REPORT - Kurrajong Waratah

TREASURER’S REPORT
Mr Peter Perkins
TREASURER
I have pleasure in presenting the Treasurer’s
Report and the Financial Statements for the year
1 July 2009 to 30 June 2010.
A significant indicator of the growth of the
organisation over the year is the increase in
turnover to $21M ($21,000,000) which is 9.5%
greater than the turnover for the previous year.
Total funding from the State and Commonwealth
Governments for operational purposes was
$11.7M ($11,700,000) or 56% of total income,
while income from our own business operations
totalled $6.1M or 29% of total income. Gross
fundraising and bequests amounted to $684K
($684,000).
The outstanding performance of Business Support
Services, Community Accommodation Services
and Community Support Services enabled the
organisation to end the year with an operating
surplus of $1.8M. Net fundraising of $419K and
$1.25M profit on the sale of assets (principally
the sale of the previous recycling site in Chaston
Street) greatly contributed to the total surplus.
The financial success of the year has allowed the
organisation to rebuild its cash reserves which
were depleted from expenditure in excess of $7M
on the new recycling facilities on the new site in
Chaston Street. This expenditure was financed
from our reserves supplemented by a loan of
$2.4M from our bankers. The strong financial
performance over the reporting period has
enabled an accelerated repayment program to the
bank to be adopted by the Board of Directors. An
outstanding amount of $900K now remains owing.
It is of vital strategic importance that the
organisation has a strong asset base and cash
reserves to meet issues in the future, some of
which we are currently aware. Australia has
an ageing population. Many of our clients and
employees are ageing as are many of the carers
and in many cases it is the ageing carers caring
for ageing sons and daughters. The organisation
must have the financial resources to meet the
challenges these issues present as part of the
appropriate planning for the future. The financial
measures described above have not lead to
any reduction in the level of service provision to
our clients – in fact the opposite is constantly
occurring.
As mentioned previously, all sectors of the
organisation have performed exceptionally well
this year.
Work Solutions had an outstanding year. Work
Solutions is the service gateway for people
with a disability into Kurrajong Waratah’s adult
services and arranges for the placement of people
into our Skills Options day services and into
the supported employment businesses which
Kurrajong Waratah operates. As part of the
Disability Employment Network (DEN) services
funded by the Commonwealth Department of
Education Employment and Workplace Relations
(DEEWR), they also place and support people
into employment of their choice in a range of
businesses in the wider Riverina and Murray area
communities. Currently they are supporting over
180 people with disability in these businesses.
Work Solutions is one of the highest performing
DEN service providers in Australia.
Waratah Industries finished the year with a surplus
of $113K compared to a $14K loss last year.
This is the first time in many years that Waratah
Mrs Sharyn Atherton
FINANCE & ADMINISTRATION MANAGER
Industries has achieved such a great positive
result.
Kurrajong Recyclers is capitalising on the
advantages of the new plant as teething problems
have been overcome, to finish the year with a fine
result of a $313K surplus from processing up to
16,000 tonnes of recycling materials.
Kurrajong Business Services is a complex
sector with ten small diverse businesses located
at Wagga Wagga, West Wyalong, Narrandera
and Leeton. There were some very strong
performances notably from Cypress Laundry
and Linen Service in Narrandera and both
Spins Coffee Shop and Spins Recycling in West
Wyalong. While it is to the obvious advantage
of the organization for our Business Support
Services to achieve a surplus, the primary
function of our supported employment is to
provide vocational training and employment to our
employees with a disability.
Overall our Business Support Services provided
supported employment for 152 people with a
disability.
Community Accommodation Services had a
good year with the completion of the two Olearia
Place group homes in Wagga Wagga with capital
funding of $369K from the NSW Government.
Within Community Support Services, both
Skills Options Day Services and Kurrajong Early
Childhood Intervention Service in delivering their
much needed programs, completed the year
above budget expectations.
Expenditure on wages, salaries and associated
payments of $10.5M makes a significant
contribution to the economies of the local
government areas receiving our services
especially through the employment of local staff.
Local economies also benefit as a consequence
of the organisation’s “buy locally” policy as capital
expenditure totalled $1.6M.
As always, fundraising, legacies and bequests
have contributed significantly to our financial
results with a net contribution of $419K.
The organisation also benefits from the
encouragement, support and assistance
generously provided by the community in a variety
of ways.
I must acknowledge the tremendous initiative,
effort and commitment made by the Managers of
the various sectors in achieving these results.
Finally, I extend special thanks to Mrs Sharyn
Atherton, Finance and Administration Manager.
Peter Perkins
Treasurer
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www.kurrajongwaratah.org.au
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