‘That’s an understatement’: Morale at rock bottom at genU as members seek more information

The ongoing troubles at disability service provider genU have created significant angst among its membership and could result in a vote of no confidence in the board.

Activ Foundation boss Michael Heath and genU chief executive Clare Amies following the Geelong-based organisation’s latest acquisition. Picture: Supplied.

The financial woes of under-fire Geelong disability service provider genU look to be worsening as the organisation prepares to record a loss of around $15m for the 2023/24 financial year.

The ongoing troubles, which include the recent departure of two of its most senior executives and a petition to oust chief executive Clare Amies, have created significant angst among its membership and employees.

Board chair Ingrid Williams and a handful of directors fronted a hastily convened July 5 meeting of members in a bid to quell growing concern.

Multiple sources said the board initially tried to “gloss over” financial issues, but when pressed it conceded the 2023/24 loss would far surpass the $9.7m deficit recorded in the previous period.

One source familiar with the matter said the Department of Families, Fairness and Housing was keeping an increasingly close eye on genU’s finances and that Ms Amies held an urgent meeting with the organisation’s senior leadership team in mid-April in a last-ditch attempt to minimise the loss.

Reasons for the loss include poor financial management, errors in initial budget setting, and delayed action to redress any variances, the source said.

One member in attendance at the July 5 meeting, who wished to remain anonymous so they could speak freely, said a vote of no confidence in the board could eventuate if things continued on their current trajectory.

“That could possibly happen, absolutely … it has to be carefully thought out and planned,” they said.

“There’s a core of members who are not happy.

“Everyone has their own views, but the vision of the organisation is being trashed, (and) for some it’s the instability, for others it’s the very unhappy staff.

“To say morale is low is an understatement.”

Under genU’s constitution, members can call for a general meeting where a special resolution – such as a spill of the board – is proposed.

A minimum of 75 per cent of members must pass the resolution for it to pass.

It is understood genU has around 140 members, many of whom are relatives of clients.

The membership has increased significantly in recent years as a result of genU’s acquisitions, the most recent of which was of Western Australian organisation Activ Foundation.

The Activ acquisition has increased genU’s workforce to more than 5500 staff nationally, including approximately 2000 in the Geelong region.

One member said staff had become bogged down with paperwork and number crunching, which in turn had impacted the quality of care.

“It’s a definite concern,” they said.

“The mood at the meeting was far from ideal and my worry is that it’s only going to get worse, and what that means for clients.”

A genU spokesman declined to answer questions relating to the organisation’s financial predicament and the vacant executive roles.

It has not explained Travis Heeney’s sudden departure as chief operating officer late last month.

Chief corporate officer and chief financial officer Travis Neal also left in recent weeks.

Those roles remain vacant.

Ms Amies, a former WorkSafe boss, was appointed to the top job at genU in 2020.

In an October 2023 interview, she said she wanted to significantly expand genU’s footprint nationally.

The 2022/23 loss was put down to rising costs, a fall in government funding, and issues in finding suitable staff.

Originally published as ‘That’s an understatement’: Morale at rock bottom at genU as members seek more information