Mawarra faces uncertain future
Board calls in administrators
Mawarra Centre in Warragul has gone into voluntary administration.
Worrells Solvency and Forensic Accountants was appointed last Wednesday after Mawarra board members acknowledged its impending insolvency.
Paul Burness and Ivan Glavas of Worrells will now work with creditors to determine the best outcome for the incorporated association.
The process is expected to take just over a month, with a meeting scheduled for June 20 when creditors will determine the future of the organisation.
The association is continuing to operate as normal, with all existing staff maintained and services for clients continuing.
Mawarra has operated in West Gippsland for 60 years and was registered as an incorporated association in 1991. It provides National Disability Insurance Scheme (NDIS) services and disability support services to more than 70 clients.
It also operates three Australian Disability Enterprises including Jigsaw Industries, Country Kitchen Catering and Waratah Grounds Maintenance. These enterprises provide supported employment opportunities for more than 28 employees.
Its support services function is funded by the Human Services Department.
Worrells partner Paul Burness said the board regretted the need to appoint voluntary administrators to Mawarra, however the decision
followed a prudent concern for the association’s likely and impending insolvent status.
“This has been a difficult and sombre decision for the board to reach. “Their strong relationships with the surrounding communities and the impact the appointment will have on them, weighs heavily on their hearts.
“The board remain committed to working with us, as administrators, to get the best outcome for the association and the community.
“Their involvement and passion for the association is invaluable and undoubtedly will be critical at each juncture in this process.”
Worrells confirmed the board had taken early action rather than continuing to trade.
Mr Burness said the aim of the voluntary administration would be to, if possible with creditor approval, return Mawarra to a healthy trading prospect.
Administrators will be at Mawarra on May 27 to meet with stakeholders and a creditors meeting.
“Given the board’s proactive actions to assess the association’s business performance and meet its requirement not to trade while insolvent, we are in a good position to move forward to find a like-minded organisation to get the clients’ needs met, and to transition any assets,” Mr Burness said.
In January, Mawarra announced it was selling its Opportunity Shop building in Palmerston St, Warragul.
At the time chief executive officer Gordon Jamieson said the introduction of the NDIS had changed the way organisations such as Mawarra were funded.
Mr Jamieson said the sale of the building would give Mawarra a cash injection, allowing it to reinvest in services.
Worrells said the administrators appreciated the impact the process will have on individuals with disability needs, their families, the employees, the creditors, and the community at large.
Worrells will continue to proactively communicate with all affected parties at each step in the administration.
Any concerned parties and interested likeminded organisations can contact the Worrells Melbourne office on melbourne@worrells.net.au or (9613 5510).