OzHelp has provided mental health services for the past 23 years. Photo: Thomas Lucraft.
OzHelp Foundation, a Canberra-based national suicide prevention charity, has been placed in voluntary administration after 23 years in operation.
On Wednesday (31 July), the OzHelp board appointed Jonathon Colbran and Adam Cormack of accounting consultancy RSM Australia Partners joint and several voluntary administrators of the foundation.
RSM Australia says the not-for-profit owes creditors around $1 million.
Foundation board chair Leanne Wells blamed ‘mission creep’ (gradually taking on responsibilities beyond its original scope), COVID-19, a costly service delivery model and increased competition for government support as reasons for their deteriorating financial position.
RSM Australia partner Jonathon Colbran said the OzHelp board advised the administrators that it had implemented a number of measures in recent months to maintain its services, but ultimately, it did not have sufficient funds to continue operating.
“It’s a very challenging economic environment, and unfortunately, we are seeing more entities, including not-for-profits, seeking expert assistance to help them navigate both legacy and short-term financial challenges,” Mr Colbran said.
RSM Australia Director of Restructuring and Recovery in Canberra Adam Cormack said an early review of OzHelp’s financial statements and records, which were yet to be reconciled, showed the majority of the $1 million owed was to Commonwealth and ACT Government departments in relation to grants for which paperwork hadn’t yet been completed.
“We are also undertaking an assessment of the foundation’s assets so that we can formulate a strategy to realise the benefit of these for creditors,” Mr Cormack said.
“At this early stage, all figures are preliminary and subject to change as we undertake a more detailed review of the foundation’s books and records and engage with creditors,” he said.
RSM Australia’s Adam Cormack is reviewing OzHelp’s books. Photo: Liv Cameron.
Caroline Walsh, the OzHelp CEO who had been in her role for less than a year, said the foundation had spent months exploring options to increase revenue and reduce costs.
“These included scaling back services and offering redundancy packages to our deeply dedicated, committed and caring staff (who numbered 28 in 2022-23), which was incredibly tough – they were the beating heart of our foundation. However, it wasn’t enough to continue our services.
“On Friday, 26 July, we reluctantly released our nine remaining staff, paying out their wages, superannuation and redundancy entitlements in full, and closed the foundation’s counselling and wellbeing services and programs.”
OzHelp was established in 2001 after a young building apprentice from Canberra took his own life. That same year, three others who were connected to the ACT building and construction industry died by suicide in a three-month period.
Community members collaborated with the Construction, Forestry and Maritime Employees Union (CFMEU), peak body Master Builders ACT and the ACT Government to form OzHelp, which began providing mental health and wellbeing services to construction, transport and logistics workers.
OzHelp says 280,000 individuals from across the country connected with their services, information tools and awareness campaigns in the 2022-23 financial year.
RSM Australia will write to creditors this week to advise them of their appointment and outline the rights of creditors and the steps involved in voluntary administration.
Mr Cormack said the first meeting of creditors would be held online and in-person in Canberra on 12 August 2024.
Anyone in need of mental health or wellbeing support can contact Lifeline’s confidential 24-hour crisis support and suicide prevention services on 13 11 14.
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