KU Annual Report 2016 | Page 18

KU Financial Report Directors’ Report The Directors present their report on KU Children’s Services (the Company) for the financial year ended 31 December 2016. 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 2016, KU had a net surplus of $5,563,232 (2015: $5,340,237), Assets of $69,904,640 (2015: $63,885,772) and net assets of $28,228,521 (2015: $22,665,289). 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, inclusion and social responsibility. During 2016, KU extended the implementation of the Strategic Plan 2013-2015 “Building on the KU Difference” to fully complete the objectives of the plan. The new Strategic Plan 2017-2019 was also developed and launched at the Annual Conference held in the latter part of the year. Some of the highlights of this period are detailed in the 121st Annual Report for the year ended 31 December 2016. Our Vision Every child can experience high quality early childhood education, where they can play, discover and learn. Our Objectives 1. Deliver the best possible outcomes for children and families 2. Inspire a community of professionals 3. The “KU Difference” is understood and valued 4. Develop and operate innovative service models 5. Equitable access and participation 6. Shape sector and government thinking and policies 7. Well managed and sustainable organisation 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 5,739 members (2015: 5,714 members). 121st Annual Report 2016