Download the full C&K Annual Report 2011

C&K started the year impacted by natural disasters that
resulted in a number of centres being temporarily closed.
The financial impact was significant and the utilisation rate
affected negatively for several months. However as the year
progressed the rates of attendance improved. This focus on
cost control has assisted C&K to manage the growth without
significantly increasing costs as a percentage of revenue.
A key focus has been partnering with the Queensland
Government, providing improved access to kindergartens
for more Queensland children and preparing for the
implementation of the National Quality Framework (NQF).
These changes for the sector required additional resources
to ensure that the expected outcomes were, and continue to
be, achieved.
The overall surplus for the year was $7,063,072. This surplus
included (in addition to the operating surplus), a profit on
sale of assets of $766,200 and capital grants of $3,658,176.
The overall result is a substantial improvement on 2010.
Operating expenditure increased with wages the significant
contributor. Wages increased by 0.94% due to additional
resources required to manage large projects and to provide
support for children with special needs. Although specific
funding is received, the amount is inadequate and C&K
contributes additional funds from its own operations to meet
the demands.
Occupancy costs also increased, with electricity and
cleaning costs being higher than anticipated.
Overall the 2011 financial result was positive for C&K,
however 2012 will continue to be challenging as C&K
balances the needs of the organisation with the
macroeconomic conditions.
Ken Fuller
B.Bus (Accting, Mngt), MBA, CPA AFAIM
Chief Finance and Information Officer
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