Chapter 2Annual reports of Commonwealth entities and companies
2.1The committee has selected the 2023–24 annual reports of the following entities for closer examination:
the Australian Sports Foundation (ASF).
Australian Sports Foundation
2.2The ASF’s role is codified in the Australian Sports Commission Act 1989 to raise funds for the development of Australian sport. Since the 1980s, the ASF has distributed close to $700 million to Australian sport clubs, sporting organisations and athletes to ‘develop an inclusive and active sporting nation, and to strengthen local communities’.
2.3The functions of the ASF are also specified in its strategic plan, which encompasses the following key objectives:
implementing new technologies to make it easier to donate when making other transactions, thus reducing the time and effort required of volunteers to run fundraising campaigns and increasing efficiencies;
enhancing the financial sustainability of key sports by partnering with them to increase fundraising effectiveness;
creating a thriving community sport sector through online fundraising and capability building, using new technologies, tools and resources to facilitate increased donations in support of community sports clubs and athletes;
connecting sport with philanthropy to access new funding for community sports projects or grant programs;
partnering with Governments to grow philanthropy’s role in sports funding; and
growing sport as a philanthropic cause by making Amateur Sport a charitable purpose, and through effective advocacy and impact reporting.
Director’s report
2.4According to the ASF:
The Directors present their report together with the consolidated financial statements of the Australian Sports Foundation Limited (“ASF”) and controlled entities (the “consolidated entities” or “Group”) for the year ended 30 June 2024 and the auditor’s report thereon …
2.5The Directors reported on the state of affairs, factors influencing performance, risks and opportunities for sporting outcomes in Australia, particularly in an era of uncertain economic, environmental and geopolitical conditions.
2.6The Board and Management of the ASF noted that the uncertain economic and geopolitical conditions present both opportunities and risks in the years ahead, including:
a greater need for fundraising, and the support offered by the ASF, among community sports clubs;
a greater need to support elite athletes and those on pathways and to encourage funding into sports in the lead up to Australia’s cluster of world sporting events including the Olympics and Paralympics in Brisbane 2032 and ensuring that a participation halo occurs in communities;
a greater awareness among the philanthropic and broader community of the important role of community sport in promoting physical and mental health, and helping our communities recover from the challenges of the pandemic;
a greater need for revenue diversification among national and elite-level sports, given pressures on traditional income streams such as sponsorship etc; and
a greater need for communities to replace lost or damaged equipment and infrastructure caused by natural disasters.
2.7The Directors, however, stated that philanthropic giving is discretionary spending and previous recessions and economic downturns have led to a marked decline in philanthropic giving. The ASF elaborated by stating that:
consequently, whilst the ASF is targeting ambitious growth in the period to 2032, the continuing economic volatility and the potential for a general decline in philanthropic giving represent significant challenges.
Performance reporting
2.8As noted above, the ASF’s purpose is as follows: ‘to raise money for the development sport in Australia’. Its mission and associated performance measures include:
driving a substantial growth in the value and volume of philanthropic contributions to sport;
expanding the number of community sports clubs and aspiring and representative athletes receiving our support; and
improving the financial sustainability of Australian sporting organisations and reducing their reliance on Government funding.
2.9Following the establishment of the Charitable Fund, the ASF noted that investments have been made in resources and infrastructure to facilitate growth in philanthropic contributions to Australian sport. As such, during the four years to 2028, the ASF referenced five distinct key performance indicators (KPIs) to measure its performance objectives, and sets out various growth targets:
Table 2.1Performance Objectives
| | | | | |
KPI | Achieve >$125m p/a in fundraising for sport by 2028 | Achieve >16 000 ASF members by 2028 | Achieve a community club activation rate of 30 per cent or greater by 2028 | Generate $5m in new philanthropic funding into sport via ASF grants and direct funding agreements | Generate annual operating income of >$9.6m by 2028, sufficient to cover ongoing operating costs |
FY25 | $108m | 14 000 | 22 per cent | $2m | $5.7m |
FY26 | $125m | 15 000 | 28 per cent | $3m | $6.7m |
FY27 | $165m | 16 000 | 30 per cent | $5m | $8.57m |
FY28 | $185m | 17 000 | 34 per cent | $10mX | $9.6mX |
Source: Australian Sports Foundation, Corporate Plan 2024–2028, p. 9.
2.10The committee notes that in its 2023–24 annual report, the ASF did not reference its KPIs and growth targets, thus referring the reader to its corporate plan to gain further clarity on performance objectives. The annual report also did not mention whether or not current performance objectives have been met in the current financial year and the years preceding.
2.11In its future annual reports, the committee encourages the ASF to shed light on its performance results in relation to the above-mentioned KPIs.
Financial reporting
2.12In 2023–24, the ASF’s net cost of services expenses totalled $102.8 million and generated own-sourced income amounting to $102.8 million, with both figures increasing from the previous reporting period. Much of the ASF’s own-source revenue stemmed from the following:
net donations – $93.6 million
retained donations – $4.9 million;
federal government initiatives – $3.8 million;
transaction fees – $234 683;
interest (deposits) – $164 841;
other grants – $45 225;
other revenue – $1 619; and
sponsorships – $0.
2.13The ASF reported a total comprehensive income deficit of $24 143, compared to $2.9 million in the previous year.
2.14The ASF’s total assets were valued at $28.8 million and liabilities at $22.9 million. Significant expenses comprised of the following payables and provisions:
grants payable – $21.5 million;
suppliers – $883 093;
employee provisions – $294 919;
lease liabilities – $94 998;
employee benefits payable - $72 002;
provision for donation refunds – $61 345; and
FBT payable – $0.
2.15The committee deems the ASF’s 2023–24 annual report to be apparently satisfactory.
Apparently satisfactory
2.16As noted in Chapter 1, the committee has assessed all reports of both the Health and Aged Care and Social Services portfolios received between 1 November 2024 and 30 April 2025 as apparently satisfactory.
Senator Dorinda Cox
Chair