Adelaide Airport's Annual Financial Reports - Essay Example

The following is the summary of the airports assets, liabilities and net position for 2015 and 2016 financial years.

The Adelaide Airport Statement of the Net Position

Current assets 2016 2015

Current assets $26,889,654 $23,876,000

Current restricted assets $11,976,000 $9, 873,000

Non-current assets Net capital assets $160,976,098 $165,096,876

Other non-current assets $870,098 $1,055,907

Long term investments $23,970,000 $22,876,985

Outflows deferred $1,345,700 $100,766

Total assets $226,027,550 $222,879,534

Liabilities Current liabilities $3,345,008 $2,788,886

Non-current assets Long-term debt outstanding $6,750,998 $9,654,342

Net pension liability $8,356,974 Deferred inflows $600,233 Total liabilities $19,053,213 $12,443,228

Total Net position $206,974,337 $210,436,306

The financial position as at the end of 2016 financial year was strong because of total assets of $226 million and total liabilities of about $19 million. There was an increase of total assets by around $3.2 million while the total liabilities reduced by $3.5 million. Therefore, the total net position (total assets-total liabilities) is $296.9 million.

As a manager at customer service department, this is my departments budget for the August 2017.

Operating Expense Budget for Adelaide Airport for a Period of August 2017

Customer Service Department

Payroll Month Year to date

Customer service Budget Actual Variance Budget Actual Budget

Payroll expenses $115,000 $110,000 $5,000 $700,000 $690,000 $10,000

Employee bonus $3,000 $2,500 $500 $4,900 $4,300 $600

Employee overtime $1,600 $5,200 $(3,600) $10,000 $25,900 $(15,900)

Total payroll $119,600 $117,700 $1,900 $714,900 $710,200 $(5,300)

Fringe Fringe benefits $300 $360 $(60) $1900 $1400 $500

Refreshments $40 $80 $(40) $450 $150 $300

Employee appreciation $110 $240 $(130) $550 $340 $210

Total fringes $650 $680 $(230) $2900 $1890 $1010

Travel Meals $110 $80 $30 $650 $730 $(80)

Auto rental $170 $130 $40 $910 $820 $90

Airplane ticket $450 $900 $(450) $3,500 $7,400 $(3,900)

Total travel $7,300 $1,110 $(380) $5,060 $8,950 $(3,890)

Professional service Recruiting fee $720 $760 $40 $4,300 $4,600 $(300)

Professional fee $210 $120 $90 $1,100 $850 $250

Legal fee $60 $10 $50 $500 $100 $400

Total professional fees $990 $890 $180 $5,900 $5,550 $350

General Employee training $450 $500 $(50) $2,500 $3,200 $(700)

Miscellaneous expenses $190 $150 $40 $1300 $1,500 $(200)

Project material $120 $240 $(120) $550 $430 $120

Equipment rental $60 $10 $50 $250 $0 $250

Postage and delivery $60 $50 $10 $330 $290 $40

Software license fee $750 $740 $10 $4,850 $5,150 $(300)

Telephone $250 $240 $10 $1,100 $1,050 $50

Supplies $110 $150 $(40) $550 $640 $(90)

Total general $1,990 $2,080 $(90) $11,430 $12,260 $(830)

Total operating expenses $130,530 $122,460 $1,380 $740,190 $738,850 $(8,660)

My department does not have enough budget which will be used for the payroll of the staff. There is a deficit of $5,300; therefore, the department should be well funded so as to start hiring. On the travel costs, the department required extra money because of cases of higher than expected flight costs. Fringe benefits, on the other hand, had a higher budget than expected since I limit the certain activities. On other general expenses, many expenses are in check.

Recommended Financial Strategies

Using Efficient Technology

The use of efficient technology will reduce the administrative costs mostly. It will streamline the administrative process and tasks which will in long-term reduce material and labor costs.

Reducing Operating Hours

I should look for ways to cut my working hours because the department it is always open even at odd hours. This will lead to a reduction of payroll and other expenses.

Reference

Finance Department. Comprehensive Annual Financial Report Years, 2016 and 2015. Retrieved 14 July 2017, from http://www.adelaideairport.com.au/corporate/wp-content/uploads/2015/12/NJ00274_AAP_Fins_WEB.pdf