Management review of financials
Overall revenues came in at $91.7 million and additional restricted endowment contributions totaled $9.6 million. Overall, the revenues were lower than budget mainly due to lower property acquisition expenses as some planned properties acquisitions did not close. This is not unusual, and the reasons vary from the vendor’s personal circumstances changing, to regulatory requirements or timing of funding.
Other than property acquisition expenses, stewardship expenditures are increasing due to increasing needs to maintain flora and fauna on our properties. Similarly, science expenditures are also increasing, as this work informs the focus of conservation efforts. There has also been an increased use of technology and interns to provide seasonal support.
As reported in the previous year, NCC continues to execute on strategic investments made in the development and marketing areas to increase our fundraising capacity, in terms of both staff investments and increased access to technology and training. As a result, overhead ratios can vary year over year. Management believes the five-year average is a better indicator in reporting the benefits derived versus results in increased conservation outcomes.
At the end of the year, NCC posted an operating surplus of $0.4 million [2017 deficit of $1.3 million] after transfers to reserves and endowments. The land stewardship endowment fund stands at $128.9 million, representing 18 per cent [2017 – 17 per cent] of the overall value of the NCC land portfolio and a testament to NCC’s financial commitment to stewarding these lands in the long term.
NCC continues to maintain a healthy balance sheet and prudent reserves, with low long-term debt and only short-term bridge financing and trade payables in amounts owing.