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Message from the Chief Financial Officer

Over the past year, we have made considerable progress in responding to people who are vulnerable through our everyday work in Australia and further afield. We have also reduced our debt by selling our NSW head office property in Clarence Street, Sydney and relocating staff from the Clarence Street and York Street offices to one location in St Andrew’s House.

Organisationally Red Cross has significantly expanded its core work in migration support, and has rapidly increased its capacity to meet the demand for programs and services supporting asylum seekers and refugees. This is in addition to maintaining and growing our other programs working with the most vulnerable people in our communities.

Our fundraising and commercial activities have played a critical role in ensuring we can continue delivering our everyday programs and monitoring and evaluating their progress, and we are investing in these areas to fund future growth across the organisation.

Income and expenditure of the Society

The Society is made up of the Non Blood Humanitarian Services and the Blood Service. The Income Statement shows the Society recorded a surplus of $39.4 million, compared to a surplus of $116.2 million for the year ended 30 June 2011.

The financial summary on pages 53-59 focuses on the humanitarian activities of the organisation, excluding the Blood Service. For a more comprehensive view of the financial affairs of the Society, including the Blood Service, please refer to the full financial report available at

Non Blood Humanitarian Services

Compared to last year, the total income received for the year increased by 25%. Income received through government funding has increased by 81% due to significant growth in migration support activities.

Over $60.8 million was recorded in financial support from donors, corporations and bequests. Of this, funds for everyday work of $56.7 million (excluding disaster appeals) increased 6%. In addition to this, there is also tremendous support for the organisation through volunteering, pro bono services and in-kind donations.

Despite a challenging commercial environment, our Retail and College activities delivered results that are comparable with past years. Our sale of the Clarence Street office in Sydney resulted in an income of $25.8 million.

Expenditure increased by 33% from last year to $376.2 million, which is primarily driven by Migration Support Programs that are fully funded by the Department of Immigration and Citizenship. Administration and Accountability costs have also increased in support of these programs.

Blood Service

Australian Red Cross Blood Service is fully funded by the National Blood Authority, and both income and expenses have increased in comparison to last year. The Blood Service produces its own set of accounts for the Blood Service Authority. To understand the activities and financial affairs of the Blood Service, the annual report and full financial statements can be obtained at

Financial Position of the Society

At $225.3 million, cash held is comparable to last year. A total of $190.7 million is held in bank bills to maximise interest income at minimum risk and maintain prompt access to the funds as required.

Specific Purpose Funds, in the Equity Section, represent Grant Income received by Non Blood Humanitarian Services but not spent, to be held for future use in accordance with the Grant terms. These funds have reduced by $11.5 million (19%) from last year. This decline is made up of decreases in International Projects of $20 million, increased Domestic Non Blood Humanitarian Services of $10.7 million and a decrease in Tsunami Appeals of $2.2 million.


We continue to work towards making a positive and lasting impact on the lives of vulnerable people, through our focus on our Seven Priority Areas and Ways of Working.

Our strategy commits us to strengthen the organisation for the future through further improvements to our systems. We have commenced a three year implementation of a new organisation-wide IT system to deliver process and cost efficiencies. Over the last two years, work has been completed to harmonise critical business processes, which will enable new technology solutions to be rolled out over the next year.

We continue to focus on sustainable growth in our programs and services, however recent changes in the Federal Government’s decision to implement offshore processing for asylum seekers arriving in Australia by boat may affect our overall growth. The Society is in a healthy position to further deliver on its core mission of making a positive and long lasting impact on the lives of vulnerable people.

Sandy Chakravarty
Chief Financial Officer