FINANCIALS 2019
DIRECTORS’ REPORT
The Directors present their report on KU Children’s Services
(the company) for the financial year ended 31 December 2019.
The Directors report as follows:
Operating Result and Cash Flow
KU’s finances are overseen by KU’s Board of Directors and
KU’s Audit & Risk Management Committee who review the
financial reports regularly and provide strategic direction to
KU management.
KU is a financially viable organisation with a strong
balance sheet and adequate reserves. KU’s long history
of responsible financial management confirms KU is
financially sound and progressive. KU has no subsidiary
or related organisations.
At 31 December 2019, KU had a net surplus of $931,615
(2018: $2,858,879), total assets of $92,946,770
(2018: $77,034,959) and net assets of $37,624,763
(2018: $36,825,480). The 2019 net surplus includes
significant expenditure of $3.390m on strategic and social
initiatives. In addition there was a $304k adjustment for
the adoption of AASB 16 Leases.
Short and Long Term Objectives of the
Company
KU Children’s Services has been operating continually since 1895
and has a strong commitment to the provision of high quality
early education and care, inclusion and social responsibility.
In the latter part of 2016, KU launched the Strategic Plan
2017-2019; ‘Creating, Thinking and Doing for today and
tomorrow’. This Strategic Plan outlined five goals that
together ensure KU is a consistently strong, agile and
innovative leader in the early childhood sector.
This report is based on the Strategic Plan 2017-2019
and highlights of the year ended 31 December 2019 are
detailed in the latest Annual Report. The KU Strategic
Plan 2020-2022 was completed later in 2019 for
commencement in 2020.
Our Vision and Purpose
Every child has a right to feel safe, nurtured, valued, and
heard. At KU we contribute to this by delivering, supporting
and leading high quality inclusive play based learning
programs. We provide opportunities for children to become
the creators, thinkers and doers of today and tomorrow.
Our Goals
1. Engaged stakeholders actively delivering outcomes
for our KU.
2. A sustainable, scalable business model empowering
our future.
3. Social policy and investment driving relevant and
impactful outcomes for children.
4. Achieving excellence to advance the status and
standing of early childhood education.
5. Producing knowledge that progresses the sector.
Principal Activities of the Company
The principal activities of KU during the current year have been
the provision of early childhood education and care services.
Performance Measurement
The Annual Report of the Company details the achievements
and performance over the past year measured against
the strategic goals. KU continued to achieve and perform
strongly when measured against these strategic goals.
KU’s key performance indicators are utilisation, staff
turnover and financial performance of individual services.
Company Limited by Guarantee
The Company is incorporated as a company limited by
guarantee. In accordance with the Constitution, every
member of the Company undertakes to contribute $2 to
the assets of the Company in the event of it being wound
up, while he/she is a member or within one year after he/
she ceases to be a member. The Company has 5,172
members (2018: 5,349 members).
KU
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