OUR FINANCIAL RESULTS For the year ended 30 June 2013, we met all our financial targets in revenue, expenses and planned deficit: 2013 Actual $m
2013 Budget $m
2012 Actual $m
Gross revenue
16.2
16.1
15.3
Expenses
18.8
18.8
17.5
Realised investment loss
-
-
1.3
Net deficit
(2.7)
(2.7)
(3.5)
With the implementation of our 5-year strategic plan, we've quarantined $6.5 million of our investment portfolio to fund our program development and delivery to meet current and unmet needs of children and families living with cancer. We're working on planned deficit budgets for the first 3 financial years (2013 to 2015). By financial year 2016, we should be back on break even and on track to surplus budgets.
2012/2013 Revenue
Supporting children living with cancer and their families
Gross revenue has grown by 5% to $16.2 million. The main growth in dollar terms has come from corporate partnerships. Compared to last year, we've registered growth in events and community, donor management, grants and government. Bequest income, however, is down by $1.4 million. Although we've made budget overall, we are disappointed not to have hit our budgets in a number of key revenue streams. Our results reflect the tough and competitive environment that we operate in. Over the past 7 years, we've averaged a 9% gross revenue growth per annum.
In 2013, we focused on improving programs and developing new programs to meet identified and unmet needs. We have achieved an increase in program expenditure of 6% in a challenging economic environment. Over the last 7 years, our programs have grown at an average of 13% per annum. 57% of our staff work in program development and delivery. 12000
10000
8000
6000
17000
14% 13%
12000
10%
11000
9%
10000
10395
10000
9782
9000
Recreational Program
Education Program
Hospital Program
Family Support Program
Other programs
6%
2006 2007 2008 2009
2010
2011
2012
2013
G r os s re ve nue Net revenue (net of direct fundraising expenses)
•
•
20000
10% 9%
18000
9% 8%
2006
2007
2008
2009
2010
Administration ratio
2011
2012
2013
16000
14000
12000
10000 8273
8000
7860
7668
7000 6244
6000
5770
8000
Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10
Camp Quality
Morningstar Growth
Cash
ABS Australian CPI AUD
5000 4431
4000
invest in businesses whose objectives are contrary to the culture of a children’s charity Portfolio value should be at least a minimum of 6 months worth of current budgeted expenditure. Should the portfolio value reach 5% or more below the minimum, the budget contingency plan will be activated Portfolio value should not exceed a maximum of 12 months worth of current budgeted expenditure. Should the portfolio value reach 5% or more above the maximum, the Audit & Compliance Committee has the discretion to either increase the cap ratio or develop a plan to bring the portfolio back to its benchmarks within a 12-month period.
12%
7%
8000 7000
11000
The Board, through the Audit & Compliance Committee oversees the investment and management of our investment portfolio. The key principles of our investment strategy policy are as follows: • Growth portfolio aimed at earning returns of CPI plus 6% - 7% over the long term • Benchmarked against Morningstar Growth Index, aiming to beat the 5-year average • Socially responsible investment strategy – we would not knowingly
11%
8%
9000 0
During the year, the management of our investment portfolio was put to tender. We did a comprehensive review of the tenders based on a number of key criteria and have reappointed Centric Wealth for a 2-year term.
13%
11%
13000
2000
13%
12%
14000
Investment Portfolio
Operating with a tight deficit budget, we have managed to come in right on target with our expenditure. We activated a contingency plan towards the end of the 2nd quarter when it was anticipated that we may not meet our revenue budget. Our administration expenses are maintained at 8% of gross revenue. This ratio has been on a downward trend over the years. Over the past 7 years, we've managed to average administration expenses at 10% of gross revenue.
16000 15000
4000
Administration expenses
Relative Performance Index
Financial Performance 2006 - 2013
FINANCIAL PERFORMANCE
2006 2007 2008 2009 2010 2011 2012 2013 P r o gr am e xpenses
42
Jun-11
Jun-12 Jun-13
Morningstar Balanced