Berry Street Web Docs Financial Report 2010 | Page 39

BERRY STREET VICTORIA INC.
ABN 24 719 196 762

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
NOTE 21: CAPITAL MANAGEMENT
Management controls the capital of the entity in order to ensure that adequate cash flows are generated to
fund its programs and that returns from investments are maximized. The finance committee enusures that
the overall risk management strategy is in line with this objective.
The finance committee operates under policies approved by the Board of Directors. Risk management
policies are approved and reviewed by the Board on a regular basis. These include credit risk policies and
future cash flow requirements.
The entity’s capital consists of financial liabilities, supported by financial assets.
Management effectively manages the entity’s capital by assessing the entity’s financial risk and responding
to changes in these risks and in the market. These responses may include the consideration of debt levels.
There have been no changes to the strategy adopted by management to control the capital of the entity
since the previous year. The strategy of the entity is to maintain a gearing ratio below 10%.
The gearing ratios for the years 30 June 2010 and 30 June 2009 are as follows:
Note

2010
$

11
4

5,361,435
(3,030,456)

4,791,364
(1,003,001)

Net Debt
Total equity (reserves + retained earnings)

2,330,979
33,666,864

3,788,363
29,019,797

Total Capital

35,997,843

32,808,160

Total borrowings
Less cash and cash equivalents

6.5%

Gearing Ratio

2009
$

11.5%

NOTE 22: SUBSEQUENT EVENTS
Since the end of the reporting date the association is not aware of any events that may have a bearing on
the presentation and disclosure of the financial statements as at 30 June 2010.
The financial report was authorised for issue by the Board of Directors on ...... 2010.

NOTE 24: ASSOCIATION DETAILS
The registered office and principal place of business of the entity is:
Berry Street Victoria Inc.
1 Salisbury Street
RICHMOND
VIC 3121

NOTE 25: SEGMENT REPORTING
The entity operates predominantly in one business and geographical segment, being in the provision of
services in the child welfare sector in Victoria.

37