2016-17 ANNUAL REPORT SUMMARY ANNUAL REPORT SUMMARY 2016-17 i
FROM THE CHAIRMAN Peter Milne, A.M In this year’s Annual Report I’m going to talk about our people right up front, so it’s clear and unambiguous that our people are at the heart of this organisation. Animal Health Australia’s (AHA) Members, the executive team, staff and the Board together constitute AHA and I have appreciated the goodwill of each of these groups throughout the year. Their dedication has ensured the occasional issues that arose were quickly resolved and helped AHA largely deliver on the commitments in the 2016-17 Annual Operating Plan (AOP). • During the year, AHA made a greater effort to induct and mentor new people in the Members group, to ensure they were quickly able to contribute at the Members’ Forums and other meetings, benefitting their organisations, as well as AHA. • In July, the Board worked with the executive management team and staff in the Reflections Workshop, which was all about the monitoring and evaluation (M&E) process that Kathleen Plowman has driven through the company. A couple of things happened that day; I became an M&E believer and I appreciated the value of the model in use. It reinforced to myself and other directors how committed our people are to deliver outcomes and value for our Members and for the livestock industry. • The Board acknowledged the performance and achievements of our CEO Kathleen Plowman in her first term in office, by offering to renew her CEO contract. We were thrilled by her acceptance of our offer and note the continuation of significant progress driven by Kathleen. • In November 2016, at the Annual General Meeting, three new directors were appointed to the AHA Board, and they have settled into their role well. 2 “We are about halfway through AHA’s Strategic Plan 2015-2020, and we are well positioned to ultimately deliver on the Strategic Plan.” • We are now almost half way through AHA’s fiveyear Strategic Plan 2015-2020 (the Plan) and my view is that we are well positioned to achieve the outcomes spelt out in the Plan for these priorities by 2020. • Progress with delivering future financial sustainability to AHA is going to be much more challenging and yet it is arguably the most important thing we can do to really differentiate AHA in 2020 from AHA in 2015. It’s the critical key to allowing AHA to become the organisation Members planned for it to be two and a half years ago. I’m not suggesting it will be easy, much of it is a stretch, but on recent performance I am very optimistic we will get there in 2020. My thanks to everyone for what has been achieved and I look forward to working with Members and the AHA team on the opportunities and challenges ahead. Note: The Annual Report Summary 2016-17 provides a brief recap of AHA’s activities in the 2016-17 financial year. The Annual Report 2016-17 will provide a more detailed evaluation of AHA’s performance and will be available early November.
CHAIRMAN KEYPOINTS 16-17 1 3 5 Refined induction process for new people and Members Kathleen Plowman accepting a renewal of her position as CEO Halfway through the Strategic Plan 2015-2020 and well positioned for successful delivery 2 4 6 Value and appreciation of the M&E model and how committed our people are to our Members Three new directors welcomed to the Board Financial sustainability is the most challenging yet significant delivery ANNUAL REPORT SUMMARY 2016-17 3
FROM THE CEO Kathleen Plowman This Annual Report marks the second year of the Plan’s journey. In 2016, as part of our M&E process, AHA evaluated its progress in implementing the Plan by commissioning an independent provider to undertake a regular, repeated survey of our Members. Designed to help us better understand how effective we are in performing our role, the survey measured the extent AHA has delivered value to our Members and what improvements could be made. Members believe that the concept of AHA is a worthy cause and is a genuine attempt to enlist the support of all stakeholders to protect and promote animal health; that AHA provides the bridge that facilitates trust and cooperation between industry and government on animal health matters. The Monitoring and Evaluation Report 2016-17 clearly shows that over the last two years we have achieved a number of the Plan’s key outcomes; of the 77 indicators, 41 (53%) are currently above their 2016-17 target, 27 (35%) are on target and 9 (12%) are not on target. Critically, this snapshot enables us to learn – to reflect and review - and adjust our focus and resources accordingly to improve our performance. This past year has been rewarding for AHA and our Members, with the delivery of a number of successes that positively impact on our biosecurity system. Key highlights include: • Farm Biosecurity Project (FBP) awarded the 2017 Australian Biosecurity Award • AHA celebrating its 20th birthday and 25 years of AUSVETPLAN with Members and industry champions alike • implementation of an M&E process and successful completion of a full 12 months of reporting • Members unanimously adopting changes for AHA’s constitution 4 ANNUAL REPORT SUMMARY 2016-17 “AHA provides the bridge that facilitates trust and cooperation between industry and government on animal health matters.” • performance of AHA meeting Members requirements, as reflected in Member survey and other feedback mechanisms • all 15 industry Members having a biosecurity manual in place • a new version of the Emergency Animal Disease Response Agreement (EADRA) published three months ahead of schedule. My sincere thanks to AHA’s Members for their commitment and efforts which are reflected in our successes. I also thank the Board, executive team and staff for their continued support and confidence; their professionalism, enthusiasm and dedication to AHA and our Members is unwavering. The company and staff are now well prepared to progress to the next stage of AHA’s strategic journey. Internal changes have led to the development of more efficient systems and processes, establishment of strong M&E practices, improved services, reframed communication and an enhanced company culture - all providing the foundation to achieve the remaining outcomes of the Plan. The coming year continues to be demanding and challenging but I am confident that together we can continue to build on our successes and learnings because together we can achieve more.
PROJECT SUMMARY 16-17 10 NEW PROJECTS IN 2016-17 5% PROJECT DELIVERABLES STILL IN PROGRESS $1.7m ADDITIONAL PROJECT REVENUE SOURCED PROJECT DELIVERABLES MET 2.5% INCREASE IN CORE PROJECT FUNDING FOR THE 2017-18 AOP 77% 3% PROJECTS STOPPED 17% PROJECTS NOT STARTED (Due to funds not obtained/projects reprioritised by funders) ANNUAL REPORT SUMMARY 2016-17 5
FINANCIAL OVERVIEW Tony Marks Executive Manager Corporate and Member Services AHA’s operating result was a surplus of $1.8 million in 2016-17 against a budgeted deficit ($0.26 million). This better-than-budget outcome has resulted equally from additional income of $1.0 million over budget and expenditure being $1.1 million less than budget. 1 Total income was $15.5 million, exceeding the AOP budget of $14.5 million by $1.0 million, predominantly as a result of several key factors. Firstly, the recognition of the carrying value of Livestock Biosecurity Network Pty Ltd (LBN) net assets of $0.45 million for the 51% shareholding adopted by AHA. Secondly, due to the recognition of $0.33 million income for long-completed projects previously held as unearned revenue. Thirdly, $0.22 million for a range of additional revenues for gate signs, training resources, AHA facilities hire and subscriptions for private vets access to training and accreditation. Levy income overall was in line with budget at $6.9 million. EADRA levies received for laying and meat chicken producers were slightly better than budget at $0.47 million. 2 Total expenditure was $13.7 million, being $1.1 million below budget. A number of projects have deferred deliverable milestones throughout the year, or did not commence, offset to a small degree by work commenced on new projects. AHA’s financial position has been strengthened by the operating result with the balance sheet showing equity at $16.4 million, up from $14.6 million in 2015-16. This total AHA equity balance is attributable to two distinct sources – ‘core’ operating surpluses since AHA’s inception of $5.7 million and industry levies that have exceeded 6 “AHA’s financial position has been strengthened by the operating result...” industry expenditure by $10.7 million. The individual levy reserves are maintained according to industry advice to AHA. AHA’s total assets of $25.1 million is comprised of $19.3 million in cash and investments. This balance is invested across a minimum of two ‘AAA’ rated banks and products with an appropriate spread of maturity dates to meet AHA’s planned and unplanned requirements. AHA’s liabilities of $3.5 million includes GST and accounts payable of $1.3 million and accruals of $2.2 million. The substantial amount of accrued expenses relates to the sample collection and laboratory costs for NAMP and TSEFAP where work undertaken for the disease cycles in the financial year isn’t finalised until several months after the end of the cycle. Provisions for annual and long service leave and salary related payables amounts to $0.37 million. Unearned revenue of $4.8 million represents the balance of cash received by AHA, primarily from government Members, for which project milestones have not yet been delivered, and therefore not yet recognised as revenue in the income statement. 3 Core subscriptions increased for the first time in six years in 2016-17, by 6% upon the recommendation of Members at the November 2015 Members Forum, at which it was highlighted the importance of properly resourcing AHA’s core programs. ANNUAL REPORT SUMMARY 2016-17
FINANCIAL OVERVIEW 16-17 1 $15.5m TOTAL INCOME $1.6m SERVICE LEVEL AGREEMENTS 2 $13.7m TOTAL EXPENDITURE $1.8m SURPLUS 3 $4.2m CORE SUBSCRIPTIONS ANNUAL REPORT SUMMARY 2016-17 7 $0.34m INTEREST INCOME $6.9m LEVY INCOME
PROJECTS OVERVIEW CORE 25 SPECIAL 40 OUTSIDE OF AOP Animal Health Alerts Smartphone App Prototype [DAWR] 10 8 Marine Pest Emergency Response Exercise [DAWR] Supporting NSW DPI with the Greater Sydney Peri Urban Biosecurity Program [NSW DPI] ANNUAL REPORT SUMMARY 2016-17 PROJECTS OUTSIDE 16-17 AOP Evaluation of Training of Veterinarians in EAD Surveillance [DAWR] Exercise Athena - International Animal Health Emergency Reserve exercise [DAWR] Biosecurity Emergency Response Training and Assessment Materials [Commonwealth, State and Territory Governments] Aquatic Industry Liaison Officer [DAWR] Livestock Biosecurity Network Management Services [LBN Pty Ltd] Exotic Disease Preparedness, Evidence of Absence [APL] Publication on Australia’s Tuberculosis Freedom [DAWR]
OUR PEOPLE Veterinarians & animal Leaders in training & facilitation health experts Emergency animal disease response & preparedness Communications, events & administration Project managers & financial controllers ANNUAL REPORT SUMMARY 2016-17 9
KEY ACHIEVEMENTS Contracted to provide services for a major FMD research project JUL 2016 Implementation of an M&E framework AUG 2016 Celebrated AUSVETPLAN’s 25th birthday Delivered liaison - livestock industry Distributed 800 function training to sheep and poultry industries MAR 2017 maggot sampling kits for SWF surveillance Awarded the 2017 Australian Biosecurity Award FEB 2017 Launched a revised APAV registration course Adoption of Constitutional changes and MLA endorsed as an Delivery of a national communications plan for JD APR 2017 10 Conducted AHA’s first aquatic EAD exercise MAY 2017 Associate Member JUN 2017 ANNUAL REPORT SUMMARY 2016-17
Livestock Biosecurity Network became a subsidiary of AHA Major review of the response policy brief for Hendra virus SEP 2016 Celebrated AHA’s 20th birthday New version of EADRA was published OCT 2016 DEC 2016 NOV 2016 Exercise Sheepcatcher II report delivered AHA CHALLENGES Delivery of ICT strategic review delayed due to resourcing and budget restrictions. Strengthening AHA as the ‘go to’ organisation for biosecurity information, policy and project development and as a networking hub that adds value to their members and AHA’s business and services. Limitations to the extent that AHA can influence Animal Health Committee to resolve key issues in regards to surveillance. Working with Members and stakeholders to ensure that biosecurity, traceability and welfare messaging is disseminated to producers. Managing the expectations of Members and improving their understanding of AHA’s role in surveillance activities. Technical development issues have set back progress on the Animal Health Alerts app. Contributed to Exercise Athena - an international EAD exercise ANNUAL REPORT SUMMARY 2016-17 11
LOOKING AHEAD All service streams will continue to work on fulfilling the goals and strategies as set out in the AHA Strategic Plan 2015-2020. Key 2017-2018 highlights include: 2 1 FMD Risk Management: communications about Phase 2 research projects will continue Review of AUSVETPLAN disease strategies and response policy briefs to update scientific and technical information and address inconsistencies in approach Improved surveillance, preparedness and return to trade for emergency animal disease incursions using FMD as a model 12 An exercise program for introduced marine pest emergencies Five industry liaison workshops, targeting the horse and dairy industries, including regional workshops Develop new channel for delivering training National Biosecurity Response Team will participate in Exercise Border Bridge, a NSW/QLD joint biosecurity simulation exercise ANNUAL REPORT SUMMARY 2016-17
3 4 Enhance implementation of the National Surveillance and Diagnostics Business Plan STRATEGIC PRIORITIES Enhance our digital presence and reach to producers and stakeholders Complete review of all industry biosecurity plans Establishment Enhance the National Animal Health Information System and Animal Health Surveillance Quarterly Work with governments on meeting their EADRA commitments for Clause 14 Complete Exercise Cowcatcher III, a tracing exercise ANNUAL REPORT SUMMARY 2016-17 of the Aquatic Deed with AHA custodianship, which will enable aquatic livestock industries to become Members Enhance collaboration with Members and implement Member survey adjustments Improved event facilities promotion to Members and external organisations 2 Enhance the EAD preparedness and response capability of AHA and its Members. 3 Strengthen biosecurity, surveillance and animal welfare to enhance animal health and support market access and trade. 4 Deliver Member value, organisational performance enhancement and sustainable resourcing. 1 Effectively manage and strengthen Australia’s EAD response arrangements through successful partnerships with Members. 13
MONITORING AND EVALUATION JOURNEY This year has seen the first full year of implementation of our M&E approach. Our four end of program outcomes, which align with our strategic priorities, have been closely monitored and evaluated to ensure we embrace a results-based culture, from which we can learn and grow.1 1 The full Monitoring and Evaluation Report 2016-17 report will provide a comprehensive evaluation of AHA’s performance and will be included in the Annual Report 2016-17, available in early November. FOUR END OF PROGRAM OUTCOMES PRODUCERS REDUCE DISEASE ENTRY ONTO FARMS 15 M&E INDICATORS* 47% 33% 20% 14 Above Target Not on target On target PROMPT NOTIFIABLE OUTBREAK DISEASE DETECTION & EFFECTIVE EAD RESPONSE IN PLACE 19 M&E INDICATORS 58% 37% 5% *AHA’s M&E indicators are used to measure the company’s progress towards outcomes in key business areas, which are directly aligned with AHA’s broader strategic priorities. ANNUAL REPORT SUMMARY 2016-17
Throughout 2016-17 we have tracked our progress, reflected on our successes and weaknesses, made modifications to our business practices and reported our findings, leading to full accountability to our Members. OVERALL OUTCOMES 77 M&E INDICATORS 53% 35% 12% NATIONAL SURVEILLANCE & ANIMAL HEALTH REPORTS ARE CONSIDERED ROBUST BY MEMBERS AND MARKETS NEW & ENHANCED PARTNERSHIPS & SUSTAINABLE PROGRAMS 10 M&E INDICATORS 40% 40% 20% ANNUAL REPORT SUMMARY 2016-17 33 M&E INDICATORS 58% 33% 9% 15
ABBREVIATIONS AHA Animal Health Australia AOP Annual Operating Plan APL Australian Pork Limited AUSVETPLAN Australian Veterinary Emergency Plan CEO Chief Executive Officer EAD Emergency Animal Disease EADRA Emergency Animal Disease Response Agreement FBP Farm Biosecurity Project FMD Foot and Mouth Disease ICT Information and Communications Technology JD Johne’s Disease LBN Livestock Biosecurity Network M&E Monitoring and Evaluation MLA Meat & Livestock Australia NAMP National Arbovirus Monitoring Program R&D Research and Development SWF Screw–Worm Fly TSEFAP 16 Transmissible Spongiform Encephalopathy Freedom Assurance Program ANNUAL REPORT SUMMARY 2016-17
WORKING TOGETHER FOR ANIMAL HEALTH We must continue to strengthen, enhance and evolve the national animal health system. © Australian Animal Health Council Ltd 2017 ACN 071 890 956 PO BOX 5116, Braddon ACT 2612 +61 2 6232 5522 aha@animalhealthaustralia.com.au animalhealthaustralia.com.au Design by Animal Health Australia Photos All images are from AHA unless credited otherwise ANNUAL REPORT SUMMARY 2016-17 17
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