A tough year in tough times The year 2020-2021 has taken its toll in more ways than one, with a strain also felt on ISV’s finances. Treasurer Peter Connelly reports.
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verall, ISV had a net surplus of $7,547 in the year ending 30 June 2021, compared to $87,069 in 2019-20. In 2019-20, ISV received $100,000 of cash flow boost from the ATO. Without this, the result would have been a deficit of $12,931. In financial year 2020-21, the employment costs were down by $109,000 comparing with 2019-20. The loss of grant income comparing with 2019-20 comes to about $100,000, which explains the surplus of 2020-21. ISV continues to receive significant funding under the TEI and CHSP programs. However, funding has been reduced over recent years with the non-renewal of key grants. All the while, organisational costs have remained at historic levels. As a result, ISV has had to draw on reserves to keep operating. This is not viable in the medium to long term. ISV needs to increase income or reduce costs, or both. l Grants and other income fell from $835,750 in 2019-20 to $590,802 in 2020-21 — or a reduction of $244,948 (-29%). l Total expenses in 2020-21 were $583,255 compared to $748,682 in 2019-20, reflecting the termination of previous grants. ISV has had to use its assets to keep the organisation running. This has meant that the level of total assets was reduced from $727,631 on 1 July 2020 to $534,079 by 30 June 2021 — a reduction of $193,552 (-27%). Net assets reduced from $394,735 in 2019-20 to $386,862 in 2020-21. It is not sustainable for ISV to keep using its reserves to pay for day-to-day operations. If ISV received no new funds after all current grants were exhausted, it would only be able to survive for around eight months (based on average monthly costs). A range of strategies have been adopted by ISV to move towards greater financial sustainability. Firstly, the ISV board and staff applied for new grants — one of which has been successful. Resilience NSW has funded ISV under the Bushfire Local Economic Recovery Fund over two years commencing in 2021. There has also been some additional small funding support from the DCJ and City of Sydney. Secondly, the board has adopted a new financial reporting format, which provides greater transparency and enables more effective monitoring of ISV’s financial position. Thirdly, the board is developing an organisational and financial strategy to address the ongoing finances of ISV. A series of conversations and workshops are underway with staff, members, key stakeholders, and board members. Outcomes of this strategy and any proposals for organisational change will be brought to the AGM in 2022. (Full financial statement page 14.) l Peter Connelly was appointed Treasurer in April 2021; Sylvie Ellsmore was Treasurer between July 2020 and April 2021.
5 ISV ANNUAL REPORT 20202021
