Page 27 - Annual Report 2016

FINANCIAL ANALYSIS

3. Expenditure
Generally, an increase in revenue is accompanied by an • The decline in Member Services is caused by the
increase in expenses and that has been the case for the reclassification of QTF employed development staff, as
Association over this period. noted above. The Member Services category represents
grants directly allocated to NQTA, CQTA and SCFBDTA
A brief analysis of the 2016 expenditure follows: for the development of the sport in those regions by
those regions and are consistent with previous years;
• An increase in operating expenses is a natural
occurrence given our growth. The relocation to the • Commercial activity expenses relate solely to the
new Rugby League Central building and the increase inclusion of Brisbane Touch Football and the Premier and
in staff increases our operational expense. There are City Touch competitions for the first time.
two additional noteworthy features of the operating
expenses. The first is the inclusion of depreciation for
this period where previously it has been accounted for 2015 Expenditure Breakdown
as a stand-alone item. The second is the inclusion of
an amortisation expense relating to the acquisition of 3% 7% HR
the commercial competitions which has been noted 9%
previously and further explained in the Notes to the member services
Financial Statements. 33% events
21%
• The increase across Human Resources has been a operating expenses
result of a number of factors. The largest has been the 27% sport operations
reclassification of QTF employed development staff
previously accounted for in Member Services. This commercial activity
correction along with the inclusion of Brisbane Touch
Football and Premier and City Touch staff account for
the increases against 2015. While an increase in expense 2016 Expenditure Breakdown
has occurred, the percentage allocated to this area
remains steady at 33% of expenditure. 8% HR
8%
• Event expenses primarily relate to the inclusion of the 8% member services
Junior Tour and State of Origin, neither of which were 34% events
featured in the 2015 period. There is also a notable
increase in Elite 8 expenses which has two parts. The 9% operating expenses
first is the treatment of contra from sponsorship which 33%
was previously excluded from the activity’s expense; this sport operations
is offset by an equal increase in sponsorship revenue. commercial activity
The second is an investment decision by the organisation
to increase resources and support for the program. Figure 5 - 2015 v 2016 Expenditure Chart

Key Expenditure Areas

Figure 4 – Key Expenditure

2 0 1 6 A N N U A L R E P O RT 25