial statement results are primarily associated with revenue and grants. The increase in revenue since 2016–17 is primarily due to additional one-off government measures such as Delivering Commonwealth Games Success. The overall increase in grant funding was mainly due to increased high performance grants in line with the government measures, and transfer of ownership of sporting equipment from Sport Australia to relevant NSOs.
The overall Sport Australia performance against the Original Budget position is detailed in Note 11 of the financial statements.
Key indicators defining the health of Sport Australia’s financial position are demonstrated by its ability to sustain its net asset base, pay debts as they fall due in the short term and maintain prudent levels of long-term liabilities. Sport Australia is committed to managing within resources provided by government and remains in a positive net asset position as at 30 June 2018.
Sport Australia holds financial and non-financial assets. Financial assets include cash, receivables and term deposits.
Non-financial assets support the operations of Sport Australia and include land and buildings, computing software and hardware; and infrastructure, plant and equipment. Consideration
of whole-of-life asset management is undertaken in the context of Sport Australia’s strategic direction to ensure investments in assets support the achievement of Sport Australia’s objectives.