Exploring the Financial Landscape of Achieve Australia: An Overview of Income and Expenses

Understanding the financial landscape of non-profit organizations like Achieve Australia is essential for stakeholders, including donors, government entities, and community members. Achieve Australia’s financial report provides an insightful overview of its income and expenses, offering a clear picture of how the organization operates. This analysis focuses on its income statement, expenses, and balance sheet, resulting in an assessment of its overall financial health.

Comprehensive Income Statement Summary

A comprehensive income statement outlines the revenue generated and the expenses incurred over a specified period. For Achieve Australia, the total gross income reported is $46,995,024.

Gross Income

Achieve Australia's gross income comes from several key revenue streams:

• Government revenue (including grants): $43,069,385

• Donations and bequests: $153,338

• Revenue from providing goods or services: $1,707,711

• Revenue from investments: $583,448

• Other revenue: $1,481,142

  
  

This diverse array of income sources is crucial for maintaining the organization’s operations. In particular, government support accounts for over 91% of the total gross income. This heavy reliance emphasizes the importance of public funding for sustaining the organization's goals and initiatives.

Total Revenue

The total revenue of $46,995,024 highlights that the organization's income is primarily based on operational activities rather than speculative ventures. Other income, including gains, amounts to zero, underscoring a focused approach to revenue generation.

Expenses Breakdown

While revenue generation is vital, understanding expenses is equally important for assessing financial health. Achieve Australia reports total expenses of $58,691,074.

Employee Expenses

A significant portion of the expenses at Achieve Australia is attributed to employee costs, which amount to $45,758,260. This represents approximately 78% of total expenses, reflecting the organization’s commitment to investing in its workforce. A competent and dedicated staff is essential for delivering high-quality services to the community.

Other Expenses

In addition to employee costs, other expenses are categorized as follows:

• Interest expenses: $0

• Grants and donations made for use in Australia: $0

• Grants and donations made for use outside Australia: $0

• All other expenses: $12,932,814

  
  

The absence of grants and donations reflects a strategic focus on operational expenditures rather than funding external projects, allowing for concentrated efforts on service delivery.

Net Income Analysis

After evaluating total revenue against total expenses, Achieve Australia reports a net deficit of -$11,696,050. This negative balance highlights a challenging operational environment where expenses significantly exceed revenues.

Other Comprehensive Income

The financial statement reports no other comprehensive income, leading to an overall comprehensive income of -$11,696,050. This situation requires close monitoring to devise strategies for financial sustainability.

Balance Sheet Extract

The balance sheet provides a snapshot of Achieve Australia's financial position at a specific time, revealing key asset and liability figures.

Assets Overview

Achieve Australia's total assets are valued at $37,591,248, including:

• Total current assets: $10,500,347

• Non-current loans receivable: $0

• Other non-current assets: $27,090,901

  
  

This asset balance indicates that Achieve Australia possesses substantial long-term resources. However, effective management of current assets is essential for meeting daily operational needs.

Liabilities Overview

Total liabilities amount to $16,079,838, detailed as follows:

• Total current liabilities: $14,170,949

• Non-current loans payable: $393,950

• Other non-current liabilities: $1,514,939

  
  

The significant current liabilities suggest ongoing financial commitments that require attention in upcoming periods.

Net Assets/Liabilities

The difference between total assets and total liabilities results in net assets of $21,511,410. This positive figure indicates a buffer, suggesting that Achieve Australia holds more assets than liabilities, even amidst operational deficits.

Reflecting on Financial Health

Achieve Australia’s financial landscape shows a complex relationship between its income and expenses, revealing both strengths and areas of concern. With a revenue base heavily supported by government funding and substantial employee investment, the net deficit underscores the need for careful scrutiny.

This financial snapshot reinforces the necessity for strategic planning to ensure sustainability and continued support for the organization’s mission. Stakeholders should look forward to seeing how Achieve Australia addresses these challenges in the coming periods, possibly exploring new revenue streams or adjusting operational costs to improve its financial outlook.

In summary, understanding Achieve Australia's income statement, expenses, and balance sheet can offer valuable insights for stakeholders invested in its future. Careful monitoring and management of these financial aspects will be critical in securing the organization’s long-term viability and effectiveness in the community it serves.