KU Annual Report 2016 | Page 4

Chair’s Report KU respectfully acknowledges the traditional owners of the many lands on which our services are delivered. The contribution by Aboriginal and Torres Strait Islander people to the education of young children existed long before our story began. For more than 120 years KU has responded to the changing needs of families, and more recently, the competitive nature of the childcare market. As the custodians of KU – today and into the future, the Board’s responsibility is to shape an organisation that meets our families’ needs and ensures the delivery of high quality education for generations to come. A small operating deficit in 2014 led the Board and Management to focus on realigning KU’s operating model, shifting the organisation into a more financially sound position, and underpinning KU’s financial sustainability in the long term. To this end - the Board and Executive committed to a Return on Revenue target annually of between 3 and 4.5%. This Annual Report presents a challenging and rewarding chapter in KU’s journey - delivering the Strategic Plan 2013 to 2016: Building on the KU Difference, to ensure a strong, sustainable KU that is well equipped for the years ahead. Our commitment to surplus allows us to invest in high quality educational programs that deliver exceptional results for children and their families, and alongside KU’s continued investment in social impact outcomes, reaching and supporting the most vulnerable children. Delivery of this surplus will have KU well positioned to continue innovating, leading and evolving the organisation. Our achievements over the past four years have been many, and 2016 was no exception. Our programs and services lead the sector’s quality standards by an enviable margin. We continue to train, develop and retain the best educators in the country, and we continue our commitment to social inclusion, launching in 2016 the KU Reconciliation Action Plan. 121st Annual Report 2016 Following a sound financial result in 2015, we are pleased to again report a surplus in 2016 alongside our commitment to reinvest that surplus in accordance with our values and strategic priorities.