Finance Report for year ended 30 June 2014
Philip Currie, Treasurer and Ruth McGorman-Mann, Director Finance and Administration
The members of the Finance, Audit & Risk Committee during the 2013/14 year were
Philip Currie (Chair) Adventist HealthCare
Henry Barclay, Cura Day Hospitals
Craig McNally, Ramsay Health Care
Alan Morrison, Sportsmed SA Hospital
Moira Munro, Perth Clinic
Amanda Quealy, The Hobart Clinic
The APHA financial result for the year ended 30 June 2014 was a surplus of $43,086 (2013: deficit of $46,353). This result was $211,843 better than budgeted.
The result for the year reflected a 3.3% increase in the APHA hospital membership base and continued expenditure on strategic initiatives.
Revenue for 2013/14 totalled $2,004,221. Along with an increase in hospital membership revenue there was also an increase in Associate memberships and an increase in surplus from the annual APHA Conference in March 2014. Demand for other services such as the National Procedure Banding information, has also increased. Revenue from interest income has declined as a result of lower interest rates offered on cash reserves. The graph below shows the composition of APHA revenue for the financial year.
Total revenue has increased substantially in the past two years as a result of the increase in Hospital members. Sponsorship income has remained relatively stable while revenue from Associate members and Other services has stabilised after declining over the past five years. Interest on term deposits has declined over the past five years.
Expenditure during 2013/14 totalled $1,961,135 which includes $197,687 for Strategic Initiatives. Employee costs remain the largest component of expenditure. All items of expenditure are carefully monitored by the Finance, Audit & Risk Committee and Secretariat.
The five year comparsion of expenditure highlights the impact of the strategic initiatives in the total expended each year. The focusing of funds to progress the Board’s planned strategic goals peaked in 2009/10 and is expected to stablise in future years. Other expenses in 2013/14 include the cost of hosting Member Forums on Social Media, the initial build of the new PH News website and political liaison.
The Balance Sheet shows the Association to be in a sound financial position. Assets include cash reserves (held in term deposits) and the Secretariat office in Canberra. These are significantly higher than the liabilities held at balance date and contribute to the strong net asset position. The Balance Sheet at the 30 June 2014 shows members’ funds of $2,364,130 (2013: $2,321,044).
Our auditor, Duesburys Nexia has issued an unqualified audit report for the year ended 30 June 2014. They advise that the financial statements present a true and fair view of the financial position of the Association at 30 June 2014 and its performance for the year and that they complied with Australian Accounting Standards and Corporations Law.