St John Ambulance SA Inc. Annual Report 2019-2020

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St John Ambulance Australia SA Inc Annual Report 2019/20

FINANCIALS CONTINUED

WHERE OUR MONEY COMES FROM – REVENUE Including the gain on disposal of property, plant and equipment, we generated operating revenue of $20,680k during 2019/20, $8,412k or 69% higher than in the previous year due to lottery ticket sales and increased grant and event fee income partly offset by lower income from training, merchandising sales relating to defibrillators and bequests.

WHERE OUR MONEY GOES – EXPENSES

Revenue by category

2019/20 ($’000)

Percentage

2018/19 ($’000)

2017/18 ($’000)

2016/17 ($’000)

2015/16 ($’000)

Expenses by category

2019/20 ($’000)

Percentage

2018/19 ($’000)

2017/18 ($’000)

2016/17 ($’000)

2015/16 ($’000)

Training fees

4,364

21%

5,445

5,182

5,270

5,335

Salaries & on-costs

6,713

35%

5,979

5,566

5,682

5,427

Total expenses including depreciation were $19,320k during 2019/20, $7,398k or 62% higher than 2018/19 due to net higher spend across all expenditure categories partially offset by lower operational and property occupancy related costs.

Merchandising

2,659

13%

2,842

2,231

1,918

1,604

Fundraising

4,750

25%

83

26

22

7

Grants

2,030

10%

1,423

1,146

1,266

1,231

Administration

1,921

10%

1,490

1,441

1,530

1,761

Event fees

1,153

5%

925

944

924

841

Operational

1,166

6%

1,238

1,120

1,192

1,278

Investments

533

3%

567

525

440

433

Merchandising

1,542

8%

1,513

1,091

856

657

Other

614

3%

586

560

873

685

Depreciation

635

3%

475

413

590

600

Fundraising & donations

9,288

45%

301

239

284

141

Property

542

3%

574

606

709

700

Bequests

40

0%

180

106

1,354

35

Marketing

1,823

9%

492

412

382

384

Total

20,680

100% 12,269

10,932

12,329

10,305

Finance

228

1%

78

72

142

181

Total

19,320

100% 11,923

10,746

11,106

10,996

Salaries and on-costs comprised 35% of our total expenses of which:

Administration related expenses increased by 29% from last year, mainly due to higher professional and legal fees, and costs associated with postage and freight, computer software maintenance, fundraising and telephone during 2019/20. Marketing expenses include costs associated with the St John SA 2019 Lottery promotion, and these expenses collectively increased by $1,331k from 2018/19. Merchandising costs increased by 2% from 2018/19 in line with the increase in merchandise sales volumes for componentry items. Profit margins on componentry, kit and defibrillator sales decreased by 1%, 6% and 7% respectively from 2018/19. The gross margin generated by merchandising during 2019/20 was $1,117k, 16% lower than 2018/19.

The remaining 13% of expenses comprised spend on operational items, property including all occupancy related costs, finance, as well as depreciation on property, plant and equipment assets. These expenses increased by 9% from 2018/19. DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT The gain of $40k for 2019/20 was mainly due to the disposal by either sale or scrapping of 10 end of life vehicles. Proceeds from the sale of these vehicles during 2019/20 were $47k. This, together with the scrapping of various property, ICT and plant and equipment related assets following fixed asset stocktakes has resulted in a total gain on disposal of $40k.

The largest contributions to revenue were provided by the social enterprise activities - training fees, merchandising sales and fundraising income, which accounted for 78% of all revenue received. Of the other revenue sources, grants accounted for 10%, event fees 6% and investment income 3%. Fundraising and donation income increased by $8,987k from last year due to the introduction of the St John SA 2019 Lottery. Training fees for 2019/20 decreased by 20% from last year mainly due to the impact of COVID-19 on public course attendee numbers, which reduced by 49% from 2018/19. The fees we received from on-site courses decreased by 1%, with these courses now accounting for 79% of our total training fees, up from 64% for 2018/19. In contrast, fees

from public courses decreased by 53% from last year.

comparison, average event contributions over 2018/19 were $11.10 per hour.

• 42% relates to social enterprise activities,

Merchandising income for 2019/20 decreased by 6% from 2018/19. This decrease was primarily driven by lower defibrillator sales volumes resulting from the impact of COVID-19 on our June 2020 quarter sales. Grant income for 2019/20 increased by 43% from 2018/19 mainly due to the JobKeeper wage subsidy funding received during 2019/20. Event fees increased by 25% from 2018/19 due to the income received from temperature screening for corporate clients, partly offset by lower fees received from cancelled commercial and community events due to COVID-19. Event contributions over 2019/20 averaged $15.22 per hour for the hours provided by adult volunteers at all events. In

Investment income decreased by 35k from 2018/19 due to decreases in managed investment fund distributions and term deposit interest received. Income from bequests decreased by $140k from 2018/19. This decrease was driven by a change in income recognition criteria for bequests under the new accounting standards for income.

• 22% relates to program delivery activities and

• 36% relates to support staff activities.

Salaries and on-costs for 2019/20 increased by 12% on 2018/19 primarily due to the impact of higher average full-time equivalent (FTE) employee numbers over the 2019/20 financial year, increased LSL from an additional 10 employees reaching 5 years of service during 2019/20, and the wage top-up payments associated with JobKeeper. Fundraising expenses increased by $4,668k from 2018/19 due to the costs incurred on funding some of the components associated with the St John SA 2019 Lottery.