Berry Street Web Docs Berry Street Annual Report 2011 | Page 30

BERRY STREET VICTORIA INC Concise Financial Report for the year ended 30 June 2011 DISCUSSION AND ANALYSIS OF THE FINANCIAL SUMMARY Information on Berry Street Victoria Inc Financial Summary Statement of Financial Position Net Assets increased by $1.4 million to $35 million. The major changes were as follows: 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 2011. • Intangible assets increased by $1.6 due to the donation of a property. 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 2011 and of its financial position at 30 June 2011. Statement of Changes in Equity Total equity increased by $1.4 million representing the profit for the year of $1.2 million and a $0.2 million increase in the financial assets revaluation reserve. Cash Flow Statement A copy of the full financial report and auditor’s report is available, free of charge, upon request. There was a net decrease of $2.5 million in cash holdings during the year. The major changes in cash movements during the year included the following: Income Statement • Cash generated through operating activities contributed $4.0 million, principally due to noncash items totalling $2.8 million which form part of operating expenses. These were predominantly depreciation and amortisation. In addition the profit $1.2 million detailed in the commentary on the Income Statement above. The profit for the year ended 30 June 2011 is $1.2 million, compared to a profit of $4.2 million in the previous year. The major items contributing to this result were: Revenues: • Government and other grants increased by $1.9 million • Sale proceeds on property, plant and equipment, net of expenditure, totalled $0.7 million • Charitable and fundraising revenue increased by $1.8 million, which includes a $1.65 million property donation • The increase in the investment portfolio, net of sale proceeds totalled $3.0 million. • Repayment of borrowings (Finance Lease payments for motor vehicles) totalled $4.2 million. • Other revenue increased by $0.8 million • Proceeds from bequests decreased by $0.5 million. Investments Berry Street segregates an amount of long term assets for investment (akin to an endowment) of $22.4 million as at June 30th 2011, which is invested and managed to ensure that: Expenses: • Employee benefits expense increased by $5.9 million and as a percentage of total operating revenue, this also increased from 65% in 2010 to 70% in 2011. • 6% per annum is returned back to operations and; • where the endowment earns more than 6% per annum, that excess is reinvested to grow the endowment. • Occupancy costs increased by $0.7 million mainly due to Building Repair costs, Utility costs and increases to Rental payments. * Page 28 *