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Financial summary - Discussion and Analysis - Balance Sheet

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Total Assets

Total Assets

Total assets at 30 June 2008 were $636.5 million compared with the 2006-07 total of $609.1 million. This variation of $27.4 million was caused by a movement in current assets ($4.1 million), an increase in the value of CFA's land and building assets ($6.0 million), and the acquisition of new firefighting and transport vehicles ($17.3 million).

Current assets

Current assets totalled $72.6 million (2006-07: $68.5 million) and included inventories and goods held in store ($7.1 million), money owed to CFA ($9.5 million), properties for sale ($5.3 million) and cash at bank, deposits and prepayments made by CFA ($50.6 million).

Cash reserves are generally held for specific purposes and include initiatives such as replacement of personal protective clothing for firefighters, and land and buildings projects. Receivables increased compared with 2006-07 due to funds outstanding at 30 June 2008 for reimbursement of major fire costs, which were received early in the new financial year.


After depreciation, the value of CFA vehicles was $165.6 million. Of these, CFA-owned vehicles were valued at $142.4 million (2006-07: $126.2 million), and brigade-owned vehicles were valued at $23.2 million (2006-07: $22.1 million).

Plant, machinery and equipment

This included computer hardware, general plant and communications equipment to a total value of $14.6 million (2006-07: $17.4 million).

Buildings and leasehold improvements

The value of CFA-owned buildings and improvements made to leasehold buildings was $284.9 million (2006-07: $279.3 million).

Freehold land

The value of land owned by CFA was $82.5 million (2006-07: $80.9 million).

Capital works in progress

The value of expenditure on capital works, such as buildings, firefighting vehicles and plant, machinery and equipment, which was not yet complete, totalled $16.3 million (2006-07: $14.7 million).

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Total Liabilities

Total Liabilities

Total liabilities at 30 June 2008 amounted to $64.7 million compared with the previous year's total of $62.7 million. The variation of $2.0 million was caused by amounts accrued in relation to increases in the provisions made for employee benefits and volunteer compensation.

Employee entitlements

A total of $42.1 million (2006-07: $39.9 million) is accrued for annual leave and long service leave payments to staff. Most of this will become payable at a future date.

Goods or services not yet paid for

At the end of the financial year a total of $16.2 million was owed for goods or services already provided but not yet paid for. This was an increase of $0.2 million over the corresponding figure last year.

Provision for volunteer compensation

Based on previous claims and actuarial calculations, a total of $6.4 million has been estimated to allow for compensation for injuries to volunteers up to 30 June 2008. This is a decrease of $0.3 million compared with the figure at 30 June 2007.

Balance Sheet Explanatory Note

Each year, the contributions received from the State Government and insurance companies provide funding for that year's recurrent expenditure and capital works. These contributions are classified as income. After deducting recurrent expenses for the year, CFA's net result is determined. Contributions not used for recurrent expenditure provide funding for CFA's capital expenditure program, and also represent funds held for specific programs which have either not yet commenced, or are partially implemented. CFA's accumulated surplus of $150.9 million as disclosed in the balance sheet is an accounting entry reflecting the total of prior year operating results, and does not indicate the level of CFA's cash reserves and/or liquidity.

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Volunteer Brigade Activities

The major assets of CFA volunteer brigades - land, buildings and brigade-owned assets and bank/cash equivalents - are recognised as assets by the Authority in the Annual Financial Statements. New brigade assets and bank/cash equivalents are included annually in CFA's financial statements.

Bank/cash equivalents were brought to account for the first time in the 2006-07 accounts. The cash balances are funds which have been accumulated by brigades over many decades, predominantly for the replacement of existing capital equipment and the purchase of supplementary equipment in their respective brigades. They appear as 'Other Income' in the Operating Statement and as 'Bank/Cash Equivalents' in the Balance Sheet. The bank/cash equivalents incorporated into these financial statements are those held by the brigades at 30 June 2008.

The brigades are funded by CFA and supplemented by community fundraising and donations. Brigade costs borne by CFA are included in the expense analysis of the Annual Financial Statements, either by specific reference (for example: 'Volunteer Compensation'; 'Other Volunteer and Brigade Support'; 'Grants to Volunteer Associations') or by inclusion (under the appropriate expense heading) with CFA's other costs of a similar nature, for example 'Depreciation', 'Building Operating and Maintenance', 'Motor Vehicle', 'Training and Skills Maintenance', 'Uniforms' and 'Equipment'. As the majority of brigade transactions are thus included in CFA's accounts, the remaining separate revenues and expenses of the brigades are not reflected in the Authority's financial statements. CFA also provides brigades with access to an extended credit facility to support brigade-related small asset acquisition programs.

The annual financial statements of brigades are required to be audited each year in accordance with CFA Regulations 2004 (Reg 60). This is to be amended to reflect that brigade financial statements are part of the consolidated CFA financial statements and will be subject to internal CFA financial inspection from 1 July 2008 rather than each brigade having to appoint their own individual auditor.

In order to comply with the Income Tax Assessment Act 1997, relating to tax deductible gifts, the 'CFA and Brigades Donations' Fund was established under a Trust Deed dated 7 June 2004. The trustees are responsible for the preparation of separate financial statements which are subject to independent audit and the financial transactions of the fund are consolidated into the Annual Financial Statements.

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