SUMMARY STATEMENT OF SURPLUSOR DEFICIT AND OTHER COMPREHENSIVE INCOME Total Revenue for the year increased by 11.5% to $341 million. The service sectors where the majority of this growth occurred were: • Disability Services ($14.5m) – combination of organic growth and CPI increases. • Family Support & Out of Home Care ($11.2m) – combination of increased client numbers and CPI increases. •  upport to Refugees and Asylum Seekers ($6.9m) provided services to increased numbers of clients including establishing services in NSW S ($2.5m) and Tasmania ($2.7m) during the year. Revenue continues to be predominantly sourced from State and Federal Government bodies with 97.8% being received through government funders and their agencies. The perceived risk is mitigated through the funding being sourced through a range of agencies spanning all states and territories as well as federal agencies. A large part of the revenue stream is underpinned by contracts spanning multiple years with contracts won through competitive tendering processes or via panels Life Without Barriers has pre qualified for. Board priority 5 is the growth and diversification of income streams. This includes securing income streams outside of the traditional government funding models. The implementation of this Board priority will further mitigate the perceived risk of reliance on government based funding. The Surplus for the year was $7.8m, an increase of $1.7m over the previous year. The 2014 result incorporated the following key changes to 2013: • n 2013 some major funding agreements moved to an output based model while others allowed grouping and offsetting within particular I groups of clients or services. Acquittal guidelines had not been released by these funders at the time of releasing the 2013 financial results so a conservative approach to revenue recognition was adopted for these contracts. During 2014 negotiations were finalised and financial acquittals signed off by the funding agencies which provided certainty on the financial outcomes for these contracts. This resulted in adjustments totalling $2.2m being recognised in 2014. •  xpenditure of $1.3m ($0.5m 2013) related to the implementation of the new Aurion payroll system. This represents the expenditure not able E to be capitalised under Australian Accounting Standards. •  he surplus includes a net amount of $1.0m relating to the purchase and depreciation of grant funded assets ($0.5m 2013). Accounting T standards require recognition of the full amount of income relating to the grant funded asset in the year received but does not allow the cost of the purchase to be recognised in that same year. Instead the grant funded assets are depreciated over their estimated useful life.