Chairman's Report for the Year Ending 30th June, 2009
Like many other investors, Wyatt again experienced a devaluation of its assets as a result of the economic downturn which has been recorded partly as an impairment charge against operating result and partly as a reduction in the revaluation reserve. Fortunately our conservative investment practices and close attention to the portfolio mitigated the impact of the write down, and in recent months, the value of the holdings has regained some of the lost ground.
The financial result for the year shows that there was a surplus before grants of $853,000 which was arrived at after writing off an impairment loss on investments of $2,503,000. Grants totalling $2,255,000 (an increase of 26%) were paid, which resulted in the balance of accumulated funds reducing this year. The Board considered this to be sound and proper and consistent with our strategic direction as the global economic crisis shows signs of correction while at the same time our traditional grant recipients continue to be in need of our help.
Investing the proceeds of the sale of the Institution's last remaining commercial property into financial investments has been an extended process as a result of our approach to the uncertain equities market. The process followed has been considered and thorough and the desired asset allocation between various investment types will be achieved within months.
The $2,255,000 paid in grants to South Australians consisted of 45% as direct grants and scholarships and 55% through our partners - housing, educational and welfare organisations who have helped us to distribute our grants to eligible people.
To successfully engage in philanthropy, we must have passion and purpose. Both are reflected in the enthusiasm and commitment of Wyatt Governors and staff to make a real difference in our priority areas of significant need.
Wyatt has learnt from its extensive grant making experience that.
Affordable housing is a basic necessity for individuals and families.
How can families or individuals be safe and healthy, and engage successfully in education when living in over priced and insecure rental housing?
Lack of education for individuals is associated with greater social disadvantage and exclusion.
Successful participation in formal schooling is critical, and engagement in tertiary education - TAFE, University, apprenticeship or other, contributes significantly to future employment and quality of life.
Children whose early experience of family care and stimulation has been limited are less likely to succeed in education.
Families on low incomes are assisted by access to assistance and training in financial management skills
Surviving on fixed low incomes is difficult and from time to time crises occur which require extra skill and understanding of financial management.
The Annual Report outlines what we have supported in the areas of affordable housing, rental subsidies, housing packages, scholarships for students at secondary and tertiary levels of education, including school retention and school re entry programs, and financial counselling.
My thanks are extended to fellow Wyatt Governors and Wyatt staff who have worked successfully toward realising our vision 'Offering Opportunities'. My thanks also to our partners who have shared this vision.