Uniting Annual Report 2019-2020

Financial update.

For the year to 30 June 2020

Fundamentally, Uniting NSW.ACT is a strong and financially sound organisation, with adequate reserves.
Like all community service providers, we’re not immune to the challenges of government funding models and other external pressures. Increasing expenses continue to outpace the increases in revenue, especially with this year’s challenges of COVID-19, the drought and bushfires.
We’ve moved decisively to meet the challenges on all fronts, to ensure the ongoing wellbeing and safety of those we care for.  We’ve done our very best to support our frontline team members, and given them more assistance than ever to continue delivering safe and quality care, including extra training and access to equipment and technology. We also continue our advocacy efforts to increase government support for older people and other vulnerable groups in our community.
We’ve had to make some difficult decisions to keep our services financially sustainable as the pandemic continues. This includes reducing head office roles, closing a small number of services, and delaying capital expenditure.
Our scale will help us weather the FY20 loss, and we have a plan for a steady return to positive results. And we will always deliver on our mission, despite the dips and troughs in the external environment.

FY20 revenue sources

Government subsidies, grants, and program funding represent our main sources of revenue, followed by resident fees, client fees, and other revenue.

FY20 revenue by service stream​

Residential Aged Care continues to be our highest revenue generating service stream.

FY20 expenses​

Our expenses increased by 4.2% this year. Wages increased by 3.7% due to the COVID-19 pandemic, and depreciation rose by 20.4%, reflecting Uniting’s continued capital investment.

FY20 assets

Property, plant and equipment assets increased by 12.6% this year. Significant investment in new and redeveloped buildings and IT systems, to support better quality practices, contributed $236m. Uniting adopted the new Leases Standard (AASB 16) in FY20, which contributed $28m to our asset base.

FY20 liabilities

Total liabilities increased by 10.6% this year. Refundable loans to residents in our aged care homes increased by $35m, and by $41m for independent living residents. Uniting adopted the new Leases Standard (AASB 16) in FY20, contributing $22m of lease liability.

FY20 capital expenditure

Capital expenditure (CAPEX) in Residential Aged Care and Retirement & Independent Living was $189m. A further $44m was spent on land and other items, reflecting Uniting’s continued investment in the upgrading of existing property and development of new property.