Chief Financial Officer
“The 2021-22 financial year was a challenging year for Lady Gowrie Tasmania as there were a number of events that had a significant impact on our financial position.”
The 2021-22 financial year was a challenging year for Lady Gowrie (LGT) as there were a number of events that had a significant impact on our financial position. The greatest of these was the re-opening of the State border in December 2021 which saw our services record positive COVID-19 cases among both children and staff for the first time.
Revenue was reduced with LGT deciding to waive gap fees for families who were unable to attend due to COVID-19, and attendances generally decreased with families changing working arrangements. Expenses were also affected with the Board implementing paid Pandemic Leave to support staff unable to work during periods of COVID-19 isolation, while other costs directly attributable to COVID-19 were also absorbed.
The total direct impact of COVID-19 since the border re-opening was $650k.
While this was happening, LGT was still able to pursue its strategic objectives with the acquisition of two properties for future development. The first in the Hobart city centre, purchased with a long-term lease attached, and secondly in Midway Point, which will become an extension of the existing Midway Point service when it opens as a 3-5 year program in mid-2023.
At the start of the year in July 2021 we welcomed the Pedder Patter services, which comprises a long day care service, two outside school hours care programs and a pre-school program. This resulted in the transfer of net assets of $2.5m, including land and building valued at $1.3m.
Our land and buildings were re-valued at 30th June 2022 to update their carrying value to comply with Australian Accounting Standards, and to ensure appropriate insurance coverage is maintained. This was a significant undertaking and resulted in an increase of $8.8m with the amount recognised using an Asset Revaluation Reserve on the balance sheet.
Turnover for the year increased to $27.3m with education and care fees exceeding $20m for the second consecutive year. Total revenue from operations increased from the prior year by $770k, however there was no direct Government support (2021: $2.5m). Costs increased both with the growth of the organisation and due to LGT’s COVID-19 response. This resulted in a net operating deficit of 430k.
Cash assets ($16.4m) continue to form a key component of the balance sheet, and the increased value of land and buildings ($23.5m) has strengthened an already strong balance sheet with the net assets of $37.2m. This financial position provides a platform for pursuing strategic objectives into the future.
The full results for the year ended 30th June 2022 are detailed in the audited financial statements available on the ACNC website linked below. The audit was completed by Wise, Lord and Ferguson, with all mandatory reporting requirements met and an unqualified audit opinion issued.
My sincere appreciation to Wise Lord and Ferguson for their ongoing support in undertaking the financial statements audit. A further thank you to my fellow members of the Finance Sub Committee – Andrew Freshney (Chair), Chris Smith, Sharyn Gill, Mat Rowell and Angela Mason – for their continued commitment to the responsibilities and functions of the Finance Sub Committee. Lastly, a big thank you to the Finance Team for their hard work and diligence throughout the past year.
I look forward to continuing to work collaboratively with both the Board, and the broader LGT team in the coming year.