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BERRY STREET VICTORIA INC
Concise Financial Report for the year ended 30 June 2010
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 2010 .
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 2010 and of its financial position at 30 June 2010 .
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 2010 is $ 4.2 million , compared to a profit of $ 0.7million in the previous year . The major items contributing to this result were :
Revenues :
• Government and other grants increased by $ 9.6 million .
• Proceeds from bequests increased by $ 0.7 million .
• Profit on sale of investments increased by $ 0.7 million
Expenses :
• Employee benefits expense increased by $ 4.5 million although , as a percentage of total revenue , this reduced from 70 % in 2009 to 65 % in 2010 .
• Rental expense increased by $ 0.5 million mainly due to cessation of rental rebates in regard to the North & West Metropolitan region office .
• Other expenses increased by $ 0.4 million due to additional one off projects and payments to partners in programs where Berry Street acted as the lead agent .
• Client costs increased by $ 0.5 million due to increased program delivery and additional client needs .
Statement of Financial Position
Net Assets increased by $ 4.7 million to $ 33.7 million . The major changes were as follows :
• Non Current Financial Assets increased by $ 5.4 million , due mainly to the investment of additional funds .
• 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 Changes in Equity
Total equity increased by $ 4.7 million representing the profit for the year of $ 4.2 million and a $ 0.5 million increase in the financial assets revaluation reserve .
Cash Flow Statement
There was a net increase of $ 1.9 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 $ 8.9 million , principally due to non cash items totalling $ 4.7 million which form part of operating expenses . These were predominantly depreciation and amortisation and increases in employee provisions . In addition the profit of $ 4.2 million detailed in the commentary on the Income Statement above .
• Sale proceeds on property , plant and equipment , net of expenditure , totalled $ 1.9 million .
• The increase in the investment portfolio , net of sale proceeds totalled $ 5.0 million .
• Repayment of borrowings ( Finance Lease Liabilities for motor vehicles ) totalled $ 3.9 million .