“Every dollar is carefully spent and accounted for in Red Cross.”
1993-1994 Annual Report
These are the summarised financials of Australian Red Cross from 1 July 2013 to 30 June 2014. For our full financial statements, download the PDF Financials here.
During the 2013/2014 financial year we maintained a keen focus on achieving meaningful outcomes to support the most vulnerable people and communities in Australia and further afield. Demand for our humanitarian programs and services remained strong, particularly in the area of migration support. The Australian Red Cross Blood Service successfully navigated the first year of its current three-year output-based funding cycle with the National Blood Authority, delivering a strong operating surplus and adopting a focus on efficiency and value for stakeholders.
Although there were fewer significant natural disasters both nationally and internationally than in previous years, we launched an appeal for those affected by Typhoon Haiyan in the Philippines and raised $13.9 million, enabling us to help people recover and rebuild their lives. At home, we continued supporting those affected by the Tasmanian bushfires, and are close to completing this work.
This financial year we achieved a net surplus of $28 million, $25.9 million of which is from our Blood Service and $2.1 million from Humanitarian Services.
We continue to fund the majority of our services and programs through strategically sought government funds. In line with the preceding year, government funding stood at 84% of our total gross revenue. This funding primarily supports Blood Service operations, which are fully funded by Australian governments, and our work with people seeking asylum.
This year’s total expenditure was $1,080.6 million, of which $555.9 million (51%) was due to the Blood Service and $524.7 million (49%) on delivery of humanitarian services in Australia and further afield.
Community support plays a critical role in enabling both our everyday work and disaster appeals. Support in the form of donations, legacies and sponsorships continues to grow year-on-year, to a total of $97.6 million, including appeal monies in excess of $14 million. The growth in community support for everyday work was underpinned by regular monthly gifts and bequests from generous supporters, which together accounted for more than $52.9 million, around 60% of donation income. These two areas provide a vital source of income for supporting vulnerable people in our communities. The Red Cross Board continues to invest in and develop these sources of income in order to underpin strong foundations for sustainable future fundraising.
Our supporters donated over $13.9 million to our Typhoon Haiyan Appeal. The funds raised for the appeal were used to help individuals, families and communities directly affected by the disaster. Our other sources of income, such as retail shops, continued to provide a reliable source of income for our work.
As an organisation, we continue our keen focus on achieving long-term financial sustainability. Our balance sheet remains strong.
Work continued on our major capital investment project with our national information technology assets upgrade. This four-year project improves the quality of information technology used in front-line programs, and will help us to deliver programs more efficiently.
We made a significant change to the balance sheet this year by derecognising plasma and fractionated blood products held at CSL (Commonwealth Serum Laboratories) Limited, as well as domestic fractionated product held at the Blood Service, and restated our net surplus for the 2012/2013 financial year to $13.6 million. Using the restated surplus result for 2012 to 2013, this year’s net surplus of $28 million represents a 106% increase on the previous financial year.
Specific Purpose funds decreased in value by $13.1 million during the financial year. These funds are income from grants received by Humanitarian Services for future use that have not been spent. The reduction in Specific Purpose funds is due in part to an overall reduction in government funding of $5 million.
As a volunteer-based organisation, our work would not be possible without dedicated members and volunteers. This critical human element, along with in-kind donations and pro bono support – which are not reflected in any single financial line item – makes the work of Red Cross possible.
We are in a strong position to continue delivering on our core mission of making a positive and long-lasting impact on the lives of vulnerable people. Although we expect our support for people seeking asylum will continue well into the future, it is difficult to predict the effect of policy changes continuing from the change of government in 2013. Regardless of the level of demand, we will always be there to support those in need.
Chief Financial Officer
The Australian Red Cross Blood Service produces its own set of accounts. To understand the activities and financial affairs of the Blood Service, the annual report and full financial statements can be obtained at donateblood.com.au. For a more comprehensive view of the financial affairs of the Australian Red Cross Society, including the Blood Service, please refer to the full financial report.