BERRY STREET VICTORIA INC
FOR THE YEAR ENDED 30 JUNE 2009
DISCUSSION AND ANALYSIS OF THE FINANCIAL SUMMARY
Information on Berry Street Victoria Inc Financial Summary
The financial summary presented in this Annual Report has been derived from the Financial Report of Berry Street Victoria Inc . for the year ended 30 June 2009 .
The discussion and analysis , together with the financial summary has been included to provide members with an overview of the financial performance of Berry Street Victoria Inc for the year ended 30 June 2009 and of its financial position at 30 June 2009 .
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 2009 is $ 0.7 million , compared to a profit of $ 0.3million in the previous year . The major items contributing to this result were :
Revenues :
• Government and other grants increased by $ 5.1 million
Expenses :
• Employee benefits expense increased by $ 4.2 million although , as a percentage of total revenue , it remained static at 72 %. The number of staff employed by Berry Street Victoria increased by 158 to 775 due to the introduction of new programs .
• Rental expense increased by $ 0.8 million mainly due to the relocation of the North & West Metropolitan region offices which were owned to leased premises . The increased cost was offset by rental rebates on the leased premises totalling $ 0.5 million .
• Other expenses increased by $ 0.5 million due to additional one off projects and payments to partners in programs where Berry Street acted as the lead agent .
Balance Sheet
Net Assets increased by $ 0.2 million to $ 29.0 million . The major changes were as follows :
• Non-Current Financial Assets increased by $ 1.5 million , due mainly to the reclassification of some financial assets from current to non-current assets .
• Property , Plant and Equipment decreased by $ 0.6 million due mainly to the reduction in Land and Buildings and offset by the increase in Plant and Equipment due to the addition of the Bushfire Case Management Services .
• Short term and long term financial liabilities increased by $ 0.6 million . Financial liabilities comprise funding for motor vehicle leases and the increase mainly relates to additional vehicles required for new programs .
Statement of Recognised Income & Expenditure
Total equity increased by $ 0.2 million representing the profit for the year of $ 0.7 million and a $ 0.5 million decrease in the financial assets revaluation reserve . $ 0.6 million was transferred from retained earnings to the unexpended grants reserve representing the net increase in unexpended grants for the year .
Cash Flow Statement
There was a net increase of $ 3.9 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 $ 4.0 million , principally due to noncash items totalling $ 3.1 million which form part of operating expenses . These were predominantly depreciation and amortisation ($ 2.4 million ) and the loss on the sale of investments ($ 0.7 million ).
• Sale proceeds on property , plant and equipment , net of expenditure , totalled $ 2.2 million .
• The proceeds on sale of the short term investment portfolio , net of purchases totalled $ 1.1 million .
• Repayment of borrowings ( Finance Lease Liabilities for motor vehicles ) totalled $ 3.4 million .
24