City of Nedlands claims Point Resolution childcare running at $260k loss despite budget figures & lawyers up

Parents of children who had used Point Resolution Childcare Centre have been left dumbfounded after the City of Nedlands told them the centre is running at a loss instead of making a profit. They are fighting the city’s decision to close the 40-year-old centre on October 9 after a site report found the building to be “non-compliant”. The report raised issues such as disorganised management, leadership service, and general uncleanliness, which included “excessive clutter,” dirty carpets, a musty odour, and not enough children’s furniture and resources. It estimated bringing the centre up to scratch would cost about $285,000. Parents say the report’s findings are “minor issues” that could be fixed using the money from the facility’s 2023-24 profits and a designated PRCC reserve account, which together would add up to almost $440,000. However, they claim they were told at a private meeting with city representatives on Monday that the childcare’s profit statement published in the city’s recently adopted annual budget was “completely wrong.” The city’s annual budget currently states the PRCC recorded a profit of almost $300,000 in 2023-24. But parents at the meeting said the city’s new director of corporate services, Amanda Alderson — who’s understood to have started her role just 11 days before Monday’s meeting — told them the centre was operating at a $260,000 loss. “The new director told us that we can’t rely on the published budget numbers and the accounting was completely wrong,” PRCC parent Rebecca Comac said. PRCC parent Julia Millar said it made her wonder who was in charge of the city and looking after the council. “It’s extremely alarming,” PRCC parent Kelly Morgan said. “As ratepayers, we trust the city to have credible accountants because these figures are what the councillors make their decisions based on. “I think the bigger issue is really how the council has ended up in this position.” The City of Nedlands confirmed to PerthNow the PRCC had not recorded a profit. “According to newly calculated figures, which include the corporate costs of operating a childcare centre, the city can confirm PRCC is running at a loss,” a spokesperson said. Cr Noel Youngman said the new figure came as a complete shock to him. “I’m left pretty confused and unsure of the financial position of the city,” he said. “It’s absolutely baffling how we can vote and approve a document that’s now changed.” Parents at the meeting were also alarmed at the presence of lawyer and former Town of Cottesloe mayor John Hammond, who reportedly told the parents about the risks associated with the city running a childcare but conceded the facility’s potential breaches could be remedied. “Mr Hammond conceded that there were no compliance notices recorded for PRCC on the Education and Care Regulatory Unit register and that all the issues he had seen in the documents provided were capable of being fixed,” Ms Millar said. Parents also claimed they felt “intimidated” and “threatened” during Monday’s meeting. “After weeks of no explanations and not allowing us to speak at council meetings, we hoped Monday’s meeting would finally give us a chance to speak and hear our concerns,” Ms Morgan said. “Instead, it was really intimating and awkward ... every time a parent spoke, city representatives would ask for our names and write them down.” Ms Comac said bringing a barrister in felt like an “intimidation tactic”. “The meeting was awful and left us all in shock at how dysfunctional the council is,” she said. In contrast to parents’ reaction, the city said the evening was a success. “An information evening was held which discussed the non-compliance issues and overall cost to the community of the PRCC, as well as an update on the expressions of interest,” a spokesperson said. “The meeting was successful and parents felt heard.”