PSO’s annual 2022 report shared at its October annual meeting said while the overall financial result showed a net surplus of $600,000, this included net revaluation gains from investment properties.
"The underlying operating result is a significant net deficit of $1.6 million," the report said.
The organisation’s Youth Grow Garden Centre made its final sale earlier this month as its retail side closed after a long time running at a loss which could no longer be compensated for by internal funding from PSO’s Enliven rest-homes.
An inability to match the pay rates of Te Whatu Ora Health New Zealand was cited last month as a factor behind the organisation’s closure of Ross Home’s 24-bed Lindsay unit due to lack of staff.
Chief executive Joanne O’Neill said the organisation planed to liquidate some of its non-core assets to help cover its operational costs.
"The sale of these assets will not affect delivery of PSO services or lead to any reduction in services," she said.
PSO declined to comment on what assets would be sold for commercial reasons.
The organisation plans to build and sell retirement village properties as a revenue source in the longer term.
"Significant planning" had been carried out and PSO was working hard to achieve the long-term aim of financial sustainability, she said.
"We accept [this] as essential due to Government underfunding of the social and aged-care sectors, which continues to impact us as a charitable provider."
The closure of the Lindsay unit was triggered by a shortage of appropriately trained nursing staff, rather than PSO’s financial situation, she said.
