The ‘Financial statements’ detail our financial performance and overall financial position for the year ended 30 June 2015. They are presented in accordance with Australian Accounting Standards and the requirements set by the Department of Treasury and Finance.

There are four financial statements for download and notes to the financial statements.

Comprehensive operating statement

This statement is often known as the ‘Profit and loss statement’ and details the sources of our income or revenue under the headings ‘Government’ and ‘Operating’ as well as the expenditure or expenses incurred in running Victoria Legal Aid during the financial year. The expenditure is operational in nature and does not include costs associated with the purchase or the building of assets (capital expenditure).

An item that is included in the operational expenditure is ‘depreciation’, which is the sum of the assets ‘used up’ during the financial year. The ‘Comprehensive operating statement’ includes both cash and non-cash items, and all income and expenses for the year are reflected in the statement even though some income may not be received and some expenses may not yet be paid (such as supplier invoices not yet paid for goods or services received).

A key figure in the ‘Comprehensive operating statement’ is the surplus (or deficit) for the year, which is equivalent to the profit (or loss) of Victoria Legal Aid for the financial year. A surplus indicates that the income was greater than the expenditure. The comprehensive result is also equal to the movement in our net assets or total equity from the prior year.

Balance sheet

This ‘Balance sheet’ is a snapshot of our financial position as at 30 June 2015 and details what we own (assets) and owe (liabilities). The assets and liabilities are separated into current and non-current. ‘Current’ indicates that the assets or liabilities are likely to be consumed or fall due within the next 12 months. The ‘net assets’ value is the residual of assets once the liabilities have been deducted. This represents the net financial worth of Victoria Legal Aid at 30 June 2015.

Statement of changes in equity

The ‘Statement of changes in equity’ summarises the change in our net financial worth during the financial year. During the course of the year the value of total equity as set out in the balance sheet changes. This statement shows the values of such changes and how these changes arose. The main reason for a change in our equity is from the ‘Comprehensive result’, or from the operations described in the ‘Comprehensive operating statement’.

Cash flow statement

The ‘Cash flow statement’ summarises our cash receipts and cash payments for the financial year ended 30 June 2015. The values may differ from those shown in the ‘Comprehensive income statement’ because the income statement is prepared on an accrual accounting basis. This means that income is reported when earned and expenses when incurred not when the physical cash is transacted. Cash in the ‘Cash flow statement’ refers to bank deposits and other forms of liquid amounts that can readily be converted to cash. Our cash arises from, and is used in, two main areas:

1) Cash flows from operating activities

Receipts include all cash received into our bank account from those who owed money to Victoria Legal Aid. Receipts also include the interest received from our cash investments but do not include the costs associated with the sale of assets. Payments include all cash paid by Victoria Legal Aid from its bank account to staff and payments to legal and trade creditors but do not include the costs associated with purchasing assets.

2) Cash flows from investing activities

This section shows the cash invested in the creation or purchase of assets such as property, plant and equipment and the cash received from the sale of these assets, mainly Victoria Legal Aid pool cars.

Notes to the financial statements

The notes should be read in conjunction with the four financial statements so that a clear picture can be obtained of the financial accounts. They provide greater detail to support the presented figures, enabling an understanding of the basis on which the amounts reported in the financial statements are derived.

Download the financial statements

You can download our financial statements, including the Auditor-General's report.

Download our financial statements

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