We have recorded a surplus of $20.6 million for the 2015/2016 financial year. Of this, $24.6 million relates to the government-funded Australian Red Cross Blood Service, while our programs to deliver humanitarian outcomes under Humanitarian Services recorded a deficit of $4 million including depreciation and amortisation, and generated a positive operating cash flow of $5.3 million.
The Blood Service surplus is attributed to the surplus from the capital program of $18.5 million and surplus from the Main Operating Program of $5.4 million. The capital program surplus is net of $46.2 million in depreciation. These funds will be used for ongoing investment in the national infrastructure required to run the Blood Service.
Funds raised in Australia for international disasters amounted to $1.4 million to support the humanitarian crisis in Syria and $4.5 million to provide relief after Tropical Cyclone Winston in Fiji. These funds are being used to support the enormous task of rebuilding communities.
Income and expenditure
Total income for the year was $894 million, of which $600.5 million relates to the funding provided for the operation of the Blood Service and $293.5 million was generated through Humanitarian Services.
Support from the Australian community was invaluable, with over $93 million donated for the purpose of improving the lives of the most vulnerable. Government funding of $154.9 million (excluding National Blood Authority) has been used to run a range of programs and support services for communities in Australia and overseas. This government funding has been declining ($252.8 million in 2015), representing the scaling back of our government-funded migrant support programs. Our other sources of income, such as retail shops and disability employment services, continued to provide valuable contributions to further extend our capability to reach those most in need.
This year’s total expenditure was $873.4 million, of which $569.1 million was funded by government contracts for the purpose of operating the Blood Service and $297.5 million was directed to the delivery of humanitarian services in Australia and further afield.
Statement of financial position
The health of our balance sheet improved over the last financial year despite being impacted by the reduction in government funding for our programs for people seeking asylum.
The Society’s cash balance at 30 June 2016 of $230.7 million is largely reserved for the restricted purposes of operating the Blood Service. During the year Humanitarian Services repaid all bank overdrafts and borrowings of $10.6 million and the Blood Service increased its investments by $37.7 million. Red Cross invests funds that are not immediately required in accordance with our ethical investment policy.
The net movement in our Humanitarian Services specific purpose funds of $11.9 million represents the progress we are making on expanding grant and appeal funding received in previous periods.
Acting Chief Financial Officer
The Australian Red Cross Blood Service produces its own set of financial statements. 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 available at redcross.org.au/files/Financials_2016
Where there is reference to the Society in our financials, this refers to the consolidation of the two divisions of Australian Red Cross. These two divisions are the Blood Service, which supplies the Australian community with safe, high quality blood and related products; and Humanitarian Services, which provides a range of services supporting vulnerable people and communities.