Prepared by Phil Currie, APHA Treasurer and Kathryn Lee, Director Finance and Administration

The members of the Finance and Audit Committee during the year 2011/12 were

Philip Currie (Chair) Sydney Adventist Hospital

Henry Barclay, Cura Day Hospitals

Craig McNally, Ramsay Health Care

Moira Munro, The Perth Clinic

Amanda Quealy, The Hobart Clinic

George Toemoe, PHA NSW

The APHA financial result for the year ended 30 June 2012 was a deficit of $62,992 (2011: deficit of $123,397).  This pleasing result was $409,584 better than budgeted.

The result for the year reflected an increase in the APHA membership base, with the rejoining of Healthscope Ltd and the continued expenditure on strategic initiatives.  The result for the year before the Strategic Initiatives was a surplus of $295,656.

Revenue, aside from the increase in membership income, was stable.   The table below shows the composition of APHA revenue for the financial year.

APHA Revenue 2011-12 Graph

A five year analysis of revenues shows that total revenue has increase substantially in the last year to the impact of the increase in Hospital members. Aside from the one off item “recovery of administration cost”, from a government grant, income from other sources remains stable and consistent.

5 Year Comparison of APHA Revenue

Expenditure during 2011/12 totalled $1,937,597 which includes $358,648 expended in the continuation of the Strategic Initiatives. Employee costs remain the single largest component of the Company’s expenses.   All items of expenditure are carefully monitored by the Finance  Audit & Risk Committee and Secretariat.

APHA Expenditure

The five year comparsion of APHA expenditure highlights the impact of the strategic initiatives in the overall total expended by the Company each year.  Over this period other items of expenditure have either contracted or modestly increase by CPI.  This careful focusing of funds to progress the Boards planned strategic goals peaked in 2009/10 and is expected to reduce in future years.

5 Year Comparison of Expenditure

The Balance Sheet shows the Association to be in a fiscally sound position.  Assets of cash reserves and Secretariats office in Canberra are more than sufficient to cover the modest liabilities and contribute to the strong net asset position. The APHA Balance Sheet at the 30 June 2012 shows members’ funds of $2,367,397 (2011: $2,430,389).

Member Funds

The auditors, Duesburys Nexia have issued an unqualified audit report for the year ended 30 June 2012.  They advise that the accounts present a true and fair view of the financial position of the company at 30 June 2012 and that they complied with Australian Accounting Standards, Corporations Law and IFRS.