Dear Members, supporters, and valued community,
I am pleased to present the Treasurer’s Report for Better Health Network Ltd (BHN) for the financial year ending 30 June 2024. This report outlines our financial performance, position, and achievements over the past year, and I would like to acknowledge the collective effort of our team and our supporters who have contributed to these results.
The year ending 30 June 2024 saw BHN maintain a stable financial position and, in the context of a challenging economic environment, we have continued to deliver high quality health services to our community. The years’ results saw a net deficit against the previous year, which reflects our current investment in systems establishment, finalising amalgamation, and funding continuous quality improvement.
The total income for 2023-24 was $87,742,036. This principally consisted of grant funding of $67,618,994 and reflects a drop in revenue due to cessation of COVID related activity.
The total expenditure for the year amounted to $93,583,425, with a significant portion attributed to employee expenses, totalling $66,754,677. This reflects an increase of $2,080,766 compared to the previous year. The increase in employee costs was a key contributor to the overall expenditure and reflects EBA increases of around 3.2% including related oncosts.
The overall result was a deficit of $5,833,228 which reflects the work of an organisation establishing sound infrastructure and systems, moving towards the closure of the legacy entities.
Integration expenses were around $2.3m largely represented by improvements in technology; migrating legacy organisations to a single domain, migrating payroll and finance systems into a single system and scoping telephony and booking systems which will improve patient and client access once implemented.
Balance day adjustments made in accordance with Australian Accounting Standards revenue recognition requirements has shifted around $1.3m of grant revenue to the balance sheet which has contributed to the deficit.
In addition, high inflation has impacted on non-salary and wage expenses and represents around $1.m in the increase in expenditure.
As BHN matures over the coming twelve months, as a large organisation with enhanced integrated financial systems, we anticipate this deficit will begin to stabilise.
As an organisation with significant financial assets, the Board is committed to applying these assets to services which will improve health and wellbeing outcomes for our clients and communities. Our total liabilities are stable against last year at $24,886,814. Our total assets are $78,659,807 with net assets at $53,772,993 net.
In the coming year, BHN will focus on continuing to responsibly steward our assets to deliver strategic investments, such as necessary expansion of our sterilisation facilities and achieving key deliverables under our strategic plan. This includes streamlining service access for the communities we serve, integrating our client management system to enhance efficiencies, and implementing a comprehensive BHN Digital Strategy.
The financial statements have been audited by the Victorian Auditor General’s Office (VAGO) who provide a detailed analysis of our income, expenditures, assets and liabilities. These statements are available upon request or can be viewed on the BHN listing on the ACNC website: [acnc.gov.au]
On behalf of the BHN Board, I would like to extend our deepest gratitude to our funders, whose contributions and support have been instrumental in achieving our goals this year. BHN relies on the collaboration and generosity of government agencies, private donors, and community partners, and we are incredibly thankful for the impact they help us make. Together, we are building a healthier, more inclusive community, and we look forward to continuing this essential work with you.
I would like to thank the finance team, the management, and the Board for their dedication and support in managing the financial aspects of our organisation. Their expertise and commitment have been instrumental in maintaining our financial stability. I am confident that with continued prudent financial management and strategic planning, BHN will continue to thrive and meet the needs of our community.
Thank you.
Doris Whitmore
Chair of the Finance and Audit Committee, BHN Board of Directors
