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 $21.0 million, due mainly to an increase in payables relating to project activities.
EPA current assets, liabilities and ratio over the last five years
Current assets, liabilities and ratio |
2017–18 |
2018–19 |
2019–20 |
2020–21 |
2021–22 |
---|---|---|---|---|---|
Current assets ($ million) |
28.9 |
34.8 |
37.8 |
46.1 |
63.6 |
Current liabilities ($ million) |
19.2 |
19.1 |
21.5 |
31.2 |
52.2 |
Current ratio |
1.5 |
1.8 |
1.8 |
1.5 |
1.2 |
Cashflow management
In 2021–22 the EPA generated $7.6 million from its operating activities. This was $6 million less than in the previous year, largely due to the timing of payments and receipts relating to project activities.
EPA receivables, sales revenue and collection of debts over the last 5 years
Debtor management |
2017–18 |
2018–19 |
2019–20 |
2020–21 |
2021–22 |
---|---|---|---|---|---|
Receivables ($ million) |
6.6 |
7.2 |
5.1 |
6.2 |
5.2 |
Sales revenue ($ million) |
31.2 |
32.0 |
33.0 |
37.4 |
40.3 |
Average days to collect debts |
77.4 |
81.7 |
56.0 |
60.5 |
47.1 |
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.
Credit management |
2017–18 |
2018–19 |
2019–20 |
2020–21 |
2021–22 |
---|---|---|---|---|---|
Payable ($ million) |
9.8 |
9.2 |
9.9 |
19.4 |
37.1 |
Other operating cost ($ million) |
61.2 |
63.0 |
44.9 |
79.9 |
89.5 |
Average days to pay creditors |
58.4 |
53.3 |
80.5 |
88.6 |
151.3 |
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.
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
Consultant |
Category |
Consultancy description |
Cost |
---|---|---|---|
Deloitte Touche Tohmatsu |
Organisational |
Digital & Customer Transformation review |
$555,700 |
Marsden Jacob Associates |
Environmental |
Project report on carbon abatement |
$115,450 |
2ROG Consulting Pty Ltd |
Environmental |
Ecological and environmental research and analysis |
$78,538 |
Deloitte Consulting Pty |
Management |
Delivery of alignment feasibility report |
$75,000 |
ENEA Australia Pty Ltd |
Environmental |
Landfill gas capture consulting |
$74,600 |
Doll Martin Associates |
Environmental |
Controlled waste tracking advice |
$74,000 |
The Change Executive |
Organisational |
Process and systems review |
$69,200 |
Subtotal |
$1,042,488 |
Consultancies of less than $50,000
Category |
Number |
Cost |
---|---|---|
Environmental |
13 |
$368,918 |
Management services |
13 |
$240,217 |
Organisational review |
5 |
$45,074 |
Subtotal |
31 |
$654,209 |