| Financial Performance | 2019/20 ($m) | 2018/19 ($m) | Movement ($m) |
|---|---|---|---|
| Income | 36.2 | 38.1 | (1.9) |
| Grants | 30.6 | 32.2 | (1.6) |
| Rental income | 2.9 | 2.8 | 0.1 |
| Sales and other income | 1.7 | 2.2 | (0.5) |
| Donations and fundraising | 0.7 | 0.3 | 0.4 |
| Interest and dividends | 0.3 | 0.5 | (0.2) |
| Expenditure | 38.1 | 37.9 | 0.2 |
| Employee costs | 28.3 | 27.3 | 1.0 |
| Program costs | 3.8 | 4.2 | (0.4) |
| Property costs | 2.1 | 2.5 | (0.4) |
| Administration costs | 2.1 | 2.2 | (0.1) |
| Depreciation and amortisation | 1.3 | 1.1 | 0.2 |
| Motor vehicle expenses | 0.5 | 0.6 | (0.1) |
| Operating surplus/(deficit) | (1.9) | 0.2 | (2.1) |
| Redress and legal fees | 0.5 | 0.1 | 0.4 |
| Reported surplus/(deficit) | (2.4) | 0.1 | (2.5) |
| Financial position | 2019/20 ($m) | 2018/19 ($m) | Movement ($m) |
|---|---|---|---|
| Current assets | 20.8 | 20.6 | 0.2 |
| Non-current assets | 18.8 | 19.3 | (0.5) |
| Total assets | 39.6 | 39.9 | (0.3) |
| Current liabilities | 8.8 | 6.9 | 1.9 |
| Non-current liabilities | 2.7 | 2.9 | (0.2) |
| Total liabilities | 11.5 | 9.8 | 1.7 |
| Net assets | 28.1 | 30.1 | (2.0) |
| Members funds | 28.1 | 30.1 | (2.0) |
The financial result for 2019/20 was a deficit of $2.35 million. The deficit, which compares to a small surplus of $0.09 million in 2018/19, was primarily the result of 3 factors.
The shift to the National Disability Insurance Scheme (NDIS)
The transition of participants to the NDIS resulted in significant costs. To better align with the NDIS, we discontinued group services during the year which resulted in redundancy costs.
Equal Remuneration Order (ERO)
Increased wages under the ERO were significantly above inflation and the increases in contract revenue and NDIS indexation. This resulted in an overall increase in wages costs as well as an increase relative to income.
National Redress Scheme
Uniting is a participating institution in the National Redress Scheme for survivors of institutional childhood sexual abuse. Payments under this scheme commenced during 2019/20. Additionally, we incurred legal fees related to historic claims against Uniting as the entity responsible for the former Methodist Homes for Children / Mofflyn.
Uniting remains in a solid financial position and expects to return to a surplus in coming years.