Speech Pathology Australia Annual Report 2020

Financial report 2 020 was a professionally and fiscally challenging year, for the Association, our members and colleagues, due to the significant disruption caused by the COVID-19 Pandemic. It is within that context, that it is pleasing to report that Speech Pathology Australia maintained a strong financial position while continuing to provide key services and activities on behalf of members. Speech Pathology Australia’s financial accounts for the end of 2020 show an overall total equity of $3,234,276 which is a small increase on the equity level of 2019. The growth in overall equity is the result of a net profit of $328,104. While the 2020 budget was set for a significant deficit with funds allocated to drive key strategic projects, the impact of COVID-19 meant that business activities were disrupted or not delivered due to imposed state-wide and national restrictions. Consequently, certain income streams were curtailed, while at the same time a number of planned expenses could not be fully enacted. The Association’s assets continue to include strong cash reserves. To ensure continued growth $850,000 was transferred to an investment portfolio to optimise a return on investment from the share market, as banking accounts offered extremely low interest rates. The investment property of Bank Place is retained as an important asset for the Association, which as per Note 9, was last formally valued at $1,7000,000 and continues to appreciate strongly. Additional assets include term deposits held for bequests funds, namely the Elizabeth Usher Lecture fund and the Nadia Verrall Memorial Research Scholarship grants (as mentioned in Note 23); the Queensland Registration Board Legacy Fund (also shown in Note 16 as a liability balance of $329,857, to be expended over the remainder of the 10-year term of the fund); and the bank guarantee term deposit, held as security for the lease on the Association’s national office premises. Further assets include payments to be received from accrued income, including sundry debtors, and prepayments. These assets are offset in part by Current and Non-current Liabilities of sundry creditors (payments yet to be paid); employee entitlement provisions and money received in advance for 2021, noted as deferred income; member fees received in advance for the following financial year; and conference sponsorship income deferred to 2021, due to the cancellation of the 2020 National Conference. The Detailed Profit and Loss Statement shows the overall total income for the year decreased by 5.6% from that of the previous year. The principal income for the Association was membership subscriptions which totalled $4,399,071. This was an increase of $343,192 from 2020 and represented approximately 70% of overall income. A non-budgeted income item of $100,000 arose from the Government’s ATO COVID Cash Flow Boost. Other income noted as Grants ($321,329) relates to the NDIS Information Linkages and Capacity Building (ILC) Grant, provided to develop a “Communication Hub” website resource for people with complex communication needs; the Digital Health Literacy grant; Queensland Registration Board Legacy Funds (drawn from the fund’s balance); and associated grant project management fees.

While membership and other areas of income rose slightly, our usual operating income streams such as the National Conference, which was cancelled, yielded no income. The income received via continuing education was also reduced. In terms of expenditure, the total overall expenses of $5,886,278 before tax, was an 11% decrease on last year’s expenses, reflecting the significant curtailing of particular activities due to COVID-19. Employee expenses remain the highest area of expense for the Association, increasing slightly in 2020. The increase in this area was critical in meeting the immediate and rapidly changing needs of members and the Association during this time. At the same time however, areas of travel, accommodation, venue hire, audio-visual support, consultants, and training and development, were all considerably reduced due to restrictions placed on face- face activities and other projects impacted by the COVID-19 pandemic. Payroll tax was considerably reduced from last year, reflecting the financial offset by the SRO Payroll Tax Relief payments. Amidst the challenges of 2020, rapid moves to virtual platforms to deliver professional education and other member supports to guide practice during the pandemic, were successful. There was also considerable progress made across some key strategic projects, including the introduction of the Learning Hub (LMS), launch of the new Professional Standards and revised Code of Ethics, finalisation of the Speech Pathology in the Justice Settings cost-benefit research, and commencement of the review of the Association’s website and promotional campaigns. With the moderate end of year profit level in sight, the Board committed to an ambitious deficit budget for 2021, to utilise the Members’ reserve funds for further priority areas of SPA’s 2020-2022 Strategic Plan. These include, but are not exclusive to, the commissioning of a comprehensive Speech Pathology Workforce Analysis; researching the cost benefit of early childhood intervention; implementation of a new promotional campaign focussing on GPs and the primary health workforce to increase awareness and recognition of the value of speech pathology services; transition of the new Professional Standards into University Accreditation processes; and an extensive website review informed by the recent Consumer Decision-Making project and member feedback. The Association’s equity remains very strong and provides the basis upon which the Association can continue to extend and enhance its responsive and innovative member services, which proved to be invaluable to members during 2020. It is heartening that membership levels remain high last year and show continued growth in 2021. The Board of Directors, CEO and management team are committed to strong fiduciary management of the Association, sustainability and growth, which in turn will serve to deliver on the needs and interests of members of the Association.

Maree Doble Director, Vice President Operations

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2020 ANNUAL REPORT Speech Pathology Australia