Chair of Finance Report

This year marked another period of strong performance for Country SA PHN, with continued success in Performance-Based Commissioning, the hybrid model approach, and consolidation of executive portfolios. We also attracted new talent while focusing on reviewing and enhancing our policies and processes.

In the 2023-24 financial year, our income saw a slight increase of $5.5M, driven by expanded program funding and a $1.2M rise in interest income. The overall surplus grew to $503K, up from $402K in 2022-23, with the increase primarily attributed to higher interest revenue. These additional resources enable us to further invest in our Rural Health Innovation Fund, which supports grassroots initiatives aimed at improving health and wellbeing in regional South Australia.

Contractor (service delivery) expenses rose to 86.4% of total expenditure, compared to 85.9% in 2022-23 and 84.2% in 2021-22. This sustained upward trend remains above our internal benchmark of 85%, which reflects positively on our service delivery focus.

Employee costs accounted for 9.8% of total expenditure, slightly up from 9.5% in the previous year but still below our benchmark of 10%. This demonstrates our continued efficiency in managing staffing costs.

We also achieved notable reductions in operational costs, with administration expenses down by $189K and Communication and IT expenses decreasing by $83.7K compared to 2022-23, thanks to management’s proactive approach.

Our auditors, William Buck, have once again issued an unqualified audit report, which serves as a testament to the team’s dedication and commitment to maintaining high standards.

Country SA PHN continues to balance operational efficiency with strong resourcing for service delivery, ensuring high-quality outcomes for SA regional communities. To our knowledge, our performance benchmarks remain some of the best in the National PHN network.

I extend my congratulations to the Executive and the entire Country SA PHN team for another year of excellent work. I would also like to thank my fellow Board members and Executive colleagues for their collaboration in what has been another very productive year.

In conclusion, I’d like to recognise Marg Scarman, our Finance Officer, who recently retired after 29 years of service. Marg’s ability to navigate the intricacies of Country SA PHN financial operations with such precision and consistency contributed greatly to our strong financial performance over many years. We thank her for her service and dedication and wish her all the best in her welldeserved retirement.

Professor Svetlana Bogomolova Chair of Finance