Berry Street Web Docs Annual Report 2006

Financials berry street victoria annual report 2006 page 17 Berry Street Victoria Inc ABN 24 719 196 762 Discussion and Analysis of the Financial Statements Income Statement For the Year Ended 30 June 2006 Information on Berry Street Victoria Inc Concise Financial Report The discussion and analysis is provided to assist members in understanding the concise financial report. The concise financial report is an extract from the full financial report for the year ended 30 June 2006. The financial statements, specific disclosures and other information included in the concise financial report are derived from and are consistent with the full financial report of Berry Street Victoria Inc. The concise financial report cannot be expected to provide as detailed an understanding of the financial performance, financial position and financing and investing activities of Berry Street Victoria Inc as the full financial report. A copy of the full financial report and auditor’s report is available free of charge, upon request. Income Statement The profit for the year ended 30 June 2006 is $4.17 million, an increase of $1.97 million on the previous year. The major items contributing to this result were: Revenues: Government and other grants increased by $3.10 million The profit from sale of properties was $2.50 million Proceeds from bequests reduced by $0.95 million Expenses: Employee benefits expense increased by $1.36 million. The number of staff employed by Berry Street Victoria increased by 21 to 441. Depreciation expense increased by $0.35 million mainly due to an increase in the motor vehicle fleet and increased vehicle utilisation. Consultancy expenses increased by $0.51 million representing fees paid to other community service organisations who partnered Berry Street Victoria in a number of projects. Balance Sheet Net Assets increased by $4.17 million to $21.37 million. The major changes were as follows: An increase in Trade and Other Receivables in Current Assets of $5.41 million. This predominantly represents the balances due on settlement of two properties sold by Berry Street Victoria which will occur in December 2006. An increase in Other Financial Assets, in both Current and Non-Current Assets, of $2.16 million representing the investment of funds received through the sale of assets. In addition, there was a re-allocation of investments from short term bank bills to longer term equity investments of $2.79 million. A decrease in Property, Plant and Equipment of $2.07 million due to the net reduction of two properties totalling $2.7 million and an increase in motor vehicle assets of $0.7 million. Short and long term borrowings increased by $1.04 million representing an increase in finance lease liabilities used to fund part of the motor vehicle fleet. Statement of Changes in Equity Total equity increased by $4.17 million due to the profit for the year. $2.62 million was transferred from the Asset Revaluation Reserve to Retained Earnings, being the revaluation component on the properties sold in the year. This transfer did not impact on total equity. Cash Flow Statement There was a net decrease of $2.27 million in cash holdings during the year. The major changes in cash movements during the year included the following: Cash generated through operating activities contributed $3.85 million, due to: non-cash expenses, such as depreciation and increases in employee benefit provisions, totalling $1.8 million and investment income, bequests and other charitable fund raisings totalling $2.1 million. Expenditure on the purchase of property, plant and equipment, net of sale proceeds, cost $2.4 million. The equity investment portfolio increased by $4.8 million. Borrowings (Finance leases for motor vehicles) increased by $1.0 million. Notes 2006 $ 2005 $ 28,395,032 687,783 29,082,815 25,596,093 384,435 25,980,528 (21,365,847) (1,668,805) (96,985) (57,976) (1,458,013) (1,027,438) (185,732) (482,464) (743,520) (813,296) (1,213,737) (261,820) (29,375,633) (20,007,064) (1,314,056) (87,815) (1,381,721) (959,016) (172,843) (457,950) (821,095) (305,062) (989,730) (343,833) (26,840,185) (292,818) (859,657) 2,499,268 (78,902) 485,632 1,223,148 402,149 23,577 4,554,872 59,135 (116,099) 502,998 1,015,495 1,356,232 369,603 3,187,364 (24,461) (70,535) (94,996) (504) (126,236) (126,740) Non-operating surplus 4,459,876 3,060,624 Profit before income tax 4,167,058 2,200,967 - - 4,167,058 2,200,967 Revenue from operating activities Government and other grants Other revenue Total revenue Expenses from operating activities Employee benefits expense Depreciation and amortisation Finance costs Doubtful debts Repairs, maintenance and vehicle running expense Client’s expense Fuel, light and power expense Rental expense Training expense Audit, legal and consultancy expense Administration expense Other expense Total expenses Operating deficit Revenue from non operating activities Gain on sale of non current assets Loss on sale of investments Charitable and fundraising revenue Income from investments Proceeds from bequests Capital grants Total non operating revenue Expenses from non operating activities Assets written off Prope

Berry Street Web Docs Annual Report 2006 | Page 16