Corella Care Ltd · Fictional case study

Corella Care Financial Workbook

Readable browser version of the Corella Care financial workbook. Each worksheet is labelled below; the original workbook is available alongside this page.

Cover

Corella Care Ltd
Financial Report Pack, FY25 Actual Results and FY26 Budget
Prepared for: Board of Directors
Prepared by: Anthony Braithwaite, Chief Financial Officer
Financial year: 1 July to 30 June
Currency: Australian Dollars (AUD)
Contents
1. FY25 Profit & Loss, Actual vs Budget
2. Balance Sheet, FY24 vs FY25
3. Cash Flow Statement, FY25
4. FY26 Budget
5. Variance Notes
Note: figures in blue are source data from the general ledger and FY26 budget model. Figures in black are calculated by formula and will update automatically if source data changes.

FY25 P&L

Profit & Loss Statement
Corella Care Ltd, Year Ended 30 June 2025, Actual vs Budget
Line ItemBudgetActualVariance ($)Variance (%)
Revenue
Government subsidies$29,500,000$30,650,000$1,150,0003.9%
Resident and client fees$9,800,000$9,400,000($400,000)(4.1%)
Donations and bequests$650,000$910,000$260,00040.0%
Grants$1,200,000$1,050,000($150,000)(12.5%)
Other income$700,000$640,000($60,000)(8.6%)
Total Revenue$41,850,000$42,650,000$800,0001.9%
Expenses
Employee expenses (including agency staff)$27,900,000$29,200,000$1,300,0004.7%
Resident care and clinical supplies$4,100,000$4,350,000$250,0006.1%
Property and maintenance$2,800,000$2,650,000($150,000)(5.4%)
Food and hospitality$2,200,000$2,300,000$100,0004.5%
Administration and corporate overheads$2,450,000$2,500,000$50,0002.0%
Depreciation$1,900,000$1,900,000--
Total Expenses$41,350,000$42,900,000$1,550,0003.7%
Surplus / (Deficit)$500,000($250,000)($750,000)(150.0%)
Note: the deficit was driven mainly by agency staffing costs incurred to cover unfilled direct care positions. See Variance Notes tab for detail.

Balance Sheet

Balance Sheet
Corella Care Ltd, as at 30 June 2025, Compared to 30 June 2024
Line ItemFY24FY25Change ($)Change (%)
Assets
Cash at bank (unrestricted, operating)$6,200,000$4,100,000($2,100,000)(33.9%)
Accounts receivable$1,100,000$1,450,000$350,00031.8%
RAD-backed investments (restricted)$18,500,000$19,800,000$1,300,0007.0%
Property, plant and equipment$38,000,000$37,200,000($800,000)(2.1%)
Total Assets$63,800,000$62,550,000($1,250,000)(2.0%)
Liabilities
Refundable Accommodation Deposits (RAD)$18,500,000$19,800,000$1,300,0007.0%
Other liabilities (payables, employee entitlements)$5,700,000$6,200,000$500,0008.8%
Total Liabilities$24,200,000$26,000,000$1,800,0007.4%
Net Assets$39,600,000$36,550,000($3,050,000)(7.7%)
Note: RAD-backed investments are restricted and matched against the RAD liability. They cannot be used to fund operations. Unrestricted operating cash fell to $4.1 million, under five weeks of FY25 operating expenses.

Cash Flow

Cash Flow Statement
Corella Care Ltd, Year Ended 30 June 2025
ActivityFY25 ($)
Net cash from operating activities$1,450,000
Net cash from investing activities (Corella Heights refurbishment)($3,600,000)
Net cash from financing activities (net RAD movements)$50,000
Net Movement in Cash($2,100,000)
Note: the net movement in cash reconciles to the change in unrestricted cash at bank shown on the Balance Sheet tab (a decrease of $2.1 million).

FY26 Budget

FY26 Budget
Corella Care Ltd, Year Ending 30 June 2026, Approved by the Board
Line ItemFY25 ActualFY26 Budget
Revenue
Government subsidies$30,650,000$32,200,000
Resident and client fees$9,400,000$9,900,000
Donations and bequests$910,000$900,000
Grants$1,050,000$1,150,000
Other income$640,000$750,000
Total Revenue$42,650,000$44,900,000
Expenses
Employee expenses (including agency staff)$29,200,000$29,800,000
Resident care and clinical supplies$4,350,000$4,500,000
Property and maintenance$2,650,000$2,800,000
Food and hospitality$2,300,000$2,400,000
Administration and corporate overheads$2,500,000$2,600,000
Depreciation$1,900,000$1,900,000
Total Expenses$42,900,000$44,000,000
Budgeted Surplus / (Deficit)($250,000)$900,000

Variance Notes

Variance Notes
Management commentary on material FY25 variances, prepared for the Finance, Audit & Risk Committee
Line ItemVarianceManagement Commentary
Employee expenses$1.3M over budgetDriven by agency and contract nursing staff engaged to cover unfilled direct care vacancies, particularly at Corella Heights. A workforce plan to reduce agency reliance is included in the FY26 Strategic Plan priorities.
Government subsidies$1.15M over budgetReflects a higher than budgeted acuity mix among residents, which increases the per-resident subsidy rate under Commonwealth funding arrangements.
Resident and client fees$0.4M under budgetSlightly lower than budgeted occupancy in the first half of FY25 at Corella Gardens, since recovered.
Donations and bequests$0.26M over budgetOne bequest of $180,000 received in April 2025 that was not anticipated in the original budget.
Cash at bank$2.1M decrease over the yearReflects the operating deficit combined with cash used for the Corella Heights refurbishment. The Finance, Audit & Risk Committee is monitoring the cash position monthly.