BUSINESS & FINANCE REPORT

FROM THE DIRECTOR OF BUSINESS & BOARD SECRETARY MR KENT PETERS

2022 has been a year where we have seen the continuing impacts of the Covid-19 virus but also the opportunity to see many aspects of the depth, breadth and richness of School life returning to what will be the new normal following the Covid-19 pandemic. However, in the midst of all that these challenges have posed, Canberra Grammar School has continued to embrace the challenges and in the midst of it all has demonstrated the strength of its community in achieving significant milestones during the year. 2022 has also seen a not insignificant rise in not only interest rates but also increases in many other key costs that impact the day-to-day operations of the School.

The School continues to see its overall enrolments consolidate with a total student population of some 2,153 students across the Northside and Red Hill Campuses. The boarding community has been hit very hard with the impacts of Covid-19 and the uncertainties that being in boarding has created for many of our boarding families, but is well positioned to bounce back in 2023.

The reportable income including Government recurrent per capita funding for the year ended 31st December 2022 was $66.9 million excluding revaluations of the School’s investment portfolio. Approximately 71% of this income was contributed by parents with Federal and State Government Recurrent Grants providing around 10% and the balance of 19% from investments, donations and other sources.

The School has continued to consolidate its sound financial performance. The School continues to prioritise significant reinvestment in both teaching, learning initiatives and will in 2023 continue its focus on the significant capital infrastructure projects with a new classroom and administration development in the Primary School. The School achieved a solid performance in 2022 and continues to recognise the importance of effectively managing the increasing pressure on School revenue and expenditure, particularly managing the potential impact from the implementation of the Capacity to Contribute funding platform. The School has been able to maintain fee increases at levels that enable the School to meet the combined challenge of providing the resources necessary to deliver exceptional educational outcomes but remaining mindful of the pressures being faced by our parent community.

2022 has been a busy year with the main focus being on the major project being the Snow Concert Hall, Music Centre and Library Development. This project was completed in August 2022 and considering the challenges that that arose in the midst of the Covid-19 pandemic it has been a resounding success. This project has been significantly supported by the Canberra Grammar School Foundation Building Fund and the significant donation made by Terry Snow. The Snow Concert Hall held a magnificent opening concert in late August 2022 and it is already proving that it is a truly world class facility that will not only serve the School well but also the wider community for decades to come. The facility will be fully operational for the commencement of the 2023 School Year and we are already seeing the benefits of the investment made in the geothermal heating and cooling of the complex.

The School continues with its program of ongoing refurbishment and maintenance of its existing facilities. During the 2022 Summer holiday period we have been able to add a further 8 rooms to our girls boarding facilities which will increase our capacity to a total of 58 beds. The Swimming pool refurbishments have continued with the pools protective coating being fully removed and replaced. Chapel and P&F Ovals have been fully restored following the significant impacts incurred during the construction of the Snow Concert Hall project and the ovals have been restored to being some of the finest ovals in Canberra. The total capital expenditure exceeded $19.2 million in 2022, in comparison to $13.2 million in 2021.

The maintaining of diligent financial management will continue to be a priority in coming years as the School continues in the delivery of the Campus Development Plan projects, whilst continuing to maintain a primary focus on the core enterprise of teaching and learning to ensure a strong and sustainable School, which is fit to fully embrace the opportunities and also any challenges that may lie ahead. The School is also focused on the challenges arising from the increasing inflation rates and also the continuing rise in interest rates and the potential impact on the timing of future capital projects.

The School Board is pleased with the 2022 financial results and will continue to focus on improving the School’s facilities and in doing so ensuring that the School remains committed to equipping its students to be ready for the world.