Parks Victoria - Annual Report 2009-10

FINANCIAL PERFORMANCEFive year financial summary($ thousand)2010 2009 2008 2007 2006Revenue from Government 92,089 83,067 66,920 65,389 61,940Total income from transactions 199,551 184,535 166,964 158,863 148,785Total expenses from transactions 204,476 184,807 170,134 162,892 176,371*Net result from transactions (4,925) (273) (2,923) (4,029) (3,034)Net result for the period (7,726) (1,452) (3,170) (4,029) (27,586)Net cash flow from operating activities 35,859 17,926 31,677 (1,678) 9,620Total assets 1,569,068 1,283,020 1,265,084 1,020,278 948,770Total liabilities 128,066 87,494 72,844 49,020 43,702* Includes Rosebud foreshore assets of $24.6M transferred to the Mornington Peninsula Shire.OverviewBoth revenue and expenses from transactions havebeen increasing at a steady rate for the last five years.This year, revenue reached $200 million for the firsttime. An increasing proportion of this revenue is fortied initiatives delivered across a number of yearssuch as major capital works and fire prevention andrecovery programs. In 2009-10, Parks Victoria recordeda net result from transactions deficit of $4.9 millioncompared to a deficit of $0.3 million in 2008-09,reflecting largely depreciation expenses.Cost pressures such as labour, fuel, electricity, waterand insurance have continued to increase.Parks Victoria continues to record small deficit resultsfrom transactions between zero and $5 million. Asa government agency, Parks Victoria seeks to spendits full revenue. The final result reflects depreciationon assets. Parks Victoria relies on cyclical governmentinitiative funding for maintenance and replacementof assets.Total assets grew to $1,569 million and this was due toa significant transfer of assets and liabilities for a net$242 million for the Yarra Bend Park.Parks Victoria has significant cash and investmentbalances of $96.5 million. However, these funds arecommitted to specific initiatives and assets programs.Financial performance and business reviewRevenue from transactions increased by $15 millionon last year and the five year average growth is 7 percent per annum. This growth in revenue is mainly frominitiative funding, which comes from many sourcesincluding federal and state government and catchmentmanagement authorities. This initiative fundingis tied to specific programs or projects. Recurrent,discretionary funding for core services has been underpressure for a number of years.Financial position – balance sheetTotal assets have increased by $286 million to $1,569million. Parks Victoria was appointed as committee ofmanagement for the Yarra Bend Park during the year,and all the assets and liabilities transferred across toParks Victoria at a net $242 million.While Parks Victoria shows $1.6 billion of assets in itsfinancial accounts, this only reflects assets that are onland where Parks Victoria is appointed committee ofmanagement by government. This represents only asmall proportion of public land and associated assetsthat Parks Victoria manages. More than $2.5 billion inassets are recorded in DSE’s financial accounts that aremanaged by Parks Victoria including national parks,state parks and conservation reserves.Parks Victoria - Annual Report 2009-10 49