Annual Report fi989–88 · 2019. 11. 15. · Total current assets 501 784 487 877 Non current...

Annual Report 2010–11

Part B

Department of Public Works financial statements Financial Summary 98

Statement of Comprehensive Income —Budget versus Actual Comparison 99

Statement of Financial Position—Budget versus Actual Comparison 100

Notes to the Statement of Comprehensive Income 101

Notes to the Statement of Financial Position 101

Total income from continuing operations by major departmental services, CBUs and SSPs 102

Total expenses from continuing operations by major departmental services, CBUs and SSPs 102

Total income from continuing operations by category 103

Total expenses from continuing operations by category 103

Introduction to financial statements 104

Department of Public Works financial statements 2010–11 105Statement of Comprehensive Income 106

Statement of Financial Position 107

Statement of Changes in Equity 108

Statement of Cash Flows 109

Statement of Comprehensive Income by Major Departmental Services, CBUs and SSPs 110

Statement of Assets and Liabilities by Major Departmental Services, CBUs and SSPs 118

Notes to and forming part of the Financial Statements 2010–11 126

Certificate of Department of Public Works 170

Independent Auditor's Report 171

Financial Summary

The department comprises the departmental entity, six commercialised business units and two shared service providers, consequently any comment on the department’s performance must take into consideration the diverse activities carried on by the department.

A statement of comprehensive income and a statement of financial position for the 2010–11 financial year for the department are provided on the following three pages with explanations of significant variances from the published budget.

Overall, the operating loss after income tax was $24.248 million which was an $19.885 million increase in the loss from approved budget.

The department operated within its appropriation for the year and its services funding requirements were $21.435 million less than budget. Throughout the year the department maintained a close supervision of its performance against budget.

Financial liabilities and payables represent almost 79 per cent of the department’s liabilities. The majority of loan balances are at fixed rates arranged through the Queensland Treasury Corporation. The loans mainly relate to capital works and for the purchase of motor vehicles by QFleet. A regular review is undertaken of the relevant debt pools as to the suitability of the loans.

Annual leave and long service leave entitlements are held at a whole-of-Government level in central schemes, however, the department actively manages the accrued entitlements for its employees.

The department’s contingent liabilities relate to a number of litigation cases filed in various Queensland jurisdictions naming the Department of Public Works as defendant. The maximum exposure of the department is $10 000 per instance as amounts above this value are covered by the Queensland Government Insurance Fund.

Other contingent liabilities held by the department relate to bank guarantees for CITEC. Bank guarantees are required by certain clients before a contract is established. The event of a call down on the guarantees is considered highly unlikely.

Statement by the Chief Finance Officer In accordance with the requirements of the Financial Accountability Act 2009, the Chief Finance Officer has provided the Director-General with a statement confirming the financial internal controls of the department are operating efficiently, effectively and economically in conformance with section 57 of the Financial and Performance Management Standard 2009.

The Chief Finance Officer has fulfilled the minimum responsibilities as required by the Financial Accountability Act 2009.

Department of Public Works Financial statements—98 Annual Report 2010–11

Statement of Comprehensive Income —Budget versus Actual Comparisonfor the year ended 30 June 2011

Published Budget Actual2011 2011

Notes $'000 $'000

Income from continuing operations

Revenue

Departmental service revenue 1 93 776 72 341

User charges 2 321 077 2 166 914

Grants and other contributions 2 16 526 36 374

Other revenue 3 12 045 21 739

Gains

Gain/(loss) on sale of property, plant and equipment (13) 361

-

Total income from continuing operations 2 443 411 2 297 728

Expenses from continuing operations

Employee expenses 661 298 647 709

Supplies and services 1 586 353 1 404 864

Grants and subsidies 4 4 284 5 139

Depreciation and amortisation 162 214 156 169

Impairment losses 5 - 34 022

Finance/borrowing costs 25 221 25 123

Other expenses 6 9 339 42 062

Total expenses from continuing operations 2 448 709 2 315 087

Operating result from continuing operations before (5 298) (17 359)

income tax

Income tax benefit/(expense) 7 935 (6 890)

Operating result from continuing operations after (4 363) (24 248)

income tax

Other comprehensive income

Increase/(decrease) in asset revaluation surplus 187 882

Total other comprehensive income - 187 882

Other comprehensive income—income tax expense - -

Total comprehensive income (4 363) 163 634


Statement of Financial Position—Budget versus Actual Comparisonfor the year ended 30 June 2011

Published Budget Actual2011 2011

Notes $'000 $'000

Current assetsCash and cash equivalents 138 808 129 004Receivables 268 049 236 614Inventories 8 45 229 66 089Other 43 643 47 875

495 729 479 582

Non current assets classified as held for sale 9 6 055 8 295Total current assets 501 784 487 877

Non current assetsReceivables 10 7 426 45 846Deferred tax assets 20 869 19 250Intangible assets 11 224 228 177 990Property, plant and equipment 3 357 895 3 420 115Other 1 350 3 437

Total non current assets 3 611 768 3 666 638

Total assets 4 113 552 4 154 515

Current LiabilitiesPayables 12 202 292 113 261Other financial liabilities 40 715 37 115Accrued employee benefits 18 425 18 714Provisions 13 957 7 885Tax liabilities 14 3 379 5 922Other 15 61 687 96 208

Total current liabilities 327 455 279 104

Non current liabilitiesOther financial liabilities 381 947 369 565Deferred tax liabilities 9 054 8 617Other 16 177 3 239

Total non current liabilities 391 178 381 421

Total liabilities 718 633 660 525

Net assets 3 394 919 3 493 990

EquityContributed equity 1 438 714 1 526 541Accumulated surplus 712 597 707 892Asset revaluation surplus 1 243 608 1 259 557

Total equity 3 394 919 3 493 990


Notes The Published Budget figures are a summation of the figures of the Department of Public Works, business units and shared service providers as per the Service Delivery Statement (SDS) and thus do not include elimination entries.

Notes to the Statement of Comprehensive Income:1 The decrease in the requirement for service revenue was mainly due to additional rent revenue.

2 The increase is mainly due to additional Corptech funding required to subsidise the reduction in annual user charges and increased funding for the Corporate Solutions Program (CSP).

3 The increase is mainly due to a higher number of cost recovery items, rent supplementation and a change in the classification of SDS's catalogue advertising to Other revenue instead of offsetting against expenditure.

4 The increase is mainly due to funding the design works on the Riverbank Redevelopment Stage II program in Rockhampton received after the Published Budget.

5 The increase is mainly due to the impairment expense arising from the revaluation of internally generated software assets by Corptech.

6 The increase mainly related to the write down of a number of intangible assets by Corptech.

7 The higher tax is mainly related to increased profits for QFleet and QBuild.

Notes to the Statement of Financial Position:8 The increase reflects greater volumes of work and the prior year closing audited balance for QBuild.

9 The increase is due to higher than anticipated residential and heritage properties anticipated to sell in the 2011–12 financial year. This increase is partly offset by a commercial property not anticipated to sell in the 2011–12 financial year.

10 The increase is due to the recognition of a non-current receivable for CSIRO for a pre-paid lease in relation to the Ecosciences Precinct at Boggo Road.

11 The decrease is largely due to the impairment and write-off of Corptech assets, which is partially offset by a reduction in Corptech’s amortisation due to the impairments/write-offs and the re-lifing of Corptech’s internally generated assets from 10 to 15 years in 2010–11.

12 The decrease is mainly due to inter-business unit elimination entries not recognised in the budget figures.

13 The increase is mainly due to Project Services providing for voluntary separations.

14 The higher tax liability is mainly as a result of higher than anticipated profits by QFleet.

15 The higher than budgeted unearned revenue figure is due to higher volumes of work and a higher work in progress balance than budgeted at year end for QBuild.

16 The actual figure includes lease incentive liabilities for Transport House and Capital Hill recognised in the departmental entity.


Total expenses from continuing operations by major departmental services, CBUs and SSPs

Total income from continuing operations by major departmental services, CBUs and SSPs


QBuild, $948.8 million (36.2%)

Project Services, $196.4 million (7.5%)

QFleet, $233.3 million (8.9%)

Goprint, $12.0 million (0.4%)

SDS, $67.6 million (2.6%)

CITEC, $173.0 million (6.6%) Building procurement and asset management, $482.2 million (18.4%)

Procurement services, $19.8 million (0.7%)

Information and communication technology (ICT) strategies, $31.6 million (1.2%)

Public records management and advisory services, $13.1 million (0.5%)

Access to government services and information, $62.8 million (2.4%)

SSA, $175.6 million (6.7%)

CorpTech, $138.7 million (5.3%)

General - not attributed, $67.0 million (2.6%)

Building procurement and asset management, $482.3 million (18.3%)

Procurement services, $19.8 million (0.8%)

Information and communication technology (ICT) strategies, $31.6 million (1.2%)

Public records management and advisory services, $13.1 million (0.5%)

Access to government services and information, $62.8 million (2.4%)

SSA, $172.4 million (6.5%)

CorpTech, $180.3 million (6.8%)

QBuild, $935.8 million (35.5%)

Project Services, $192.9 million (7.3%)

QFleet, $214.2 million (8.1%)

Goprint, $12.3 million (0.5%)

SDS, $68.6 million (2.6%)

CITEC, $183.5 million (7.0%)

General - not attributed, $67.0 million (2.5%)

Total expenses from continuing operations by category

Total income from continuing operations by category


Departmental service revenue $72.3 million (3.2%)Grants and other contributions $36.4 million (1.6%)

Other revenue $21.7 million (0.9%) Gain on sale of property, plant and equipment $0.4 million (0.0%)

User charges $2,166.9 million (94.3%)

Employee expenses $647.7 million (28.0%)

Supplies and services $1,404.9 million (60.7%)

Grants and subsidies $5.1 million (0.2%)

Depreciation and amortisation $156.2 million (6.7%)

Impairment losses $34.0 million (1.5%)

Finance/borrowing costs $25.1 million (1.1%)

Other expenses $42.1 million (1.8%)

Introduction to financial statements

The following financial statements have been prepared by the department and audited by the Auditor-General of Queensland.

• Statement of Comprehensive Income

• Statement of Financial Position

• Statement of Cash Flows

• Statement of Changes in Equity

• Statement of Comprehensive Income by major departmental service, CBUs and SSPs

• Statement of Assets and Liabilities by major departmental service, CBUs and SSPs

• Notes to and forming part of the financial statements.

They are produced in accordance with the provisions and prescribed requirements of the Financial Accountability Act 2009, and in compliance with Australian Accounting Standards.

The 2010–11 financial statements have been prepared to provide the following users with information concerning the department’s financial performance for the year and its financial position at year end:

• The Minister for Government Services, Building Industry and Information and Communication Technology

• Members of the Legislative Assembly of Queensland

• industry and the business community in general

• various government and semi-government instrumentalities

• other interested parties.

The Department of Public Works is committed to providing high standards in financial administration and recognises the need to satisfy statutory requirements for adequate disclosure.


Department of Public Works financial statements 2010–11

General InformationThese financial statements cover the Department of Public Works

The Department of Public Works is a Queensland Government Department established under the Public Service Act 2008.

The department is controlled by the State of Queensland which is the ultimate parent.

The head office and principal place of business of the department is: 80 George StreetBrisbane QLD 4000

A description of the nature of the department’s operations and its principal activities is included in the Notes to the financial statements.

For information in relation to the department’s financial statement, please call 07 322 46520 or visit the departmental website www.publicworks.qld.gov.au

Amounts shown in these financial statements may not add to the correct sub-totals due to rounding.

Department of Public Works financial statements 2010–11 105Statement of Comprehensive Income 106

Statement of Financial Position 107

Statement of Changes in Equity 108

Statement of Cash Flows 109

Statement of Comprehensive Income by Major Departmental Services, CBUs and SSPs 110

Statement of Assets and Liabilities by Major Departmental Services, CBUs and SSPs 118

Notes to and forming part of the Financial Statements 2010–11 126

Certificate of Department of Public Works 170

Independent Auditor's Report 171


DEPARTMENT OF PUBLIC WORKS Statement of Comprehensive Income for the year ended 30 June 2011

Notes

2011

$'0002010$'000


Revenue Departmental services revenue 2 72,341 89,570User charges 3 2,166,914 2,093,176Grants and other contributions 4 36,374 34,704Other revenue 5 21,739 16,705

Gains Gain on sale of property, plant and equipment 6 361 5,417

Total income from continuing operations 2,297,728 2,239,572

Expenses from continuing operations Employee expenses 7 647,709 610,666Supplies and services 8 1,404,864 1,406,970Grants and subsidies 9 5,139 3,231Depreciation and amortisation 10 156,169 151,885Impairment losses 11 34,022 700Finance/borrowing costs 12 25,123 23,840Other expenses 13 42,062 26,499

Total expenses from continuing operations 2,315,087 2,223,791

Operating result from continuing operations before income tax (17,359) 15,781 Income tax benefit/(expense) 36 (6,890) 1,481

Operating result from continuing operations after income tax (24,248) 17,263

Other comprehensive income Increase/(decrease) in asset revaluation surplus 187,882 (152,005)

Total other comprehensive income 187,882 (152,005)

Total comprehensive income 163,634 (134,742)

The accompanying notes form part of these statements


Statement of Comprehensive Income

DEPARTMENT OF PUBLIC WORKS Statement of Comprehensive Income for the year ended 30 June 2011

Notes

2011

$'0002010$'000


Revenue Departmental services revenue 2 72,341 89,570User charges 3 2,166,914 2,093,176Grants and other contributions 4 36,374 34,704Other revenue 5 21,739 16,705

Gains Gain on sale of property, plant and equipment 6 361 5,417

Total income from continuing operations 2,297,728 2,239,572

Expenses from continuing operations Employee expenses 7 647,709 610,666Supplies and services 8 1,404,864 1,406,970Grants and subsidies 9 5,139 3,231Depreciation and amortisation 10 156,169 151,885Impairment losses 11 34,022 700Finance/borrowing costs 12 25,123 23,840Other expenses 13 42,062 26,499

Total expenses from continuing operations 2,315,087 2,223,791

Operating result from continuing operations before income tax (17,359) 15,781 Income tax benefit/(expense) 36 (6,890) 1,481

Operating result from continuing operations after income tax (24,248) 17,263



Total comprehensive income 163,634 (134,742)


DEPARTMENT OF PUBLIC WORKS Statement of Financial Position as at 30 June 2011

Notes

Restatedas at 1 July

2011$'000

2010$'000

2009$'000

Current assets Cash and cash equivalents 14 129,004 174,905 174,377Receivables 15 236,614 268,139 250,345Inventories 16 66,089 66,114 40,472Tax assets 17 22 3,786Other 18 47,875 47,754 43,525

479,582 556,934 512,504 Non current assets classified as held for sale 19 8,295 2,300 12,702

Total current assets 487,877 559,234 525,206

Non current assets Receivables 15 45,846 7,576 7,656Deferred tax assets 17 19,250 17,361 10,713Intangible assets 20 177,990 232,974 204,539Property, plant and equipment 21 3,420,115 3,087,531 3,147,247Other 18 3,437 2,021 1,329

Total non current assets 3,666,638 3,347,463 3,371,484

Total assets 4,154,515 3,906,697 3,896,690

Current liabilities Payables 22 113,261 188,496 214,705Other financial liabilities 23 37,115 52,117 34,649Accrued employee benefits 24 18,714 14,238 23,370Provisions 25 7,885 4,732 1,259Tax liabilities 26 5,922 669 Other 27 96,208 97,593 81,716

Total current liabilities 279,104 357,844 355,700

Non current liabilities Other financial liabilities 23 369,565 329,589 347,722Deferred tax liabilities 26 8,617 7,041 2,589Other 27 3,239 4,553 4,111

Total non current liabilities 381,421 341,184 354,422

Total liabilities 660,525 699,028 710,122

Net assets 3,493,990 3,207,669 3,186,568

Equity Contributed equity 1,526,541 1,389,391 1,224,338Accumulated surplus 707,892 726,924 718,622Asset revaluation surplus 28 1,259,557 1,091,355 1,243,608

Total equity 3,493,990 3,207,669 3,186,568



Statement of Financial Position

DEPARTMENT OF PUBLIC WORKS Statement of Changes in Equity for the year ended 30 June 2011

Notes

2011

$'0002010$'000

Contributed equity

Balance as at 1 July 1,389,391 1,224,338

Transactions with owners as owners: Appropriated equity injections 51,943 154,311Equity withdrawals (29,132) Assets assumed/liabilities relinquished 136,684 21,842Assets relinquished/liabilities assumed (22,344) (11,100)

Balance as at 30 June 1,526,541 1,389,391

Accumulated surplus

Balance as at 1 July 726,924 718,622Operating result from continuing operations (24,248) 17,263

Nonowner changes in equity: Transfer on disposal from asset revaluation surplus 19,680 249

Transactions with owners as owners: Dividends paid or declared (19,497) (13,657)Inter Services/Activity Eliminations 5,033 4,447

Balance as at 30 June 707,892 726,924

Asset revaluation surplus


Total other comprehensive income: Increase/(decrease) on revaluation of: Land 96,783 (106,354)Buildings 73,710 (17,931)Heritage and cultural assets (566) (16,687)Infrastructure 17,955 (11,033)Transfer on disposal to accumulated surplus (19,680) (249)

Balance as at 30 June 28 1,259,557 1,091,355


Statement of Changes in Equity


DEPARTMENT OF PUBLIC WORKS Statement of Changes in Equity for the year ended 30 June 2011

Notes

2011

$'0002010$'000

Contributed equity


Transactions with owners as owners: Appropriated equity injections 51,943 154,311Equity withdrawals (29,132) Assets assumed/liabilities relinquished 136,684 21,842Assets relinquished/liabilities assumed (22,344) (11,100)

Balance as at 30 June 1,526,541 1,389,391

Accumulated surplus

Balance as at 1 July 726,924 718,622Operating result from continuing operations (24,248) 17,263

Nonowner changes in equity: Transfer on disposal from asset revaluation surplus 19,680 249

Transactions with owners as owners: Dividends paid or declared (19,497) (13,657)Inter Services/Activity Eliminations 5,033 4,447

Balance as at 30 June 707,892 726,924

Asset revaluation surplus


Total other comprehensive income: Increase/(decrease) on revaluation of: Land 96,783 (106,354)Buildings 73,710 (17,931)Heritage and cultural assets (566) (16,687)Infrastructure 17,955 (11,033)Transfer on disposal to accumulated surplus (19,680) (249)

Balance as at 30 June 28 1,259,557 1,091,355


DEPARTMENT OF PUBLIC WORKS Statement of Cash Flows for the year ended 30 June 2011

Notes

2011

$'0002010$'000

Cash flows from operating activities Inflows: Output receipts 71,901 76,401User charges 2,056,833 2,086,223Grants and other contributions 17,808 24,752GST collected from customers 171,809 165,361GST input tax credits from ATO 108,196 109,709Interest receipts 3,764 1,740Other 52,103 10,119

Outflows: Employee expenses (613,506) (615,308)Supplies and services (1,444,874) (1,490,094)Grants and subsidies (5,139) (3,351)Finance/borrowing costs (21,381) (19,717)Insurance premiums (6,061) (4,021)Taxation equivalents (1,949) 2,322GST paid to suppliers (150,087) (164,179)GST remitted to ATO (132,667) (128,105)Other (15,177) (17,022)

Net cash provided by (used in) operating activities 29(b) 91,572 34,831

Cash flows from investing activities Inflows: Sales of property, plant and equipment 12,838 31,994

Outflows: Payments for property, plant and equipment (114,388) (167,835)Payments for intangibles (25,556) (43,409)

Net cash provided by (used in) investing activities (127,106) (179,249)

Cash flows from financing activities Inflows: Borrowings 95,899 162,624Transfers (23) Equity injections 55,891 165,547

Outflows: Dividends paid (20,235) (12,804)Finance lease payments (1,581) (974)Borrowing redemptions (111,186) (171,026)Equity withdrawals (29,132) 1,579

Net cash provided by (used in) financing activities (10,366) 144,946

Net increase (decrease) in cash and cash equivalents (45,900) 528Cash and cash equivalents at beginning of financial year 174,905 174,377

Cash and cash equivalents at end of financial year 29(a) 129,004 174,905


Statement of Cash Flows


DEPARTMENT OF PUBLIC WORKS Statement of Comprehensive Income by Major Departmental Services, CBUs and SSPs for the year ended 30 June 2011

Building Procurement and Asset Management

Procurement Services

2011$'000

2010$'000

2011$'000

2010$'000

Income from continuing operations *

Revenue Departmental services revenue (24,072) (3,940) 12,744 14,248User charges 504,325 463,878 7,042 4,507Grants and other contributions 41 Other revenue 1,607 1,709

Gains Gain on sale of property, plant and equipment 349 5,395

Total income from continuing operations 482,249 467,041 19,786 18,755

Expenses from continuing operations * Employee expenses 22,366 24,333 12,184 11,285Supplies and services 397,830 384,565 6,900 6,753Grants and subsidies 3,141 1,844 Depreciation and amortisation 52,945 45,029 679 717Impairment losses 924 153 Finance/borrowing costs 4,143 5,574 Other expenses 914 7,794 23 4

Total expenses from continuing operations 482,263 469,292 19,785 18,759

Operating result from continuing operations before income tax

(13) (2,251) (4)

Income tax benefit/(expense)

Operating result from continuing operations after income tax

(13) (2,251) (4)



Total comprehensive income 187,869 (154,255) (4)

* Allocation of income and expenses to corporate services (disclosure only): Income 5,723 10,554 266 1,173Expenses 5,723 10,554 266 1,173

Statement of Comprehensive Income by Major Departmental Services, CBUs and SSPs


DEPARTMENT OF PUBLIC WORKS Statement of Comprehensive Income by Major Departmental Services, CBUs and SSPs for the year ended 30 June 2011

Building Procurement and Asset Management

Procurement Services

2011$'000

2010$'000

2011$'000

2010$'000


Revenue Departmental services revenue (24,072) (3,940) 12,744 14,248User charges 504,325 463,878 7,042 4,507Grants and other contributions 41 Other revenue 1,607 1,709



Expenses from continuing operations * Employee expenses 22,366 24,333 12,184 11,285Supplies and services 397,830 384,565 6,900 6,753Grants and subsidies 3,141 1,844 Depreciation and amortisation 52,945 45,029 679 717Impairment losses 924 153 Finance/borrowing costs 4,143 5,574 Other expenses 914 7,794 23 4



(13) (2,251) (4)



(13) (2,251) (4)



Total comprehensive income 187,869 (154,255) (4)

* Allocation of income and expenses to corporate services (disclosure only): Income 5,723 10,554 266 1,173Expenses 5,723 10,554 266 1,173

DEPARTMENT OF PUBLIC WORKS Statement of Comprehensive Income by Major Departmental Services, CBUs and SSPs (continued) for the year ended 30 June 2011

Information and Communication Technology (ICT)

Strategies

Public Records Management and Advisory

Services

2011$'000

2010$'000

2011$'000

2010$'000


Revenue Departmental services revenue 30,002 29,122 12,900 13,355User charges 635 111 219 155Grants and other contributions Other revenue 940 11 5

Gains Gain on sale of property, plant and equipment


Expenses from continuing operations * Employee expenses 10,465 9,178 5,033 4,628Supplies and services 20,399 18,859 7,836 8,530Grants and subsidies 440 83 Depreciation and amortisation 256 1,123 227 347Impairment losses Finance/borrowing costs Other expenses 18 18 23 10



(17)



(17)

Other comprehensive income Increase/(decrease) in asset revaluation surplus

Total other comprehensive income

Total comprehensive income (17)

* Allocation of income and expenses to corporate services (disclosure only): Income 466 1,464 200 704Expenses 466 1,464 200 704



Access to Government Services and Information

Shared Service Agency

2011$'000

2010$'000

2011$'000

2010$'000


Revenue Departmental services revenue 40,767 36,785 User charges 21,540 16,275 172,900 174,932Grants and other contributions 467 1,038 2,443 4,664Other revenue 9 683 243 261

Gains Gain on sale of property, plant and equipment 1 1


Expenses from continuing operations Employee expenses 34,312 31,161 95,951 107,345Supplies and services 21,251 17,004 72,691 67,266Grants and subsidies 1,558 1,304 Depreciation and amortisation 4,264 3,626 2,210 2,883Impairment losses 13 7 (23) (676)Finance/borrowing costs 3 13Other expenses 1,405 1,355 1,545 1,401



(22) 325 3,208 1,625



(22) 325 3,208 1,625



Total comprehensive income (22) 325 3,208 1,625

.





2011$'000

2010$'000

2011$'000

2010$'000


Revenue Departmental services revenue 40,767 36,785 User charges 21,540 16,275 172,900 174,932Grants and other contributions 467 1,038 2,443 4,664Other revenue 9 683 243 261



Expenses from continuing operations Employee expenses 34,312 31,161 95,951 107,345Supplies and services 21,251 17,004 72,691 67,266Grants and subsidies 1,558 1,304 Depreciation and amortisation 4,264 3,626 2,210 2,883Impairment losses 13 7 (23) (676)Finance/borrowing costs 3 13Other expenses 1,405 1,355 1,545 1,401



(22) 325 3,208 1,625



(22) 325 3,208 1,625



Total comprehensive income (22) 325 3,208 1,625

.


CorpTech

QBuild

2011$'000

2010$'000

2011$'000

2010$'000


Revenue Departmental services revenue User charges 117,282 107,571 936,723 869,441Grants and other contributions 19,622 16,462 10,198 8,897Other revenue 1,739 542 1,838 1,536

Gains Gain on sale of property, plant and equipment 2 2 3


Expenses from continuing operations Employee expenses 41,039 35,254 227,887 206,718Supplies and services 72,387 59,117 701,026 671,953Grants and subsidies Depreciation and amortisation 10,825 18,312 3,551 2,477Impairment losses 29,581 316 237 156Finance/borrowing costs 1,780 2,001Other expenses 26,438 6,011 1,337 1,384



(41,627) 5,567 12,940 (4,814)

Income tax benefit/(expense) (3,347) 1,288


(41,627) 5,567 9,593 (3,526)



Total comprehensive income (41,627) 5,567 9,593 (3,526)



Project Services

QFleet

2011$'000

2010$'000

2011$'000

2010$'000


Revenue Departmental services revenue User charges 192,912 208,323 231,589 231,682Grants and other contributions Other revenue 3,463 2,560 1,710 1,147



Expenses from continuing operations Employee expenses 76,040 72,702 10,095 8,974Supplies and services 114,479 130,279 109,284 112,797Grants and subsidies Depreciation and amortisation 729 755 68,734 66,742Impairment losses (126) (166) 3,383 926Finance/borrowing costs 16,366 14,317Other expenses 1,788 1,458 6,299 6,057



3,467 5,856 19,142 23,024

Income tax benefit/(expense) (1,035) (1,760) (5,754) (1,106)


2,432 4,095 13,389 21,918



Total comprehensive income 2,432 4,095 13,389 21,918



Project Services

QFleet

2011$'000

2010$'000

2011$'000

2010$'000


Revenue Departmental services revenue User charges 192,912 208,323 231,589 231,682Grants and other contributions Other revenue 3,463 2,560 1,710 1,147



Expenses from continuing operations Employee expenses 76,040 72,702 10,095 8,974Supplies and services 114,479 130,279 109,284 112,797Grants and subsidies Depreciation and amortisation 729 755 68,734 66,742Impairment losses (126) (166) 3,383 926Finance/borrowing costs 16,366 14,317Other expenses 1,788 1,458 6,299 6,057



3,467 5,856 19,142 23,024

Income tax benefit/(expense) (1,035) (1,760) (5,754) (1,106)


2,432 4,095 13,389 21,918



Total comprehensive income 2,432 4,095 13,389 21,918


Goprint

Sales and Distribution

Services (SDS)

2011$'000

2010$'000

2011$'000

2010$'000


Revenue Departmental services revenue User charges 8,053 8,395 65,226 70,039Grants and other contributions 3,600 3,600 12Other revenue 348 392 2,339 2,465

Gains Gain on sale of property, plant and equipment 3


Expenses from continuing operations Employee expenses 4,980 5,262 9,165 8,536Supplies and services 6,884 7,355 58,715 63,419Grants and subsidies Depreciation and amortisation 449 455 367 318Impairment losses 20 (37)Finance/borrowing costs 236 221Other expenses 30 43 92 (534)



(342) (727) (1,026) 592

Income tax benefit/(expense) 112 284


(342) (727) (914) 875



Total comprehensive income (342) (727) (914) 875



CITEC

General Not Attributed

2011$'000

2010$'000

2011$'000

2010$'000


Revenue Departmental services revenue User charges 171,683 176,853 60,720 37,261Grants and other contributions 3 33Other revenue 1,364 1,103 6,272 4,930



Expenses from continuing operations Employee expenses 65,044 63,064 33,148 22,226Supplies and services 104,070 111,994 32,557 18,930Grants and subsidies Depreciation and amortisation 10,366 8,813 566 288Impairment losses 8 21 4 Finance/borrowing costs 2,593 1,714 Other expenses 1,413 1,142 737 356



(10,448) (8,790) (17) 427

Income tax benefit/(expense) 3,134 2,777


(7,314) (6,014) (17) 427



Total comprehensive income (7,314) (6,014) (17) 427



CITEC


2011$'000

2010$'000

2011$'000

2010$'000


Revenue Departmental services revenue User charges 171,683 176,853 60,720 37,261Grants and other contributions 3 33Other revenue 1,364 1,103 6,272 4,930



Expenses from continuing operations Employee expenses 65,044 63,064 33,148 22,226Supplies and services 104,070 111,994 32,557 18,930Grants and subsidies Depreciation and amortisation 10,366 8,813 566 288Impairment losses 8 21 4 Finance/borrowing costs 2,593 1,714 Other expenses 1,413 1,142 737 356



(10,448) (8,790) (17) 427

Income tax benefit/(expense) 3,134 2,777


(7,314) (6,014) (17) 427



Total comprehensive income (7,314) (6,014) (17) 427


Inter Services/

Activity Eliminations

Total

2011$'000

2010$'000

2011$'000

2010$'000


Revenue Departmental services revenue 72,341 89,570User charges (323,935) (276,247) 2,166,914 2,093,176Grants and other contributions 36,374 34,704Other revenue (132) (638) 21,739 16,705


Total income from continuing operations (324,067) (276,885) 2,297,728 2,239,572

Expenses from continuing operations * Employee expenses 647,709 610,666Supplies and services (321,445) (271,851) 1,404,864 1,406,970Grants and subsidies 5,139 3,231Depreciation and amortisation 156,169 151,885Impairment losses 34,022 700Finance/borrowing costs 25,123 23,840Other expenses 42,062 26,499

Total expenses from continuing operations (321,445) (271,851) 2,315,087 2,223,791


(2,621) (5,034) (17,359) 15,781

Income tax benefit/(expense) (6,890) 1,481


(2,621) (5,034) (24,248) 17,263



Total comprehensive income (2,621) (5,034) 163,634 (134,742)

* Allocation of income and expenses to corporate services (disclosure only): Income 6,655 13,895Expenses 6,655 13,895


DEPARTMENT OF PUBLIC WORKS Statement of Assets and Liabilities by Major Departmental Services, CBUs and SSPs as at 30 June 2011

Building Procurement& Asset Management

Procurement

Services

2011$'000

2010$'000

2011$'000

2010$'000

Current assets Cash and cash equivalents Receivables 39,949 39,482 1,479 2,074Inventories Tax assets Other 26,066 25,522 46 80

66,014 65,004 1,525 2,154

Noncurrent assets classified as held for sale 8,295 2,300

Total current assets 74,309 67,304 1,525 2,154

Noncurrent assets Receivables 45,846 7,576 Deferred tax assets Intangible assets 263 410 1,968 2,626Property, plant and equipment 3,064,628 2,739,807 72 32Other assets

Total noncurrent assets 3,110,737 2,747,793 2,040 2,658

Total assets 3,185,046 2,815,097 3,564 4,812

Current liabilities Payables 28,678 33,317 1,056 1,108Other financial liabilities 18,083 22,918 Accrued employee benefits 465 516 313 282Provisions Tax liabilities Other 2,366 1,017

Total current liabilities 49,592 57,767 1,369 1,390

Noncurrent liabilities Other financial liabilities 75,570 55,361 Deferred tax liabilities Other 2,257 3,042

Total noncurrent liabilities 77,827 58,404

Total liabilities 127,419 116,171 1,369 1,390

Statement of Assets and Liabilities by Major Departmental Services, CBUs and SSPs


DEPARTMENT OF PUBLIC WORKS Statement of Assets and Liabilities by Major Departmental Services, CBUs and SSPs as at 30 June 2011

Building Procurement& Asset Management

Procurement

Services

2011$'000

2010$'000

2011$'000

2010$'000

Current assets Cash and cash equivalents Receivables 39,949 39,482 1,479 2,074Inventories Tax assets Other 26,066 25,522 46 80

66,014 65,004 1,525 2,154



Noncurrent assets Receivables 45,846 7,576 Deferred tax assets Intangible assets 263 410 1,968 2,626Property, plant and equipment 3,064,628 2,739,807 72 32Other assets

Total noncurrent assets 3,110,737 2,747,793 2,040 2,658

Total assets 3,185,046 2,815,097 3,564 4,812

Current liabilities Payables 28,678 33,317 1,056 1,108Other financial liabilities 18,083 22,918 Accrued employee benefits 465 516 313 282Provisions Tax liabilities Other 2,366 1,017


Noncurrent liabilities Other financial liabilities 75,570 55,361 Deferred tax liabilities Other 2,257 3,042



DEPARTMENT OF PUBLIC WORKS Statement of Assets and Liabilities by Major Departmental Services, CBUs and SSPs (continued) as at 30 June 2011

Information and Communication Technology (ICT)

Strategies

Public Records Management and Advisory

Services

2011$'000

2010$'000

2011$'000

2010$'000

Current assets Cash and cash equivalents Receivables 1,733 3,365 (158) 133Inventories Tax assets Other 1,038 1,059 24 36

2,771 4,424 (134) 169

Noncurrent assets classified as held for sale

Total current assets 2,771 4,424 (134) 169

Noncurrent assets Receivables Deferred tax assets Intangible assets 198 308Property, plant and equipment 222 478 479 577Other assets

Total noncurrent assets 222 478 676 885

Total assets 2,992 4,902 542 1,053

Current liabilities Payables 957 3,703 164 127Other financial liabilities Accrued employee benefits 258 208 124 107Provisions Tax liabilities Other 308 470

Total current liabilities 1,523 4,381 288 234

Noncurrent liabilities Other financial liabilities Deferred tax liabilities Other

Total noncurrent liabilities

Total liabilities 1,523 4,381 288 234





2011$'000

2010$'000

2011$'000

2010$'000

Current assets Cash and cash equivalents (503) 8,759 6,737 555Receivables 10,372 6,351 16,728 19,719Inventories Tax assets Other 554 1,033 312 693

10,423 16,143 23,777 20,967



Noncurrent assets Receivables Deferred tax assets Intangible assets 11,350 10,496 341 764Property, plant and equipment 6,056 6,439 5,004 5,935Other assets

Total noncurrent assets 17,407 16,935 5,345 6,699

Total assets 27,829 33,078 29,122 27,666

Current liabilities Payables 4,865 10,692 3,852 4,795Other financial liabilities Accrued employee benefits 1,266 998 2,733 3,388Provisions Tax liabilities Other 305 411 (20) 135


Noncurrent liabilities Other financial liabilities Deferred tax liabilities Other 52 2

Total noncurrent liabilities 52 2






2011$'000

2010$'000

2011$'000

2010$'000

Current assets Cash and cash equivalents (503) 8,759 6,737 555Receivables 10,372 6,351 16,728 19,719Inventories Tax assets Other 554 1,033 312 693

10,423 16,143 23,777 20,967



Noncurrent assets Receivables Deferred tax assets Intangible assets 11,350 10,496 341 764Property, plant and equipment 6,056 6,439 5,004 5,935Other assets


Total assets 27,829 33,078 29,122 27,666

Current liabilities Payables 4,865 10,692 3,852 4,795Other financial liabilities Accrued employee benefits 1,266 998 2,733 3,388Provisions Tax liabilities Other 305 411 (20) 135


Noncurrent liabilities Other financial liabilities Deferred tax liabilities Other 52 2




CorpTech

QBuild

2011$'000

2010$'000

2011$'000

2010$'000

Current assets Cash and cash equivalents 33,835 49,483 12,163 37,625Receivables 5,449 4,152 160,664 151,576Inventories 52,181 50,158Tax assets Other 2,670 2,084 983 1,699

41,953 55,719 225,991 241,059



Noncurrent assets Receivables Deferred tax assets 5,392 7,270Intangible assets 107,231 166,700 21,912 24,749Property, plant and equipment 985 765 3,798 2,670Other assets


Total assets 150,170 223,184 257,093 275,748

Current liabilities Payables 7,218 9,348 85,419 87,837Other financial liabilities 2,892 20,678Accrued employee benefits 955 874 6,303 4,003Provisions 30 109Tax liabilities Other 85,742 90,270


Noncurrent liabilities Other financial liabilities 1,380 4,272Deferred tax liabilities 3,819 2,349Other 500 19





Project Services

QFleet

2011$'000

2010$'000

2011$'000

2010$'000

Current assets Cash and cash equivalents 35,732 30,787 16,704 11,360Receivables 17,869 17,981 5,944 3,632Inventories 8,911 10,458Tax assets Other 1,177 943 6,161 6,278

54,778 49,711 37,719 31,728



Noncurrent assets Receivables Deferred tax assets 2,959 1,822 94 573Intangible assets 994 1,938 42 3,821Property, plant and equipment 931 1,380 302,631 302,192Other assets


Total assets 59,662 54,851 340,487 338,314

Current liabilities Payables 7,026 6,889 19,062 24,232Other financial liabilities 3,579 3,510Accrued employee benefits 2,483 2,305 516 453Provisions 7,854 4,623 Tax liabilities 931 669 4,991 Other 309 483 1,187 218


Noncurrent liabilities Other financial liabilities 239,163 238,002Deferred tax liabilities 229 269 4,466 4,182Other

Total noncurrent liabilities 229 269 243,629 242,184




Project Services

QFleet

2011$'000

2010$'000

2011$'000

2010$'000

Current assets Cash and cash equivalents 35,732 30,787 16,704 11,360Receivables 17,869 17,981 5,944 3,632Inventories 8,911 10,458Tax assets Other 1,177 943 6,161 6,278

54,778 49,711 37,719 31,728



Noncurrent assets Receivables Deferred tax assets 2,959 1,822 94 573Intangible assets 994 1,938 42 3,821Property, plant and equipment 931 1,380 302,631 302,192Other assets


Total assets 59,662 54,851 340,487 338,314

Current liabilities Payables 7,026 6,889 19,062 24,232Other financial liabilities 3,579 3,510Accrued employee benefits 2,483 2,305 516 453Provisions 7,854 4,623 Tax liabilities 931 669 4,991 Other 309 483 1,187 218


Noncurrent liabilities Other financial liabilities 239,163 238,002Deferred tax liabilities 229 269 4,466 4,182Other

Total noncurrent liabilities 229 269 243,629 242,184



Goprint

Sales and Distribution

Services (SDS)

2011$'000

2010$'000

2011$'000

2010$'000

Current assets Cash and cash equivalents 1,959 2,602 61 281Receivables 1,644 1,397 6,132 5,775Inventories 353 418 4,644 4,940Tax assets 22Other 73 197 275 144

4,029 4,614 11,112 11,163



Noncurrent assets Receivables Deferred tax assets 596 625Intangible assets 386 465Property, plant and equipment 2,668 3,093 857 653Other assets


Total assets 6,697 7,706 12,951 12,907

Current liabilities Payables 768 1,113 4,078 5,188Other financial liabilities 5,110 2,930Accrued employee benefits 125 123 268 228Provisions Tax liabilities Other 330 655 284 396


Noncurrent liabilities Other financial liabilities Deferred tax liabilities 30 173Other





CITEC


2011$'000

2010$'000

2011$'000

2010$'000

Current assets Cash and cash equivalents 12,328 12,966 9,991 20,487Receivables 20,024 17,752 12,318 10,068Inventories 140 Tax assets Other 7,590 6,858 909 1,127

39,941 37,716 23,218 31,682



Noncurrent assets Receivables Deferred tax assets 10,209 7,071 Intangible assets 33,001 20,218 303 479Property, plant and equipment 33,346 27,523 1,059 1,021Other assets 3,437 2,021


Total assets 119,934 94,548 24,580 33,182

Current liabilities Payables 10,895 11,565 2,756 3,897Other financial liabilities 7,451 2,080 Accrued employee benefits 2,048 25 855 730Provisions Tax liabilities Other 5,133 3,325 265 215


Noncurrent liabilities Other financial liabilities 53,452 31,954 Deferred tax liabilities 73 68 Other 480 1,440





CITEC


2011$'000

2010$'000

2011$'000

2010$'000

Current assets Cash and cash equivalents 12,328 12,966 9,991 20,487Receivables 20,024 17,752 12,318 10,068Inventories 140 Tax assets Other 7,590 6,858 909 1,127

39,941 37,716 23,218 31,682



Noncurrent assets Receivables Deferred tax assets 10,209 7,071 Intangible assets 33,001 20,218 303 479Property, plant and equipment 33,346 27,523 1,059 1,021Other assets 3,437 2,021


Total assets 119,934 94,548 24,580 33,182

Current liabilities Payables 10,895 11,565 2,756 3,897Other financial liabilities 7,451 2,080 Accrued employee benefits 2,048 25 855 730Provisions Tax liabilities Other 5,133 3,325 265 215


Noncurrent liabilities Other financial liabilities 53,452 31,954 Deferred tax liabilities 73 68 Other 480 1,440




Inter

Output/Activity Eliminations

Total

2011 $'000

2010 $'000

2011$'000

2010 $'000

Current assets Cash and cash equivalents 129,004 174,905Receivables (63,534) (15,317) 236,614 268,139Inventories 66,089 66,114Tax assets 22Other 47,875 47,754

(63,534) (15,317) 479,582 556,934


Total current assets (63,534) (15,317) 487,877 559,234

Noncurrent assets Receivables 45,846 7,576Deferred tax assets 19,250 17,361Intangible assets 177,990 232,974Property, plant and equipment (2,621) (5,034) 3,420,115 3,087,531Other assets 3,437 2,021

Total noncurrent assets (2,621) (5,034) 3,666,638 3,347,463

Total assets (66,155) (20,351) 4,154,515 3,906,697

Current liabilities Payables (63,534) (15,317) 113,261 188,496Other financial liabilities 37,115 52,117Accrued employee benefits 18,714 14,238Provisions 7,885 4,732Tax liabilities 5,922 669Other 96,208 97,593

Total current liabilities (63,534) (15,317) 279,104 357,844

Noncurrent liabilities Other financial liabilities 369,565 329,589Deferred tax liabilities 8,617 7,041Other 3,239 4,553


Total liabilities (63,534) (15,317) 660,525 699,028


DEPARTMENT OF PUBLIC WORKSNotes to and forming part of the financial statements 201011

Objectives and principal activities of the department Note 1: Summary of significant accounting policies Note 2: Reconciliation of payments from consolidated fund to departmental services revenue recognised in Statement of Comprehensive Income Reconciliation of payments from consolidated fund to equity adjustment recognised in contributed equity Note 3: User charges Note 4: Grants and other contributions Note 5: Other revenue Note 6: Gains Note 7: Employee expenses Note 8: Supplies and services Note 9: Grants and subsidies Note 10: Depreciation and amortisation Note 11: Impairment losses Note 12: Finance/borrowing costs Note 13: Other expenses Note 14: Cash and cash equivalents Note 15: Receivables Note 16: Inventories Note 17: Tax assets Note 18: Other assets Note 19: Noncurrent assets classified as held for sale Note 20: Intangible assets Note 21: Property, plant and equipment Note 22: Payables Note 23: Other financial liabilities Note 24: Accrued employee benefits Note 25: Provisions Note 26: Tax liabilities Note 27: Other liabilities Note 28: Asset revaluation surplus by class Note 29: Cash flow information Note 30: Noncash financing and investing activities Note 31: Commitments for expenditure and receivables Note 32: Contingencies Note 33: Controlled entities Note 34: Events occuring after balance date Note 35: Financial instruments Note 36: Taxation equivalents Note 37: Schedule of administered items Note 38: Reconciliation of payments from consolidated fund to administered revenue Note 39: Agency transactions Note 40: Additional disclosure of significant issues

Note 41: Comparative information restatedNote 42: Key executive management personnel and remunerationNote 43: Convention centres

Notes to and forming part of the Financial Statements 2010–11


DEPARTMENT OF PUBLIC WORKSNotes to and forming part of the financial statements 201011

Objectives and principal activities of the department Note 1: Summary of significant accounting policies Note 2: Reconciliation of payments from consolidated fund to departmental services revenue recognised in Statement of Comprehensive Income Reconciliation of payments from consolidated fund to equity adjustment recognised in contributed equity Note 3: User charges Note 4: Grants and other contributions Note 5: Other revenue Note 6: Gains Note 7: Employee expenses Note 8: Supplies and services Note 9: Grants and subsidies Note 10: Depreciation and amortisation Note 11: Impairment losses Note 12: Finance/borrowing costs Note 13: Other expenses Note 14: Cash and cash equivalents Note 15: Receivables Note 16: Inventories Note 17: Tax assets Note 18: Other assets Note 19: Noncurrent assets classified as held for sale Note 20: Intangible assets Note 21: Property, plant and equipment Note 22: Payables Note 23: Other financial liabilities Note 24: Accrued employee benefits Note 25: Provisions Note 26: Tax liabilities Note 27: Other liabilities Note 28: Asset revaluation surplus by class Note 29: Cash flow information Note 30: Noncash financing and investing activities Note 31: Commitments for expenditure and receivables Note 32: Contingencies Note 33: Controlled entities Note 34: Events occuring after balance date Note 35: Financial instruments Note 36: Taxation equivalents Note 37: Schedule of administered items Note 38: Reconciliation of payments from consolidated fund to administered revenue Note 39: Agency transactions Note 40: Additional disclosure of significant issues

Note 41: Comparative information restatedNote 42: Key executive management personnel and remunerationNote 43: Convention centres

DEPARTMENT OF PUBLIC WORKS Notes to and forming part of the financial statements 201011 Objectives and principal activities of the department

The Department of Public Works performs a key role by working with other Queensland Government agencies in assisting them to deliver their services to the people of Queensland.

The department has lead agency responsibility for:

n Design, construction, fitout and maintenance of government buildings n Information and Communication Technology (ICT) n Procurement n Recordkeeping in Queensland's public sector.

It also provides high quality, standardised corporate services and business solutions to government agencies, and is the primary point of contact for Queenslanders accessing government services through Smart Service Queensland . A significant number of the department's services are delivered through its commercialised business units: QBuild, Project Services, QFleet, Goprint, Sales and Distribution Services (SDS) and CITEC.

1. Summary of significant accounting policies

(a) Statement of compliance

The Department of Public Works has prepared these financial statements in compliance with section 42 of the Financial and Performance Management Standard 2009.

These financial statements are general purpose financial statements, and have been prepared on an accrual basis in accordance with Australian Accounting Standards and Interpretations. In addition, the financial statements comply with Treasury's Minimum Reporting Requirements for the year ending 30 June 2011, and other authoritative pronouncements.

With respect to compliance with Australian Accounting Standards and Interpretations, the Department of Public Works has applied those requirements applicable to notforprofit entities, as the Department of Public Works is a notforprofit department. Except where stated, the historical cost convention is used.

(b) The reporting entity

The financial statements include the value of all assets, liabilities, equity, revenues and expenses of the Department of Public Works. Details of the department’s controlled entities are disclosed in Note 33. In the process of reporting the department as a single economic entity, all transactions with entities controlled by the department have been eliminated. The department consists of commercialised business units, the shared service providers and encompasses the departmental services of Building Procurement and Asset Management, Procurement Services, Information and Communication Technology (ICT) Strategies, Public Records Management and Advisory Services, and Access to Government Services and Information, together with the Corporate and Executive Services Division. The departmental services/major activities undertaken by the department are disclosed in paragraph 1(ah).

In order to provide enhanced disclosure, the department has adopted the principles outlined in Australian Accounting Standard AASB 127 Consolidated and Separate Financial Statements. In the process of reporting on the department, all transactions and balances internal to the department have been eliminated in full.

Additional disclosure of significant issues pertaining to the operations of the commercialised business units and shared service providers is disclosed at Note 40.

(c) Administered transactions and balances

The department administers, but does not control, certain resources on behalf of the Government. In doing so, it has responsibility and is accountable for administering related transactions and items, but does not have the discretion to deploy the resources for the achievement of the department’s objectives.

Administered transactions and balances are disclosed in Note 37. These transactions and balances are not significant in comparison to the department’s overall financial performance/financial position.

DEPARTMENT OF PUBLIC WORKS Notes to and forming part of the financial statements 201011 1. Summary of significant accounting policies (continued)

(d) Agency transactions and balances

The department, through the Project Services business unit, acts in an agency capacity for Queensland Government departments in respect of the delivery of the capital works program. In its capacity as project manager for construction projects, Project Services facilitates the payments to external contractors and service providers from client departments.

The department, through the CITEC business unit, has commercial arrangements with various state and federal government agencies to perform certain transactions on their behalf.

The department, through the Smart Service Queensland service, facilitates easier access to responsive government services and information and provides the primary point of contact for Queenslanders to access government services through multiple delivery channels.

The transactions and balances related to these agency arrangements in 201011 are identified separately in Note 39 and are not included in these financial statements because the department acts in a custodial role only.

(e) Departmental services revenue/Administered revenue

Appropriations provided under the Annual Appropriation Act are recognised as revenue when received or when a service rendered is recognised after approval by Queensland Treasury.

Amounts appropriated to the department for transfer to other entities in accordance with legislative or other requirements are reported as ‘administered’ item appropriations.

(f) User charges

User charges and fees controlled by the department are recognised as revenues when the revenue has been earned and can be measured reliably with a sufficient degree of certainty. This involves either invoicing for related goods/services and/or the recognition of accrued revenue. User charges and fees are controlled by the department where they can be deployed for the achievement of departmental objectives.

(g) Grants and contributions

Grants, contributions, donations and gifts that are nonreciprocal in nature are recognised as revenue in the year in which the department obtains control over them. Where grants are received that are reciprocal in nature, revenue is recognised over the term of the funding arrangements.

Contributed assets are recognised at their fair value. Contributions of services are recognised only when a fair value can be determined reliably and the services would be purchased if they had not been donated.

(h) Cash and cash equivalents

For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash assets include all cash and cheques receipted but not banked at 30 June as well as deposits at call with financial institutions.

(i) Receivables

Trade debtors are recognised at the amounts due at the time of sale or service delivery i.e. the agreed purchase/contract price. Settlement of these amounts is generally required within 30 days from invoice date.

The collectability of receivables is assessed at balance date with provision being made for impairment. All known bad debts were written off as at 30 June.

Other debtors generally arise from transactions outside the usual operating activities of the department and are recognised at their assessed values.


(j) Inventories

Inventories held for sale are valued at the lower of cost and net realisable value. Raw materials not held for resale are valued at the lower of cost or current replacement cost.

Warehousing and distribution activities The cost of inventory for operations is arrived at using the weighted average cost method and includes expenditure incurred in acquiring the inventories.

Manufacturing activities Raw materials have been valued on the basis of firstinfirstout, and manufactured inventories on the basis of weighted average cost.

Work in progress has been valued under the absorption costing method at direct material and labour costs, and production overheads allocated on the basis of normal operating capacity.

Information, communication and technology services Inventories including third party resales are valued at the lower of cost and net realisable value and represent purchases made on behalf of clients for which the full cost is recoverable from clients.

(k) Construction work in progress

Valuation Construction work in progress is carried at cost plus profit recognised to date, based on the value of work completed, less progress billings and less any provision for foreseeable losses. Provision for the total loss on a contract is made as soon as the loss is identified.

Costs include both variable and fixed costs directly related to specific contracts, and those which can be attributed to contract activity in general and allocated to specific contracts on a reasonable basis. Also included are costs expected to be incurred under penalty clauses and rectification provisions.

Revenue recognition Revenue is recognised on fixed price construction contracts and for services rendered in accordance with the percentage of completion method. Stage of completion is measured by reference to the proportion of physical work completed.

Revenue is recognised on cost plus contracts by reference to recoverable costs incurred during the period plus the percentage of fee earned. Percentage of fee earned is measured by the proportion that costs incurred to date relate to the estimated total costs. Revenue is recognised when the outcome of the contract is reliably known. Where the outcomeis not reliably known, revenue is recognised to the value of costs incurred where it is probable that the costs are recoverable. Expected losses are recognised as an expense where it is probable that the total contract costs will exceed total contract revenue.

(l) Noncurrent assets classified as held for sale

Noncurrent assets held for sale consist of those assets that management has determined are available for immediate sale in their present condition, for which their sale is highly probable within the next twelve months.

These assets are measured at the lower of the assets’ carrying amounts and their fair values less costs to sell. These assets are not depreciated.

(m) Acquisitions of assets

Actual cost is used for the initial recording of all noncurrent physical and intangible asset acquisitions. Cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use, including architects' fees and engineering design fees. However, any training costs are expensed asincurred.

Where assets are received free of charge from another Queensland Government department (whether as a result of a machineryofGovernment change or other involuntary transfer), the acquisition cost is recognised as the gross carrying amount in the books of the transferor immediately prior to the transfer together with any accumulated depreciation.

Assets acquired at no cost or for nominal consideration, other than from an involuntary transfer from another Queensland government entity, are recognised at their fair value at date of acquisition in accordance with AASB 116 Property, Plant and Equipment.


(n) Property, plant and equipment

Items of property, plant and equipment with a cost or other value equal to or in excess of the following thresholds are recognised for financial reporting purposes in the year of acquisition:

Buildings $10 000 Infrastructure $10 000 Land $1 Plant and equipment $5 000 Other (including heritage and cultural) $5 000

Items with a lesser value are expensed in the year of acquisition.

Land improvements undertaken by the department are included with buildings.

(o) Revaluations of noncurrent physical and intangible assets

Land, buildings, infrastructure, heritage and cultural assets are measured at fair value in accordance with AASB 116 Property, Plant and Equipment and Queensland Tre

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