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STATEMENT OF CHANGES IN EQUITY
STATEMENT OF COMPREHENSIVE REVENUE AND EXPENDITURE FOR THE YEAR ENDED 30 JUNE 2022
Explanation of total comprehensive revenue and expenditure
The National Trust concluded the financial year ended 30 June 2022 with total comprehensive revenue and expenditure loss of $1,560,774 against a budgeted total comprehensive revenue and expenditure loss of $2,058,770. The difference between budgeted and actual total comprehensive revenue and expenditure results primarily from four unbudgeted factors. They are as follows:
I. During the 2022 year, the Department of Conservation funding agreement for 'Jobs for Nature (JFN)' initiative for 'Protecting the Gains' resulted in revenue totaling $1,292k being recognised as income in 'Government
Grants' in the Statement of Comprehensive Revenue and Expenditure. The amount of JFN revenue that was recognised was $478k less than budgeted of $1,770k for 2022. The balance of funds invoiced to the end of the year are held in 'Deferred Revenue'. Refer to Note 9 for further information.
II. During the 2022 year, QEII budgeted covenant expenditure of $2.4m for fencing and survey, which was based on up to 171 covenants and related to both QEII business as usual covenants and any covenants created through the JFN Protecting the Gains funding. Whilst the numbers of JFN covenants approved was fewer than budgeted the total number QEII approved covenants for the 2022 year totaled 170.
The actual fencing/survey costs for the 2022 year were $1m less than budgeted, mainly due to the following reasons: a. While the number of covenants approved (170) was very close to budget, the number registered (104) lagged this figure significantly suggesting delays in the completion of works required to progress approved covenant to registration. Those works include fencing and surveying, which are significant drivers of QEII covenant expenditure. We understand that landowners have faced difficulties in procuring fencing contractors and delays accessing fencing materials. QEII has faced similar difficulty in procuring surveyors due to labour shortages and covid-related restrictions. We can expect that these delayed expenditures will be ‘caught-up’ as labour and supply challenges ease. The unspent costs relating to these delayed covenant establishment works are assumed to be reflected in the $345k increase in ‘Covenant Commitments’ as per note ‘Statement of Commitments’ on page 8. b. We believe there has been an increase in the level of third-party (mainly local council) offsetting of covenant establishment costs due to QEII securing external funding for the fencing of covenants the exact value of which is difficult to assess this time. III. For the 2022 year, the pre 1995 fencing provision was based on a roll-forward valuation completed by
Deloitte. Overall, there was a $1.3m decrease (2021: $1.2m) in the provision, which was mainly due to the effect of the change in the discount rate curve. Refer to
Note 13 for further information. IV. The net effect of the realised and unrealised gains/ losses on the investment portfolio was a loss of $1.9m (2021: gain of $1.0m) recognised as income in the Statement of Comprehensive Revenue and
Expenditure. Refer to Note 4 for further information.
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022
At the beginning of the period Total comprehensive revenue and expenditure At the end of the period Group 2022 Actual $ Group 2022 Budget $
Group 2021 Actual $ 15,368,012 13,903,828 14,552,458 (1,560,774) (2,058,770) 815,554
