RD198 - Virginia Small Business Financing Authority Management’s Discussion and Analysis and Basic Financial Statements and Supplementary Information for the Years Ending June 30, 2012 and 2011


Executive Summary:
This section of the Virginia Small Business Financing Authority’s (the “Authority”) annual financial report presents management’s discussion and analysis of the Authority’s financial performance during the fiscal years that ended June 30, 2012 and 2011. Please read it in conjunction with the Authority’s financial statements, which follow this section. The annual financial report consists of three parts, management’s discussion and analysis, the footnotes and the basic financial statements.

FINANCIAL HIGHLIGHTS

The following information represents a comparative analysis of key financial aspects of the Authority’s operations between the years ended June 30, 2012 and June 30, 2011.

• Cash and investments increased $14,278K (81%) due to the $10.9M received as discussed below.

• The VSBFA received $5M from the Governor and the General Assembly.

• The VSBFA received $5.9M from the U.S. Treasury as a first installment under the State Small Business Credit Initiative (SSBCI).

• The VSBFA created two programs funded entirely by the SSBCI funds – A Capital Access Program and a direct loan program.

• The VSBFA received an additional $62,781 from the Department of Minority Business Enterprise to increase the PACE program funding.

• Notes receivables outstanding are down $2,734K (20%) due to normal payment activity, a large payoff and a significant drop in direct loan applications and approved loans.

• Accounts payable dropped due to the processing of a large bank wire that came in at FYE ’11 for a loan payoff.

• There were no loan charge-offs or claims against guaranties during ’12.

• Interest on loans decreased $50K (-9%).

• Interest earned on cash balances increased $12K (10%) due to higher balances.

• Transferred $100K from VSBFA to VCAP to keep the program operational and $33,629 to cover some payroll expenses.