Expenditure for the Society was $905.492 million, including $619.801 million (68.4%) expended by the Blood Service. Expenditure within Humanitarian Services increased by 3.6% to $285.691 million this financial year. The percentage of Humanitarian Services expenditure for Australian programs was 49.2%, while expenditure on International programs was 9.1%.
Fundraising costs for Humanitarian Services comprise 7.9% of total expenditure. This includes all expenditure associated with fundraising for our services, administration of emergency appeals and managing pro bono work and non-cash gifts (which are not recognised in the financial accounts).
Administration costs for Humanitarian Services accounted for 12.0% of total expenditure. These costs include information technology, finance, human resources and occupancy expenses, and are critical to delivering our services effectively.
This year considerable effort has been invested in aligning remuneration with industry awards and there is a $16.623 million remuneration review provision for estimates to retrospectively correct several years of potential underpayments to current and former staff. $5.200 million was provided in the previous year, bringing the total remuneration review provision estimate to $21.823 million. The comprehensive remuneration review commenced in 2017 to explore how best to develop a national remuneration framework that will be ‘fit for the future’ of Red Cross. As part of this review, it was identified that the organisation had made incorrect assumptions about the allocation of specific roles to awards.
Our humanitarian work in Australia and overseas (including emergency appeals)
$171.466 million was incurred in providing humanitarian services in Australia and overseas. Over 97.0% of expenditure was on everyday work with individuals and communities including supporting communities to prepare for emergencies. The remaining expenditure was spent on emergency response in Australia and overseas.
The majority of non-emergency response spending ($140.437 million) was for domestic services in Australia, while $25.920 million was spent on everyday work overseas in the Asia– Pacific region. In our emergency appeal work $5.109 million was spent helping people impacted by disasters overseas such as the food crisis in East Africa and the humanitarian challenges in Myanmar. The proportion of funds spent in emergencies locally versus internationally varies from year to year, depending on the location, need and severity of disasters.
Humanitarian program spend
$171.466 million was incurred in providing programs, a 3.0% reduction from 2017. This reduced program expenditure was largely attributable to a $3.135 million decrease in our Aboriginal & Torres Strait Islander programs and a $0.465 million decreased in Community based programs. Despite reduced funding received, our work supporting migrants in transition is still our greatest program expenditure, accounting for 27.4% of total expenditure (25.7% in 2017), and we remain dedicated to delivering much needed services in this area.
Social inclusion services account for the second-largest share of expenditure ($41.115 million), representing our work with people experiencing exclusion from mainstream society due to age, disability, mental ill health, involvement with the justice system, or other factors. Community based programs rank No.3 with $35.605 million expenditure, comprising our work with specific communities experiencing entrenched disadvantage.