Sunday 10 April 2011

The Royal Flying Doctor Service of Australia (RFDS)

“Using the latest in aviation, medical and communications technology, it delivers
extensive primary health care and 24-hour emergency service to those who live, work and
travel throughout Australia (Effectively covering 80% of Australia’s land mass). Today,
the RFDS has a fleet of 53 aircraft operating from 21 bases located across the nation and
provides medical assistance to over 270,000 people every year – that’s one every two
minutes.” (http://www.flyingdoctor.org.au/About-Us/)

The Royal Flying Doctor Service (RFDS) is a not-for-profit organisation. While heavily
supported by the Commonwealth, State and Territory Governments, the RFDS relies partly
on fundraising and donations from the community to purchase and medically-equip its
aircraft and to finance other major capital initiatives, such as the new Non-emergency Patient
Transfer Service set up in March of this year as a joint exercise by the South-Eastern Section
and VIC divisions of the RFDS. Which aims to provide a fast, secure option for patients
requiring non-urgent hospital transfers in Victoria and to assist Air Ambulance Victoria
by handling the non-urgent cases that may end up as emergency cases this also reduces the
pressure put on roads and traffic entering major city centres as well as assisting Hospitals
with the provision of safe and efficient services to patients. As an initiative only implemented
recently it shows the continuing development of the RFDS in Australia and the need for it
to adapt to the changing needs of customers. Therefore they score moderate to high on the
initiatives of the last 12 months.

Score of 8.5/10

The level of transparency is very high at the RFDS with compliance to all organisation
regulations specifically the access granted to financial reports, through the year end Annual
reports is a must of any organisation. And the reports provided are concise and well organised
although they do not display the annual salary of the Chief Executive Officer and Boards
of each division of the organisation. They do provide sufficient details to ensure that
those donating understand that a significant level of donation comes from the Australian
state and federal governments in order to provide this essential service and that there is
still a significant although small in comparison level of funds coming from donations by
ordinary citizens. The only are of concern for potential donators is the continued purchase of
residential buildings for use by the RFDS, this may be a concern and specifically a diversion
from the traditional business model. Otherwise they score moderately high although all
information has been provided to meet government regulations it still makes it a valid act of
transparency.

Score of 8.4/10

This also encapsulates some aspects of the final criteria for analysis the expenditure-to-actual
donation ratio which for the RFDS is: Example of how the cash flow is for the RFDS, bear in
mind that this only covers the Central Operations.
It is clear that the level of financing need to run the organisation is substantial
although they have made a 12 million dollar profit that will most likely be redistributed to
wages or the expansion of the organisation into new areas as well as the purchase of new
planes and equipment or keep in cash to maintain the budget for the following year. The
ratio from this works out to be 0.24% of expenditure is covered by donations. Although
the allocation of this cash could see none of it going into the tackling of costs and all going
straight into the bank but this would depend on many other factors such as the spread of
donations across the financial year and the urgency of funds. Also this end Net cash may be
redistributed to certain divisions based on their needs for new planes and etc. 2.6 million in
liabilities from employee benefits.

Score of 8/10 variable due to the nature of economic activity.

Total score is 24.9/30 which is Moderate/High and a very good score for any organisation

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