Dear Minister I am pleased to submit for presentation to Parliament the Department of Public Works Annual Report for the year ended 30 June 2006. The report has been prepared in accordance with the Financial Administration and Audit Act 1977 and the Financial Management Standard 1997. It is prepared on the basis of the current administrative arrangements for the department, relevant to the whole of the 2005–06 year. The report highlights the department’s performance in the past financial year and places particular emphasis on our organisation’s most valuable asset – our people. I commend the Annual Report 2005–06 to you for presentation to Parliament. Yours faithfully Mal Grierson Director-General The Honourable Robert Schwarten MP Minister for Public Works, Housing and Information and Communication Technology Level 7, 80 George Street Brisbane Qld 4000 Level 7, 80 George Street GPO Box 2457 Brisbane QLD 4001 Australia Phone: +61 7 3224 6507 Fax: +61 7 3224 5616
Transcript
Dear Minister
I am pleased to submit for presentation to Parliament the Department of Public Works Annual Report for the year ended 30 June 2006.
The report has been prepared in accordance with the Financial Administration and Audit Act 1977 and the Financial Management Standard 1997.
It is prepared on the basis of the current administrative arrangements for the department, relevant to the whole of the 2005–06 year.
The report highlights the department’s performance in the past fi nancial year and places particular emphasis on our organisation’s most valuable asset – our people.
I commend the Annual Report 2005–06 to you for presentation to Parliament.
Yours faithfully
Mal GriersonDirector-General
The Honourable Robert Schwarten MPMinister for Public Works, Housing and Information and Communication TechnologyLevel 7, 80 George StreetBrisbane Qld 4000
Communication ObjectivesTo clearly show how the Department of Public Works supported the Queensland Government in delivering its programs and services during the 2005–06 fi nancial year.To demonstrate the department’s commitment to its staff and to addressing Queensland Government Priorities.To give an account of the department’s activities and achievements during the fi nancial year as required by the Financial Administration and Audit Act 1977.
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Vision/Mission/Values
Our Vision
Excellent policy options and service delivery.
Our Mission
To provide excellent policy options, legislation, products and services that ensure the delivery of successful government outcomes.
Values
The organisational values of the department were developed in consultation with staff.
The values REFLECT the philosophy and behaviour being sought from all levels of the organisation.
Respect – for each other, our clients, the diversity of skills in the workforce and the diversity of cultural backgrounds.
Effi ciency – in the way business is conducted and in dealing with clients.
Flexibility – in working arrangements, dealing with clients and dealing with problems.
Leadership – that provides clear organisational strategic direction; encourages teamwork to achieve the strategic direction; is visible and consistent; leads by example; allows management and employees to be partners.
Encouragement – in career progression and personal development, and to think of innovative ways of doing business.
Communication – that is open, consistent and two-way.
Trust – between management and employees, and between the department and its clients.
Department of Public Works
Annual Report 2005 - 06
table of Contents
Section 1 Our Organisation From the Director-General 6 Our Organisation 10 Organisation Chart 16 In Pursuit of Excellence 17 Map of our Locations 18 Locations 19 Section 2 Business Reporting Our Achievements 26 Disaster Management 28 Building Procurement and Asset Management 34 Procurement Services 42 E-Government and Information and Communications Technology (ICT) Strategies 44 Public Records Management and Advisory Services 46 Racing Industry Services 48 Commercialised Business Units 50 QBuild 50 Project Services 52 QFleet 54 CITEC 55 Goprint 56 SDS 57 Corporate Governance 58 Corporate Governance Board 60 Executive Committee Members 64 Governance Committees 65 Internal Audit Report 68 Statutory Bodies, Authorities and Instrumentalities 70 Acts Administered 71 Cost of Boards, Committees 73 Staff Numbers 76 Code of Conduct (Public Sector Ethics Act 1994) 77 Whistleblowers Protection Act 1994 78 Voluntary Early Retirement 78 Consultancies 78
table of Contents
Overseas Travel 80 Training and Development 82 Employment Initiatives 83 Supporting Diversity 84 Workplace Health and Safety 86 Performance Management 87 Women’s Initiatives 88 Multicultural Activities 89 Community Engagement 91 Industry Liaison 92 Resource Conservation and Waste Management 94 Risk Management 96 Freedom of Information 97 Recordkeeping 98 Shared Service Initiative 99 Section 3 Financial Reporting Department of Public Works Financial Summary 102 Department of Public Works Financial Reporting 106 CITEC Financial Statements 189
Department of Public Works
Annual Report 2005 - 06
Project Services provided full design consultancy services and project management
of the $12.5 million Tissue Transplant Centre, Coopers Plains in Brisbane.
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Our Organisation
For the Department of Public Works and its staff, 2005–06 was a year of signifi cant achievement. But the event that will stand out in my memory is the department’s response to Tropical Cyclone Larry which struck the Innisfail region on Monday, 20 March 2006.
With winds gusting to 290km/h, Tropical Cyclone Larry cut a path of destruction through Far North Queensland, devastating an area half the size of Tasmania. Yet within hours, local staff members, some of whom had damage to their own homes, launched themselves into the tasks of placing tarpaulins on damaged roofs and removing debris.
In the diffi cult days that followed, QBuild, QFleet, Project Services, SDS and Queensland Purchasing moved quickly, helping to restore vital government infrastructure and services including more than 150 state schools. This was the Department of Public Works at its best, with everyone working as a team in trying circumstances. Thanks to the efforts of staff drawn from many parts of Queensland, the department emerged with its reputation stronger than ever.
In one of its key roles, the Department of Public Works is responsible for carrying out a large capital works construction program on behalf of the Queensland Government. The department provides a range of services including design, construction, project management and maintenance. In this area, the department recorded a number of notable achievements during 2005–06. These included:
achieving signifi cant progress on the $291.3 million Millennium Arts Project at the Queensland Cultural Centre, on behalf of Arts Queensland, with construction continuing on the Queensland Gallery of Modern Art and the redevelopment of the State Library of Queenslandcompleting the planning and design stages for the development of the $160 million Robina Stadium on the Gold Coast, on behalf of the Major Sports Facilities Authorityprogressing the $45.4 million Boggo Road Urban Village project by planning the site infrastructure necessary to support the proposed knowledge-based research and business precinct, combined with a residential and mixed-use area
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From the Director-General
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Annual Report 2005 - 06
commencing the project initiation phase of the $63.3 million Tank Street pedestrian and cycle bridge across the Brisbane River from the city to South Brisbanecommencing construction work on the $9.5 million Rockhampton Riverbank Redevelopment, designed to revitalise sections of riverbank on both sides of the Fitzroy.
During 2005–06, the Department of Public Works continued to play its part in improving the environmental aspects of the built environment. For example, the department established the Government Buildings Water Conservation Program to reduce water usage in government buildings, sports grounds and parks. Further, it continued to monitor the removal of asbestos from school roofs and to carry out the Government Energy Management Strategy which seeks to improve government agencies’ use of energy and water. At Research House in Rockhampton, evaluation of data on energy and water usage was completed. Research House again demonstrated what can be achieved through sustainable design practices that people can afford.
As part of its broad range of responsibilities, the Department of Public Works serves as lead agency in whole-of-Government information and communications technology, procurement, recordkeeping in the public sector, and in providing a regulatory framework that protects the integrity of the State’s racing industry.
In these areas, the department’s key achievements included:
identifying opportunities for sharing, reuse and collaboration of information and communications technology initiatives, as well as identifying duplication across agencies and common areas of large expenditure through the development of the Government Enterprise Architecture
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completing the design stage of the whole-of-Government Travel Management System, aimed at reducing travel costsidentifying potential whole-of-Government savings of $2.7 million per annum by reducing large passenger vehicles by approximately 25% and replacing these vehicles with smaller, more fuel-effi cient vehiclesreleasing a discussion paper on the proposed e-Government Policy Framework for Electronic Records Management to explore the challenges involved in managing electronic records in the next three to fi ve yearsresponding to recommendations from the thoroughbred racing inquiryassisting in implementing legislation to reform racing industry structures to better address the needs of non-TAB (country) thoroughbred racinghosting the 2006 Racing Ministers’ Conference in Brisbane.
Without the continued support and dedication of the department’s staff, these achievements would not have been possible. I would like to congratulate staff members on the professionalism and expertise displayed, not only during Cyclone Larry but throughout the year.
I am proud of the department’s achievements in 2005–06. Contributions of this kind demonstrate the department’s ongoing commitment to Queensland Government Priorities and to delivering the vital services that support other agencies in achieving their priorities.
Mal GriersonDirector-General
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Our Organisation
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Annual Report 2005 - 06
OurOrganisation
John McAfee, Project Manager, Project Services,
inspecting construction of the Millenium Arts Project.
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Our Organisation
The Department of Public Works is a diverse agency, consisting of three major divisions: Works Division and Services Division, each containing commercialised business units; and the Racing Division. The department plays a vital role in supporting the Queensland Government by assisting agencies to deliver their services across the State.
The department’s diverse range of specialist services, provided to other government agencies, are backed by an extensive bank of knowledge, expertise and service delivery skills built up over many years.
The department’s role supports government priorities, reduces whole-of-Government risk, delivers economies of scale and assists other agencies to achieve their individual outputs.
The major functions of the department are as the Government’s lead agency in the design, construction, fi tout and maintenance of government buildings;
in the application of whole-of-Government information and communications technology; in procurement; in the provision of support services such as fl eet management, printing and offi ce supplies; in providing a regulatory framework that protects the integrity of the State’s racing industry; and in recordkeeping in Queensland’s public sector.
In all these functions, the department has a strong policy and strategic development role through which it provides leadership and support to other government agencies in helping them meet government priorities. This extends to the department’s relationship with the private sector in construction, information and communications technology and other fi elds with which the department is associated. Wherever possible, the department partners with industry by sharing knowledge, using its research and development abilities, and helping drive business and technical initiatives.
Our Organisation
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Annual Report 2005 - 06
The department’s larger business units are: Project Services, the Queensland Government’s in-house building design and professional services agency; QBuild, the Government’s building construction and maintenance provider; and CITEC, the information and communications technology service provider.
The department leads the Queensland Government’s capital works building program, designing and constructing government-owned facilities. For example, currently the department is the project director of the $291.3 million Millennium Arts Project and the $160 million Robina Stadium development. The department is also undertaking the development of the Boggo Road precinct and the Tank Street Bridge Project. As well, it is responsible for maintenance management of the majority of government buildings.
In provincial and metropolitan areas of the State, the department’s presence directly infl uences job creation and skills development, particularly in the building professions and trades. The department’s regional network also provides the Government with exceptional response capability in relation to disasters, or where community support is needed quickly.
Through its Racing Division, the Department of Public Works is responsible for providing regulatory, policy and scientifi c services to the Queensland racing industry and for ensuring the welfare of racing animals.
The department also plays a major role in protecting and preserving the State’s public records. Through Queensland State Archives, the department is custodian of the largest and most signifi cant documentary heritage collection in the State. It has legislative responsibility for making policies, standards and guidelines about how agencies make, keep, manage and preserve public records, and how access to archival records is managed.
The department’s strategic policies and innovative services align strongly with government accountability, governance and leadership. Much of this work is made possible by the department’s governance and corporate services sections.
The three divisions are supported by the Corporate and Executive Service areas which provide business support services and administration. These areas include Finance, Legal Services, Contract Services, Corporate Planning and External Relations, Information Services Directorate, Human Resources, Shared Services, and Governance and Review including Executive Services Unit, Project Governance Business Group and Internal Audit.
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Our Organisation
Works Division provides integrated capital works, building asset management planning, maintenance and operational services, built asset policy development and research, and accommodation and related services to the Government and client agencies. It comprises Infrastructure and Major Projects, Building Policy Unit, Built Environment Research Unit, Business Strategy and Development and the Queensland Government Accommodation Offi ce, as well as the commercialised business units of Project Services and QBuild.
Project Services (commercialised) Project Services is a multidisciplinary, professional services consultancy business that assists clients in the delivery of their capital works programs and projects within the Government’s capital works frameworks. Project Services partners with Queensland Government agencies to identify and provide the products and services they need to deliver government outcomes. By outsourcing work and entering joint ventures with the private sector, Project Services helps to develop Queensland’s building and construction industry.
QBuild (commercialised) QBuild plans, manages and delivers state-wide a broad range of building and construction services to government agencies. In addition, QBuild provides other facility management services including State Government Protective Security, in-house cleaning and horticultural services. QBuild contributes to Queensland communities and regions by offering employment and business opportunities, apprenticeships and traineeships. It also contributes through its response to natural disasters, such as this year’s Tropical Cyclone Larry.
Infrastructure and Major ProjectsInfrastructure and Major Projects manages the initiation stages of major state projects where a number of agencies are key stakeholders. It also assumes an advisory and facilitator role for many individual building and property projects.
Building Policy UnitBuilding Policy Unit provides policy advice and analysis to all government departments and the Government on building matters. It administers and maintains the whole-of-Government Capital Works Management Framework, Maintenance Management Framework and the associated Prequalifi cation System for building industry consultants and contractors. Building Policy Unit also provides a strong link between Government and building industry stakeholders to enhance the client–supplier relationship and encourages supplier development as a means of improving industry competition, productivity, innovation and sustainability.
Built Environment Research Unit As environmental issues become increasingly important, Built Environment Research Unit provides a crucial role to Government providing expert advice on issues relating to the built and urban environment. It responds to major issues such as the control of greenhouse gases, energy management and conservation, water management and conservation, indoor air quality and healthier buildings, building heritage conservation and life-cycle assessment. The unit is also responsible for ongoing research into renewable or alternative technologies.
Works Division
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Business Strategy and DevelopmentBusiness Strategy and Development enhances strategic asset management across the government sector by providing expert advice, undertaking practical research and contributing to policy development. It also coordinates the delivery of specifi c initiatives which particularly focus on environmental programs relating to government infrastructure.
Queensland Government Accommodation Offi ce (formerly Government Offi ce
Accommodation Unit, Portfolio and Housing
Unit and Business Support Unit)
Queensland Government Accommodation Offi ce has whole-of-Government responsibility for offi ce accommodation policy advice, strategic planning, and the procurement and best practice management of the Government’s offi ce accommodation and employee housing portfolios.
QBuild Industries Offi cer in Charge of Stores, Colin Railton, retrieves
construction material for the Lady Bowen Precinct project in Brisbane.
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Our Organisation
Services DivisionServices Division comprises the Offi ce of Government ICT, Queensland Purchasing, Queensland State Archives and four commercialised business units – CITEC, Goprint, QFleet and SDS. While diverse in their core activities, each of these units is responsible for the delivery of expert services and advice to support the operation and program delivery of other agencies, including the Department of Public Works. In the case of the commercialised business units, each is expected to value-add through application of commercial principles to its large-scale service delivery operations.
CITEC (commercialised)
CITEC is the primary information and communications technology solutions integrator and infrastructure provider to the Queensland Government, delivering ICT solutions to agencies and whole-of-Government. It achieves savings for Government through economies of scale in areas such as data centres, infrastructure, networks, security, disaster recovery, solutions integration and support services. CITEC also provides an information brokerage service. CITEC is a commercialised business with local, national and multinational clients. It has offi ces in Brisbane, Sydney, Canberra and Melbourne.
Goprint (commercialised) Goprint – the Queensland Government printer – provides printing services to the Government and government-funded agencies. Its role is to support Government by providing reserved services such as the printing of legislation, gazettes and confi dential documents. Goprint also provides commercial offset and digital printing, and associated services including graphic design, photography, new media, binding and fi nishing, distribution and project management.
Offi ce of Government ICTThe Offi ce of Government ICT sets the direction to enable an integrated whole-of-Government information and communications technology infrastructure that supports the effi cient and effective business operations of the Queensland Government. It develops strategies, frameworks and standards that ensure appropriate investment in information and communications technology and works collaboratively with agencies, other jurisdictions and the information and communications technology industry to ensure the best outcomes for Government.
QFleet (commercialised) QFleet is a commercialised business unit which provides fl eet management services to clients including public sector departments and agencies as well as publicly-funded, non-government organisations.
Queensland Purchasing Queensland Purchasing’s key role is to improve procurement outcomes for the Queensland Government. The division develops and manages services designed to improve purchasing policy and practice, and assists client agencies to develop effective procurement practices to achieve cost savings and benefi ts.
Queensland State ArchivesAs well as storing, preserving and managing public access to the State’s largest and most signifi cant collection of public archival records, Queensland State Archives is also the lead agency for recordkeeping in Queensland and is responsible for the administration of the Public Records Act 2002.
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SDS – Sales and Distribution Services (commercialised) SDS operates three distinct lines of business - SDS Publications, SDS Logistics and SDS Distribution. SDS Publications offers a publishing, retail, warehousing and single distribution point for all government publications and information to the community. SDS Logistics offers Shared Service Provider warehousing effi ciencies and distribution services to agencies within Government. SDS Distribution is an online retail and distribution business trading merchandise, offi ce supplies and furniture products to schools and government.
Racing Division provides a policy and legislative framework for the regulation of the Queensland racing industry to ensure the integrity of racing, the welfare of racing animals and public confi dence in the industry.
Racing Division
Racing Science Centre
management and staff
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Our Organisation
Internal Audit
Director-General
QFleet
Goprint
Qld State Archives
Qld Purchasing
Corporate Planning and
External RelationsGovernance and Review
Deputy Director-General
(Works)
Deputy Director-General
(Services)
Assistant Director-General
(Government ICT)
CITEC
SDS
Information Services Directorate
Human Resources
Finance
Legal Services
Contract Services
Business Strategy and
Development
QBuild
Project Services
Office of Government ICT
Built Environment
Research Unit
Building Policy Unit
Infrastructure and
Major Projects
Queensland Government
Accommodation Office
Racing
Division
Shared Services
Organisation Chart
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Annual Report 2005 - 06
In Pursuit of ExcellenceInternally, the Department of Public Works recognises excellent outcomes and contributions through an integrated reward and recognition system that fl ows from unit-specifi c awards to whole-of-department awards.
The department recognises employees for long service (25 years of service and above), and also awards outstanding contributions to the department with Australia Day Achievement Medallions. In 2005–06, 25 employees received these medallions.
2005–06 was the eighth year for the department’s Recognition of Excellence Awards which recognise seven categories of excellence – Community Contribution, Innovation and Creativity, Partnerships and Reconciliation, Strengthening Rural and Regional Queensland, Service Excellence, Valuing our People and the Director-General’s Award for Leadership.
Each year, QBuild recognises and rewards the achievements of its apprentices through the Apprentice of the Year Awards. All QBuild apprentices are eligible to nominate for the awards at each stage of their apprenticeship.
Externally, the department submits nominations for a number of awards programs including the Public Service Medal and Premier’s Awards for Excellence.
The department won the Premier’s Award for Excellence in Public Sector Management jointly with the Department of Housing for the Palm Island Community Youth Centre Project, under the category of ‘Focussing on our People’. This world-class centre was completely project-managed and built by the department. Through the Department of Public Works Indigenous Training and Employment program, the department was able to host-employ local Palm Islanders as apprentices to work on the project.
At the Australasian Reporting Awards, CITEC won a gold award for its 2004–05 Annual Report. CITEC also won an Award of Merit at the Queensland Public Sector Annual Report Awards from the Institute of Internal Auditors.
It was also a great year for the team at Project Services, winning a number of industry awards:
Australian Institute of Project Management’s State Project Management Achievement Award for the Brisbane Magistrates Court project Australian Institute of Project Management’s National Project Management Achievement Award for the Brisbane Magistrates Court project Royal Australian Institute of Architects (RAIA) State and National Awards; FDG Stanley Award for Public Buildings Architecture; Harry Marks Award for Sustainable Architecture; Institutional Buildings Architecture Award; Colorbond Awards 2005 – for the Cooloola Sunshine Institute of TAFEGold Award for the Garden and Milford Streets Housing Project in the category of Special Projects at the 2006 Ipswich City Council Awards for ExcellenceIpswich City Council Silver Design Award for Excellence 2005 for the Ipswich Motor Sports Precinct.
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Queensland Purchasing’s Long Service
Award recipients December 2005
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Our Organisation
Map of our Locations
Brisbane Offi ces and Depots
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Annual Report 2005 - 06
Locations
Head Offi ce80 George StreetGPO Box 2457Brisbane Qld 4001Phone: (07) 3227 7111Fax: (07) 3224 5710Email: [email protected]: www.publicworks.qld.gov.au
Suite 31, Level 5Town Square Offi cesRobina Town Centre DrivePO Box 3156Robina Post ShopRobina Town Centre Qld 4230Phone: (07) 5583 1900Fax: (07) 5583 1943
The Department of Public Works is best known for its role as leader of the Government’s capital works building program but its responsibilities extend much further.
The department provides a range of advice and support in infrastructure development and built asset management to Queensland Government departments and to other agencies.
In addition, its extensive portfolio takes in whole-of-Government telecommunications and information and communications technology; procurement; fl eet management; printing; provision of offi ce supplies and furniture products to schools and government; the regulatory framework protecting the integrity of the State’s racing industry; recordkeeping in Queensland’s public sector; and storing, preserving and managing the State’s documentary heritage collection.
In all these functions, the Department of Public Works has a strong policy and strategic development role through which it provides leadership and support to other Queensland Government agencies in helping them to meet Queensland Government Priorities.
The thrust of government priorities is clear – more jobs for Queensland, safer and more supportive communities, better quality of life, valuing the environment and building Queensland’s regions.
The department contributes directly to government priorities in a number of ways including integrated service delivery for building asset management from a whole-of-Government perspective and service delivery initiatives to support regional, rural and remote areas.
Our AchievementsFurther contributions to government priorities include:
employment initiatives that involve the ongoing training and employment of apprentices, new graduates and trainees throughout the Statedisaster management by strengthening preparedness and response capabilitydevelopment and retention of a skilled and creative information and communications technology workforce in Queenslandproviding the community with access to historical and cultural recordscontributing to Reconciliation through the coordination of state-wide Indigenous training and employment programs, and active engagement with Aboriginal and Torres Strait Islander communities.
In other areas of its portfolio, the Department of Public Works provides a framework for regulating the Queensland racing industry and contributes to the State’s economic growth by assisting industry to expand into interstate and international markets. The department continues to support environmental initiatives in important areas such as sustainability, greenhouse gas emissions and waste management.
For the Department of Public Works, there are fi ve specifi c outputs that relate to government priorities:
Building Procurement and Asset ManagementProcurement Servicese-Government and information and communications technology StrategiesPublic Records Management and Advisory ServicesRacing Industry Services.
In 2005–06, across a broad range of responsibilities, the department’s support for government priorities resulted in a number of signifi cant achievements.
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The department provides a range of
advice and support in infrastructure
development and built asset management
to Queensland Government departments
and to other agencies.
A major purchase from Ergon provided 100% renewable power to fi ve signifi cant government
buildings in regional Queensland, including William McCormack Place in Cairns.
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Business Reporting
Under the auspices of the State Disaster Management Plan, the Department of Public Works provides three important functional lead agency roles – building and engineering services, communications, and emergency supply. Each of these roles is coordinated through QBuild with support from other units such as Project Services, Queensland Purchasing, QFleet and the Offi ce of Government ICT.
During 2005–06, the department’s Disaster Management Plan was activated on six occasions, most notably as a result of Tropical Cyclone Larry.
Tropical Cyclone Larry hit the Innisfail region on Monday 20 March 2006. The department’s response was immediate and of a magnitude not seen since 1987 when Tropical Cyclone Winifred hit the same region. Initially, QBuild responded with bottled water supplies, tarpaulins, generators, temporary accommodation solutions, prepared
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meals, fuel, cooking appliances, food items, sanitary appliances, earthmoving equipment and materials. Within days, QBuild and Project Services were extensively involved in the restoration of a wide range of State Government-built infrastructure such as heritage-listed buildings and more than 150 state schools which were closed. Within one week, all but seven of the schools were open. As well, 2,000 Department of Housing assets had been inspected and temporary repairs made.
QFleet supported the relief effort with a fl eet of vehicles for the transport of essential service personnel; SDS assisted in the provision of new school furniture and supplies; the State Government Protective Security Services coordinated security for a range of sites; and Queensland Purchasing provided assistance with the sourcing of goods and services.
Disaster Management
QBuild staff from across Queensland on the ground in Innisfail
immediately after Tropical Cyclone Larry March 2006
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Aftermath of Tropical
Cyclone Larry
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Business Reporting
David Jones, third-year apprentice from QBuild’s Innisfail
depot, clears property after Tropical Cyclone Larry.
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Annual Report 2005 - 06
QBuild was also responsible for staffi ng a free 1800 hotline which registered donations from businesses and the public, and for managing a team of 120 volunteer tradespeople assembled by the Seven Network’s Sunrise program.
QBuild continues to work with the Department of Communities and the Queensland Building Services Authority Building Coordination Centre in the coordination of repairs and/or replacement of a total of 604 homes whose owners have been assessed as not having the means to effect their own recovery.
During the recovery phase of Tropical Cyclone Larry, QBuild was again on alert to provide logistical support for the potential impact of a second Category 5 cyclone, Monica.
In June and July 2005, following severe localised fl ooding along the Gold Coast, QBuild was requested to provide a range of disaster recovery operations in support of the Gold Coast District Disaster Management Group and the Department of Communities. This involved:
engagement of consultant engineers to report on the stabilisation of houses impacted by the landslip on Currumbin Hill;stabilisation of two of the affected properties;
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clean-up operations associated with the Currumbin Wildlife Sanctuary which was located directly below the landslip zone; andproject management of repairs to 77 caravans and demountable accommodation at the heavily–impacted Miami Caravan Park, at the request of the Department of Communities.
A series of severe storms which hit South East and Central Queensland in December 2005 resulted in the activation of the department’s Disaster Management Plan. The small Central Queensland communities of Aramac and Muttaburra sustained severe damage to State Government-built infrastructure and private residences.
Also during 2005–06, QBuild provided:technical and logistical support in the containment of toxic materials following a fi re at the Binary Chemicals facility at Narangba;temporary accommodation and security services to the Department of Primary Industries and Fisheries in response to the Sugarcane Smut outbreak; andassistance in the planning stages for the reception of Australian citizens and other nationals evacuated during the Solomon Islands’ crises.
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During 2005-06, the
Department’s Disaster
Management Plan was
activated on six occasions,
most notably as a result of
Tropical Cyclone Larry.
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Business Reporting
QBuild’s Mark Baldwin, carpenter, Borallon depot (front) and Steve Germain, carpenter,
Darling Downs offi ce (back) clears property after Tropical Cyclone Larry.
Tarpaulins being placed on the roof of
Innisfail State High School
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QBuild leading-hand painter, Alan ‘Danny’ Dunn,
on site near Innisfail after Tropical Cyclone Larry
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Business Reporting
Building Procurement and
Asset Management
Built environment applied research, policy, advice and programs Deliver major initiatives and programs improving the environmental aspects of the built environment.
Government Buildings Water
Conservation Program
As a result of persistent drought conditions in much of the State and a growing awareness of the need to manage water use more carefully, the department has taken the lead role in developing the Government Buildings Water Conservation Program. Managed by the Built Environment Research Unit, the program targets the department’s offi ce buildings, facilities and parks.
A key part of the strategy involves the retrofi tting of selected offi ce buildings in South East Queensland with water-saving technologies such as water-effi cient shower heads, toilets and taps. Retrofi tting work began in April 2006 and will continue throughout 2006–07.
Government Energy Management
Strategy
Throughout 2005–06, the department continued implementation of the Government Energy Management Strategy (GEMS). This strategy aims to encourage energy–effi cient practices across the Queensland Government, resulting in more effi cient energy use, reduced greenhouse gas emissions and reduced government expenditure on energy.
As at 30 June 2006, GEMS had delivered savings in excess of $6 million.
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Renewable Energy Purchase Program
During the year, the department brokered record purchases of renewable energy under the Government Renewable Energy Purchase Program.
A major purchase from Ergon provided 100% renewable power for all state schools in regional Queensland. The agreement also covered the electoral offi ces of Members of State Parliament and fi ve signifi cant government buildings in regional Queensland:
William McCormack Place, Cairns; Dairy Farmers Stadium, Townsville; Research House, Rockhampton;Brendan Hanson Offi ce Building, Hervey Bay; andLeslie Research Centre, Toowoomba.
A contract was also signed with Energex which provided for an amount of renewable power coverage in Queensland’s schools within their franchise area.
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Building Procurement and Asset Management activities facilitate building industry improvement and provide advice and support to the Government and its agencies in the delivery of services through the cost-effective provision and management of building assets.
As at 30 June 2006, GEMS had
delivered savings in excess
of $6 million.
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Research and development of innovative
thermal comfort technologies The department maintained its commitment to research and development of innovative, energy-effi cient, cost-effective technologies for the maintenance of healthy indoor environments in government buildings, including schools.
The Norman Park State School on Brisbane’s south side is just one of the schools benefi ting from these innovative approaches. In a trial supported by the department, laser-cut, light-defl ecting panels developed by the Queensland University of Technology have been installed in pyramid-shaped skylights and in windows. The system provides more natural light in classrooms, providing a better learning environment without the heat problems associated with conventional skylights.
On a larger scale, an innovative cooling system using river water has been incorporated into the Millennium Arts Project at South Brisbane. This challenging task has resulted in a system incorporating leading-edge technology that eliminates the need to supply reticulated, potable water to the various air conditioning plants.
• Research House, Rockhampton Analysis of data on energy and water usage from Research House in Rockhampton continued, with evaluation of the second year’s data completed.
The latest data available shows that water consumption is 376,000 litres/year (1,030 litres/day) compared to an average Brisbane household’s annual consumption of 526,000 litres (1,441 litres/day).
Similarly, total energy use is 8,779 kWeh compared with an annual consumption of 9,985 kWeh for the average Queensland household, representing a 12% saving.
Research House is a practical demonstration of what can be achieved through affordable, universal and sustainable design practices.
Further research planned for 2006–07 will include continuation of the testing of alternative water heating technologies, together with implementation of systems for use of rainwater for toilets and grey water from the laundry for the garden.
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Research House is a practical demonstration of what can be achieved
through affordable, universal and sustainable design practices.
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Business Reporting
Facilitate the delivery of major building/infrastructure projectsFacilitate and manage the initiation and delivery of major building and infrastructure projects.
Boggo Road Urban Village
Boggo Road Urban Village at Dutton Park on Brisbane’s south side will include residential, retail, commercial, environmental research and recreational facilities, and the adaptive reuse of the heritage-listed gaol buildings.
In November 2005, the department lodged an application with the Brisbane City Council for Material Change of Use for the Boggo Road precinct. Approval of the application would allow for the 9.5 hectare site to be subdivided into useable parcels.
In May 2006, a contract was let for clearing of the site in preparation for future site infrastructure works including roads, services and landscaping. Facilities being removed include the women’s gaol, vehicle inspection buildings, reception centre and underground services. The site infrastructure works, which will leave the site ready for development by the public and private sectors, is planned for completion in 2008.
Millennium Arts Project
The major construction phase of the $291.3 million Millennium Arts Project at the Queensland Cultural Centre, South Brisbane started this year. Work comprised the construction of the Gallery of Modern Art, redevelopment
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of the State Library and development of associated public spaces. The project is on a massive scale and on target, with a public opening of the new precinct planned for early December 2006. On site, the workforce peaked in the fi rst half of 2006 at approximately 800.
Queensland House
The refurbished Queensland House in London was offi cially opened in May 2006 following a $4.5 million project to revitalise the facilities.
Construction works began in June 2005 and were completed in December 2005. Works included updating the fi tout throughout the building including plumbing, electricity and lift services.
Queensland House is an asset of the Department of Public Works which provides a valuable headquarters from which the Queensland Government and businesses can promote trade with the United Kingdom and Europe.
Tank Street Bridge
Early planning work was undertaken for construction of a new pedestrian and cycle bridge across the Brisbane River from Tank Street in the city to Kurilpa Point in South Brisbane.
The $63.3 million project will complete a walking and cycling loop that takes in the city, Queensland Cultural Centre, South Bank and the Goodwill Bridge, providing enjoyable and environmentally–friendly pathways around inner Brisbane.
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Proposed Tank Street Bridge
| 37 |Department of Public Works
Annual Report 2005 - 06
Rockhampton Riverbank Redevelopment
Construction work on the $9.5 million Rockhampton Riverbank Redevelopment offi cially started in October 2005. The redevelopment is designed to revitalise sections of the riverbank between the North Rockhampton Bowls Club and the Alexandra Rail Bridge, and areas on the south side between Hall Street, Victoria Park and the rail bridge.
On the north side, work completed this year included the car parking at Queens Park, while ongoing work includes the development of pathways, revegetation by Greening Australia and civil works.
On the south side, work began this year on roads, car parking facilities, improved water facilities, electricity and security services. Additional work to be completed in 2006–07 includes toilet facilities, fi shing platforms, playground equipment, barbecues, picnic shelters, built-in art and vegetation works by Greening Australia.
Robina Stadium
In 2005–06, the Department of Public Works was engaged by the Major Sports Facilities Authority to project-manage the design and construction of the
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$160 million Robina Stadium located on the Gold Coast. The stadium should be completed in 2008 in time for the National Rugby League season.
The schematic design phase of the project was completed on schedule in February 2006, with construction work starting in May 2006. Earthworks for the stadium site are complete, and piling and infrastructure works have commenced. Negotiations with the Gold Coast City Council and Queensland Transport regarding traffi c management issues are continuing.
Mackay Convention Centre
The department continued to administer the $38 million capital grant for the Mackay Convention Centre. In May 2006, the Mackay City Council, in consultation with the department, announced a revised scope of works for the project proposing the Convention Centre facility move from the River Street site to a location adjacent to the existing Mackay Entertainment Centre. A new aquatic lagoon development will be nearby at Canelands Park.
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Site of the Robina Stadium on the Gold Coast, due for completion in 2008.
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Business Reporting
Provision and management of government accommodation and other infrastructure Provide and effi ciently manage cost–effective and viable government offi ce accommodation, employee housing and infrastructure that meets government objectives and supports agencies’ service delivery requirements.
Restoration of the Old Museum
Work began in July 2005 on Stage Three of the restoration of the Old Museum Building in Bowen Hills in Brisbane. Originally built in 1891, the Old Museum has undergone signifi cant restoration of the Concert Hall exterior including complete restoration of windows and doors, and repairs to the façade, brickwork and masonry. As part of the $7.3 million project, the roof is being replaced with new corrugated galvanised steel sheeting and the large stained glass window – a prominent feature of the Exhibition Hall – has also been restored. Stage Three is expected to fi nish in late 2006.
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Queensland State Archives expansion
The design and documentation phase to substantially boost public records storage in Queensland State Archives started in 2005–06, with completion due in October 2006. The new facility will double the current storage capacity, and will include provision for staff areas and the State’s future Digital Archive. It is anticipated that work on site will commence in early 2007, with the new facilities expected to be completed in late 2008.
Queensland Theatre Company Scenery
Workshop
A new scenery workshop at Montague Road, South Brisbane was constructed, allowing the Queensland Theatre Company to locate all of its operations to a single site.
Regional Offi ce Accommodation
Strategies
Regional offi ce accommodation strategies were completed for Maroochydore, Caboolture and Ipswich, providing equitable and cost-effective offi ce space to meet the long-term service delivery needs of agencies in each of these signifi cant centres in South East Queensland.
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Old Museum in Bowen Hills, Brisbane
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Annual Report 2005 - 06
Building policy and advice, government and industry relationships, and industry supplier base development Develop and administer whole-of-Government policies and guidelines, and provide advice to Government and agencies on policy aspects of building asset management and building capital works. Promote an innovative, effi cient and competitive building industry; an improved client–supplier relationship between Government and industry; and effective risk management.
Building Policy Unit completed comprehensive reviews of the whole-of-Government Capital Works Management Framework and Maintenance Management Framework. The Capital Works Management Framework is the Queensland Government’s key policy instrument for managing risks in the planning and delivery of government building projects. It covers the initiation, development and implementation of building projects and programs undertaken by the Queensland Government. The Maintenance Management Framework is the key policy instrument for managing risks associated with the maintenance of government buildings. The reviews will facilitate the development of updated and improved policy frameworks in 2006–07 and their publication, subject to government approval.
4. The unit also managed the trial of the Building Asset Performance Framework. The trial provided an increased understanding of building performance issues and will facilitate the development of a whole-of-Government performance framework for built assets.
The unit produced the annual Industry Guide: Queensland Government Building Projects 2005–06 and provided quarterly updates on the website to enable building industry contractors to better plan for their provision of services to Government.
The Building Policy Unit continued to contribute to research and improvement initiatives, including the Cooperative Research Centre for Construction Innovation (CRCCI), the Australian Procurement and Construction Council (APCC) and the Construction Industry Institute Australia (CIIA).
The refurbished Queensland House in London
was offi cially opened in May 2006.
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Business Reporting
Strategic asset management Develop and enhance strategic asset management across the government sector with the provision of advisory services, guidelines, tools, systems and special programs.
In its role of developing and enhancing strategic asset management across the government sector, Business Strategy and Development:
coordinated joint asset management initiatives upon request from other government agencies, including undertaking a review of data from recent audits of asbestos–containing material in hospitals and reconciling it with the whole-of-Government asbestos register on behalf of Queensland Healthdeveloped the whole-of-Government Asbestos Management and Control Policy and Strategy for Government Buildings which provides a framework for the management of asbestos-containing materialcommenced the development of the web-based Built Environment Materials Information Register (BEMIR) to manage hazardous materials and substances in government buildings using a risk management–based approach. BEMIR will comply with the National Occupational Health and Safety Commission’s Code of Practice for the Management and Control of Asbestos in Workplaces
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continued its program management role for the Asbestos Roof Replacement Program, delivered by QBuild, and developed a collaborative approach with the Department of Education and the Arts to ensure the acceleration of the program of work was achievedcontinued to monitor the delivery of the Asbestos Management Program in conjunction with QBuild and lead the Asbestos Management Committee in its role as the Queensland Government’s management authority for asbestos–containing material in government buildings.
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Business Strategy and
Development developed the
whole-of-Government Asbestos
Management and Control Policy
and Strategy for Government
Buildings which provides a
framework for the management
of asbestos–containing material.
Removal of asbestos-containing material from Ipswich State High School
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Annual Report 2005 - 06
Norman Park State School on Brisbane’s south side is just one of the schools benefi ting from innovative approaches to
energy conservation. Laser-cut, light-defl ecting panels have been installed in pyramid-shaped skylights and in windows
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Business Reporting
The Procurement Services output is focussed on achieving cost savings and benefi ts through effective procurement policy, practice and education. Queensland Purchasing provides a policy framework for the whole-of-Government, advice, and a range of services to Queensland Government agencies to assist them to advance government priorities, and achieve value for money with probity and accountability.
The total value of goods and services procured by the Queensland Government was approximately $6 billion in 2005–06. It is therefore very important that the Queensland Government is an effective and demanding purchaser. By assisting agencies to improve procurement expertise and practices, signifi cant gains are made towards the achievement of government priorities and cost savings.
Procurement ServicesMajor achievements and projects
Queensland Purchasing’s Travel Management Unit completed the design stage of the whole-of-Government Travel Management System. Work is under way to customise the system to be piloted across the department early in 2007. The unit also initiated the establishment of a Travel Management Working Group which consists of most Australian states and the Australian Government. The group will closely cooperate on travel procurement and management to reduce travel costs for all participants. The State Purchasing Policy review commenced, to ensure that the policy encourages a high standard of capability and performance in procurement, and is consistent with legislative requirements and Queensland’s trade obligations. The revised policy and guidelines are expected to be implemented in mid–2007.
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Queensland Purchasing’s Tage Tveit, Project Offi cer and Gail Parker-Morris, Senior Procurement Offi cer
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Annual Report 2005 - 06
The Sustainable Procurement Program aims to assist agencies to buy more environmentally–preferred goods and services. Tools and information about how to buy green were developed for the Queensland Government Marketplace website. The Queensland Purchasing Procurement Performance Group reviewed signifi cant areas of common expenditure by agencies and their Shared Service Providers, and recommended improved purchasing arrangements.Queensland Purchasing implemented a software solution to standardise and streamline tendering and contract management practices. This work is the precursor to the development of a whole-of-Government solution for tendering and contract management.The Procurement Services unit continued to roll-out effective, whole-of-Government standing offer and common-use arrangements, achieving identifi able savings of 10% per annum for the sector through aggregation of demand, streamlined tender processes and consistency of terms and pricing.Queensland Purchasing established a whole-of-Government graduate recruitment program for procurement, with eight graduates being placed in agencies and Shared Service Providers in 2006.
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Queensland Purchasing has developed a methodology that will help agencies to assess the adequacy of their procurement performance and determine what improvements need to be made. The methodology uses national and international benchmarking data against which agency procurement management will be compared. In partnership with the Crime and Misconduct Commission, Queensland Purchasing completed new guidance materials for agencies on Ethics, Probity and Accountability in Procurement.
Queensland Purchasing also:updated and implemented Purchasing Certifi cation curriculum and assessment methodologies designed to develop and determine an offi cer’s purchasing capabilityupgraded the Queensland Government Marketplace website in line with the whole-of-Government web writing policy. The website is the centre of purchasing information for procurement offi cers across the sector and suppliers to Governmentcontinued the Brisbane and Regional Client Network program events which provide a forum for agencies to develop a better understanding of good purchasing practices and allow Queensland Purchasing to keep informed of clients’ requirements.
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Queensland Purchasing established
a whole-of-Government graduate
recruitment program for procurement, with
eight graduates being placed in agencies
and Shared Service Providers in 2006.
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Business Reporting
The Department of Public Works provides leadership, direction and support in information and communications technology (ICT) strategies through the Offi ce of Government ICT.
Major achievements and projectsThe Queensland Government Data Centre Strategy was developed to investigate the consolidation of ICT data centres and data networks to deliver improved services and value for money.The sector-wide status report for disaster recovery planning for information and ICT assets was completed.The Queensland Government Shared Whole-of-Government ICT Services: GovNet Strategy was developed to consider the future development of shared and whole-of-Government ICT services, particularly GovNet. GovNet is a secure, whole-of-Government ICT platform that supports cross-agency and whole-of-Government initiatives by allowing agency users to easily share and exchange information, and connect securely to other networks.The Queensland Government Mobile Computing White Paper and Queensland Government Mobile Computing Framework were developed to assist agencies in determining optimal solutions for mobile computing.Approximately 1,100 ICT suppliers were transitioned to the new Government Information Technology Contracting (GITC) Version 5 Framework which aims to provide consistency, clarity and certainty in ICT procurement and contractual arrangements.
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E-Government and Information
and Communications
Technology (ICT) StrategiesThe Offi ce of Government ICT has implemented a number of strategies that have resulted in ICT industry participation, with involvement in Offi ce of Government ICT initiatives being at an all–time high.The Queensland Government Information Security Strategy and the Queensland Government Authentication Framework were developed to provide agency guidance on whole-of-Government information security issues.Development of the Queensland Government Desktop Strategy and the Queensland Government Desktop Best Practices Framework was undertaken to provide agencies with best practice guidelines on managing and developing desktop operating environments.The ICT Workforce Capability Plan for Government Employees was developed to provide a whole-of-Government direction for building and maintaining a public sector workforce with the skills necessary to make best use of ICT into the future.The fourth and fi nal round of the Technology Survival Skills program was launched, offering not-for-profi t organisations a total of $250,000 to provide training in computer use for disadvantaged members of the community. As part of progressing the development of the Government Enterprise Architecture, the Offi ce of Government ICT developed and applied the Queensland Government ICT Planning Methodology to gather baseline ICT information for key areas of investment across all departments. This information identifi es opportunities for sharing, reuse and collaboration of ICT initiatives, as well as identifying duplication across
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Annual Report 2005 - 06
agencies and common areas of large expenditure.The whole-of-Government SmartNet Panel arrangement was reviewed to expand the range of services and number of competitive suppliers offering data carriage and Internet services.The Offi ce of Government ICT implemented a review of the whole-of-Government SmartAccess Panel to improve the range of services and to offer new suppliers the opportunity to sell competitively-priced, fi xed-line telephone services to agencies.
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…the Offi ce of Government
ICT developed and applied
the Queensland Government
ICT Planning Methodology
to identify opportunities
for sharing, reuse and
collaboration of ICT initiatives,
as well as identifying
duplication across agencies
and common areas of
large expenditure.
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Business Reporting
Public Records Management
and Advisory ServicesQueensland State Archives is established under Section 21 of the Public Records Act 2002 (the Act) as the State’s archives and records management authority. As the custodian of the State’s largest and most signifi cant documentary heritage collection, Queensland State Archives manages and preserves the State’s permanent public records and facilitates access to those records.
In addition, Queensland State Archives is the lead agency for public recordkeeping in Queensland. The Act and its accompanying Information Standards enable Queensland State Archives to develop and implement a comprehensive recordkeeping policy
framework to ensure a consistent approach to the creation, management, disposal, storage, preservation and retrieval of government information.
Queensland State Archives also provides support to the Public Records Review Committee which was formed in 2003 to advise on the administration and enforcement of the Act.
Carlos Arevalo, File Issue Supervisor, examines a map from the collection held at Queensland State Archives.
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Annual Report 2005 - 06
Major achievements and projectsQueensland State Archives released to public authorities an e-Government Policy Framework for Electronic Records Management Discussion Paper, seeking feedback on the issues, challenges and priorities to be faced in the management of electronic records over the next three to fi ve years. Responses from the discussion paper will be analysed by late 2006, with additional electronic records management policies for public authorities developed from early 2007.The redesign of Queensland State Archives’ collection management database, Archives One, and the online public access catalogue, ArchivesSearch, was completed. Testing was also completed and implementation is expected in September 2006. Public Access staff will conduct seminars to introduce clients to the new ArchivesSearch online catalogue. Collection management procedures have largely been rewritten to align work practices more closely to standards employed in the cultural heritage sector, notably for archival description and authority control. The new Archives One offers greater fl exibility in the arrangement and description of records which will help the researcher identify records.
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Queensland State Archives conducted further research and engaged with key stakeholders to identify options for a future audit and compliance framework for recordkeeping in Queensland’s public sector. Below-standard recordkeeping cultures in a number of agencies have been highlighted in the past few years in public documents, including reports issued by the Queensland Audit Offi ce, the Crime and Misconduct Commission and the Queensland Ombudsman. The fi rst compliance deadline for Information Standard 40: Recordkeeping is December 2006 for State Government departments and local governments. Queensland State Archives plans to undertake an initial assessment of compliance in 2007 through a survey conducted in partnership with the Offi ce of Economic and Statistical Research, and will also consult with public authorities and other key stakeholders to analyse options and identify a suitable recordkeeping compliance framework for Queensland’s public sector.
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Queensland State Archives released to public
authorities an e-Government Policy Framework
for Electronic Records Management Discussion
Paper, seeking feedback on the issues,
challenges and priorities to be faced in the
management of electronic records over the next
three to fi ve years.
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Business Reporting
Racing Division provides a framework for the regulation of the Queensland racing industry, leading to improved integrity and public confi dence in the industry.
Racing Division implements and monitors a regulatory and policy framework which devolves responsibility for self-management to the Queensland racing industry.
The division facilitates the racing industry’s transition to regulation under the Racing Act 2002 and monitors compliance with the Act.
To protect the integrity of the racing industry, Racing Division, through the Racing Science Centre, provides drug testing and other scientifi c services.
The division also researches and monitors international, national and state developments and trends in racing, wagering and related industries.
Major achievements and projectsOn 3 June 2005, Commissioners Daubney and Rafter delivered the Report of the Queensland Thoroughbred Racing Inquiry. The inquiry identifi ed no criminal behaviour by any person. Its main recommendations related to internal matters within the thoroughbred code that are being addressed by Queensland Racing Limited, the control body for thoroughbred racing in Queensland. Queensland Racing Limited liaised with the Australian Racing Board on recommendations to be implemented nationally. The Racing Division monitored progress during the implementation process.In 2005, the Government amended the Racing Act 2002 to reform industry structures to better address the needs of non-TAB (country) thoroughbred racing. The main changes implemented were the establishment of Country Racing Associations and the Queensland Country Racing Committee. Further, the control body is required to allocate at least 7% of its share of the net UNiTAB product fee as prize money for race meetings conducted by non-TAB (country) clubs. During 2005–06, the Racing Division provided advice and assistance to Queensland Racing in carrying out the reforms.Queensland hosted the 2006 Racing Ministers’ Conference in Brisbane in May. Ministers and offi cials from Australia and New Zealand attended the annual forum. The Conference was addressed by representatives of the Australian Racing Board, Australian Harness Racing Council, Greyhounds Australasia and the Coalition of Major Professional Sports. A signifi cant issue addressed by the conference was the need to maintain stringent restrictions on the use of therapeutic drugs on, or close to, race day. All Ministers strongly supported maintaining the existing drug control regime.
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Racing Industry Services
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Annual Report 2005 - 06
Progress was made towards transferring Callaghan Park racecourse, Rockhampton to industry ownership under the Government’s Deed of Grant in Trust racecourse policy. This policy gives key race clubs the opportunity to operate commercially and to use assets more productively. Arrangements commenced for the surrender of the Deed of Grant in Trust by the Trustees of the Rockhampton Racecourse Reserve. The timeframe for transferring freehold title in Callaghan Park racecourse to the Rockhampton Jockey Club is late 2006.Racing Division facilitated the transition of Queensland Racing from a statutory authority to a company limited by guarantee. This fulfi lled legislative requirements under the Racing Act 2002 and was the precursor to Queensland Racing Limited becoming the control body for the thoroughbred code of racing in Queensland. The transition, which represents the fi nal phase in reforming the thoroughbred code in Queensland, will take effect from 1 July 2006.During March 2006, Racing Division hosted and co-organised with Animal Health Australia the fi rst Industry Liaison Offi cer training workshop for the horse industry in Queensland. The workshop attracted participants from the racing and pleasure horse industries. All participants who successfully completed the training workshop were included in the national database of accredited Industry Liaison Offi cers. These offi cers play a vital role in keeping industries and local communities informed during any disease outbreak.In late 2005, a working party was formed to review the Racing Animal Welfare and Integrity Board’s ‘Procedures about the way things for analysis are to be taken and dealt with’. The group consisted of representatives of the Racing Animal Welfare and Integrity Board, Racing Division, Queensland Racing Limited, Queensland Harness Racing Board and Greyhound Racing Authority. The review is due to be completed in late 2006.
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In 2005, the Government
amended the Racing Act
2002 to reform industry
structures to better address
the needs of non-TAB (country)
thoroughbred racing.
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Business Reporting
QBuildQBuild is a commercialised business unit of the Department of Public Works and is responsible for planning, managing and delivering a broad range of building maintenance and construction-related services to government agencies. In addition, other facility management services are provided including State Government Protective Security, in-house cleaning and horticultural services. QBuild is also responsible for delivering a number of Community Service Obligations on behalf of Government, such as disaster management and apprentice training including Indigenous apprentices.
Major achievements and projects
QBuild is one of the largest employers in Queensland of construction industry apprentices, employing and training above the industry standard. During 2005–06, the QBuild workforce included 320 building trade apprentices in 15 different trade callings such as carpenters, plumbers and painters. Apprentices are employed across the State, with approximately 60% engaged outside of the Brisbane metropolitan area.During the year, QBuild responded to numerous natural disasters including Tropical Cyclone Larry in North Queensland and severe storms on the Gold Coast, and in Aramac and Muttaburra. Disaster preparedness and response capabilities are maintained through QBuild’s involvement in various disaster management committees and internal training. Further information about QBuild’s role in this area is included in the Disaster Management section of this report.Innovations in service delivery to the Department of Education and the Arts by the State Government Protective Security Service saw wider patrol coverage of schools state-wide, with no increase to costs and resources. QBuild attended to
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Commercialised Business Unitsat least one incident per week state-wide as a result of fi re and vandalism.A $120 million, 10-year, state-wide program commenced to replace 933 asbestos roofs in 344 state schools. QBuild is managing the delivery of the Asbestos Roof Replacement Program on behalf of the Department of Education and the Arts, and is working collaboratively to accelerate the delivery of the program to within a three-year timeframe. As at 30 June 2006, approximately 39% of roofs valued at $38.9 million had been replaced. QBuild is working collaboratively with Project Services to deliver the Preparatory Year facilities for state schools in regional Queensland. As at 30 June 2006, 28 projects had been completed to the value of $3.9 million. (This fi gure does not include the supply of prefabricated buildings which were installed on 22 sites with an estimated value of $13.2 million.)The Department of Housing and QBuild’s Cape York Region entered into a partnering arrangement, as part of an Urban Renewal Program, to upgrade the physical appearances of houses in Mooroobool. The process involved the joint scoping of each house to achieve the most cost-effective design solution and provide amenities acceptable to community standards, taking into account budgetary and existing design constraints.Signifi cant projects which were completed in 2005–06 by QBuild included:
refurbishment of a three-storey building to establish the Nambour Cancer Care Unit;construction of the Saibai Island administration block;refurbishment of approximately 100 community residential properties at Doomadgee;fi tout of offi ces for the Mount Isa ABC Radio Station;
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Annual Report 2005 - 06
alterations and refurbishment works at the Dalby Hospital Aged Care Unit;fi tout of Rockhampton’s Child Safety Offi ce; andrefurbishment of the Townsville State High School Science Block that had been destroyed by fi re.
A number of projects involving heritage restrictions are ongoing, including:
restoration of Parliament House;ANZAC Square Shrine of Remembrance refurbishment; andStage 1 of the redevelopment of the Lady Bowen Precinct, Spring Hill, Brisbane.
QBuild is committed to a process of continuous improvement and manages an internal program of business improvement initiatives. It is currently working towards achieving accreditation under AS48001 in Workplace Health and Safety Management.
Environment
QBuild is acutely aware of the impact of its work on the environment and the community, and constantly reviews its methodologies and processes.
On projects to remove asbestos-containing materials, risk assessments were undertaken and, when required, air monitoring was conducted to demonstrate that work methods had not elevated the levels of asbestos dust in the air. Tree protection forms part of an environmental management initiative which requires a written request for the removal of any tree. Strong evidence to support their removal and alternative solutions must be provided during individual reviews of tree removal requests.As water restrictions were implemented in South East Queensland:
QBuild modifi ed its operations in the cleaning and horticultural maintenance of government assets; andQBuild assisted in the installation of smart metering in 80 George Street and 111 George Street, Brisbane. New water-saving technologies were installed in both buildings, enabling
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water usage trials to be conducted to provide benchmark fi gures. QBuild will deliver the water smart buildings program to all State Government-owned offi ce buildings in South East Queensland.
Research is being undertaken to develop permanent options for an alternative water supply for Roma Street Parkland. A pumping system is being installed to pressurise irrigation directly from the lake and the water features on site have been converted to recycled water.
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ANZAC Square Shrine of Remembrance
QBuild is at the forefront of heritage restoration projects.
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Business Reporting
Project Services Project Services is a multidisciplinary, building and property consultancy operating in the public sector business environment. It assists its clients to manage the delivery of capital works programs and projects within the Government’s Capital Works Management Framework, minimising risk and assisting in meeting the reporting obligations of the Government. It provides a full suite of professional building-related consultancy services including program, project, risk and asset management, design, quantity surveying and contract administration.
Project Services has offi ces located throughout Queensland – in Brisbane, Cairns, Townsville, Rockhampton, Sunshine Coast, Toowoomba and the Gold Coast. These offi ce locations allow Project Services to deliver projects and programs anywhere throughout the State.
Project Services also outsources a signifi cant portion of its work to the private sector by packaging and brokering contracts with consultants and contractors. It manages the commercial interface between the Government (as client) and the building industry. Project Services has continued its strong relationship with Queensland’s consulting and contracting companies, and has managed many of the State’s major projects over the last fi nancial year.
Major achievements and projects
Project Services experienced a substantial increase in demand for its services during 2005–06, with over 4,700 active projects recorded for the year.On behalf of clients, Project Services awarded consultancy commissions and building contracts to the private sector to the value of $740 million during the fi nancial year. Over 340 consultancy commissions and 300 construction contracts were awarded.Project Services’ turnover was $135 million, an increase of over 50% on the 2004–05 fi nancial year. It managed
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major and minor capital works projects and programs on behalf of government clients; expanded its services to include the management of asset acquisition programs for Queensland Health and the Department of Education and the Arts; and provided clients with assistance and support in procurement, project management and design.Throughout the year, Project Services provided project management, professional consulting services and/or contract management services on major Queensland Government projects, including the:
Millennium Arts Project ($291.3 million); 25,000-seat Robina Stadium on the Gold Coast ($160 million);Tissue Transplant Centre for Queensland Health ($12.5 million) (Project Services provided full design consultancy services and project management on this technically-advanced scientifi c facility);Rockhampton Riverbank Redevelopment ($9.5 million);Brisbane Cricket Ground Redevelopment, Stage Six ($50 million) (This project delivered an additional 5,000 seats and completed the seating bowl to the stadium. The project was managed and staged to allow the Brisbane Lions’ home games to proceed uninterrupted);Maritime Museum Dry Dock project ($3 million);Corrective Services facilities at Townsville ($260 million) and the Arthur Gorrie and Sir David Longland centres at Wacol ($148 million);Queensland State Archives Expansion Stage 2 construction ($50 million); Preparatory Year of Schooling Program for the Department of Education and the Arts (Project Services is working collaboratively with QBuild to deliver a large component of the program);delivery of Queensland Health’s capital works projects including the redevelopment of the Prince Charles Hospital ($102 million), the Emergency Department
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Annual Report 2005 - 06
Redevelopment Program, the Residential Aged Care Program and the initiation of the $90 million Accommodation Acquisition Program throughout the State;undertaking of the role of technical advisor to the Department of Employment and Training on the $542 million Southbank Institute of TAFE Public Private Partnership; andundertaking of the role of State’s Representative on the Tennyson Riverside Development which, in part, is delivering the new $60 million State Tennis Centre.
Project Services is proud of its recertifi cation in ISO 9001:2000 which demonstrates its commitment to quality assured service delivery to clients, and its recertifi cation in ISO 14001:2004 which demonstrates its commitment to working with clients to provide sustainable environmental solutions.Project Services completed its workforce plan which identifi ed issues and solutions to pressures such as skills shortages, staff retention and attraction, and the ageing of the workforce. It also continued its commitment to the upgrading of its technology with a wireless access network and provided state-of-the-art videoconferencing facilities to all its offi ces around the State. This technology has streamlined the communication between the Brisbane
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and regional offi ces, and signifi cantly contributed to the delivery of the Department of Education and the Arts’ capital works program for 2005–06.Through the Centre of Excellence for Tropical Design in Townsville, Project Services has continued its involvement with the Townsville City Council, City of Thuringowa, James Cook University, Ergon Energy and other industry groups by co-sponsoring a number of events in the region throughout the year.Project Services again this year received recognition for its project management and design expertise, receiving a number of signifi cant industry awards at a state and national level.Project Services, together with the Royal Australian Institute of Architects and a number of practising private sector architectural companies, have continued to support and mentor the Architectural Practice Academy (APA). The APA completed its intake of 12 graduates and continues to gain recognition from clients and industry groups while providing invaluable experience for its graduates.
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Frigate, HMAS Diamantina, is moved from the Queensland
Maritime Museum dry dock to enable the $3 million restoration.
Removal of the temporary external steel wall
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Business Reporting
QFleetEstablished in 1991, QFleet’s key role is to provide vehicles to a client base which includes government departments and agencies, as well as publicly-funded, non-government organisations. By delivering enhanced fl eet management services on a whole-of-Government basis to improve effi ciencies and generate savings, QFleet is working to ensure that overall fl eet costs are kept to a minimum. QFleet currently leases approximately 13,750 vehicles. QFleet’s key services are:
management of the risks associated with vehicle ownership and operationfl eet leasingfl eet management and advisory servicesvehicle rentalsvehicle servicing, maintenance and repairs.
QFleet operates from three locations within Brisbane – City, Zillmere and South Brisbane.
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Major achievements and projects
Potential whole-of-Government savings of $2.7 million per annum were identifi ed by reducing large passenger vehicles by approximately 25% and replacing these vehicles with smaller, more fuel-effi cient vehicles. QFleet has already started this process, with an approximate 3% reduction in large passenger vehicles and an approximate 17% increase in small passenger vehicles from 1 July 2005 to 30 June 2006.QFleet proactively encouraged the use of environmentally-friendly, fuel-effi cient vehicles. As at 30 June 2006, there were 212 Toyota Prius vehicles and 648 diesel-powered vehicles in the fl eet.The Queensland Government’s ethanol fuel initiatives were supported by introducing a policy of not offering for lease E10-incompatible petrol vehicles. The amount of E10 being dispensed from the South Brisbane Service Centre has increased by 57% over the past two years. E10 now accounts for 86% of petrol sales at the South Brisbane Service Centre.QFleet implemented Fleetscape, the whole-of-Government fl eet management system to better manage the fl eet profi le and reduce the risk of asset ownership to Government
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Mike Berry, QFleet Sales Liaison Offi cer, provides sales assistance to a customer at QFleet’s Zillmere sales site.
| 55 |Department of Public Works
Annual Report 2005 - 06
CITECCITEC supplies information and communications infrastructure and information management services to Queensland Government agencies and private sector businesses. CITEC specialises in delivering business solutions to streamline and support processes vital to customer operations.
Major achievements and projects
CITEC completed key whole-of-Government projects concerning shared services and infrastructure in collaboration with CorpTech, the Queensland Government’s corporate system provider.Major systems integration projects commenced on behalf of clients in 2005–06 included:
Integrated Justice Information System (IJIS) – providing a hub for integrating multi-agency elements of a sector-wide offender management process covering Police, Justice, Corrections and Communities;CorpTech Fusion, Infrastructure Consolidation Enablement (ICE), Shared Services Solutions (SSS) and Regional Connectivity projects – consolidation of multiple, disparate fi nance and human resources systems infrastructure into a single consolidated environment delivering $4.5 million worth of savings to the Queensland Government; andConfi rm – provision of e-fi ling solutions to the Victorian Department of Justice and the Victorian metropolitan and regional legal fraternity, providing $5 million of business to the Queensland Government. Confi rm also implemented a hub to integrate the Victorian Department of Justice Case Management System.
CITEC enhanced its IT Service Management, Project Governance and Pursuit Management Frameworks, promoting a new sense of cooperation between CITEC’s sales, technical and operations divisions. CITEC also renewed its focus on product management to
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assess and maintain a leading edge in the product and service portfolios it delivers within the ICT market.CITEC established new partnerships and alliance programs within the information and communications technology industry. Smart Service Queensland benefi ted from the provision of interactive voice services jointly provided by CITEC and a Queensland-based provider of voice self-service solutions, iTa. CITEC has also established several other alliances with Queensland-based companies for the provision of SAP services. In 2005–06 CITEC developed, implemented and tested business continuity and disaster recovery plans, quality and security accreditations. The organisation met all quality and security standards requirements to ensure continuing national accreditation for Information Security Management (AS/NZS 7799.2:2003) and Quality Management Systems (AS/NZS ISO 9001:2000). CITEC’s information brokerage service, CITEC Confi rm, increased access to key government information databases. Clients now have access to 39 databases. Additions include NSW Offi ce of State Revenue Electronic Duties Returns and Baycorp’s Realty Check.CITEC periodically reviews and updates its disaster recovery plans to incorporate changes in business requirements. CITEC tests the plans regularly. During 2005–06 a thorough test, based on a pandemic infl uenza scenario, was completed successfully. Also, during 2005–06, CITEC began a major project to upgrade its Confi rm disaster recovery solution to ensure CITEC Confi rm could continue to function following a disaster and to minimise any data losses from such an event.
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| 56 | Section 2
Business Reporting
GoprintGoprint is the Queensland Government’s provider of print-based communications and associated services.
As the Queensland Government printer for 144 years, Goprint’s primary role is to provide reserved services that support Parliament and ensure a permanent record of government business. These services include the printing of Queensland legislation, Hansard, Government Gazettes, ballot and Budget papers, and other government information.
Goprint is also responsible for producing highly-sensitive documents under strict security to very tight timeframes. The provision of secure and confi dential projects is a key service provided to the Queensland Government, and Goprint is geared to respond to these priority projects with complete discretion and accountability.
However, provision of these services requires an infrastructure which is not always fully used given the irregularity of the demand involved. Goprint therefore seeks to balance that readiness with the production of a range of conventional printing and associated services for use by other government organisations.
Those services include creative design, bureau services, desktop publishing, on-demand digital printing and copying, variable data, offset printing, and the publishing of information using new technologies such as the Internet/Intranets, CD-ROMs and traditional print.
Major achievements and projects
Goprint entered into an arrangement with Yeronga Institute of TAFE to provide all-digital printing of coursework and educational materials allowing the TAFE to realise savings and to focus on core activities. This model has been extremely successful and has led to future opportunities for shared service initiatives between Goprint and other government agencies. Approval was obtained to upgrade all digital equipment to contemporary standards. The new colour and black-and-white devices incorporate digital technology that provide extended functionality to customers as well as improved price competitiveness, turnaround times and quality.The State Budget documents were delivered in line with government requirements, further demonstrating Goprint’s fi rst-class service in delivering parliamentary papers, maintaining confi dentiality and meeting tight deadlines. Approval was obtained to acquire a new pre-press system and offset printing press. The new equipment and technology is expected to be commissioned by the fi rst quarter of 2007. The new equipment profi le will have a substantial positive impact on customers through greatly improved quality, effi ciency, price and speed of production.
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Goprint is responsible for producing highly-sensitive documents under strict security to very tight timeframes.
| 57 |Department of Public Works
Annual Report 2005 - 06
SDSSDS incorporates three business divisions: SDS Publications, SDS Logistics and SDS Distribution. SDS Publications offers a publishing, retail, warehousing and single distribution point for all government publications and information to the community. SDS Logistics provides shared service warehousing and distribution services to agencies within Government. SDS Distribution is an online retail and distribution business which trades merchandise, offi ce supplies and furniture products to schools and government.
Major achievements and projects
On 1 July 2005, the Main Roads Brendale warehousing site was successfully transitioned to SDS. More than 85% of the site is now being used compared to an estimated previous usage of around 35%. Under the Shared Service Initiative, SDS now provides warehousing and/or inventory management and distribution for eight government agencies – Main Roads; Queensland Transport; Housing; Queensland Electoral Commission; Natural Resources, Mines and Water; Sport and Recreation; Public Works (Boggo Road Urban Village); and CSQ Finance. The facility was awarded for innovation in the 2005 Department of Public Works Recognition of Excellence Awards.
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On 1 July 2005, Goprint Publications was also successfully transitioned to SDS. The move included the transfer of staff and facilities. SDS Publications, in conjunction with Smart Service Queensland, launched The Government Bookshop on 1 July 2005. The bookshop, retail and online, is a whole-of-Government initiative aimed at improving community access to Queensland Government publications and information.SDS, with the Department of Education and the Arts, won a competitive public tender for an estimated $15.2 million Preferred Supplier Arrangement for Prep Resources and other offi ce and furniture products.SDS was awarded a substantial export contract valued at approximately $265,000 for scientifi c equipment and supplies for an AusAID-funded school project in Vanuatu. SDS was chosen as the preferred supplier and exporter of school products to the small island nation of Kiribati, under one of the Australian Government’s AusAID programs. In total, SDS received over $900,000 in orders from overseas customers.SDS secured an arrangement with C&K Childcare for the supply of offi ce products for 58 centres throughout Queensland.SDS supplied initial emergency response stock to the value of $68,000 to Innisfail schools after Cyclone Larry.
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Phil Hoskins, Storesperson, SDS Logistics inspects stock.
| 58 | Section 2
Business Reporting
Under the existing departmental governance framework, the Corporate Governance Board provides stewardship for the department. Governance committees provide assistance to the Corporate Governance Board. The Audit Committee gives advice as required to the Director-General.
The Corporate Governance Board meets monthly to provide strategic direction and consider policy, plans, strategies and projects.
The Executive Committee focusses on achieving communication and information sharing throughout the department.
The Director-General chairs the Corporate Governance Board and the Executive Committee.
Corporate Governance
Strategic
Initiatives
Department of Public Works Corporate Governance framework
| 59 |Department of Public Works
Annual Report 2005 - 06
| 60 | Section 2
Business Reporting
Director-General
Mal GriersonBEcon, MPubAdmin, FACS
Mal was appointed Director-General in October 1998.
Previously, he had held numerous senior Queensland Government positions, with extensive involvement with the private sector in the areas of information and communications technology and building construction.
Mal is a member of the Institute of Public Administration Australia, a Fellow of the Australian Computer Society and is the Chair of the Australian Procurement and Construction Council.
Deputy Director-General (Works)
Max SmithBTech, FIE(Aust), CP Eng, FAICD, FAIB
Max was appointed to the role of Deputy Director-General (Works) in February 2005.
The majority of Max’s career has been in the management of public works including roles as the General Manager of QBuild and Project Services. He has also held senior positions in the Australian Government including Construction Manager for the Brisbane International Airport and Deputy Commissioner-General of the Australian Pavilion at Expo 88.
Max is a Civil Engineer and a Fellow of the Institution of Engineers – Australia. He is also a Registered Practising Engineer in Queensland, a Fellow of the Australian Institute of Company Directors and a Fellow of the Australian Institute of Building.
Corporate Governance Board
| 61 |Department of Public Works
Annual Report 2005 - 06
Deputy Director-General (Services)
Tony WatersBA, FAICD
Tony began in the role of Deputy Director-General in October 2003, having spent the previous seven years as General Manager of QBuild. Prior to that, he had over 10 years experience in a range of executive management roles relating to the provision of public housing services.
He brings to the position extensive experience in public sector service delivery.
In his current role, as well as supporting the Director-General in the running of the department, Tony is actively involved in the pursuit of improved service delivery outcomes through the adoption of a stronger whole-of-Government approach to service delivery.
Director, Governance and Review Robyn TurbitBCom, BEcon, MIIA
Robyn was appointed to the position of Director, Governance and Review on 25 November 2004 having held previously the position of Director, Internal Audit from 2001.
She has extensive private and public sector experience in fi nancial management and auditing including fi ve years in fi nancial management consulting.
Robyn is a member of the Institute of Internal Auditors.
| 62 | Section 2
Business Reporting
Director, Finance
Tony WoodwardBBus (Accountancy), MFinPlan, FCPA
Tony was appointed to this position in May 1994.
A qualifi ed accountant, he has more than 30 years’ private and public sector experience in fi nance and information technology.
Tony is responsible for strategic fi nancial planning, budget management, fi nancial policy and statutory reporting across the department.
Director, Human Resources
Stephen LongBA
Stephen has performed this role since October 2002.
He has more than 20 years’ experience in human resource management and has held senior positions in the Australian and Queensland public sectors.
Stephen is responsible for the department’s human resource management, industrial relations, organisational development and change management functions.
| 63 |Department of Public Works
Annual Report 2005 - 06
Director, Corporate Planning
and External Relations
Malcolm McMillanGAICD
Malcolm has performed this role since Febuary 1999, having joined the Queensland public sector in 1971.
He has held senior executive positions in different agencies of the Queensland public sector.
Malcolm heads the department’s corporate planning, corporate marketing communications, international business, market research, community engagement, intergovernmental relations and Indigenous affairs initiatives.
| 64 | Section 2
Business Reporting
Chair
Mal Grierson Director-General
Members
Boyd Backhouse Director, Legal ServicesSelwyn Clark A/Executive Director, Technical Services Bruce Cory A/Director, South East Queensland Group Allen Cunneen Director, Regional Queensland Group Keith Eaton A/General Manager, QBuildKeith Farr A/Executive Director, Business Strategy and DevelopmentDale Gilbert Director, Built Environment Research UnitBob Giles Director, Contract ServicesPeter Grant Assistant Director-General (Government ICT)Maree Hawthorne A/Manager, Corporate Marketing CommunicationBob Hunt General Manager, GoprintEvelyn Jelliffe Director, Queensland PurchasingMike Kelly Executive Director, Racing DivisionTerry Kelly Regional Director, North QueenslandMark Nix Manager, Internal Audit OperationsStephen Long Director, Human Resources Karen Lyon Reid A/ Executive Director, Queensland Government Accommodation Offi ce Paul Monaghan General Manager, QFleetDeborah McLeod A/Director, Infrastructure and Major Projects Malcolm McMillan Director, Corporate Planning and External RelationsAlex Nicholson A/General Manager, SDSJanet Prowse Director and State ArchivistBryan Quant Chief Information Offi cerDon Rivers A/General Manager, Project ServicesTony Skippington Managing Director, CITECMax Smith Deputy Director-General (Works)Ross Smith A/Director, Building Policy UnitRobyn Turbit Director, Governance and ReviewTony Waters Deputy Director-General (Services)Tony Woodward Director, Finance Fiona Wright Director, Shared ServicesSue Wright Director, Executive Services and CLLO
Executive Committee Members
| 65 |Department of Public Works
Annual Report 2005 - 06
Audit Committee Chair: Director-General
Assists the Director-General to discharge fi nancial management responsibilities, imposed under the Financial Administration and Audit Act 1977 and the Financial Management Standard 1997, by giving advice on audit-related matters.
The Audit Committee has observed the terms of its charter and shown due regard to Queensland Treasury’s Audit Committee Guidelines.
Achievements
Endorsed the risk-based 2005–06 Internal Audit Plan.Endorsed the Audit Committee Charter.Endorsed the Internal Audit Charter.Monitored Internal Audit Performance against the approved 2005–06 Plan targets.Checked the resolution of prior-period Queensland Audit Offi ce audit issues.Reviewed audit reports (moderate and high-risk fi ndings) with action taken to address these fi ndings.
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Governance CommitteesGovernance committees report directly to the Corporate Governance Board.
Oversees the department’s role in the review, development and application of building procurement strategies and practices. Ensures that government objectives are being met through the adoption of delivery methods that are consistent with the objectives of the Capital Works Management Framework and the State Purchasing Policy.
Achievements
Reviewed procurement strategies of signifi cant capital works projects for compliance with capital works policy requirements and best value for money outcomes. Projects reviewed included the Robina Stadium and Townsville Men’s and Women’s Correctional Centres.Reviewed amendments to construction contracts in line with government policy and legislative initiatives in relation to occupational health and safety and the Civil Liability Act 2003.Undertook a review of contractor sustainability on government projects in response to an overheated construction industry, and implemented strategies.
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| 66 | Section 2
Business Reporting
Finance CommitteeChair: Director, Finance
Provides advice and reports to the Corporate Governance Board on the fi nancial strategies and practices required to achieve sound fi nancial corporate governance within legislative requirements.
Achievements
Monitored issues arising from Internal Audit and Queensland Audit Offi ce audit reports.Monitored the department’s progress on signifi cant fi nance-related issues such as preparing annual fi nancial statements, and the annual and mid-year budget processes.Monitored the implementation of the department’s transition to the newly-introduced International Financial Reporting Standards.Reviewed the fi nancial performance of the department’s business areas and provided advice to the Corporate Governance Board and to the Director-General.
Information Steering CommitteeChair: Deputy Director-General (Services)
Ensures that information and communications technology (ICT) services and capability employed by the department support the effi cient achievement of whole-of-Government objectives, departmental objectives and business unit objectives.
Achievements
Oversaw ongoing development of a centralised ICT organisation for the department.Oversaw ongoing development of departmental ICT project management and reporting standards.Oversaw implementation of the department’s ICT Strategic Plan for 2005–06 with particular emphasis on strategies for ensuring alignment of departmental initiatives with whole-of-Government objectives and directions.Provided strategic governance over signifi cant ICT-related projects and a major program to establish a standard ICT architecture within the department.
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Risk Management CommitteeChair: (currently operating as component of
Corporate Governance Board)
Develops and manages the department’s risk management policy and plans, and distributes information on risk management priorities.
Achievements
Further refi ned in-house developed software to enhance risk management.Monitored the department’s risk assessment and risk mitigation approach.Undertook a workshop to review and enhance the existing enterprise-wide, risk management framework.Used risk management software to support the enterprise-wide, risk management framework.
Workplace Health and Safety Peak CommitteeChair: Deputy Director-General, Works
Checks and reports on issues relating to workplace health and safety, and ensures a coordinated approach to managing workplace health and safety activities and projects.
Achievements
Progressed signifi cantly the implementation of the recommendations of the Safer Workplaces audit of the Department of Public Works’ Safety Management System. The imminent introduction of the Department of Industrial Relations-sponsored ‘SHE’ software solution, to which departmental staff have had major input, will enable a signifi cant further step in this process.Developed and commenced implementation of a Health Risk Mitigation Plan following an econometric assessment of the results of the health assessments conducted as part of the Pathways to Better Health and Safety Program.
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| 67 |Department of Public Works
Annual Report 2005 - 06
| 68 | Section 2
Business Reporting
The Internal Audit unit operates as an independent function within the Department of Public Works, reporting directly to the Director-General.
The Audit Committee acts as an advisory body to the Director-General and has no line authority. Internal Audit unit checks and advises on:
adequacy and accuracy of accounting and computing systemslegislative and statutory compliances operational cost–effectiveness and effi ciencyreliability of fi nancial and related management informationuse of public funds and assets under the department’s control.
Internal Audit also:conducts investigations as requested by the Director-General, Crime and Misconduct Commission (CMC) Liaison Offi cer and othersexamines controls identifi ed as a result of the investigations and provides
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Internal Audit Reportrecommendations to strengthen the control environmentliaises with, and provides assistance to, the CMC in its investigationsperforms agency or department-wide operational reviews to assess the extent of weaknesses in existing processesprovides an advisory function with respect to business improvement processes and systems of internal controlsreviews actions taken by business units in relation to control issues identifi ed through previous investigations undertaken by Internal Audit, External Audit or the CMC.
In 2005–06, Internal Audit fi ndings confi rmed that a satisfactory internal control environment appears to exist within the department.
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| 69 |Department of Public Works
Annual Report 2005 - 06
Summary of Audit Activity Summary of Audit Activity
Audit Type Number of audits
budgeted for July
2005 – June 2006
Number of audits
completed to
30 June 2006
Number of audits
continuing into
2006–07
Audits no longer
required/
rescheduled to
2006–07
Financial/Compliance -Planned
15 9 2 4
Information Systems -Planned
4 3 0 1
Special - Planned (includes those carried forward from previous year)
12 9 3 0
Sub Total -
Planned31 21 5 5
Financial/Compliance - unplanned
0 0 1 0
Information Systems - Unplanned
0 1 0 0
Special - Unplanned
0 5 0 0
CMC – Unplanned (includes carry forward)
0 8 4 0
Sub Total -
Unplanned0 14 5 0
TOTAL 31 35 10 5
| 70 | Section 2
Business Reporting
Board of Architects of QueenslandThe board is responsible under the Architects Act 2002 for the registration of individuals as architects in Queensland. The key functions of the board are to:
maintain a register of architects and list certain architectural corporations which apply to the board protect the public by ensuring architectural services of an architect are provided in a professional and competent way maintain public confi dence in the standard of services provided by architectsuphold the standard of practice of architectsinvestigate complaints against architects and institute proceedings before the Commercial and Consumer Tribunalinvestigate complaints against persons for compliance with the Act and instigate legal proceedings in the Magistrates Court.
Board of Professional Engineers of QueenslandThe board is responsible under the Professional Engineers Act 2002 for the registration of professional engineers in Queensland. The key functions of the board are to:
maintain a register of registered professional engineers assess applications made to it under the Act, register persons who are eligible for registration and issue certifi cates of registrationconduct, or authorise, investigations about the professional conduct of registered professional engineers and contraventions of the Actassist with achieving the main objectives of the Act which are to:
protect the public by ensuring that professional engineering services are provided by a registered professional engineer in a professional and
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competent way;maintain public confi dence in the standard of services provided by registered professional engineers; anduphold the standards of practice of registered professional engineers.
Public Records Review CommitteeThe committee was established under the Public Records Act 2002. The key functions of the Committee are to:
advise the Minister and the State Archivist about issues affecting the administration and enforcement of the Actresolve disputes between the State Archivist and a public authority regarding restricted access notices applicable to certain public recordsreview disposal decisions made by the State Archivist when a public authority applies for such a review.
Queensland Thoroughbred Racing Board (operating as Queensland Racing) Queensland Racing, as the control body for thoroughbred racing, was established under the Racing Act 2002 to manage the thoroughbred code of racing. The Queensland Thoroughbred Racing Board will be dissolved on 1 July 2006 and will be replaced by Queensland Racing Limited pursuant to the Racing Act 2002.
Queensland Harness Racing BoardQueensland Harness Racing Board, as the control body for harness racing, was established under the Racing Act 2002 to manage the harness code of racing.
Greyhound Racing AuthorityGreyhound Racing Authority, as the control body for greyhound racing, was established under the Racing Act 2002 to manage the greyhound code of racing.
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Statutory Bodies, Authorities and Instrumentalities
| 71 |Department of Public Works
Annual Report 2005 - 06
Racing Appeals TribunalRacing Appeals Tribunal was established under the Racing Act 2002 to hear and decide appeals against decisions listed in Section 167 of the Racing Act 2002.
Racing Animal Welfare and Integrity BoardRacing Animal Welfare and Integrity Board was established under the Racing Act 2002 to monitor, advise and make recommendations to the Chief Executive about matters related to the welfare of licensed animals, drug control, accredited facilities and to develop and publish sampling procedures.
Trustees of Parklands Gold Coast Trustees of Parklands Gold Coast operate the Parklands’ facilities as a Statutory Body appointed under the provisions of the Racing Venues Development Act 1982.
Former Ipswich Courthouse, National Trust-listed and one of
Queensland’s oldest buildings, after a $1.5 million facelift by QBuild
| 72 | Section 2
Business Reporting
| 73 |Department of Public Works
Annual Report 2005 - 06
Public Records Review Committee
Committee Role Achievements Members Costs 2005-06
Public Records
Review Committee
To advise the Minister for Public Works, Housing and Racing and the State Archivist on the administration and enforcement of the Public Records Act 2002.
Engaged in regional consultations during 2005–06.No cases received during the period for dispute resolution.No cases received during the period for decision review.Considered key issues including information management and recordkeeping in Indigenous Councils, email records management in public authorities and the development of an e-Government Policy Framework for Electronic Records Management.
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Mr Brian Herd (Chair)
Mr Chris Gorry
Dr Jennifer Harrison
Mr George O’Farrell
Ms Kay Ryan Ms Leonie Short
Professor Malcolm Thomis
Mr Ken Toogood
Mr Peter Wood
$12,286
Cost of Boards, Committees
Board of Architects of Queensland The achievements of this Board can be found in its 2005–06 Annual Report.
Board of Professional Engineers of Queensland The achievements of this Board can be found in its 2005–06 Annual Report.
Queensland Thoroughbred Racing Board
(operating as Queensland Racing)
The achievements of this Board can be found in its 2005–06 Annual Report.
Queensland Harness Racing Board The achievements of this Board can be found in its 2005–06 Annual Report.
Greyhound Racing Authority The achievements of this Board can be found in its 2005–06 Annual Report.
Trustees of Parklands Gold Coast The achievements of this Statutory Body can be found in its 2005–06 Annual Report.
| 74 | Section 2
Business Reporting
Racing Appeals Tribunal
Tribunal Role Achievements Members Costs 2005–06
Racing Appeals
Tribunal
To hear appeals lodged against decisions of thoroughbred, harness and greyhound control bodies to refuse or revoke licences or against penalties imposed by stewards.
The number of appeals lodged in 2005–06 decreased to 47 compared with 57 in 2004–05. Of the appeals received: 19 related to the harness code; 26 to the thoroughbred code; 2 to the greyhound code.47 appeals were fi nalised. 19 were dismissed; 17 had the appeal varied; 11 were upheld; and 9 were withdrawn.5 appeals are awaiting decisions.On average, applications were heard within 25 days from lodgement of the appeal.
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Mr Leo Williams (Chair)
Mr Brockwell Miller (Deputy Chairperson)
Mr Dennis Standfi eld
$74,500
There are four Racing statutory bodies for which the Minister is responsible: Greyhound Racing Authority; Queensland Harness Racing Board; Queensland Racing; and Trustees of Parklands Gold Coast. Achievements and costs associated with the remuneration of board members of these bodies are reported by each statutory body in their respective 2005–06 annual report.
| 75 |Department of Public Works
Annual Report 2005 - 06
Racing Animal Welfare and Integrity Board
Board Role Achievements Members Costs 2005–06
Racing Animal
Welfare and
Integrity Board
(RAW&IB)
The RAW&IB was established under the Racing Act 2002 to monitor, advise and make recommendations to the Chief Executive about matters related to the welfare of licensed animals, drug control, accredited facilities and to develop and publish sampling procedures.
Convened four meetings.Formed the RAW&IB Procedures Review Working Group and initiated a review of the ‘Procedures about the way things for analysis are to be taken and dealt with’.Completed a study into the availability of veterinary post-mortem and diagnostic services for the Queensland Racing industry.Continued monitoring of the performance and functions of the integrity offi cer under the provisions of the Racing Act 2002.
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Dr Fred Manahan (Chair)
Mr Graham Kerven
Dr Vivian Edwards
Professor Michael D’Occhio
$5,163
| 76 | Section 2
Business Reporting
Director-General’s Offi ce 4Executive Services 11Corporate Planning and External Relations 17Governance and Review 20Racing Division 27CITEC 517 Works Division Offi ce of the Deputy Director-General, Works 4Project Services 653QBuild 2,505Infrastructure and Major Projects 2Building Policy Unit 17Built Environment Research Unit 21Queensland Government Accommodation Offi ce 102Business Strategy and Development 15
Services Division Offi ce of the Deputy Director-General, Services 3Offi ce of Government ICT 76Finance 10Goprint 105Information Services 99Legal and Contractual 19Human Resources 23QFleet 115Queensland Purchasing 54Queensland State Archives 48SDS 151Shared Services 2 Total 4,620
Staff Numbers
| 77 |Department of Public Works
Annual Report 2005 - 06
The Department of Public Works is meeting its obligations under Section 23 of the Public Sector Ethics Act 1994. In particular, the department has developed and implemented a Code of Conduct which is based on the principle that behaving ethically is central to achieving the department’s objectives and to supporting its values.
Training and resource material is provided to employees outlining specifi c requirements under the Act and the Code. This material also outlines the rights and obligations of public offi cials in relation to contraventions of the Code.
During 2005–06, Code of Conduct refresher training continued for staff, with new staff receiving comprehensive training that established the standards of conduct expected and the fi ve ethics principles:
Respect for the Law and System of GovernmentRespect for PersonsIntegrityDiligenceEconomy and Effi ciency
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Code of Conduct (Public Sector Ethics Act 1994)
The Code is available in hardcopy, on the department’s intranet and as a concise pocket guide. Members of the public can also request a copy at the department’s head offi ce at 80 George Street, Brisbane and at each regional offi ce.
During 2005–06, following extensive consultation, the Code of Conduct was revised and simplifi ed to enhance employees’ understanding. It is envisaged that the revised Code will be approved and refresher training conducted for all employees in 2006–07.
Administrative procedures and management practices within the department are consistent with the ethics principles and the obligations of public offi cials as set out within the Code.
The department also has representatives on the Queensland Public Sector Ethics Network to assist with improving outcomes for the department in ethics matters.
| 78 | Section 2
Business Reporting
The primary objective of the Whistleblowers Protection Act 1994 is to promote the public interest by protecting persons who make disclosures about unlawful, negligent or improper public sector conduct or danger to public health or safety or the environment. In 2005–06, the Department of Public Works did not receive any public interest disclosures.
During 2005–06, the Department of Public Works approved 29 voluntary early retirements for $903,544 in severance payments. All early retirements were offered to staff identifi ed as surplus to operational requirements.
Note: Figures are GST inclusive and include payments made over the full 2005–06 fi nancial year.
Consultancies
| 79 |Department of Public Works
Annual Report 2005 - 06
Josephine MacLeod, graduate architect with the Architectural
Practice Academy, presents a design review.
| 80 | Section 2
Business Reporting
Offi cer and Position Destination Reason for Travel
Agency
Cost
Contribution
from other
agencies or
sources
Christine IannaManager Preservation ServicesQueensland State Archives
New Zealand To attend the 4th Australian Institute for the Conservation of Cultural Material (AICCM) Paper, Books and Photographic Symposium, and associated workshops.
$1,655
Janet ProwseDirector and State ArchivistQueensland State Archives
New Zealand To attend the Council of Australasian Archives and Records Authorities meeting and the Australasian Society of Archivists and Communities Conference.
$2,460
Lester Grimmett Chief HandicapperQueensland Racing
New Zealand To attend the ANZ Classifi cation Committee meeting to discuss national handicapping issues.
$1,479
Mal GriersonDirector-GeneralDepartment of Public Works
United Kingdom and United States of America
To inspect refurbishment works at Queensland House in London and to undertake discussions with various parties regarding its completion. To meet with various parties to discuss management and procurement aspects of signifi cant capital works projects, for example stadium projects. To meet with information technology and communications organisations within the United Kingdom and the United States in relation to their products, services and capabilities.
$20,990
Mal GriersonDirector-GeneralDepartment of Public Works
United Arab Emirates
To participate in a Queensland Government-led Trade Delegation with the Minister in Dubai, to investigate opportunities for Queensland companies, and to visit the Big 5 Exhibition. To meet with the Chamber of Commerce and Industry in Abu Dhabi.
$13,907
Marshall MorisonExecutive ManagerAccommodation Strategic Planning and Executive ProjectsQueensland Government Accommodation Offi ce
Finland To attend the 2006 Workplace Network International Conference in Helsinki.
$5,075
Overseas Travel
| 81 |Department of Public Works
Annual Report 2005 - 06
Offi cer and Position Destination Reason for Travel
Agency
Cost
Contribution
from other
agencies or
sources
Peter WoodPrincipal Project ManagerProject Services
United States of America and Canada
To attend the American Corrections Conference and to make contact with Canadian Corrections. To review the latest technology.
$14,815
Steven BournesPrincipal Electronics EngineerProject Services
United States of America and Canada
To attend the American Corrections Conference and to make contact with Canadian Corrections. To review the latest technology.
$14,815
Brock MillerDeputy ChairRacing Appeals Tribunal
New Zealand To attend the Conference of Australasian Racing Appeals Tribunal Authorities.
$2,552
Dennis Standfi eldMemberRacing Appeals Tribunal
New Zealand To attend the Conference of Australasian Racing Appeals Tribunal Authorities.
$2,552
Susan CrawfordDirector, Business & Financial ServicesProject Services
United Kingdom
To represent Australia at the 50th anniversary of the Commonwealth Studies Conference hosted by Prince Philip at Buckingham Palace, London. In addition, and in line with Project Services workforce planning project, to take the opportunity to investigate workforce planning issues within the UK government and investigate possible recruitment strategies with UK recruitment fi rms and immigration consultants.
$5,000
| 82 | Section 2
Business Reporting
Learning and development initiatives were undertaken throughout the department, targeting all levels from professional, technical and management/administrative, and all diversity groups.
The core areas of training across all business areas included those in procurement, communication, client services, information and communications technology, health and safety, leadership, and supervisory management development. Specifi c training needs were provided in relation to trade skills for the fi eld staff of QBuild, best practice in IT Service Management (ITIL) Training for CITEC, and graduate development in Project Services.
The department continued its involvement in the Senior Executive Mobility Program, Australia New Zealand School of Government (ANZSOG) Executive Masters Program and Public Sector Management Program. In addition, a number of staff participated in the formal development
Training and Developmentoptions offered within the Public Services Training Package.
The department continued to provide subsidised study opportunities and support through the Study and Research Assistance Scheme and the Public Services Training Package.
The department recommitted to its focus on training and development. A number of initiatives across a range of specialist technical skills, and professional and personal development will be delivered in 2006–07 such as the Building Leaders Program identifi ed through the department’s Key Strategic Succession Management and Development Capability Framework.
2006 QBuild apprentice intake
QBuild is one of the largest employers in Queensland of construction industry apprentices.
| 83 |Department of Public Works
Annual Report 2005 - 06
TraineesSince 1 July 1998, the Department of Public Works has achieved its trainee quota under the Breaking the Unemployment Cycle (BUC) initiative, providing 345 traineeship opportunities. In 2005–06, 55 traineeships were provided.
Within this quota, the department achieved its traineeship targets as follows:
Employment Initiatives
ApprenticesCurrently, the department has 320 apprentices employed by QBuild. In addition, QFleet provided eight group scheme apprenticeships.
In early 2006, QBuild took on 101 new apprentices and fi eld trainees including:
71 new full-time apprentices8 new full-time Indigenous apprentices6 continuing school-based apprentices who converted to full-time apprenticeships5 new school-based apprentices5 new Indigenous school-based apprentices3 construction worker fi eld trainees3 horticultural fi eld trainees.
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Target Group
Public Sector Target
2005–06
DPW
achievement as
at 30 June 2006
Women 50% 69.09%
ATSI people 10% 7.27%
People with disabilities 5% 7.27%
People from non-English speaking backgrounds
5% 5.45%
In early 2006, QBuild took on
101 new apprentices and
fi eld trainees.
Graduates and cadetsUnder the Graduate Employment Program, the department employed 35 new graduates from areas as diverse as accountancy, procurement, information and communications technology, project management, engineering, architecture and quantity surveying. It also employed four cadets. This intake exceeded last fi nancial year’s. Currently, the department employs 62 graduates under this program.
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Business Reporting
The Department of Public Works has continued to support diversity through the implementation of the following plans:
Equity and Diversity Management Plan 2006–11Strategic Framework for the Employment of People with a Disability 2002–07Strategic Framework for the Employment of People from Diverse Cultural and Linguistic Backgrounds 2003–07.
As part of the Aboriginal and Torres Strait Islander Employment and Development Strategy, the department sponsored:
three students on the Education-to-Employment Schemefour cadets on the National Indigenous Cadetship Projectone employee on the Indigenous Leadership Program.
The department now has over 100 Indigenous staff working throughout Queensland as apprentices, tradespeople, supervisors and managers.
Cultural awareness training was delivered to regional offi ces, as recommended in the Reconciliation Management Plan 2001–06.
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Supporting DiversityAlso NAIDOC activities took place state-wide throughout the department.
People with a disability were supported through the activities of the Network Supporting People with a Disability. Lunchtime seminars were organised in conjunction with the Spinal Injuries Association, Diabetes Association Queensland, Mental Health First Aid, Paraplegic Benefi t Fund and Sporting Wheelies Association.
The department continued to provide sponsorship for the Building an Accessible Environment Award held during Disability Action Week. Mr Jan Jensen, Design Manager of Stockland Development, was honoured in recognition of his outstanding leadership on the issues of universal housing design.
The Multicultural Action Plan was also put into action with Harmony Day celebrations, participation in the Migrant Work Experience Program, and the development of a Multilingual Staff Network.
Equity Targets as at 30 June 2006
Target Group Target Actual as at 30 June
Women in Senior Management(SES/SO positions)
25% by end 2011 20.9%
Women in Management(AO6 level positions and above)
30% by end 2011 25.6%
Aboriginal and Torres Strait Islanders 3% by end 2011 2.4%
People from non–English speaking backgrounds
13.5% by end 2011 10.9%
People with a disability 10% by end 2011 7.2%
| 85 |Department of Public Works
Annual Report 2005 - 06
A/Senior Accommodation Planner,
Stephanie Jude
| 86 | Section 2
Business Reporting
A Strategic Workplace Health and Safety unit was formed to implement the recommendations of the Department of Industrial Relations-sponsored independent audit of the Workplace Health and Safety system. These recommendations will be implemented by the department over the next two years, as the major improvement strategy identifi ed under the Government’s Safer Workplaces framework. In addition to meeting the requirements of the Safer Workplaces framework, QBuild started the process of becoming fully compliant with Australian Standard AS 4801. This process should be completed in August 2007, after which QBuild will be audited by an accredited third-party, management systems auditor.
Pathways to Better Health and SafetyThe Pathways to Better Health and Safety Program began in 2000 and is an ongoing initiative. Since its implementation, over 2,860 voluntary health assessments
Workplace Health and Safetyhave been conducted across all levels of departmental staff.
During 2005–06, the main focus of the Pathways to Better Health and Safety Program was:
fi nalising the Health Risk Mitigation Plan including, in conjunction with Access Economics, the identifi cation of specifi c health programs that provide a safer work environment. The Plan will be implemented in 2006–07 carrying out further comprehensive health assessments on those in high health risk areas or mission critical roles. Seventy-eight assessments were undertakenproviding fl u vaccinations to 1,265 employeestrialling other measures to identify health risks such as stress identifi cation and management.
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All department staff are required to wear the appropriate
personal protective equipment.
| 87 |Department of Public Works
Annual Report 2005 - 06
Performance Management
The department continued to
refi ne and enhance its fi nancial
reporting system to improve
understanding and monitoring
of fi nancial performance
at all levels.
Performance management is designed to ensure effi cient and effective operations. Appropriate systems and processes are needed to enable performance to be measured and reported against.
Within the department, corporate and business unit plans were developed to set the organisational direction and to support the establishment of individual performance plans. The planning regime followed a cascading business strategy, ensuring strong linkages across all departmental planning documents.
The Director-General actively promoted the use of performance and development plans for all levels of staff, including senior management.
At the operational level, managers and staff established individual performance goals that were linked to operational and business plans. An annual review monitored progress and identifi ed and addressed individual training and development needs.
The Aurion HRM Information System was used for comprehensive monthly and quarterly reporting against human resource management performance indicators.
The department continued to refi ne and enhance its fi nancial reporting system to improve understanding and monitoring of fi nancial performance at all levels.
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Business Reporting
The Women in Works Committee develops strategies and undertakes activities that work towards achieving the following targets:
increase in women in Senior Offi cer and Senior Executive Service positions (to 25% by 30 June 2009 – currently 20.9%)increase in women in middle-to-upper management positions (to 30% by 30 June 2010 – currently 25.6%).
During 2005–06, the Women in Works Committee:
launched pilots for technical and administrative mobility programscelebrated International Women’s Day with a breakfast at Roma Street Parkland. Over 60 staff attended. Regional morning teas were also heldproduced a 2006–07 Women in Works (WiW) calendar highlighting the dates of professional development seminarsdeveloped a library tool kit on women’s issuesheld a networking forum for women in the Working Opportunities for Women (WoW) groupconducted an assertiveness training program
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Women’s Initiativesheld professional development seminars focussed on writing job applications, job interview skills, motivation techniques and managing stressenhanced the Women in Works Intranet siteorganised personal and work development programs for non-management women (Springboard) in Rockhampton and Brisbane.
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The Women in Works
Committee held professional
development seminars
focussed on writing job
applications, job interview
skills, motivation techniques
and managing stress.
Karen O’Brien, Manager Indigenous Affairs
| 89 |Department of Public Works
Annual Report 2005 - 06
In December 2005, the Department of Public Works’ fi rst Multicultural Action Plan was launched to comply with the State Government policy: Multicultural Queensland – making a world of difference. While the department’s action plan addressed all four strategies from the whole-of-Government policy, its focus was on one particular strategy: Strengthening multiculturalism in the Queensland public sector.
Signifi cant outcomes achieved in the fi rst year of the plan were:
establishing a multi-lingual staff group to assist with language interpretation and to serve as a reference group for the department’s multicultural agenda as it unfolds expanding Harmony Day celebrations on 21 March with seminars and gatherings held state-wide throughout the department. At these celebrations, staff were encouraged to acknowledge and appreciate the culturally and linguistically-diverse backgrounds of their colleagues
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Multicultural Activitiesparticipating in the Premier’s Multicultural Awards and the Migrant Work Experience Program. Both strengthened awareness of multiculturalism among staffholding a major public seminar at Queensland State Archives on Harmony Day to celebrate the 400th anniversary of the Dutch landing in Australiapromoting Queensland State Archives’ genealogical support services at the Brisbane Multicultural Festival, Roma Street Parkland in October.
•
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… staff were encouraged
to acknowledge and
appreciate the culturally
and linguistically-diverse
backgrounds of
their colleagues.
Manager, WH&S Rehabilitation Services, Sue Torkington
and A/Property Administration Offi cer, Leo Bvekerwa
| 90 | Section 2
Business Reporting
| 91 |Department of Public Works
Annual Report 2005 - 06
Throughout 2005–06, the department was proactive in engaging communities and key stakeholders in government decisions and processes.
Boggo Road Urban Village
The redevelopment of Boggo Road Gaol, Brisbane into an inner city urban village involved the community and the department in a number of consultative processes, such as:
providing a newsletter communication to the local community advising of project progress and timelines;holding ongoing meetings with community and school groups, such as Dutton Park State School;establishing of a project website and telephone hotline; andcoordinating with other agencies on neighbouring projects such as Queensland Transport’s Busway and the Department of State Development, Trade and Innovation’s Ecosciences Precinct.
Rockhampton Riverbank Redevelopment
The Rockhampton Riverbank Redevelopment is a major feature in the redevelopment of central Rockhampton. The department engaged the community in the $9.5 million redevelopment by:
establishing a website and a free telephone hotline;conducting stakeholder interviews and holding community group meetings;providing public displays; andinviting public submissions.
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Queensland State Archives Queensland State Archives planned several initiatives to communicate with its key stakeholders, such as hosting seminars across the State and organising outreach visits to regional areas. During 2005–06, Queensland State Archives:
hosted awareness seminars in Barcaldine, Longreach, Malanda, Rockhampton, Toowoomba and Winton;organised fi eld trips to regional and remote Queensland to provide information on collections and services;assisted North Queensland authorities in their efforts to recover records following Cyclone Larry;organised a Small Archives Seminar in Malanda to support small heritage-collecting institutions across the Tablelands, Cairns and Tully; andhosted three information seminars for family and local history researchers in Brisbane.
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Community Engagement
Throughout 2005–06, the
department was proactive in
engaging communities and key
stakeholders in government
decisions and processes.
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Business Reporting
The Department of Public Works is active and committed to partnering with industry to develop whole-of-Government initiatives.
The Racing Division comprises two units – the Offi ce of Racing Regulation and the Racing Science Centre. The division liaises closely with the control bodies of the three codes of racing – Queensland Racing Limited, Queensland Harness Racing Board and Greyhound Racing Authority.
In late 2005, the Sampling and Analytical Strategic Committee was formed to provide a formal mechanism for the Racing Science Centre and control bodies to exchange information on drug control strategies and emerging issues, and to monitor, implement and review the ongoing delivery of analytical services that support the control bodies’ animal welfare and drug control policies. The committee, which meets every second month, consists of senior representatives of the Racing Science Centre and the three control bodies.
•
The Racing Science Centre also represents the racing industry’s interest on national scientifi c and animal welfare bodies and regularly undertakes collaborative research and development activities with academic institutions and other state racing laboratories in regard to the development of ongoing drug detection capabilities.
In line with Focus Area 5 of the Smart Directions Statement, the Offi ce of Government ICT partners with industry to develop whole-of-Government information and communications technology initiatives.
The department, through the Offi ce of Government ICT, supports the Industry/ Government ICT Group which met six times in 2005–06. These meetings provided an opportunity for the information and communications technology (ICT) industry to advise the Government on the challenges facing the industry, its growth needs and associated issues, particularly those related to government ICT procurement policy and ICT industry development strategies and initiatives.
The Offi ce of Government ICT engaged with industry to participate in a number of other activities including:
streamlining ICT procurement and contracting processes a review of how the Government procures PCs and laptops improving the value to Government of ICT contractors and consultants.
In addition, the ICT industry was consulted to develop the Government Information Technology Contracting (GITC) Version 5 User Guide. This guide helps government buyers of ICT goods and services make better decisions and understand the GITC requirements.
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Industry Liaison
Chemist, Kate Sievers, supervising the analysis of
racing samples at the Racing Science Centre.
| 93 |Department of Public Works
Annual Report 2005 - 06
The State Purchasing Advisory Council (SPAC) was formed in 2000 following the adoption of the State Purchasing Policy. The council comprises a number of industry representatives and reports to the Minister for Public Works, Housing and Racing on strategic matters relating to government procurement. In 2005–06, three meetings were held in Townsville, Brisbane and Cairns.
The department, through Works Division, works closely with industry on research and development. Collaboration is ongoing with companies involved in facilities management and building and construction, with a number of projects undertaken through the Cooperative Research Centre for Construction Innovation (CRCCI). The division’s contribution to the CRCCI in 2005–06 was valued at $222,000. The department, through its Built Environment Research Unit, also partnered with the University of Queensland, other government agencies and industry under Australian Research Council arrangements to develop improved termite control in wooden structures.
Project Services joined with industry to address the ongoing, declining standard of documentation in the engineering and construction industries. The decline is a national and worldwide problem. Project Services staff are playing a lead role in addressing the decline, and are currently working to provide a framework and guidance and procedural documents on Quality Design Briefs for broad industry circulation. Project Services is also working with industry on the fragmentation of, and pressures applied to, industry by the introduction of technologies.
Project Services is also taking a lead role in collaborating with industry on Building Information Modelling (BIM). It is working closely with the Australasia Chapter of the International Alliance for Interoperability (IAI) in conjunction with the Royal Australian Institute of Architects (RAIA), Engineers Australia,
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Australia Institute of Quantity Surveyors (AIQS), Master Builders Queensland and Cooperative Research Centre for Construction Innovation (CRCCI) to present a new vision for the construction industry. Building industry groups and forums are being fostered to establish how government and industry can work together to achieve positive outcomes for the benefi t of the Australian construction industry.
The Building Policy Unit maintains ongoing liaison with the building industry in relation to its policy development and review activities associated with the whole-of-Government Capital Works Management Framework. This liaison is generally undertaken at the Association level. The Unit also liaises with building industry consultants and contractors registered, or seeking to register, on the whole-of-Government Prequalifi cation (PQC) System for contractors and consultants.
Strong links with industry are crucial to ensuring Goprint meets the Queensland Government’s print–communication needs.
To fulfi l its core function of printing for parliamentary, election and confi dential products as well as its additional commercial printing services, Goprint works with a group of Brisbane-based trade printing and fi nishing businesses which are preferred suppliers with established quality track–records.
•
•
The department, through Works
Division, works closely with
industry on research
and development.
| 94 | Section 2
Business Reporting
Environmental Protection (Waste Management) Policy 2000The object of the Environmental Protection (Waste Management) Policy 2000 is to achieve improvement in resource conservation and waste management throughout all government departments. The primary purpose of the policy is to protect and enhance environmental values.
The Department of Public Works is focussed on minimising the impact of waste generated from all sources, including the impact of waste on the environment, and the promoting of the maximum use of wastes as a resource.
During 2005–06, the department achieved the following.
WaterOn 7 November 2005, the Government Buildings Water Conservation Program was launched within the Department of Public Works.
A strategy and action plan was developed to demonstrate government leadership in successful water conservation technologies and practices, and to provide advice to government agencies on best water management practice in the built environment.
In April 2006, auditing and retrofi tting of selected commercial offi ce buildings began in South East Queensland as part of the program. New installations include water-saving technologies such as water-effi cient showers, toilets and taps. A 20% target for water savings has been set in accordance with current water level restrictions.
Initiatives introduced under the program will focus primarily on commercial buildings and other facilities operated by the Department of Public Works, with other agencies encouraged to take up the initiatives.
A number of longer-term initiatives including investigating alternative technologies and the development of Water Effi ciency Management Plans for high water use government buildings will also be progressed.
EnergyThe Government Energy Management Strategy (GEMS) program was established in 2003 and is administered by the Department of Public Works. The aim of the GEMS program is to reduce energy (electricity, gas and water) costs and greenhouse gas emissions across the whole-of-Government. GEMS exceeded its interim savings target of $6 million this fi nancial year through tariff charges, purchasing electricity in the competitive market and retrofi tting buildings through the use of Energy Performance Contracts.
The GEMS team also oversees the Queensland Government’s purchase of renewable energy sourced from wind, hydro, bagasse, solar, etc. In 2005–06, green energy purchases by GEMS reduced the Queensland Government’s carbon dioxide emissions by more than 50,000 tonnes (equivalent to removing 11,500 cars from the road).
Resource Conservation and
Waste Management
| 95 |Department of Public Works
Annual Report 2005 - 06
Other initiativesQFleet workshops met all waste collection, disposal and recycling standards including those for oil, water and batteries. QFleet recycles all paint thinners in-house and disposes of the residue through a registered disposal company. In addition, QFleet workshops also dispose of used tyre cases at a cost of $2.50 per case for passenger vehicle tyres.
QBuild and Project Services have maintained certifi cation of an Environmental Management System by independent audit, as conforming to AS/NZS ISO 14001:2004. QBuild actively works towards a range of waste management initiatives including the recycling of manufacturing and construction waste. QBuild Industries in Hemmant, Brisbane continues to actively recycle commercial quantities of aluminium and glass as part of their window and door manufacturing operations.
Research is being undertaken to develop permanent options
for an alternative water supply for Roma Street Parkland.
A 20% target for water savings
has been set in accordance with
current water level restrictions.
| 96 | Section 2
Business Reporting
The department adopts an integrated approach to risk management.
The strategic planning process drives departmental risk management through the identifi cation of key strategic and operational goals and the identifi cation of risks. The departmental risk management framework comprises:
a governance framework which proactively addresses risk through a variety of committee structures, for example the Corporate Governance Board, Risk Management Committee, Finance Committee and Audit Committeemaintenance and ongoing review of risk management plans at a departmental and business unit levela suite of complementary policies including Risk Management, Business Continuity, Fraud and Corruption Control and Intellectual Propertystaff training and development in respect of technical competencies and integrity standardsa reporting regime to monitor departmental risk management.
Specifi c risk management initiatives undertaken during the year include:
an annual Corporate Governance Board Workshop that set departmental risk management priorities for the yearfurther development and assessment of an in-house developed product to monitor departmental risk managementcommencement of a major review of the department’s Code of Conductreview and testing of the department’s Business Continuity Planintroduction of new building and security arrangements, resulting in a new intra-government mail service, and changes to receipt of courier items and tender documents.
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Risk Management
The department introduced
new building and security
arrangements, resulting in a new
intra-government mail service,
and changes to receipt of courier
items and tender documents.
Bruce Campbell, Operations Offi cer, State Government Protective Security Service
- part of a team of 300 offi cers who secure State Government buildings.
| 97 |Department of Public Works
Annual Report 2005 - 06
Applications for access 2004-05 2005-06
Received 24 23
Completed 19 16
Withdrawn 3 5
Personal 4 2
Non-personal 20 21
Documents
Documents considered 5,981 2,293
Access granted in full 2,525 1,740
One or more exemptions invoked (approx.) 20 16
Decisions (by documents)
Full access 2,525 1,740
Partial access 168 470
Access denied 3,288 83
Review applications
Internal 5 4
External 4 0
Freedom of Information
| 98 | Section 2
Business Reporting
In 2005–06 the Department of Public Works continued, through Queensland State Archives, to develop contemporary records management policy and to provide advice on records management to the State Government and Queensland public authorities. It also continued to preserve, and provide access to, Queensland’s permanent public records.
As the Queensland Government’s lead agency for recordkeeping, the department launched the following information management policies and guidelines:
Managing Records or Online Resources and Services policy and guidelinesDigitisation Disposal policy on the authorisation of the early disposal of original paper records after digitisatione-Government Policy Framework for Electronic Records Management: Discussion Paper released in June 2006. The results of this consultation will inform Queensland State Archives’ work program over the next three to fi ve yearsRetention and Disposal Schedule guidelines.
Internally, Queensland State Archives revised its Strategic Recordkeeping Implementation Plan to maintain the currency and relevance of this key document. Substantial progress was made on developing a Business Classifi cation Scheme and a new Retention and Disposal Schedule. In addition, procedures for the administration of Queensland State Archives’ recordkeeping system were developed and mail handling procedures were revised.
Also this year the department, through the Information Services Directorate, developed a business case to ensure compliance with the:
Public Records Act 2002Information Standard 40Information Standard 41.
On 2 March 2006, the department’s Information Steering Committee (ISC) endorsed the business case to enable preparation for a pilot of the Electronic Document and Records Management System (eDRMS) as selected by the Shared Service Initiative Offi ce.
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Recordkeeping
In 2005–06 the Department of
Public Works continued, through
Queensland State Archives, to
develop contemporary records
management policy.
Archivist, Laura Morales (left) and Appraisal Archivist, Ingrid MacDonald (right) review
a transfer of permanent records at Queensland State Archives.
| 99 |Department of Public Works
Annual Report 2005 - 06
The Shared Service Initiative is a whole-of-Government approach to corporate service delivery. The vision is to provide high-quality, cost-effective corporate support services across the Queensland Government. Shared Services is underpinned by standardising business processes, consolidating technology and pooling resources and expertise.
Under the shared service model, government agencies joined together in ‘clusters’ to share corporate services and resources through Shared Service Providers (SSPs). From 1 July 2006, the hosting arrangements for the SSP’s CorporateLink, PartnerOne and Corporate Solutions Queensland were consolidated from three host agencies to the Shared Service Agency (SSA) hosted by Queensland Treasury. Approximately 2,200 staff from these SSPs transitioned into the SSA.
The SSA leads the evolution and refi nement of a whole-of-Government model for shared service delivery and provides a dual role of policy and program management for the Shared Service Initiative as well as service delivery by PartnerOne, Corporate Solutions Queensland and CorporateLink. The SSPs continue to service their existing clusters of agencies through operating level agreements.
SSPs for Queensland Health and Education and the Arts (Corporate and Professional Services and the Corporate Administration Agency) and Parliamentary Services continue to operate under their existing hosts.
Corporate Solutions Queensland provides human resource, fi nance, telecommunications and mail functions to the Department of Public Works. This year, the Department of Employment and Training hosted Corporate Solutions Queensland as a separate entity, and will report on its activities in its annual report.
Shared Service Initiative
The vision is to provide
high–quality, cost–effective
corporate support
services across the
Queensland Government.
| 100 | Section 3
Department of Public Works Financial Reporting
| 101 |Department of Public Works
Annual Report 2005 - 06
Financial
Department of Public Works
Reporting
| 102 | Section 3
Department of Public Works Financial Reporting
Financial Summary
Department of Public Works Consolidated
2005-06
$’000
2004-05
$’000
Revenues from ordinary activities
Output revenue 47,928 64,912
User charges 1,256,464 1,090,551
Grants and other contributions 20,650 24,425
Other 14,883 13,434
Total revenues 1,339,925 1,193,322
Expenses
Employee expenses 311,146 295,275
Supplies and services 856,567 744,945
Grants and subsidies 2,728 6,934
Depreciation and amortisation 80,244 75,603
Impairment losses 1,093
Revaluation decrement 23,638 -
Borrowing costs 34,794 34,637
Other 19,514 18,918
Total expenses 1,329,724 1,176,312
Net gain/(loss) on sale of
property,
plant and equipment
(16,656) (10,310)
Operating result before
income tax
(6,455) 6,700
The increase in User charges is due principally to higher construction activity and an unprecendented level of services provided by Project Services.
The increase in Supplies and services is due principally to cost of goods to deliver additional revenue.
The value of the motor vehicle fl eet was written down to match the expected current resale value of the fl eet.
Department of Public Works - Summary income statement
| 103 |Department of Public Works
Annual Report 2005 - 06
Supplies and services $856.6M (63.4%)
Employee expenses $311.1M (23.04%)
Total Revenues by Category
Total Expenses by Category
User charges $1256.5M (93.49%)
Grants and other contributions $20.7M (1.54%)
Other $14.9M (1.11%)
Gain on sale of property, plant and equipment $3.94M (0.29%)
Output revenue $47.9M (3.57%)
Depreciation and amortisation $80.2M (5.94%)
Impairment losses $1.1M (0.08%)
Other $19.5M (1.45%)
Grants and subsidies $2.7M (0.2%)
Borrowing costs expense $34.8M (2.59%)
Revaluation decrement $23.6M (1.75%)
Loss on sale of property, plant and equipment $20.6M (1.54%)
| 104 | Section 3
Department of Public Works Financial Reporting
Department of Public Works Consolidated
2005-06
$’000
2004-05
$’000
Assets
Cash assets 140,625 100,523
Receivables 178,305 153,601
Inventories 25,275 16,268
Non-current assets classifi ed as
held for sale
18,889 66,212
Intangibles 15,108 19,145
Property, plant and equipment 2,016,266 1,709,846
Tax assets 15,935 12,945
Other 22,504 20,419
Total assets 2,432,907 2,098,959
Liabilities
Payables 129,788 112,550
Other fi nancial liabilities 501,504 530,886
Accrued employee benefi ts 39,842 41,435
Provisions 2,291 1,762
Tax liabilities 13,063 17,075
Other 58,608 56,686
Total liabilities 745,096 760,394
Net assets 1,687,811 1,338,565
Total equity 1,687,811 1,338,565
Property, plant and
equipment is mainly
comprised of land and
buildings together with the
motor vehicle fl eet.
Other fi nancial liabilities
principally relates
to borrowings from
Queensland Treasury
Corporation (mainly for
land, buildings and the
motor vehicle fl eet).
The Department maintained
a strong fi nancial position
with Equity increasing by
$349M (26.1%).
Department of Public Works - Summary balance sheet
| 105 |Department of Public Works
Annual Report 2005 - 06
Total Revenues by Outputs/Major Activities
Total Expenses by Outputs/Major Activities
Building Procurement and Asset Management $289.2M (19.5%)
Procurement Services $7.8M (0.52%)
e-Government and Information and Communication Technology (ICT) Strategies $21.1M (1.42%)
Public Records Management and Advisory Services $7.0M (0.47%)
Racing Industry Services $6.0M (0.4%)
QBuild $670.8M (45.23%)
Project Services $119.9M (8.08%)
QFleet $154.0M (10.38%)
Goprint $17.2M (1.16%)
SDS $53.3M (3.6%)
CITEC $127.6M (8.62%)
General-Not Attributed $9.2M (0.62%)
Building Procurement and Asset Management $285.2M (19.28%)
Procurement Services $7.8M (0.52%)
e-Government and Information and Communication Technology (ICT) Strategies $19.4M (1.31%)
Public Records Management and Advisory Services $7.1M (0.48%)
Racing Industry Services $6.1M (0.41%)
QBuild $695.9M (47.03%)
General-Not Attributed $9.2M (0.62%)
CITEC $127.1M (8.59%)
SDS $54.8M (3.7%)
Goprint $16.3M (1.1%)
QFleet $116.04M (7.84%)
Project Services $134.9M (9.12%)
| 106 | Section 3
Department of Public Works Financial Reporting
table of Contents
Introduction 107 Income statement 108 Balance sheet 109 Statement of cash fl ows 110 Statement of changes in equity 111 Income statement by outputs/major activities – controlled 112 Income statement – QBuild 117 Balance sheet – QBuild 118 Statement of cash fl ows – QBuild 119 Statement of changes in equity - QBuild 120 Income statement – Project Services 121 Balance sheet – Project Services 122 Statement of cash fl ows – Project Services 123 Statement of changes in equity – Project Services 124 Income statement – QFleet 125 Balance sheet – QFleet 126 Statement of cash fl ows – QFleet 127 Statement of changes in equity – QFleet 128 Income statement – Goprint 129 Balance sheet – Goprint 130 Statement of cash fl ows – Goprint 131 Statement of changes in equity – Goprint 132 Income statement – SDS 133 Balance sheet – SDS 134 Statement of cash fl ows – SDS 135 Statement of changes in equity – SDS 136 Income statement – CITEC (Economic Entity) 137 Balance sheet – CITEC (Economic Entity) 138 Statement of cash fl ows – CITEC (Economic Entity) 139 Statement of changes in equity – CITEC (Economic Entity) 140 Notes to and forming part of the fi nancial statements 141 Certifi cate of the Department of Public Works 186 Independent audit report 187
| 107 |Department of Public Works
Annual Report 2005 - 06
The following fi nancial statements have been prepared by the department and audited by the Auditor-General of Queensland:
Income statementBalance sheetStatement of cash fl owsStatement of changes in equityIncome statement by outputs/major activities – controlledNotes to and forming part of the fi nancial statements.
They are produced in accordance with the provisions and prescribed requirements of the Financial Administration and Audit Act 1977, and in compliance with Australian Accounting Standard AAS 29 Financial Reporting by Government Departments. The 2005-06 fi nancial statements have been prepared to provide the following users with information concerning the department’s fi nancial performance for the year and its fi nancial position at year end:
Minister for Public WorksMembers of the Legislative Assembly of Queenslandbuilding industrybusiness community in generalvarious government and semi-government instrumentalitiesother interested parties.
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Introduction
The statements are of a general purpose in nature and provide information of the fi nancial activities of the department.
The Department of Public Works is committed to providing high standards in fi nancial administration and recognises the need to satisfy statutory requirements for adequate disclosure.
| 108 | Section 3
Department of Public Works Financial Reporting
Income statement
Department of Public Parent EntityWorks Consolidated
Net increase in cash held 40,133 8,951 32,986 1,928Cash at beginning of the financial year 100,398 91,447 16,182 14,254Cash at end of the financial year 29(a) 140,531 100,398 49,168 16,182
This Statement of cash flows should be read in conjunction with the accompanying notes.
Statement of cash flowsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
Note 2006 2005 2006 2005$'000 $'000 $'000 $'000
Cash flows from operating activities
Net cash provided by operating activities 90,360 79,453 23,165 11,046
Cash flows from investing activities
Net cash (used in) investing activities (65,927) (209,232) (28,227) (109,145)
Cash flows from financing activities
Net cash provided by financing activities 15,700 138,730 38,048 100,027
Net increase in cash heldCash at beginning of the financial year Cash at end of the financial year 140,531 100,398 49,168 16,182
| 111 |Department of Public Works
Annual Report 2005 - 06
Statement of changes in equity
Department of Public Parent EntityWorks Consolidated
Note 2006 2005 2006 2005$'000 $'000 $'000 $'000
Contributed equityBalance at the beginning of the financial year 337,897 211,979 294,406 168,407Transaction with owners as owners:
Balance at the end of the financial year 413,476 337,897 370,095 294,406
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year 604,652 599,642 563,745 558,127Net surplus or deficit (8,384) 2,289 (5,416) (2,063)Non-owner changes in equity recognised on the face of theIncome statement:
Transfer to/(from) reserves at end of year 52,940 (2,972) - -Net amount of each revenue, expense, valuation or other adjustment not disclosed above recognised as a direct adjustment to equity
Transfer on disposal 4,026 7,681 4,026 7,681Change in asset threshold intangibles - 1 - -Change in lease incentive treatment - (116) - -
Transaction with owners as owners: Dividends paid or declared (15,136) (4,072) - -
Beginning balance elimination and other adjustments 3,288 2,199 - -Balance at the end of the financial year 641,386 604,652 562,355 563,745
Asset revaluation reserveBalance at the beginning of the financial year 338,850 244,125 336,506 233,691Non-owner changes in equity recognised on the face of theIncome statement: Increment/(Decrement) on revaluation of: - Land 187,269 60,199 187,269 60,199 - Buildings 87,562 43,193 87,562 43,193 - Heritage and cultural assets 11,981 1,505 11,981 1,505 - Infrastructure 9,196 5,599 9,196 5,599 - Major plant and equipment (2,344) (8,090) - - Transfer on disposal (4,026) (7,681) (4,026) (7,681)Balance at the end of the financial year 628,488 338,850 628,488 336,506
Contingency reserveBalance at the beginning of the financial year 52,940 49,968 - -Non-owner changes in equity recognised on the face of theIncome statement: Transfer (to)/ from accumulated surplus (52,940) 2,972 - -Balance at the end of the financial year - 52,940 - -
Asset replacement reserveBalance at the beginning of the financial year 3,000 3,000 - -Balance at the end of the financial year 3,000 3,000 - -
This Statement of changes in equity should be read in conjunction with the accompanying notes.
Statement of changes in equityas at 30 June 2006
Department of Public Parent Entityorks Consolidated
Note 2006 2005 2006 2005$'000 $'000 $'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 413,476 337,897 370,095 294,406
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year 641,386 604,652 562,355 563,745
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year 628,488 338,850 628,488 336,506
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - 52,940 - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year 3,000 3,000 - -
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Department of Public Works Financial Reporting
Income statement by outputs/major activities - controlled
Operating surplus/(deficit) after related income tax expense/revenue (3,921) 298 3 472
Operating result attributable to outside equity interests - - - -
Operating surplus/(deficit) (3,921) 298 3 472
* Allocation of revenue and expenses from ordinary activities to corporate services (disclosure only): Revenues from ordinary activities 22,491 14,617 2,062 1,985 Expenses from ordinary activities 22,512 13,456 2,067 1,522
Building Procurement and Asset Management Procurement Services
Income statement by outputs/major activities - controlledfor the year ended 30 June 2006
* Allocation of revenue and expenses from ordinary activities to corporate services (disclosure only): Revenues from ordinary activities 1,466 1,448 702 661 Expenses from ordinary activities 1,466 1,448 702 661
Public Records Managementand Advisory
Services
e-Government and Information and Communication
Technology (ICT) Strategies
Income statement by outputs/major activities - controlled
Operating surplus after related income tax expense 96 32 666 7,999
Operating result attributable to outside equity interests - - (414) (358)
Operating surplus 96 32 252 7,641
* Allocation of revenue and expenses from ordinary activities to corporate services (disclosure only): Revenues from ordinary activities - - - - Expenses from ordinary activities - - - -
# For further details of the Commercialised Business Units please refer to the individual Statements following this Income Statement by Outputs/Major Activities - Controlled.
Commercialised Business Units #Racing Industry Services
Income statement by outputs/major activities - controlled (continued)for the year ended 30 June 2006
Operating (deficit) after related income tax expense/revenue - - (3,220) (3,290)
Operating result attributable to outside equity interests - - - -
Operating (deficit) - - (3,220) (3,290)
* Allocation of revenue and expenses from ordinary activities to corporate services (disclosure only): Revenues from ordinary activities - - - - Expenses from ordinary activities - - - -
Inter Output/Activity EliminationsGeneral - Not Attributed
Income statement by outputs/major activities - controlled (continued)
Operating surplus after related income tax expense (7,970) 2,647
Operating result attributable to outside equity interests (414) (358)
Operating surplus (8,384) 2,289
* Allocation of revenue and expenses from ordinary activities to corporate services (disclosure only): Revenues from ordinary activities 26,721 18,711 Expenses from ordinary activities 26,747 17,087
Department of Public Works Consolidated
Income statement by outputs/major activities - controlled (continued)for the year ended 30 June 2006
Balance at the end of the financial year 15,432 15,583
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year 26,289 24,001Net surplus or deficit 17,595 3,819Non-owner changes in equity recognised on the face of theIncome statement:
Transfer to/(from) reserves at end of year - -Net amount of each revenue, expense, valuation or other adjustment not disclosed above recognised as a direct adjustment to equity
Transfer on disposal - -Change in asset threshold intangibles - 1Change in lease incentive treatment - (116)
Transaction with owners as owners: Dividends paid or declared (8,798) (1,416)
Beginning balance elimination and other adjustments - -Balance at the end of the financial year 35,086 26,289
Asset revaluation reserveBalance at the beginning of the financial year - -Non-owner changes in equity recognised on the face of theIncome statement: Increment/(Decrement) on revaluation of: - Land - - - Buildings - - - Heritage and cultural assets - - - Infrastructure - - - Major plant and equipment - - Transfer on disposal - -Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year - -Non-owner changes in equity recognised on the face of theIncome statement: Transfer (to)/ from accumulated surplus - -Balance at the end of the financial year - -
Asset replacement reserveBalance at the beginning of the financial year - -Balance at the end of the financial year - -
This Statement of changes in equity should be read in conjunction with the accompanying notes.
Statement of changes in equity - QBuildas at 30 June 2006
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 15,432 15,583
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year 35,086 26,289
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year - -
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Annual Report 2005 - 06
Statement of changes in equity - QBuild
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 15,432 15,583
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year 35,086 26,289
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year - -
Income statement - Project Services
2006 2005$'000 $'000
IncomeRevenue
Output revenue - -User charges 133,031 87,718Grants and other contributions - -Other revenue 1,871 1,803
Total income 134,902 89,521
ExpensesEmployee expenses 48,553 42,485Supplies and services 70,200 39,674Grants and subsidies - -Depreciation and amortisation 745 614Impairment losses - -Revaluation decrement - -Finance/borrowing costs - -Other 372 160
Total expenses 119,870 82,933
Net gain/(loss) on sale of property, plant and equipment (3) 9
Operating surplus before income tax 15,029 6,597
Income tax (expense) (4,510) (1,980)
Operating surplus after related income tax expense 10,519 4,617
Operating result attributable to outside equity interests - -
Operating surplus 10,519 4,617
Statement of changes in equity - QBuild
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 15,432 15,583
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year 35,086 26,289
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year - -
Income statement - Project Servicesfor the year ended 30 June 2006
2006 2005$'000 $'000
IncomeRevenue
Total income 134,902 89,521
Expenses
Total expenses 119,870 82,933
Operating surplus before income tax 15,029 6,597
Operating surplus after related income tax expense 10,519 4,617
Balance at the end of the financial year 3,111 4,343
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year 14,564 12,407Net surplus or deficit 10,521 4,618Non-owner changes in equity recognised on the face of theIncome statement:
Transfer to/(from) reserves at end of year - -Net amount of each revenue, expense, valuation or other adjustment not disclosed above recognised as a direct adjustment to equity
Transfer on disposal - -Change in asset threshold intangibles - -Change in lease incentive treatment - -
Transaction with owners as owners: Dividends paid or declared (5,260) (2,461)
Beginning balance elimination and other adjustments - -Balance at the end of the financial year 19,825 14,564
Asset revaluation reserveBalance at the beginning of the financial year - -Non-owner changes in equity recognised on the face of theIncome statement: Increment/(Decrement) on revaluation of: - Land - - - Buildings - - - Heritage and cultural assets - - - Infrastructure - - - Major plant and equipment - - Transfer on disposal - -Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year - -Non-owner changes in equity recognised on the face of theIncome statement: Transfer (to)/ from accumulated surplus - -Balance at the end of the financial year - -
Asset replacement reserveBalance at the beginning of the financial year 3,000 3,000Balance at the end of the financial year 3,000 3,000
This Statement of changes in equity should be read in conjunction with the accompanying notes.
Statement of changes in equity - Project Servicesas at 30 June 2006
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 3,111 4,343
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year 19,825 14,564
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year 3,000 3,000
| 125 |Department of Public Works
Annual Report 2005 - 06
Statement of changes in equity - Project Services
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 3,111 4,343
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year 19,825 14,564
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year 3,000 3,000
Income statement - QFleet
2006 2005$'000 $'000
IncomeRevenue
Output revenue - -User charges 109,858 105,955Grants and other contributions 3,200 -Other revenue 80 51
Total income 113,138 106,006
ExpensesEmployee expenses 7,530 6,944Supplies and services 31,377 34,030Grants and subsidies - -Depreciation and amortisation 47,123 42,999Impairment losses 1,093 -Revaluation decrement 23,638 -Finance/borrowing costs 16,682 14,752Other 6,392 5,754
Total expenses 133,835 104,479
Net (loss) on sale of property, plant and equipment (17,256) (2,402)
Operating (deficit) before income tax (37,953) (875)
Income tax revenue 9,664 347
Operating (deficit) after related income tax revenue (28,289) (528)
Operating result attributable to outside equity interests - -
Operating (deficit) (28,289) (528)
Statement of changes in equity - Project Services
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 3,111 4,343
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year 19,825 14,564
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year 3,000 3,000
Income statement - QFleetfor the year ended 30 June 2006
2006 2005$'000 $'000
IncomeRevenue
Total income 113,138 106,006
Expenses
Total expenses 133,835 104,479
Operating (deficit) before income tax (37,953) (875)
Operating (deficit) after related income tax revenue (28,289) (528)
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year (1,161) 2,338Net surplus or deficit (28,289) (527)Non-owner changes in equity recognised on the face of theIncome statement:
Transfer to/(from) reserves at end of year 52,940 (2,972)Net amount of each revenue, expense, valuation or other adjustment not disclosed above recognised as a direct adjustment to equity
Transfer on disposal - -Change in asset threshold intangibles - -Change in lease incentive treatment - -
Transaction with owners as owners: Dividends paid or declared - -
Beginning balance elimination and other adjustments - -Balance at the end of the financial year 23,490 (1,161)
Asset revaluation reserveBalance at the beginning of the financial year 2,344 10,433Non-owner changes in equity recognised on the face of theIncome statement: Increment/(Decrement) on revaluation of: - Land - - - Buildings - - - Heritage and cultural assets - - - Infrastructure - - - Major plant and equipment (2,344) (8,089) Transfer on disposal - -Balance at the end of the financial year - 2,344
Contingency reserveBalance at the beginning of the financial year 52,940 49,968Non-owner changes in equity recognised on the face of theIncome statement: Transfer (to)/ from accumulated surplus (52,940) 2,972Balance at the end of the financial year - 52,940
Asset replacement reserveBalance at the beginning of the financial year - -Balance at the end of the financial year - -
This Statement of changes in equity should be read in conjunction with the accompanying notes.
Statement of changes in equity - QFleetas at 30 June 2006
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 757 757
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year 23,490 (1,161)
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - 2,344
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - 52,940
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year - -
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Annual Report 2005 - 06
Statement of changes in equity - QFleet
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 757 757
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year 23,490 (1,161)
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - 2,344
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - 52,940
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year - -
Income statement - Goprint
2006 2005$'000 $'000
IncomeRevenue
Output revenue - -User charges 10,288 16,623Grants and other contributions 5,900 3,000Other revenue 134 199
Total income 16,322 19,822
ExpensesEmployee expenses 7,326 8,124Supplies and services 9,076 10,489Grants and subsidies - -Depreciation and amortisation 146 599Impairment losses - -Revaluation decrement - -Finance/borrowing costs 140 192Other 516 590
Total expenses 17,204 19,994
Net gain/(loss) on sale of property, plant and equipment - -
Operating (deficit) before income tax (882) (172)
Income tax revenue/(expense) - -
Operating (deficit) after related income tax expense/revenue (882) (172)
Operating result attributable to outside equity interests - -
Operating (deficit) (882) (172)
Statement of changes in equity - QFleet
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 757 757
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year 23,490 (1,161)
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - 2,344
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - 52,940
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year - -
Income statement - Goprintfor the year ended 30 June 2006
2006 2005$'000 $'000
IncomeRevenue
Total income 16,322 19,822
Expenses
Total expenses 17,204 19,994
Operating (deficit) before income tax (882) (172)
Operating (deficit) after related income tax expense/revenue (882) (172)
Balance at the end of the financial year 8,170 6,988
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year (6,565) (6,304)Net surplus or deficit (883) (172)Non-owner changes in equity recognised on the face of theIncome statement:
Transfer to/(from) reserves at end of year - -Net amount of each revenue, expense, valuation or other adjustment not disclosed above recognised as a direct adjustment to equity
Transfer on disposal - 1Change in asset threshold intangibles - -Change in lease incentive treatment - -
Transaction with owners as owners: Dividends paid or declared - -
Beginning balance elimination and other adjustments - (90)Balance at the end of the financial year (7,448) (6,565)
Asset revaluation reserveBalance at the beginning of the financial year - -Non-owner changes in equity recognised on the face of theIncome statement: Increment/(Decrement) on revaluation of: - Land - - - Buildings - - - Heritage and cultural assets - - - Infrastructure - - - Major plant and equipment - - Transfer on disposal - -Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year - -Non-owner changes in equity recognised on the face of theIncome statement: Transfer (to)/ from accumulated surplus - -Balance at the end of the financial year - -
Asset replacement reserveBalance at the beginning of the financial year - -Balance at the end of the financial year - -
This Statement of changes in equity should be read in conjunction with the accompanying notes.
Statement of changes in equity - Goprintas at 30 June 2006
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 8,170 6,988
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year (7,448) (6,565)
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year - -
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Annual Report 2005 - 06
Statement of changes in equity - Goprint
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 8,170 6,988
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year (7,448) (6,565)
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year - -
Income statement - SDS
2006 2005$'000 $'000
IncomeRevenue
Output revenue - -User charges 53,655 43,485Grants and other contributions 26 -Other revenue 1,094 33
Total income 54,775 43,518
ExpensesEmployee expenses 8,534 5,931Supplies and services 42,807 37,676Grants and subsidies - -Depreciation and amortisation 284 348Impairment losses - -Revaluation decrement - -Finance/borrowing costs 264 213Other 1,407 264
Total expenses 53,296 44,432
Net gain on sale of property, plant and equipment - 14
Operating surplus/(deficit) before income tax 1,479 (900)
Income tax revenue 655 -
Operating surplus/(deficit) after related income tax revenue 2,134 (900)
Operating result attributable to outside equity interests - -
Operating surplus/(deficit) 2,134 (900)
Statement of changes in equity - Goprint
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 8,170 6,988
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year (7,448) (6,565)
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year - -
Income statement - SDSfor the year ended 30 June 2006
2006 2005$'000 $'000
IncomeRevenue
Total income 54,775 43,518
Expenses
Total expenses 53,296 44,432
Operating surplus/(deficit) before income tax 1,479 (900)
Operating surplus/(deficit) after related income tax revenue 2,134 (900)
Balance at the end of the financial year 4,744 4,744
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year (3,321) (2,421)Net surplus or deficit 2,136 (900)Non-owner changes in equity recognised on the face of theIncome statement:
Transfer to/(from) reserves at end of year - -Net amount of each revenue, expense, valuation or other adjustment not disclosed above recognised as a direct adjustment to equity
Transfer on disposal - -Change in asset threshold intangibles - -Change in lease incentive treatment - -
Transaction with owners as owners: Dividends paid or declared (1,068) -
Beginning balance elimination and other adjustments - -Balance at the end of the financial year (2,253) (3,321)
Asset revaluation reserveBalance at the beginning of the financial year - -Non-owner changes in equity recognised on the face of theIncome statement: Increment/(Decrement) on revaluation of: - Land - - - Buildings - - - Heritage and cultural assets - - - Infrastructure - - - Major plant and equipment - - Transfer on disposal - -Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year - -Non-owner changes in equity recognised on the face of theIncome statement: Transfer (to)/ from accumulated surplus - -Balance at the end of the financial year - -
Asset replacement reserveBalance at the beginning of the financial year - -Balance at the end of the financial year - -
This Statement of changes in equity should be read in conjunction with the accompanying notes.
Statement of changes in equity - SDSas at 30 June 2006
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 4,744 4,744
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year (2,253) (3,321)
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year - -
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Annual Report 2005 - 06
Statement of changes in equity - SDS
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 4,744 4,744
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year (2,253) (3,321)
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year - -
Income statement - CITEC (Economic Entity)
2006 2005$'000 $'000
IncomeRevenue
Output revenue - -User charges 125,676 132,364Grants and other contributions - -Other revenue 1,396 1,858
Total income 127,072 134,222
ExpensesEmployee expenses 44,198 44,552Supplies and services 66,490 71,217Grants and subsidies - -Depreciation and amortisation 6,117 6,054Impairment losses - -Revaluation decrement - -Finance/borrowing costs 360 260Other 10,408 10,244
Total expenses 127,573 132,327
Net (loss) on sale of property, plant and equipment (58) (163)
Operating surplus/(deficit) before income tax (559) 1,732
Income tax revenue/(expense) 145 (569)
Operating surplus/(deficit) after related income tax expense/revenue (414) 1,163
Operating result attributable to outside equity interests (414) (358)
Operating surplus/(deficit) (828) 805
Statement of changes in equity - SDS
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 4,744 4,744
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year (2,253) (3,321)
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year - -
Income statement - CITEC (Economic Entity)for the year ended 30 June 2006
2006 2005$'000 $'000
IncomeRevenue
Total income 127,072 134,222
Expenses
Total expenses 127,573 132,327
Operating surplus/(deficit) before income tax (559) 1,732
Operating surplus/(deficit) after related income tax expense/revenue (414) 1,163
Balance at the end of the financial year 11,166 11,074
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year 14,393 13,783Net surplus or deficit (827) 805Non-owner changes in equity recognised on the face of theIncome statement:
Transfer to/(from) reserves at end of year - -Net amount of each revenue, expense, valuation or other adjustment not disclosed above recognised as a direct adjustment to equity
Transfer on disposal - -Change in asset threshold intangibles - -Change in lease incentive treatment - -
Transaction with owners as owners: Dividends paid or declared (10) (195)
Beginning balance elimination and other adjustments - -Balance at the end of the financial year 13,556 14,393
Asset revaluation reserveBalance at the beginning of the financial year - -Non-owner changes in equity recognised on the face of theIncome statement: Increment/(Decrement) on revaluation of: - Land - - - Buildings - - - Heritage and cultural assets - - - Infrastructure - - - Major plant and equipment - - Transfer on disposal - -Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year - -Non-owner changes in equity recognised on the face of theIncome statement: Transfer (to)/ from accumulated surplus - -Balance at the end of the financial year - -
Asset replacement reserveBalance at the beginning of the financial year - -Balance at the end of the financial year - -
This Statement of changes in equity should be read in conjunction with the accompanying notes.
Statement of changes in equity - CITEC (Economic Entity)as at 30 June 2006
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 11,166 11,074
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year 13,556 14,393
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year - -
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Notes to and forming part of the financial statements for the year ended 30 June 2006
1. Summary of significant accounting policies
(a) Basis of accounting
(b) The reporting entity
(c) Administered transactions and balances
f
Notes to and forming part of the financial statements
1. Summary of significant accounting policies
(a) Basis of accounting
The financial statements have been prepared in accordance with Australian Equivalents to International Financial Reporting Standards (AEIFRS) for the first time. The disclosures required by AASB 1 First-time Adoption o Australian Equivalents to International Financial Reporting Standards concerning the transition from previous Generally Accepted Accounting Principles (GAAP) to AEIFRS are provided in Notes 39 to 41.
This financial report is a general purpose financial report.
In particular, the financial statements comply with AAS 29 Financial Reporting by Government Departments, as well as the Treasurer’s Minimum Reporting Requirements for the year ending 30 June 2006 and other authoritative pronouncements. The AASB has issued amendments to existing standards. The amendments are denoted by year and then number, for example 2005-1 indicates amendment 1 issued in 2005. The Departments has elected to early adopt the following accounting standards and amendments:
AASB 119 Employee Benefits (December 2004)
AASB 2004-3 Amendments to Australian Accounting Standards [AASB 1, AASB 101 & AASB 124] (December 2004)
AASB 2005-1 Amendments to Australian Accounting Standard [AASB 139] (May 2005)
AASB 2005-3 Amendments to Australian Accounting Standard [AASB 119] (June 2005)
AASB 2005-4 Amendments to Australian Accounting Standards [AASB 139, AASB 132 & AASB 1] (June 2005)
AASB 2005-5 Amendments to Australian Accounting Standards [AASB 1 & AASB 139] (June 2005)
AASB 2005-8 Amendments to Australian Accounting Standard [AASB 1] (June 2005)
AASB 2005-9 Amendments to Australian Accounting Standards [AASB 139 & AASB 132] (September 2005)
AASB 2005-10 Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 117, AASB 139 & AASB 1] (September 2005)
AASB 2005-11 Amendments to Australian Accounting Standards [AASB 101, AASB 112, AASB 132 & AASB 139] (September 2005)
AASB 2006-2 Amendments to Australian Accounting Standard [AASB 1] (March 2006)
The Treasurer has mandated the early adoption of AASB 7 Financial Instruments: Disclosures (August 2005).
Except where stated, the historical cost convention is used.
(b) The reporting entity
The consolidated financial statements include the value of all assets, liabilities, equities, revenue and expenses of the Department of Public Works and the entities it controls. Details of the Department’s controlled entities are disclosed in Note32.
The Department as an economic entity consists of the Parent Entity together with the Commercialised Business Units as controlled entities. The Parent Entity comprises the Corporate and Executive Support, Building Procurement and Asset Management, Procurement Services, e-Government and Information and Communication Technology (ICT) Strategies and Public Records Management and Advisory Services and Racing Industry Services activities of the Department. In order to provide enhanced disclosure, the Department has adopted the principles outlined in Australian Accounting Standard AASB 127 Consolidated and Separate Financial Statements. This approach is considered appropriate as it reflects the relationships between the Department’s core business activities and those of its Commercialised Business Units. In the process of reporting on the Department as a single economic entity, all transactions and balances with entities controlled by the Department have been eliminated, where material.
(c) Administered transactions and balances
The Department administers, but does not control, certain resources on behalf of the Queensland Government as a whole. In doing so, it has responsibility and is accountable for administering related transactions and items, but does not have the discretion to deploy these resources for the achievement of the Department’s objectives.
Transactions and balances relating to administered resources are not recognised as Departmental revenues, expenses, assets or liabilities, but are disclosed separately in Note 35. These transactions and balances are not significant in comparison to theDepartment’s overall financial performance/financial position.
Statement of changes in equity - CITEC (Economic Entity)
2006 2005$'000 $'000
Contributed equityBalance at the beginning of the financial year
Balance at the end of the financial year 11,166 11,074
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year
Balance at the end of the financial year 13,556 14,393
sset revaluation reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
Contingency reserveBalance at the beginning of the financial year
Balance at the end of the financial year - -
sset replacement reserveBalance at the beginning of the financial yearBalance at the end of the financial year - -
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Notes to and forming part of the financial statements
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 State 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 transactions and balances related to these agency arrangements in 2005-06 are identified separately in Note 37..
(e) Output revenue/administered revenue
Output revenue represents Appropriations paid or payable to the Department. These Appropriations were based on the value of the outputs that the Department delivered in the year. Amounts appropriated to the Department that do not relate directly tothe outputs of the Department are not controlled by it and such amounts are reported as administered revenues. Administered revenue represents Appropriations paid or payable to the Department for Administered activities.
(f) User charges
User charges controlled by the Department are generally recognised as revenues when invoices for the related services are issued. User charges 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 non-reciprocal in nature are recognised as revenue in the year in which theDepartment obtains control over them. Where grants are received that are reciprocal in nature, revenue is accrued over the term of the funding arrangements.
Contributed assets are recognised at their fair value. Contributions of services are only recognised when a fair value can be determined reliably and the services would be purchased if they had not been donated.
(h) Cash assets
For financial reporting purposes, 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 nominal amounts due at the time of sale or service delivery. Settlement of these amounts is generally received within 30 days from invoice date.
The collectability of receivables is assessed at balance date with adequate provision being made for impairment. All known bad debts are written off as at 30 June.
Other debtors generally arise from transactions outside the 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.
Warehousing and Dis ribu on Activ tiesThe 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 first-in-first-out, and manufactured inventories on the basis of weighted averagecost.
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.
Informa ion and Communica ion Infrastructure and Info mation Management Services ActivitiesWork in progress is carried at cost to date based on the value of work completed less progress billings. Production Cost Recoveryis valued at cost and represents purchases made on behalf of clients for which the full cost is recoverable from clients.
Notes to and forming part of the financial statements for the year ended 30 June 2006
1. Summary of significant accounting policies (continued)
(d) Agency transactions and balances
.
(e) Output revenue/administered revenue
(f) User charges
(g) Grants and contributions
(h) Cash assets
(i) Receivables
(j) Inventories
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Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(k) Non-Current assets classified as held for sale
Non-current assets held for sale consists of those assets which management has determined are available for immediate sale in their present condition, and 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. The assets are not depreciated.
(l) Construction work in progress
Valua ionConstruction 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 beincurred under penalty clauses and rectification provisions.
Revenue recogn tion 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 bear to the estimated total costs. Revenue is recognised when the outcome of the contract is reliably known. Where the outcome is 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.
(m) Acquisitions of assets
Actual cost is used for the initial recording of all non-current physical and intangible asset acquisitions. Cost is determinedas the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting theassets ready for use, including architects' fees and engineering design fees. However, any training costs are expensed as incurred.
Where assets are received free of charge from another Queensland Government department (whether as a result of a machinery-of-Government 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 considerations, other than from an involuntary transfer from another Queensland Government department, are recognised at their fair value at date of acquisition in accordance with AASB 116 Property, Plant and Equipment.
(n) Property, plant and equipment
All items of property, plant and equipment with a cost or other value equal to or in excess of the following thresholds are recognised in the financial statements in the year of acquisition:
Buildings and Infrastructure $ 10,000 Land $ 1 Other (including heritage & cultural and major plant & equipment) $ 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 non-current physical and intangible assets
Land, buildings, infrastructure and heritage and cultural assets and major plant and equipment are measured at fair value in accordance with AASB 116 Property, Plant and Equipment and Queensland Treasury’s Non-Current Asset Accounting Policies for the Queensland Public Sector.
Where intangible assets have an active market, they are measured at fair value; otherwise they are measured at cost.
Plant and equipment other than major plant and equipment are measured at cost. The carrying amounts for plant and equipment at cost should not materially differ from their fair value.
Notes to and forming part of the financial statements for the year ended 30 June 2006
1. Summary of significant accounting policies
(a) Basis of accounting
(b) The reporting entity
(c) Administered transactions and balances
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Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(o) Revaluations of non-current physical and intangible assets (continued)
A comprehensive revaluation of the major properties within the commercial land and buildings portfolio is performed at two yearintervals, to coincide with the market rental review. The balance of the portfolio is revalued at four year intervals, on a rolling basis. The Government employee housing stock and infrastructure assets are comprehensively revalued at five year intervals. Interim revaluations of all land, buildings and infrastructure assets, using suitable indices are otherwise performed on an annual basis.
Any revaluation increment arising on the revaluation of an asset is credited to the asset revaluation reserve of the appropriateclass, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense, to the extent it exceeds the balance, if any, in the revaluationreserve relating to that class.
On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the estimate of the remaining useful life.
Separately identified components of assets are valued on the same basis as the assets to which they relate.
The Government motor vehicle fleet (managed by QFleet) was classified at 1 July 2005 as major plant and equipment in accordance with the Queensland Treasury’s Non-Current Asset Account ng Po icies for the Queensland Public Sector. This policy requires that, on first time adoption of the major plant and equipment class, the non-current assets transferred to that class be revalued immediately. There is an active market for motor vehicles and the asset class was valued at fair value as at 30 June 2006.
In accordance with the transition to the Australian Equivalents to International Financial Reporting Standards a retrospective revaluation of the motor vehicle fleet was undertaken with effect at 1 July 2004 with the resulting adjustments reflected in the2004-05 opening balances.
(p) Intangibles
Intangible assets with a cost or other value greater than $100,000 are recognised in the financial statements, items with a lesser value being expensed. Each intangible asset is amortised over its useful life to the Department, less any anticipated residual value. The residual value is zero for all the Department’s intangible assets.
It has been determined that there is not an active market for any of the Department’s intangible assets. As such, the assets are recognised and carried at cost less accumulated amortisation and accumulated impairment losses.
Expenditure on research activities relating to internally-generated assets is recognised as an expense in the period in which itis incurred.
Internally developed/internal use software Costs associated with the development of computer software have been capitalised and are amortised on a straight-line basis over the period of the expected benefit to the Department, generally 5 years. However, where appropriate, the useful lives of certain assets may be determined on an individual case basis.
Goodwill Goodwill and goodwill on consolidation are initially recorded at the amount by which the purchase price for a business or for an ownership interest in a controlled entity exceeds the fair value attributed to its net assets at the date of acquisition. Thebalances are reviewed annually and any balance representing future benefits for which the realisation is considered to be no longer probable are written off.
(q) Amortisation and depreciation of intangibles and property, plant and equipment
Land is not depreciated as it has an unlimited useful life.
Property, plant and equipment is depreciated on a straight line basis so as to allocate the net cost or revalued amount of eachdepreciable asset, less its estimated residual value, progressively over its estimated useful life to the Department. The reducing balance method is applied to assets in the controlled entity of CITEC.
Assets under construction (capital works-in-progress) are not depreciated until they have reached their service delivery capacity.
Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate and are depreciated accordingly.
Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the Department.
Notes to and forming part of the financial statements for the year ended 30 June 2006
1. Summary of significant accounting policies (continued)
(d) Agency transactions and balances
.
(e) Output revenue/administered revenue
(f) User charges
(g) Grants and contributions
(h) Cash assets
(i) Receivables
(j) Inventories
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Annual Report 2005 - 06
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Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(q) Amortisation and depreciation of intangibles and property, plant and equipment (continued)
The depreciable amount of improvements to or on a leasehold property is allocated progressively over the estimated useful livesof the improvements or the unexpired period of the lease, whichever is shorter. The unexpired period of leases includes any option period where exercise of the option is probable.
Items comprising the Department’s technical library are expensed on acquisition.
For each class of depreciable asset the following depreciation rates were generally used:*
Class Dep ec ation ra esBuildings - commercial: Determined on an individual basis in accordance with
useful life – range 1.10% to 10.00% Buildings - Government employee housing: Determined on an individual basis in accordance with
useful life – range 1.52% to 20.00% Buildings - heritage: Determined on an individual basis in accordance with
useful life – range 0.99% to 4.35%. Major plant and equipment (motor vehicle fleet): As per lease term
Computer Equipment: 20% - 40%
Plant and equipment, furniture and fittings, communications equipment and workshop equipment: 20%
Office equipment: 15%
Other plant and equipment: 10%
Infrastructure assets From 1.25% to 6.67% in accordance with useful life of components.
Intangible Assets Amo tisation rates Software 20%
* Where appropriate, the depreciation rates applied to some significant assets (acquisition cost greater than$10,000) are determined on an individual case basis.
(r) Impairment of non-current assets
All non-current physical and intangible assets are assessed for indicators of impairment on an annual basis. If an indicator ofpossible impairment exists, the department determines the asset’s recoverable amount. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss.
The asset’s recoverable amount is determined as the higher of the asset’s fair value less costs to sell and depreciated replacement cost.
An impairment loss is recognised immediately in the Income Statement, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation reserve of the relevantclass to the extent available.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognisedas income, unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. Refer also note 1(n).
(s) Leases
A distinction is made in the financial statements between finance leases that effectively transfer from the lessor to the lesseesubstantially all the risks and benefits incidental to ownership, and operating leases, under which the lessor retains substantially all risks and benefits.
Where a non-current physical asset is acquired by means of a finance lease, the asset is recognised at the lower of the fair value of the leased property and the present value of the minimum lease payments. The lease liability is recognised at the same amount.
Notes to and forming part of the financial statements for the year ended 30 June 2006
1. Summary of significant accounting policies
(a) Basis of accounting
(b) The reporting entity
(c) Administered transactions and balances
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Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(s) Leases (continued)
Lease payments are allocated between the principal component of the lease liability and the interest expense. Operating lease payments are representative of the pattern of benefits derived from the leased assets, and accordingly are expensed in the periods in which they are incurred.
Incentives received on entering into operating leases are recognised as liabilities. Lease payments are allocated between rental expense and reduction of the liability.
(t) Other financial assets
Investments in equity instruments do not have a quoted market price in an active market and are carried at cost.
The Department does not enter transactions for speculative purposes, nor for hedging.
(u) Payables
Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are settled on terms agreed with the vendor.
The Department recognises as payable those dividends declared on or before the reporting date. The entire amount remaining undistributed at the reporting date is recognised.
(v) Other financial liabilities
Interest bearing liabilities are recognised at book value as the amount contractually owing.
All borrowings costs are accounted for on an accrual basis in the income statement using the effective interest method, and are added to the carrying amount of the borrowing to the extent they are not settled in the period in which they arise. No borrowings costs are capitalised. The fair value of the borrowings is disclosed in Note 33.
(w) Employee benefits
Wages, salaries, recreation leave and sick leave Wages, salaries and recreation leave due but unpaid at reporting date are recognised in the Balance Sheet at the remuneration rates expected to apply at the time of settlement and include related on-costs such as payroll tax, WorkCover premiums, long service leave levies and employer superannuation contributions.
For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values. Forthose entitlements not expected to be paid within 12 months, the liabilities are recognised at their present values, calculatedusing yields on Fixed Rate Commonwealth Government bonds of similar maturity.
Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised.
As sick leave is non-vesting, an expense is recognised for this leave as it is taken.
Long service leaveUnder the Queensland Government’s long service leave scheme, a levy is made on the Department to cover this cost. Levies are expensed in the period in which they are paid or payable. Amounts paid to employees for long service leave are claimed from the scheme as and when leave is taken.
No provision for long service leave is recognised in the financial statements, the liability being held on a whole-of-Government basis and reported in the financial report prepared pursuant to AAS 31 Financial Reporting by Governments.
Superannuation Employer superannuation contributions are paid to QSuper, the superannuation plan for Queensland Government employees at rates determined by the State Actuary. Contributions are expensed in the period in which they are paid or payable. The Department’s obligation is limited to its contribution to QSuper.
Therefore, no liability is recognised for accruing superannuation benefits in these financial statements, the liability being heldon a whole-of-Government basis and reported in the financial report prepared pursuant to AAS 31 - Financial Reporting by Governments.
Notes to and forming part of the financial statements for the year ended 30 June 2006
1. Summary of significant accounting policies (continued)
(d) Agency transactions and balances
.
(e) Output revenue/administered revenue
(f) User charges
(g) Grants and contributions
(h) Cash assets
(i) Receivables
(j) Inventories
| 147 |Department of Public Works
Annual Report 2005 - 06
Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(w) Employee benefits (continued)
Executive remuneration The executive remuneration disclosures in the employee expenses note (Note 6) in the financial statements include:
the aggregate remuneration of all senior executive officers (including the Chief Executive Officer) whose remuneration for the financial year is $100,000 or more; and
the number of senior executives whose total remuneration for the financial year falls within each successive $20,000 band, commencing at $100,000.
The remuneration disclosed is all remuneration received or receivable, directly or indirectly, from the entity or any related party in connection with the management of the affairs of the entity or any of its subsidiaries, whether as an executive or otherwise. For this purpose, remuneration includes:
wages and salaries;
accrued leave (that is, the increase/decrease in the amount of annual and long service leave owed to an executive, inclusive of any increase in the value of leave balances as a result of salary rate increases or the like);
performance pay received or due and receivable in relation to the financial year, provided that a liability exists (namely a determination has been made prior to the financial statement being signed), and can be reliably measured even though the payment may not have been made during the financial year;
accrued superannuation (being the value of all employer superannuation contributions during the financial year, both paid and payable as at 30 June);
car parking benefits and the cost of motor vehicles, such as lease payments, fuel costs, registration/insurance, and repair/maintenance incurred by the agency during the financial year, both paid and payable as at 30 June, net of any amounts subsequently reimbursed by the executives;
housing (being the market value of the rent or rental subsidy – where rent is part-paid by the executive – during the financial year, both paid and payable as at 30 June);
allowances (which are included in remuneration agreements of executives, such as airfares or other travel costs paid to/for executives whose homes are situated in a location other than the location they work in); and
fringe benefits tax included in remuneration agreements.
The disclosures apply to all senior executives appointed by Governor in Council and classified as SES1 and above, with remuneration above $100,000 in the financial year. ‘Remuneration’ means any money, consideration or benefit, but excludes amounts:
paid to an executive by an entity or its subsidiary where the person worked during the financial year wholly or mainly outside Australia during the time the person was so employed; or
in payment or reimbursement of our-of-pocket expenses incurred for the benefit of the entity or any of its subsidiaries.
In addition, separate disclosure of separation and redundancy/termination benefit payments is included.
(x) Provisions
Provisions are recorded when the Department has a present obligation, either legal or constructive as a result of a past event.They are recognised at the amount expected at reporting date to settle the obligation in a future period, but where the timing and/or amount required to settle the obligation is uncertain at reporting date, discounted to the present value using the pre-tax discount rate.
(y) Taxation
The Department’s activities are exempt from all forms of Commonwealth taxation except Fringe Benefits Tax, Luxury Car Tax (in respect of certain fleet vehicles) and Goods and Services Tax (GST). As such, input tax credits receivable and GST payable from/to the Australian Taxation Office are recognised and accrued.
Agreements have been reached with Queensland Treasury for the commercialised business units of the Department to pay an income tax equivalent, in accordance with the requirements of the National Tax Equivalents Regime.
Where a commercialised business unit is subject to the tax equivalents regime, the income tax equivalent expense is calculated based on the Balance Sheet approach under which temporary differences are identified for each asset and liability. The tax effect of timing differences, which arise from items being brought to account in different periods for income tax and accountingpurposes, is recognised in the Balance Sheet as a tax asset or a tax liability.
Notes to and forming part of the financial statements for the year ended 30 June 2006
1. Summary of significant accounting policies
(a) Basis of accounting
(b) The reporting entity
(c) Administered transactions and balances
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ti
Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(Y) Taxation (continued)
Tax assets are not brought to account unless realisation of the asset is probable. Tax assets relating to Commercialised Business Units with tax losses are only brought to account to the extent that future profits are probable.
(z) Financing/borrowing costs
Finance costs are recognised as an expense in the period in which they are incurred
Finance costs include: Interest on bank overdrafts and short-term and long-term borrowings; Finance lease charges; Amortisation of discounts or premiums relating to borrowings; and Ancillary administration charges.
(aa) Allocation of revenues and expenses from ordinary activities to corporate services
The Department discloses revenues and expenses attributable to corporate services in the Income Statement by Outputs/Major Activities.
(ab) Insurance
With the exception of the motor vehicle fleet, which is commercially insured, the Department’s non-current physical assets and other risks are insured through the Queensland Government Insurance Fund, premiums being paid on a risk assessment basis. In addition, the Department pays premiums to Workcover Queensland in respect of its obligations for employee compensation.
(ac) Services received free of charge or for nominal value
Contributions of services are recognised only if the services would have been purchased if they had not been donated and their fair value can be measured reliably. Where this is the case, an equal amount is recognised as revenue and an expense.
(ad) Contributed Equity
Non-reciprocal transfers of assets and liabilities between wholly-owned Queensland State Public Sector entities as a result of machinery-of-Government changes are adjusted to ‘Contributed Equity’ in accordance with UIG Abstract 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities. Appropriations for equity adjustments are similarly designated.
(ae) Reserves
Con ngency reserve The contingency reserve has been established to hedge against industry-related financial and operational risks faced by QFleet.
Asset replacement reserve The asset replacement reserve has been established to fund the upgrade and enhancement of the financial management and project management systems of Project Services Business Unit.
(af) Issuance of Financial Statements
The financial statements are authorised for issue by the Director-General and Director of Finance at the date of signing the management certificate.
(ag) Judgements and assumptions
The Department has made no judgements or assessments which may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
(ah) Rounding and comparatives
Amounts included in the financial statements have been rounded to the nearest $1,000 or, where that amount is $500 or less, to zero.
Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period.
Notes to and forming part of the financial statements for the year ended 30 June 2006
1. Summary of significant accounting policies (continued)
(d) Agency transactions and balances
.
(e) Output revenue/administered revenue
(f) User charges
(g) Grants and contributions
(h) Cash assets
(i) Receivables
(j) Inventories
| 149 |Department of Public Works
Annual Report 2005 - 06
Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(ai) Outputs/major activities of the Department
The identity and purpose of each output/ major activity undertaken by the Department during the year is summarised below.
Building Procurement and Asset Management
The Building Procurement and Asset Management activities facilitate building industry improvement and provide advice and support to Government and its agencies in the delivery of services through the cost-effective provision and management of building assets. This is achieved by the following sub-outputs:
Building and built environment research, policy and advice; Delivery of major building/infrastructure projects; Provision and management of Government office accommodation;Government and industry relationships, and industry supplier base development; and Strategic asset management.
Procurement Services
The Procurement Services output is focussed on achieving cost savings and benefits through effective procurement policy and practice. Queensland Purchasing provides a policy framework for the whole-of-Government, advice, and a range of services to Queensland Government agencies that will assist them to advance Government priorities, and achieve value for money with probity and accountability.
Public Records Management and Advisory Services
Queensland State Archives is established under section 21 of the Public Records Act 2002 as the State’s archives and records management authority. It is the custodian of the largest and most significant documentary heritage collection in Queensland. It manages and preserves the State’s permanent public records and facilitates public access to public records in the custody of the State Archivist.
In addition, Queensland State Archives is responsible for public authority recordkeeping in Queensland. The Public Records Act 2002 and its accompanying recordkeeping Information Standards enable Queensland State Archives to develop and implement a comprehensive recordkeeping policy framework to ensure a consistent approach to the creation, management, disposal, storage, preservation, and retrieval of government information.
e-Government and Information and Communication Technology (ICT) Strategies
The e-Government and Information and Communication Technology Strategies Output provides strategic leadership, direction and support to ensure all Queenslanders benefit from Government Information and Communication Technology (ICT) initiatives. Overall responsibility for the implementation of the Smart Direction Statement lies within this output, with adviceand direction from Strategic Information and ICT Board and the Strategic Information and ICT Chief Executive Officer (CEO) Committee. The output assists and supports the department and other agencies to implement programs, strategies and services that contribute to the delivery of whole-of-government priorities.
The key services delivery priorities include: delivering a connected Government ICT platform to improve value for money through increased efficiency, consistency and economies of scale; promoting public sector ICT capability to improve the Government’s ability to deliver responsive, efficient and professional services; developing ICT standards and policy; streamlining ICT procurement and ICT contract management; developing and managing strategic sourcing options and whole-of-Government agreement; partnering with the ICT industry; and working with other jurisdictions.
Racing Industry Services
This output provides a framework for the regulation of the Queensland racing industry, leading to improved integrity and public confidence that the industry is being operated in an accountable and responsible manner. This is achieved through:
implementing and monitoring a regulatory and policy framework which devolves responsibility for self-management to the Queensland racing industry,continuing to facilitate the racing industry’s transition to regulation under the Racing Act 2002,monitoring compliance with the Racing Act 2002,researching and monitoring international, national and state developments and trends in racing, wagering and related industries, and protecting the integrity of the racing industry through provision of drug testing and other scientific services.
Notes to and forming part of the financial statements for the year ended 30 June 2006
1. Summary of significant accounting policies
(a) Basis of accounting
(b) The reporting entity
(c) Administered transactions and balances
| 150 | Section 3
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t
Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(ai) Outputs/major activities of the Department (continued)
QBuild
QBuild is a commercialised business unit of the Department of Public Works and is responsible for planning, managing and delivering a broad range of building-related services to Government agencies. QBuild is also responsible for delivering a number of Community Service Obligations on behalf of Government, including Disaster Management and Apprentice Training, including Indigenous apprentices.
Project Services
Project Services is a multi-disciplinary, professional services, building and property consultancy operating in the public sectorbusiness environment. It provides a full suite of consultancy services including project, risk and asset management, design, contract administration, and corporate services.
Project Services partners with Queensland Government agencies to identify and provide products and services they need to deliver Government outcomes.
Project Services out sources a portion of its work to the private sector by packaging and brokering contracts with consultants and contractors, and managing the commercial interface between the Government (as client) and the building industry. Through joint ventures, Project Services seeks opportunities to facilitate Queensland construction and consultancy industry involvement interstate and internationally
QFlee
QFleet’s core business is to provide:
fleet leasing; fleet management and advisory services; vehicle rentals; and vehicle servicing, maintenance and repairs.
These services include the funding, acquisition, management, disposal and maintenance of the fleet and are supported by:
management of the risks associated with vehicle ownership and operation; advisory services; and business asset leasing and management.
All departments, except Queensland Police Service, are tied to QFleet’s vehicle leasing and fleet management service. The balance of clients is from organisations in receipt of Government funding. QFleet’s workshop and vehicle rental services are offered in full competition with the private sector.
Goprint
Goprint’s primary role is to support Government through the provision of printing, publishing, and retailing of Reserved Services and the provision of a wide range of similar services to Government departments and agencies, not-for-profit organisations and other government funded organisations.
Reserved services produced by Goprint support the workings of Parliament, ensure a permanent record of Parliament, legislation and Government declarations, and ensure that Government agencies, industry and the community have easy access to Government information.
Goprint has traditionally maintained a large infrastructure to support the production of these reserved services products within tight deadlines and high security. To enable the minimisation of costs to the Queensland Government, Goprint also provides a full range of commercial printing, publishing and information management services for Government agencies. These commercial services encompass concept development, research, design, production and dissemination across a wide range of media, including electronic publishing.
t
Notes to and forming part of the financial statements for the year ended 30 June 2006
1. Summary of significant accounting policies (continued)
(ai) Outputs/major activities of the Department (continued)
QBuild
Project Services
QFlee
Goprint
| 151 |Department of Public Works
Annual Report 2005 - 06
l
Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(ai) Outputs/major activities of the Department (continued)
SDS (Sa es and Distribution Services)
SDS operates three related services streams – SDS Publications, SDS Logistics and SDS Distribution.
SDS Publications is an online retail and distribution business with expertise in managing both electronic and printed publications. The operation is developing a Publications Distribution Centre for Government, supporting Smart Service Queensland’s whole-of-Government call centre operations and providing an online channel for electronic and printed publications distribution. The business maintains in excess of 6,000 different products, with an annual turnover of approximately $6 million.
SDS Logistics provides warehousing and distribution services to agencies within Government seeking to benefit through the economies of scale and efficiencies offered through an internal provider. This operation manages the SDS Brendale warehouse facility together with any spare facilities at other SDS sites.
SDS Distribution is an online retail and distribution business trading in excess of 10,000 general merchandise office and furniture products to schools and government agency offices throughout Queensland, with an annual turnover of approximately $45 million.
SDS is bound by a charter to serve government or government funded bodies or agencies and is committed to remaining highly competitive in its marketplace through continuous internal evaluation and improvement, innovative business strategies and excellence in client service provision.
CITEC
CITEC supplies information and communication infrastructure and information management services to Queensland Government agencies. CITEC also provides services to other government and private sector businesses where this enhances its value to the Queensland Government and supports its core business strategy.
CITEC specialises in delivering business solutions to streamline and support everyday processes vital to customer operations. CITEC solutions encompass the following areas:
Infrastructure Services: providing technological solutions in respect of server management and hosting, network connectivity and storage management, security, disaster recovery and managed desktop solutions; Information Services: providing on-line access to publicly available due diligence information; Application Services: providing hosting and application management services for a range of financial, human resources/payroll and enterprise systems; and Professional Services: providing consultative services in business and technology solutions.
Notes to and forming part of the financial statements for the year ended 30 June 2006
1. Summary of significant accounting policies (continued)
(d) Agency transactions and balances
.
(e) Output revenue/administered revenue
(f) User charges
(g) Grants and contributions
(h) Cash assets
(i) Receivables
(j) Inventories
| 152 | Section 3
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Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
2 Reconciliation of payments from consolidated fund and output revenue recognised in Income statementBudgeted output appropriation 72,697 110,165 72,697 110,165 Less: Equity return - 52,908 - 52,908 Transfers from/to other departments - 3,818 - 3,818 Transfers from/to other headings - (99,715) - (99,715) Lapsed output appropriation (17,230) (3,557) (17,230) (3,557) Total output receipts 55,467 63,619 55,467 63,619 Less: Opening balance output revenue receivable (9,852) (8,559) (9,852) (8,559) Plus: Closing balance of output revenue receivable 2,313 9,852 2,313 9,852 Output revenue recognised in the Income statement 47,928 64,912 47,928 64,912
Reconciliation of payments from consolidated fund and equity adjustment recognised in contributed equityBudgeted equity adjustment appropriation 107,716 36,600 107,716 36,600 Transfers from/to other departments (3,442) (261) (3,442) (261) Transfers from/to other headings - 44,058 - 44,058 Lapsed equity adjustment appropriation (55,033) - (55,033) - Unforeseen expenditure - 49,016 - 49,016 Total equity adjustment receipts 49,241 129,413 49,241 129,413 Less: Opening balance equity adjustment receivable (4,066) (1,085) (4,066) (1,085) Plus: Closing balance of equity adjustment receivable 5,327 4,066 5,327 4,066 Equity adjustment recognised in contributed equity 50,502 132,394 50,502 132,394
3 User chargesRent of government buildings 193,888 177,170 210,602 192,975 Stock sales 51,651 41,492 - - Building maintenance 304,111 275,076 - - Building services 57,430 52,098 22,816 19,745 Building construction 284,777 212,131 - - Professional building consultancy 123,894 79,748 1,207 1,093 Printing sales 7,011 15,427 - - Vehicle leasing, hire and workshop sales 101,830 98,099 - - Information technology services 118,841 126,667 - - Other 13,031 12,643 34,561 31,089
1,256,464 1,090,551 269,186 244,902
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
2 Reconciliation of payments from consolidated fund and output revenue recognised in Income statement
Output revenue recognised in the Income statement 47,928 64,912 47,928 64,912
Reconciliation of payments from consolidated fund and equity adjustment recognised in contributed equity
Equity adjustment recognised in contributed equity 50,502 132,394 50,502 132,394
3 User charges
1,256,464 1,090,551 269,186 244,902
| 153 |Department of Public Works
Annual Report 2005 - 06
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
4 Grants and other contributionsGrants 4,827 4,376 163 2,826 Donations - assets - 7,900 - 7,900 Community service obligations 15,823 12,149 - -
6 Employee expenses/number of employees/chief executive's remunerationEmployee expenses: Wages and salaries 253,442 242,705 36,565 33,756 Employer superannuation contributions 28,071 27,383 4,305 4,055 Long service leave levy 4,307 3,607 648 510 Workers' compensation 3,504 3,048 62 47 Voluntary early retirements 936 1,378 - 83 Other 20,886 17,154 3,204 3,131
311,146 295,275 44,784 41,582
Number of employees: 4,620 4,557 568 536
The number of employees includes both full-time employees and part-time employees measured on a full-timeequivalent basis.
Executive remuneration 2006The following is remuneration paid/payable to senior executives in the department:
$120,000 to $139,999 4 $140,000 to $159,999 7 $160,000 to $179,999 5 $180,000 to $199,999 2 $260,000 to $289,999 1
Total 19
Aggregate amount of total remuneration of executives shown above $3,084,254
Aggregate amount of separation and redundancy/termination benefit paymentsduring the year to executives shown above Nil
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
4 Grants and other contributions
20,650 24,425 163 10,726
5 Other revenues
14,883 13,434 7,878 7,420
6 Employee expenses/number of employees/chief executive's remunerationEmployee expenses:
311,146 295,275 44,784 41,582
Number of employees:
Executive remuneration 2006
Total 19
| 154 | Section 3
Department of Public Works Financial Reporting
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
7 Supplies and servicesSDS - Warehousing and distribution 41,438 34,364 - - QB - Government building services 480,988 403,594 - - PE - Property related expenses 143,436 126,620 201,749 180,425 GP - Printing production 3,351 7,259 - - PS - Professional building consultancy 37,548 14,134 - - QF - Fleet management and maintenance 16,323 25,916 - - CITEC - Information technology services 55,699 58,180 - - Other 77,784 74,878 36,208 47,455
856,567 744,945 237,957 227,880
8 Grants and subsidiesDeagon training track subsidy 2,000 2,000 2,000 2,000 Mackay convention precinct capital grant 180 477 180 477 Island watch project 163 4,202 163 4,202 Other 385 255 385 255
2,728 6,934 2,728 6,934
9 Depreciation and amortisation Buildings 20,325 17,367 20,325 17,367 Heritage and cultural assets 286 281 286 281 Infrastructure assets 1,966 1,236 1,966 1,236 Plant and equipment 6,337 6,968 1,506 2,189 Major plant and equipment 46,983 42,845 - - Intangible - Internal use software (at cost) 4,347 6,906 1,803 1,722
80,244 75,603 25,886 22,795
The approximate increase/(decrease) in depreciation and amortisation expense as a result of the re-assessment of the useful lives of depreciable assets during the reporting period was: Intangibles 372 150 - - Plant and equipment 296 133 - -
10 Impairment lossesMajor plant and equipment 1,093 - - -
1,093 - - -
11 Revaluation decrementNet decrement on the revaluation of major plant and equipment 23,638 - - -
23,638 - - -
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
7 Supplies and services
856,567 744,945 237,957 227,880
8 Grants and subsidies
2,728 6,934 2,728 6,934
9 Depreciation and amortisation
80,244 75,603 25,886 22,795
10 Impairment losses
1,093 - - -
11 Revaluation decrement
23,638 - - -
| 155 |Department of Public Works
Annual Report 2005 - 06
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
13 Other expensesInsurance premiums - QGIF 485 533 347 329 Insurance premiums - Other 5,967 5,041 - - External audit fees 631 581 228 186 Bank charges / merchant fees 368 403 7 7 Write-down of assets 1,399 2,801 1,399 2,801 Operating lease rentals 7,195 8,357 282 272 Doubtful debts raised as a provision 698 122 52 - Write-down of inventory - 73 - - Donations/gifts 29 5 - - Losses: Bad debts 126 56 2 - Public monies - 3 - - Public property # 9 - 9 - Provision for foreseeable losses - 20 - - Performance penalties 67 88 - - Services provided at below fair value 36 - - - Property rentals 2,200 - - - Fees and other penalties 3 1 - - Other 301 834 150 200 Total other expenses 19,514 18,918 2,476 3,795
# Certain losses of public monies/property are insured by the Queensland Government Insurance Fund (QGIF). The claim made in respect of these losses have yet to be assessed by QGIF and the amount recoverable cannot be estimated reliably at reporting date. Upon notification by QGIF of the acceptance of the claims, revenue will be recognised for the agreed settlement amount.
14 Cash assetsCurrentImprest accounts 25 25 6 6 Cash at bank and on hand 140,513 100,401 49,162 16,176 Cash in transit 87 97 - -
140,625 100,523 49,168 16,182
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
12 Finance/borrowing costs
34,794 34,637 17,348 19,220
13 Other expenses
Total other expenses 19,514 18,918 2,476 3,795
14 Cash assets
140,625 100,523 49,168 16,182
| 156 | Section 3
Department of Public Works Financial Reporting
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
18 Other assetsCurrentPrepayments 22,222 19,916 13,158 10,977 Other 6 61 - 53
22,228 19,977 13,158 11,030
Non-currentPrepayments 273 435 - - Other 3 7 - -
276 442 - -
19 Non-current assets classified as held for saleLand 9,655 15,698 9,655 15,698 Heritage and cultural assets 454 438 454 438 Plant and equipment - 2 - - Major plant and equipment 8,780 50,074 - -
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
20 Intangible assets (continued)
Reconciliation of the carrying amount of Intangibles:Carrying amount at the beginning of the year 19,145 25,741 7,268 11,908 Acquisitions 2,363 4,173 109 949 Acquisitions through restructuring - 105 - 105 Disposals - - - - Transfers between classes (14) 8 (13) - Depreciation/amortisation (4,347) (6,906) (1,803) (1,722) Other adjustments (2,039) (3,976) (1,399) (3,972) Carrying amount at the end of the year 15,108 19,145 4,162 7,268
Original cost of fully amortised Intangibles still in use 29,965 25,890 5,386 3,338
Plant and equipment: At cost 71,682 72,284 17,013 15,928 Less: Accumulated depreciation 53,066 54,906 12,144 12,399
18,616 17,378 4,869 3,529
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
20 Intangible assets (continued)
15,108 19,145 4,162 7,268
Original cost of fully amortised Intangibles still in use 29,965 25,890 5,386 3,338
21 Property, plant and equipment
Land:
649,526 462,784 649,526 462,784
Buildings:
890,020 800,011 890,689 800,340
Heritage and cultural assets:
35,506 24,544 35,506 24,544
Infrastructure assets:
90,628 56,445 90,628 56,445
Plant and equipment:
18,616 17,378 4,869 3,529
| 159 |Department of Public Works
Annual Report 2005 - 06
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
21 Property, plant and equipment (continued)
Major plant and equipment:At valuation 392,610 378,003 - - Less: Accumulated depreciation 90,891 49,658 - -
301,719 328,345 - -
Capital works in progress: At cost 30,251 20,339 30,042 20,180
30,251 20,339 30,042 20,180
Total property, plant and equipment 2,016,266 1,709,846 1,701,260 1,367,822
ReconciliationsReconciliations of the carrying amount for each class of property, plant and equipment are setout below:
Land:Carrying amount at the beginning of the year 462,784 388,524 462,784 388,524 Acquisitions 4,518 21,300 4,518 21,300 Acquisitions through restructuring - 970 - 970 Disposals (3,958) (8,210) (3,958) (8,210) Assets reclassified as held for sale (795) - (795) - Transfers between classes (292) - (292) - Revaluation increments/(decrements) 187,269 60,199 187,269 60,199 Other adjustments - 1 - 1 Carrying amount at the end of the year 649,526 462,784 649,526 462,784
Buildings:Carrying amount at the beginning of the year 800,011 632,486 800,340 632,486 Acquisitions 14,032 81,402 15,735 82,234 Acquisitions through restructuring - 1,588 - 1,587 Disposals (6,493) (1,945) (6,493) (1,945) Transfers between classes 14,904 60,655 13,870 60,153 Revaluation increments 87,562 43,192 87,562 43,192 Depreciation/amortisation (20,325) (17,367) (20,325) (17,367) Other adjustments 329 - - - Carrying amount at the end of the year 890,020 800,011 890,689 800,340
Heritage and cultural assets: Carrying amount at the beginning of the year 24,544 23,703 24,544 23,703 Acquisitions - 225 - 225 Disposals (1,120) (1,394) (1,120) (1,394) Transfers between classes 387 785 387 785 Revaluation increments 11,981 1,506 11,981 1,506 Depreciation/amortisation (286) (281) (286) (281) Carrying amount at the end of the year 35,506 24,544 35,506 24,544
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
21 Property, plant and equipment (continued)
Major plant and equipment:
301,719 328,345 - -
Capital works in progress:
30,251 20,339 30,042 20,180
Total property, plant and equipment 2,016,266 1,709,846 1,701,260 1,367,822
ReconciliationsReconciliations of the carrying amount for each class of property, plant and equipment are setout below:
Land:
649,526 462,784 649,526 462,784
Buildings:
890,020 800,011 890,689 800,340
Heritage and cultural assets:
35,506 24,544 35,506 24,544
| 160 | Section 3
Department of Public Works Financial Reporting
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
21 Property, plant and equipment (continued)
Infrastructure assets: Carrying amount at the beginning of the year 56,445 50,949 56,445 50,949 Acquisitions 456 6,601 456 6,601 Acquisitions through restructuring 26,497 3 26,497 3 Disposals - (5,500) - (5,500) Transfers between classes - 28 - 28 Revaluation increments 9,196 5,599 9,196 5,599 Depreciation/amortisation (1,966) (1,236) (1,966) (1,236) Other adjustments - 1 - 1 Carrying amount at the end of the year 90,628 56,445 90,628 56,445
Plant and equipment: Carrying amount at the beginning of the year 17,378 16,695 3,529 3,894 Acquisitions 5,806 7,065 1,153 880 Acquisitions through restructuring - 959 - 941 Disposals (171) (183) (132) (16) Assets reclassified as held for sale 2 (2) - - Transfers between classes 1,958 1,349 1,825 17 Depreciation/amortisation (6,337) (6,968) (1,506) (2,189) Other adjustments (20) (1,537) - 2 Carrying amount at the end of the year 18,616 17,378 4,869 3,529
Major plant and equipmentCarrying amount at the beginning of the year 328,345 319,479 - - Acquisitions 138,512 189,923 - - Assets reclassified as held for sale (91,167) (126,552) - - Donations made - (108) - - Revaluation increments/(decrements) (26,988) (11,555) - - Depreciation/amortisation (46,983) (42,845) - - Other adjustments - 3 - - Carrying amount at the end of the year 301,719 328,345 - -
Capital works in progress:Carrying amount at the beginning of the year 20,339 65,461 20,180 63,840 Acquisitions 27,172 27,897 25,639 27,036 Disposals - (9,713) - (9,713) Transfers between classes (16,943) (62,825) (15,777) (60,983) Impairment losses recognised in operating (deficit) - (196) - - Other adjustments (317) (285) - - Carrying amount at the end of the year 30,251 20,339 30,042 20,180
Total property, plant and equipment 2,016,266 1,709,846 1,701,260 1,367,822
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
21 Property, plant and equipment (continued)
Infrastructure assets:
90,628 56,445 90,628 56,445
Plant and equipment:
18,616 17,378 4,869 3,529
Major plant and equipment
301,719 328,345 - -
Capital works in progress:
30,251 20,339 30,042 20,180
Total property, plant and equipment 2,016,266 1,709,846 1,701,260 1,367,822
| 161 |Department of Public Works
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Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
21 Property, plant and equipment (continued)
Commercial properties and heritage listed buildingsAs part of a rolling revaluation programme, the Department of Public Works procured independent valuations for 29 heritage listed properties for 30 June 2006. The firm Rushton AssetVal Pty Ltd prepared these valuation reports. Signatories to all of the assessments are registered valuers under the Valuers Registration Act 1992.
The balance of the commercial portfolio was subject to an interim revaluation with the application of indices supplied by the Department of Natural Resources, Mines and Water. Indices derived from market analysis of movement in local land values were applied to land holdings while the Queensland Implicit Price Deflator was applied to the buildings.
Government employee housingIn 2005-06, all employee housing properties were subject to an interim revaluation with the application of indices supplied by the Department of Natural Resources, Mines and Water. Indices derived from market analysis of movement in local land values were applied to land holdings while the Queensland Implicit Price Deflator was applied to the buildings.
Infrastructure assetsThe infrastructure assets comprising Roma Street Parkland and the Goodwill Bridge were subject to an interim indexation with the application of the Queensland Implicit Price Deflator.
Revaluation increment for assets disposed ofAmount of revaluation increment in respect of assets disposed of transferred to (Retained surpluses) (4,026) (7,681) (4,026) (7,681)
Original cost of fully depreciated Property, Plantand Equipment still in use 41,889 33,621 15,970 8,271
22 PayablesCurrentDividends 15,126 4,072 - - Trade creditors 92,830 84,146 21,532 28,298 Advance on land sales 4,500 11,338 4,500 11,338 Other 17,332 12,774 4,140 2,323
Refer also Note 33 for information on Financial Instruments
All borrowings are in $A denominated amounts and recognised at their face value, interest being expensed as it accrues. Interest of $94,152 (2005: $842,003) has been capitalised during the current reporting period. Repayment dates vary from 1 July 2006 to 15 June 2015. The interest rates on borrowings (for other than those in respect of the motor vehicle fleet) range from 5.15% to 10.24%
For those borrowings in respect of the motor vehicle repayment dates are monthly and are on an interest only basis. The market value of the department's borrowings at 30 June, as notified by Queensland Treasury Corporation was $489.161M (2005: $537.388M). This represents the value of the debt if the Department repaid the debt at balance date. As it is the intention of the Department to hold its borrowings for their full term, no adjustment provision is made to these accounts.
Interest on finance leases is recognised as an expense as it accrues. No interest has been capitalised during the current or comparative reporting period.
At 30 June 2006, overdraft facilities with the Commonwealth bank with limits ranging from $2M to $49M were in place under the Queensland Treasury cash management incentive regime. The current overdraft interest rate is 8.6%.
24 Accrued employee benefitsCurrentEmployee entitlements - annual leave 24,227 23,404 3,221 3,097 Long service leave levy payable 951 883 156 123 Salaries, wages and other related expenses 6,936 3,744 897 596 Employee bonuses 2,109 960 - - Other 141 8,082 - -
34,364 37,073 4,274 3,816
Non-currentEmployee entitlements - annual leave 5,309 4,243 1,377 1,118 Employee entitlements - long service leave 169 119 - -
5,478 4,362 1,377 1,118
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
23 Other financial liabilities (continued)
440,431 475,233 154,146 168,869
24 ccrued employee benefits
34,364 37,073 4,274 3,816
5,478 4,362 1,377 1,118
| 163 |Department of Public Works
Annual Report 2005 - 06
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
25 ProvisionsCurrentOther 2,291 1,762 - -
2,291 1,762 - -
Movements in provisions
Other:Carrying amount at the beginning of the year 1,762 780 - - Additional provision recognised 1,058 1,278 - - Reduction as a result of payments (332) (225) - - Reduction as a result of re-measurement (197) (71) - - Carrying amount at the end of the year 2,291 1,762 - -
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
25 Provisions
2,291 1,762 - -
Movements in provisions
2,291 1,762 - -
26 Tax liabilities
10,295 3,790 - -
2,768 13,285 - -
27 Other liabilities
52,001 51,595 3,107 4,256
6,607 5,091 6,387 4,931
| 164 | Section 3
Department of Public Works Financial Reporting
28 Equity infoffofoformation
s:
blic Pare
2006 2005$'000 $'000 $'000 $'000
Outsid tiesOutside equity interests comprises: Share capital 1,019 1,0191,019 -1,019 -- Reserves (549) (549)(549) -(549) -- Retained profits/(losses) 991 756991 -756 --Balance at the end of the financial year 1,461 1,226 - -
Net profit attributable to outside equity interests 4 4 358414 -358 --
29
(a))) Reconciliation of cashCash at the end of the financial year as shown in the Statement of cash flows is reconciled to the related items inthe Balance sheet as follows:
Not nd foffofoformi t of the f mentsfor the year ended 30 June
| 165 |Department of Public Works
Annual Report 2005 - 06
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
29 Cash flow information (continued)
(b) Reconciliation of net operating result to net cash provided by (used in) operating activities
Operating result from ordinary activitiesbefore income tax expense (6,455) 6,700 (5,416) (2,063) Less: Income tax expense 1,515 4,053 - -
(7,970) 2,647 (5,416) (2,063)
Non cash itemsDepreciation and amortisation expense 80,244 75,603 25,886 22,795 Doubtful debts written off or provided for 662 257 53 89 Profit/loss on sale or disposal of non-current assets 16,656 10,310 (608) 7,817 Provision for foreseeable losses (7) 20 - - Assets and liabilities assumed/relinquished (151) (48) - - Accrued interest (94) 842 (94) 842 Transactions processes through related entity (2) 7 - - Write-down of inventory - 16 - - Assets transferred to expense 317 121 - - Lease incentives (28) (103) - - Adjustments against equity 24,553 (1,174) - (1,174)
Change in assets and liabilities(Increase) in net receivables (49,440) (22,896) 7,117 (1,857) (Increase) in inventories (8,381) (1,270) - - (Increase) in interest receivable (222) (732) (430) (544) (Increase) in prepayments (2,103) (633) (2,180) (169) (Increase) in future tax equivalents benefit (1,075) (1,654) - - (Increase)/decrease in other assets 702 (100) 53 (111) Increase/(decrease) in unearned revenue 488 5,284 (1,446) (2,562) Increase/(decrease) in employee benefits (1,948) 1,933 301 865 Increase/(decrease) in payables 29,426 16,044 (11,417) 2,338 Increase in provisions 975 7,594 240 - Increase in provision for tax equivalents expense 6,506 478 - - Increase/(decrease) in interest payable (4) 220 - - Increase in other liabilities 1,008 4,623 1,456 4,930 Increase/(decrease) in provision for Deferred Tax Equivalents (9,469) 2,778 - - Change in assets and liabilities for non cash items - (9,094) - (9,094) (Increase)/decrease in GST input tax credits receivable 9,558 (12,148) 9,650 (11,056) Increase in GST input tax credits payable 159 528 - - Net cash provided by operating activities 90,360 79,453 23,165 11,046
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
29 Cash flow information (continued)
(b) Reconciliation of net operating result to net cash provided by (used in) operating activities
(7,970) 2,647 (5,416) (2,063)
Net cash provided by operating activities 90,360 79,453 23,165 11,046
| 166 | Section 3
Department of Public Works Financial Reporting
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
30 Commitments for expenditure/lease commitmentsreceivable
(a) Finance leases
Lease liabilities recognised in the Balance sheet: Current 32 369 - - Non-current - 32 - -
32 401 - -
Commitments under finance leases at the reportingdate are inclusive of anticipated GST and are payableas follows: Not later than one year 32 381 - - Later than one year and not later than five years - 32 - - Total commitments 32 413 - - Less: Future finance charges recognised in the
A finance lease exists for a software package. Lease payments are fixed and ownership transfers to the lessee at the end of the term.
(b) Non-cancellable operating lease commitments
Commitments under non-cancellable operating leases at reporting date are inclusive of anticipated GST and are payable as follows: Not later than one year 122,247 101,488 115,434 94,819 Later than one year and not later than five years 203,989 170,625 200,442 169,274 Later than five years 58,484 63,251 58,484 63,251
384,720 335,364 374,360 327,344
Most operating leases (99%) are entered into as a means of acquiring access to office accommodation. For these, rental payments are usually able to be varied based on CPI or conditions detailed in the lease. Most leases do contain renewal clauses but no purchase options exist in relation to operating leases and no operating leases contain restrictions on financing or other leasing activities.
For the other 1%, payments are fixed for the term of the lease contract based on market rates. There is no commitment for renewal or purchase; however, in most cases, there is an option to renew or purchase leased equipment at the end of the contract.
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
30 Commitments for expenditure/lease commitmentsreceivable
(a) Finance leases
32 401 - -
Total commitments 32 413 - -
Finance lease liability 32 401 - -
(b) Non-cancellable operating lease commitments
384,720 335,364 374,360 327,344
| 167 |Department of Public Works
Annual Report 2005 - 06
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
30 Commitments for expenditure/lease commitmentsreceivable (continued)
(c) Expenditure commitments
Material expenditure commitments inclusive of anticipated GST contracted for but not recognised as payable are as follows:Buildings 5,439 3,763 5,439 3,763 Plant and equipment 171 865 - 573 Major plant and equipment 30,582 40,812 - - Maintenance 38,313 21,135 - - Capital grants 39,276 39,515 39,276 39,515 External consultants 31,707 22,926 2,524 2,559 Operational expenditure 17,331 18,150 6,012 6,242
162,819 147,166 53,251 52,652
Not later than one year 114,142 97,510 11,854 10,563 Later than one year and not later than five years 48,677 49,656 41,397 42,089
Commitments under vehicle fleet finance leases as at reporting date are exclusive of GST and are receivable as follows: Not later than one year 29 77 - - Later than one year and not later than five years 165 160 - - Vehicle fleet finance leases (exclusive of GST) 194 237 - -
QFleet leases a wide range of vehicles to Queensland Government departments and other organisations in receipt of Government funding. Vehicles are usually provided on a fully-maintained operating lease basis, incorporating elements such as registration, insurance and maintenance. Leasing rates are based on vehicle type, options, area and nature of operation, and time and distance projections.
QFleet has entered into a number of financing leasing arrangements with various Queensland Government funded entities principally for motor vehicle and moveable plant.
(e) Office accommodation rents receivable
The Department of Public Works has occupancy agreements with all major Queensland Governement departments. As these agreements are open-ended they do not meet the definition of an operating lease in AASB 117 Leases. The amounts receivable extend over an indefinite period of time and therefore cannot be quantified in the financial statements.
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
30 Commitments for expenditure/lease commitmentsreceivable (continued)
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
31 Contingencies
Assets: Common law recovery - 9 - -
- 9 - -
Liabilities: Common law claims 320 405 100 90 Research studies - 159 - - Bank guarantees: Commonwealth of Australia 80 80 - - Australian Securities and Investment Commission 382 382 - - State of Victoria 142 108 - - State of New South Wales 614 500 - - Sydney Water Corporation 28 28 - - State of Western Australia 125 125 - - Insolvency and Trustee Service Australia 127 127 - - State of Samoa - 40 - - Other 74 31 - -
1,892 1,985 100 90
The contingent liabilities relate to a number of litigation cases filed in various Queensland jurisdictions naming the Department of Public Works as defendant. The amounts reported for the claims represent estimates of the maximum costs that might be borne by the Department in the event that defence of the action was unseccessful. The amount include allowances for the excess ($10,000) applicable in those instances where the defence of the case is managed by the Queensland Government Insurance Fund (QGIF) and the contingent liabilities have been assumed by the Fund.
The Department has also received notification of a number of potential cases that are not yet subject to court action. These cases may or may not result in subsequent litigation.
32 Controlled entitiesSet out below are the entities controlled by the Department and whose revenue, expenses, assets, liabilities and equity have been included within these financial statements.
Commercialised business unitsProject Services QBuildQFleetGoprintSDSCITECIncome statements, Balance sheets, Statements of cash flows and Statements of changes in equity for each of thecommercialised business units have been included following the Income Statement of outputs/major activities.
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
31 Contingencies
ssets:
- 9 - -
Liabilities:
1,892 1,985 100 90
32 Controlled entities
| 169 |Department of Public Works
Annual Report 2005 - 06
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
33 Financial instruments
(a) Terms conditions and accounting policies
CashCash includes cash on hand, imprest account totals, balance of bank accounts with Commonwealth Banking Corporation Government Banking Centre and 24 hour call deposits and similar investments that are readily convertible to cash. Cash at bank balances earn interest at the Treasury monthly benchmark rate. In 2005-06 the combined bank balances of the Commercialised Units and the Parent Entity was $140.625M ($100.523Min 2004-05).
Cash at bank 140,419 100,276 49,162 16,176
Receivables (trade debtors)Trade debtors are carried at nominal amounts less any provision for impairment. A provision for impairment is recognised when collection of the full nominal amount is no longer probable. Trade sales require payment within 30 days from the end of month in which a sale is invoiced. All trade debtors are secured by cash deposit or other financial guarantee.
Receivables (other than trade debtors)Amounts are carried at nominal values. Other than receivables from Government terms are 30 days net.
CreditorsRecognition – upon receipt of goods or services irrespective of whether an invoice has been received. The amounts are unsecured and are usually settled on 30 day terms.
Finance lease liabilityThe finance lease liabilities are accounted for in accordance with AASB 117 Leases . Interest is charged as an expense as it accrues. The finance leases have an average lease term of 3 years. The average interest rate implicit in the leases is 5.22%
Interest-bearing liabilitiesLoans are carried at book value. Interest is charged as an expense as it accrues. All borrowings are with Queensland Treasury Corporation. Borrowings (for other than those in respect of the motor vehicle fleet) are repayable quarterly in arrears. For those borrowings in respect of the motor vehicle fleet repayment dates are monthly and are on an interest only basis.
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
33 Financial instruments
(a) Terms conditions and accounting policies
Cash at bank
| 170 | Section 3
Department of Public Works Financial Reporting
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
33 Financial instruments (continued)
(b) Interest rate risk exposure
The Department is exposed to interest rate risk through financial liabilities and the cash balances (see note on cash above). The following table summarises interest rate risk for borrowings with the Queensland Treasury Corporation and the finance lease liabilities together with effective interest rates as at balance date. All other assets and liabilities have no interest rate risk exposure.
Financial liabilities - Queensland Treasury CorporationFloating Interest rate 69,238 48,995 83 83 Contractual Repricing/maturity Date: Less than one year 60,278 50,908 52,032 45,054 Between 1-5 years 244,344 282,421 105,292 121,682 Greater than 5 years 127,518 148,036 48,122 49,997 Non interest bearing - - - - Total 501,378 530,360 205,529 216,816
Weighted average rate - Financial liabilities - QTC 6.58% 6.19%
Finance lease principal commitmentsLess than one year 32 369 - - Between 1-5 years - 32 - - Greater than 5 years - - - - Total 32 401 - -
Weighted average rate - Finance lease principal commitments 5.22% 5.22%
(c) Credit risk exposure
There is minimal credit risk exposure associated with trade debtors as the transactions underlying the balances are predominantly with other State Government Departments.
The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the carrying amount of those assets net of any provision for impairment as indicated in the Balance Sheet.
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
33 Financial instruments (continued)
(b) Interest rate risk exposure
Total 501,378 530,360 205,529 216,816
Total 32 401 - -
(c) Credit risk exposure
| 171 |Department of Public Works
Annual Report 2005 - 06
Notes to and forming part of the financial statements
Department of Public Parent EntityWorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
33 Financial instruments (continued)
(d) Net fair value
The net fair value is determined as follows:- The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities approximate their carrying value.- The net fair value of other monetary financial assets and financial liabilities is based on market prices where a market exists, or has been determined by discounting expected future cash flows by the current interest rate for financial assets and liabilities with similar risk profiles.
The carrying amounts and estimated net fair values of financial assets and financial liabilities held at balance date are given below:
Financial assets
CashTotal carrying amount 140,625 100,523 49,168 16,182 Net fair value 140,625 100,523 49,168 16,182
ReceivablesTotal carrying amount 178,305 153,601 33,927 49,115 Net fair value 178,305 153,601 33,927 49,115
Financial liabilities
Payables:Total carrying amount 129,788 112,550 30,172 41,959 Net fair value 129,788 112,550 30,172 41,959
QTC borrowings: Total carrying amount 501,378 530,360 205,529 216,816 Net fair value 494,090 537,409 207,604 226,673
Finance lease liabilities: Total carrying amount 32 401 - - Net fair value 32 401 - -
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
33 Financial instruments (continued)
(d) Net fair value
Financial assets
Financial liabilities
| 172 | Section 3
Department of Public Works Financial Reporting
Notes to and forming part of the financial statements
34 Taxation equivalents
Information in respect of income tax expense incurred by those activities of the commercialised business unit subject to the substantive model of the Tax Equivalents Regime (TER):
CommercialisedBusiness Units
2006 2005$'000 $'000
Balance sheet approachMajor components of income tax expense for the year ended 30 June 2006 are:
Income tax expenseCurrent income tax
Current income tax expense 12,192 2,827 Under (over) provision in prior years 1,671 59
Deferred income tax(increase) in deferred tax asset (refer AA below) (2,836) (1,832) (Decrease) increase in deferred tax liability (refer BB below) (9,512) 2,999
Income tax expense reported in Income statement 1,515 4,053
Reconciliation of income tax expense to prima facie tax payable for the year ended 30 June 2006 is as follows:
Operating surplus before income tax of commercialisedbusiness units subject to Tax Equivalents Regime: 2,181 12,054
Indicative tax expense at 30% 919 3,938 Tax effect of amounts which are not deductible (assessable) in calculatingtaxable income:
Tax deductible entertainment 6 13 Tax refund for prior year - - 2004 Research and development concessions (23) (23) Losses not recognised 43 46 Future income tax benefit reversed - 19 Tax benefits previously not recognised (1,101) - Prior year depreciation adjustment (51) 151 Under provision in prior year 1,722 (91)
Income tax expense reported in Income Statement 1,515 4,053
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
34 Taxation equivalents
CommercialisedBusiness Units
2006 2005$'000 $'000
Balance sheet approach
Income tax expense
Income tax expense reported in Income statement 1,515 4,053
Reconciliation of income tax expense to prima facie tax payable for the year ended 30 June 2006 is as follows:
Income tax expense reported in Income Statement 1,515 4,053
| 173 |Department of Public Works
Annual Report 2005 - 06
Notes to and forming part of the financial statements
34 Taxation equivalents (continued)
CommercialisedBusiness Units
2006 2005$'000 $'000
AA - Deferred tax assetThe balance comprises temporary differences attributable to:Amounts recognised in Income statement
Receivables 16 - Inventories 123 9 Property, plant and equipment 2,126 1,616 Other assets - 3 Payables 452 61 Accrued employee benefits 1,364 245 Provision 7,873 6,651 Other liabilities - (43) Attributable to balance as at 1 July 2004 - 1,434 Tax losses carried forward 3,981 2,969
Deferred tax asset taken to account 15,935 12,945
BB - Deferred tax liabilityThe balance comprises temporary differences attributable to:Amounts recognised in Income statement
Receivables 212 167 Property, plant and equipment 1,050 9,955 Other assets 1,506 1,542 Attributable to balance as at 1 July 2004 - 615
Administered expenses Supplies and services 2,443 2,637 2,443 2,637 Grants and subsidies 19,023 12,149 19,023 12,149 Loss on disposal of assets - 812 - 812 Total administered expenses before transfer ofadministered revenue to government 21,466 15,598 21,466 15,598
Net surplus or deficit after extraordinary items - 688 - 688
Administered current assets Cash 1,131 138 1,131 138 Receivables 260 245 260 245 Total administered current assets 1,391 383 1,391 383
Total administered assets 1,391 383 1,391 383
Administered current liabilities Payables 1,391 383 1,391 383 Total administered current liabilities 1,391 383 1,391 383
Total administered liabilities 1,391 383 1,391 383
Administered equity Contributed equity 33,097 33,785 33,097 33,785 Retained surpluses/accumulated deficits (33,097) (33,097) (33,097) (33,097) Asset transferred in from controlled - 812 - 812 Asset transferred out to controlled - (1,500) - (1,500) Total administered equity - - - -
36 Reconciliation of payments from consolidated fund to administered revenueBudgeted output appropriation 18,023 14,349 18,023 14,349 Transfers from/to other headings 3,442 2,816 3,442 2,816 Total administered receipts 21,465 17,165 21,465 17,165
Administered revenue recognised in Note 35 21,466 14,786 21,466 14,786
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Department of Public Parent Entityorks Consolidated
2006 2005 2006 2005$'000 $'000 $'000 $'000
35 dministered transactions and balances
dministered revenues
Total administered revenues 21,466 16,286 21,466 16,286
dministered expenses
Total administered expenses before transfer ofadministered revenue to government 21,466 15,598 21,466 15,598
Net surplus or deficit after extraordinary items - 688 - 688
dministered current assets
Total administered current assets 1,391 383 1,391 383
Total administered assets 1,391 383 1,391 383
dministered current liabilities
Total administered current liabilities 1,391 383 1,391 383
Total administered liabilities 1,391 383 1,391 383
dministered equity
Total administered equity - - - -
36 Reconciliation of payments from consolidated fund to administered revenue
Total administered receipts 21,465 17,165 21,465 17,165
dministered revenue recognised in Note 35 21,466 14,786 21,466 14,786
| 175 |Department of Public Works
Annual Report 2005 - 06
Notes to and forming part of the financial statements
37 Agency transactions
(a) Project services
The Department, through the Project Services business unit acts in an agency capacity for State 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 following transactions and balances relate to agency arrangements in 2005-06.
Project Services2006 2005
$'000 $'000Agency expensesSupplies and services 726,731 550,361 Total agency expenses 726,731 550,361
Agency revenuesReceipts for Goods and Services 726,731 550,361 Total agency revenues 726,731 550,361
Agency liabilitiesPayables 88,015 67,525 Other 4,832 7,349 Total agency liabilities 92,847 74,874
Notes to and forming part of the financial statements
for the year ended 30 June 2006
37 Agency transactions
(a) Project services
Project Services2006 2005
$'000 $'000gency expenses
Total agency expenses 726,731 550,361
gency revenues
Total agency revenues 726,731 550,361
gency assets
Total agency assets 92,847 74,874
gency liabilities
Total agency liabilities 92,847 74,874
| 176 | Section 3
Department of Public Works Financial Reporting
Notes to and forming part of the financial statements
37 Agency transactions (continued)
(b) CITEC
The Department, through the CITEC business unit has commercial arrangements with various government agencies for the provision of disbursement services to third parties. Separate bank accounts are utilised for Brisbane and Canberra clients to facilitate the receiving and disbursement of funds according to client instructions. At any time, funds received from clients may be held within the bank accounts awaiting disbursement. A reconciliation of amounts collected and distributed follows:
CITEC2006 2005
$'000 $'000
Balance at beginning of period 24 33 Collections during the period 3,166 3,537 Distributions according to clients' instructions during the period (3,180) (3,546) Balance at end of year 10 24
Fees received for the provision of these services are included in user charges.
38 Commercialised business unitsAdditional disclosure of significant issues
QFleet
Revaluation of QFleet's motor vehicle fleet
The used vehicle market in Australia has declined considerably over the last two years, with significant reductions in prices, especially for large vehicles.
The market decline has been a results of a number of factors, including:- tariff reductions in 2005 that resulted in an increase in the number of new and competitely priced smaller vehicles imported into Australia;- general improvement in the quality and specifications of small vehicles;- record new car sales buoyed by low interest rates; and- increases in fuel prices over the last two years causing consumers to prefer more fuel efficient vehicles.
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
37 Agency transactions (continued)
(b) CITEC
CITEC2006 2005
$'000 $'000
Balance at end of year 10 24
38 Commercialised business unitsdditional disclosure of significant issues
QFleet
Revaluation of QFleet's motor vehicle fleet
| 177 |Department of Public Works
Annual Report 2005 - 06
Notes to and forming part of the financial statements
38 Commercial business unitsAdditional disclosure of significant issues (continued)
During the 2005-06 financial year QFleet incurred net losses on the sale of its used motor vehicles totalling $17.3M ($2.4 million, 2004-05) compared with a net budgeted loss on sale of $0.35 million ($8.8 million profit, 2004-05).
The losses are a reflection of the extent that estimates of residual values established at the commencement of each vehicle lease have exceeded current market values. In view of the uncertainty attaching to such estimates under current market conditions, the Department has valued the motor vehicles fleet at fair value.
In accordance with Australian Equivalents to International Financial Reporting Standards, the value of the motor vehicle fleet has been written down to match the expected current resale value of the fleet as at 30 June 2006.
The revaluation has reduced the book value at 30 June 2006 of the fleet of vehicles under continuing leases by $27 million.
The Qfleet Contingency Reserve was established to provide for a potential downturn in the used vehicle marketand has previously been maintained at 15% of the net value of the motor vehicle assets. Under the accounting standards the reserve could not be used to offset the value of any decrement. Consequently the balance of the reserve was transferred to Retained Earnings.
Motor vehicles held for sale
QFleet generally sells its ex-lease motor vehicles at public auction and by retail sales at fixed prices. During 2005-06 a number of disposals were also effected through wholesale vehicle sales.
As at 30 June 2006, QFleet had 471 vehicles awaiting sale (written-down value of $8.8M), compared with 2,353vehicles at 30 June 2005 (written-down value of $50.1M).
The Australian Equivalents to International Financial Reporting Standards and Queensland Treasury's Non-current Asset Policies for the Quensland Public Sector require assets classified as held for sale to be measured at the lower of the carrying amount of the assets and the fair value less the costs to sell (net fair value). Accordingly the written down value of the stock of motor vehicles held for sale at 30 June 2006 has been adjusted to net fair value. This measurement has resulted in the write-down of the motor vehicles held for sale by $1.1M.
QBuild and Project Services - GST
QBuild and Project Services are 'grouped' with the Department of Housing for GST purposes. Under this arrangement the Department of Housing pays GST collected on revenue to the Australian Taxation (ATO) and recovers input tax credits from the ATO on behalf of both QBuild and Project Services. Accordingly, the reported consolidated net GST receivable includes amounts related to the net GST receivable/payable to/from the Department of Housing in respect of QBuild and Project Services.
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
38 Commercial business unitsdditional disclosure of significant issues (continued)
Motor vehicles held for sale
QBuild and Project Services - GST
| 178 | Section 3
Department of Public Works Financial Reporting
Notes to and forming part of the financial statements
39 Reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2004
Department of Public Works Parent EntityConsolidated
Total liabilities 720,053 6,028 726,081 299,158 - 299,158
Net assets 1,095,563 14,339 1,109,902 960,286 (61) 960,225
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
39 Reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2004
Department of Public Works Parent EntityConsolidated
Total current assets 243,713 54,915 298,628 49,645 26,451 76,096
Non-current assets
Total non-current assets 1,571,903 (34,548) 1,537,355 1,209,799 (26,512) 1,183,287
Total assets 1,815,616 20,367 1,835,983 1,259,444 (61) 1,259,383
Current liabilities
Total current liabilities 236,838 331 237,169 90,839 - 90,839
Non-current liabilities
Total non-current liabilities 483,215 5,697 488,912 208,319 - 208,319
Total liabilities 720,053 6,028 726,081 299,158 - 299,158
Net assets 1,095,563 14,339 1,109,902 960,286 (61) 960,225
| 179 |Department of Public Works
Annual Report 2005 - 06
Notes to and forming part of the financial statements
39 Reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2004 (continued)
Department of Public Works Parent EntityConsolidated
40 Reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005
Department of Public Works Parent EntityConsolidated
Total non-current assets 1,803,739 (53,280) 1,750,459 1,400,220 (17,205) 1,383,015
Total assets 2,091,553 7,407 2,098,960 1,468,565 (1,012) 1,467,553
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
39 Reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2004 (continued)
Department of Public Works Parent EntityConsolidated
Total equity 1,095,563 14,340 1,109,903 960,286 (61) 960,225
40 Reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005
Department of Public Works Parent EntityConsolidated
Total current assets 287,814 60,687 348,501 68,345 16,193 84,538
Non-current assets
Total non-current assets 1,803,739 (53,280) 1,750,459 1,400,220 (17,205) 1,383,015
Total assets 2,091,553 7,407 2,098,960 1,468,565 (1,012) 1,467,553
| 180 | Section 3
Department of Public Works Financial Reporting
Notes to and forming part of the financial statements
40 Reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005 (continued)
Department of Public Works Parent EntityConsolidated
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
40 Reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005 (continued)
Department of Public Works Parent EntityConsolidated
Total current liabilities 265,401 (3,198) 262,203 99,098 (1,120) 97,978
Non-current liabilities
Total non-current liabilities 493,224 4,967 498,191 173,800 1,118 174,918
Total liabilities 758,625 1,769 760,394 272,898 (2) 272,896
Net assets 1,332,928 5,638 1,338,566 1,195,667 (1,010) 1,194,657
Equity
Total equity 1,332,928 5,637 1,338,565 1,195,667 (1,010) 1,194,657
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Annual Report 2005 - 06
Notes to and forming part of the financial statements
41 Reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005
Department of Public Works Parent EntityConsolidated
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
41 Reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005
Department of Public Works Parent EntityConsolidated
Notes to and forming part of the financial statements
40 Reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005 (continued)
Department of Public Works Parent EntityConsolidated
Total current liabilities 265,401 (3,198) 262,203 99,098 (1,120) 97,978
Non-current liabilities
Total non-current liabilities 493,224 4,967 498,191 173,800 1,118 174,918
Total liabilities 758,625 1,769 760,394 272,898 (2) 272,896
Net assets 1,332,928 5,638 1,338,566 1,195,667 (1,010) 1,194,657
Equity
Total equity 1,332,928 5,637 1,338,565 1,195,667 (1,010) 1,194,657
| 182 | Section 3
Department of Public Works Financial Reporting
Notes to and forming part of the financial statements
Notes to reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2004
53Adjustment to current receivables 53
(37)328
Adjustment to current inventories 291
(372) Adjustment to current assets other (372)
54,943Adjustment to non-current assets classified as sale 54,943
7,982Adjustment to non current receivables 7,982
1345,319
Adjustment to current tax assets 5,453
(327)Adjustment to intangible assets (327)
(54,943)(8,034)14,904
45Adjustment to property, plant and equipment (48,028)
372Adjustment to non-current assets other 372
6,3701,538
Adjustment to current payables 7,908
26,876Adjustment to current accrued employee benefits 26,876
(26,368)(6,370)
328(2,082)
Adjustment to current provisions (34,492)
40Adjustment to current tax liabilities 40
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Notes to reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2004
39.1 Initial recognition of a finance lease receivableAdjustment to current receivables 53
39.2 Restatement of the inventory balance by a business unitEstablishment of a provision for obsolete stockAdjustment to current inventories 291
39.3 Current prepayment reclassified as non-current prepaymentAdjustment to current assets other (372)
39.4 Initial recognition of non-current assets classified as held for saleAdjustment to non-current assets classified as salee 54,943
39.5 Initial recognition of a finance lease receivableAdjustment to non current receivabless 7,982
39.6 Tax effect of the increase in the recognition threadhold for assetsAdjustment to deferred tax assets due to temporary differencesAdjustment to current tax assets 5,453
39.7 Write-off of previously capitalised intangibles below new recognition threadholdAdjustment to intangible assets (327)
39.8 Transfer to non-current assets classified as held for saleDe-recognition of asset through recognition of lease receivableValuation of major plant and equipmentDe-recognition of assets below new recognition thresholdAdjustment to property, plant and equipmentt (48,028)
39.9 Current prepayment reclassified as non-current prepaymentAdjustment to non-current assets otherr 372
39.10 Dividends are no longer a provision, but are now a payable Reclassification of payablesAdjustment to current payables 7,908
39.11 Employee benefits no longer a provision, but are now an accrual Adjustment to current accrued employee benefitss 26,876
39.12 Employee benefits no longer a provision, but are now an accrual Dividends are no longer a provision, but are now a payable Establishment of a provision for obsolete stockReclassification of other provisions to payablesAdjustment to current provisionss (34,492)
39.13 Adjustment to deferred tax liabilities due to temporary differencesAdjustment to current tax liabilities 40
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Annual Report 2005 - 06
Notes to and forming part of the financial statements
Notes to reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2004 (continued)
111Adjustment to non-current accrued employee benefits 111
(111)Adjustment to non-current provisions (111)
5,421
276Adjustment to non-current tax liabilities 5,697
128(61)
3,839Adjustment to retained surplus 3,906
10,434Adjustment to asset revaluation reserve 10,434
Notes to reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005
554
(2,989)Adjustment to current receivables (2,930)
(2,063)Adjustment to current tax assets (2,063)
(98)(435)
Adjustment to current assets other (532)
66,212Adjustment to non-current assets classified as sale 66,212
7,925Adjustment to non-current receivables 7,925
2892,0638,880
Adjustment to non-current tax assets 11,232
(67)Adjustment to intangible assets (67)
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Notes to reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2004 (continued)
39.14 Employee benefits no longer a provision, but are now an accrual Adjustment to non-current accrued employee benefitss 111
39.15 Employee benefits no longer a provision, but are now an accrual Adjustment to non-current provisionss (111)
39.16 Adjustment to deferred tax liability through application of AASB 112 on major plant and equipmentAdjustment to deferred tax liability due to temporary differencesAdjustment to non-current tax liabilitiess 5,697
39.17 Adjustment of previously capitalised intangibles and property, plant and equipment below new recognition thresholdDecrease in revenue from recognition of a finance lease receivableAdjustment to deferred tax liability through application of AASB 112Adjustment to retained surplus 3,906
39.18 Valuation of major plant and equipmentAdjustment to asset revaluation reservee 10,434
Notes to reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005
40.1 Initial recognition of a finance lease receivableAdjustment to receivableTransfer of a tax receivable to deferred tax assetsAdjustment to current receivables (2,930)
40.2 Reclassified to non current tax assetsAdjustment to current tax assets (2,063)
40.3 Intangibles recalssified as portable and attractive assets and expensedCurrent prepayment reclassified as non-current prepaymentAdjustment to current assets other (532)
40.4 Initial recognition of non-current assets classified as held for saleAdjustment to non-current assets classified as salee 66,212
40.5 Initial recognition of a finance lease receivableAdjustment to non-current receivabless 7,925
40.6 Tax effect from a change in the asset recognition thresholdReclassified from current tax assetsAdjustment to deferred tax assets due to temporary differences Adjustment to non-current tax assetss 11,232
40.7 Net write-off of previously capitalised intangibles below new recognition thresholdAdjustment to intangible assets (67)
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Department of Public Works Financial Reporting
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Notes to reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005 (continued)
40.8 Transfer to non-current assets classified as held for saleDe-recognition of asset through recognition of lease receivableDe-recognition of assets below new recognition thresholdValuation of major plant and equipmentIntra business unit elimination adjustment due to new asset thresholdsAdjustment to property, plant and equipmentt (72,805)
40.9 Current prepayment reclassified as non-current prepaymentAdjustment to non-current other 435
40.10 Dividends are no longer a provision, but are now a payable Reclassification of payablesAdjustment to current payables (541)
40.11 Employee benefits no longer a provision, but are now an accrual Adjustment to current accrued employee benefitss 37,073
40.12 Employee benefits no longer a provision, but are now an accrual Dividends are no longer a provision, but are now a payable Reclassification of payables to provisionsAdjustment to current provisionss (39,704)
40.13 Adjustment to deferred tax liabilities due to temporary differences and change in asset thresholdsAdjustment to current tax liabilities (26)
40.14 Employee benefits no longer a provision, but are now an accrual Adjustment to non-current accrued employee benefitss 4,362
40.15 Employee benefits no longer a provision, but are now an accrual Adjustment to non-current provisionss (1,187)
40.16 Adjustment to deferred tax liability due to temporary differences and change in asset thresholdsAdjustment to deferred tax liability due to correction of prior year tax loss overstatementAdjustment to non-current tax liabilitiess 1,792
40.17 Decrease in revenue from recognition of a finance lease receivableIncrease in depreciation due to new asset recognition thresholdWrite-off of previously capitalised assets below new recognition thresholdChange in lease incentive treatmentIncrease in loss on sale of assets due to de-recognition of assets below new recognition thresholdAdjustment through application of AASB 112Goodwill not amortised due to new recognition requirementChange in eliminations due to new asset thresholds Adjustment to retained surplus 4,359
Notes to and forming part of the financial statements
Notes to reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005 (continued)
(66,212)(8,960)
(932)2,344
955Adjustment to property, plant and equipment (72,805)
435Adjustment to non-current other 435
2,656(3,197)
Adjustment to current payables (541)
37,073Adjustment to current accrued employee benefits 37,073
(35,784)(4,072)
152Adjustment to current provisions (39,704)
(26)Adjustment to current tax liabilities (26)
4,362Adjustment to non-current accrued employee benefits 4,362
(1,187)Adjustment to non-current provisions (1,187)
161
1,631Adjustment to non-current tax liabilities 1,792
(114)(197)
(1,144)(13)
(9)4,755
122959
Adjustment to retained surplus 4,359
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Annual Report 2005 - 06
Notes to and forming part of the financial statements
Notes to reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005 (continued)
(1,066)2,344
Adjustment to asset revaluation reserve 1,278
Notes to reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005
(55)Adjustment to user charges (55)
(103)1,535
521Adjustment to supplies and services 1,953
(122)565
Adjustment to depreciation and amortisation 443
(521)Adjustment to expenses other (521)
(5)Adjustment to net loss on disposal of property, plant and equipment (5)
(301)(633)
(296)Adjustment to income tax expense (1,230)
Statement of Cash Flows
Notes to and forming part of the financial statementsfor the year ended 30 June 2006
Notes to reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005 (continued)
40.18 Write back of revaluation upon de-recognition of an asset with establishment of a finance lease receivableValuation of major plant and equipmentAdjustment to asset revaluation reservee 1,278
Notes to reconciliation of adjustment from previous GAAP to Australian Equivalents toInternational Financial Reporting Standards (AEIFRS) - as at 1 July 2005
41.1 Decrease in revenue from recognition of a finance lease receivableAdjustment to user charges (55)
41.2 Increase in surplus due to reduced lease incentive Write-off of previously capitalised assets below new recognition thresholdTransfer from expenses other for comparative purposesAdjustment to supplies and servicess 1,953
41.3 Goodwill not amortised due to new recognition requirementIncrease in depreciation due to new asset recognition thresholdAdjustment to depreciation and amortisationn 443
41.4 Transfer to supplies and services for comparative purposesAdjustment to expenses other (521)
41.5 Increase in net loss on disposal of assets due to new asset thresholds Adjustment to net loss on disposal of property, plant and equipmentt (5)
41.6 Tax effect from a change in the asset recognition thresholdTax effect from a change in employee benefits and doubtful debt provision.Correction of prior year tax expense and movements in tax accounts from application of AASB 112Adjustment to income tax expensee (1,230)
Statement of Cash Flows
No material adjustments were required to the Statement of cash flows as a result of transition to Australian Equivalents of IFRS.
| 186 | Section 3
Department of Public Works Financial Reporting
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Annual Report 2005 - 06
| 188 | Section 3
CITEC Financial Reporting
| 189 |Department of Public Works
Annual Report 2005 - 06
CITEC
Financial Reporting
| 190 | Section 3
CITEC Financial Reporting
table of Contents
Income Statement 191 Balance Sheet 192 Statement of Changes in Equity 193 Statement of Cash Flows 194
Notes to the Financial Statements
Objectives and principle activities of CITEC 195 Statement of signifi cant accounting policies 195 User charges 201 Other revenue 201 Gain on sale of property, plant and equipment 201 Employee expenses 201 Supplies and services 201 Depreciation and amortisation 201 Finance/borrowing costs 202 Other expenses 202 Cash assets 202 Receivables 203 Inventories 203 Prepayments 203 Other fi nancial assets 203 Deferred tax assets 203 Intangibles 204 Property, plant and equipment 205 Payables 206 Other fi nancial liabilities 206 Accrued employee benefi ts 207 Tax liabilities 207 Unearned revenue 207 Other liabilities 207 Provisions 208 Reconciliation of cash 208 Reconciliation of operating result to net cash provided by/(used in) operating activities 209 Commitments for expenditure 210 Contingencies 211 Controlled entities 211 Financial instruments 211 Agency transactions 214 Board and committee remuneration 214 Directors’ remuneration 215 Related party transactions 215 Segment reporting 215 Taxation 215 Reconciliation of adjustments from previous GAAP to AEIFRS as at 1 July 2004 218 Reconciliation of adjustments from previous GAAP to AEIFRS as at 30 June 2005 221 Certifi cate of CITEC 225 Independent Audit Report 226
This report covers CITEC as an individual entity as well as the economic entity which includes the consolidated fi nancial statements of CSI Holdings Pty Ltd and Aurion Corporation Pty Ltd.
CITEC is a fully-commercialised business unit of the Queensland Government and is gazetted as a Signifi cant Business Activity (SBA) under the Queensland Competition Authority Act 1997.
CITEC provides information technology services to other public sector agencies and private sector businesses on a fully-commercial basis.
CITEC is controlled by the State of Queensland which is the ultimate parent entity.
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Annual Report 2005 - 06
Economic Entity Parent Entity
Notes 2006 2005 2006 2005$ $ $ $
IncomeRevenue
User charges 3 125,676,087 132,363,878 118,690,101 125,994,721 Other 4 1,396,019 1,858,430 1,377,426 1,890,106
Gains Gain on sale of property, plant
and equipment 5 1,914 2,071 1,914 2,071
Total income 127,074,020 134,224,379 120,069,441 127,886,898
Retained surpluses Opening balance 14,394,211 13,783,473 13,290,280 12,877,469 Operating result for the year (826,878) 805,456 (1,115,128) 607,529 Dividends paid or declared (10,405) (194,718) (10,405) (194,718)
Net increase/(decrease) in cash held 1,050,346 (1,628,405) (200,180) (1,498,040)
Cash at beginning of the financial year 9,111,489 10,739,894 5,598,054 7,096,094Cash at end of the financial year 26 10,161,835 9,111,489 5,397,874 5,598,054
The accompanying notes form part of these statements.
Statement of Cash Flows for the year ended 30 June 2006
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Annual Report 2005 - 06
Notes to the Financial Statements2005–2006
1. Objectives and principle activities of CITEC
CITEC is a fully commercialised business unit of the Queensland Government, operating under the Government’s Commercialisation Policy, 1994.
The key objectives of CITEC are to:
– Ensure the retention of key infrastructure, knowledge and capabilities for the future delivery of IT services to Queensland;
– Provide the capacity to deliver continuity of service at a whole-of-government level for functions that are strategically important or critical to the operation of Government or where there are over-riding considerations concerning security and/or integrity of information;
– Contribute to employment opportunities and the development of IT skills in Queensland;
– Act as a catalyst for the local Communication and Information industry through business arrangements involving the local operations of Communication and Information businesses; and
– Provide acceptable commercial returns to the Crown as owner of CITEC.
2. Statement of significant accounting policies
The financial report is a general purpose financial report that has been prepared in accordance with Accounting Standards, Urgent Issues Group Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board, the Corporations Act 2001 and the Treasurer’s Minimum Reporting Requirements. The financial report of CITEC and the controlled entities and CITEC as an individual entity comply with all Australian equivalents to International Financial Reporting Standards in their entirety, except for:
– AASB 114: Segment Reporting
– AASB 124: Related Party Disclosures
The following is a summary of the material accounting policies adopted by the economic entity in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.
Basis of preparation
First-time Adoption of Australian Equivalents to International Financial Reporting Standards
CITEC and the controlled entities, and CITEC as an individual parent entity have prepared financial statements in accordance with the Australian equivalents to International Financial Reporting Standards (AEIFRS) from 1 July 2005 with 1 July 2004 as the date of transition.
In accordance with the requirements of AASB 1: First-time Adoption of Australian Equivalents to International Financial Reporting Standards, adjustments to the parent entity and economic entity accounts resulting from the introduction of AEIFRS have been applied retrospectively to 2005 comparative figures excluding cases where optional exemptions available under AASB 1 have been applied. These consolidated accounts are the first financial statements of CITEC to be prepared in accordance with AEIFRS.
The accounting policies set out below have been consistently applied to all years presented.
Reconciliations of the transition from previous Australian GAAP to AEIFRS have been included in Note 38 and 39 to this report.
Reporting basis and conventions
The financial report has been prepared on an accruals basis and is based on historical cost.
Accounting policies
(a) Principles of consolidationA controlled entity is any entity CITEC has the power to control the financial and operating policies of so as to obtain benefits from its activities.
The consolidated financial statements include the value of all assets, liabilities, equity, revenues and expenses of CITEC. Details of CITEC’s controlled entities have been disclosed in Note 30.
CITEC as an economic entity consists of the parent entity together with CSI Holdings Pty Ltd and Aurion Corporation Pty Ltd as controlled entities. In order to provide enhanced disclosure, CITEC has adopted the principles outlined in Australian Accounting Standard AASB 127: Consolidated and Separate Financial Statements. This approach is considered appropriate as it reflects the relationship between CITEC’s core business activities and those of its controlled entities. In the process of reporting on CITEC as a single economic entity, all transactions and balances with entities controlled by CITEC have been eliminated, where material.
Additional disclosures of significant issues pertaining to the operations of the CSI Holdings Pty Ltd and Aurion Corporation Pty Ltd is provided at Note 30.
| 196 | Section 3
CITEC Financial Reporting
Notes to the Financial Statements2005–2006
(b) Agency transactions and balancesCITEC has commercial arrangements with various state and federal government agencies to perform certain agency transactions on their behalf.
As CITEC acts only in a custodial role in respect of these transactions and balances, they are not recognised in the financial statements, but are disclosed in Note 32. Applicable audit arrangements also are shown.
(c) Cash assetsFor the purposes of the Balance Sheet and Statement of Cash Flows, cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.
(d) Acquisitions of assetsActual cost is used for the initial recording of all non-current 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. However, any training costs are expensed as incurred.
Where assets are received free of charge from another Queensland Government Department (whether as a result of a machinery-of-government 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 Department, are recognised at their fair value at date of acquisition in accordance with AASB 116: Property, Plant and Equipment.
(e) Property, plant and equipmentProperty, plant and equipment assets are measured on the cost basis. All items of property, plant and equipment with a cost or other value in excess of $1,000 are recognised for financial reporting purposes in the year of acquisition. All other such items with a cost, or other value, less than $1,000 are expensed in the year of acquisition.
Plant and equipment
Plant and equipment are measured on the cost basis less depreciation and impairment losses.
The carrying amount of plant and equipment is reviewed annually to ensure it is not in excess of the recoverable amount of these assets. The recoverable amount is assessed on the basis of expected net cash flows which will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.
The cost of fixed assets constructed within the economic entity includes the cost of materials, direct labour and an appropriate proportion of fixed and variable overheads.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the economic entity and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the Income Statement during the financial period in which they are incurred.
Depreciation
All items of property, plant and equipment are depreciated on a straight-line basis so as to allocate the net cost of each asset, less its estimated residual value, progressively over its estimated useful life to CITEC. The reducing balance method is applied to assets in the controlled entity, Aurion Corporation Pty Ltd.
Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The unexpired period of leases includes any option period where exercise of the option is probable.
Assets under Construction (work in progress) are not depreciated until they reach service delivery capacity.
Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate and are depreciated accordingly.
Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to CITEC.
Plant and equipment subject to a finance lease is amortised on a straight-line basis over the term of the lease, or, where it is likely that CITEC will obtain ownership of the asset, over the expected useful life of the asset to CITEC.
Items comprising CITEC’s technical library are expensed on acquisition.
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Annual Report 2005 - 06
Notes to the Financial Statements2005–2006
The depreciable amounts of these assets are depreciated over their effective lives as follows:
Class of fixed asset Depreciation period
Leasehold improvements the lease term
Computer equipment 2 to 10 years
Plant and equipment 4 to 6 years
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the Income Statement.
(f) LeasesLeases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, that are transferred to entities in the economic entity are classified as finance leases.
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period so as to achieve a constant rate of interest on the remaining balance of the liability.
Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the economic entity will obtain ownership of the asset or over the term of the lease.
Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred on a straight-line basis over the term of the lease.
Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term between rental expense and a reduction of the liability.
(g) Intangibles Goodwill
Goodwill on consolidation is initially recorded at the amount by which the purchase price for a business or for an ownership interest in controlled entities exceeds the fair value attributed to its net assets at date of acquisition. Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Internal use software
All items of internal use software with a cost or other value in excess of $1 are recognised for financial reporting purposes in the year of acquisition. Assets with a value less than $10,000 are fully amortised at the time of acquisition. The residual value is zero for all CITEC’s intangible assets.
It has been determined that there is not an active market for any of CITEC’s internal use software assets. As such, the assets are recognised and carried at cost less accumulated amortisation and accumulated impairment loss.
Expenditure on research activities relating to internally-generated internal use software assets is recognised as an expense in the period in which it is incurred.
Internal use software with a cost greater than $10,000 is amortised on a straight-line basis over the period of expected benefit to CITEC. The period of amortisation is determined on an individual case basis between 2.5 and 7 years.
Class of fixed asset Depreciation period
Internal use software 2.5 to 7 years
Leased intangibles 3 years
| 198 | Section 3
CITEC Financial Reporting
Notes to the Financial Statements2005–2006
(h) Employee benefits Wages, salaries, annual leave and sick leave
Wages, salaries, annual leave and sick leave due but unpaid at reporting date are recognised in the Balance Sheet at the remuneration rates expected to apply at the time of settlement and include related on-costs such as payroll tax, WorkCover premiums, long service leave levies and employer superannuation contributions.
For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values. For those entitlements not expected to be paid within 12 months, the liabilities are recognised at their present values, calculated using yields on Fixed Rate Commonwealth Government bonds of similar maturity.
Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to recur in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised.
As sick leave is non-vesting, an expense is recognised for this leave as it is taken.
Long service leave
Under the Queensland Government’s long service leave scheme, a levy is made on the CITEC parent entity to cover this cost. Amounts paid to employees for long service leave are claimed from the scheme as and when leave is taken.
No provision for long service leave is recognised in the parent entity financial statements, the liability being held on a whole-of-government basis and reported in the financial report prepared pursuant to AAS 31: Financial Reporting by Governments.
Superannuation
Employer superannuation contributions for the parent entity are paid to QSuper, the superannuation plan for Queensland Government employees, at rates determined by the State Actuary.
No liability is recognised for accruing superannuation benefits in these financial statements as this liability is held on a whole-of-Government basis and reported in the financial report prepared pursuant to AAS 31: Financial Reporting by Governments.
Contributions to defined contribution superannuation by Aurion Corporation Pty Ltd are expensed when incurred.
(i) RevenueRevenue from the sale of goods is recognised upon the delivery of goods to customers.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
Dividend revenue is recognised when the right to receive a dividend has been established.
Revenue from the rendering of a service is recognised upon the delivery of the service to the customer.
Unearned revenue represents the value of those goods and services invoiced but not yet delivered to the customer.
All revenue is stated net of the amount of goods and services tax (GST).
(j) Grants and contributionsGrants, contributions, donations and gifts that are non-reciprocal in nature are recognised as revenue in the year in which CITEC obtains control over them.
Contributed assets are recognised at their fair values.
(k) Income taxCITEC pays an income tax equivalent in accordance with the requirements of the National Tax Equivalents Regime.
CITEC and its economic entities have not been consolidated for tax purposes under the Tax Consolidation System.
The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using tax rates that have been enacted or are substantially enacted by the balance sheet date.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.
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Annual Report 2005 - 06
Notes to the Financial Statements2005–2006
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is recognised as an expense or income in the Income S tatement except where it relates to items that may be credited or debited directly to equity, in which case the deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.
(l) Goods and services tax (GST)Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the Balance Sheet are shown inclusive of GST.
Cash flows are presented in the Cash Flow Statement on a gross basis, except for the GST component of investing and financing activities, which is recoverable from, or payable to, the taxation authority and are disclosed as operating cash flows.
(m) Financial instruments Financial assets
Investments in equity instruments do not have a quoted market price in an active market and are carried at cost.
Investments in subsidiaries are measured at cost in the parent entity’s separate financial statements.
Trade debtors are recognised at the nominal amounts due at the time of sale or service delivery. Settlement of these amounts is required within 30 days from invoice date.
The collectability of receivables is assessed periodically 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 CITEC and are recognised at their assessed values. Terms are a maximum of three months, no interest is charged and no security is obtained.
Loans are recorded at an amount equal to the net proceeds received and subsequently at amortised cost.
The economic entity does not enter into transactions for speculative purposes, nor for hedging.
Financial liabilities
Interest bearing liabilities are recognised at book value as the amount contractually owing.
All borrowing costs are accounted for on an accrual basis in the Income Statement using the effective interest method, and are added to the carrying amount of the borrowing to the extent they are not settled in the period in which they arise. No borrowing costs are capitalised.
Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are settled on terms agreed with the vendor.
CITEC recognises as payable those dividends declared on or before the reporting date. The entire amount remaining undistributed at the reporting date is recognised.
(n) InventoriesInventories including third party re-sales 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.
(o) Impairment of assetsAll non-current physical and intangible assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, CITEC determines the asset’s recoverable amount. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss.
The asset’s recoverable amount is determined as the higher of the asset’s fair value less cost to sell and depreciated replacement cost.
An impairment loss is recognised immediately in the Income Statement.
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CITEC Financial Reporting
Notes to the Financial Statements2005–2006
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income.
(p) ProvisionsProvisions are recorded when CITEC has a present obligation, either legal or constructive, as a result of a past event. They are recognised at the amount expected at reporting date to settle the obligation in a future period, but where timing and/or amount required to settle the obligation is uncertain at reporting date, discounted to the present value using the pre-tax discount rate.
(q) InsuranceCITEC’s non-current physical assets and other risks are insured. In addition, CITEC pays premiums to cover its workers’ compensation obligations for employee compensation.
(r) Contributed equityNon-reciprocal transfers of assets and liabilities between wholly-owned Queensland State Public Sector entities as a result of machinery-of-government changes are adjusted to ‘Contributed Equity’ in accordance with UIG Abstract 1038: Contributions by Owners Made to Wholly Owned Public Sector Entities. Appropriation for equity adjustments are similarly designated.
(s) Borrowing costsFinance costs are recognised as an expense in the period in which they are incurred. Finance costs include:
• Interest on bank overdrafts and short-term and long-term borrowings;
• Ancillary administration charges;
• Finance lease charges; and
• Performance dividend on Queensland Treasury Corporation borrowings.
(t) Judgements and assumptionsCITEC has made no judgements or assessments which may cause material adjustments to the carrying amounts of assets and liabilities within the next reporting period.
(u) Issuance of financial statementsThe financial statements are authorised for issue by the Director-General and General Manager – Corporate Services at the date of signing the Management Certificate.
(v) Rounding and comparativesAmounts included in the financial statements have been rounded to the nearest $1. Comparative information has been restated where necessary to be consistent with disclosures for the current reporting period.
(w) Reissued accounting standardsThe following accounting standards have been revised by the AASB but have not been adopted by the economic entity as they are not effective until the dates noted below:
• AASB 2005-4, AASB2005-5, AASB 2005-6, AASB 2005-9 effective for annual reporting periods beginning on or after 1 January 2006.
• AASB 2006-1 effective for annual reporting periods ending on or after 31 December 2006
• AASB 7 and AASB 2005-10 effective for annual reporting periods beginning on or after 1 January 2007.
Application of the above accounting standards, if applicable, is not expected to have a significant impact, if any, on the economic entity’s financial position and results in the period of application. However, a number of the above standards may contain disclosure requirements that are in addition to, or differ to, current disclosure requirements.
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Annual Report 2005 - 06
Notes to the Financial Statements2005–2006
Economic Entity Parent Entity
2006 2005 2006 2005$ $ $ $
3 User chargesSales of goods and services 125,676,087 132,363,878 118,690,101 125,994,721Total 125,676,087 132,363,878 118,690,101 125,994,721
5 Gain on sale of property, plant and equipmentComputer equipment 1,277 854 1,277 854Miscellaneous plant 637 1,217 637 1,217Total 1,914 2,071 1,914 2,071
6 Employee expensesWages and salaries 37,105,397 37,234,087 33,905,512 34,401,486Employer superannuation contributions 4,100,253 4,148,557 3,804,621 3,872,562Long service leave levy 556,005 470,103 556,005 470,103Long service leave 49,484 22,966 - -Workers’ compensation 210,481 92,023 197,468 80,922Voluntary early retirements payments - 1,094,446 - 1,094,446Other 2,176,386 1,489,659 1,549,436 1,003,141Total 44,198,006 44,551,841 40,013,042 40,922,660
The number of employees including both full-time employees and part-time employees measured on a full-time equivalent basis is:
Number of employees 557 557 517 519
7 Supplies and servicesSupplies and services – general 59,878,132 62,643,095 58,783,732 61,838,001Contractors 5,685,523 6,370,216 5,645,110 6,191,215Consultants 356,067 1,448,646 260,525 1,179,930Travel 570,092 755,360 360,388 497,940Total 66,489,814 71,217,317 65,049,755 69,707,086
The approximate (increase)/decrease in depreciation and amortisation expense, as a result of the re-assessment of estimated useful lives of depreciable assets during the reporting period, was:
CITEC does not capitalise finance/borrowing costs.
10 Other expensesInsurance premiums – other 387,122 312,745 325,619 250,314External audit fees 138,000 90,410 114,000 67,760Bad and doubtful debts 90,799 1,486 90,799 1,486Operating lease rentals – minimum lease payments 9,165,206 9,078,252 9,016,682 8,941,591Bank charges/merchant fees 277,666 341,363 275,148 336,165Losses from disposal of property, plant and equipment 59,997 165,442 59,997 154,915Special payments:
Performance penalties 66,763 87,550 66,763 87,550 Fees and other penalties 3,264 1,265 - -
Other 279,118 330,599 266,467 312,488Total 10,467,935 10,409,112 10,215,475 10,152,269
Loss on disposal of property, plant and equipment Proceeds from sale (25) (1,868) (25) (750) Less: Written down value of assets disposed of 60,022 167,310 60,022 155,665
Total 59,997 165,442 59,997 154,915
Total external audit fees estimate: 138,000 116,300 114,000 96,650
There are no non-audit services included in this amount.
11 Cash assetsImprest accounts 1,750 1,774 1,150 1,174Cash at bank and on hand 10,254,107 9,233,691 5,396,724 5,596,880Total 10,255,857 9,235,465 5,397,874 5,598,054
Cash deposited with Queensland Treasury Corporation, Commonwealth Bank of Australia and the National Australia Bank earned interest at rates of 5.97%, 4.59% and 5.05% respectively (2005: 5.76%, 4.85% and 4.96%).
Intangibles in course of construction Opening balance 120,044 1,759,773 120,044 1,759,773 Acquisitions through internal development 621,031 2,377,051 621,031 2,377,051 Transfers between classes (380,616) (4,016,780) (380,616) (4,016,780) Closing balance 360,459 120,044 360,459 120,044
Total 8,754,537 10,233,511 6,575,212 8,054,769
Goodwill is not amortised. Amortisation of the other intangible assets is included in the line item ‘Depreciation and amortisation’ in the Income Statement. These other intangible assets have finite lives and are amortised on a straight-line basis (see Note 1g).
No intangible assets have been classified as held for sale or form part of a disposal group held for sale.
Goodwill arising on consolidation has been allocated to the singular cash generating unit, being Aurion Corporation.
The recoverable amount of goodwill arising on consolidation has been estimated using the value in use method. The estimated net cash inflows used to calculate value in use is based upon historical information. The projected cash flows used to estimate value in use is over a 3 year period only, in consideration of the inherent risk in estimating cash inflows over a longer term. Management have not included a growth rate in extrapolating future cash inflows. The discount rate applied to cash flow projections is 10%. The value in use estimate exceeds the carrying amount of the goodwill on consolidation by more than 10%.
| 205 |Department of Public Works
Annual Report 2005 - 06
Notes to the Financial Statements2005–2006
Economic Entity Parent Entity
2006 2005 2006 2005$ $ $ $
18 Property, plant and equipmentLeasehold improvements
Property, plant and equipment in the course of construction Opening balance 1,209 1,286,703 1,209 1,286,703 Acquisitions - 9,989 - 9,989 Transfers between classes - (1,295,483) - (1,295,483) Closing balance 1,209 1,209 1,209 1,209
Total 10,618,795 10,783,931 10,466,299 10,666,307
CITEC has plant and equipment and computer equipment with an original cost of $381,368 and $7,847,405 respectively and a written down value of nil which are still being used in the provision of services. These assets were fully depreciated prior to application by CITEC of high value and medium value estimated useful life review processes.
Leasehold improvements, plant and equipment, computer equipment and property, plant and equipment in course of construction are valued at cost in accordance with Queensland Treasury Non-Current Asset Accounting Policies for the Queensland Public Sector.
Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default.
No assets have been pledged as security for any liabilities.
All borrowings are in A$ denominated amounts and are carried at amortised cost, interest being expensed as it is accrued. No interest has been capitalised during the current or comparative reporting period. Repayment dates vary between 16 August 2006 and 31 March 2009.
Principal and interest repayments are made quarterly in arrears at rates ranging from 5.59% to 5.70%.
The market value of CITEC’s borrowings at 30 June, as notified by Queensland Treasury Corporation, was $4,929,660 (2005: $5,923,714).
It is the intention of CITEC to hold its borrowings for their full term, no adjustment provision is made in these accounts.
Interest in finance leases is recognised as an expense as it accrues. No interest has been capitalised during the current or comparative reporting period.
The average lease term is 3 years and implicit rate is 5.22% (2005: 5.22%).
CITEC has a working capital facility with the Queensland Treasury Corporation to the limit of $3,000,000. This facility is drawn upon and repaid according to the daily cash requirements of CITEC. At 30 June this facility has a balance of $nil (2005: $nil) and is available for use in the next reporting period. During the reporting period this facility has been drawn upon and repaid in full.
CSI Holdings Pty Ltd has an at call overdraft facility with the Commonwealth Bank of Australia. As at 30 June this facility has a balance of $94,022 (2005: $123,976). Interest is recognised as an expense as it accrues. The current overdraft interest rate is 8.59% (2005: 8.60%).
| 207 |Department of Public Works
Annual Report 2005 - 06
Notes to the Financial Statements2005–2006
Economic Entity Parent Entity
2006 2005 2006 2005$ $ $ $
21 Accrued employee benefitsCurrent
Recreation leave 3,528,650 3,410,687 3,328,630 3,206,773 Long service leave payable - 125,822 - 125,822 Wages outstanding 652,299 502,693 652,299 502,693 Other 9,792 11,678 9,792 11,678
Total 4,190,741 4,050,880 3,990,721 3,846,966
Non-current Employee benefits – long service leave 168,671 119,187 - - Recreation leave 207,059 185,191 207,059 185,191
Total 375,730 304,378 207,059 185,191
During 2006, some employees were transferred to and from other departments. The resultant decrease of $92,468 (2005: $61,220) to annual leave has been recognised as an adjustment to contributed equity.
22 Tax liabilitiesCurrent
Provision for income tax expense 192,120 685,900 - 409,069Total 192,120 685,900 - 409,069
Opening balance - - - - Additional provision recognised 178,930 320,422 - - Reduction in provision as a result of payments (178,930) (320,422) - - Closing balance - - - -
Annual leave oncosts Opening balance 160,869 173,119 160,869 173,119 Additional provision recognised 158,902 160,426 158,902 160,426 Reduction in provision as a result of payments (152,085) (172,676) (152,085) (172,676) Closing balance 167,686 160,869 167,686 160,869
26 Reconciliation of cash Cash at the end of the financial year as shown in the
Statement of Cash Flows is reconciled to the related items in the Balance Sheet as follows:
Cash at bank and on hand (see Note 11) 10,255,857 9,235,465 5,397,874 5,598,054 Bank overdrafts (see Note 20) (94,022) (123,976) - -
Total 10,161,835 9,111,489 5,397,874 5,598,054
| 209 |Department of Public Works
Annual Report 2005 - 06
Notes to the Financial Statements2005–2006
Economic Entity Parent Entity
2006 2005 2006 2005$ $ $ $
27 Reconciliation of operating result to net cash provided by/(used in) operating activitiesNet operating result (413,329) 1,163,315 (1,115,128) 607,529
Non-cash items Depreciation expense 3,658,055 3,723,453 3,572,170 3,644,040 Amortisation expense 2,458,745 2,330,839 2,452,600 2,330,839 Gain on sale or disposal of non-current assets (4,016) (2,070) (4,016) (2,070) Loss on sale or disposal of non-current assets 59,997 165,441 59,997 154,914 Transactions processed through related entity
current account - 7,354 15,988 25,000
Change in assets and liabilities (Increase)/decrease in receivables 2,860,257 (1,500,226) 1,813,290 (871,327) (Increase)/decrease in LSL receivable 31,269 (9,800) 31,269 (9,800) (Increase)/decrease in income tax receivable - - - - (Increase)/decrease in GST receivable 196,136 (97,417) 189,304 (53,544) (Increase)/decrease in inventories 64,193 21,132 64,193 21,132 (Increase)/decrease in interest receivable 80,147 (24,272) 80,865 (24,611) (Increase)/decrease in prepayments 623,231 (828,303) 666,348 (540,224) (Increase)/decrease in other assets 3,907 3,141 - 450 (Increase)/decrease in deferred tax assets (494,255) 125,282 (445,403) 123,509 Increase/(decrease) in unearned revenue 158,088 (517,192) 252,090 (485,239) Increase/(decrease) in accrued employee benefits 303,682 (183,605) 258,092 (209,326) Increase/(decrease) in payables (1,355,025) 328 (1,320,730) (361,960) Increase/(decrease) in provisions 6,817 (2,325) 6,817 (10,310) Increase/(decrease) in provision for tax expense (493,780) 106,043 (409,069) (36,936) Increase/(decrease) in GST payable (138,615) 463,396 (120,104) 296,245 Increase/(decrease) in interest payable 24,885 123 25,089 (37) Increase/(decrease) in other liabilities (265,630) (425,544) (265,630) (425,544) Increase/(decrease) in deferred tax liabilities (29,581) (265,695) (29,796) (265,593)
Net cash provided by operating activities 7,335,178 4,253,398 5,778,237 3,907,136
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CITEC Financial Reporting
Notes to the Financial Statements2005–2006
Economic Entity Parent Entity
2006 2005 2006 2005$ $ $ $
28 Commitments for expenditure(a) Finance lease liabilitiesLease liabilities recognised in the balance sheet:
Current 31,609 368,792 31,609 368,792 Non-current - 31,609 - 31,609
Total 31,609 400,401 31,609 400,401
Commitments under finance leases at the reporting date are inclusive of anticipated GST and are payable as follows:
Not later than one year 31,746 380,953 31,746 380,953 Later than one year and not later than five years - 31,746 - 31,746 Subtotal 31,746 412,699 31,746 412,699 Less: future finance charges recognised in the
A finance lease exists for a software package. Lease payments are fixed. Ownership transfers to the lessee at the end of the lease. There are no restrictions imposed by lease arrangements upon financing or other activities.
(b) Non-cancellable operating lease commitments Commitments under non-cancellable operating
leases at reporting date are inclusive of anticipated GST and are payable as follows:
Not later than one year 6,429,307 6,199,017 6,300,168 6,083,888 Later than one year and not later than five years 3,157,493 670,469 2,993,570 448,871
Total 9,586,800 6,869,486 9,293,738 6,532,759
Operating leases exist for computer hardware and office accommodation. Renewal terms are included in the contracts and are at option of the lessee. Lease payments are generally fixed, but with inflation escalation clauses on which contingent rentals are determined. There are no restrictions imposed by lease arrangements on financing or other leasing activities and no renewal or purchase options exist in relation to operating lease.
(c) Capital expenditure commitments Material classes of capital expenditure commitments
inclusive of anticipated GST, contracted for at reporting date but not recognised in the accounts are payable as follows:
Computer equipment and other capital items 81,737 187,076 81,737 187,076Total 81,737 187,076 81,737 187,076
Not later than one year 81,737 187,076 81,737 187,076Total 81,737 187,076 81,737 187,076
| 211 |Department of Public Works
Annual Report 2005 - 06
Notes to the Financial Statements2005–2006
Parent Entity
2006 2005$ $
29 ContingenciesGuarantees and undertakings
The following guarantees/undertakings are not recognised as liabilities in the Balance Sheet.
CITEC has arranged bank guarantees in relation to business opportunities pursued by its controlled entity CSI Holdings Pty Ltd, as follows:
Commonwealth of Australia 80,000 80,000 Australian Securities and Investment Commission 382,000 382,000 KSM Australia 60,000 - Global Switch Property 13,750 - State of Victoria 142,000 107,670 State of New South Wales 613,847 500,000 Sydney Water Corporation 125,000 125,000 State of Western Australia 27,500 27,500 Insolvency and Trustee Service Australia 127,000 127,000
Total 1,571,097 1,349,170
Parent Entity
2006 2005% %
30 Controlled entities Set out below are the percentage owned of entities controlled by CITEC, whose
revenue, expenses, assets, liabilities and equity have been included within these financial statements:
CSI Holdings Pty Ltd (incorporated in Australia) 100.00% 100.00% Aurion Corporation Pty Ltd (incorporated in Australia) 50.98% 50.98%
CSI Holdings Pty Ltd and Aurion Corporation Pty Ltd are audited by the Queensland Auditor-General. External audit fees quoted for the 2006 financial year (as per the Client Service Plan) are $7,000 and $17,000 (2005: $6,650 and $13,000) respectively. There are no non-audit services included in this amount.
31 Financial instrumentsCategorisation of financial instrumentsCITEC has categorised the financial assets and financial liabilities held as:
Payables Financial liability not at fair value through profit and loss (at nominal value) Cash overdraft Financial liability not at fair value through profit and loss (at nominal value) Interest-bearing liabilities Financial liability not at fair value through profit and loss (at amortised cost) Finance lease liabilities Financial liability not at fair value through profit and loss (at amortised cost) Borrowings Financial liability not at fair value through profit and loss (at amortised cost)
| 212 | Section 3
CITEC Financial Reporting
Notes to the Financial Statements2005–2006
Economic Entity Parent Entity
2006 2005 2006 2005$ $ $ $
(a) Interest rate risk exposure CITEC’s exposure to interest rate risk and the effective
interest rates of financial assets and financial liabilities are shown in the following table.
Total 94,022 123,976 - -Weighted average rate 8.59% 8.60% n/a n/a
Finance lease principal commitments Less than one year 31,609 368,792 31,609 368,792 Between 1–5 years - 31,609 - 31,609
Total 31,609 400,401 31,609 400,401Weighted average rate 5.22% 5.22% 5.22% 5.22%
Queensland treasury corporation borrowings Less than one year 3,209,992 3,173,446 3,209,992 3,173,446 Between 1–5 years 1,714,044 2,724,035 1,714,044 2,724,035
Total 4,924,035 5,897,481 4,924,035 5,897,481Weighted average rate 5.65% 5.72% 5.65% 5.72%
Other borrowings – non-interest bearing Non interest-bearing 29,365 381,746 29,365 381,746
Total 29,365 381,746 29,365 381,746Weighted average rate n/a n/a n/a n/a
All other assets and liabilities have no interest rate risk exposure. Floating interest rates are the most recently administered market rate applicable to the instrument at balance date. The fixed rate represents weighted average market interest rate.
| 213 |Department of Public Works
Annual Report 2005 - 06
Notes to the Financial Statements2005–2006
(b) Credit risk exposure The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the
carrying amount of those assets net of any provisions for impairment as indicated in the Balance Sheet. There are no significant concentrations of credit risk within the Group as exposure is spread over a large number of counterparties and customers.
(c) Fair valueThe fair value is determined as follows:
The fair value of cash and cash equivalents and non interest-bearing monetary financial assets and financial liabilities approximate their carrying amounts; and
The fair value of other monetary financial assets and financial liabilities is based on market prices where a market exists, or is determined by discounting expected future cash flows by the current interest rate for financial assets and liabilities with similar risk profiles.
Economic Entity Parent Entity
2006 2005 2006 2005$ $ $ $
The carrying amounts and estimated fair values of financial assets and financial liabilities held at balance date are given below:
Financial assetsCash
Total carrying amount 10,255,857 9,235,465 5,397,874 5,598,054 Net fair value 10,255,857 9,235,465 5,397,874 5,598,054
Receivables Total carrying amount 14,171,124 17,192,482 12,500,503 14,425,930 Net fair value 14,171,124 17,192,482 12,500,503 14,425,930
Other financial assets Total carrying amount - - 2,220,000 2,220,000 Net fair value - - 2,220,000 2,220,000
Shares* Total carrying amount - - 500,002 500,002 Net fair value - - 500,002 500,002
Financial liabilitiesPayables
Total carrying amount 7,990,697 9,518,280 6,855,288 8,260,457 Net fair value 7,990,697 9,518,280 6,855,288 8,260,457
Cash overdraft Total carrying amount 94,022 123,976 - - Net fair value 94,022 123,976 - -
Finance lease liabilities Total carrying amount 31,609 400,401 31,609 400,401 Net fair value 31,609 400,401 31,609 400,401
Queensland Treasury Corporation borrowings Total carrying amount 4,924,035 5,897,481 4,924,035 5,897,481 Net fair value 4,924,035 5,897,481 4,924,035 5,897,481
Other borrowings – non-interest bearing Total carrying amount 29,365 381,746 29,365 381,746 Net fair value 29,365 381,746 29,365 381,746
* As equity instruments are not traded on an active market, a reliable estimate of fair value cannot be obtained.
| 214 | Section 3
CITEC Financial Reporting
Notes to the Financial Statements2005–2006
Parent Entity
2006 2005$ $
32 Agency transactions CITEC has commercial arrangements with various
government agencies for the provision of disbursement services to third parties. Separate bank accounts are utilised for Brisbane and Canberra clients to facilitate the receiving and disbursement of funds according to client instructions. At any time, funds received from clients may be held within these bank accounts awaiting disbursement. A reconciliation of amounts collected and distributed follows:
(a) Brisbane bank accountBalance at beginning of financial year 8,140,667 32,280,170Collections during reporting period 3,151,349,473 2,866,495,917
Disbursements according to clients’ instructions during reporting period (3,148,989,417) (2,890,635,420)Balance at end of financial year 10,500,723 8,140,667
(b) Canberra bank accountBalance at beginning of financial year 15,632,179 607,769Collections during reporting period 14,984,160 670,172,967
Disbursements according to clients’ instructions during reporting period (30,616,339) (655,148,557)Balance at end of financial year - 15,632,179
Fees of $2,413,604 (2005: $7,367,795) received by CITEC for providing these disbursement services are recognised in user charges (see Note 3).
These transactions and balances are not recognised in CITEC’s financial statements. Under the terms of the commercial arrangements interest earned on these balances is retained by CITEC and disclosed as interest revenue.
These activities are audited by the Queensland Auditor-General.
33 Board and committee remuneration Total of the remuneration paid or payable or otherwise made available
to the members of CITEC’s Business Enterprise Board: - 108,230
CITEC’s business enterprise board was abolished effective 30 June 2005.
| 215 |Department of Public Works
Annual Report 2005 - 06
Notes to the Financial Statements2005–2006
Economic Entity
2006 2005$ $
34 Directors’ remuneration Income paid or payable to all directors of each entity
in the economic entity by the entities of which they are directors: 353,916 373,769
The names of directors of the controlled entities who have held office during the financial year are:
Mr A Skippington Mr I Munro (alternative) Mr A Ellem Mr T Waters (alternative) Mr S Basso Mr B Jones Mr D Mearson Mr B Coleman (alternative)
35 Related party transactions Transactions between related parties are on normal commercial terms and conditions no more favourable than
those available to other parties unless otherwise stated.
36 Segment reporting The economic entity operates predominantly in one business and geographical segment being the provision of
information technology services throughout Australia.
Economic Entity Parent Entity
2006 2005 2006 2005$ $ $ $
37 Taxation(a) Income tax recognised in profit and lossIncome statement
The major components of income tax expense/(benefit) are:
Current income tax Current income tax expense/(benefit) (39,240) 709,251 (418,304) 409,069 Adjustments in respect of current income tax
of previous years - 19,409 - - Deferred income tax Relating to origination and reversal of
temporary differences (105,531) (159,823) (56,894) (142,085) Income tax expense reported in the
income statement (144,771) 568,837 (475,198) 266,984
| 216 | Section 3
CITEC Financial Reporting
Notes to the Financial Statements2005–2006
Economic Entity Parent Entity
2006 2005 2006 2005$ $ $ $
(b) Reconciliation of income tax expense to prima facie tax payable
A reconciliation between tax expense and the product of accounting profit before income tax multiplied by applicable income tax rate is as follows:
Accounting profit before tax from continuing operations (558,100) 1,732,152 (1,590,326) 874,513
At the statutory income tax rate of 30% (2005: 30%) (167,430) 519,646 (477,098) 262,354
Less: Tax effect of: – adjustment for R&D concessions 22,684 22,613 - - – over provision for income tax in prior year 2,212 - - - (144,771) 568,838 (475,198) 266,985
Income tax expense reported in the consolidated income statement (144,771) 568,837 (475,198) 266,984Income tax attributable to parent entity (144,771) 568,837 (475,198) 266,984
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by Australian Corporate entities on taxable profits under Australian tax law. There has been no change in the corporate tax rate when compared with the previous reporting period.
| 217 |Department of Public Works
Annual Report 2005 - 06
Notes to the Financial Statements2005–2006
Economic Entity Parent Entity
2006 2005 2006 2005$ $ $ $
(c) Deferred income taxDeferred income tax at 30 June relates to the following:
(d) Tax losses not brought to account, as the realisation of the benefits represented by these balances in not considered to be probableIncome tax 601,559 459,325Total tax losses not brought to account 601,559 459,325Potential tax benefit at respective tax rates 180,468 137,798
| 218 | Section 3
CITEC Financial Reporting
Notes to the Financial Statements2005–2006
Previous Effect ofGAAP transition AEIFRS
1 July 2004 to AEIFRS 1 July 2004Notes $ $ $
38 Reconciliation of adjustments from previous GAAP to AEIFRS as at 1 July 2004
Reconciliation of equity
Parent entity Current assets Cash assets 7,096,094 - 7,096,094 Receivables 13,534,853 - 13,534,853 Inventories 95,567 - 95,567 Prepayments 1 2,370,997 (371,494) 1,999,503 Total current assets 23,097,511 (371,494) 22,726,017
Non-current assets Other financial assets 2,820,002 - 2,820,002 Tax assets 1,250,996 - 1,250,996 Intangibles 7,493,277 - 7,493,277 Property, plant and equipment 8,845,089 - 8,845,089 Other 1 - 371,494 371,494 Total non-current assets 20,409,364 371,494 20,780,858 Total assets 43,506,875 - 43,506,875
Current liabilities Payables 2 8,727,565 (80,403) 8,647,162 Other financial liabilities 350,074 - 350,074 Provisions 3 4,273,038 (4,099,919) 173,119 Accrued employee benefits 4 - 4,180,322 4,180,322 Tax liabilities 446,005 - 446,005 Unearned revenue 652,008 - 652,008 Other 1,408,452 - 1,408,452 Total current liabilities 15,857,142 - 15,857,142
Non-current liabilities Other financial liabilities 2,620,400 - 2,620,400 Tax liabilities 615,222 - 615,222 Other 523,446 - 523,446 Total non-current liabilities 3,759,068 - 3,759,068 Total liabilities 19,616,210 - 19,616,210 Net assets 23,890,665 - 23,890,665
Operating result before income tax expense 874,513 - - 874,513
Income tax expense 266,984 - - 266,984Operating result after income tax expense 607,529 - - 607,529
Net deficit attributable to outside equity interests - - - -
Net operating result 607,529 - - 607,529
2004–05Notes Adjustments
Prepayments have been split between their respective current and non-current components 1 (63,385)
(63,385)
Restatement of receivables and payables in comparatives 2 2,918 2,918
Employee benefits no longer a payable, but now an accrual 3 (120,376) Restatement of receivables and payables in comparatives 2,918 Dividends are no longer a provision, but now a payable (233,018) (350,476)
Employee benefits no longer a provision, but now an accrual 4 (381,183) Recognise non-current component of accrued employee benefits (185,191) Dividends are no longer a provision, but now a payable 233,018 (333,356)
Employee benefits no longer a provision, but now an accrual 5 381,183 Employee benefits no longer a payable, but now an accrual 120,376 501,559
Correction of disclosure in comparatives 6 520,000 520,000
Recognise non-current component of accrued employee benefits 7 (185,191) (185,191)
| 223 |Department of Public Works
Annual Report 2005 - 06
Notes to the Financial Statements2005–2006
Previous OpeningGAAP Adjustments 2004–05 AEIFRS
30 June 2005 1 July 2004 Adjustments 30 June 2005Notes $ $ $ $
Total expenses 132,613,937 - (121,710) 132,492,227
Operating result before income tax expense 1,610,442 - 121,710 1,732,152
Income tax expense 568,837 - - 568,837Operating result after income tax expense 1,041,605 - 121,710 1,163,315
Net deficit attributable to outside equity interests (357,859) - - (357,859)Net operating result 683,746 - 121,710 805,456
2004–05Notes Adjustments
Prepayments have been split between their respective current and non-current components 1 (63,385)
(63,385)
All goodwill amortised under previous AGAAP has been reversed 2 121,710 121,710
Employee benefits no longer a payable, but now an accrual 3 (120,376) Dividends are no longer a provision, but now a payable (233,018) (353,394)
Employee benefits no longer a provision, but now an accrual 4 (355,464) Recognise non-current component of accrued employee beenfits (185,191) Dividends are no longer a provision, but now a payable 233,018 (307,637)
Employee benefits no longer a provision, but now an accrual 5 355,464 Employee benefits no longer a payable, but now an accrual 120,376 475,840
Employee benefits no longer a provision, but now an accrual 6 (7,985) Recognise non-current component of accrued employee benefits (185,191) (193,176)
Correction of disclosure in comparatives 7 520,000 520,000
Statement of Cash Flows No material adjustments were required to the Statement of Cash Flows for the year ended 30 June 2005 as a result of
transition to AEIFRS.
| 225 |Department of Public Works
Annual Report 2005 - 06
These General Purpose Financial Statements have been prepared pursuant to section 40(1) of the Financial Administration and Audit Act 1977 (the Act), and other prescribed require-ments. In accordance with Section 40(3) of the Act we certify that in our opinion:
(a) the prescribed requirements for the establishment and keeping the accounts have been complied with in all material respects; and
(b) the statements have been drawn up so as to present a true and fair view, in ac-cordance with prescribed accounting standards, of the transactions of CITEC for the financial year ended 30 June 2006, and of the financial position of CITEC at the end of that year.
W Pashen FCPA, B.Comm, ACIS M Grierson B.Econ, M.PubAdminActing General Manager, Corporate Services Director-General CITEC Department of Public Works
