1 INTRODUCTION

I refer to your email of 9 May 2022 requesting for a descriptive analysis of the Riding for The Disabled Association SA Inc’s (“RDASA”) financial statements from 31 December 2013 to 31 December 2020 (“Investigation Period”); and subsequent correspondence.

This information is provided to assist the leadership of the Port Pirie RDASA Center in understanding the progression of the progression of the RDASA’s financial position over the Investigation Period.

As requested, below is a discussion of my analysis.

2 DATA

To prepare these results, I have relied on the annual pdf financial statements as at each 31 December 2014, 2015, 2016, 2017, 2018, 2019 and 2020 provided by the President of the Port Pirie RDASA Center. I understand that these annual financial statements are publicly available on the RDASA’ official website.

While I have not verified or audited the data provided, I have reviewed the data for general reasonability and internal consistency; and am satisfied that the data is valid, comprehensive and accurate for the purposes of this exercise.

If the data is not accurate or complete, the results may differ significantly from the results that would be obtained with accurate and complete information; this may require later revision of the results.

3 APPROACH

Annual income and expenditure in the financial statements is split between the State Office and Branches (“hb”) for cashflows relating to the head Office and Branches; and State Office and OHH (“h”) for cashflows relating to the Head Office (2013-2018) and including O’Halloran Hill Branch (2019-2020).

The analysis below id n respect of the cashflows relating to the State Office and Branches only.

The following tasks were undertaken in the preparation of these results:

  • Conversion of pdf tables to MS Excel;
  • Consolidation and validation of data; and
  • Performance of a descriptive analysis of the annual income and expenses.

4 RESULTS

I conducted a descriptive analysis of the income and expenses of the RDASA over the Investigation Period. More specifically, I have prepared the following:

  • Graphical illustration of the comparison of annual income and expenditure;
  • Summary of income and expenditure descriptive statistics;
  • Graphical illustration of total annual income, expenditure and net cashflows;
  • Graphical illustrations of average annual income and expenditure cashflows;
  • Graphical illustrations of annual expenses that are greater than each respective reporting year’s average expenses (2017-2020);
  • Graphical illustrations of annual expenses that are greater than each respective reporting year’s average expenses (2013-2020); and
  • Graphical illustrations of annual expenses that are greater than each respective reporting year’s 25th percentile and less than average expenses (2017-2020).

5 INCOME AND EXPENDITURE COMPARISON (2013 - 2020)

Income and expenditure over the 8-year period is consistently correlated with moderate surpluses and deficits as shown in paragraph 9 below. There is a general decrease in income over the 8-year period which is probably driving the corresponding decreasing trend in expenses over this period.

Below is a graph showing the income and expenditure over the period from 2013 to 2020.

6 DESCRIPTIVE STATISTICS

7 Expenses broken down by financial year

Below is a breakdown of summary statistics in respect of expenses. The Average column shows average expenses; and the 25th percentile column shows the amount of expenses falling below 25% of the overall distribution of expenses in each financial year. These two key metrics are used to break the expenses data down in paragraphs 12-14 below.

Average expenses marginally increased annually over the 8-year period while total expenses decreased noticeably.

Table 1 Expenses broken down by description
Financial year Frequency Average 25th percentile Total Standard deviation
hb13 51 19609.61 1449.00 1000090 47808.22
hb14 51 19982.06 1412.00 1019085 47996.78
hb15 50 24996.46 2539.50 1249823 62742.51
hb16 50 23856.68 1410.75 1192834 55603.51
hb17 42 22057.21 1691.00 926403 49313.04
hb18 42 19179.55 703.75 805541 49811.60
hb19 36 24780.97 1552.50 892115 62256.27
hb20 36 23900.64 1659.25 860423 69992.92

8 Income broken down by financial year

Below is a breakdown of summary statistics in respect of income. The Average column shows average expenses; and the 25th percentile column shows the amount of expenses falling below 25% of the overall distribution of expenses in each financial year.

Average income initially increased between 2013-2016; and decreased between 2016-2020. Total income decreased over the 8 year period.

Table 2 Income broken down by description
Financial year Frequency Average 25th percentile Total Standard deviation
hb13 19 58422.68 3238.0 1110031 76938.00
hb14 19 68228.11 3100.0 1296334 93624.17
hb15 15 81137.80 9471.0 1217067 80233.41
hb16 15 99026.87 18344.0 1485403 169479.01
hb17 14 66208.79 14482.0 926923 54258.76
hb18 14 71202.14 15127.5 996830 84446.68
hb19 15 56314.33 951.0 844715 74327.08
hb20 15 55256.13 13921.5 828842 63225.69

9 Total cashflows

Below is a graph showing the annual progression of income, expenditure and surpluses/deficits.

Noticeable surpluses were achieved in 2013, 2014, 2016 and 2018 with marginal deficits being achieved in the remaining years.

10 Average cashflows

Below is a graph showing a comparison of average expenses and average income over the 8-year period.

11 EXPENSES

12 Expenses greater than means 2017 - 2020

Below is an illustration of significant expense items whose amounts are greater than each year’s average expenses over the most recent four year period between 2017-2020.

It can be seen that the following expenses are significant across all financial years:

  • Employment Expenses
  • Livestock Expenses
  • Repairs & Maintenance
  • Insurance
  • Consultants

The following expenses in relation to 2017 and 2018 are not common across all years:

  • Depreciation (2017 and 2018)
  • Prior year adjustment (2017)

13 Expenses greater than means 2013 - 2020

A more granular illustration of the expenses that exceed each respective annual average expense amount over entire 8-year period is shown below.

Some expenses are found in the years between 2013-2016 and not in subsequent years. These expenses include:

  • Rent
  • Coaching expenses
  • Volunteer expenses
  • Grant expenses

Depreciation expenses are also present in 2013, 2014, 2015 and 2016.

14 Expenses between 25th percentiles and means 2017 - 2020

In order to illustrate a reasonable sample of expenses with small amounts, I have created a subset of expenses whose amounts fall between each respective financial year’s the 25th percentile and the average expense over the most recent four year period between 2017-2020.

15 APPENDIX 1: Expenses broken down by description

Below is a breakdown of expenses by item description in descending order of amount.

Table 3 Expenses broken down by description
Item Frequency Average 25th percentile Total Standard deviation
Employment Expenses 8 325674.7500 294163.75 2605398 57201.8680
Livestock Expenses 8 164482.5000 130408.75 1315860 42429.0571
Depreciation 6 103608.5000 95318.75 621651 14118.1974
Repairs & Maintenance 8 44002.0000 36105.25 352016 12442.5735
Insurance 8 35649.2500 33129.50 285194 5457.8319
Consultants 6 36415.1667 6172.50 218491 41535.2140
Rent 8 26749.0000 6685.00 213992 22134.4855
Fundraising 6 30232.8333 14918.75 181397 20184.3877
Rider Registration 8 18984.3750 14657.00 151875 6684.6235
Software 8 15606.6250 8089.50 124853 8785.0379
Coaching Expenses 8 14160.3750 8376.75 113283 7513.6269
Grant Expenses 8 14145.6250 7313.50 113165 11344.7436
Capital Expenditure (Non Depreciable) 8 13367.2500 4948.50 106938 11593.3123
HACC Expenses 8 12624.0000 8961.75 100992 8934.5266
Travel Expenses 8 11792.1250 8094.25 94337 7297.6516
Electricity/Gas 8 10780.5000 8862.50 86244 3334.5593
Operational Costs 8 10217.3750 5084.50 81739 6364.6278
Volunteer Expenses 8 9972.7500 3796.25 79782 8897.2383
Consultant - Accounting 2 33962.0000 32568.00 67924 3942.8274
Motor Vehicle Expenses 8 8290.8750 5500.75 66327 3301.6937
Sundry Expenses 4 15693.0000 14895.50 62772 2372.4929
Agistment 4 14764.5000 13057.50 59058 2700.3829
Printing 6 9606.3333 7261.00 57638 3819.0152
Audit fees 4 12912.0000 10842.75 51648 3071.9161
Horse Purchase 4 12351.0000 11075.00 49404 3032.4443
Rider Equipment 4 11797.7500 9540.00 47191 8150.6280
Meeting Expenses 8 5538.2500 2812.75 44306 4424.7430
Site Development 4 10673.5000 4390.75 42694 11512.3969
Subscriptions 8 5080.7500 3837.50 40646 2114.9420
Telephone 4 10145.0000 7916.50 40580 2637.2716
Telephone, Internet & Website 4 9551.5000 8439.50 38206 1545.4280
Utilities 8 4686.8750 2896.00 37495 2849.7554
Bad Debts 4 8624.5000 2178.75 34498 9083.6328
Office Cleaning 8 4175.5000 2790.50 33404 2312.6797
Prior year adjustment 6 5389.0000 0.00 32334 19641.9983
Audit Fees 4 6971.0000 4924.50 27884 3824.3272
Computer Maintenance 8 3262.1250 1037.00 26097 3265.8084
Consultants - Other 2 12004.5000 6796.25 24009 14731.1556
Relocation Expenses 2 9883.0000 4941.50 19766 13976.6726
Write off Assets 2 9063.0000 4531.50 18126 12817.0175
Donations & Gifts 6 2929.6667 427.25 17578 3449.9516
Postage 6 2757.8333 2043.75 16547 928.1408
Advertising 8 1919.0000 649.50 15352 1470.7469
Lease Expenses 4 3649.0000 1380.00 14596 3934.5908
Postage, Printing & Stationery 2 7116.5000 6561.75 14233 1569.0699
Rates & Taxes 8 1774.2500 373.75 14194 1355.4589
Bank Charges 8 1627.3750 1410.75 13019 410.0125
Committee Expenses 6 1828.5000 28.00 10971 1995.1030
Competition Expenses 6 1818.1667 977.50 10909 1620.0344
Staff Development 4 2301.0000 979.00 9204 2327.2896
Membership Fees 8 954.5000 702.25 7636 623.7456
Promotions 8 829.0000 0.00 6632 1093.7109
Loss on Disposal of Asset 2 3103.0000 1551.50 6206 4388.3047
Security 6 948.1667 416.00 5689 1424.3365
Loss on Sale of Asset 2 2696.0000 1348.00 5392 3812.7198
Dressage 6 811.1667 786.75 4867 423.6656
Conferences/Seminars 6 414.5000 9.50 2487 536.6130
Freight 2 373.0000 206.00 746 472.3473
Affiliation Fees 2 311.5000 159.75 623 429.2138
Variety Club Payments 4 129.7500 0.00 519 259.5000
Assets transferred to Head Office 2 0.0000 0.00 0 0.0000
Hero Fund Grant 6 -50.0000 0.00 -300 1172.6039

16 APPENDIX 2: Income broken down by description

Below is a breakdown of income by item description in descending order of amount.
Table 4 Income broken down by description
Item Frequency Average 25th percentile Total Standard deviation
Donations & Gifts 4 348243.750 242482.50 1392975 236791.2698
Other 12 76695.583 17184.25 920347 92834.8763
Lesson Income 8 106107.125 92156.75 848857 16660.7795
NDIS 6 138684.833 50135.25 832109 111029.0750
Dept of Sport & Recreation 8 94271.875 40492.75 754175 85634.3214
Disability Services Office 8 90561.250 15367.75 724490 71966.1601
Home & Community Care Program 6 91481.667 29005.75 548890 72700.8360
Variety Club Grant 8 65271.125 55213.75 522169 25615.4277
Fundraising 8 60483.750 24947.00 483870 46910.3007
Donations & Gifts & Gifts 4 113738.250 100533.25 454953 31378.0100
Other Grants 4 81988.000 43481.50 327952 59334.3838
Rider Registrations 8 30733.875 28972.00 245871 3243.8231
Centres Contribution 2 118534.500 69527.25 237069 138613.4352
Government - JobKeeper Allowance (COVID- 19) 2 69750.000 34875.00 139500 98641.3960
Interest 8 14919.750 10961.75 119358 7228.1375
Government - Cashflow Boost (COVID-19) 2 32460.000 16230.00 64920 45905.3722
Hire/Lease 6 4098.333 1985.50 24590 2921.1462
Membership Income 8 2669.625 1976.25 21357 745.4467
Sundry 2 10358.500 5480.25 20717 13797.7746
Government (State) - COVID-19 Grant 2 5000.000 2500.00 10000 7071.0678
Profit from Sate of Assets 2 3982.500 2991.25 7965 2803.6784
Bingo 2 3547.000 3245.00 7094 854.1850
Badge 2 0.000 0.00 0 0.0000
Rent 2 0.000 0.00 0 0.0000
Less Cost of Sales 2 -1541.500 -1623.25 -3083 231.2239