dial 000 for emergency

MFB Headquarters

456 Albert St, East Melbourne

Victoria 3002 Australia

Telephone +61 3 9662 2311

Facsimile +61 3 9665 4244

Website www.mfb.org.au

Dial 000 for emergency

Metr

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Metropolitan Fire and emergency Services Board annual report 2005/06

The fuTure

Metr

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Our skill set continues to change

chemical Biological radiation road accident traumaemergency response

The MFB is responding to the emerging incidents and needs of today’s ever-evolving community. Here are just a few of the challenges we face regularly

- and new ones arise every year

urban Search and rescue High angle rescue team emergency Medical response

July 2005

• Julie elliott was appointed as Board President on 1 July 2005

• The Minister for Police & emergency Services, the honourable Tim holding officiated at the graduation ceremony of recruit Course 91

august

• A Memorandum of understanding (Mou) between Victorian WorkCover Authority, MfB and the Country fire Authority (CfA) was signed to address safety and regulatory issues relating to dangerous goods

• The new Deer Park fire Station was commissioned

• The joint MfB/Metropolitan Ambulance Service (MAS) emergency Medical response program achieved its 50th successful resuscitation since the inception of the program

• The MfB presented two discussion papers at the inaugural International Conference on engaging Communities

• The MfB and CfA signed an Mou with Victoria's water service companies, Yarra Valley Water, South east Water and City West Water for the provision of street hydrant locations on an annual basis

• The MfB conducted its annual TeeNS road safety program for young drivers,

attracting some 1,240 Year 10 students

• MFB crews delivered a fire safety presentation to Somali and Arabic women in Carlton

• MfB conducted a training drill involving a scenario representing an oil spill in Port Phillip Bay at Port Melbourne

• The MfB participated in the Local Government Partnerships Program

• MfB personnel conducted training for the Malaysian fire Services

• The MfB conducted a multi-agency urban search and rescue (uSAr) course

• The MFB's Chief Fire Officer participated in the State Government's Principal for a Day program at Pascoe Vale Girls College

• The MfB introduced new asbestos procedures for responding to emergencies where asbestos is suspected

September

• The MfB attended the Vietnamese Mid-Autumn Moon festival as part of its participation in the Brimbank City Council's fire Safety Awareness Campaign.

• The MfB again participated in the royal Melbourne Show

• The Minister for Police & emergency Services, the honourable Tim holding, officiated at the graduation ceremony of recruit Course 92

• Two MfB representatives participated in the AfAC Industry Study Tour

• The MfB developed a Vector Command training scenario around a major rail crisis for the MfB and multi-agency use

october

• The MfB released three research papers relating to gender equity as part of its Gender equity research Project. These covered gender equity within the organisation's culture, recruitment program and training activities.

• The MfB and CfA were co-sponsors of the 2005 Australian Institute of Building Surveyors (AIBS) conference.

• The MfB participated in the annual Victorian roadsafe Conference as part of its road safety education strategy

• The MfB presented a paper on issues in engaging with culturally and linguistically diverse (CALD) communities at emergency Medical response (eMr) incidents at the 2005 Diversity in health Conference

• The MfB joined other emergency services and federal and state agencies in a multi-jurisdictional exercise called 'Mercury 05' to test national counter-terrorism in preparation for the Commonwealth Games

• The MfB received three awards in the 2005 fire Awareness Safety Awards:

MFESB Turnouts

25000

26000

27000

28000

29000

30000

31000

32000

33000

34000

35000

2005-062004-052003-042002-03

2002/03 - 2005/06

Number of Turnouts Average

2005-062004-052003-042002-03


Response times (minutes) 90th percentile

6.0

6.5

7.0

7.5

8.0

8.5

2002/03-2005/06

Note: 2004/05 figure was influenced by severe weather conditions on the 2nd and 3rd February 2005. The 2004/05 90th percentile response time excluding these days is 7.6 minutes.

Containment of Structure Fires to the Room of Origin

85%

86%

87%

88%

89%

90%

91%

92%

93%

94%

95%

2002/03-2005/06

Based on A23=110-129

Reports affected by Industrial Action have been excluded from the analysis

2005-062004-052003-042002-03 2005-062004-052003-042002-03

Emergency Medical Response Saves

0

2

4

6

8

10

12

14

16

18

20

2002/03-2005/06

2005-062004-052003-042002-030

1

2

3

4

5

6

7

8

Preventable Fire Related Fatalities 2002/03-2005/06

Number of Calls in the MFD by LGA

0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000

Greater Dandenong City Council

Banyule City Council

Bayside City Council

Boroondara City Council

Brimbank City Council

Darebin City Council

Glen Eira City Council

Hobsons Bay City Council

Hume City Council

Kingston City Council

Manningham City Council

Maribyrnong City Council

Maroondah City Council

Melbourne City Council

Monash City Council

Moonee Valley City Council

Moreland City Council

Port Phillip City Council

Stonnington City Council

Whitehorse City Council

Whittlesea City Council

Wyndham City Council

Yarra City Council

Yarra Ranges Shire Council

2002/03-2005/06

2002-03 2003-04 2004-05 2005-06

2002-03 2003-04 2004-05 2005-06

0 2000 4000 6000 8000 10000 12000 14000 16000

Fires and Explosions

Hazardous Conditions(Not a Fire)

Rescue and EmergencyMedical Service

Service Calls

False Alarms and False Calls(Incl. Good Intent Calls)

Other Situations

MFESB Turnouts

25000

26000

27000

28000

29000

30000

31000

32000

33000

34000

35000

2005-062004-052003-042002-03

2002/03 - 2005/06


2005-062004-052003-042002-03



6.0

6.5

7.0

7.5

8.0

8.5

2002/03-2005/06



85%

86%

87%

88%

89%

90%

91%

92%

93%

94%

95%

2002/03-2005/06



2005-062004-052003-042002-03 2005-062004-052003-042002-03


0

2

4

6

8

10

12

14

16

18

20

2002/03-2005/06

2005-062004-052003-042002-030

1

2

3

4

5

6

7

8



0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000









Hume City Council






Monash City Council








Yarra City Council


2002/03-2005/06

2002-03 2003-04 2004-05 2005-06

2002-03 2003-04 2004-05 2005-06

0 2000 4000 6000 8000 10000 12000 14000 16000




Service Calls


Other Situations

the year in review

MFBeSB turnouts 2002/03 - 2005/06

response times (minutes) 90th percentile 2002/03 - 2005/06

Note: 2004/05 figure was influenced by severe weather conditions on the 2nd and 3rd February 2005. The 2004/05 90th percentile response time excluding these days is 7.6 minutes. The 2005/06 figure was influenced by severe weather conditions on the 26th and 27th February 2006. The 2004/05 90th percentile response time excluding these days is 7.9 minutes.

i MFB ANNUAL REPORT 05/06

emergency response Statistics

-Industry Award Winner for the ‘Take on the Critics’ campaign - a campaign in partnership with the CfA, energySafe Victoria and WorkSafe Victoria

-Industry Award highly Commended Certificate for the ‘Exit Awareness Campaign’ in partnership with the Building Commission, City of Melbourne and Convenience Advertising

-Indigenous and Multicultural Award Winner for the horn of Africa: Staying Safe project

• MfB representatives attended the Australasian fire Authorities Council (AfAC) and Bushfire Cooperative Research Centre (CrC) Conference in Auckland

• The MfB's plans for a response to avian influenza were well developed

november

• MfB representatives attended the Australian Iraqi forum at Melbourne university

• The MFB tested the firefighting pumps at eureka Tower

• The MfB facilitated a multi-agency table top exercise to test Victoria's draft decontamination protocols

• The MfB assisted in the facilitation and delivery of a four-day, multi-agency venue-commander training program in preparation for the Commonwealth

Games

• The MfB presented to the home Safety expo targeting older people and their carers in the western suburbs of Melbourne

• MFB firefighters attended a chemical spill in a Mordialloc fibreglass factory where 80 persons had to be evacuated

• The MfB hosted a roundtable, with the disability sector, titled 'ensuring Access to People with Disabilities'

• MfB crews evacuated 28 patients from a fire at the Carnsworth Nursing Home in Kew

• Long service and national medal awards were presented to MfB staff

december

• The MfB presented to the Springvale Community Aid and Advice Bureau's Leadership Dialogue Series

• MfB received Victorian Government Awards for excellence in Multicultural Affairs:

- Leading Firefighter Peter Loenen was recognised for his work with diverse communities

-The MfB Community education Department, for the horn of Africa Staying Safe Project

-Along with the royal Children’s hospital and Victoria Police, under

the umbrella of the Victorian Safe Communities Network, for the widespread media campaign to deliver safety messages in other community languages

• The MfB participated in the multi-agency exercise Trident conducted in the Melbourne underground rail Loop to test preparedness for the Commonwealth Games

• The MfB presented a submission to the Victorian Parliament Law reform Committee review of the Coroners Act

• The MfB, in conjunction with the CfA, Department of Sustainability & environment and energySafe Victoria, launched the Summer fire Safety Campaign

• The MfB Once a Year Club visited and entertained children and their families at the royal Children's hospital on Christmas Day

• AS/NZ 4801 health and Safety Auditors conducted a health and Safety representatives seminar at the Veneto Club

• The MfB and CfA conducted a summer fire season briefing at CFA Headquarters

January 2006

• The award winning 'exit Awareness Campaign' was relaunched to extend important fire safety messages to night clubs throughout Melbourne

MFESB Turnouts

25000

26000

27000

28000

29000

30000

31000

32000

33000

34000

35000

2005-062004-052003-042002-03

2002/03 - 2005/06


2005-062004-052003-042002-03



6.0

6.5

7.0

7.5

8.0

8.5

2002/03-2005/06



85%

86%

87%

88%

89%

90%

91%

92%

93%

94%

95%

2002/03-2005/06



2005-062004-052003-042002-03 2005-062004-052003-042002-03


0

2

4

6

8

10

12

14

16

18

20

2002/03-2005/06

2005-062004-052003-042002-030

1

2

3

4

5

6

7

8



0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000









Hume City Council






Monash City Council








Yarra City Council


2002/03-2005/06

2002-03 2003-04 2004-05 2005-06

2002-03 2003-04 2004-05 2005-06

0 2000 4000 6000 8000 10000 12000 14000 16000




Service Calls


Other Situations

number of calls in the Metropolitan Fire district (MFd) by local government area (lga) 2002/03 - 2005/06

ii MFB ANNUAL REPORT 05/06

• MFB crews attended a fire involving 50 tonnes of recycled paper at the Amcor fibre Packaging plan in Alphington

• MfB crews and nursing staff evacuated 50 people from a fire at the Fernhill hostel in Sandringham

• The MfB attended Crown Casino's emergency preparedness exercise as part of training and preparation for the Commonwealth Games

• The MFB conducted fire safety awareness activities for many thousands of people attending the Muslim eid festival, the largest of its kind in Victoria

• MfB crews responded to a request from the CfA to assist with a number of bushfires that had broken out across parts of the State

• The MfB conducted a terrorism response exercise titled 'exercise hotwire' at the Vicroads headquarters

• MFB firefighters and MAS paramedics achieved two successful resuscitations through the eMr first responder program

• The MfB hosted a visit from Deputy Commissioner roy Bishop from the London fire Brigade

February

• The MfB conducted a focus group with the Victorian Women's Disability Network as part of the organisation's access and equity program

• The MfB participated in a counter terrorism table-top exercise organised by the Westfield Group for the Southland shopping complex

• MfB crews, in support of Victoria State emergency Service (SeS), responded to 246 calls for help relating to significant storm activity across Melbourne on 25 february 2006

• MfB Director Community Safety, Deputy Chief Fire Officer, Dave Nicholson AfSM, retired after 33 years of service to Melbourne's community

• MfB staff attended exercise Westend at Southern Cross Station as part of counter terrorism preparedness

• MfB representatives attended the Local Government Professional Conference

• The MfB, with the Department of human Services, launched the Auslan project to provide smoke alarms for hearing impaired persons

• The Victoria Police and emergency Services Games was launched at MfB headquarters

March

• An Mou was signed between the MfB and CfA, assigning areas of responsibility for marine response service delivery across Port Phillip Bay

• In partnership with Vicroads, Victoria Police and MAS, the emergency Vehicle Pre-emption System was introduced to assist emergency vehicle response for the Commonwealth Games

• MfB crews attended a large metal swarf fire, which started on 31 March at the Southern rocycling scrap metal plant in Ringwood. The fire burned for more than 72 hours

• The MfB participated in a range of activities throughout Cultural Diversity Week

• The Commonwealth Games were held in Melbourne. The MfB operated a full-time fire station at the Athletes' Village for three weeks and provided emergency service coverage at selected venues for 10 days

• The MfB provided emergency service support for the Australian formula 1 Grand Prix

april

• The Operational Staff Agreement was certified on 19 April

• 115 MFB firefighters and 48 CFA firefighters fought a major factory fire in

MFESB Turnouts

25000

26000

27000

28000

29000

30000

31000

32000

33000

34000

35000

2005-062004-052003-042002-03

2002/03 - 2005/06


2005-062004-052003-042002-03



6.0

6.5

7.0

7.5

8.0

8.5

2002/03-2005/06



85%

86%

87%

88%

89%

90%

91%

92%

93%

94%

95%

2002/03-2005/06



2005-062004-052003-042002-03 2005-062004-052003-042002-03


0

2

4

6

8

10

12

14

16

18

20

2002/03-2005/06

2005-062004-052003-042002-030

1

2

3

4

5

6

7

8



0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000









Hume City Council






Monash City Council








Yarra City Council


2002/03-2005/06

2002-03 2003-04 2004-05 2005-06

2002-03 2003-04 2004-05 2005-06

0 2000 4000 6000 8000 10000 12000 14000 16000




Service Calls


Other Situations

MFESB Turnouts

25000

26000

27000

28000

29000

30000

31000

32000

33000

34000

35000

2005-062004-052003-042002-03

2002/03 - 2005/06


2005-062004-052003-042002-03



6.0

6.5

7.0

7.5

8.0

8.5

2002/03-2005/06



85%

86%

87%

88%

89%

90%

91%

92%

93%

94%

95%

2002/03-2005/06



2005-062004-052003-042002-03 2005-062004-052003-042002-03


0

2

4

6

8

10

12

14

16

18

20

2002/03-2005/06

2005-062004-052003-042002-030

1

2

3

4

5

6

7

8



0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000









Hume City Council






Monash City Council








Yarra City Council


2002/03-2005/06

2002-03 2003-04 2004-05 2005-06

2002-03 2003-04 2004-05 2005-06

0 2000 4000 6000 8000 10000 12000 14000 16000




Service Calls


Other Situations

containment of Structure Fires to the room of origin 2002/03 - 2005/06

emergency Medical response Saves 2002/03 - 2005/06


Reports affected by industrial Action have been excluded from the analysis

MFB ANNUAL REPORT 05/06 iii

Moorabbin, the largest fire in Melbourne for more than a decade

• MfB staff collected donations for the royal Children's hospital Good friday Appeal, raising $11,031.50

• The MfB high Angle rescue Team was called in to stabilise a broken window on the 25th floor of a 35 storey building in Melbourne CBD

• The MfB achieved 100% transition to the Metropolitan Mobile radio (MMr) technology

• Two more successful resuscitations in the eMr first responder program were achieved, making a total of 6 successful saves for the calendar year and 60 since the inception of the program

• The MfB Charity running Club held its second Canberra to Melbourne run and was named Anzac of the Year by the returned Services League

May

• The Administrative and Operational Support Staff Agreement was certified on 9 May

• The MfB's high Angle rescue Team was called to assist the CfA in rescuing 8 people stranded on the Arthur's Seat Chairlift on the Mornington Peninsula

• The MfB attended the State Conference of the Victorian Branch of the Australian

resuscitation Council, which included an MfB display of the emergency Medical response program

• The Minister for Police & emergency Services, the honourable Tim holding, officially opened the new Glen Waverley fire Station on 13 May and the Deer Park fire Station on 27 May

• 200 patients and 50 staff were safely evacuated from the royal Melbourne Hospital when a fire broke out on the first floor of the building

• The optic fibre network was launched at the Deer Park fire Station. The network provides super broadband networking to CfA selected sites and all MfB geographical points of interest

June

• MFB women firefighters and corporate staff participated in the 2nd annual Conference for Women Firefighters in Sydney

• As part of the Winter fire Safety Campaign, the MfB supported an initiative funded by the Department of human Services and facilitated by Archicentre to provide free house-health, safety and maintenance inspections for older Victorians

• MFB firefighters attended their local McDonald's stores to promote the importance of home escape plans as

part of the inaugural national McDonald's home escape Day Campaign

• The MfB, in partnership with Victoria Police and local councils, conducted the second fire safety awareness program for nightclub owners/managers as part of the Liquor Licence Nightclub Accord

• The MfB celebrated its good working relationship with the Vietnamese community with the launch of two pumpers featuring artwork of Vietnamese water dragons and smoke alarm safety messages, at the Quang Minh Temple

• MFB crews attended a fire at the 'Witches in Britches' theatre restaurant, rescuing trapped staff from the premises

• The MfB worked with other emergency service organisations to patrol Melbourne's CBD as thousands of people gathered to watch the telecast of the World Cup Soccer final at a number of venues

• The MfB participated in a joint Disaster Victim Identification/Chemical Biological radiation unit training exercise conducted by Victoria Police to test their ability to enter stormwater drains to retrieve evidence

• The joint MfB/MAS emergency Medical response program achieved its fourteenth successful resuscitation for 2005/06, making a total of 63 since the inception of the program

MFESB Turnouts

25000

26000

27000

28000

29000

30000

31000

32000

33000

34000

35000

2005-062004-052003-042002-03

2002/03 - 2005/06


2005-062004-052003-042002-03



6.0

6.5

7.0

7.5

8.0

8.5

2002/03-2005/06



85%

86%

87%

88%

89%

90%

91%

92%

93%

94%

95%

2002/03-2005/06



2005-062004-052003-042002-03 2005-062004-052003-042002-03


0

2

4

6

8

10

12

14

16

18

20

2002/03-2005/06

2005-062004-052003-042002-030

1

2

3

4

5

6

7

8



0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000









Hume City Council






Monash City Council








Yarra City Council


2002/03-2005/06

2002-03 2003-04 2004-05 2005-06

2002-03 2003-04 2004-05 2005-06

0 2000 4000 6000 8000 10000 12000 14000 16000




Service Calls


Other Situations

preventable Fire related Fatalities 2002/03 - 2005/06

MFESB Turnouts

25000

26000

27000

28000

29000

30000

31000

32000

33000

34000

35000

2005-062004-052003-042002-03

2002/03 - 2005/06


2005-062004-052003-042002-03



6.0

6.5

7.0

7.5

8.0

8.5

2002/03-2005/06



85%

86%

87%

88%

89%

90%

91%

92%

93%

94%

95%

2002/03-2005/06



2005-062004-052003-042002-03 2005-062004-052003-042002-03


0

2

4

6

8

10

12

14

16

18

20

2002/03-2005/06

2005-062004-052003-042002-030

1

2

3

4

5

6

7

8



0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000









Hume City Council






Monash City Council








Yarra City Council


2002/03-2005/06

2002-03 2003-04 2004-05 2005-06

2002-03 2003-04 2004-05 2005-06

0 2000 4000 6000 8000 10000 12000 14000 16000




Service Calls


Other Situations

Breakdown of calls by type of incident (MFd only) 2002/03 - 2005/06

MFB ANNUAL REPORT 05/06 iv

our Mission Protecting Our Community

our objectivesinitiative - Showing initiative in our community safety activities and services

response - Providing an appropriate response to all calls for assistance and advice

professionalism - Being professional in all that we do

our visionContributing towards making Melbourne one of the safest communities in the world.

v MFB ANNUAL REPORT 05/06

contents

MFB ANNUAL REPORT 05/06 vi

i emergency response Statistics

i The Year in review

v Mission Vision and Objectives

02 About the MfB

03 President’s report

04 Chief executive and Chief Officer’s Report to the Board

05 Board Member Profiles

07 executive Management Team

10 Organisational Structure

12 review of Operations

23 Case study highlights

25 Our People

29 Industrial relations

30 honours and awards for the period - 2005/2006

32 MfB and the environment

35 Corporate Governance Statement

42 Management Discussion and Analysis

48 Board report

49 financial Statements

79 Independent Audit report

81 Compliance Index

82 Abbreviations and acronyms

83 fire Station and Zones

about this report

The Metropolitan fire and emergency Services Board (MfB) issues this report to the Minister for Police & emergency Services to be tabled in Parliament in October 2006. The report provides a true and fair account of the financial status of the organisation. It also provides a concise report on the MfB activities over the past twelve months and the progress against the MfB Corporate Action Plan for 2005/06.

The MfB welcomes feedback on this report. Any feedback should be in writing to:

editor Annual report Corporate relations PO Box 151 east Melbourne VIC 3002

This report is available for viewing online: www.mfb.org.au

Additional copies are available upon request: Phone 03 9665 4452

We protect three million residents, workers and visitors and more than $200 billion of assets and vital community infrastructure, responding to wide array of emergencies...24 hours a day, 365 days a year.

The area served by the MfB is known as the Metropolitan fire District (MfD) and covers more than 1,000 square kilometres incorporating Melbourne’s central business district, inner and middle suburbs. We protect three million residents, workers and visitors and more than $200 billion of assets and vital community infrastructure, 24 hours a day, 365 days a year.

Our firefighters respond to a range of hazards – fires in buildings, bush and vegetation fires (often in support of the CFA), medical emergencies, road accidents, incidents involving hazardous materials, building collapses and a variety of other emergency situations (again, often supporting other organisations).

The MfB also supports the development and maintenance of emergency management arrangements for the state and provides advice on these matters at local, state and national levels.

Over time the MfB has built a range of proven community education programs and campaigns designed to help our firefighters work closely with Melbourne’s diverse communities and identified at-risk groups of all ages. We promote community safety and coordinate emergency prevention and preparedness activities. We also work with government and private industry to ensure the places we work in, visit and enjoy are protected in an appropriate manner.

2006/07 will continue to see change in all aspects of life. For the MFB, this means the need to remain flexible and responsive to change as the organisation continues to strengthen critical partnerships that support the delivery of excellence in emergency service response provision.

MFB ANNUAL REPORT 05/06 02

The MFB is an emergency management and community safety organisation providing fire prevention, fire suppression and emergency response services in the Melbourne metropolitan area.

about the MFB

Dear Minister,

It is my pleasure to present to you the Metropolitan fire and emergency Services Board Annual Report for the financial year ended 30 June 2006.

The MFB’s achievements over what has been a challenging year have been significant and I am proud of the efforts made to reach a favourable outcome.

The theme for this report, Looking Toward A Sustainable Future, was chosen to reflect the emerging needs of the community and the journey of the organisation and our people to meet these needs. An emergency service organisation such as the MfB must look forward to ensure flexibility in the way it operates if it is to be successful in its mission.

The MfB has a long-standing record of excellent service to the community, supported by 115 years’ experience, enabling the organisation to build towards this future. A sustainable future involves bringing our people along on the journey and working with them collaboratively to protect the people and infrastructure of Melbourne against threats, which we cannot always predict.

Communication with our employees and our key stakeholders will remain a priority. We will continue to develop our people and maintain their skill base to ensure the most appropriate response to emergencies.

Sustainability also reflects our focus on cost consciousness within the organisation and its activities. The year ahead will see a greater focus on those projects which involve our people and which deliver tangible community benefits in the most cost-efficient way.

We will also continue to work with other emergency services to enhance the State’s emergency response interoperability. Through partnerships, we will share resources where practicable and where mutual benefits can be realised.

In the past year we have worked with other organisations for the good of the broader community. This has included the finalisation of the Metropolitan Mobile Radio project linking the MfB with other emergency services.

We have also continued to grow our relationship with the CfA, sharing many opportunities to enhance service delivery. This has included the fibre-optic network, technology, incident management training exercises and the Marine response Memorandum of understanding.

Another focus for the year ahead will be the MfB’s commitment to protecting the environment. This is also an important part of working towards a sustainable future and the MfB will constantly seek activities and strategies for reducing its impact on the environment.

I am also pleased to advise that the financial status of the organisation is sound. All activities are funded and liabilities are covered. I refer you to the Board report on financial Statements which commences on page 48 of this report.

I commend the Annual report to you and the Victorian Government.

Julie Elliott

MfB President

president’s report

03 MFB ANNUAL REPORT 05/06

The MFB’s achievements over what has been a challenging year have been significant...

chief executive and Chief Officer’s Report To the Board

The 2005/06-year has been a challenging one for the MfB. Significant energy was placed in establishing an operational enterprise agreement that sets the foundation for the next three years.

While our industrial negotiations were lengthy, the organisation managed to achieve a number of recognisable milestones this past year.

The fibre-optic project, connecting our fire stations and sites, was successfully completed. This will ensure better telecommunication coverage and improved capacity for our firefighters to respond to any emergency call.

The CommNet project, which developed the network, was a significant project for the MFB. Its success has involved cooperation from the municipalities across Victoria, Multi Media Victoria (MMV), other corporations and suppliers.

The network has also been extended to cater for the communication and response needs of the CfA, which further reflects upon the importance of the relationship we share. Another important milestone that builds on our partnership with the CfA was the signing of the Marine Memorandum of understanding, which sees our activities extend to cater for fire on vessels within Port Phillip Bay.

Our work with the other emergency service organisations (eSOs) has remained a focus for the MfB. This has included secondments to other organisations such as the Victoria State emergency Service and we are proud to support its new role as a statutory authority.

Our emergency Medical response first responder program has also accelerated this past twelve months, with 15 successful resuscitations achieved, bringing a successful save total to 63 since the inception of the program. I wish to pass on my personal thanks to the Metropolitan Ambulance Service Paramedics who have worked with our firefighters to achieve such a great result.

We have also worked with eSOs in preparation for potential terrorist activity. A number of exercises were conducted throughout the year, including simulated exercises involving the Metropolitan underground rail Loop. These exercises have been testimony to the cooperation between the emergency services here in Victoria and the joint commitment to making Melbourne one of the safest cities in the world.

This cooperation was clearly highlighted as the MfB worked with State and Commonwealth agencies in preparation for,

and throughout, a very successful Commonwealth Games held here in Melbourne.

The progressive rollout of the Strategic Location Plan has continued throughout the year, with appropriate acquisition of sites to accommodate future plans. Additionally, the Minister officiated at the opening of two new stations at Deer Park and Glen Waverley.

Our people remain a committed workforce that continues to strive to do the best for the community it serves. This includes a myriad of activity outside our core business of fire and emergency services, involving individual employees, teams and departments.

A good example of this individual effort and group endeavour, was highlighted by, the Victorian Government Awards for Excellence in Multicultural Affairs. MFB’s Leading Firefighter Peter Loenen was recognised for his work with diverse communities and the MfB Community education department for the horn of Africa Staying Safe Project. A further award was received for our work with the royal Children’s hospital and Victoria Police, under the umbrella of the Victorian Safe Communities Network for the media campaign delivering safety messages in other community languages.

Our charity sporting clubs have also done an admirable job in raising funds for worthwhile causes such as the eye research foundation and the royal Children’s hospital. The MfB Charity running Club, which again ran from Canberra to the MCG in Melbourne on Anzac Day, was named Anzac of the Year by the Returned Services League for its significant contribution to that organisation.

The good work of our people does not just rest on local soil. Our work with overseas emergency service agencies is also an important part of protecting the global community. Our work in Samoa, for example, has seen the MfB play a leadership role in their fire service’s corporate planning and development of numerous projects.

The year ahead will continue to present new challenges for our people and I am confident they will rise to those challenges. I look forward to building closer relationships with the ufu as we work together to support our employees in their efforts. This will be a vital factor to progress the organisation toward a sustainable future.

Peter A Akers Chief Executive and Chief Officer

MFB ANNUAL REPORT 05/06 04

Mr Sam Aziz BA (hons), MA (Defence Studies),

Advanced Diploma (Business),

Advanced Diploma (Government)

Julie elliott has been President of the Metropolitan fire & emergency Services Board since 1 July 2005. She initially joined the Board in December 2000 and, prior to becoming President, held the positions of Chair of the Governance Committee and Deputy President of the Board.

Julie is a Chartered Accountant with a Bachelor of economics, recently completing her MBA with the Australian Graduate School of Management.

As National Manager, Business Advice, of a major Australian financial service organisation, Julie brings to the MFB a wealth of experience in finance, governance, drivers of business, service culture and marketing.

Sam Aziz was appointed to the Board on 20 September 2005 for a three-year term.

he is currently employed as a Director with a Commonwealth law enforcement agency. he has previously been employed with the Commonwealth Attorney-General’s Department and with the Department of Defence in a range of international and domestic security-related positions. Sam has completed an honours Degree in Political Science and a Masters Degree in Defence and Strategic Studies. he has extensive experience in working with community groups and local government organisations for over a decade. Sam currently serves in an honorary capacity as an adviser on Government and Public Affairs to the Coptic Orthodox Church Diocese of Melbourne. Sam has also served as a Commissioner of the Victorian Multicultural Commission from 2000-2005.

Ms Julie Elliott President

Bec, MBA (exec), fCA, AIBf (Snr),

MAICD


Board Member Profiles

Ms Jennifer Sutton BSc (hons), MBA

Mr Ian Spicer AM LLB, fAIM, fCIM, AICS

Mr. Geoff Lake BA, LLB (Hons.)

Ian Spicer was appointed to the Board in September 1997. In July 2003 his term of office was extended until 30 June 2006.

he has had over 35 years’ experience in representing Australian business both at the national and international level. Ian was formerly the Chief executive of the Australian Chamber of Commerce and Industry (ACCI) and, prior to that, the Chief executive of the Confederation of Australian Industry and the Victorian employer’s federation (now VeCCI).

Ian is a Board Member of the Australian Institute of health and Welfare, a Director of Tourism Accreditation Australia Limited and a member of a number of Australian government advisory bodies.

Jennifer Sutton was appointed to the Board in September 1997. In June 2005 her term of office was extended until 30 June 2006, at which time Jennifer retired from the Board.

her career has spanned the industrial chemicals, research and development and manufacturing sectors.

Jennifer is Business Development Manager for CSIrO Marine and Atmospheric research and brings to the Board knowledge of chemicals and dangerous goods and technology management, as well as general business management and marketing expertise.

Geoff Lake was appointed to the Board on 14 June 2005 for a three-year term.

he has had over six years’ experience in local government and is in his third term as a Councillor at the City of Monash. Geoff became the state’s youngest Mayor at the age of 22 when he was elected Monash Mayor for the 2002/03 and 2003/04 terms.

Since 2004, Geoff has served as President of the Municipal Association of Victoria (MAV). This is a full-time role, leading the statutory peak body for Local Government in Victoria and representing the interests of the 79 councils across the state. Geoff is also Vice President of the Australian Local Government Association (ALGA) based in Canberra.

Melanie raymond was appointed to the Board on 1 July 2002. In June 2005 her term of office was extended for a further three years.

She has studied labour relations at harvard university and worked in industrial relations, media and policy development for fifteen years within health and community services, finance and transport, as well as local government. As a Councillor on Moreland City Council, Melanie chaired the Community Safety Leadership Group bringing together a wide range of government and community agencies to develop and lead the municipal community safety plan.

Melanie is also Chairperson of the youth support agency Youth Projects Inc., a member of the Victorian Liquor Licensing Ministerial Council and, within the Melbourne health Network, a member of the Community Advisory Board and Quality and Safety Committee.

Ms Melanie Raymond BA (hons), MA (hons), MAICD

06MFB ANNUAL REPORT 05/06

With a distinguished 30-year background in serving Local Government, Peter Akers was appointed to the position of Chief executive and Chief Officer in May 2000 after serving as the Director Community Safety.

Peter’s term of office was extended for a further five years in June 2004.

responsible to the Board for overall performance of the MfB, Peter uses his proactive and collaborative management style to lead the executive Management Team and the MfB’s 1,932 employees.

Peter was elected as President of the Australasian fire Authorities Council (AfAC) and Chairman of AfAC Limited in October 2003, having previously served as Treasurer.

Keith Adamson joined the MfB in 1973 and has held senior management positions in several MfB Directorates. he was Director human resources from December 1990 to November 1996. After acting in the role of Director emergency response for 19 months, Keith was appointed to the position of Director Corporate relations in August 1998; a role which he filled until february 2006.

Keith took up the role as Director Community Safety at the time of David Nicholson’s retirement from that role in february 2006.

The Community Safety Directorate is responsible for the Community education, Structural fire Safety, fire Investigation and Analysis, Dangerous Goods and Community Safety Technical Departments.

Gary Barge was appointed as Director finance and Administration in November 1995. Previously, Gary was Manager finance and resource Budgeting within the Metropolitan fire Brigades Board.

The finance and Administration Directorate is responsible for all aspects of financial management, the false alarm reduction strategies and fire equipment Services.

Peter Akers CP eng, Ce, MIe Aust., fAIM, MICD

Chief Executive and Chief Officer

Keith Adamson AfSM, GradDip Mgt, MIfiree,

GradefOP (uSA)

Director Corporate Safety/Deputy

Chief Fire Officer

Gary Barge fCPA

Director finance and Administration

The MFB is an emergency management and community safety organisation providing fire prevention, fire suppression and emergency response services in the Melbourne metropolitan area.


executive Management team

Jim Carlisle was appointed Director human resources in November 1998. Previously, Jim held a similar position with the Public Transport Corporation and, prior to that, at the State electricity Commission.

The human resources Directorate advises the Chief Executive and Chief Officer on human resource issues including industrial relations matters and is responsible for developing and implementing human resource policies and strategies to meet the business needs of the MfB.

Sue Fitzpatrick joined the MfB in December 2001 as executive Manager Corporate relations and was appointed Acting Director in february 2006.

The Corporate relations Directorate manages the internal and external communication actives for the organisation and encompasses stakeholder communications, print and media production management, government relations, brand awareness and image management, corporate event management, media relations and training, internal communications and issues management

Andrew haynes was appointed Acting Director Corporate Governance / Acting Corporate Secretary on 21 March 2005. he was admitted as an Attorney of the high Court of South Africa in 1994 and emigrated to Australia in 1997. he has worked in a number of senior legal, compliance and tax roles in Australia and overseas. Prior to joining the MfB, Andrew was Company Secretary of Ge Australia & New Zealand. Andrew resigned from his position in february 2006.

The Corporate Governance Directorate has responsibility for the Corporate Secretariat, risk Management and records and Administration Departments. The Corporate Governance Directorate also has responsibility for maintaining the Board’s insurances and for coordinating the provision of legal advice to the Board.

Tony Murphy joined the MfB in 1979 and was appointed Director Operations in May 2003 after acting in the position and contributing to the redevelopment of the MFB’s operational firefighting structure.

Tony was promoted to the rank of Chief fire Officer in August 2004. he is responsible for the performance of the MfB’s on-shift firefighters and oversees management of the Zone Command structure.

Jim Carlisle Dip.Bus.

Director human resources

Sue Fitzpatrick Dip. Youth Work, Post Grad. Dip

Management

Acting Director Corporate relations

Andrew Haynes B.A. LL.B. fCIS MAICD, h Dip Internat.

Studies, Cert. Legal Practice

Acting Director Corporate Governance/

Corporate Secretary

Tony Murphy AfSM, M.Bus, GradDip hr and Ir,

Assoc Dip Applied Science (fire Tech),

G.I.f.e., Grad efOP (uSA)

Director Operations/Chief Fire Officer,


David Nicholson joined the MfB in 1973 and has held senior positions in both the emergency response and Community Safety Directorates.

David was appointed as the Director of Community Safety in June 2000. The Community Safety Directorate is responsible for the Community education, Structural fire Safety, fire Investigation and Analysis, Dangerous Goods and Community Safety Technical Departments. David retired from the MfB in february 2006.

elaine Stewart joined the MfB in 2003 as Assistant Corporate Secretary. She was appointed Acting Corporate Secretary on 27 february 2006.

The Corporate Secretary’s role includes responsibility for administrative support to the Board and the executive Management Team, legal compliance issues and corporate governance.

elaine is responsible for the management of the provision of legal advice to the Board and eMT, the provision of information under the freedom of Information Act 1982, and the monitoring of compliance with State legislation applicable to the MfB. elaine is also the Protected Disclosure Coordinator for the purpose of administering the requirements of the Whistleblower Protection Act.

Peter Whelan has worked for the MfB for 32 years and was appointed Director Technical Services in 1995.

The Technical Services Directorate is responsible for major building construction including the Board’s Strategic Location Plan, facility services, equipment development, mechanical engineering, supply, information and communication services and fleet management.

Shane Wright joined the MfB in 1981 and was appointed Director Operations Strategy in May 2003 after acting in the position and contributing to the redevelopment of the MFB’s operational firefighting structure.

The Operations Strategy Directorate was further enhanced in August 2004 with additional responsibility for corporate planning functions, at which time the directorate was renamed Corporate Strategy. The Corporate Strategy Directorate oversees emergency response Management, Operations Policy, Communications and Technology.

David Nicholson AfSM, Grad efOP (uSA)

Director Community Safety/Deputy Chief Fire Officer

Elaine Stewart fCIS

Acting Corporate Secretary

Peter Whelan MCIPS, MCIT

Director Technical Services

Shane Wright AfSM, MIfiree, M.Bus, GradDip BA,

Assoc Dip Applied Science (fire Tech)

Director Corporate Strategy /Deputy

Chief Fire Officer,


executive Management team


organisational Structure

Director of Corporate Strategy

Deputy Chief Fire Officer

Shane Wright

Director of Operations

Chief Fire Officer

Tony Murphy

Director of Community Safety

Deputy Chief Fire Officer

Keith Adamson

Acting Director of Corporate Relations

Sue Fitzpatrick

Director of Human Resources

Jim Carlisle

Director of Technical Services

Peter Whelan

Director of Finance & Administration

Gary Barge

Corporate Governance, Assistant Corporate Secretary

Elaine Stewart

Emergency ManagementExecutive Manager

Assistant Chief Fire Officer

Paul Riley

Central Zone

Executive Manager


Mick Walker

Community Education

Executive ManagerAssistant Chief Fire Officer

Rob Taylor

Corporate Relations

Acting Executive Manager

Wayne Debernardi

Employee Relations

Executive Manager

Michele Salmon

Equipment

Development Manager

Commander

Terry Hitch

Alarm Assessment

Manager

Commander

Ron Haines

Risk Manager

Manager

Tony Madigan

ChIef exeCuTIVe / ChIef OffICer

Peter Akers

MfeSB BOArD PreSIDeNT

J A Elliott

Equipment & Resource Management

Executive ManagerAssistant Chief Fire Officer

Alan Quinton

Northern Zone

Executive Manager

A/Assistant Chief Fire Officer

Tony Westcott

Community Safety

Technical Department

Executive Manager

Jarrod Edwards

Media Production Services

Manager

Mike Hollander

Employment Services

Executive Manager

Kirstie Schroder

Facility Services

Executive Manager

Brian Coleman

Finance & Resource Budgeting

Executive Manager

Harry Wiedemann

Operational Communications

Executive Manager

David Rogers

Southern Zone

Executive Manager


Terry Hunter

Dangerous Goods

Executive Manager


Chris Watt

Ethical Standards

Manager

Murray Wilson

Fleet Management Services

Executive Manager

Robert Wilson

Financial Accounting


Brett Barclay

Operations Policy

Executive Manager


Trevor Perkins

Western Zone Executive Manager


Peter Holmes

Stuctural Fire Safety Executive Manager


Greg Bawden

Health & Safety

Executive Manager

Philip McInerney

Information & Comm. Services

Executive Manager

Neil Wheeler

Fire Equipment

Services

Executive Manager

Ean Caldwell

Communiy Safety Liaison Manager

Commander

Ian Danahay

Training & Education

Executive Manager


Peter Quinsee

Major Construction Projects


Charlotte Barty

Records Management

Acting Manager

Judith Gibson

Emergency Medical Response Manager

Commander

Andrew Zammit

Mechanical

Engineering Services

Executive Manager

Albert Lindner

Supply

Executive Manager

Elizabeth Bednarski

Planning & Research

Manager

Lyndsey Wright

Incident Management System

Executive Manager


Wayne Bradborn

Statutory

Contributiond

Manager

John Pantorno

review of operationsThe MFB is pleased to present the following report, which accounts for activities and achievements against the Corporate Action Plan 2005/06:

resource Sharing

The MfB objective for 2005/2006 was to extend the framework agreement with the CfA and the MfB to build upon resource sharing initiatives with a range of emergency service and other organisations by July 2006. This has been achieved and has seen the MfB strengthen and broaden our processes and endeavour to form partnerships with other organisations to enhance our value and level of service to the community.

There have also been secondments to the Victoria SeS, emergency Management Australia and Australasian fire Authorities Council (AfAC). In addition the MfB has continued to liaise with a number of external organisations and agencies to strengthen relationships for future activity.

The CfA and MfB actively pursue opportunities for partnerships on common issues and projects.

12MFB ANNUAL REPORT 05/06 12MFB ANNUAL REPORT 05/06

review of Operations: Minister for Police and emergency Services, the honourable Tim holding inspects the new Deer Park fire Station.

Joint coordinating committeeIn November 2004 the MfB and the CfA signed a Joint Activities Governance Deed (JAGD) to formalise arrangements relating to joint activities between the two services. The Joint Coordinating Committee (JCC) was then formed to oversee the progress of those activities and prioritise them if necessary. The JCC met three times during the year (on 22 August 2005, 12 December 2005 and 1 May 2006) under the chairmanship of Melanie raymond who accepted the chair when Julie elliott stepped down following her appointment as MfB President on 1 July 2005.

Committee members for the year were:

MfB CfA

Melanie raymond (Chair) robyn hale

Jennifer Sutton Michael Tudball

Peter Akers (CeO) Neil Bibby (CeO)

The Committee resolved a number of procedural and administrative issues:

• Chairmanship and secretarial support – it was agreed that the activities of the JCC should align with the financial years of both organisations and that Ms raymond should continue to chair meetings until 30 June 2006.

• A process was developed and approved for the initial consideration, approval, prioritisation and review of joint initiatives

• It was resolved that the parties should develop a joint annual report regarding the activities of the JCC which would be included in their respective organisational annual reports

• The establishment of boundaries (setting of authorities, roles and tasks) as part of the project management process

• A method for quantifying the benefits of resource sharing was developed

• Work was commenced on the development of a Business Case Template

• Working procedures were approved for reporting to the JCC and joint Boards

The JCC received reports from officers of both organisations on a range of joint activities and initiatives including five Mous signed off during the year with a further six under development. These Mous and other activities included:

• The development of a number of Mous detailing the understanding between the two fire services in relation to:

-The Joint Training framework -Marine response -reduction of false Alarms -Changes to the Operational Activities -Metropolitan Mobile radio (MMr)

• Terms of reference for a Board of Studies between the two services

• Joint community safety activities and the Joint Community Safety Agreement originally signed in April 2001

• urban Search and rescue protocols

• A range of joint information technology projects such as fireNet

• A Service Level Agreement for the investigation of contributor income

• use of reclaimed water

• Amendments to the MfB and CfA Acts

• Melbourne 50 Years On exhibition

review of operations


The “fireNet’ project has established a network based upon dark fibre secured by the MfB and shared with the CfA. The network provides super broadband networking to CfA selected sites and all MfB geographical points of interest.

In this second year of operation, the JCC continued to formalise and review the working relationship between the CfA and MfB. All existing joint activities were reviewed and assessed for their continued efficiency and effectiveness.

The “fireNet’ project has established a network based upon dark fibre secured by the MFB and shared with the CFA. The network provides super broadband networking to CfA selected sites and all MfB geographical points of interest.

Management investigated the sourcing of a comparable network by way of securing managed services for the 15-year term. This option was rejected on the basis that the costs, based on the existing Whole of Victorian Government purchasing scheme, were not affordable. That is, the network could incur significant cost to the Fire Services for the first 15 years to achieve the same connectivity to the same sites.

This connectivity has enabled the fire services to pursue the following business benefits:

IP Telephony - The MfB provides an integrated IP Telephony solution to CfA sites.

IP Conferencing - The fire services are investigating the merits of a conferencing solution with full desktop integration and are currently resolving issues for full integration across both agencies.

IP Television - The MfB has implemented IP television to the desktop and other managed devices within the desktop, with cross-agency integration issues currently under discussion.

Video on Demand - The MfB has implemented an online video library for distribution across the network. The cross-agency benefits of this are currently being investigated.


attendance ManageMent

The Attendance Management project goal is to ensure improved workforce availability by monitoring attendance and maintaining dialogue with employees to better understand their individual situations and determine appropriate approaches to facilitate their attendance.Throughout the year there has been a heightened awareness of attendance and absenteeism across the workforce, particularly on weekends. The MfB has continued weekly meetings on attendance, WorkCover and health and safety.

The Brigade Medical Service attended these meetings on a fortnightly basis to provide feedback on long-term and outstanding cases and the numbers of people who have undergone surgery, and to provide additional general information.

These conversations have led to a greater understanding of individual circumstances, enabling management to use every resource available to the MfB to assist employees attending work. The issue of attendance is discussed at every interaction including Station Officer meetings and visits to stations by management representatives.

There was an increase in days lost due to injury amongst operational staff and this is reflective of an ageing workforce. Strategies are being developed in consultation with the workforce to address this issue. The issue of attendance continues to be an organisational priority and a range of further strategies will be implemented during 2006/07.

leadership development

This project’s goal is to continue to help our people develop the competence and confidence to lead effectively in a modern and diverse community safety organisation.

The objective of this project is to ensure that the MfB has an effective leadership group capable of aligning the workforce to the corporate direction.

During the past year, the Board and CeO commissioned an organisational review, which was conducted by the Allen Consulting Group (ACG). however, the decision was made to extrapolate a number of issues from the ACG final report and include these in the environmental scanning as part of the Corporate Planning process. This process has led to the development of the Corporate Action Plan for 2006/07, with a strengthened focus on emergency response. Other aspects of the review have not been proceeded following a resolution of the board.

Activities conducted throughout 2005/06 include:

• Progress of Incident Management sessions presented to senior operational staff , with a number of workshops and training exercises conducted

• The process of nomination for courses and approval of tertiary study has continued. A revised selection and training process for operational promotional courses is being implemented as courses are programmed.

• 88 personnel completed tertiary studies during 2005/06

• 58 firefighters graduated from recruit courses

• 319 employees participated in skills maintenance programs

In addition, the inaugural Young Professionals Development Program was developed in recognition of the need to identify and develop future leaders. 14 personnel from all sectors of the organisation were identified to participate in the program.

The year long program provided the participants with the opportunity to develop new networks, share ideas and access a diverse group of presenters from the ‘not for profit’ sector of our community.

Certified Agreements

Our goal is to ensure we have working conditions and business practices we can all live with, and which enable us to deliver services efficiently and effectively.

Throughout much of 2005/06, lengthy enterprise bargaining negotiations took place.

On 19 April at the Australian Industrial relations Commission, the Operational Staff Certified Agreement was signed.

This Agreement is a ‘rollover’ of the previous agreement in that it has the same terms and conditions as the last enterprise Bargaining Agreement (eBA) but now includes all Commanders. Therefore harmonisation of the Commanders has now been achieved. This was a goal the MfB had been working towards for the past three years.

The Agreement includes wage increases for all operational staff.

The Corporate and Support Staff enterprise Bargaining Agreement was certified on 9 May.

This Agreement has introduced a coherent classification structure, which allows for all staff to progress in salary bands over the next 3-5 years. It also introduces descriptors and a new review process for position descriptions.

An annual career development discussion between staff and their immediate managers is a feature of the agreement. This process will assist in career planning for these employees.

A more comprehensive process has been implemented to enhance consultation associated with the introduction of change.



The Leadership Development project’s goal is to continue to help our people develop the competence and confidence to lead effectively in a modern and diverse community safety organisation.

Our goal is to provide all MfB personnel with a safe and healthy workplace by promoting a positive attitude to health and safety, an enhanced focus on fitness for work and to manage an aging workforce.

Safety culture at Work

The goal of this project is to provide all MfB personnel with a safe and healthy workplace by promoting a positive attitude to health and safety, an enhanced focus on fitness for work and managing an aging workforce.

Compliance with the Occupational health & Safety Act 2004 and associated regulations was maintained, with all proposed project work undertaken and completed.

The number of WorkCover claims increased by almost 5%, but time lost increased by 36%. WorkSafe participation continued in the MfB Occupational health and Safety (Oh&S) program and performance monitoring.

An enhanced Oh&S investigation and robust reporting system, the Intranet-based ‘reII’ system, was successfully trialled and is now being implemented.

Improvements were achieved in health promotion activities and participation in fitness assessment and injury management programs. Progress of the Universal fitness Activity Program was reviewed and improvements implemented, with a focus on activities suitable for an ageing workforce.

Introduction of new personal protective clothing for operational personnel has been subject to further review. It is anticipated that this important delivery will take place in early 2006/07.



embracing diversityThe MFB is continuing to develop a workforce which reflects, understands and respects the diversity of the community it serves.

In the past year, staff attended stage-two of the Diversity training program. Program participants included the executive Management Team, executive Managers, Commanders and Managers. Sessions were delivered across a broad range of MfB locations.

The firefighter recruitment strategy again focused on targeting recruitment to attain high quality candidates from a diverse community of applicants. This strategy has resulted in an increased number of women accessing the recruitment process.

The MfB also continued to support, and contribute to, the annual Women in Firefighting Conference.

risk Based community Safety planningThe goal is to ensure that our services meet the needs of the community. This is being achieved through the development of community safety plans tailored to meet local risks.

A pilot study was undertaken to implement a community safety log at selected fire stations. The pilot time frame was interrupted as a consequence of the industrial processes around the recent enterprise Bargaining Agreement. however, all pilot fire stations (Hawthorn, Bundoora, Ringwood and Deer Park) have now developed station plans which identify risks that need to be addressed.

response to these risks is divided into two categories of activity: preparedness and community engagement.

Preparedness includes site inspections, hydrant checks, evacuation exercises and smoke alarm battery replacement.

Community engagement includes fireed (school education programs), open days, displays and fire safety education of diverse groups.

Firefighters used the community safety log during the pilot to record the activities identified by the station plan.

Preliminary feedback has been positive with several staff recognising the safety log’s potentially broad use and linkages to other projects. Several users have suggested operational improvements to enhance operator use and log capability.

The log has proven to be easy to access and operate. Collection of the community safety log evaluation data has commenced and surveys sent to all Officers at the pilot stations. The evaluation process has been conducted through face-to-face feedback sessions and initial feedback is positive.

Through the evaluation process direct benefits for fire stations have been highlighted. The MfB Station Turnout System can now be used to store information from the site information worksheets. In the event details of an emergency are received from one of these address points, crews will be able to access critical information prior to their response to better manage the emergency.

The implementation of this project will be a priority during 2006/07. This program will further assist the MfB in its mission of “Protecting Our Community”.



The strategy of ensuring an increasing number of women accessing the recruitment process has been successful.

22

Burnley complex

This is a most exciting project for the MfB with the goal of providing an environmentally friendly, state-of-the-art training and community safety complex that will meet our needs now and into the future.

The Burnley Complex design demonstrates the MfB’s commitment to environmentally sustainable design, including water saving and ventilation initiatives. The complex will attain five-star rating in terms of environmental sustainability.

The complex is located at the Southern end of Burnley Street, richmond and will be the MfB’s new Training and Community Safety Complex with several other support departments also being located at the site.

MFB 2020

The key objective for the 2020 Project is to develop a clear vision of what a relevant and effective MfB will look like in 2020, together with a plan for achieving this.

A project plan was prepared and approved by the Board. This has been revised and approved as part of the 2006/07 Corporate Action Plan and will be modified through further consultation with the United Firefighters Union (UFU).

Preliminary research has been undertaken into the issues that may have an impact on the MfB in the future. It is expected that this material will be a catalyst to further expand our research during 2006/07.

It is recognised that ufu/workforce commitment to the future shape of the organisation is critical to successful implementation. In this respect it is pleasing that the ufu has agreed in principal that this project should be undertaken as a joint initiative to be commenced early in the implementation of the current eBA.


MFB ANNUAL REPORT 05/06

The key objective for the 2020 Project is to develop a clear vision of what a relevant and effective MfB will look like in 2020 with a plan on how to achieve this.

commonwealth games

The Commonwealth Games were held in Melbourne in March 2006 bringing an influx of 40,000 international visitors and 50,000 interstate visitors to the City. The MfB role during the 12 days of the Games mainly focused on access and security issues.

The MfB, in collaboration with the other emergency Service Organisations, assisted in emergency management planning for the Games.

The majority of the sporting events were conducted inside the Metropolitan fire District and of the 17 participating venues, ten were located within a 10 kilometre radius of Melbourne’s CBD. Of this group, there were 5 main venues - the MCG; Vodaphone and rod Laver Arenas, Melbourne exhibition Centre and the Melbourne Sports and Aquatic Centre.

In addition to these major venues, the MfB was also responsible for a number of public domain areas and precincts such as the Athletes’ Village, Tullamarine Airport, the St Kilda foreshore and Melbourne’s parks and gardens.

exercise trident

exercise Trident was conducted on 4 December 2005 in the Melbourne underground rail Loop (MurL) as part of the planning and preparation for the Commonwealth Games.

Trident was a multi-agency exercise designed to test the state’s crisis and consequence management capability. The exercise was initiated by the Premier of Victoria, in response to the London underground rail bombings during July 2005. It was established to test emergency service organisations’ preparedness for the Melbourne Commonwealth Games.

The exercise was conducted at flagstaff rail Station in Melbourne and involved some 70 MfB operational and corporate staff, along with personnel from Victoria Police, Metropolitan Ambulance Service, Victoria State emergency Service, St. John Ambulance, red Cross, Department of Human Services, Department of Infrastructure, Office of the emergency Services Commissioner, Department of Justice and Connex Melbourne.

The scenario involved an explosion and fire on a train that was carrying approximately 75 passengers. The MfB’s roles included fire suppression, extrication and evacuation of injured passengers.

The exercise not only tested first responders’ capabilities but also tested the ability of the hospital system to cope with receipt of large numbers of casualties. The exercise also tested liaison between the participating emergency service organisations.

case study highlights- PLANNING, PrePAreDNeSS AND reSPONSe

The following three examples highlight the MfB’s commitment to ensuring that Melbourne is one of the safest cities and communities in the world. These examples reflect the skill and competency of MFB firefighters and the professionalism of the organisation in terms of planning, preparedness and response.


Moorabbin Factory Fire april 2006

In April, the MfB attended what media have described as this decade’s biggest fire, a factory blaze in Moorabbin that required approximately 160 firefighters (115 MFB staff and 48 CFA staff) and 45 fire trucks (28 MFB and 17 CFA vehicles) to ensure the safety of the surrounding community and area.

On arrival, MFB crews found an extensive fire had engulfed an industrial area approximately 10,000 m² in Melbourne’s South-east.

Fire spread quickly due to the high fire load and combustibility of factory contents. The fire destroyed five buildings and another structure was partially lost, with a number of other buildings significantly damaged. Local businesses were evacuated as a precautionary measure. The blaze took some three hours to bring under control because of the severity of the fire.

early action was taken to minimise the impact on the local community from the large black and potentially toxic plume of smoke. Major commercial and residential occupants downwind of the fire were contacted and advised to close windows and doors and shut off air-conditioning systems. These included establishments such as the Kingston Centre, Monash Medical Centre and Moorabbin Airport. The message of staying indoors with air-conditioning turned off was also provided to the media for general broadcast.

MFB scientific officers attended particular risk areas such as the Kingston Centre to test for any exposure to combustible products. A remote area sensor was installed and MFB scientific officers continued to monitor the area.

The estimated cost of the blaze was in excess of $ 30 million, and the cause has been attributed to faulty copper wiring in one of the factory sites.

This fire served as a strong warning to businesses about the need to take greater care when installing fire prevention devices. It also highlighted the need for sprinkler systems to be mandatory for large-scale industrial sites, in order to prevent a similar fire in the future. This is an issue that the MFB will continue to voice in its effort to influence safer building codes and regulations in Australia.


recruitment Last year saw the introduction of an on-line firefighter recruitment process. This year the MfB further developed this recruitment process through the introduction of a continuous selection process. early indications are that the continuous recruit firefighter selection process has been well received by applicants.

Feedback has been positive in relation to the level of flexibility provided by the continuous process, which allows applicants to better manage their preparation for the various aspects of the selection process.

The new approach creates an ongoing pool of suitable applicants.

The recruitment marketing focus remains on diversity, promoting a career with the MfB to women and people from indigenous and culturally and linguistically diverse backgrounds. future advertising will continue to specifically target these groups.

Service award activitiesThere were 266 Long and Good Service awards distributed.

Mfb Staffing Statistics

MFB Staff as at 30.06.2006

Operational employees 1606

Corporate employees 251

Temporary employees 50

Trainees and Apprentices 25

total employees 1932

gender

Male 1747

female 185

total employees 1932

our people

09 MFB ANNUAL REPORT 05/0625 MFB ANNUAL REPORT 05/06

The recruitment marketing focus remains on diversity, promoting a career with the MfB to females and people from indigenous and culturally and linguistically diverse backgrounds.

training and educationThe MfB, as a registered Training Organisation (rTO), continues to provide a wide range of accredited and non-accredited training programs to all MfB staff. The Training and education Department maintains a collaborative and proactive approach to the design, development and delivery of all courses and strives to improve its products and services for all MfB staff. This role extends to the provision of professional development advice and assistance.

This year has seen the successful delivery of several major training initiatives including:

• The Metropolitan Mobile radio (MMr) training program delivered across the organisation to all operational firefighters and selected technical services staff

• The SAP training and events module has been progressively implemented within Training and education and will for the first time provide the MFB with a centrally managed, comprehensive and integrated training records management system

During the year, the Training and education Department has also provided Recruit and Leading Firefighter programs, as well as skills acquisition and development programs in the operation of various pumping and other firefighting equipment, uSAr and road Accident rescue. It is also implementing an improved regime for the practice and maintenance of these skills.

In addition four multi-agency uSAr courses were conducted throughout the year, involving the MfB, CfA and Victoria SeS.

Training and education continued to proactively identify and establish training partnerships and resource sharing opportunities with other emergency service organisations in Victoria and nationally through a number of new and established training forums.

occupational Health & Safety This year was the third of five in the Safety Culture at Work Project. Deliverables for 2005-06 were:

• Compliance with the Oh&S Act 2004 and associated regulations

• enhanced investigation and reporting system

• Enhanced health and fitness programs

• reduction in number of days lost through work-caused injury

• New personal protective clothing for operational staff.

The project was well supported by a range of Oh&S plans delivered, at corporate, directorate and department levels. The breadth and robustness of the plans and associated management systems and activities is subject to assessment by an internal audit program, by external audit under AS/NZS 4801 (Oh&S Management Systems), and by WorkSafe, which continues its monitoring of MfB Oh&S performance.

Certification for the MFB against AS/NZS 4801 was first achieved in June 2005. The MFB is the only fire service in Australia or New Zealand to achieve certification. Eligibility for continuing certification is assessed during six-monthly external audits. Two audits were conducted during 2005-06. The auditors noted good progress in a range of areas and no non-conformances were reported. Although the external audit process can be quite demanding, the MFB is confident that it contributes to the maintenance of good performance in its Oh&S Management System. The next stage is for this audit program to become more closely aligned with the ISO 9001 (Quality) audit program across the MfB.

WorkSafe surveillance of MfB Oh&S performance continued. Work progressed during the year to establish a shared understanding of priority areas for attention and improvement.

employees and their representatives were closely involved in all areas of Oh&S development. This involvement is supported by a range of formal working parties and committees and by one-day seminars conducted for employee and management Oh&S representatives.

Good progress was made in exposure control issues, including the Station and Appliance hygiene program and a review of Standard Operating Procedures for use of breathing apparatus and P2 facemasks, and prevention of exposure to asbestos.


our people

The implications for the MfB of the Oh&S Act 2004 continued to be reviewed. The MfB joined with other emergency services in contributing to WorkSafe’s Compliance framework Program (review of Regulations made under the OH&S Act). Significant contributions were made to the review of the Prevention of falls Regulations and Confined Spaces Regulations.

fireground risk management (including Oh&S Act compliance) has been enhanced by the introduction of a more formal Dynamic risk Assessment (DrA) process. The process adopted is similar to that undertaken by united Kingdom and New Zealand fire services and has also been implemented by a number Australian fire Services, including the CfA. Adopting a common risk assessment methodology will further enhance the seamlessness of joint CfA/ MfB operational activities. DrA training has been provided to all senior operational officers and is scheduled for the remainder of operational staff during 2006/07.

Considerable work continued in the implementation of the OH&S Manual Handling, Hazardous Substances and Prevention of falls regulations, and the establishment of relevant risk assessment registers.

The new reporting of exposures, Incidents and Injury electronic system (REII) has been significantly enhanced as a result of user feedback. following various trials the system has been well received and will be implemented across the MfB during the remainder of 2006 and early 2007.

health and fitness programs continue to be supported. A series of evening presentations was made for Southern Zone employees, which resulted in considerable demand for individual fitness assessments. These presentations are to be extended to other Zones during the coming year. Progress in the full range of health and fitness programs was reviewed during the year and some structural changes were made to ensure more consistency and reliability in the future.

The employee Support Program continues to deliver good services to employees and their families. unfortunately an employee survey to identify areas where additional help is required was not supported by the ufu.

The WorkCover experience was disappointing. A significant number of long-term claims were incurred. In some cases, achieving a successful return to work is proving very challenging. Data analysis indicates a relationship between increasing age and increasing time lost through injury. A review of MfB WorkCover and return-to-Work arrangements is being conducted.

The introduction of new protective clothing for operational staff has not yet been achieved.

MFeSB Health and Safety performance 1st July till 30th June

Workcover claims lost-time injuries days lost*

Severity rate (Average days lost per lost-time injury)

corpstaff op. Staff total corpstaff op. Staff total corpstaff op. Staff total corpstaff op. Staff total

2003/04 22 298 320 8 148 156 138 1869 2007 17.3 12.6 12.9

2004/05 24 321 345 10 177 187 343 2468 2811 34.3 13.9 15

2005/06 26 335 361 10 188 198 216 3607 3823 21.6 19.2 19.3

WorkSafe surveillance of MfB Oh&S performance continued. Work continued during the year to establish a shared understanding of priority areas for attention and improvement.


* There was an increase in days lost due to injury amongst operational staff and this is reflective of an ageing workforce. Strategies are being developed in consultation with the workforce to address this issue.

AwardsVictorian Firefighting Industry Employees Interim Award 2000

Metropolitan fire and emergency Services Board Administrative Officers, Professional Engineers and Support Staff Award 2000

Metal, engineering and Associated Industries Award 1998

Metropolitan fire and emergency Services Board, Commander Interim Award 2002

Enterprise AgreementsMetropolitan fire and emergency Services Board and united Firefighters Union Operational Staff Agreement 2005

Metropolitan fire and emergency Services Board, Administrative and Operational Support Staff Agreement 2005

Union RepresentationAssociation of Professional engineers, Scientists and Managers, Australia

Australian Food, Metals, Engineering, Printing and Kindred Industries union

Australian Services union

National union of Workers

United Firefighters Union

industrial relations


Australian Fire Service Medal (4 Awarded) To:• Station Officer Rodney Harris

• Leading Firefighter Christopher Smith

• Station Officer Philip J Cuthbert

• Leading Firefighter Bryan J Robertson

Chief Officer’s Certificate Of Commendation (4 Awarded)• The crew of Pumper 23 “D” Platoon:

Senior Station Officer Paul Shannon,

Leading Firefighter Ian Barnes,

Leading Firefighter Peter Killick &

Firefighter Jonathon O’Driscoll

In recognition of the professionalism, dedication and team spirit they demonstrated when attending a call on 22 March 2006, where a female had suffered a gunshot wound. The severity of the situation was further compounded by the fact that the whereabouts of the offender was unknown. The prompt and unselfish actions of these members during an event that was outside their experience and expertise, combined with their willingness to expose themselves to the associated dangers in order to save the life of another, reflects great credit to them as individuals and to the MfB as a whole.

Executive Officer’s Certificate Of Commendation (2 Awarded) Awarded To:•Senior Records Officer - Judith Gibson

In recognition of her personal and professional contribution to the implementation of a robust records management system in the MfB; particularly through gaining the control of all hard copy records. her ability to manage a number of work groups and liaise with staff from all departments has resulted in more than 30,000 inactive files being registered and archived and approximately 20,000 new files being created.

•Dangerous Goods Dept. Administration Manager - Monica D’Cunha

In recognition of her personal and professional contribution to the Community Safety Directorate, and her commitment and dedication in organising and coordinating the Directorate’s maintenance of corporate governance compliance in the areas of Oh&S, Quality Systems, risk Management and Business Continuity ensures the Community Safety Directorate operates in a professional and safe environment.

national Medal:• 32 personnel were nominated for the award of the National

Medal recognising 15 years’ diligent service.

• 17 personnel were nominated for the award of the 1st Clasp to the National Medal recognising 25 years’ diligent service.

• 11 personnel were nominated for the award of the 2nd Clasp to the National Medal recognising 35 years’ diligent service.

Honours and awards for the period - 2005/2006


The Burnley Complex, when complete, is expected to attract much industry interest for its initiatives and will be amongst the first buildings to be awarded a Green Star Certified Rating by the Green Building Council of Australia.

The MfB continuously assesses its environmental performance and the environmental Monitoring Committee continues to investigate and implement environmentally friendly initiatives.

environmental messages have been included in a wide range of organisational communications and strong support has been received from many staff members.

The MfB is working in conjunction with other organisations, including AfAC,

CfA, DhS, DSe and the New South Wales fire Brigade, on environmental projects dealing with the use of recycled water and various environmental impacts of fire services’ activities.

The MfB has commissioned an environmental audit, which will be completed by December 2006. This will provide the MfB with a strategy for long-term continuous improvement in environmental performance.

energy usageThe MfB is making improvements to lighting at a number of its high-usage facilities to conserve energy and reduce greenhouse emissions.

Fire Stations The solar hot water installation program has continued, with a total 13 sites now utilising solar energy to preheat water prior to it entering the domestic hot water units. About 28% of the program has been completed across the fire stations

Internal lighting control has been installed at the epping and hawthorn fire Stations. This system turns off all the internal lighting (excluding security and emergency lighting) when the station is left in an uncrewed status; all lights revert to their previous state when crews return.

Building Management System (BMS) have been fitted to approximately 40% of fire stations, providing better temperature control to users and enables remote monitoring to assist in more timely fault diagnosis, thereby providing improved efficiency.

Controls of bedroom air-conditioners at a number of fire stations have been modified to prevent the units from operating during the day.

MFB and the environment


MFB vehiclesThe focus on emissions from passenger cars is shifting from LPG as improved fuel consumption in petrol-driven vehicles makes the benefit marginal. Hybrid vehicles are continuing to be specified with 5 Toyota Prius now in the fleet.

The fire appliance fleet continues to change over to the higher, level euro 3 exhaust emission standard. It is anticipated that 46 units will be euro 3 standard by end of the 2006/07 financial year.

fuel canister trials were completed on diesel engines with high soot emissions, with some success. These vehicles are now being replaced by new, euro 3 standard appliances.

underground fuel storage at Oakleigh and Sunshine has been decommissioned to avoid any future environmental impact.

The rollout of long-life transmission lubricants is nearing completion, with only 4 appliances remaining to be converted. This provides benefits in terms of reduced landfill and waste oil.

future initiatives will see the investigation of synthetic engine oils, an investigation into fuel stores at eastern hill and the introduction of euro 4 (ADr80/01) diesel engines.

All engine oil and radiator fluid is collected from the MFB Workshop and removed by contractors holding ePA licences

the Burnley complexThe Burnley Complex demonstrates the MfB’s commitment to environmentally Sustainable Design (eSD). The project, when complete, is expected to attract much industry interest for its initiatives and will be amongst the first buildings to be awarded a Green Star Certified Rating by the Green Building Council of Australia. The star rating is determined on the number of eSD initiatives, which are incorporated into the building design including energy and water efficiency, materials and land use and ecology.

A 5 Star Green Star Certified Rating recognises “Australian excellence” in eSD design.

As at the end of June 2006, construction of the Burnley Complex was 60% complete, and assessment by the Green Buildings Council nearing completion. The MfB hopes to achieve the 5 Star Green Star Certified Rating.

The Burnley Complex will showcase a number of initiatives:

• AAA rated sanitary ware

• Water recycling for the purpose of firefighter training

• Waterless urinals

• Atria that act as ‘thermal chimneys’, where air is drawn from the offices into these spaces and then up and out of the building through mechanical louvres

• Mixed-mode natural ventilation, where areas are ventilated through automatically operated openings in the façade for cooling and ventilation whenever external conditions permit. This delivers energy savings. At other times, a ducted 100% fresh air system provides internal thermal comfort

• Day lighting is maximised in design to penetrate deep into the building floor plate, thus reducing energy costs through lighting requirement

• The floor slabs have cylindrical voids which will pump/supply hot or cold air throughout the building. The thermal mass of the slab generates better coolth (overall heating up and cooling down of the slab mass) to the air being pumped through it, as well as providing better insulation. This reduces the size of the cooling plant and substantially cuts energy consumption. The MfB will be only the second building in Victoria to use this technology

deer park Fire Station no. 43Deer Park was the first of the new generation fire stations that was designed to reduce energy usage. Its special features include:

• Living areas are oriented mainly to the north for winter warmth from the sun to reduce the requirement for heating

• Windows are double-glazed with high performance glass, and are timber framed which improves insulating ability above that of aluminium

• energy saving measures include a solar boosted gas fired hot water system, energy efficient appliances and harvesting of rainwater run-off from the roof via above ground tanks for use in irrigation of the garden beds and also for use in cisterns

• All habitable areas are provided with thermostatically controlled air- conditioning units. however, low-level operable awning windows are provided to living areas to allow the ingress of cool air at the discretion of the occupants of each room. Reed switches are fitted to these windows so the air-conditioning is turned off automatically when the windows are opened


MFB and the environment

MFB Wheelers Hill Fire Station no. 31The building envelope differs from conventional construction in that it is insulated to a very high degree, and also has an unusually high thermal mass. This has the effect of reducing the heat load on the interior of the building and moderating the temperatures within the building throughout the year.

Other technologies utilised are

• Living areas are oriented mainly to the north for winter warmth from the sun and to therefore reduce the requirement for heating

• Windows are double-glazed with high performance glass, and are timber framed which improves insulating ability above that of aluminium

• Materials have generally been selected in consideration of their embodied energy as well as their functional qualities. for example, nylon ‘flotex’ carpet is used because of its high wear characteristics and low embodied energy

• energy saving measures include a solar boosted gas-fired hot water system, energy efficient appliances and harvesting of rainwater run-off from the roof via an underground tank for use in irrigation of the garden beds and also for use in cisterns

• Automated lighting systems are provided which are high performance T5 lights using very low energy levels

• All habitable areas are provided with thermostatically controlled air- conditioning units. however low level openable awning windows are provided to living areas to allow the ingress of cool air at the discretion of the occupants of each room. Reed switches are fitted to these windows so the air-conditioning is turned off automatically when the windows are opened

• The lecture room, Station Officer’s office and entry, kitchen, firefighters’ mess, corridor and gymnasium are each provided with a split-ducted reverse cycle air-conditioning system with an outside air economy cycle. During winter the heating process will return warm air drawn from the top of each thermal chimney. During the summer, or when heating is not required, return air will be drawn through a ceiling grille

• Motorised sun shades are provided to shade the outside of the thermal chimneys and cause the windows to close whenever refrigerated cooling is called for from any of the units described above

• The two prominent thermal chimneys have the effect of drawing air from the occupied spaces, up the chimneys and exhausting outside, which prompts airflow through any windows, which have been opened. The chimneys are automatically shaded with external sunscreens in the hotter months. All aspects of this airflow system are automatic.

recycling The fully co-mingled recycle program has been in operation at all sites during this period following its improvement from cardboard/paper recycling in 2004/2005.

The MfB has progressed well in moving from new to recycled paper for general office use.

In January 2005, the MfB commenced trialling the use of recycled paper. That month, only 3% of paper purchased by the organisation was recycled paper. This initiative has been extremely successful and during 2005/2006, 72% of paper purchased was recycled paper.

Practices have changed in the MfB through strong encouragement to be environmentally conscious, resulting in significant double-sided document printing.

empty printer cartridges are also collected for remanufacture.

reusingThe MfB and its staff supported a number of foreign aid organisations during 2005/2006. Computer equipment, excess and decommissioned firefighting uniforms (gloves, boots, jackets, over trousers and wildfire tunics) and canvas hoses were donated to needy organisations overseas.

The MfB continues to donate pre-used computer equipment to a not-for-profit organisation for the benefit of disadvantaged Australians. This organisation recycles personal computers so that they are refurbished and repackaged into usable Internet-ready computers and then made available to low-income communities, individuals and community organisations.


The MfB has commissioned an environmental audit, which will be completed by December 2006. This will provide the MfB with a strategy for long-term continuous improvement in environmental performance.

responsible MinisterThe responsible Minister is the Minister for Police and emergency Services.

particulars, Functions and powerThe Metropolitan fire and emergency Services Board (MfB) is a statutory body corporate, incorporated in Victoria pursuant to the Metropolitan fire Brigades Act 1958 (Vic) (‘the Act’). MfB derives its operational powers from this Act, the Metropolitan fire Brigades (General) regulations 2005, the Metropolitan fire Brigades Board (Contributions) regulations 1999 and other legislation. The Board’s principal decision-making powers affecting members of the public are contained within the Act and the regulations, and they should be referred to when detailed information is sought.

MfB’s headquarters is located at 456 Albert Street, east Melbourne Victoria 3002, Australia.

changes to governing legislationThe MfB is currently undertaking a review of the Metropolitan fire Brigades Act 1958.

The Metropolitan fire Brigades (General) regulations 2005 were assented to on 25 October 2005.

the BoardThe Board is responsible for the overall corporate governance of the organisation including its strategic direction, establishing goals for management and monitoring the achievement of these goals.

composition of the BoardThe composition of the Board (determined in accordance with the Act) allows for up to seven members to be appointed by the Governor in Council, one of who is to be appointed as, President of the Board, and another as Deputy President.

Board members in office for the year were Ms J A elliott (President), Mr G T Lake, Ms M J raymond, Mr I O Spicer and Ms J f Sutton. Mr S Aziz was appointed as a Board member on 20 September 2005. Ms J Sutton’s term of office expired on 30 June 2006.

On 20 June 2006 Mr. I Spicer was appointed Deputy President and Ms

C C Andrades and Ms J A Bonnington were appointed as Board members. These appointments became effective on 1 July 2006.

The Board met on 12 occasions in 2005/2006 including a joint meeting with the Country fire Authority (CfA) Board during December 2005. executives and operational staff are invited to Board meetings when required for discussions on relevant agenda items.

Conflicts of InterestThe Board complies with the provisions of Section 21 of the Act, which ensures that members of the Board and executive Management Team do not place themselves in a position where there is conflict, actual or potential, between their private interests and the duty owed to the MfB. The Corporate Secretary maintains a register of members’ interests.

ethics All Board members and staff are required to act with the highest integrity in the performance of their duties. The MfB Board and executive Management Team are committed to the promotion of the Public Sector Values and employment Principles as set out in Section 7 of the Public Administration Act 2004.

Board Member educationAll Board members have the opportunity to visit MfB facilities and meet with management and operational staff to enhance their understanding of key operational issues and business operations. The Board has a formal induction program for new Board members covering the nature of the business, financial management, key performance indicators, current issues, corporate strategy and the expectations of the Board concerning performance of Board members. Board members have also attended seminars/conferences on current operational and governance issues.

independent professional adviceBoard members have the right, in connection with their duties and responsibilities, to seek independent professional advice at the MfB’s expense. The prior approval of the President is required. Information so obtained by any member of the Board is to be shared with all members of the Board.

corporate governance Statement


This statement outlines the MFB’s current Corporate Governance practices.


evaluation of Board’s performanceThe Board has an annual planning meeting at which it assesses its performance.

Board committeesDuring the year the Board undertook a review of the Board Committee functions and responsibilities. At the March 2006 Board meeting, the Board resolved to disband the Governance and Community Protection Committees and to establish two new Board Committees, the Governance and risk Committee and the Audit Committee, with effect from 3 April 2006. Both committees have written charters and operating procedures approved by the Board. The committees report to the Board after each committee meeting.

The Board also resolved that community protection was regarded as core business of the MfB and that all community protection issues would be included in the agendas for Board meetings.

The Board acts as the executive remuneration Committee when required.

governance committeeDuring the financial year, and until 2 April 2006, the membership of the Governance Committee was as follows: Ms J elliott (Chairman), Mr S Aziz, Mr G Lake, Ms J Sutton, Ms M raymond, and Mr I Spicer.

community protection committee

The Community Protection Committee did not meet during the financial year and all community protection matters were included in Board agendas.

governance and risk committeeThe role of the Governance and risk Committee is to provide the Board with assurances that there are adequate processes in place, within the area of responsibilities, for:

• Effective identification and management of risks;

• Timely, informative and reliable reporting to stakeholders;

• Compliance with laws and regulations;

• Maintenance of reliable systems of internal control; and

• Development of strategy to enable the Board to meet its obligations in the foreseeable future.

following its establishment, the membership of the Governance and risk Committee was as follows: Mr G Lake (Chairman), Ms M raymond and Ms J elliott (ex officio).

All members of the Governance and risk Committee are Board members who are non-executives and independent.

audit committeeThe role of the Audit Committee is to provide the Board with assurances that there are adequate processes in place, within the area of responsibilities, for:

• Effective identification and management of financial risks;

• Reliable financial reporting;

• Compliance with laws and regulations;

• Maintenance of reliable systems of internal financial control; and

• Development of strategy to enable the Board to meet its obligations in the foreseeable future.

The Audit Committee meets regularly with the internal and external auditors. The Chief Executive Officer and the Director of finance and Administration attend Audit Committee meetings by invitation, and other senior executive staff at the discretion of the Committee.

following its establishment, the membership of the Audit Committee was as follows: Ms J. Sutton (Chair), Mr I Spicer, Mr S. Aziz and Ms J elliott (ex officio).

All members of the Audit Committee are Board members who are non-executives and independent.

Board Meeting attendance 2005/2006

Board Meetings 2005/2006 J elliott i o Spicer J F Sutton M raymond g lake S aziz

1 August 2005 P P P P P *


26 September 2005 P P P P P -

31 October 2005 P P P P P P

28 November 2005 P P P P P -

19 December 2005 P P P P P P

23 January 2006 P P P P P P

27 february 2006 P P - P P P

27 March 2006 P P P P P P

1 May 2006 P P P P By Phone P

29 May 2006 P P P P P P

* Mr Aziz was appointed to the Board on 20 September 2006 P = Present

governance committee attendance 2005/2006

governance committee 2005/2006

J elliott i o Spicer J F Sutton M raymond g lake S aziz


31 October 2005 P P P P P P

19 December 2005 P P P P P P

27 february 2006 P P P P P

* Mr Aziz was appointed to the Board on 20 September 2006

governance and risk committee attendance 2005/06

governance & risk committee

J elliott M raymond g lake

29 May 2006 P P P

audit committee attendance 2005/2006

audit committee J elliott i o Spicer J F Sutton S aziz

1 May 2006 P P P P



This statement outlines the MFB’s current Corporate Governance practices.


Joint coordinating committeeThe Joint Activities Governance Deed entered into by the Boards of the MfB and CfA in October 2004 established a Joint Coordinating Committee with representation from both organisations. It was agreed by the MfB and the CfA that a member of the MfB Board would chair the Committee in the first year of its existence and manage its administrative arrangements.

During the year under review, Ms M raymond, Ms J Sutton and Mr P Akers represented the MfB on the Joint Coordinating Committee. from 1 July 2006, the Committee will be chaired by a CfA Board member.

for information on the activities of the Joint Coordinating Committee, please refer to the text on page 13.

internal controlThe Board acknowledges that it is responsible for the overall internal control framework of the organisation, but recognises that no cost effective internal control system will preclude all errors and irregularities. To assist in discharging this responsibility the Board has instigated an internal control framework that can be described as follows:

• Corporate Plan - the performance of the

organisation in the delivery of the corporate objectives is monitored by the Board throughout the year;

• financial reporting - there is a comprehensive budgeting system with an annual budget approved by the Board and the Minister. Monthly actual results are reported against budget and revised forecasts for the year are prepared regularly;

• Investment appraisal - the organisation has clearly defined guidelines for capital expenditure. These include measurement against corporate objectives, annual budgets, detailed appraisal and review procedures, and levels of authority; and

• Corporate policies - major new policies and amendments to existing policies are approved by the Board and communicated to all employees.

Statement on Merit and equity principlesThe MfB is an equal opportunity employer.

In partnership with an external provider, an equal opportunity information program has been delivered to on-shift operational staff at fire stations. The program is designed to provide staff with a simple and clear message about a wide range of issues associated with merit and equity in the workplace. The MfB has a commitment to

ongoing education in matters relative to merit and equity in the workplace.

This year, a new initiative has been implemented whereby there have been discussions with operational personnel regarding workplace behaviour and respect for individual differences.

Social responsibilityrefer to text on page 12 “Year in review” and page 32 “MfB and the environment”, for details of our social responsibility initiatives.

consultancies

consultant the allen consulting group

project Senior Management review

total approved project Fee

$172,415

expenditure 2005/2006

$172,415

Future expenditure

0

In addition, a further five consultancies where the total fees payable to the consultant were less than $100,000, were engaged during the financial year at a total cost of $51,472.

disclosure of Major contract complianceDuring the year 2005/2006, no contracts with a value greater than $10m were entered into by the MfB.

All other contracts with a value of $100,000 and above however are placed on www.tenders.vic.gov.au in accordance with Victorian Government Purchasing Policy.

risk Management Support from across the organisation continued to enhance a culture of improved risk management. A major risk management software upgrade was achieved, a risk Management Coordinator was appointed and sixteen risk facilitators drawn from across directorates were trained to facilitate the identification of risks and the inclusion of these in the new risk register.

The introduction of an intranet-based risk register reporting facility permits the consolidation of risks from multiple sources, e.g. business/strategic plans, projects and action plans, and the generation of progress/status reports on risk mitigation strategies. Integration of the MfB’s Internal Audit Program with the risk register has commenced and will continue into the coming year. This initiative facilitates the alignment of audit findings with existing risk profiles allowing the prioritisation of objectives and the allocation of resources to areas of greatest risk

exposure. risk-registers are reviewed monthly ensuring system-generated reports are current, relevant and timely.

The MfB’s commitment to risk management initiatives extended to a partnership with an external provider to investigate the opportunities of further risk reductions through the alignment of business process risk functions. recommendations from this report are under consideration.

insuranceThe organisation’s insurance portfolio is managed through the Risk Management Office ensuring risk-based decisions influence the management of insurable risks. The annual review of the organisation’s insurable risks, conducted during the last quarter of each financial year, again confirmed the currency and adequacy of the Board’s insurance portfolio.

Across the organisation many safety and training initiatives relating to the management of assets, security, community and staff safety had direct insurance consequences, contributing again this year to an excellent claims profile. For the sixth successive year, motor vehicle claims were within the self-insured retention limits with the number of reported accidents reducing by 22%.

MfB involvement in community and public events continues to increase. Whilst these activities are an essential element in seeking to achieve the MfB’s vision of ‘Contributing to making Melbourne one of the safest communities in the world’, they potentially expose the MfB to increasing public liability claims. events management strategies have proven an efficient exposure control with no claims being lodged during the past financial year.

The intranet-based guidelines relating to event management are available on the Community Hazard and risk Matrix (ChArM) and, since the introduction of fibre optic technology in the MfB during 2005/2006, this information is now readily available at all fire stations. A review and expansion of available information, to meet the emerging demands of community engagement, will be conducted during the forthcoming year.

A decrease in premiums of approximately 12% was achieved for the second successive year, reflecting positively on performance across the MfB in the management of insurable risk.

Quality ManagementThe MfB achieved Quality Certification of all fire stations in December 2005 to the standard AS/NZS ISO 9001:2000 Quality Management Systems – Requirements. This led to certification of the entire organisation being achieved. The MFB is the first fire service in Australia and New Zealand to have achieved quality system certification.

The management system continued to be further developed, implemented and maintained as new improvements were introduced to enhance service delivery. The MfB networked with emergency service organisations such as MAS, CfA, eSTA and rAV to share information and business improvement initiatives. It also participated in activities run by the Victorian Public Service Continuous Improvement Network, chaired by the Chief Commissioner of Police Christine Nixon.

The MfB Intranet site continued to mature and integrate and provided links to areas such as the Corporate Action Plans and progress reports, business plans, MfB policies, organisational and departmental procedures, organisational charts and audits.

Progress has been made towards integrating common business management system elements in quality with those in health and Safety and risk.

complianceThe Board endorsed the commencement of the legal compliance project in february 2003. Phase 1 involved a review of the MfB’s compliance with the Metropolitan fire Brigades Act 1958, the Metropolitan fire Brigades (General) regulations 2005, and the Metropolitan fire Brigades (Contributions) regulations 1999. This was completed on 3 October 2003. Phase 2, implementation of Phase 1 recommendations, has been completed and Phase 3 is continuing. This is an analysis of legislation where, although the MfB is currently compliant, any non-compliance may have serious consequences. It is intended to ensure that staff awareness and knowledge of this legislation is evaluated, updated where necessary and maintained.

victorian industry participation policy act 2003The Victorian Industry Participation Policy applies when contracts greater than $3m in the metropolitan area are entered into.

During the 2005/2006 year, no contracts reaching this amount were entered into by the MfB.




2005/06 Foi StatisticsDuring the year the MfB received 347 requests for access to documents under the freedom of Information Act. In addition, requests were carried over from the previous year.

Processing requests 347

Access granted 338

Documents did not exist (Requests for copy of CFA fire report)

3

Applicant did not proceed Nil

Not finalised 0

appeal avenues:

Internal review None

Appeals to VCAT None

Building regulationsThe MfB undertook a comprehensive building and property audit by a registered Building Surveyor in 2005. The MfB property portfolio meets the compliance requirements of the Building Act 1993.

national competition policyThe The relevant part of the policy contained in Part IV (restrictive Trade Practices) of the Trade Practices Act 1974 has been implemented within the MfB Activities of the Board affected by the Victorian Government’s Competition Neutrality Policy have been identified.

Freedom of information act 1982The Chief The Chief Executive Officer, Mr Peter Akers, is the Principal Officer for the purpose of administering the requirements of the freedom of Information Act 1982. The authorised officer is Ms Jan Smith, freedom of Information Officer.

accessrequests to the Metropolitan fire and emergency Services Board for access to documents under the freedom of Information Act 1982 must be made in writing and addressed to:

Freedom of Information Officer Metropolitan fire and emergency Services Board 456 Albert Street eAST MeLBOurNe VIC 8002

each application must clearly identify the documents sought and be accompanied by a $21.00 (as at 1 July 2006) application fee. General enquiries relating to freedom of Information can be made, by contacting the freedom of Information Officer on telephone 9662-2311 between 8.30am and 4.50pm, Monday to friday.

enquiries in relation to the information required to be published and made available to members of the public in accordance with Sections 7, 8 and 11 of the freedom of Information Act should be directed to the freedom of Information Officer.

The Board uses a computerised file management system for reports of fires and other incidents. The Board also uses other on-line computer systems in managing financial, human resource and other operational activities associated with the running of the business.

The Acting Corporate The Acting Corporate Secretary, Ms elaine Stewart is the Protected Disclosure Coordinator for the purpose of administering the requirements of the Whistleblower Protection Act.

Ms Jan Smith is the Protected Disclosure Officer.

disclosure under s104 of the Whistleblower protection actIn accordance with the requirements of the Whistleblowers Protection Act, the MfB established a policy and guidelines for responding to disclosures lodged.

2005/06 disclosure statisticsProtected disclosure lodged 1

referred by the MfB to the Ombudsman for determination as to whether they were public interest disclosures

-

Disclosed matters referred to the MfB by the Ombudsman 1

Disclosed matters referred by the MfB to the Ombudsman for investigation. -

Investigations of disclosed matters taken over by the Ombudsman from the MfB -

requests made under section 74 (requests to Ombudsman by person making disclosure) during the year to the Ombudsman to investigate disclosed matters.

-

Disclosed matters that the MfB declined to investigate -

Disclosed matters substantiated on investigation -

recommendations of the Ombudsman under the Act -

Whistleblower protection act



Management discussion and analysisoperating Statement The Net result of the Metropolitan fire and emergency Services Board (MfeSB) for 2005/06 was a $27.612 million surplus as compared to a surplus of $39.896 million for 2004/05, a decrease of $12.284 million. The once-off profit from the sale of properties in 2004/05 (2005/06 $nil) offset by increased income from contributions and investments, coupled with increased employee benefits expenses were the significant causes for the net result decrease.

Income generated by the MfeSB is utilised toward operating expenses and capital expenditure funding. unlike many non-statutory authorities, the MfeSB does not receive capital expenditure funding covered by financial reporting Direction 2 where such funding is directly recorded in equity. This situation results in the MfeSB’s net result being in surplus to the extent that capital expenditure funding is included in income.

incomeIncome for the 2005/06 year was $292.953 million as compared to $315.602 million for the previous financial year, a decrease of $22.649 million.

The major factors in this variation were gross income of $45.306 million from sale of properties in 2004/05 not being reported in 2005/06, off set by greater income from Contributions, investments and charges for services.

Major Sources of income

contributions

The major income item is the total contribution determined by the Minister for Police and emergency Services under Section 36 of the Metropolitan Fire Brigades Act 1958, and subsequently approved by the Governor in Council. Total contributions originate per Section 37 of the Metropolitan Fire Brigades Act 1958: one-eighth from the Consolidated fund; one-eighth from the Municipal Councils whose districts are within or partly within the Metropolitan fire District; and three-quarters from the insurance companies insuring against fire property situated within the Metropolitan fire District.

The contributions per Section 37 for 2005/06 were $235.066 million, an increase of $18.146 million from the 2004/05 level. The Board’s policy of cost restraint, coupled with strong financial control and management, were the factors behind the total call on insurance companies, municipalities and the State Government being kept to a minimum over the last decade.

The Net Annual Value of rateable property returned by 26 municipalities in the Metropolitan fire District as at 1 July 2004 was $23 billion, an increase of $4 billion, or 22.66 per cent on the prior year.

The contribution by municipalities was 12.8 cents for every $100.00 of net annual value, a decrease of 11.72 per cent on the prior year.

Gross premiums returned by 82 contributing insurance companies for the year ended on 30 June 200 5 and on which the provisional contributions for the 2005/06 financial year were assessed, totalled $455 million, a decrease of $17 million or 3.6 per cent on the prior year. The provisional contribution rate for 2005/06 was an average of $35.77 for every $100.00 of declared premium, an increase of 15.2 per cent on the prior year.

Contributions by brokers and owners for 2005/06 (i.e. property insured against fire by an insurance company not required to contribute toward the total contributions outlined above – typically an overseas insurance company) under Section 44A of the Metropolitan Fire Brigades Act 1958, was $9.036 million as compared to $9.077 million for 2004/05.

Income from this source was maintained as a result of increased inspection activity by the Board.

revenue

The Board generated income through a range of fire safety and emergency response related activities including the provision of road accident rescue services, the sale of fire safety services and equipment, commercial training, inspection fees, consultancy fees, uninsured fire fees, hazardous

chemical incident fees and avoidable false alarm fees. Income for this category totalled $26.493 million for 2005/06 as compared to $22.954 million for 2004/05. It is estimated that industrial bans during the year had a detrimental impact on income for this category of $2.100 million.

other income

The significant decrease in other income relates to the gross proceeds of $45.306 million on property sold during the 2004/05 year and not reported in the 2005/06 year. Additionally interest and earnings on current and non-current investments increased by $4.205 million from $11.762 million for 2004/05 to $15.967 million for 2005/06 due to healthy returns, the first time recognition of positive movements in the fair value on investments, and interest recognised on long-term receivable.

expensesexpenses for the year ended 30 June 2006 totalled $265.341 million, a decrease of $10.365 million from the $275.706 million for the previous year.

This movement was mainly due to the once-off $24.225 million cost of property sales in 2004/05, off set by increases in employee benefits and depreciation.

The Board endeavours to control its expenses, however industrial bans, poor

attendance and increased firefighter minimum crewing requirements resulted in additional overtime employee benefits of $2.900 million.

Balance SheetTotal Assets as at 30 June 2006 were $456.373 million as compared to $417.034 million as at 30 June 2005. The major reasons for this movement were increases in cash and cash equivalents, investments, intangible assets, property, plant and equipment acquisitions, and revaluation increment from the revaluation of properties, off set by a reduction in receivables.

Intangible assets increased along with income received in advance recognized under both current and non-current liabilities. These items relate to long-term licence agreements entered into for the provision of telecommunication services to the MfeSB and Country fire Authority.

The MfeSB’s land and building assets total $214.426 million as at 30 June 2006.

Cash assets and $7.500 million of the non-current investment asset shown in the Balance Sheet as at 30 June 2006, represents funding for specific projects and expenditures received by the MfeSB to be disbursed during future periods. Industrial bans during the year negatively impacted on the rollout of capital programs

and have resulted in an increase in cash assets for 2006 as compared to 2005.

receivables reduced essentially due to the settlement of a property sale during the current year.

Total Liabilities as at 30 June 2006 were $78.273 million, an increase of $8.311 million from the $69.962 million as at 30 June 2005. The major contributing items to the variation were an increase in payables, employee benefit provisions and income received in advance.

Net Assets as at 30 June 2006, were $378.100 million as compared to $347.072 million as at 30 June 2005, an increase of $31.028 million.

Statement of Balance Sheet ratios• Working Capital ratio

(Current Assets to Current Liabilities). As at June 2006, the Board has a ratio of 85 per cent (73 per cent 30 June 2005). The basic calculation of working capital ratio has been impacted by the Minister for finance financial reporting Direction to record all employee benefit leave entitlements as a current liability. A revised working capital ratio, based on employee benefit leave entitlements estimated to fall due within 12 months is 272 percent (275 percent 30 June 2005).

• Proprietary ratio (Total equity to Total Assets). As at 30 June 2006 this ratio was 83 per cent (83 per cent as at 30 June 2005).

• Debt ratio (Total Liabilities to Total Assets). As at 30 June 2006 this ratio was 17 per cent (17 per cent as at 30 June 2005).

liquidityThe Board is of the opinion that it has adequate internal and external resources available to finance its business needs including its capital expenditure.

All current and non-current liabilities, including employee benefits, are adequately provided for by established assets or through the annual funding system. While not recorded in the MfeSB’s financial statements, the emergency Services Super defined benefit superannuation scheme shows a surplus of net assets against accrued benefit liabilities. The emergency Services Super financial statements are reported by the Department of Treasury and finance.

Major assetsThe Board’s staff and their experience and accumulated intellectual knowledge are the most valued assets of the organisation.

The Board operates 47 fire stations plus other properties, fire and rescue appliances, and computer / communications equipment. Asset classes and values are shown in Note 4 of the financial statements.

cash Flow Statement• Net cash provided by

operating activities was $71.861 million, an increase of $29.782 million from $42.079 million for the previous financial year.

• Payments for property, plant and equipment for the year were $43.349 million, an increase of $13.637 million on the prior year.

outlookContributions towards the 2006/07 financial year estimate of expenditure have been determined by the Minister for Police and emergency Services and approved by the Governor in Council at $245,791,200 and represents an increase of 4.56 per cent or $10,724,960.

Management discussion and analysis

09 MFB ANNUAL REPORT 05/0643 MFB ANNUAL REPORT 05/06


Schedule of Municipalitiesfor the year ended 30 June 2006

Annual Value of rateable Property returned by the undermentioned Municipalities, which are wholly or partly within the Metropolitan fire District.

MunicipalitieS rateaBle property AS AT 1 JULY 2004

contriButionS For year ended 30 June 2006

$ $

City of Banyule 755,395,975 965,388.44

City of Bayside 1,233,338,205 1,576,193.76

City of Boroondara 2,023,653,175 2,586,208.32

City of Brimbank 920,034,669 1,175,795.04

City of Darebin 1,050,150,218 1,342,081.40

City of Glen eira 1,326,931,830 1,695,805.48

City of Greater Dandenong 8,707,400 11,127.96

City of hobsons Bay 744,763,725 951,800.52

City of hume 471,477,725 602,543.76

City of Kingston 865,510,970 1,106,114.28

City of Manningham 667,788,824 853,427.36

City of Maribyrnong 601,235,857 768,373.36

City of Maroondah 597,363,100 763,424.00

City of Melbourne 2,128,130,411 2,719,729.20

City of Monash 1,477,809,720 1,888,625.92

City of Moonee Valley 991,135,192 1,266,660.76

City of Moreland 1,022,532,060 1,306,785.64

Shire of Nillumbik 6,090,500 7,783.60

City of Port Phillip 1,371,132,040 1,752,292.92

City of Stonnington 1,651,990,145 2,111,226.72

City of Whitehorse 1,306,558,672 1,669,768.80

City of Whittlesea 515,569,070 658,892.08

City of Wyndham 97,923,875 125,145.72

City of Yarra 1,052,296,595 1,344,824.44

Shire of Yarra ranges 34,803,055 44,477.96

Victorian urban Development Authority(Docklands)

69,470,466 88,782.56

22,991,793,474 29,383,280.00

Schedule of Municipalities

A.I.S. Insurance Brokers Pty Ltd

ACe Insurance Limited

AhL Insurance Brokers Pty Limited

Aioi Insurance Co Limited

Allianz Australia Insurance Limited

American home Assurance Company

Aon risk Services Australia Limited

Armbro Insurance Brokers Pty Ltd

AssetInsure Pty Ltd

Ausnet underwriting Agency Pty Ltd

Austcover Insurance Brokers Pty Ltd

Australian Alliance Insurance Company Limited

Australian Associated Motor Insurers Limited

Australian International Insurance Limited

Australian unity General Insurance Limited

Axis underwriting Services Pty Limited

BhP Billiton Marine & General Insurances Pty Ltd

Booker International Pty Limited

Catholic Church Insurances Limited

Catlin Australia Pty Ld

CGu Insurance Limited

Chambers Gallop McMahon Pty Ltd

Chronos Insurance Brokers Pty Ltd

Chubb Insurance Company of Australia Limited

Commonwealth Insurance Limited

Cumis Insurance Society, Inc

Curasalus Insurance Pty Ltd

Defence Service homes Insurance

eIG-Ansvar Limited

elders Insurance Limited

encompass Insurance Agency Pty Ltd

farmers’ Mutual Insurance Limited

fM Insurance Company Limited

freeman McMurrick Pty Ltd

Gerling Australia Insurance Company Pty Limited

GIO General Limited

Global underwriting Services Pty Ltd

Gow-Gates Insurance Brokers Pty Ltd

Guardian underwriting Services Pty Ltd

Guild Insurance Limited

h W Wood Australia Pty Ltd

hallmark General Insurance Company Ltd

hSB engineering Insurance Limited

Insurance Australia Limited

Insurance Commission of Western Australia

Insurance Manufacturers of Australia Pty Limited

InterPacific Underwriting Agencies Pty Limited

Jardine Lloyd Thompson Pty Ltd

JMD ross Insurance Brokers Pty Ltd

JuA underwriting Agency Pty Limited

Liberty Mutual Insurance Company

Lumley General Insurance Limited

Mansions of Australia Limited

Marsh Pty Ltd

Mercantile Mutual Insurance (Australia) Ltd

Millenium underwriting Agencies Pty Ltd

Miller & Associates Insurance Broking Pty Ltd

Miramar underwriting Agency Pty Ltd

Mitsui Sumitomo Insurance Company Ltd

Mutual Community General Insurance Proprietary Limited

NIPPONKOA Insurance Company Pty Ltd (The)

NZI Insurance Australia Limited

OAMPS Insurance Brokers Ltd

Orica Insurance Pty Limited

QBe Insurance (Australia) Limited

QBe Insurance (International) Limited

QBe Mercantile Mutual Ltd

Sompo Japan Insurance Inc

Sportscover Australia Pty Ltd

SrS Insurance Group Pty Ltd

Suncorp Metway Insurance Limited

Territory Insurance Office

The hollard Insurance Company Pty Ltd

Tokio Marine & fire Insurance Company Limited

universal underwriting Agencies Pty Limited

Vero Insurance Limited

Wesfarmers federation Insurance Ltd

Westpac General Insurance Limited

Willis Australia Limited

xL Insurance Company Limited

Your Insurance Group

Zurich Australian Insurance Limited

Schedule of insurance companies Contributing to the Metropolitan fire and emergency Services Board (MfB) under Section 40 of the Metropolitan Fire Brigades Act 1958 for the year ended 30 June 2006.


Schedule of insurance companies


Insurance intermediaries who arranged insurance(s) on behalf of property owners

A.C.M. Insurance

Anthony runacres & Associates Limited

Aon risk Services Australia Ltd

Armbro Insurance Brokers

Atlas Insurance Brokers

Black Wood & Doyle Insurance Brokers Limited

Chambers Gallop McMahon Pty Ltd

Continental Insurance

(International Agencies) Pty Ltd

Corion Pty Limited

Cowden (S.A.) Pty Limited

Dominion underwriting Agency

epsilon underwriting Agencies Pty Ltd

first Professional underwriting Agency

fraser McAndrew ryan

freeman McMurrick Pty Ltd

Genesis Insurance Brokers Australia

horsell International Pty Ltd

Industrial & Commercial Insurance Brokers Ltd

Jardine Lloyd Thompson Pty Ltd

Mahony & Company Limited

Mainprice King Chartered Brokers Ltd

Marsh Pty Ltd

Miller & Associates Insurance Broking

OAMPS Insurance Brokers Ltd

Primesure Brokers

renaissance underwriting Agency Pty Ltd

rural & General Insurance Broking Pty Ltd

St Paul Travelers Insurance Company Ltd

Willis Australia Limited Property Owners

Property Owners

A.A.P.T.

Amcor Limited

Attachmate Australasia Pty Ltd

Avanti Bicycle Company

BMW Australia finance Ltd

BMW Australia Ltd

Cargill Australia Limited

Church of Scientology Incorporated

Ciba Specialty Chemical Pty Ltd

Coles Myer Ltd

Corning Cable Systems Pty Ltd

Dow Chemical (Australia) Ltd

Drake Personnel Limited

esso Australia Ltd

General Motors Acceptance Corporation

Mobil Oil Australia Limited

Mobil Oil Refining Australia Pty Ltd

Paper Coaters Limited

ricegrowers Co-operative Limited

rio Tinto Limited

rosemaur Properties

Shell Company of Australia Ltd (The)

Schedule of insurance intermediaries or property ownersContributing to the MfB under Section 44A of the MFB Act 1958 for the year ended 30 June 2006

Schedule of insurance intermediaries or property owners

Summary of Municipalities contributions

financial Year of Contribution

Determined Contribution

Declared Net Annual Value

Increase/ (Decrease) Over Prior Year

Contribution Per $100.00 Net Annual

Value

$ $ $ ¢

1994/1995 15,666,260 9,744,066,780 40,640,658 16.1

1995/1996 15,666,260 9,151,243,933 (592,818,847) 17.1

1996/1997 15,666,260 9,219,143,514 67,899,581 17.0

1997/1998 15,666,260 9,222,271,610 3,128,096 16.9

1998/1999 15,666,260 9,394,454,663 172,183,053 16.7

1999/2000 16,390,200 9,640,414,905 245,906,242 17.0

2000/2001 17,398,600 9,798,989,053 158,574,148 17.6

2001/1002 18,287,900 13,941,180,073 4,142,191,020 13.1

2002/2003 19,936,325 14,217,881,193 276,701,120 14.0

2003/2004 24,415,753 18,348,861,709 4,130,980,597 13.3

2004/2005 27,115,053 18,744,312,994 395,451,285 14.5

2005/2006 29,383,280 22,991,793,474 4,247,480,480 12.8

Summary of insurance companies contributions

financial YearDetermined Contribution

Declared Premiums

Increase (Decrease) Over Prior Year

Average final Contribution per

$100.00 Premium

$ $ $ $

1994/1995 93,997,560 290,925,619 4,304,517 32.310

1995/1996 93,997,560 283,880,093 (7,045,526) 33.112

1996/1997 93,997,560 281,519,557 (2,360,536) 33.389

1997/1998 93,997,560 271,759,159 (9,760,398) 34.589

1998/1999 93,997,560 268,552,239 (3,206,920) 35.002

1999/2000 98,341,200 287,131,116 18,578,877 34.250

2000/2001 104,391,600 305,231,579 18,100,463 34.201

2001/2002 109,727,400 383,535,013 78,303,434 28.609

2002/2003 119,617,950 457,759,029 74,224,016 26.131

2003/2004 146,494,518 471,763,071 14,004,042 31.052

2004/2005 162,690,318 454,762,598 (17,000,473) 35.775

2005/2006 176,299,680 Not Yet Available

Note: The Annual Value of rateable Property and Declared Premiums may vary from prior Annual reports as the amounts shown may include supplementary adjustments to the declared amounts, allowed by the Metropolitan fire and emergency Services Board under S.45 of the Metropolitan fire Brigades Act 1958. The Declared Premium amount for the financial year ended 30 June 2006 will not be available until October 2006 as a result only provisional contributions have been collected for this financial year.


Summary of Municipalities contributions and insurance companies contributions


Board reportMetropolitan Fire and emergency Services Board Financial Statements For the year ended 30 June 2006

The Board of the Metropolitan fire and emergency Services Board (the Board) presents its report and the financial statements of the Board, and the audit report thereon, for the year ended 30 June 2006.

Board MembersAt the date of this report the following persons were Board members or were in office during the financial year:

J A elliott (President)

I O Spicer AM (Deputy President)

C C Andrades (appointed 1 July 2006)

S Aziz (appointed 20 September 2005)

J A Bonnington (appointed 1 July 2006)

G T Lake

M J raymond

J f Sutton (term ended 30 June 2006)

principal activities The principal activities of the Board remain unchanged. They are to provide for fire suppression, fire prevention services and emergency prevention and response services within the Metropolitan fire District.

operating resultThe Board is funded by its Contributors on a cash basis. Applying A-IfrS accrual accounting principles a net result of $27,612,000 was achieved in 2006. (2005: net result $39,896,000).

review of operationsA review of the activities of the Board during the year is covered in the Board’s review of operations contained in this Annual report.

State of affairsIn the opinion of the Board, there were no significant changes in the state of affairs of the Board that occurred during the financial year under review not disclosed in this report or the financial statements.

events Subsequent to Balance dateThere has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Board members, to affect significantly the operations of the Board, the results of those operations, or the state of affairs of the Board, in subsequent financial years.

likely developments and expected result of operationsThere were no known likely developments in the operations of the Board that would materially impact the Board’s principal activities, operations or result of operations at the date of this report.

Board Members’ BenefitsSince the end of the previous financial year, no member of the Board has received or become entitled to receive any emoluments by reason of a contract made by the Board with a Board member, or with a firm of which the Board member is a member or with a company in which a Board member has a substantial interest other than in the ordinary course of business. remuneration of responsible persons, including Board members, is disclosed in Note 18 to the financial statements.

Signed at Melbourne this 28th day of August 2006 in accordance with a duly recorded resolution of the Board.

J.A. elliott

President


Metropolitan Fire and emergency Services Board Financial Statements For the year ended 30 June 2006

operating Statement

NOTES 2006 $000

2005 $000

INCOMEContributions 2 246,593 229,990

revenue 2 26,493 22,954

Other income 2 19,867 62,658

Total income 292,953 315,602

EXPENSES Employee benefits 3 192,544 179,705

Depreciation and amortisation 3,4,5 16,444 15,868

Other expenses 3 56,353 80,133

Total expenses 265,341 275,706

Net result for the year 6 27,612 39,896

The above Operating Statement should be read in conjunction with the accompanying notes.


NOTES2006 $000

2005 $000

CURRENT ASSETSCash and cash equivalents 7,15 31,947 13,348

Prepayments 554 724

Inventories 8 1,003 867

receivables 7, 9 28,771 33,065

Total current assets 62,275 48,004

NON-CURRENT ASSETSInvestments 7 81,515 71,233

receivables 7, 9 - 18,742

Intangible assets 5 10,590 6,998

Property, plant and equipment 4 301,993 272,057

Total non-current assets 394,098 369,030

Total assets 456,373 417,034

CURRENT LIABILITIESPayables 7, 10 10,880 6,743

Income received in advance 7 276 190

Employee benefit provisions 11,11A 61,754 58,737

Total current liabilities 72,910 65,670

NON-CURRENT LIABILITIESIncome received in advance 7 3,857 2,655

Employee benefit provisions 11,11A 1,506 1,637

Total non-current liabilities 5,363 4,292

Total liabilities 78,273 69,962

Net assets 378,100 347,072

EQUITYContributed capital 13 121,059 121,059

Asset revaluation reserves 6 141,445 138,579

Accumulated surplus 6, 22 115,596 87,434

Total equity 378,100 347,072

Commitments for expenditure 14

Contingent assets and contingent liabilities 14

The above Balance Sheet should be read in conjunction with the accompanying notes.

Balance Sheet

NOTES2006 $000

2005 $000

Gain on revaluations – land and buildings 6 2,866 33,897

Initial AIFRS adjustment – non current investments 1(t) 550 -

Net income recognised directly in equity 3,416 33,897

Net result for the year 6 27,612 39,896

Total recognised income and expense for the year 31,028 73,793

The above Statement of recognised Income and expense should be read in conjunction with the accompanying notes.

noteS 2006 2005$000 $000

CASH FLOWS FROM OPERATING ACTIVITIESContribution receipts from government 29,383 27,115

receipts from other entities 280,001 232,632

Interest received from current investments 4,452 3,309

Dividends received from non-current investments 4,802 2,450

Interest received from non-current investments 901 1,394

realised gain/(loss) on investments 134 3,317

Goods and Services Tax recovered from the ATO 9,928 8,980

Goods and Services Tax paid to the ATO (5,342) (2,471)

Payments to suppliers and employees (252,398) (234,647)

Net cash provided by / (used in) operating activities 15 71,861 42,079

CASH FLOWS FROM INVESTING ACTIVITIESPayments for property, plant and equipment (43,349) (29,712)

Payments for intangible assets (4,946) (3,759)

Proceeds from sale of property, plant and equipment 871 2,545

Payments for non-current investments (5,838) (71,147)

Proceeds from sale of non-current investments - 57,286

Net cash provided by / (used in) investing activities (53,262) (44,787)

Net increase / (decrease) in cash held 18,599 (2,708)

Cash and cash equivalents at the beginning of the financial year

13,348 16,056

Cash and cash equivalents at the end of the financial year

15 31,947 13,348

The above Cash flow Statement should be read in conjunction with the accompanying notes.



cash Flow Statement


1. SuMMary oF accounting policieSStatement of compliance

This financial report is a general purpose financial report which has been prepared on an accrual basis in accordance with the Financial Management Act 1994, Australian Accounting Standards and urgent Issues Group Interpretations. Accounting Standards include Australian equivalents to International financial reporting Standards (A-IfrS).

Basis of preparation

The financial report has been prepared on the basis of historical cost, except for the revaluation of certain non current assets and financial instruments. In the application of A-IfrS management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

The Board changed its accounting policies on 1 July 2005 to comply with A-IfrS. The transition to A-IfrS is accounted for in accordance with Accounting Standard AASB 1 first-time Adoption of Australian equivalents to International financial reporting Standards, with 1 July 2004 as the date of transition. An explanation of how the transition from superseded policies to A-IFRS has affected the Board’s financial position, financial performance and cash flows is discussed in Note 22.

The Board has also elected to apply Accounting Standard AASB 2005-4 and 2005-6 Amendments to Accounting Standards (June 2005), even though the Standard is not required to be applied until annual reporting periods beginning on or after 1 January 2006.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2006, the comparative information presented in these

financial statements for the year ended 30 June 2005, and in the preparation of the opening A-IfrS balance sheet at 1 July 2004, the date of transition, except for the accounting policies in respect of financial instruments. The Board has not restated comparative information for financial instruments, as permitted under the first-time adoption transitional provisions. The accounting policies for financial instruments applicable to the comparative information and the impact of the changes in these accounting policies are detailed in note 1(t).

(a) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, cash in banks and short-term investments in money market instruments.

(b) Property, plant and equipment

Land and buildings are measured at fair value. Plant, equipment and vehicles are measured at cost less accumulated depreciation and impairment.

• Acquisition of assets

All property, plant and equipment acquired are initially recorded at their cost of acquisition at the date of acquisition, being the fair value of the consideration provided plus incidental costs directly attributable to the acquisition.

Expenditure incurred on fixed assets subsequent to initial acquisition are capitalised when it is probable that future economic benefits will flow to the Board in future years. Where these costs represent separate components they are accounted for as separate fixed assets and are separately depreciated over their useful lives.

The cost of construction works in progress is carried at cost of materials, external services, direct labour and an appropriate proportion of fixed and variable overheads recognised to date based on the value of work completed.

• Revaluations

Subsequent to the initial recognition as assets, non-current land and buildings are measured at fair value in accordance with the Minister for finance financial reporting Direction (frD)116- Property, Plant and equipment. Plant and equipment, vehicles and leasehold improvements are measured at cost. revaluations are made with sufficient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value at the reporting date. revaluations are assessed at periods as advised by the Department of Treasury and finance and supplemented by independent valuations at interim periods to ensure that the carrying amount of each asset class does not differ materially from its fair value.

notes to the Financial Statements for the year ending 30 June 2006

fair value of buildings in use is determined using the asset’s depreciated replacement cost.

revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the net result, the increment is recognised immediately as income in the net result.

revaluation decrements are recognised immediately as expenses in the net result, except that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve.

revaluation increments and decrements are offset against one another within each class of non-current assets but are not offset in respect of assets in different classes.

• Depreciation

Depreciation is provided on property, plant and equipment, including freehold buildings but excluding land. Depreciation is generally calculated on a straight-line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period.

The following estimated useful lives are used in the calculation of depreciation:

Buildings 40 years

Plant and Equipment 3 – 15 years

(c) Impairment of assets

All assets are assessed annually for indications of impairment, except for inventories, financial instrument assets and non-current assets held for sale. If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, the difference is written-off by a charge to the operating statement, except to the extent that the write-down can be debited to an asset revaluation reserve amount applicable to that class of asset.

The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. It is deemed that, in the event

of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made.

(d) Inventories

Supplies, consumables and inventories held for sale are measured at the lower of cost and net realisable value.

(e) Leasehold improvements

Leasehold improvements are amortised on a straight-line basis over the shorter of their estimated useful lives or the term of the lease.

(f) Employee benefits

• Provisions

Provision is made for benefits accruing to employees in respect of wages and salaries, annual and accrued leave, long service leave and sick leave when it is probable that settlement will be required and the obligations are capable of being measured reliably.

Provisions made in respect of employee benefits are measured based on their expected settlement. Provisions which are expected to be settled within 12 months are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Provisions which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows in respect of services provided by employees to the reporting date.

regardless of the expected timing of settlement, provisions made in respect of employee benefits are classified as a current liability unless there is an unconditional right to defer the settlement of the liability for at least 12 months after the reporting date, in which case it would be classified as a non-current liability. Provisions made for annual, accrued, sick (up to one year of absence) and unconditional long service leave are classified as a current liability where the employee has a present entitlement to the benefit. Provisions for conditional leave, including sick leave greater than one year’s absence and long service leave accrued for employees with less than 7 years of continuous service (less than 10 years applied in 2005) are classified as a non-current liability.

Employee benefit on-costs are recognised and reported as liabilities.

financial assets in the form of non-current investments are held at fair value through profit and loss to fund future payments for employee leave benefits (Note 7).




• Bonus plans

A liability for bonus plans is recognised in payables when there is no realistic alternative but to settle the liability and at least one of the following conditions is met:

- There are formal terms for determining the amount of the benefit

- The amounts to be paid are determined before the time of completion of the financial report, or

- Past practice gives clear evidence of the amount of the obligation.

Liabilities for bonus plans are expected to be settled within twelve months and are measured at the amount expected to be paid when they are settled.

• Superannuation

The Board does not recognise any defined benefit liability in respect of the Emergency Services Super defined benefit superannuation plan because the Board has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance administers and discloses the State’s defined benefit liabilities in its financial report.

The amount charged to the operating statement in respect of superannuation represents the contributions made by the Board to the emergency Services Super funds in respect to the current services of current staff. Superannuation contributions are made to the funds based on the relevant rules of each fund.

(g) Receivables

• Trade receivables

All receivables are recognised at amortised cost, using the effective interest rate method less impairment, less any allowance for doubtful debts. Trade receivables are due within 30 days or other negotiated business terms. Contribution receivables are due within 14 days. A legislated rate of interest is charged on outstanding contribution receivables.

An allowance has been made for estimated irrecoverable amounts invoiced.

• Other receivables

These amounts relate to the sale of property. receivables relating to the sale of property that settle beyond 12 months are discounted using the effective interest method to effect fair value and the amount of discount is recorded as interest recognised on long term

receivable in the balance sheet.

(h) Payables

Payables are recognised when the Board becomes obliged to make future payments resulting from the purchase of goods and services.

(i) Income recognition

Income is recognised for each of the Board’s major activities as follows:

• Contributions

Statutory contributions are determined for each financial year under Section 37 of the Metropolitan Fire Brigades Act 1958 and comprise one-eighth from the Consolidated fund, one-eighth from the Municipal Councils whose districts are within, or partly within, the Metropolitan fire District and three-quarters from insurance companies insuring against fire property situated within the Metropolitan fire District. Contributions income is recognised in the financial year to which the determination under section 37 applies.

• Sales income

Sales income comprises income earned (net of returns, discounts and allowances) from the provision of goods or services to external entities. Sales income is recognised when the goods or services are provided.

• Dividend income

Dividend income is recognised on a receivable basis.

• Interest income

Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

• Sale of property

The gross proceeds from sale of properties are classified as income at the date control of the asset passes to the buyer, usually when an unconditional contract of sale is signed.

The cost of the current asset is classified as an expense.

• Fixed asset sales

The gross proceeds of non-current fixed asset sales are included as income at the date control of the asset passes to the buyer, usually when an unconditional contract of sale is signed.

The gain or loss on disposal is calculated as the

difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal.

(j) Financial assets classified as ‘held for trading’

Investments are accounted in accordance with frD114 – Financial Instruments – General Government Entities and meet the criteria of ‘held for trading’ and are recognised at fair value with movements reflected in the Operating Statement.

The Board classifies investments at initial recognition and the classification depends on the purpose for which the investments were acquired. under the initial provisions of AASB 132: financial Instruments Disclosure and Presentation, AASB 139 financial instruments: recognition and Measurement, and AASB 2005-4 Amendments to Accounting Standards, the Board declared the non current investment as ‘fair value through Profit and Loss’, resulting in earnings and market movements to fair value being reflected in the Operating Statement.

(k) Joint venture operation cessation

The Board’s interest in a joint venture operation with the Country fire Authority was disposed of on 1 January 2005.

(l) Goods and Services Tax

Incomes, expenses and assets are recognised net of the amount of goods and services tax (GST), except:

• where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or

• for receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

(m) Maintenance and repairs

Major plant and equipment is required to be serviced on a regular basis. This is managed as part of an ongoing major cyclical maintenance program. The costs of this maintenance are charged as expenses as incurred, except where they relate to the replacement of a major component of an asset, in which case the costs are capitalised and depreciated in accordance with note 1(b). Other routine operating maintenance, repair costs and minor plant renewals are also charged as expenses as incurred.

(n) Operating leases

The Board leases property under operating leases expiring from one to eight years. Leases generally provide the Board with the right of renewal. Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

(o) Intangible assets

Intangible assets represent identifiable non-monetary assets without physical substance.

Intangible assets are recognised at cost. Costs subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the Board. Intangible assets with finite useful lives are amortised on a straight-line basis over the asset’s useful life. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether there are indicators that the intangible asset concerned is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount.

(p) Non-current assets held for sale

Non-current assets classified as held for sale are measured at the lower carrying amount and fair value less costs to sell.

Non-current assets are classified as held for sale if their carrying amount will be recovered through a sale




transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is expected to be completed within one year from the date of classification.

(q) Rounding

Amounts in the financial reports have been rounded to the nearest thousand dollars.

(r) Functional currency

The functional currency of the Board is the Australian dollar.

(s) Contributed capital

Consistent with uIG Interpretation 1038 Contributions by Owners made to Wholly-Owned Public Sector Entities appropriations for additions to net assets have been designated as contributed capital.

(t) Adoption of AASB 132 and AASB 139

The Board has elected not to restate comparative information for financial instruments within the scope of AASB 132 financial Instruments: Disclosure and Presentation and AASB 139 financial Instruments: recognition and Measurement, as permitted on the first-time adoption of A-IFRS.

Change in accounting policies for financial instruments

Prior to 1 July 2005, non-current investments were accounted for at cost and adjusted to also account for unrealised market movement losses.

effective 1 July 2005, in accordance with A-IfrS, non-current investments are valued at fair value.

Effect of changing the accounting policies for financial instruments

The effect of changes in the accounting policies for financial instruments on the financial statements as at 1 July 2005 is the recognition of $550,260 increasing adjustment to retained earnings relating to unrealised gains on the non-current investment and a corresponding increase in the non-current investment asset.

(u) Restatement of comparative balances

The application of A-IfrS resulted in the following restatement of comparative values in prior years:

(i) Employee Benefits provisions prior to the current financial year were apportioned between current

and non-current liabilities basis expected settlement periods. A-IfrS requires current and non-current apportionment on the basis the Board’s ability to defer settlement, resulting in all annual and accrued leave being recorded as current liabilities, as well as the majority of sick leave and long service leave pertaining to staff with 7 or more years service (10 or more years service in prior years).

(ii) This resulted in $47,306,000 being reclassified from non-current employee benefit provisions liabilities to current liabilities in the June 2005 financial year.

(ii) Intangible assets-software

Software previously reported in the plant and equipment asset class has been separately reported in the intangible assets class. This resulted in a reclassification of $7,674,000 cost and $6,027,000 accumulated amortisation in the June 2005 financial year.

(v) Significant accounting estimates and judgements

The following significant estimates and judgements were applied in the preparation of the financial statements.

Employee Benefit Provisions

Employee benefit provisions expected to be settled beyond 12 months have been apportioned on the basis of expected settlement periods in the future and adjusted to account for wage increases and discounted to present value according to the Department of Treasury and finance guidelines.

The average wage inflation factor applied is 3% (4.75% on Long Service Leave to account for promotional movements). The average discount rate applied was 5.78%

Long service leave has been applied over 13 years when calculating the present value, as this reflects the current circumstances of 8% of leave taken per annum.

Sick leave has been accounted for on the basis of past analysis that indicates 65.6% of staff sick leave will be taken as staff near retirement. The provision is calculated by comparing 65.6% of current staff sick leave accumulated since employment, less sick leave taken by current staff, with the difference accounted for as a provision basis the average hourly pay rate. Sick leave is inflated and discounted to present value using a 13 year period which reflects the difference between the average age of staff and the modal retirement age.

2. incoMe

2006 $000

2005$000

INCOME

Contributions

Insurance companies 176,300 162,690

Municipalities 29,383 27,115

Treasurer of Victoria 29,383 27,115

Brokers and owners 9,036 9,077

Commonwealth Government 2,491 3,993

246,593 229,990

Income generated by the Board is utilised toward operating expenses and capital expenditure funding. unlike many non statutory authorities the Board does not receive capital expenditure funding covered by financial reporting Direction 2 where such funding is directly recorded in equity. This situation results in the Board’s net result being in surplus to the extent that capital expenditure funding is included in income.

REVENUEfalse alarm charges 4,115 4,625

Charges for services 22,378 18,329

26,493 22,954

Other income

Proceeds from the sale of property - 45,306

Gross proceeds from the sale of fixed assets 871 2,545

Contribution penalties 1,209 583

Workers’ compensation recovered 994 456

Property rental 497 562

Interest – short term investments 4,878 3,274

Interest – long term investments - interest 901 1,394

Interest – long term investments - dividends 4,802 2,450

realised gains/(losses) on long-term investments 134 3,316

Movements in fair value on investments 3,894 1,328

Interest recognised on long term receivable 1,358 -

Other 329 1,444

19,867 62,658

Total Income 292,953 315,602




3. eXpenSeS

2006 $000

2005 $000

EXPENSES Employee benefits

Fringe benefits tax 946 963

Payroll tax 8,748 7,876

Salaries and movement in employee benefit provisions 144,537 133,040

Superannuation 34,622 34,655

Workers’ compensation 3,691 3,171

192,544 179,705

Depreciation and amortisation

Buildings 6,074 6,104

Plant and equipment 9,026 8,687

Amortisation of intangible assets 1,344 1,077

16,444 15,868

Other expenses

Advertising and promotion 217 568

Audit of financial report (Victorian Auditor General’s office) 33 30

Internal audit, compliance audits 248 171

Communications 2,216 2,240

Consultants 224 15

Contract services - government 9,310 6,695

Contract services – other 12,551 12,235

Information technology 1,982 1,429

Insurance 834 2,317

Cost of goods sold 707 876

Cost of property sold - 24,225

Plant and equipment maintenance 4,174 3,145

Motor vehicle maintenance, fuel 3,126 3,217

Property utilities, rates, maintenance 6,502 6,479

Property lease 1,406 1,226

Supplies and consumables 3,577 3,158

Training and development 1,910 1,775

uniforms 1,514 1,771

Legal 1,868 2,169

Travel 1,838 1,378

Written down value-fixed assets disposals 1,190 3,380

Other 926 1,634

Total Expenses 265,341 275,706

4. property, plant and eQuipMent

2006 $000

2005 $000

PROPERTY, PLANT AND EQUIPMENT Freehold land

At independent valuation 2006 100,062 -

At independent valuation 2005 - 88,623

Buildings

At independent valuation 2006 114,364 -

At independent valuation 2005 - 112,901

Total land & buildings 214,426 201,524

Plant and equipment

Plant and equipment at cost 93,347 90,910

Less: accumulated depreciation (41,154) (33,363)

Total plant and equipment 52,193 57,547

Construction work in progress

Buildings 25,716 8,740

Plant and equipment 9,658 4,246

Total construction in progress 35,374 12,986

Total property, plant and equipment 301,993 272,057

The independent valuation of the Board’s land and building assets to determine fair values has been undertaken by:

B. Dudakov, Certified Practising Valuer, Australian Property Institute, Member No. 394 and, M Cleary, Certified Practising Valuer, Australian Property Institute, Member No. 2694 of Urbis Pty. Ltd.

The effective date of the valuation is 30 June 2006.

Land fair values were determined by reference to recent observable prices in the local areas and buildings valued using the Depreciated Replacement Cost method. The 2006 valuation of buildings accounts for the first time exclusion of non asset cost items, and certain minor asset values reported in the plant and equipment classification, from the base asset cost. Buildings designated as non core properties are valued at fair value basis of recent market transactions.




reconciliations

reconciliations of the carrying amounts of property, plant and equipment and work in progress at the beginning and end of the financial year are set out below:

Freehold land

Buildings Plant & equipment

Construction work in

progressTotal

$000 $000 $000 $000 $000

2006Carrying amount at start of year 88,623 112,901 57,547 12,986 272,057

Additions 1,312 - - 42,037 43,349

Disposals - - (1,179) - (1,179)

Net revaluations increment/(decrement) 10,127 (7,261) - - 2,866Transfers - 14,798 4,851 (19,649) -

Depreciation expense - (6,074) (9,026) - (15,100)

Carrying amount at end of year 100,062 114,364 52,193 35,374 301,993

Freehold land

Buildings Plant & equipment

Construction work in

progress Total

$000 $000 $000 $000 $000

2005

Carrying amount at start of year 82,019 84,401 47,032 12,857 226,309

Additions 5,305 - - 24,407 29,712

Disposals (400) (819) (1,851) - (3,070)

Net revaluations increment/(decrement) 1,699 32,198 - - 33,897

Transfers - 3,225 21,053 (24,278) -

Depreciation expense - (6,104) (8,687) - (14,791)

Carrying amount at end of year 88,623 112,901 57,547 12,986 272,057


5. intangiBle aSSetS

2006 2005

$000 $000

INTANGIBLE ASSETS

Licence agreements at cost 8,742 5,545

Less: accumulated amortisation (603) (194)

Total licence agreements 8,139 5,351

Software at cost 9,380 -

Less: accumulated amortisation (6,929) 7,674

Total software 2,451 1,647

TOTAL 10,590 6,998

Intangible assets referred to above relate to software and agreements providing the Board with access to optic fibre communication networks.

Intangible assets are amortised on a straight line basis over the asset life.

The average lives on intangible assets are:-

Optic fibre access agreements: 15 years Software: 5-7 years



Reconciliations

Reconciliations of the carrying amounts of licence agreements and software at the beginning and end of the current financial year are set out below:

Licence Agreements

$000

Software

$000

Total

$000

2006

Carrying amount at start of year 5,351 1,647 6,998

Additions 3,196 1,750 4,946

Disposals - (10) (10)

Amortisation expense (408) (936) (1,344)

Carrying amount at end of year 8,139 2,451 10,590

Licence Agreements

$000

Software

$000

Total

$000

2006

Carrying amount at start of year 1,989 2,637 4,626

Additions 3,545 214 3,759

Disposals - (310) (310)

Amortisation expense (183) (894) (1,077)

Carrying amount at end of year 8,139 1,647 6,998


6. eQuity and MoveMentS in eQuity

2006 $000

2005 $000

EQUITY AND MOVEMENTS IN EQUITY

(a) Reserves

Asset revaluation reserve

Balance at beginning of financial year 138,579 124,941

revaluation increments/(decrements) 2,866 33,897

Transfers to accumulated surplus - (20,259)

Balance at end of financial year 141,445 138,579

(b) Accumulated surplus

Balance at beginning of financial year 87,434 27,279

Transfers from asset revaluation reserve - 20,259

financial instruments (note 1(t)) 550 -

Net result 27,612 39,896

Balance at end of financial year 115,596 87,434



7. Financial inStruMentSThe Board’s activities expose it to a variety of financial risks; market risk (including foreign currency risk, interest rate risk and price risk), credit risk and liquidity risk. The Board regularly reviews all risks in relation to financial assets and financial liabilities. Its overall risk management policies focus on mitigating risks associated with operating in a commercial environment and the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance.

The Board has policies and procedures for its financial assets and financial liabilities which are reviewed at least annually. Separate policies for investments-current and investments-non-current are governed by the Borrowing and Investment Powers Act 1987 and Order-in-Councils and include limiting investments to those considered prudent, prohibiting entering or trading for speculative purposes and prohibiting investing directly in derivatives.

a) Market risk

(i) foreign currency risk

foreign currency risk arises when future transactions and recognised assets and liabilities are denominated in a currency that is not the Board’s functional currency. The Board’s investments – current policy does not permit exposure to foreign currencies. The investments-non-current policy limits exposure through the investment strategy and through the selected use of hedging. The Board acquires limited goods from international sources and in these cases foreign currency hedges are established.

(ii) Price risk

The Board is exposed to equity and property infrastructure securities price risk from its investments-non-current. The management of this exposure includes regular review by the Board, obtaining Victorian funds Management Corporation (VfMC) advice on investment strategy at least annually, obtaining Department of Treasury and finance, financial risk and Policy section, approval for investment strategy, engaging VfMC to manage these investments and utilising a diversified selection of investment classes, each with a defined minimum and maximum investment range.

(iii) Interest rate risk

The Board’s exposure to interest rate risks and the effective interest rates for financial assets and liabilities at balance date are:


Fixed interest rates

Financial instruments Floating interest

rate $000

1 year or less

$000

Over 1 to 5 years

$000

More than 5 years $000

Non-interest bearing

Total Weighted average effective interest rate %

2006

Financial assets

Cash 2,110 29,837 31,947 5.62receivables - current 28,771 28,771

Receivables – non current

Investments – non current 4,542 76,973 81,515 5.50

Total 6,652 29,837 105,744 142,233

Financial liabilitiesPayables 10,880 10,880Income received in advance 4,133 4,133

Total 15,013 15,013

2005Financial assetsCash 3,376 9,972 13,348 5.43receivables - current 33,065 33,065

Receivables – non current 18,742 18,742

Investments – non current 15,735 55,498 71,233 4.75

Total 19,111 9,972 107,305 136,388

Financial liabilitiesPayables 6,743 6,743Income received in advance 2,845 2,845

Total 9,588 9,588

The Board’s interest-bearing investments produce income and operating cash flows. Income from this source is not materially exposed to changes in market interest rates. The majority of investments are short-term duration, liquid with established principal value and fixed interest rates. The Board has no borrowings.

(b) Credit risk exposure

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Board.



The Board’s maximum credit risk exposure at balance date in relation to each class of recognised financial asset is the carrying amount of the asset as indicated in the balance sheet. The Board has no significant concentration of credit risk. The Metropolitan fire Brigades Act 1958 ensures that there is minimal exposure to individual contribution receivable counterparties.

The Board minimises credit risk in relation to receivables by applying commercial payment terms with all customers, regular review of doubtful debts provisioning and the timely recognition and write-off of bad debts. Investments are limited to counterparties that have a high level credit rating and are regularly reviewed.

(c) Liquidity risk

The Board manages its liquidity risk by regular long-term and short-term forecasting which takes into consideration the Metropolitan fire Brigades Act 1958 legislated funding sources, the ability to close-out marketable securities, and a limited line of credit.

(d) Fair values

The Board considers that the carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their fair values (2005: net fair values).

The fair values and net fair values of financial assets and financial liabilities are determined as follows:

- the fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices, and

- the fair value of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis.


The carrying amounts and fair values (2005: net fair values) of financial assets and liabilities at balance date are:

2006 Carrying amount $000 Fair value $000

Financial assets

Cash 31,947 31,947

receivables - current 28,771 28,771

Receivables – non current

Investments - non-current 81,515 81,515

Total 142,233 142,233

Financial liabilities

Payables 10,880 10,880

Income received in advance 4,133 4,133

Total 15,013 15,013

2005 Carrying amount $000 Net fair value $000

Financial assets

Cash 13,348 13,348

receivables - current 33,065 33,065

receivables - non current 18,742 18,742

Investments - non-current 71,233 71,779

Total 136,388 136,934

financial liabilities

Payables 6,743 6,743

Income received in advance 2,845 2,845

Total 9,588 9,588



8. inventorieS

2006

$000

2005

$000

INVENTORIESStores, spare parts and security spares 1,200 1,036

Less: allowance for obsolescence (197) (169)

Total 1,003 867

9. reveivaBleS

2006

$000

2005

$000

RECEIVABLESReceivables - current

Trade receivables 5,485 6,286

Other receivables 23,488 26,958

Less: allowance for doubtful debts (202) (179)

Total 28,771 33,065

Receivables - non current

Other receivables (nominal value) - 20,100

Less: allowance for interest (to reflect fair value) - (1,358)

Total - 18,742

10. payaBleS

2006

$000

2005

$000

PAYABLESTrade Payables 7,037 5,485

Other payables & accured expenses 3,843 1,258

Total 10,880 6,743


11. eMployee BeneFit proviSionS

2006

$000

2005

$000

EMPLOYEE BENEFIT PROVISIONSCurrent liabilities (Note 11A)

Annual & accured leave 14,611 13,140

Long service leave 44,776 43,749

Sick leave 2,367 1,848

Total 61,754 58,737

Non-current liabilities (Note 11A)

Long service leave 1,419 1,574

Sick leave 87 63

Total 1,506 1,637

Total employee benefit provisions 63,260 60,374

11A EMPLOYEE BENEFIT PROVISIONSCurrent liabilities

All employee unconditional benefit leave entitlements – annual, accrued, sick (up to one year of absence), and long service (10 or more years of continuous service.)

- Short-term employee benefits, expected to fall due within 12 months after the end of the period measured at nominal value

11,711 10,508

- Long-term employee benefits expected to not fall due within 12 months after the end of the period measured at present value

50,043 48,229

Total 61,754 58,737

Non-current liabilitiesAll employee conditional benefit leave provisions – sick (greater than one year of absence), long service (less than 10 years of continuous service) measured at present value.

1,506 1,637

Total 1,506 1,637



12. Superannuation The Board contributes to the emergency Services Super superannuation funds (eSS).

During the year, the Board made superannuation payments of $34,565,000 (2005: $34,617,000) to eSS. This includes additional payments above the required average employer contribution rate to allow for the past service liability impact of enterprise bargain wage rates for current employees being higher than the actuarial assumption and to assist in maintaining the defined benefits scheme’s assets over liabilities within the actuarially agreed long-term range.

There were no superannuation contributions outstanding at 30 June 2006. (2005: nil).

employer contribution rates were:

Accumulation Scheme

9% of salary for non-operational staff employed after 31 December 1993.

Defined Benefits Scheme

The average employer contribution rate for the financial year was 14% (2005: 15%) of salary for operational staff as well as for non-operational staff employed prior to 1 January 1994.

13. contriButed capital

2006 $000

2006 $000

CONTRIBUTED CAPITAL

Balance 1 July 121,059 121,059

Total 121,059 121,059


14. coMMitMentS, contingent liaBilitieS and contingent aSSetS The estimated amount of commitments, contingent liabilities and contingent assets not provided for in the accounts are:

2006

$000

2005

$000

COMMITMENTS Capital expenditure commitmentsCommitments for the acquisition of property, plant and equipment contracted at reporting date but not recognised as liabilities, payable:Within one year 22,528 32,321Later than one year but not later than five years - 2,000

Total 22,528 34,321

Operating lease commitmentsCommitments for minimum lease payments in relation to non-cancellable operating leases at the reporting date but not recognised as liabilities, payable:Within one year 1,512 901Later than one year but not later than five years 2,797 949Later than five years 711 -

Total 5,020 1,850

Recurrent service commitmentsCommitments for the acquisition of recurrent goods and services not recognised as liabilities, payable:Within one year 3,533 291Later than one year but not later than five years 12,094 -Later than five years 3,662 -

Total 19,289 291

CONTINGENT ASSETS

Commercial resolution and third party claims* 622 1,387

Total 622 1,387

CONTINGENT LIABILITIES

Insurance claims and legal fees 15 4

Total 15 4

* Commercial resolution and third party claims relate to negotiations concerning recovery of expenditure incurred by the Board in a prior financial year expected to be settled within 12 months.



15. noteS to tHe caSH FloW StateMentReconciliation of cash

for the purposes of the Cash flow Statement, cash includes cash on hand, at bank and short-term investments. Cash at the end of the financial year as shown in the Cash Flow Statement is reconciled to the Balance Sheet as follows:

2006

$000

2005

$000

Cash 2,110 3,376

Short term investments 29,837 9,972

Total 31,947 13,348

Reconciliation of net result for the reporting period to net cash inflow from operating activities

Net result for the reporting period 27,612 39,896

Net loss on disposal of fixed assets 319 835

Adjustment of investments to lower of cost and recoverable amount (3,894) (1,328)

Depreciation property, plant and equipment 15,100 14,791

Amortisation of intangible assets 1,344 1,077

Allowance for doubtful debts 23 100

Allowance for inventory obsolescence 28 (58)

Allowance for interest - long term

receivable (1,358) 1,358

Change in operating assets and liabilities:

Decrease/ (increase) in prepayments 170 (226)

Increase / (decrease) in payables 4,137 (271)

Increase in employee benefit provisions 2,885 7,577

(Increase) in inventories (163) (15)

Decrease in property held for sale 24,225

Decrease / (increase) in receivables 24,370 (46,738)

Increase in income received in advance 1,288 856

Net cash inflow from operating activities 71,861 42,079


16. BanK overdraFtThe Board has an overdraft facility of $100,000, which is repayable upon demand and may be cancelled at any time upon review, by the bank. As at balance date this facility had not been utilised. (2005:nil).

17. reSponSiBle perSonSIn accordance with the Directions of the Minister for finance under the Financial Management Act 1994, the names of persons who were Responsible Persons at any time during the financial year are:

responsible Minister : The honorable T holding MP

Board Members : J A elliott - President

S Aziz (appointed 20th September 2005), G T Lake, M J raymond,

IO Spicer AM and J f Sutton (term ended 30 June 2006)

Accountable Officers : P A Akers - Chief Executive Officer

Tony Murphy - Acting Chief Executive Officer from 3 October 2005 to 16 October 2005

Tony Murphy – Acting Chief Executive Officer from 23 December 2005 to 3 January 2006

Shane Wright - Acting Chief Executive Officer from 14 February 2006 to 21 February 2006

Shane Wright – Acting Chief Executive Officer from 31 May 2006 to 4 June 2006

Tony Murphy – Acting Chief Executive Officer from 5 June 2006 to 25 June 2006

18. reMuneration oF reSponSiBle perSonSThe number of responsible Persons is shown below in their relevant income bands:

2006 No.

2006 No.

REMUNERATION BAND

$0 - $9,999 1 -

$10,000 - $19,999 4 5

$30,000 - $39,999 1 1

$230,000 - $239,999 - 1

$0 - $249,999 1 -

$000 $000

Total remuneration of Responsible Persons other than the Responsible Minister:

333 335

The remuneration of the Responsible Minister is reported separately in the financial statements of the Department of Premier and Cabinet.



19. reMuneration oF eXecutive oFFicerSThe remuneration of executive officers is shown below. Base remuneration is exclusive of bonus payments, long-service leave payments, redundancy payments and retirement benefits.

EXECUTIVE OFFICERSREMUNERATION BAND

TOTAL REMUNERATION BASE REMUNERATION

2006 NO.

2005 NO.

2006 NO.

2005 NO.

$90,000 - $99,999 - - - 1$100,000 - $109,999 3 2 4 2$110,000 - $119,999 - 3 - 18$120,000 - $129,999 1 8 18 8$130,000 - $139,999 4 7 1 1$140,000 - $149,999 13 1 8 2$150,000 - $159,999 3 8 1 -$160,000 - $169,999 6 2 1 -$170,000 - $179,999 1 1 - -$180,000 - $189,999 1 - - -$250,000 - $259,999 1 - - -

Total number of executive officers 33 32 33 32

$000 $000 $000 $000 Total Remuneration $4,919 $4,394 $4,289 $3,729

Notes: The above remuneration amounts include leave payments of:-

(i) $88,000 in the $250,000 - $259,999 band, $21,000 in the $160,000 - $169,999 band, $7,000 in the $140,000 - $149,999 band and $8,000 in the $150,000 - $159,999 band in 2006.

(ii) $28,000 in the $150,000 - $159,999 band and $13,000 in the $150,000 -$159,999 band in 2005.

20. related partieSDuring the reporting period there were no related party transactions between responsible Persons, or responsible Person-related entities and the Board.

21. SegMent reportingBusiness

The operations of the Board are confined to one industry, that being emergency management.

Geographical

The operations of the Board are primarily conducted within the Melbourne metropolitan area.


22. iMpactS oF tHe adoption oF auStralian eQuivalentS to international Financial reporting StandardS (a-iFrS)

effect of A-IfrS on the balance sheet as at 1 July 2004

Notes

Superseded Policies * June 2004

$000

Effect of transition to

A-IFRS $000

A-IFRS

$000CURRENT ASSETSCash and cash equivalents 16,056 16,056Prepayments 498 498Inventories 794 794receivables 6,413 114 6,527Property held for sale 24,225 24,225

Total current assets 47,986 114 48,100

NON-CURRENT ASSETSInvestments 56,045 56,045Intangible assets 4,626 4,626Property, plant and equipment

226,309 226,309

Total non-current assets 286,980 286,980Total assets 334,966 114 335,080

CURRENT LIABILITIESPayables 7,014 7,014Income received in advance 132 132Employee benefit provisions 8,153 43,747 51,900

Total current liabilities 15,299 43,747 59,046

NON-CURRENT LIABILITIESIncome received in advance 1,857 1,857Employee benefit provisions 45,433 (44,535) 898

Total non-current liabilities

47,290 (44,535) 2,755

Total liabilities 62,589 (788) 61,801Net assets 272,377 902 273,279

EQUITYContributed capital 13 121,059 121,059Asset revaluation reserves 6 124,941 124,941Accumulated surplus 6 26,377 902 27,279Total equity 272,377 902 273,279

*Reported balance sheet for the financial year ended 30 June 2004



Effect of A-IFRS on the operating statement for the financial year ended 30 June 2005

Notes

SupersededPolicies *June 2005

$000

Effect of transition to

A-IFRS $000

A-IFRS

$000INCOMEContributions 2 229,990 229,990Sale of goods and services 2 22,954 22,954Other incomes 2 64,016 (1,358) 62,658

Total Income 316,960 (1,358) 315,602

EXPENSES Employee benefits 3 178,856 849 179,705Depreciation and amortisation 3,4,5 15,868 15,868Other expenses 3 80,159 (26) 80,133

Total expenses 274,883 823 275,706Net result for the year 6 42,077 (2,181) 39,896

* reported operating statement for 30 June 2005

Effect of A-IFRS on the cash flow statement for the financial year ended 30 June 2005.

There was no impact on the cash flow statement in applying A-IFRS.


Effect of A-IFRS on the balance sheet as at 30 June 2005

Notes

Superseded Policies *June 2005

$000

Effect of transition to A-IFRS

$000

A-IFRS

$000CURRENT ASSETSCash and cash equivalents 7, 15 13,348 13,348Prepayments 724 724Inventories 8 867 867receivables 7, 9 32,925 140 33,065

Total current assets 47,864 140 48,004

NON-CURRENT ASSETSInvestments 7 71,233 71,233receivables 7, 9 20,100 (1,358) 18,742Intangible assets 5 6,998 6,998Property, plant and equipment 4 272,057 272,057

Total non-current assets 370,388 (1,358) 369,030Total assets 418,252 (1,218) 417,034

CURRENT LIABILITIESPayables 7,10 6,743 6,743Income received in advance 7 190 190Employee benefit provisions 11,11A 11,433 47,304 58,737

Total current liabilities 18,366 47,304 65,670

NON-CURRENT LIABILITIESIncome received in advance 7 2,655 2,655Employee benefit provisions 11,11A 48,880 (47,243) 1,637

Total non-current liabilities 51,535 (47,243) 4,292Total liabilities 69,901 61 69,962Net assets 348,351 (1,279) 347,072

EQUITYContributed capital 13 121,059 121,059Asset revaluation reserves 6 138,579 138,579

Accumulated surplus 6 88,713(1,279)

87,434

Total equity 348,351 (1,279) 347,072

*Reported balance sheet for the financial year ended 30 June 2005



Statements of Board Members and Accountable Officers

In the opinion of the Members of the Board of the Metropolitan fire and emergency Services Board:

(a) the accompanying financial statements comprising Operating Statement, Balance Sheet, Statement of Recognised Income and Expense, Cash Flow Statement and notes to and forming part of the financial statements are in accordance with the financial Management Act 1994, including:

(i) complying with Australian Accounting Standards and other mandatory professional reporting requirements; and

(ii) giving a true and fair view of the Board’s financial position as at 30 June 2006 and of the Board’s financial performance for the financial year ended 30 June 2006; and

(b) there are reasonable grounds to believe that the Board will be able to pay its debts as and when they become due and payable;

At the date of this Statement we are not aware of any circumstances that would render any particulars included in the financial statements to be misleading or inaccurate.

Signed at Melbourne this 28th day of August 2006.

In accordance with a duly recorded resolution of the Board.

J A elliott

President

accountaBle oFFicer’S and cHieF Finance and accounting oFFicer’S declarationWe certify that the attached financial statements have been prepared in accordance with Standing Direction 4.2 of the financial Management Act 1994, applicable financial reporting Directions, Australian Accounting Standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the Operating Statement, Balance Sheet, Statement of Recognised Income and Expense, Cash Flow Statement and notes to and forming part of the financial statements, presents fairly the financial transactions during the year ended 30 June 2006 and financial position of the Metropolitan Fire and emergency Services Board as at 30 June 2006.

We are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate.

P A Akers

Chief Executive and Chief Officer Melbourne 28th August 2006

G S Barge

Director, finance and Administration Melbourne


independent audit reportMetropolitan fire and emergency Services Board To the Members of the Parliament of Victoria and Members of the Board

SCOPE

The Financial ReportThe accompanying financial report for the year ended 30 June 2006 of the Metropolitan Fire and Emergency Services Board consists of the operating statement, balance sheet, statement of recognised income and expense, cash flow statement, notes to and forming part of the financial report, and the accountable officer’s and chief finance and accounting officer’s declaration.

Members’ ResponsibilityThe Members of the Board of the Metropolitan fire and emergency Services Board are responsible for:• the preparation and presentation of the financial report and the information it contains, including accounting policies and accounting

estimates• the maintenance of adequate accounting records and internal controls that are designed to record its transactions and affairs, and prevent

and detect fraud and errors.

Audit ApproachAs required by the Audit Act 1994, an independent audit has been carried out in order to express an opinion on the financial report. The audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assusrance as to whether the financial report is free of material misstatement.The audit procedures included:• examining information on a test basis to provide evidence supporting the amounts and disclosures in the financial report• assessing the appropriateness of the accounting policies and disclosures used, and the reasonableness of significant accounting estimates

made by the members• obtaining written confirmation regarding the material representations made in conjunction with the audit• reviewing the overall presentation of information in the financial report.

These procedures have been undertaken to form an opinion as to whether the financial report is presented in all material respects fairly in accordance with Accounting Standards and other mandatory professional reporting requirements in Australia, and the financial reporting requirements of the Financial Management Act 1994, so as to present a view which is consistent with my understanding of the Board’s financial position, and its financial performance and cash flows.The audit opinion expressed in this report has been formed on the above basis.

IndependenceThe Auditor-General’s independence is established by the Constitution Act 1975. The Auditor-General is not subject to direction by any person about the way in which his powers and responsibilities are to be exercised. The Auditor-General and his staff and delegates comply with all applicable independence requirements of the Australian accounting profession.

Audit OpinionIn my opinion, the financial report presents fairly in accordance with applicable Accounting Standards and other mandatory professional reporting requirements in Australia, and the financial reporting requirements of the Financial Management Act 1994, the financial position of the Metropolitan Fire and Emergency Services Board as at 30 June 2006 and its financial performance and cash flows for the year then ended.

Melbourne for JW CAMerON28 August 2006 Auditor-General

Victorian Auditor-General’s Office Level 34, 140 William Street Melbourne, Victoria 3000.Telephone (03) 8601 7000 facsimile (03) 8601 7010 email [email protected] Website www.audit.vic.gov.au

28th August 2006

In accordance with the Victorian State Government Cabinet decision of 18 October 1982, all Board Members and the following Appointees and Officers have completed a register of interests.

P A Akers C P eng, fAIM

G S Barge fCPA

Pecuniary Interests Of Public Office Holders


compliance index to disclosure requirements 2005/06

The Annual report of the Metropolitan fire and emergency Services Board is prepared in accordance with the financial Management Act 1994 and the Directions of the Minister for finance. This index has been prepared to facilitate identification of compliance with statutory disclosure requirements.

diScloSurerePOrT Of OPerATIONS

Charter and Purpose Manner of establishment and relevant Minister - Objectives, functions powers and duties - Services provided and persons or sections of community served -

Management And structures

Names of governing Board members, Audit Committee, and Chief executive - Names of senior office holders and brief description of each office - Chart setting out organisational structure - Workforce data and application of merit and equity principles -

Financial and Other information

Names of governing Board members, AudOperational and planned objectives for the year and performance against those objectives - events subsequent to balance date - full details of each consultancy > $100,000 - Statement of implementation and compliance with National Competition Policy -

fINANCIAL STATeMeNTS

Preparation

Statement of preparation on an accrual basis - Statement of compliance with Australian Accounting standards and associated pronouncements - Statement of compliance with accounting policies issued by Minister for finance -

Operating Statement

Statement of financial operations for the year - Operating income by class - Investment income by class - Other material income by class including sale of non-goods assets and contributions of assets - Material income arising from exchange of goods or services - Depreciation, amortisation or diminution in value - Bad debts - Net increment or decrement on the revaluation of each category of assets - Audit expense -

Balance Sheet

Balance sheet - Cash at bank or in hand - Inventories by class - receivables, including trade debtors, loans and other debtors - Property, plant and equipment - Other assets including prepayments - Overdrafts - Trade and other creditors - Provisions, including employee entitlements - reserves and transfers to and from reserves, shown separately -

Cash Flow Statement

A cash flow statement during the year -

Notes to the Financial Statements

Amounts written off - Contingent liabilities - Commitments for expenditure - employee superannuation funds - Transactions with responsible Persons and their related parties -


AFAC Australasian fire Authorities Council

AIRC Australian Industrial relations Commission

BEST Bureau of emergency Service Telecommunications

CBR Chemical, Biological and radiological

CFA Country fire Authority

CFO Chief Fire Officer

DCFO Deputy Chief Fire Officer

DHS Department of human Services

EBA enterprise Bargaining Agreement

EEO equal employment Opportunity

EMA emergency Management Australia

EMR emergency Medical response

EPA environment Protection Authority

ESTA emergency Services Telecommunications Authority

FES fire equipment Services

GIS Geographical Information Systems

KRA Key Result Areas

MFD Metropolitan fire District

MMR Metropolitan Mobile radio

MoU Memorandum of understanding

OESC Office of the Emergency Services Commissioner

OH&S Occupational health and Safety

SES State emergency Service

UFU United Firefighters’ Union

USAR urban Search and rescue


abbreviations and acronyms

central Zone1 Eastern Hill 456 Albert Street, east Melbourne 3002

2 West Melbourne 60 Batman Street, West Melbourne 3003

3 Carlton 106 Bouverie Street, Carlton 3053

10 Richmond 55 Church Street, richmond 3121

18 Hawthorn 45 William Street, hawthorn 3122

35 Windsor 156 Albert Street, Windsor 3181

38 South Melbourne 26 Moray Street, South Melbourne 3205

39 Port Melbourne 425 Williamstown road, Port Melbourne 3207

northern Zone4 Brunswick 24 Blyth Street, Brunswick 3056

5 Broadmeadows 338 Camp road, Broadmeadows 3047

6 Pascoe Vale 345A Gaffney Street, Pascoe Vale 3044

7 Thomastown 92 Mahoneys road, Thomastown 3074

9 Somerton 10 Somerton Park Drive, Campbellfield 3061

11 Epping 28 Childs road, epping 3076

12 Preston 471 Bell Street, Preston 3072

13 Northcote 3 Mitchell Street, Northcote 3070

14 Bundoora 1083 Plenty road, Bundoora 3083

15 Heidelberg 161 Bell Street, heidelberg 3084

16 Greensborough 141 Grimshaw Street, Greensborough 3088

19 North Balwyn 312 Doncaster road, North Balwyn 3104

30 Templestowe 178 foote Street, Templestowe 3106

Southern Zone20 Box Hill 1052 Maroondah highway, Box hill 3128

22 Ringwood 272 Maroondah highway, ringwood 3134

23 Burwood 25 highbury road, Burwood 3125

24 Malvern 80 Waverley road, east Malvern 3145

25 Oakleigh 100 Atherton road, Oakleigh 3166

26 Croydon 14A Croydon road, Croydon 3136

27 Nunawading 364 Maroondah highway, Nunawading 3131

28 Vermont South 721 highbury road, Vermont South 3133

29 Clayton 529 Clayton road, Clayton 3169

31 Glen Waverley 645 ferntree Gully road, Wheelers hill 3150

32 Ormond 311 North road, Caulfield South, 3162

33 Mentone 103 Nepean highway, Mentone 3194

34 Highett 150 Wickham road, highett 3190

Western Zone40 Laverton 75 railway Avenue, Laverton 3028

41 St Albans 9 Taylors road, St Albans 3021

42 Newport 231 Melbourne road, Newport 3015

43 Deer Park 782 Ballarat road, Deer Park 3023

44 Sunshine 30 McIntyre road, Sunshine 3020

45 Spotswood 8 highgate Street, Spotswood 3015

46 Altona 7 Akuna Street, Altona 3018

47 Footscray 69 Droop Street, footscray 3011

48 Taylors Lakes 470 Melton highway, Taylors Lakes 3038

49 North Laverton Cnr Boundary and fairbairn roads, North Laverton 3026

50 Ascot Vale 258 union road, Moonee Ponds 3039

51 Keilor 145 Milleara road, East Keilor 3033

52 Tullamarine 1 Western Avenue, Tullamarine 3049

Zone HeadquartersCentral 456 Albert Street, east Melbourne, Victoria 3002

Southern rear, 100 Atherton road, Oakleigh 3166

Northern 1st floor, 152 Plenty road, Preston 3072

Western rear, 30 McIntryre road, Sunshine 3020

Metropolitan Fire district Station locations and Zone Boundaries


department locationsCommunity Safety 433 Smith Street, Fitzroy North 3068

Fire Equipment Services 42-44 Terracotta Drive, Blackburn 3130

Training and Education 433 Smith Street, Fitzroy North 3068

Mechanical Engineering 11-13 Anderson road, Thornbury 3071

Alarm Assessment Services 340 Albert Street, east Melbourne 3002

Emergency Management 340 Albert Street, east Melbourne 3002


Contributing towards making Melbourne one of the safest communities in the world.