Financial Performance

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.

Table 3: Actual costs 2016-17

Total 2,856.7
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

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.

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)
 
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

Figure 5: NDIA Operating Expenses 2013-14 to 2020-21

Figure 5: NDIA Operating Expenses 2013-14 to 2020-21