Minda plunges to loss of almost $5 million after ‘extremely challenging’ year, chairwoman vows robust review

Beleaguered disability services provider Minda’s board is vowing a “robust review” after the organisation recorded a significant loss.

Beleaguered disability services provider Minda’s board is vowing a “robust review” of funding after plunging to a loss of almost $5m, imperilling the delivery of improved client services.

In a year labelled “extremely challenging” by chairwoman Joanne Denley, Minda’s operating expenses soared almost nine per cent to $178.8m.

The news comes days after Minda’s two most senior executives suddenly left the organisation – sparking the resignation of several other staff and reports of an organisation in disarray.

Minda’s 2020/21 annual report suggests the loss might impact on services, declaring it “imperative that Minda generates operating surpluses to facilitate the delivery of improved outcomes for clients”.

The annual report shows Minda had an operating loss from continuing operations of $1.8m, after a $2.6m surplus the previous year, and a total loss of $4.9m, after an $886,000 loss the previous year.

“It is a priority of the board to conduct a robust review of the various funding regimes in place that continue to influence our ongoing operational performance,” the annual report’s financial overview says.

Minda chairwoman Joanne Denley. Picture: Supplied/TAFE SA

Partial blame for the loss is sheeted home to NDIS changes, with the report declaring “it is critical to understand the true cost” for clients and advocacy if NDIS funding “is not aligned with their true support requirements”.

“We must also review our own operating costs through a commercial lens and do all that we can to align them as close as possible with the NDIS funding model to remain relevant in an increasingly competitive marketplace,” the report says.

Opposition human services spokeswoman Nat Cook agreed the transition to the NDIS had been “challenging” for Minda, but said the organisation’s issues “have not happened overnight”.

“I have been calling on the government for three years to ensure that all people under the care and governance of Minda are safe,” she said.

Sources said the losses came despite the sale of “millions and millions” of dollars in real estate at Craigburn Farm, where land previously owned by Minda has been subdivided, and at luxury retirement village Brighton Dunes.

The annual report notes a “substantial improvement in cashflow provided by investing activities”, which was driven by accelerated land sales at Blackwood Park (Craigburn Farm).

While the financials do not show a breakdown, it is understood significant losses have come from SA Group Enterprises, a disability employment organisation that was acquired by Minda in 2014.

Minda’s cash also was depleted to $2.9m, down from $6.2m the previous financial year, the report shows, eroding its total current assets to $18.5m, down from $27.8m.

However, the financial overview insists Minda’s balance sheet remains strong, with net assets of $103m.

The total loss was softened by a write-up of asset values, including land, of $3.3m, the annual report suggests.

In her annual report message, Ms Denley says Minda has refocused “on core aspects of our service delivery” which has enhanced client services and helped families “navigate the changes and challenges of the NDIS, including advocating for increased funding for our clients”.

“While it has been an extremely challenging year for Minda, our focus has been on supporting our clients,” she says.

The disability provider has been plagued by controversy, with allegations emerging of chronic staff shortages and squalid living conditions.

It comes after the departure of several senior staff members in recent months, including the chief executive officer and chief operations officer.