Staff wages and “other” expenses make up bulk of Dolphin Discovery Centre expenditure

Just 71 days before the Dolphin Discovery Centre went into administration a statement from the board said it would be able to pay its debts. But the South Western Times can reveal concerns about the financial state of the tourism hot-spot have been held as far back at 2018. In a review of the centre’s annual and financial reports, the Times found expenditure on staff pay consistently made up about 66 per cent of total expenditure over the past seven years. It also showed expenditure classified as “other” — a category not seen before the most recent financial statement — shot to just less than $190,000 in 2022-2023. In the most recent year, Bunbury Dolphin Discovery made a gross profit of $2,527,321 and had a total expenditure of $2,567,202, giving the organisation a net deficit of nearly $40,000 The figure is a middle tier result for the centre which had recorded net surpluses and losses hundreds of thousands either side of it in previous years. Salary, wage and superannuation expenditure was by far the biggest cost at more than $1.7 million, followed by “other”. According to its annual reporting, the not-for-profit group employed four full-time staff, five part-time staff and 51 casual staff to make up 20.59 full-time equivalent staff in the past financial year. This culminated in spending more than $1.7 million on staff salaries. There were also 145 estimated volunteers, the lowest number at the centre since 2014 — aside from in 2020 due to COVID — and in 2018 when the facility was under redevelopment. The major money earner for the venue was food and beverage sales, making $1.3 million in income. This was followed by tour income at $598,058 and admissions income at $527,818. Concerns have been held around the financial security of the Dolphin Discovery Centre since at least 2018. In an email seen by the South Western Times a former Bunbury city councillor outlined those concerns and said “warning bells have already begun ringing in the community” back in 2018. In December, Dolphin Discovery Centre chair Rodney Kroon and treasurer Shane Kaurin signed off on a board statement in the annual report which said there were “reasonable grounds” to believe the group could pay the debts “as and when they become due and payable”. Regional Development Minister and Bunbury MLA Don Punch said the administration announcement was “very disappointing” given the community’s long-held love for the facility. “During my time as local member, and my many years leading the South West Development Commission, I have had a long association with the Dolphin Discovery Centre and know how important it is to our community,” he said. “I am being kept regularly briefed on the situation, with a view to ensuring the future sustainability of the centre. “I am particularly keen to make sure the centre remains a part of our community, while keeping it affordable for locals to enjoy. “There needs to be no doubt that as Regional Development Minister and local member, front of mind is keeping the much-loved Dolphin Discovery Centre as an important part of Bunbury into the future.” The Dolphin Discovery Centre will remain operating under the administration of RSM Australia for the time being. RSM Australia partner Jerome Mohen said his firm was told COVID, increased supply costs and staffing challenges meant the short-term future of the DDC was uncertain.