Our financial position

The EPA maintained a sound financial position in 2021–22.

Most of our assets and liabilities are of a financial rather than physical nature. Total EPA assets at 30 June 2022 were $88.8 million, an increase of $15.6 million from 30 June 2021. Cash remains one of our largest assets, being $35.1 million at 30 June 2022. We also have $28.6 million in receivables mostly from waste and environment licences and cost reimbursements. Our current and non-current liabilities at 30 June 2022 were $53.2 million, an increase of $17.5 million from last financial year due to payables of $17.7 million including flood and bushfire project payables.

Solvency ratio: current position

At 30 June 2022 we had $1.22 in current assets to meet every $1.00 of our current liabilities. This year’s solvency ratio is at same level as the previous year’s although both current assets and liabilities have increased.

The current assets have increased by $17.5 million over 2020–21, due mainly to additional receivables. Current liabilities have increased by $21.0 million, due mainly to an increase in payables relating to project activities.

EPA current assets, liabilities and ratio over the last five years

Cashflow management

In 2021–22 the EPA generated $7.6 million from its operating activities. This was $6 million less than in the previous year, largely due to the timing of payments and receipts relating to project activities.

EPA receivables, sales revenue and collection of debts over the last 5 years

Credit management

During the year, the average number of days to pay creditors increased to 151.3 days due to the large accruals for project costs as at 30 June 2022.

EPA payables, operating cost and payment of creditors over the last five years

The increase in average days to pay in the table below is due to some large accruals and payables that were recognised close to the end of the year 2021–22, which increased the overall payable balance.

Expenditure

Exceptional movements in wages, salaries and allowances

There were no exceptional movements in wages, salaries or allowances in 2021–22. All increases to wages, salaries and allowances were consistent with the NSW Government wages policy.

Investment performance

The EPA does not borrow or invest with the NSW Treasury Corporation (TCorp) and has no investment performance to report here.

Liability management performance

The EPA has not accrued any debt greater than $20 million.

Land disposal

As the EPA does not own any land, there was none to dispose of in 2021–22.

Implementation of price determination

The EPA is subject to the recommendations of the Independent Pricing and Regulatory Tribunal of NSW (IPART) under section 18(4) of the Independent Pricing and Regulatory Tribunal Act 1992.

Disclosure of subsidiaries

The EPA had no subsidiaries in 2021–22.

Major assets acquired (other than land holdings)

There were no major retirements of property, plant and equipment (PPE) assets during the year.

At 30 June 2022, the total of the EPA’s PPE assets was $6.0 million.

Production costs of the Annual Report

The total external production costs for the 2021–22 Annual Report were $1,413 for editing and printing. Design costs were in-house with some elements shared with other reporting.

Consultants

Consultancies of $50,000 or more

Consultancies of less than $50,000

• Download the full financial report (PDF 15MB)