Dear Minister I am pleased to submit the Department of Public Works Annual Report for the year ended 30 June 2005. This 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 applying for the whole of the 2004-05 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 2004-05 to you for presentation to Parliament. Yours faithfully Mal Grierson Director-General The Honourable Robert Schwarten MP Minister for Public Works, Housing and Racing Level 7, 80 George Street BRISBANE Q 4000 Level 7, 80 George Street GPO Box 2457 Brisbane Q 4001 Australia Phone: +61 7 3224 6507 Fax: +61 7 3224 5616
Transcript
Dear Minister
I am pleased to submit the Department of Public Works Annual Report for the year ended 30 June 2005. This 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 applying for the whole of the 2004-05 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 2004-05 to you for presentation to Parliament.
Yours faithfully
Mal GriersonDirector-General
The Honourable Robert Schwarten MPMinister for Public Works, Housing and RacingLevel 7, 80 George StreetBRISBANE Q 4000
To clearly show how the Department of Public Works supported the Queensland Government in delivering its programs and services during the 2004-05 fi nancial year.
To demonstrate the department’s commitment to its staff and to addressing the Queensland Government’s 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.
Department of Public Works Annual Report 2004 - 05
Letter of TransmissionCommunication Objectives
Section 1 Our Organisation From the Director-General 6 Highlights of 2004-05 6 Profi le 8 Organisational Chart 9 Divisions 10 Works 10 Infrastructure and Major Projects 10 Government Offi ce Accommodation Unit 10 Portfolio and Housing Unit 11 Industry Policy Unit 11 Built Environment Research Unit 12 QBuild 13 Project Services 14 Services 16 Queensland Purchasing 16 Queensland State Archives 17 QFleet 18 Goprint 18 SDS 19 Offi ce of Government ICT 19 Information Services Directorate 21 Corporate and Executive Services 21 CITEC 23 Racing Division 24 Locations 26
Section 3 Our People Staff Numbers 50 Voluntary Early Retirements 51 Performance Management 51 Code of Conduct 52 Training and Development 53 Employment Initiatives 55 Supporting Diversity 56 Workplace Health and Safety 58 Reward and Recognition 60
Section 5 Other Reporting Strategic Groups 74 Internal Audit 76 Summary of Audit Activity 77 Recordkeeping 78 Risk Management 79 Energy and Waste Management 80 Acts Administered 82 Statutory Bodies, Authorities and Instrumentalities 83 Racing Appeals Tribunal 86 Freedom of Information Statistics 87 Overseas Travel 88 Consultancies 93 Shared Service Initiative 94
Section 6 Financial Summary 97
Section 7 Financials 103
Section 8 CITEC Financial Statements 173
Contents continued
Our Organisationsection 1
Department of Public Works Annual Report 2004 - 05
5.
6.
Section 1 Our Organisation
From the Director-General
The Department of Public Works had two major changes in 2004-05.
We welcomed Racing Division on 1 July 2004 when machinery-of-Government changes transferred responsibility to us from the Department of Housing. We also introduced a new organisational structure designed to help us better meet our clients’ needs.
Our new-look department is now ideally positioned to continue delivering our many services to Queenslanders and to achieve outcomes in line with Queensland Government priorities. Signifi cant outcomes were achieved throughout 2004-05 by all areas of the department, including our new Racing Division.
I commend our staff for their excellent work in 2004-05 on numerous projects and services that have improved the lives of Queenslanders. Here are just a few of the year’s many highlights:
Highlights of 2004-05
Construction Projects
Construction of the $135 million Brisbane Magistrates Court was completed for the Department of Justice and Attorney-General.
The Millennium Arts Project at the Queensland Cultural Centre saw the start of construction of the Queensland Gallery of Modern Art, the State Library redevelopment and the associated site infrastructure works. The construction for the redevelopment of the Queensland Museum was completed.
In March 2005, the Project Services team working on stage six of the Brisbane Cricket Ground (Gabba) redevelopment achieved their fi rst key program target milestone with the
handover of over 2,000 lower tier seats for the fi rst game of the AFL season featuring the Brisbane Lions.
The Department of Public Works continued public and intergovernmental consultation and master planning for the North Bank redevelopment adjacent to the Brisbane CBD.
Work progressed on the Boggo Road Precinct Redevelopment in Brisbane to turn the former gaol site and surrounding area at Dutton Park into a research, business, commercial and residential precinct. Stage one is providing space for an eco-science research centre – a signifi cant Smart State initiative.
A $10 million refurbishment of stage one of the Cairns Convention Centre was completed, enabling the centre to maintain a strong position in the highly competitive national and international convention market.
Indigenous Opportunities
Completion of the $5 million Palm Island Community Youth Centre gave the community a real boost by providing a safe place where people of all ages can go to have fun and get involved in activities, including using the Internet. Ten Indigenous apprentices gained training and obtained invaluable experience by completing their competencies with subcontractors assigned to this project. These apprentices were engaged under the Palm Island Apprentice Program and are indentured to the Palm Island Community Council, with QBuild acting as the host employer.
Shared Services
The Department of Public Works is unique in its provision of services at a whole-of-Government level. This enables us to work in partnerships to take on a whole-of-Government perspective to deliver better
7.
Department of Public Works Annual Report 2004 - 05
outcomes for the Queensland Government. The department is proactively preparing for implementation of the Shared Services Business Solutions for Human Resources and Finance across its various business units and corporate areas.
Smart Directions
The Smart Directions Statement for Information and Communications Technology (ICT) within the Queensland Government is about ensuring appropriate investment in ICT to deliver better services like health, education and transport to all Queenslanders, and it is about working collaboratively with the ICT industry to ensure delivery of innovative business solutions. The Offi ce of Government ICT has responsibility for implementing or coordinating the implementation of the action items in the Smart Directions Statement. The Strategic Information and ICT Governance Framework and the Communication and Engagement Framework have been established.
Currently, the Offi ce of Government ICT is working closely with agencies to improve communications and establish mechanisms to share knowledge of business and ICT projects.
Racing Integrity
An independent review of the integrity management structures of thoroughbred, harness and greyhound racing codes in Queensland and an independent inquiry – the Daubney/Rafter Commission of Inquiry – into Queensland thoroughbred racing were fi nalised. The reports of both the review and the inquiry contain a number of recommendations but make no fi ndings of misconduct by any person.
The Daubney/Rafter Inquiry concluded on 3 June 2005 with the delivery of a 292-page report which can be accessed at www.racing.qld.gov.au
Travel Management
Queensland Purchasing signed a ground-breaking deal with travel organisation BTI Australia for the provision of a web-based travel management system that will streamline travel arrangements and save the Queensland Government over $25 million in its fi rst fi ve years of implementation.
The travel management system will be trialled by Queensland Health and by the Department of Public Works in early 2006 with the aim of being rolled out across all Queensland Government departments by the end of 2006.
Prep Year
A combined QBuild and Project Services team is undertaking the Regional Queensland Contract for the delivery of facilities for Queensland’s Preparatory School Year Program. Site inspections and audits were conducted at all school sites and designs were developed for new buildings and refurbishments.
Congratulations to all staff for a job well done in 2004-05.
Mal GriersonDirector-General
8.
Profi le
The Department of Public Works supports the Queensland Government and its agencies in delivering their services throughout the State.
The department is the Queensland Government’s lead agency in the design, construction, fi t-out and maintenance of government buildings; in whole-of-Government ICT; in procurement; in providing a regulatory framework that protects the integrity of Queensland’s racing industry; and in record-keeping in Queensland’s public sector.
The larger units of the department are commercialised business units: 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, an ICT service provider.
In addition, the department has business units that provide whole-of-Government services including vehicles, business supplies and offi ce furniture, printing and copying requirements and indoor plants for government buildings.
The Department of Public Works has a strong policy and strategic development role, providing leadership and support to other government agencies to help them meet whole-of-Government priorities.
This role extends to the department’s relationship with the private sector in fi elds such as construction and ICT. Wherever possible, the department partners with industry by sharing knowledge, using its research and development abilities and driving other business and technical initiatives.
Section 1 Our Organisation
Department of Public Works Annual Report 2004 - 05
Director-General
QFleet
Goprint
Qld State Archives
Qld Purchasing
Information Services Directorate
Legal and Contractual
Finance
Human Resources
Corporate Planning and
External RelationsGovernance and Review
Deputy Director-General
(Works)
Deputy Director-General
(Services)Assistant Director-General
Office of Government ICT
Racing
Division
CITEC
SDS
Business Strategy & Dev.(inc. strategic asset man. unit)
Technical Services
Business Support Unit
QBuild
Project Services
Building Policy Unit
Portfolio and Housing Unit
Govt Office Accommodation Unit
Infrastructure and Major Projects
Built Environment Research Unit
Internal Audit
Shared Services
Organisational Chart
Organisational structure as at 30 June 2005
10.
Section 1 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.
The division includes Infrastructure and Major Projects, Government Offi ce Accommodation Unit, Portfolio and Housing Unit, Industry Policy Unit and Built Environment Research Unit as well as the commercialised business units, Project Services and QBuild.
Works Division also includes the support areas of Business Strategy and Development, Technical Services and Business Support.
Infrastructure and Major ProjectsInfrastructure and Major Projects works for government agencies as project director of signifi cant capital works building projects in Queensland. It also acts as a facilitator and advisor for building and property projects that provide public facilities and infrastructure.
Major Achievements and Projects
In 2004-05, Infrastructure and Major Projects provided technical advice and professional services to central and key agencies in the initiation, facilitation and delivery of at least 19 major projects worth more than $2.99 billion.
The projects included:Millennium Arts at the Queensland Cultural Centre, BrisbaneBrisbane Magistrates CourtMackay Convention PrecinctWestgate Development StudyQueensland House, LondonRoma Street Parkland Residential Development, Brisbane
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North Bank Redevelopment, BrisbaneBoggo Road Precinct, Brisbane.
Infrastructure and Major Projects was appointed as project director for Brisbane’s North Bank development and coordinated the strategic planning stage of the project. The unit also developed a Boggo Road Masterplan to incorporate Queensland Transport’s bus tunnel connection from Brisbane’s Ipswich Road to the Green Bridge, including a bus/rail interchange at Brisbane’s Park Road Station.
Work progressed on the Millennium Arts Project at the Queensland Cultural Centre with construction starting on the Queensland Gallery of Modern Art and the Millennium Library redevelopment. The Science Centre was relocated and offi cially opened in September 2004.
The conversion of Mackay Convention Precinct from a government capital works project to a capital grant for Mackay City Council was successfully managed with ongoing assistance provided to the Council. Work on Queensland House in London continued, with the building now undergoing a complete refurbishment. The project budget is $4.5 million.
Government Offi ce Accommodation Unit The Government Offi ce Accommodation Unit is responsible for the strategic planning and management of offi ce space for government-owned and leased offi ces.
The unit also provides advice and secretariat support to the Government Offi ce Accommodation Committee chaired by the Director-General. This committee in turn provides advice to government and direction to agencies with regard to offi ce accommodation.
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Works Division
Department of Public Works Annual Report 2004 - 05
Major Achievements and Projects
The Government Offi ce Accommodation Unit developed the Offi ce Accommodation Strategy 2004-2009 for the Brisbane Central Business District and completed the implementation of the accommodation strategy for the Shared Service Initiative (part one).
The unit commenced implementing Regional Offi ce Accommodation Strategies for Toowoomba, Gladstone and Mt Isa and developed accommodation strategies for Maryborough, Roma, Atherton and Mareeba.
By negotiating favourable lease conditions and incentives, the Government Offi ce Accommodation Unit reduced offi ce accommodation expenditure for government departments by around $4.5 million in 2004-05.
Implementation of the Government Offi ce Accommodation Management Framework for the best practice, planning, management and use of government offi ce accommodation also commenced during 2004-05.
Portfolio and Housing UnitThe role of the Portfolio and Housing Unit is to plan, procure and operate the Department of Public Works’ building portfolios. Its primary aims are to support agencies’ service delivery needs through the provision of offi ce and employee housing accommodation, and
Left:
Queensland Gallery of
Modern Art
Right:
Boggo Road Precinct
Redevelopment
to maximise whole-of-Government returns on the capital invested in the different government agencies.
The unit coordinates and delivers property services to the government-owned offi ce portfolios and employee housing portfolios. It also delivers capital works programs.
Major Achievements and Projects
During 2004-05 the Portfolio and Housing Unit managed the $10 million refurbishment of stage one of the Cairns Convention Centre.
Construction of a new scenery and costume workshop and store commenced at the site of the Queensland Theatre Company at 78 Montague Road, South Brisbane. The Thomas Dixon Centre at West End, Brisbane, was refurbished during the year for the Queensland Ballet.
The unit also began implementing a whole-of-Government employee housing strategy in Weipa to provide an additional 33 units of accommodation.
Industry Policy UnitThe Industry Policy Unit provides an industry development perspective and link between the Queensland Government, the building industry, building-related professionals and building unions on matters that impact on all parties.
Its goal is to develop whole-of-Government policies and guidelines that promote an improved competitive and innovative industry, which will lead to an improved relationship between government and industry. As well, the Industry Policy Unit develops and enhances initiatives to improve the government supplier base.
The Industry Policy Unit also manages the whole-of-Government Prequalifi cation (PQC) System for building industry contractors and consultants.
Major Achievements and Projects
The Industry Policy Unit developed an improved Building Facility Condition assessment model in consultation with Queensland Government agencies. This will improve the assessment of maintenance needs of building facilities and lead to more effective allocation of maintenance resources. The model will be incorporated as a guideline under the Maintenance Management Framework for which the Department of Public Works is the lead agency.
The unit implemented enhancements to the PQC System and the associated invitation and selection process for building industry consultants.
With the aim of promoting best practice and improving compliance with awards,
agreements and employment-related legislation and government policy, the Industry Policy Unit implemented new workforce management requirements to be met by contractors on government building projects. These involve the defi nition of genuine subcontractors and require declarations that statutory obligations have been met for all employees and labour-only workers.
The unit continued to contribute to the success of the industry-wide research and improvement initiative, the Cooperative Research Centre for Construction Innovation.
Built Environment Research UnitThe Built Environment Research Unit provides expert advice and policy development on environmental issues associated with the built and urban environment. Issues include greenhouse gas emission abatement, energy management and conservation, safer and healthier buildings, life-cycle assessment, indoor air quality and building heritage conservation.
The unit also coordinates research activities with government, industry and tertiary and research institutions to develop and produce sustainable technologies such as renewable or alternative energy technologies.
Left:
Supporting
the Queensland
Ballet at The Thomas
Dixon Centre
Right:
The Government
Energy Management
Strategy reduced
consumption
of energy
Section 1 Our Organisation
13.
Department of Public Works Annual Report 2004 - 05
Major Achievements and Projects
During 2004-05, the Built Environment Research Unit continued implementation of the Government Energy Management Strategy. The objectives of this initiative include reduced government consumption of energy and reduced greenhouse gas emissions.
The unit continued research into the development of improved thermal comfort mechanisms for government schools and other government buildings.
Data collection, analysis and reporting on the Rockhampton Research House in regard to environmentally responsible housing design continued. A Queensland University of Technology social impact study was completed in 2004-05. The study investigated the Research House tenants’ perception of the liveability of a sustainable home.
A “Designing for Sustainable Living” interactive learning object capitalised on the Research House project. Developed with the Department of Education and the Arts and the Department of Housing, the learning object will teach school students from years 6-12 the concepts of sustainability in the home environment. The project was a Year of the Built Environment 2004 initiative.
QBuildQBuild is the Queensland Government’s building construction and maintenance provider. QBuild also provides building-related services to government agencies, including security, horticulture, waste management, pest control and cleaning.
QBuild is one of the largest construction industry employers of apprentices in Queensland, with 341 apprentices currently
on the books. In February 2005, QBuild took on 95 apprentices and fi ve construction industry-based trainees including 55 new full-time apprentices, eight new full-time Indigenous apprentices, fi ve new school-based apprentices and fi ve new Indigenous school-based apprentices.
During 2004-05, QBuild assisted 15 state schools in the wake of fi res that caused damage estimated at approximately $1.1 million. QBuild secured sites, demolished burnt-out buildings, added temporary classrooms and assisted another Public Works’ business unit, Sales and Distribution Services (SDS), with the installation of furniture and educational supplies.
Increasingly, QBuild’s clients seek asset management solutions from a single source. The business unit continues to work with other areas of the department to explore more effi cient and effective ways of delivering integrated asset-management services to clients.
Major Achievements and Projects
A combined QBuild and Project Services team was awarded the Regional Queensland Contract for the delivery of facilities for Queensland’s Preparatory School Year Program. QBuild advised the Department of Education and the Arts on the building-related scope of works required after inspecting 642 facilities over 65 days. QBuild delivered prototype projects that trialled several standard designs that were developed by Project Services. The prototype projects were completed within compressed timeframes for the start of the 2005 school year.
As part of an integrated service delivery model with the Department of Education and the Arts, QBuild continued to cluster schools
within a school district for the provision of maintenance programs. This led to effi ciencies in regional planning of works, less travel time and the opportunity to bulk-purchase material to reduce costs.
Construction of the $2.4 million Thursday Island Courthouse met the provisions of the Local Industry Participation Policy by creating employment and providing an excellent training project for local apprentices. In collaboration with Project Services, nine apprentices and a number of local contractors were involved in the project.
Other construction projects included:new facilities for Agnes Waters State School;a general learning area for Chinchilla State School;new beach volleyball courts for the Queensland Sport and Athletics Centre; andrestoration of the Anzac Square Shrine of Remembrance, stages C and D.
Following a fi re at Wooloowin State School, QBuild helped to restore the school’s heritage-listed buildings to their original timber construction standard. The $2.4 million project was completed in eight months.
QBuild trialled a coordinated approach to planning of maintenance and minor works programs in QBuild’s Regional Queensland
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Group. This resulted in the Capricornia and Cape York regions installing a Bulletin Board of Works on the GovNet website to alert clients to the timing and location of upcoming work and allow for joint scheduling of maintenance works.
Project ServicesProject Services delivers building programs for public sector clients.
As a commercialised business unit, Project Services provides expertise across professional building-related and property services including project, risk and asset management, design and documentation and contract management.
By outsourcing building work and entering into joint ventures with private operators interstate and overseas, Project Services assists in developing Queensland’s building and construction industry. The business unit continues to meet clients’ needs and to deliver the best outcomes on building projects.
Major Achievements and Projects
In 2004-05, Project Services managed approximately $700 million in major and minor capital works projects and programs on behalf of its core Queensland Government clients.
Left:
The Millennium Arts
Project: State Library
Redevelopment
Right:
The Gabba had 2,000
lower tier seats ready
for the fi rst AFL game
of the season
Section 1 Our Organisation
15.
Department of Public Works Annual Report 2004 - 05
Work included:delivery of additional facilities for North Lakes State College in time for the commencement of the 2005 school year;project management and contract management services for the Millennium Arts Project;completion of the Brisbane Cricket Ground (the Gabba) redevelopment;delivery of the Cannon Hill Emergency Services Special Operations Centre; anddesign, project management and contract management for the Thursday Island Courthouse.
Project Services successfully project-managed the construction of the $135 million Brisbane Magistrates Court, which was delivered on time and within budget.
The $5 million Palm Island Community Youth Centre was completed in February 2005, with project management from Project Services and construction management from QBuild at the local level. The centre has made a real difference to the quality of life on Palm Island.
Project Services was commissioned by the Department of Education and the Arts (DEA) to provide project management, design and documentation, quantity surveying, and contract administration consultancy services in the delivery of preparatory year facilities in 467 state primary schools across Queensland. The remaining state schools will receive a direct grant to enable establishment of a preparatory year facility within their existing buildings. This grant scheme is being administered by DEA. DEA and Project Services or QBuild offi cers visited the 467 schools to establish their Preparatory Year facility need.
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In January 2005, the Architectural Practice Academy commenced operation. Initiated in conjunction with the Royal Australian Institute of Architects, the academy provides six of Queensland’s leading architectural graduates with the opportunity to develop skills in building and maintaining a commercially viable architectural practice. The graduates run their own practice, gaining experience in areas such as client management, design and documentation and budget management. Project Services provides support to the students.
Project Services continued to refi ne partnering agreements with the Department of Housing, the Department of Education and the Arts, and the Department of Employment and Training. The business unit played a major role in the Queensland Government’s fi rst Public Private Partnership, the Southbank Education and Training Precinct PPP project, with the Department of Employment and Training.
In its Housing Portfolio, Project Services renewed its partnership agreement with the Department of Housing for three years, with an option for a further two years.
Design recognition awards were won for the Cooloola Sunshine Institute of TAFE, the Southern Queensland Institute of TAFE Horticultural Facility and the Forest Lake State High School.
16.
Services Division comprises Queensland Purchasing, Queensland State Archives, Shared Services and the commercialised business units QFleet, Goprint and SDS. In the latter part of 2004-05, the Offi ce of Government ICT also joined the Services Division. Support areas within the division are Finance, Legal and Contractual, Information Services Directorate and Human Resources.
Queensland PurchasingQueensland Purchasing is the State Government’s lead agency in procurement policy, practice and education.
The division sets whole-of-Government purchasing policy, establishes whole-of-Government procurement arrangements and, through consultancy services and training programs, assists government agencies to put in place cost-effective procurement practices.
Major Achievements and Projects
Queensland Purchasing worked towards the introduction of a whole-of-Government Travel Management System that will cover all aspects of the travel booking and fi nancial process online. The Internet-based system was endorsed by Executive Government in November 2004 and is expected to go live in June 2006.
Travel and travel-related savings will be approximately $25 million over fi ve years and will be generated in three major ways: reduced travel management fees previously paid to travel agents or Internet booking services; increased use of ‘Best Fare of the Day’; and increased use of whole-of-Government accommodation supply arrangements.
Queensland Purchasing’s training and certifi cation system continued to enhance procurement skills across government with 795 registrations received in Queensland and 57 training programs conducted.
With the Shared Service Implementation Offi ce, Queensland Purchasing continued to review major common areas of spending across the government on supplies and services.
Queensland Purchasing worked closely with agencies and shared service providers to develop an electronic approach to whole-of-Government cataloguing and procurement reporting. This approach aims to reduce purchase transaction costs and will lead to the availability of more consistent information on procurement activities.
In its role as a centre of assistance for agencies, the division completed 26 procurement profi les to equip client agencies with a better understanding of their purchasing activity.
Standing-offer arrangements secured savings of $40 million for the Queensland Government. These arrangements covered products and services including fuel used for the government fl eet and bulk fuel, air travel, temporary administration staff, photocopier services, offi ce furniture, safety equipment, motor vehicle rental and furniture removal.
More than $2.8 million was recouped in sales of surplus government equipment on behalf of agencies.
Services Division
Section 1 Our Organisation
Department of Public Works Annual Report 2004 - 05
Queensland State ArchivesQueensland 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 custodian of the largest archival record collection in the State, Queensland State Archives has legislative responsibility under the Act to manage the archival holdings and to provide access to older public records, regardless of where they are stored in Queensland.
Queensland State Archives is the lead agency for government recordkeeping and has authority under the Act to develop and issue recordkeeping policies and guidelines for over 600 public authorities in Queensland.
Through the Act and its accompanying Recordkeeping Information Standards, Queensland State Archives has developed and promulgated a comprehensive recordkeeping policy framework. The framework ensures a consistent approach by public authorities to the creation, management, disposal, storage, preservation and retrieval of government information.
Major Achievements and Projects
Queensland State Archives broke new ground in 2004-05 with the release of the Guideline for the Digitisation of Paper Records, the fi rst publication of its type to be released
by an Australasian archival authority. The guideline provides advice on establishing and operating a scanning program and covers the management requirements for an effective digitisation initiative.
To improve information and records management across the public sector, Queensland State Archives released the Capacity Development Framework and Strategy, which acknowledges that signifi cant cultural change is required to raise awareness of information management issues.
The resource Managing Emails as Records was the fi rst online training module to be developed since the Act was passed. It provides assistance to public authorities to ensure that email records are captured and kept to document business transactions.
A highlight for Queensland State Archives in 2004-05 was the discovery of two founding documents of Queensland that had been undetected for over 100 years in the National Archives of the United Kingdom. Queenslanders can view the documents online at www.foundingdocs.gov.au or see copies at the Queensland State Archives facility at Runcorn or at the Parliamentary Library at Brisbane’s Parliament House.
The fi rst Retention and Disposal Schedule for Queensland Universities was completed
Above:
Discovery of
Queensland’s founding
documents was a
highlight of 2004-05
in June 2005. This was a huge task involving extensive research and consultation by a University Reference Group and Queensland State Archives.
Major transfers included 45 volumes of Local Government Association of Queensland Executive Committee minutes dating back to 1896 and records from the Commission of Inquiry into the Integrity Management Structures within the Three Codes of Racing.
Queensland State Archives’ reference staff served more than 8,000 researchers and retrieved 30,680 records. The Queensland State Archives’ website received 4,284,437 hits.
QFleetQFleet is a self-funded commercially based business. The largest lessor of vehicles in Queensland, QFleet provides services to a client base that includes public sector departments and agencies as well as publicly funded non-government organisations.
Major Achievements and Projects
Environmental concerns remained a high priority for QFleet in 2004-05. The trend of replacing six-cylinder with four-cylinder vehicles and identifying leases for extension within the fl eet continued. QFleet maintained its position as the largest Toyota Prius petrol-electric fl eet lessor in Australia.
QFleet’s South Brisbane Service Centre was re-branded to promote ethanol (E10) and dispensed 256,000 litres of E10 to government vehicles.
In 2004-05, QFleet began undertaking a whole-of-Government Fleet Management Review. The review will identify and deliver initiatives to further improve fl eet management for Queensland Government agencies, as well as deliver savings on a whole-of-Government basis.
A strategic alliance was established with the Centre for Accident Research and Road Safety-Queensland (CARRS-Q). QFleet will provide grant funding for three years for vehicle safety-related research projects and will provide CARRS-Q with access to fl eet data. In return, CARRS-Q will give QFleet access to contemporary safety research.
GoprintGoprint is the Queensland Government’s provider of communication solutions, information management and associated services.
In its key role, Goprint supports government by providing reserved services including the printing and distribution of Queensland legislation, Hansard, Government Gazettes, Ballot and Budget papers and other government information.
Left:
QFleet has 185
petrol-electric vehicles
in its fl eet
Right:
Goprint prints
and distributes
government information
Section 1 Our Organisation
19.
Department of Public Works Annual Report 2004 - 05
Goprint provides commercial graphic design, multimedia, printing, copying, publishing, warehousing, retail and information management services to government agencies.To further improve effi ciency and quality, Goprint is introducing new equipment and technology, changing its organisational structure and reviewing its work practices.
Major Achievements and Projects
Goprint served as lead agency in the Integrated Publication Services Project, part of the Government’s Smart State Initiative. The project aims to provide Queenslanders with improved access to government publications through an effectively integrated and cost-effi cient service. The expected completion date is late 2005.
Goprint worked towards meeting the requirements of the Australian Standard - Environmental Management System. A pre-certifi cation audit was completed and Goprint is addressing the issues that were raised in the audit.
SDSSDS is the Queensland Government’s leading provider of offi ce consumables, equipment and furniture. SDS provides expertise in supply chain management and logistics.
SDS provides services to over 12,000 clients in the fi elds of product identifi cation and assessment, procurement and logistics, warehousing, project and fi t-out management, specialty education and health needs and emergency supplies with a focus on the core government and educational sectors.
SDS has increased effi ciencies through the development of a whole-of-Government warehousing and distribution initiative.
Major Achievements and Projects
SDS played a leading role in developing the fi rst whole-of-Government warehousing and distribution service. SDS and the Department of Main Roads signed an in-principle agreement for SDS to take over the ownership and operations of a warehouse in Brendale. It is based on a fi ve-year Operating Level Agreement between SDS and the Department of Main Roads to provide inventory management, warehousing and distribution services commencing on 1 July 2005. This service is expected to deliver whole-of-Government benefi ts over the next fi ve years including a projected $4.2 million saving.
SDS worked in partnership with Goprint to align existing business models for the transition of Goprint’s publications and retail function to SDS on 1 July 2005. The transfer will allow all government publications to be purchased, managed and distributed from a Publications Distribution Centre. This transfer is expected to provide a streamlined process for clients and to deliver savings to the department.
The SDS online ordering and payment system was upgraded to improve service delivery for clients through using new technologies.
SDS continued its strategic relationship with Education Queensland by establishing a 2-3 year partnership agreement to supply furniture for Queensland’s Preparatory School Year Program.
Offi ce of Government ICTThe Offi ce of Government ICT provides whole-of-Government ICT policy and advice, as well as integrated service solutions for government.
20.
The division facilitates the delivery of ICT infrastructure to support government service delivery. It promotes equitable and cost-effective access to telecommunications in Queensland.
Major Achievements and Projects
In 2004-05, the Offi ce of Government ICT implemented the federally funded Island Watch project to improve telecommunications services for 19 communities in the Torres Strait region. Services included videoconferencing, public Internet access, residential telephone services, ISDN services, community ICT training and funding towards a building program to house the Island Watch infrastructure.
The Offi ce of Government ICT implemented the whole-of-Government SmartNet panel arrangement for data carriage services. This resulted in Optus extending its broadband infrastructure into 30 Queensland regional centres and providing fi bre networks into the central business districts of Cairns, Townsville and Rockhampton. As part of this agreement, Optus is providing $2.1 million to Balkanu, a subsidiary of the Cape York Development Corporation over the next fi ve years for Indigenous employment and training.
The Government Information Technology Contracting Framework version 5 (GITC v5) was implemented, refl ecting the most signifi cant change in Queensland Government ICT procurement since 1994 when GITC version 2 was adopted. GITC v5 is the product of extensive consultation over more than 12 months with government agencies and the ICT industry.
Implementation of a whole-of-Government SmartAccess panel arrangement for the provision of managed telecommunications
will lead to an estimated $17 million annual saving to the Queensland Government in future years.
The Offi ce of Government ICT implemented a whole-of-Government mobile services panel arrangement, resulting in improved mobile coverage along Queensland’s major highways. Agencies will benefi t by annual savings estimated at approximately $3 million.
The Offi ce of Government ICT improved GovNet (the State Government Intranet) to support access to internal Queensland Government ICT infrastructure and services. Frameworks were developed to ensure a secure ICT environment across the Queensland Government. These were the Queensland Government Information Security Strategy, the Queensland Government Authentication Framework and the Queensland Government Information Security Classifi cation Framework.
A Government Enterprise Architecture Framework was released and will be applied across Queensland Government agencies. An associated ICT Planning Methodology was released for use in Queensland Government agencies with agency staff trained in its application.
The Queensland Telecommunications Strategic Framework was developed with the Department of State Development and Innovation. The framework was fi nalised in 2004-05 and will address the need for a coordinated approach to the improvement of telecommunications services in Queensland.
A whole-of-Government Desktop Strategy is being developed to optimise the procurement, management and support of desktops within the government sector. Strategic direction for a Queensland Government mobile computing
Section 1 Our Organisation
Department of Public Works Annual Report 2004 - 05
environment is currently being determined to allow public servants to remotely access government information and services.
Work progressed on an Infrastructure Consolidation Program. An ICT Workforce Capability Plan for Government Employees also progressed to ensure that the public sector workforce has the ICT skills necessary to make best use of ICT.
Information Services DirectorateThe Information Services Directorate provides information services to the Department of Public Works, incorporating ICT services and library and information centre services.
Following a restructure on 1 July 2004, the directorate consolidated eight ICT units to save money and improve the uses of ICT throughout the department.
Major Achievements and Highlights
A Standard Architecture Migration Project (SAM) was established to provide a standard network environment across the department. SAM has reduced the department’s computer servers from 270 to 160 and is contributing to improved performance of ICT services.
The Program Management Offi ce established a framework for governance of key program initiatives and projects across the department.
A computerised system – the Program Initiative and Project Reporting tool (PIPR) – was developed and implemented to monitor and report on ICT and governance projects.
The Information Services Directorate is developing a design for an information system known as Fleetscape for QFleet’s whole-of-Government vehicle fl eet management strategy. The overall architecture for Fleetscape has been completed and the fi rst module delivered.
The directorate supported the delivery of key computer systems and related activities across the department. These included the replacement of SDS’ web-based ordering system and the delivery of a contract administration system used by Works Division to manage the engagement, performance and payment of contractors.
Corporate and Executive ServicesWhole-of-department corporate and executive services support the Department of Public Works.
The services are:Governance and ReviewExecutive ServicesCorporate Planning and External RelationsInternal Audit.
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Major Achievements and Projects
Governance and Review continued to improve the standard of governance and reporting arrangements across the department in relation to corporate reporting of risk and organisational performance.
A review of departmental policies, governance committees, delegations and code of conduct targeted a more integrated and accessible governance framework that supported informed, consistent and accountable decision-making by departmental offi cers.
The implementation of a new program management reporting system (PIPR) now provides senior departmental decision makers with up to date critical information on the status of key projects and programs.
In response to recent global events, a Business Continuity Planning Framework was developed and implemented across the Department of Public Works in order to maintain a level of preparedness and to ensure ongoing delivery of government services. A Business Continuity Policy, Business Continuity Plans and appropriate testing arrangements were established.
The Executive Services Unit was impacted by a number of organisational changes and an expanding policy agenda, resulting in an increase in the complexity and volume of its
responsibility. In response, it implemented an upgraded executive correspondence management system, MinCor Version 4. The unit also implemented a practical strategic development program aimed at building greater internal policy capacity and understanding of executive government and legislative processes.
Corporate Planning and External Relations continued to foster the strong relationship between the department and local authorities throughout Queensland. The department sponsored the Local Government Association of Queensland’s Annual Conference in August 2004 and Local Government Week in June 2005. Support was also provided to the Local Government Managers Australia (Qld) Annual Conference in October 2004.
The export development activities of the department were coordinated and managed by Corporate Planning and External Relations. In 2004-05, the department worked with private sector fi rms to further expand export markets for Queensland and assisted a Brisbane-based fi rm to become a new exporter by supplying computer hardware as part of a larger export order. The department’s total exports for 2004-05 totalled $895,776.
Other international business activities included the provision of project management training courses to the Jiangmen Construction
Above:
The new-look staff
magazine is improving
internal communication
Section 1 Our Organisation
23.
Department of Public Works Annual Report 2004 - 05
Bureau (People’s Republic of China) and the Malaysian Ministry of Education.
Ireland became a new export market for the department with the development of building and construction contracts for the Irish Department of Finance. During the fi nancial year, SDS was awarded a contract to supply school equipment valued at $131,052 to the Nauru Department of Education.
Corporate Planning and External Relations ensured the department maintained a strong community profi le by coordinating participation in major events such as the Royal Queensland Show. Internal communications were improved via a new-look staff magazine, Contact, and by the coordination of an electronic message to all staff delivered by the Director-General over the intranet to employees across Queensland.
The Indigenous policy area continued to promote the department as an employer of choice for Indigenous Queenslanders. Participation in events such as the National Aboriginal Islander Day Observance Committee (NAIDOC) Day continued.
CITECCITEC is a national ICT service provider with about 550 employees located across Australia.
Founded in 1964, CITEC is the second largest Australian-owned information systems outsourcer with offi ces in Brisbane, Sydney, Canberra and Melbourne. As a fully commercialised business of government, CITEC’s clients include local, national and multinational organisations.
CITEC manages three high-security data centres in Brisbane and Sydney and owns, through its
investment company CSI Holdings Pty Ltd, a majority interest in human resource and payroll software developer Aurion Corporation Pty Ltd.CITEC’s services include infrastructure management, applications management, information brokerage, business process outsourcing and associated ICT professional services.
Major Achievements and Projects
CITEC worked with CorpTech to develop a ground-breaking ‘pay-as-you-go’ utility computing model for the provision of communications, processor, storage, backup and recovery and professional services. The three-year agreement will consolidate infrastructure services for government agency legacy SAP and Aurion systems.
CITEC was appointed facilities manager of Education Queensland’s school data network comprising more than 1,300 state primary and secondary schools throughout Queensland. Under this arrangement, CITEC is providing Wide Area Network management and call centre provision and overseeing management of Internet connectivity and services.
During 2004-05, CITEC completed a major project to implement an integrated service management toolset. This gave CITEC’s clients enhanced access to near real-time status, tracking and historical trend information on their critical business systems through CITEC’s secure service portal, myCITEC.
In February 2005, CITEC signed an ICT services contract with Collex Pty Ltd to manage its entire ICT environment. Collex forms part of Veolia Environment, Australia’s largest water and waste services company.
CITEC’s information brokerage service CITEC Confi rm entered into a three-year services
24.
agreement with international business intelligence provider Baycorp Advantage. The fi rst search launched as a result of this partnership was RealtyCheck, which provides instant and low-cost access to accurate property value estimations.
As a host of Aurion’s human resource and payroll management solutions, CITEC was involved in signifi cant contracts, including a fi ve-year $1 million contract to provide business process outsourcing for AMP’s payroll.
In other business:CITEC signed a multi-year contract with EDS Queensland to host the Bank of Queensland’s credit card application.Contracts were renewed with Queensland Health, Ministerial Services within the Department of the Premier and Cabinet, the Department of Employment and Training and the Department of Transport.CITEC secured a fi ve-year contract with Xstrata Copper to manage its IP data network linking nine sites across Queensland and Argentina as well as two Xstrata Zinc sites in the Northern Territory. In November 2004 CITEC was appointed the Australian Broadcasting Corporation’s supplier of a SAP fi nance system application and infrastructure services. Eight CITEC consultants were engaged for a major whole-of-Government project, the Integrated Justice Information System. CITEC Confi rm signed its fi rst international law client – Blake Dawson Waldron – enabling its worldwide employees to conduct information searches from their desks.
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Section 1 Our Organisation
Racing DivisionRacing 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 Projects
During the year, an independent review of the integrity management structures of thoroughbred, harness and greyhound racing codes in Queensland and an independent inquiry into Queensland thoroughbred racing were fi nalised.
An evaluation was conducted into the governance and use of Parklands Gold Coast to optimise its future use as a racing venue and as a major community facility.
Corporate governance training was conducted for all statutory boards under the Racing Act 2002. The Racing Amendment Act 2005 was drafted, providing for the establishment of the Queensland Country Racing Associations, the Queensland Country Racing Committee and
Department of Public Works Annual Report 2004 - 05
the allocation of funding as prize money for country, non-TAB race clubs.
Work progressed on the Offi ce of Racing Regulation’s investigation, analysis and reporting methodology to effectively monitor control body compliance under the Racing Act. The division advised and assisted the Queensland racing industry in its transition to the new legislative framework, including the facilitation of mandatory policy development.
The division monitored and analysed state, national and international developments in wagering and betting markets, in particular cross-border betting and betting exchange responses at a national level.
Existing service level agreements and business plans with racing industry control bodies continued to be managed. Racing Science Centre services to the Queensland racing industry were enhanced.
Progress was made towards obtaining international Quality Management Systems accreditation of the Racing Science Centre to Australian/New Zealand Standard ISO 9001:2000. In addition, the division maintained annual international quality accreditation of the Racing Science Centre to International Standard ISO/IEC 7025 (1999) and management requirements for ISO 9002:1994.
Racing Division contributed to the ongoing improvement of animal welfare practices and provided support to the Racing Animal Welfare and Integrity Board. Strategic monitoring and analysis of state, national and international developments in animal welfare continued.
26.
Section 1 Our Organisation
27.
Department of Public Works Annual Report 2004 - 05
Locations
Department Head Offi ce80 George StreetBrisbane Queensland 4000GPO Box 2457Brisbane Queensland 4001Phone (07) 3227 7111
5 Traders Way, SunsetMt Isa Queensland 4825PO Box 1659Mt Isa Queensland 4825Phone (07) 4747 2766
Fax (07) 4747 2777
29.
Department of Public Works Annual Report 2004 - 05
South Coast
Suite 31, Level 5Town Square Offi cesRobina Town Centre DriveRobina Town CentreQueensland 4230PO Box 3156Robina Post ShopRobina Town CentreQueensland 4230Phone (07) 5583 1900
As part of the organisational restructure the Publications and Retail unit of Goprint, including the Bookshop, will be integrated into SDS from 1 July 2005.
Agents for Bookshop
SDS Express
Ground FloorMineral House41 George StreetBrisbane Queensland 4000
Section 1 Our Organisation
Department of Public Works Annual Report 2004 - 05
33.
Our Commitmentssection 2
34.
Section 2 Our Commitments
Vision, Mission, Values
Our VisionTo be recognised as the partner of fi rst choice in providing support services to government in Queensland and to promote and maintain integrity within the racing industry.
Our MissionTo provide leadership by partnering with stakeholders to identify and provide the legislation, policies, products and services needed to deliver government outcomes.
Our ValuesIn December 2004, seven new organisational values were adopted following extensive 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; that encourages teamwork to achieve the strategic direction; that is visible and consistent; that leads by example; and that allows management and employees to be partners.
Encouragement – in career progression, in 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 Public Works and its clients.
A working party of staff from across the department developed strategies that helped to embed the values into our organisational processes and operations.
Department of Public Works Annual Report 2004 - 05
Our ClientsThousands of Queenslanders use the public facilities, services and systems the Department of Public Works helps design, supply and maintain through its Works and Services Divisions.
Clients include government departments, agencies, statutory authorities, local councils, schools, non-government organisations that receive government funding, and the information and communications technology industry.
Racing Division works closely with industry statutory control bodies including Queensland Racing, the Queensland Harness Racing Board and the Greyhound Racing Authority, as well as other industry statutory bodies and government departments.
CITEC customers come from over 3,000 organisations in the areas of professional and fi nancial services, insurance and fi nance, government, manufacturing, utilities and resources.
Left:
The multi-award
winning Cooloola
Sunshine Institute
of TAFE
Right:
SDS provides services
to over 12,000 clients
36.
Works DivisionProject director for signifi cant major building and infrastructure projectsBuilding and built environment researchProvision and management of government accommodationBuilding policy and adviceFostering government, industry and trade union relationshipsIndustry supplier base developmentStrategic asset management.
Project Services
Project, risk and asset managementBuilding design and documentationCost planning and managementContract managementBuilding surveying and certifi cationProperty services and developmentInterstate and international consultancy.
Procurement policy, advice and trainingWhole-of-Government purchasing arrangementsAgency-specifi c assistance and adviceProcurement consultancy services and assistance with procurement planningElectronic procurement: research, advice and toolsSupply of market intelligence and procurement profi lingAsset disposalSecond-party quality assurance certifi cation programWhole-of-Government procurement information services.
Queensland State Archives
Whole-of-Government guidelines and standards for the management of public recordsAdvice for government on strategic information management issuesAssisting government employees to comply with the Public Records Act 2002 and Recordkeeping Information StandardsManagement and preservation of, and access to, Queensland’s archival public records collectionPublic seminars, road trips, exhibitions, displays, forums and workshops.
SDS
Offi ce consumables, equipment and furniture supply including interior design and project management servicesSpecialist education equipment and furniture supplyIntegrated logistics solutions including procurement, whole-of-Government warehousing and distribution servicesRetail sales of government information and offi ce consumables.
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Our Client Services
Section 2 Our Commitments
37.
Department of Public Works Annual Report 2004 - 05
Goprint
Creative design servicesPrinting and copying servicesMultimedia and Internet-based products and servicesPublishing, warehousing and retail services.
QFleet
Motor vehicle leasing and strategic fl eet managementShort-term vehicle hireMotor vehicle auctions.
Offi ce of Government ICT
Strategic leadership in the delivery and governance of ICT issues across the government sectorCoordination of the whole-of-Government Intranet, GovNetSeamless and improved government service delivery through the use of technologyCoordination of whole-of-Government telecommunications expenditure to ensure improved telecommunications infrastructure and servicesAdvice on procurement of ICT products and servicesFunding opportunities for not-for-profi t organisations to deliver computer training to people disadvantaged in access to ICT trainingInvestigation of emerging technologies.
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CITECInfrastructure managementICT professional services consultingApplications management and business process outsourcingInformation brokerage.
Racing DivisionImplementing and monitoring a regulatory and policy framework that devolves responsibility for self-management to the Queensland racing industryFacilitating the racing industry’s transition to regulation under the Racing Act 2002Monitoring compliance with the Racing Act 2002Researching and monitoring international, national and state developments and trends in racing, wagering and related industriesProtecting the integrity of the racing industry through provision of drug testing and other scientifi c services.
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The $135 million
Brisbane Magistrates Court was delivered on time and within budget
38.
39.
Department of Public Works Annual Report 2004 - 05
Meeting Government PrioritiesImproving health care and strengthening services to the community
Supporting Health Services
Project Services provides a signifi cant professional consultancy role to Queensland Health in the delivery of its capital works program. The business unit refurbished and refi tted the Gold Coast Hospital Cardiac Catheter Unit and the Mental Health Ward, ensuring the continued delivery of hospital services during the works process. Project Services also worked on the Gympie Hospital’s new Clinical Services Building and the relocation and refurbishment of the Nambour Hospital Breast Screen Unit.
CITEC enabled health care systems in Queensland hospitals through infrastructure support and network management.
SDS assisted aged-care organisations by providing health care products in a more effi cient manner by streamlining the supply chain through partnership with a major supplier.
Better ICT Services
Under the NorthernNet and OutbackNet programs, the Offi ce of Government ICT assisted Queensland Health to implement federally funded broadband infrastructure projects in remote parts of Queensland.
Under the Island Watch project, the Offi ce of Government ICT utilised federal funds to implement telecommunications services in 19 communities in the Torres Strait region.
The Queensland Telecommunications Strategic Framework was developed as a collaborative project between the Offi ce of Government ICT and the Department of State Development and Innovation. It will improve telecommunications services in Queensland to obtain maximum benefi t for the community and business.
Better Access to Information
Through CITEC Confi rm, the community had access to 40 databases of information, largely from government agencies. The service provides access to everything from land title information across all states and territories, to Baycorp Advantage reports and Queensland contaminated land and environmental management registers.
Queensland State Archives continued to provide the community with access to the State’s historical and cultural records. With Queensland-based software company Technology One, Queensland State Archives continued to develop Archives One, a software application aimed at improving the management of public access to the collection. More Community Facilities
Queenslanders gained additional court facilities with the offi cial opening of the $135.5 million Brisbane Magistrates Court on 16 November 2004.
The Mackay Convention Precinct will comprise multi-purpose facilities capable of delivering many regional economic, community and lifestyle benefi ts.
Supporting our Schools
SDS assisted schools damaged by fi re and other disasters by supplying furniture and offi ce consumables within 24 hours where necessary.
40.
Emergency Response
Following storms in south-east Queensland in November 2004 and May 2005, QBuild provided an emergency response by assisting with cleanup and effecting repairs. During Tropical Cyclone Ingrid in March 2005, QBuild provided assistance by effecting building modifi cations necessary to provide emergency community shelters during the impact of the cyclone.
During the citrus canker outbreak in central Queensland, QBuild assisted the Department of Primary Industries to coordinate resources required for the destruction and disposal of affected fruit and trees.
Asbestos Safety
The Works Division led a review to improve the management and control of asbestos in Queensland Government buildings. More than $1 million was spent in 2004-05 to remove asbestos containing materials from Government buildings.
Security Services
During 2004-05, QBuild – through the State Government Protective Security Service – provided security services at approximately 1,100 government owned buildings and 862 state schools across Queensland. In addition, security services were provided to 88 Catholic schools. The services provided include alarm monitoring and response, mobile patrols, School Watch contact point and security risk analysis.
Safe School Products
SDS worked with Education Queensland to develop products that met all safety requirements and were fi t-for-purpose.
Blue Cards
All staff working in the Education Queensland Facilities Management Offi ce at CITEC took part in a Working with Children Check and were issued with a ‘blue card’ to ensure compliance with the Commission for Children and Young People and Child Guardian Act (2000).
Helping Other Departments
Project Services provided full professional services for delivering all capital works projects for the Department of Child Safety. The business unit also assisted the Department of Housing by incorporating accessible and safe housing design elements into public housing.
Safe Driving
QFleet continued to actively encourage safe driving with the appointment of a safety manager who is responsible for fl eet client road safety.
In partnership with the Centre for Accident Research and Road Safety - Queensland (CARRS-Q), QFleet is participating in a fi ve-year research program aimed at reducing trauma resulting from serious traffi c incidents in rural and remote areas of Australia. Research fi ndings will be used to develop and implement intervention strategies.
QFleet continued to work with CARRS-Q and the Queensland University of Technology through a PhD student, researching ‘work-related road safety countermeasures in a large fl eet’.
Protecting our children and enhancing community safety
Section 2 Our Commitments
QBuild helped to restore heritage-listed buildiings
at Wooloowin State School following a fi re
41.
42.
Recycling
A trial was undertaken to supply bins at QBuild depots and large job sites for the disposal and recycling of waste materials. QBuild reduced the impact on the environment by ensuring that less waste materials were deposited into landfi lls.
SDS introduced a cardboard and plastic fi lm recycling initiative. This initiative will recycle all cardboard and plastic fi lm waste previously placed into landfi ll.
Environmental Sustainability
The Rockhampton Research House continued to be used as an example of an energy-effi cient home embodying universal design concepts.
Work continued on the development of improved, environmentally friendly barriers to termites for housing and timber products – a collaborative project involving the Department of Public Works, the Department of Housing, Queensland Health, The University of Queensland, Griffi th University and industry partners.
The department continued developing a national building products life cycle eco-assessment database in collaboration with the Cooperative Research Centre for Construction Innovation.
Energy Effi ciency
The Government Energy Management Strategy (GEMS) reduced government consumption of energy and water. Savings in government expenditure on energy for 2004-05 exceeded the target of $2 million.
Thermal Comfort Initiative
This program addressed the need for achieving comfortable temperatures in Queensland schools and other government facilities in
a cost-effective, energy-effi cient manner. A major achievement was the development and trial of a hybrid air-conditioning system including solar-powered variants.
Reducing Paper Usage
Goprint assisted government clients to rationalise paper-based communication products to reduce environmental impact by actively encouraging the use of recycled stocks, environmentally friendly inks and print processes.
Petrol-Electric Vehicles
QFleet’s trend of replacing six-cylinder vehicles with four-cylinder vehicles within the fl eet continued. The number of Toyota Prius Hybrid petrol-electric vehicles increased to 185, maintaining QFleet’s position as the largest Prius fl eet lessor in Australia.
Tree Planting
QFleet remains the country’s largest subscriber to the national non-profi t environmental program, Greenfl eet. Tree planting under the Greenfl eet program continued, with net plantings reaching 242,000.
Getting Back to Nature
Infrastructure and Major Projects managed Oxley Creek Common, a space for nature conservation, learning and interpretation. Oxley Creek Common’s environment centre was used by local community groups and schools as a place to study the natural characteristics and history of the area.
Ethanol Usage
As part of the State Government’s plan to develop a sustainable Queensland ethanol industry, Queensland Purchasing worked closely with the fuel industry to further encourage the distribution of E10 throughout Queensland’s service station network.
Protecting the environment for a sustainable future
Section 2 Our Commitments
Department of Public Works Annual Report 2004 - 05
Growing a diverse economy and creating jobs
Subcontractor Opportunities
QBuild contracted around 63 per cent of its work in construction, maintenance, security, cleaning, horticulture services and community service obligations to the private sector. This created signifi cant business opportunities for subcontractors and suppliers.
Apprentices
QBuild continued as one of the State’s largest employers of apprentices, taking on 95 apprentices in 2005.
Indigenous Opportunities
QBuild employed two of the apprentices who worked on the Palm Island/Colgaree Community Employment Project Scheme as temporary fi eld staff within the Palm Island Depot. Ten additional apprentices engaged on Palm Island progressed to stage two of their apprenticeships.
CITEC Graduates
Since 1994, CITEC has employed 182 graduates, with 80 still employed. This year CITEC took on four graduates.
Boggo Road Precinct Redevelopment
The ongoing development of the new Australian Ecosystems Science Precinct as part of the Boggo Road Precinct is expected
to deliver major economic and social benefi ts by ensuring commercial development has the opportunity to occur locally.
More Jobs for Mackay
The construction and operation of the Mackay Convention Precinct project will provide business opportunities and jobs in Mackay and is expected to act as a catalyst for redevelopment and rejuvenation of the Mackay city centre.
Left:
QFleet is the largest
Toyota Prius fl eet
lessor in Australia
Right:
Working behind bars:
the former Boggo
Road Gaol
44.
Expanding Markets
The Department of Public Works contributed to Queensland’s economic growth by assisting industry to expand into interstate and international markets as part of the government’s Trade Strategy – Export Solutions.
Community Engagement
The department actively engaged communities in government decisions and processes. The community was consulted throughout major projects such as the development of the North Bank strategic plan and the planning phase of the Rockhampton Riverbank Redevelopment.
Queensland Purchasing launched a new and ongoing regional client network program to achieve a better understanding of client purchasing requirements. Over 500 government buyers attended information and networking sessions across Queensland.
Integrating Government Services
The Offi ce of Government ICT worked on the Smart Service Queensland initiative, in conjunction with the Department of Communities, to deliver integrated government services.
CITEC worked with CorpTech to develop a ground-breaking, pay-as-you-go computing model that consolidates infrastructure services for government agency fi nance, human resource and payroll systems. The model is expected to provide signifi cant savings, with a saving of $3.5 million identifi ed in its fi rst year of operation.
Eight CITEC consultants were engaged for a major whole-of-Government project, the Integrated Justice Information System. This system is a sector-wide information sharing mechanism which will ultimately allow authorised staff in participating agencies to
use information held by all other participating agencies via a single interface.
A whole-of-Government Fleet Management Review project is being undertaken as part of the Queensland Government’s Integrated Service Delivery initiative. It is examining all fl eet assets owned or managed by QFleet, identifying opportunities to deliver savings to government and further improve processes and asset performance.
Implementing Smart Directions
The Offi ce of Government ICT began to implement the Queensland Government’s new policy agenda known as the Smart Directions Statement. Actions identifi ed in the statement will ensure that government agencies work together and with industry, leading to better Smart State services for Queenslanders.
Racing Integrity
The Racing Division provided a framework for the regulation of the Queensland racing industry, leading to improved integrity and public confi dence that the industry is being operated in an accountable and responsible manner.
Amendments to the Racing Act 2002 ensured that regional communities are now represented in decisions regarding country racing.
Section 2 Our Commitments
Delivering responsive government
Department of Public Works Annual Report 2004 - 05
Realising the Smart State through education, skills and innovation
Travel Management
Queensland Purchasing’s Travel Management System, developed in 2004-05, is unique in Australian corporate travel arrangements. By reducing the red tape and paperwork, and covering all travel-related booking and fi nancial needs, the system will improve the overall effi ciency of travel booking and fi nancial processes for the Queensland Government.
Solar Cell Research
The Centre for Accident Research and Road Safety (Queensland) and Central Queensland University continued to utilise QFleet data to further solar cell research.
Improving ICT Use
A Standard Architecture Migration Project introduced by the Information Services Directorate is improving uses of ICT throughout the department to support delivery of its outcomes and contribute towards achievement of the objectives of Queensland Government’s Smart Directions Statement.
Technology Survival Skills
The Technology Survival Skills (TSS) Program encouraged communities disadvantaged by limited access to computers to gain skills, pursue employment and training
opportunities, and take advantage of online products and services. The third round of TSS was launched, with many applications submitted.
Island Watch
The Island Watch project provided enhanced and affordable telecommunications to the Torres Strait Island region to better meet the community’s education, employment, training, socio-economic, cultural and linguistic needs.
Balkanu Training
As part of the Offi ce of Government ICT’s SmartNet agreement, Optus is providing $2.1 million to Balkanu, a subsidiary of the Cape York Development Corporation, over the next fi ve years for Indigenous employment and training.
Above:
Queensland
Purchasing worked
toward improving
travel management
processes
Managing urban growth and building Queensland’s regions
Building Contracts
Project Services ensured that all government objectives for building Queensland’s regions were incorporated into its building contracts. Project Services provided expert advice on town and urban planning to clients.
Regional Offi ce Network
QBuild maintained a regional presence in 11 areas of Queensland. Services were delivered from more than 40 offi ces and depots, and approximately 36 per cent of QBuild’s total workforce was located outside South East Queensland.
Mobile Services
The Offi ce of Government ICT implemented the whole-of-Government mobile services panel arrangement to improve mobile coverage along Queensland’s major highways. Telstra built an additional nine Code Division Multiple Access base stations and Optus constructed up to 80 additional Global Systems for Mobiles base stations.
Connecting with Networks
The whole-of-Government SmartNet panel arrangement for data carriage services resulted in Optus extending its broadband infrastructure into 30 Queensland regional centres and providing fi bre networks into the central business districts
of Cairns, Townsville and Rockhampton. CITEC delivered a Wide Area Network to Education Queensland that provided network connectivity to more than 1,300 schools and offi ces spread across a vast geographical area.
Regional Trader Program
SDS continued the program across Queensland to support the ‘Buy Local’ policy by actively using and promoting Queensland and national suppliers.
Offi ce Supply Strategy
Queensland Purchasing developed a whole-of-Government strategy to ensure that agencies and shared service providers achieve maximum value from their procurement of offi ce supplies. The strategy, a Shared Service Procurement Improvement Initiative, was the result of extensive statewide consultation with agencies and industry.
Section 2 Our Commitments
47.
The Rockhampton Riverbank Redevelopment
will beautify the area around the Fitzroy riverbank and improve access to the river
48.
Community Engagement
The North Bank Strategic Plan was developed in partnership with stakeholders and the broader community. The community had the opportunity to provide comments on planning options at a public display, stakeholder briefi ngs and one-on-one meetings, or via feedback forms. Over 100 individuals and 20 industry and government groups made formal submissions and a second consultation period was then held on the preferred option.
The Rockhampton Riverbank Redevelopment will beautify the area around the Fitzroy riverbank and improve access to the river. A community consultation program into the development was held from September to December 2004 and included a website, public displays, call for public submissions, stakeholder interviews and a free infoline. There were 643 written responses received and the website had 4,599 hits at 30 June 2005. The community continues to receive project update information and invitations to further consultations.
Works Division conducted the ‘Wayfi nding’ project through the Cooperative Research Centre for Construction Innovation. By seeking to address the problem of unaided access to government buildings and facilities, the project will benefi t the general public and particularly visually impaired people.
Queensland Purchasing held government purchasing forums across the State, allowing government buyers and suppliers to provide feedback to the State Purchasing Advisory Council about issues concerning government purchasing in their region.
Queensland State Archives conducted seminars in Townsville, Charters Towers, Bowen, Warwick, Stanthorpe, Goondiwindi, St George and Ingham on using the
archival collection. The State Archivist held information sessions for researchers during the year.
CITEC actively participated in the community by sponsoring organisations and initiatives that enhanced local communities. In 2004-05, CITEC supported the Queensland Theatre Company and Young Achievers Australia.
Amendments to the Racing Act 2002 provided for the establishment of eight Queensland Country Racing Associations and a Queensland Country Racing Committee, ensuring that regional communities are represented in decisions regarding country racing.
Section 2 Our Commitments
Department of Public Works Annual Report 2004 - 05
49.
Our Peoplesection 3
Section 3 Our People
50.
Staff Numbers
Director-General’s Offi ce 3Deputy Director-General’s Offi ce 5Executive Services 11Corporate Planning and External Relations 15Governance and Review 14Racing Division 28CITEC 529
Works Division
Project Services 608QBuild 2,510Infrastructure and Major Projects 11Built Environment Research Unit 22Industry Policy Unit 19Portfolio and Housing Unit 46Government Offi ce Accommodation Unit 42Business Support Unit 28
Services Division
Offi ce of Government ICT 73Finance 8Goprint 150Information Services 65Legal and Contractual 22Human Resources 23QFleet 114Queensland Purchasing 50Queensland State Archives 49SDS 110Shared Services 2
TOTAL 4,557
Staff numbers are full-time equivalent, rounded to 4,557 as at 30 June 2005
Department of Public Works Annual Report 2004 - 05
Voluntary Early RetirementsDuring 2004-05, the Department of Public Works approved 36 voluntary early retirements for $1,583,574 in severance
payments. All early retirements were offered to staff identifi ed as surplus to operational requirements.
Performance ManagementPerformance 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.
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. A similar reporting process was adopted for fi nancial performance.
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.
Above:
SDS played a leading
role in developing a
whole-of-Government
warehousing initiative
Code of Conduct training continued to be provided to all departmental staff.
All new staff members receive comprehensive Code of Conduct training that outlines the common guiding principles and standards of conduct for all departmental staff. The Code of Conduct is based on the principle that behaving ethically is central to achieving the department’s purpose and supporting its values.
The Code of Conduct is available to staff on the departmental intranet and as a concise pocket guide. Human Resources monitors the application of the Code of Conduct.
Administrative procedures and management practices within the department are consistent with the ethics and obligations of public offi cials and the Code of Conduct.
The Code of Conduct will be revised in 2005, with an updated Code of Conduct and training made available to all staff in the 2005-06 fi nancial year.
Left:
The Code of Conduct
is readily available
on the intranet
Right:
Blue cards were issued
to some CITEC staff
Section 3 Our People
Code of Conduct
Department of Public Works Annual Report 2004 - 05
Above:
Training was targeted
across all areas of
the department
Training and Development Learning and development initiatives were undertaken by all business units and divisions of the Department of Public Works during 2004-2005.
Training was targeted at all levels and covered all diversity groups. Examples in the area of diversity included leadership skills training for women and cultural awareness training in regions such as Mt Isa, Cairns, Townsville, Palm Island, Mackay and Rockhampton.
The Department of Public Works continued its involvement in the Senior Executive Service Mobility Program, the Australia New Zealand School of Government (ANZSOG) Executive Masters Program and the Public Sector Management Program. Subsidised study opportunities and support continued through the Study and Research Assistance Scheme and the Public Sector Training Package. Common areas of training across the department included procurement, communication, client services, information technology, health and safety, leadership and supervisory management development. Specifi c and technical training was delivered
by individual business units or divisions. For example, QBuild provided training in Backfl ow Prevention, Estimating Procedures, Buildsoft and Quote Tracking system, Restricted Electrical Training and Electrical Installation Testing.
In addition, QBuild conducted a Workplace Communication Program designed to improve the communication skills of offi ce and fi eld-based employees. The program involved the placement of 12 specialist workplace communication teachers from various TAFE colleges in 12 regional offi ces. Teachers provided specialised language, literacy and numeracy training for 936 offi ce and fi eld staff.
Work progressed
on the Millennium Arts Project at the Queensland Cultural Centre
54.
55.
Department of Public Works Annual Report 2004 - 05
Employment Initiatives
Graduates and cadetsUnder the Graduate Employment Program, the Department of Public Works took on generic and specialist graduates from such fi elds as information technology, project management, engineering and architecture.
At the end of June 2005, the department had 26 graduates and three cadets, exceeding the numbers employed during 2003-04.
TraineesFor the past fi ve fi nancial years, the Department of Public Works has achieved its trainee quota under the Breaking the Unemployment Cycle initiative, providing 327 traineeship opportunities. In 2004-05, 44 traineeships were provided.
Within this quota, the department achieved its traineeship targets to engage 50 per cent women. The department also employed trainees in the category of Aboriginal and Torres Strait Islanders, people with disabilities and people from non-English speaking backgrounds.
TraineesTarget Group Public Sector Target* Achievement as at 30 June 2005
Women 50% 67.5%Aboriginal and Torres Strait Islanders 10% 2.5%People with disabilities 5% 2.5%People from non-English speaking backgrounds 5% 2.5%
*Public Sector Target for 2004-05
ApprenticesAt the end of June 2005, the Department of Public Works had 348 apprentices on its books, with 342 at QBuild. QFleet and Goprint also employ apprentices.
QBuild took on 95 new apprentices in early 2005. The intake included 55 new full-time apprentices, eight new full time Indigenous apprentices, 22 continuing school-based apprentices who converted to full-time apprenticeships, fi ve new school-based apprentices and fi ve new Indigenous school-based apprentices.
56.
The Department of Public Works continued to support the Diversity Management Plan (2003-2005), Strategic Frameworks for the Employment of People with a Disability (2002-2007) and Strategic Framework for the Employment of People from Diverse Cultural and Linguistic Backgrounds (2003-2007).
As part of the Indigenous Employment and Development Strategy, the department sponsored six students on the Education to Employment scheme, two cadets on the National Indigenous Cadetship Project and two employees on the Advancement Program. The department has over 100 Indigenous staff working throughout Queensland.
Cultural awareness training was delivered to regional offi ces where Indigenous staff from the Aboriginal and Torres Strait Islander Unit had been transferred from the Department of Housing. Phase two of this training will be rolled out in August 2005.
The department continued its involvement in the Migrant Work Experience Program with three placements during 2004-05.
In May 2005 a Multicultural Committee was launched. The committee is developing an action plan to identify key priorities and outcomes to ensure the department meets the new Government Multicultural Policy, launched in January 2005.
The department participated in NAIDOC Day and in Multicultural Fairs in Brisbane and Rockhampton. Queensland State Archives co-hosted an Italian-focused stall with National Archives Australia and the State Library of Queensland at the Ingham Multicultural Fair in May 2005. Archives actively promoted the contribution of cross-cultural groups to Queensland’s history.
The Department of Public Works encouraged women working at all levels to pursue career goals. The department’s Women in Works Committee launched an intranet site to promote its activities including professional development seminars, professional mobility programs and research into work-life policies. The department sponsored the award category ‘Women in the Public Sector’ for the 2004 Smart Women – Smart State Awards.
Project Services continued to engage women in all areas of the design and construction industry. CITEC retained its membership of Women in Technology, a Queensland initiative which aims to sustain an active network of members focused on enhancing women’s participation in technology industries.
The newly established Network for People with a Disability continued to raise disability awareness.
Supporting Diversity
Section 3 Our People
Department of Public Works Annual Report 2004 - 05
At the end of 2004-2005, the department’s equity statistics were:
Equity TargetsTarget Group Target Actual as at 30/06/05
Women in Senior Management 25% by end 2005 25.0%(SES/SO positions)Women in Management 20% by end 2005 24.69%(AO6 level positions and above)Aboriginal 2% by end 2005 2.61%and Torres Strait Islanders People from non–English 13.5% by end 2005 9.77%speaking backgroundsPeople with a disability 10% by end 2005 7.03%
Above:
QBuild took on 95
new apprentices in
early 2005
58.
Workplace Health and Safety
As a part of the government’s Safer Workplaces initiative, the department worked with the Department of Industrial Relations to undertake an independent audit of the system elements of workplace health and safety management. The audit results have been delivered and the Department of Public Works is determining its actions concerning the recommendations.
The department trialled the establishment and implementation of an early intervention centre to initiate a rapid response information and intervention strategy in the case of injury. This is a part of the departmental plan for improved claims management and rehabilitation practices.
Pathways to Better Health and Safety
During 2004-05, the main focus within the Pathways to Better Health and Safety Program was on:
Developing a Health Risk Mitigation Plan. This involved determining those health improvement initiatives that would offer the department the best return on investment.Completing the roll-out of the health assessments to Racing Division, Queensland State Archives, CITEC and the Offi ce of Government ICT. A participation rate of 35% was achieved.Conducting fl u vaccinations - approximately 1,300 employees participated, increasing from 1,133 participants last year.Commencing a further round of comprehensive health assessments for offi cers in high health risk areas or roles.
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Section 3 Our People
59.
Safety fi rst at
the Department of Public Works
Reward and RecognitionWhole-of-department awards include the annual Recognition of Excellence Awards and the Recognition of Long Service Awards for employees who have served the department for 25 years and over.
The department also links with external award programs, including the Public Service Medal, Australia Day Achievement Medallions and the Premier’s Awards for Excellence in Public Sector Management. In January 2005, 25 staff received Australia Day Medallions for their outstanding contributions to the department.
The Built Environment Research Unit, in conjunction with the Queensland University of Technology, took out an award in the 2004 Premier’s Awards for Excellence in Public Sector Management for work in the fi eld of air quality research.
John Scrivens, Director Legal and Contractual, received a Public Service Medal in the Order of Australia Honours in June 2005. He was awarded the medal for outstanding public service to the Queensland Government’s major building capital works program.
In December 2004, Roma Street Parkland’s Garden Coordinator Paul Hoffman won the prestigious Queensland Horticulturalist of the Year Award in recognition of his outstanding horticultural expertise and workmanship.
CITEC’s 2003-04 Business Report won a silver award in the 2004 Australasian Reporting Awards. This award is designed to promote excellence in annual reporting and to create public awareness of valid and objective measures of performance.
Above:
The department
recognises good
work through an
integrated reward
and recognition system
Section 3 Our People
Department of Public Works Annual Report 2004 - 05
61.
Our Corporate Governancesection 4
62.
Corporate Governance
Under the existing departmental governance framework, the Corporate Governance Board provides stewardship for the department. Governance committees provide assistance to the Corporate Governance Board. An Audit Committee gives advice as required to the Director-General.
The Corporate Governance Board meets monthly to provide strategic direction and to consider policy, plans, strategies and projects.
An Executive Committee focuses on achieving communication and information sharing throughout the department. During the fi nancial year, membership of the Executive Committee was expanded to acknowledge structural changes within the department and to include regional representation.
The Director-General chairs the Corporate Governance Board and the Executive Committee.
Section 4 Our Corporate Governance
Department of Public Works Corporate Governance framework
Heritage detail at
Wooloowin State School
63.
64.
Director-General
Mal GriersonBEcon, MPubAdmin
Mal was appointed Director-General in October 1998.
He had previously held numerous senior Queensland Government positions, with extensive involvement with the private sector in the areas of information technology and building construction.
Mal is a member of the Institute of Public Administration Australia and the Australian Computer Society, and is 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. Max is responsible for the Works’ Division incorporating the various policy and property management branches from the former Building Division, Infrastructure and Major Projects and the Project Services and QBuild commercialised business units.
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 Commonwealth 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 is a Fellow of the Institute of Engineers – Australia, a Registered Practising Engineer in Queensland and a Fellow of the Australian Institute of Company Directors and the Australian Institute of Building.
Corporate Governance Board
Section 4 Our Corporate Governance
65.
Department of Public Works Annual Report 2004 - 05
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.
He brings to the position extensive experience in public sector management.
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, Finance
Tony WoodwardBBus (Accountancy), MFinPlan, FCPA
A qualifi ed accountant, Tony has more than 30 years’ private and public sector experience in fi nance and information technology.
He was appointed to this position in May 1994.
Tony is responsible for fi nance and budget policy and planning across the department.
66.
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 Commonwealth and Queensland public sectors.
Stephen is responsible for the department’s human resource management, industrial relations, organisational development and change management functions.
Director, Corporate Planning
and External Relations
Malcolm McMillan
Malcolm has held senior executive positions in different agencies of the Queensland public sector since 1971.
He heads the department’s corporate planning, corporate marketing communication, international business, market research, community engagement, intergovernmental relations and Indigenous affairs initiatives.
Section 4 Our Corporate Governance
Department of Public Works Annual Report 2004 - 05
Director, Governance and Review
Robyn TurbitBCom, BEcon, MIIA
Robyn was appointed to the position of Director, Governance and Review, on 25 November 2004 having previously held 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.
67.
68.
69.
Department of Public Works Annual Report 2004 - 05
Mal Grierson Director-GeneralMax Smith Deputy Director-General, WorksTony Waters Deputy Director-General, Services
Alex Nicholson A/General Manager, SDSAllen Cunneen Director, Regional Queensland GroupBob Hunt General Manager, GoprintBruce Grady General Manager, QFleetBryan Quant Chief Information Offi cer, Information Services DirectorateChris Davidson Manager, Corporate Marketing CommunicationCraig Carpenter Executive Director, Technical ServicesDale Gilbert Director, Built Environment Research UnitDeborah McLeod Senior Business Advisor, Project Governance and ReviewDon Allan Director, Industry Policy UnitEvelyn Jelliffe Director, Queensland PurchasingFiona Wright Director, Shared ServicesGavin Litfi n Executive Director, Infrastructure and Major ProjectsJanet Prowse Director and State Archivist, Queensland State ArchivesJohn Scrivens Director, Legal and ContractualJohn Spinaze Assistant Director-General, Offi ce of Government ICTKaren Lyon-Reid Director, Government Offi ce Accommodation UnitKeith Eaton General Manager, Project ServicesKeith Farr General Manager, QBuildKylie Fernon Manager, Audit OperationsMalcolm McMillan Director, Corporate Planning and External RelationsMike Kelly Executive Director, RacingPeter McKenna Executive Director, Business Strategy and DevelopmentRobyn Turbit Director, Governance and ReviewRon Gibbons Director, South East Queensland GroupSelwyn Clark Director, Portfolio and Housing UnitStephen Long Director, Human ResourcesSue Wright Director and CLLO, Executive Services UnitTerry Kelly Regional Director, North QueenslandTony Skippington Managing Director, CITECTony Woodward Director, Finance
Executive Committee Members
70.
Governance CommitteesGovernance committees report directly to the Corporate Governance Board.
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:
Reviewed the fi nancial performance of the department’s business areas and provided advice to the Corporate Governance Board and the Director-General.Monitored the department’s progress on signifi cant fi nance-related issues such as preparing Annual Financial Statements and the annual and mid-year budget processes.Commenced the implementation of the department’s transition to the newly introduced International Financial Reporting Standards.Monitored issues arising from Internal Audit and Queensland Audit Offi ce audit reports.
Risk Management CommitteeChair: Director, Governance and Review
Identifi es and reports areas of risk exposure to the Corporate Governance Board. Develops and manages the department’s risk-management policy and plans and distributes information on risk-management priorities.
Achievements:
Monitored the department’s risk-assessment and risk-mitigation approach.Undertook a workshop to review and enhance the existing enterprise-wide risk-management framework.Further refi ned the in-house developed software to enhance risk management.
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Used risk-management software to support the enterprise-wide risk-management framework.
Information Steering Committee (DPW-ISC)Chair: Deputy Director-General (Services)
Ensures that 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 the establishment of a single ICT organisation for the department, migrating from the previous multiple units.Oversaw the establishment of a Program Management Offi ce incorporating revised departmental ICT project management and reporting standards.Endorsed the department’s ICT Strategic Plan for 2004-05 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 of Public Works.
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Section 4 Our Corporate Governance
71.
Workplace Health and Safety Peak CommitteeChair: Deputy Director-General (Works)
Checks and reports on issues on workplace health and safety and ensures a coordinated approach to managing workplace health and safety activities and projects.
Achievements:
Made signifi cant progress on the Pathways to Better Health and Safety Program including the development of a Health Risk Mitigation Plan and commencement of rolling out health assessments to the new areas of the department.Initiated a third-party audit of the department’s Safety Management System, in conjunction with the Department of Industrial Relations. Recommendations will form the foundation of the department’s strategic approach to workplace health and safety.
•
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Audit CommitteeChair: 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 had due regard to Queensland Treasury’s Audit Committee Guidelines.
Achievements:
Endorsed the risk-based 2004-05 Internal Audit Plan.Endorsed the Special Review Team 2004-2005 Internal Audit Plan.Endorsed the Audit Committee Terms of Reference.Monitored Internal Audit Performance against the approved 2004-05 Plan targets.Checked the resolution of prior-period Queensland Audit Offi ce audit issues.Reviewed audit reports (moderate and high-risk fi ndings) and action taken to address these fi ndings.
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Above:
Forklift operator at
the SDS warehouse
in Zillmere
Section 4 Our Corporate Governance
Department of Public Works Annual Report 2004 - 05
73.
Other Reportingsection 5
74.
Women in Works Committee Chair: Director, Executive Services and Cabinet Legislation and Liaison Offi cer, Executive Services
Develops strategies and undertakes activities that work towards improving the department’s performance in achieving the public sector women in management targets. Coordinates six key projects that assist in the development of women across the department.
Achievements:
In partnership with the Queensland University of Technology, conducted research into bridging the gap between the provision and utilisation of work-life policies. Designed pilot mobility exchange programs that encourage women in technical and administrative roles to broaden their skills, knowledge and experience.Designed a pilot professional development program for administrative staff.Conducted professional development seminars on career management topics.
Integrates the contributions of all the Department of Public Works units towards the Queensland Government’s Reconciliation Program. Takes account of the outcomes sought by the Queensland Government under the Partnership Queensland policy framework, ensuring all levels of government, community, business and non-government sectors work together to meet community needs.
Achievements:
Continued the delivery of a Cultural Awareness Program for the whole department.Infl uenced an increase in the proportion of Indigenous staff, including apprentices, in the department. As at 30 June 2005, Indigenous staff represented 2.61 per cent of the department’s workforce.Supported the Director-General’s involvement as joint Government Champion of the Palm Island community.Supported the refi nement of the Indigenous Employment Policy requiring contractors to employ 20 per cent of on-site labour force from the local Indigenous community. This policy now includes grants and a lowered threshold to $100,000 for building construction projects.
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Strategic Groups
Section 5 Other Reporting
Department of Public Works Annual Report 2004 - 05
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. Fulfi ls the role of the Department of Public Works within the context of policy requirements contained in the Capital Works Management Framework.
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Achievements:
Worked towards improved outcomes by reviewing the proposed procurement strategies of signifi cant projects to be delivered by government including the Prince Charles Hospital upgrade (stage one) and Preparatory Year of Schooling Capital Projects.Reviewed proposed amendments to building contracts such as the Building and Construction Industry Payments Act 2004.Deliberated on issues related to better practice whole-of-Government building procurement strategies such as use of government priorities in non-price criteria for tender evaluations.
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Above:
QBuild and Project
Services are
delivering facilities
for Queensland’s
Preparatory School
Year Program
76.
Internal Audit
Internal Audit operates as an independent function within 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:legislative and statutory compliances;operational cost-effectiveness and effi ciency;reliability of fi nancial and related management information;use of public funds and assets under the department’s control; andadequacy and accuracy of accounting and computing systems.
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Internal Audit also:conducts investigations as requested by the Director-General, the Crime and Misconduct Commission (CMC) and others;liaises with and provides assistance to the CMC in their investigations;performs agency or department-wide operational reviews to assess the extent of weaknesses in existing processes and controls identifi ed as a result of the investigations and provide recommendations to strengthen the control environment;reviews actions taken by business units in relation to control issues identifi ed through previous investigations undertaken by Internal Audit, External Audit or the CMC; andprovides an advisory function with respect to business improvement processes and systems of internal controls.
In 2004-05, Internal Audit fi ndings confi rmed that a satisfactory internal control environment appears to exist within the department.
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Section 5 Other Reporting
77.
Department of Public Works Annual Report 2004 - 05
In 2004-05, the Department of Public Works continued to develop contemporary records management policies and to provide advice on records management to the State Government and public authorities of Queensland.
The department continued to preserve, and provide access to, Queensland’s older public records.
As the lead agency for recordkeeping, Queensland State Archives launched information management policies and guidelines such as the Government Online Learning Delivery email training module, the Capacity Development Framework and Strategy, and the Guideline for the Digitisation of Paper Records.
Queensland State Archives further developed the Recordkeeping Information Standard (IS40) to assist public authorities to meet their recordkeeping obligations under the Public Records Act 2002.
Internally, Queensland State Archives commenced preparations for an Electronic Document Records Management System (eDRMS) by redeveloping shared drives and starting work on a Business Classifi cation Scheme. Strategies identifi ed in the Strategic Recordkeeping Implementation Plan, approved in 2004, were undertaken by Queensland State Archives. Queensland State Archives also developed internal recordkeeping policies and procedures, with staff training being undertaken in the records management system.
The department’s Information Services Directorate managed and supported existing computerised records management systems. The directorate continued to manage the Electronic Data Management System Project.
It also continued to provide a Project Services Document Management System.
Works Division participated with the Information Services Directorate in the review of records created to enable the Business Classifi cation Scheme and Retention and Disposal Schedule to be updated to meet the requirements of IS40.
QFleet remained on course to meet the 2006 deadline to comply with the Operational Recordkeeping Implementation Plan.
Section 5 Other Reporting
79.
Department of Public Works Annual Report 2004 - 05
All departmental areas prepare risk registers and undertake specifi c risk-management activities.
The Department of Public Works has a Business Continuity Plan and Information Disaster Recovery Plan to ensure that critical departmental deliverables can be restored as soon as possible after a major disruption. Supporting service area continuity plans have also been developed. There is a requirement that these plans are annually reviewed and tested to ensure they remain practical and current.
A Corporate Governance Board workshop built on and enhanced the existing risk-management framework within the department. During the fi nancial year, the integration of enterprise-wide and individual, business-area risk registers was progressed. Development of a whole-of-department integrated risk-management reporting regime continued to provide timely and comprehensive management information.
Project Services continued to use the in-house-developed Risk Assessment and Management Systems, as well as staff expertise to reduce risk in capital works projects. This provided clients with structured risk-management plans that identifi ed and reduced all areas of project risk.
The department’s Executive Services Unit worked on ‘Mincor 4’, an upgrade to the current departmental correspondence tracking system to be launched in August 2005. ‘Mincor 4’ prevents correspondence from being lost or misplaced and offers increased security and fl exibility, improved effi ciency, extra capacity and a user-friendly interface.
Racing Division participated in the department’s Risk Management program. The
Racing Science Centre has a contingency plan that provides for the continuation of drug testing services to the Queensland racing industry in the event of a disruption.
QFleet has an integrated and proactive risk committee structure to identify, treat and manage the operational and commercial risks of the business unit.
CITEC maintained a risk register that identifi es risks, assesses the likelihood and consequences of them occurring, and maintains controls to manage those risks. Regular reviews of risks through scenario testing ensure that CITEC’s plans are capable of dealing with incidents smoothly and effi ciently. This is reinforced by regular reviews of CITEC’s business continuity plan and disaster recovery plans.
Risk Management
80.
The Department of Public Works continued to work with Queensland Treasury to coordinate and carry out the Government Energy Management Strategy (GEMS).
GEMS aims to reduce the government’s use of energy and water and associated expenditure in these areas, and to achieve a reduction in greenhouse gas emissions. The key GEMS target is to achieve an annual reduction of $22 million across government by 2008. Savings in government expenditure on energy for 2004-2005 exceeded the target of $2 million.
The Department of Public Works’ Waste Management Strategic Plan provides guidance for all areas of the department to develop their own Waste Management Action Plans. The strategy is based on the waste management hierarchy and principles outlined in the Environmental Protection (Waste Management) Policy 2000.
In 2004-05, QFleet workshops met all waste collection, disposal and recycling standards including those for oil, water and batteries. QFleet continues to run an offi ce waste recycling program.
QBuild undertook a trial to supply bins at depots and large job sites for the disposal and recycling of waste materials. By tracking the wastes produced at work sites, QBuild reduced its environmental impacts through the reduction of waste materials being deposited into landfi lls and by recycling limited material resources.
QBuild also maintained certifi cation of an Environmental Management System by third-party audit as conforming to AS/NZ ISO 14001:1996.
In 2004-05, Queensland Purchasing worked towards the development of a Green Procurement Strategy to encourage and improve government purchasing practices. Through the strategy, the Queensland Government will increase its use of environ-mentally friendly goods and services.
Goprint has an extensive waste recycling management program in place for all waste material including paper, fi lm and metal. General waste is processed through ti-tree bio-energy systems. In 2004-05, Goprint began a waste management review through the Environmental Protection Agency.
CITEC participated in the RICOH ‘Close the Loop’ recycling program. All used cartridges from printers, photocopiers and fax machines were returned to RICOH for recycling into products such as park benches, rulers and wastepaper baskets.
At SDS, offi ce paper and other consumables are reused and recycled, with used offi ce paper being shredded as a packing source for the warehouse.
Department of Public Works Annual Report 2004 - 05
Statutory Bodies,Authorities and Instrumentalities
Title Function
Board of Architects of Queensland The board is responsible under the Architects Act 2002 for the registration of architects in Queensland. The functions of the board are to:
Maintain a register of registered architects and record information given by corporations providing architectural services. Protect the public interest by ensuring only competent, qualifi ed persons practise as registered architects.Ensure registered architects maintain appropriate technical and professional standards.Investigate complaints against architects and institute proceedings before the Commercial and Consumer Tribunal.Instigate legal proceedings against persons for breaches of the Act.
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Title Function
Board of Professional Engineersof Queensland
The board is responsible under the Professional Engineers Act 2002 for the registration of professional engineers in Queensland. The functions of the board are to:
Maintain a register of registered professional engineers.Protect the public interest by ensuring only competent, qualifi ed persons practise as registered professional engineers.Ensure registered engineers maintain appropriate technical and professional standards.Investigate complaints against engineers and institute proceedings before the Commercial and Consumer Tribunal.Instigate legal proceedings against non-registered persons for breaches of the Act.
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84.
Statutory Bodies, Authorities and Instrumentalities
Section 5 Other Reporting
Title Function
Public Records Review Committee The Committee was established under the Public Records Act 2002.
Functions:Advise the Minister and the State Archivist about issues affecting the administration and enforcement of the Act.Resolve disputes between the State Archivist and a public authority regarding restricted access notices applicable to certain public records.Review disposal decisions made by the State Archivist when a public authority applies for such a review.
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Title Function
Queensland Thoroughbred Racing Board(operating as Queensland Racing)
The Control Body for thoroughbred racing, Queensland Racing, was established under the Racing Act 2002 to manage the thoroughbred code of racing.
Title Function
Queensland Harness Racing Board (QHRB)
The Control Body for harness racing, the QHRB, was established under the Racing Act 2002 to manage the harness code of racing.
Title Function
Greyhound Racing Authority (GRA) The Control Body for greyhound racing, the GRA, was established under the Racing Act 2002 to manage the greyhound code of racing.
Title Function
Racing Appeals Tribunal Established under the Racing Act 2002, the Racing Appeals Tribunal hears and decides appeals against decisions listed in s167 of the Act.
Department of Public Works Annual Report 2004 - 05
Title Function
Racing Animal Welfare and Integrity Board(RAWIB)
The RAWIB 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.
Title Function
Trustees of Parklands Gold Coast The Trustees of Parklands Gold Coast operate the Parklands’ facilities as a Statutory Body appointed under the provisions of the Racing Venues Development Act 1982.
86.
Section 5 Other Reporting
Role Achievements Members Cost
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 2004-05 increased to 57 compared with 54 in 2003-04. Of the appeals received, 31 related to the harness code, 20 to the thoroughbred code and six to the greyhound code.
54 appeals were fi nalised. 19 were dismissed, 16 had the appeal varied, 10 were upheld and nine were withdrawn.
On average, applications were heard within 25 days from lodgement of the appeal.
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Leo Williams (Chair)
Sir James Killen(Deputy Chairperson) (up to 22 April 2005)
Brockwell Miller(Deputy Chairperson) (from 29 April 2005)
Dennis Standfi eld
$67,219
Note: There were four Racing statutory bodies for which the Minister was responsible: the Greyhound Racing Authority; the Queensland Harness Racing Board; Queensland Racing; and the 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 2004-05 annual report.
Department of Public Works Annual Report 2004 - 05
2003-04 2004-05
Applications for access Received 31 24Completed 23 19Withdrawn 2 3Personal 4 4Non-personal 27 20Documents Documents considered 2944 5981Access granted in full 2113 2525One or more exemptions invoked (approx.) 50 20Decisions (by documents)
Whistleblowers Protection Act 1994. The Department of Public Works has nothing to report in 2004-05.
Whistleblowers
88.
Offi cer and Position Destination Reason for Travel Agency Cost Contribution from other
agencies or sources
Overseas Travel
Section 5 Other Reporting
Allan RussellPrincipal Services Engineer,Project Services
Tonga To undertake a Period Contract Consultancy for AusAID and to be involved in an Electrifi cation Study of the outer Islands for the Kingdom of Tonga.
$27,040
Note: The consultancy fee and all disbursements have been paid by AusAID to the amount of $27,040
Jackie LeslieInternational Business Offi cer,External Relations Unit
Samoa and Solomon Islands
To investigate AUD$2.3M worth of export business to Samoa and the Solomon Islands for the Department of Public Works in partnership with the Kramer Group Pty Ltd (Bne).
$8,464
Janet ProwseDirector and State Archivist
Austria To attend the 2004 International Congress on ‘Archives, Memory and Knowledge’.
$6,336
Janet BensonManager, Policy and Research, Queensland State Archives
Austria To attend the 2004 International Congress on ‘Archives, Memory and Knowledge’.
$6,239
Selwyn ClarkDirector, Portfolio and Housing Unit
Netherlands To participate in the ‘Clients Platform in Building’ conference / workshop.
$5,422
Gavin Litfi nDirector, Infrastructure and Major Projects
UK To undertake discussions in relation to the Queensland House refurbishment.
$2,601
Note: These discussions were undertaken while Mr Litfi n was on personal leave – the cost to the agency was for accommodation only
Rhonda CunninghamDirector, Information Brokerage CITEC
New Zealand To be an exhibitor at the New Zealand eGovernment Summit 2004.
$2,072
89.
Department of Public Works Annual Report 2004 - 05
Offi cer and Position Destination Reason for Travel Agency Cost Contribution from other
agencies or sources
Chris ApplebySales Executive,CITEC
New Zealand To be an exhibitor at the New Zealand eGovernment Summit 2004.
$2,081
Bob GilesActing Director, Asset Management UnitOn behalf of Project Services
Ireland Paid consultancy for the Department of Finance, Ireland - to develop a suite of new Building and Construction Contracts for the Irish Government.
$60,770
Shaheed MahomedSystems Architect, CITEC
New Zealand To provide specialist implementation skills under partner agreement with Interwoven for a New Zealand client.
$4,623
Simon GinnManager, Government Energy Management Strategy,Built Environment Research Unit
Canada To undertake meetings re the Canadian Federal Building Initiative.
$923
Peter WoodPrincipal Project Manager, Corrective ServicesProject Services
New Zealand To review perimeter security systems in New Zealand as part of an ongoing consultancy for the Queensland Department of Corrective Services.
$7,250
** Accommodation not included as paid for directly by client
Note: These discussions were undertaken while Mr Ginn was on personal leave – the cost to the agency was for accommodation only
Steve BournesPrincipal Electronics Engineer,Project Services
New Zealand To review perimeter security systems in New Zealand as part of an ongoing consultancy for the Queensland Department of Corrective Services.
$7,250
Overseas travel - continued
90.
Offi cer and Position Destination Reason for Travel Agency Cost Contribution from other
agencies or sources
Section 5 Other Reporting
Shaheed MahomedSystems Architect, CITEC
New Zealand To provide enhancements to the NZ Ministry’s content management system (Interwoven TeamSite and associated products) and provide assistance in integrating client’s current technologies with Interwoven’s TeamSite product.
$1,941
** Accommodation not included as paid for directly by client.
Malcolm McMillanDirector, Corporate Planning and ERU
United Arab Emirates and Qatar
To participate in the Queensland Government Trade Mission and meet with Government and Private Sector Middle East representatives.
$8,724
Geoff GohManager, International Business
Philippines To participate in the Austrade Mission to the Asian Development Bank.
$5,093
Mike KellyExecutive Director, Racing
New Zealand Attend Racing Ministers Conference. $3,265
Carol PerrettDirector, Racing
New Zealand Attend Racing Ministers Conference. $3,388
Dale Gilbert Director, Built Environment Research Unit
Japan To participate in the Aichi 2005 World Expo and provide involvement in the technology section of the Australian pavilion’s business program as well as attending Cooperative Research Centre for Construction Innovation related meetings.
$4,983
Overseas travel - continued
91.
Department of Public Works Annual Report 2004 - 05
Overseas travel - continued
Offi cer and Position Destination Reason for Travel Agency Cost Contribution from other
agencies or sources
Andrew McGregorProject Manager, Queensland Purchasing
United Kingdom
To undertake a planning study and attend meetings for a major whole-of-Government travel management system project.
$3,706 $8,272
Mark DevineSenior Procurement Offi cer, Queensland Purchasing
United Kingdom
To undertake a planning study and attend meetings for a major whole-of-Government travel management system project.
$3,789 $8,272
Shaheed MahomedSystems Architect, CITEC
New Zealand To assist a CITEC partner to install a specialist software package and customise its implementation.
$1,388
Michael BallManager, Environmental Remediation and Heritage Unit,Built Environment Research Unit
France To deliver a paper and participate in the ‘Durability of Building Materials and Components’ conference on behalf of the Cooperative Research Centre for Construction Innovation (CRC-CI)
$4,375
Philip RedmondGeneral Manager, Service Operations,CITEC
New Zealand Meetings with New Zealand’s telecommunication vendors to discuss client concerns.
$1,312
** Accommodation not included as paid for directly by client.
Brisbane Magistrates Court
92.
93.
Department of Public Works Annual Report 2004 - 05
Note: Figures are GST inclusive and include payments made over the full 2004-05 fi nancial year.
94.
95.
Department of Public Works Annual Report 2004 - 05
The Shared Service Initiative is a whole-of-Government approach to corporate services delivery which aims to provide high quality cost-effective corporate services to Queensland State Government departments.
Shared service providers and CorpTech were established from 1 July 2003 through the consolidation of corporate service functions from departments and existing shared service providers. Departments are grouped into seven clusters, each serviced by a dedicated shared service provider, with CorpTech providing services to fi ve shared service providers.
On 1 July 2003, the Department of Public Works transferred responsibility and staff for selected corporate services – human resources and fi nance – to its shared service provider, Corporate Solutions Queensland, and to CorpTech.
Additional corporate services transitioned on 1 October 2004 including mail and telecommunications services.
The Department of Public Works made a signifi cant contribution to the Shared Service Initiative through the Whole-of-Government Services Integration Steering Committee (WOGSIC). The committee was established to ensure effective integration of initiatives involving services delivered through the department. This committee reports through the Director-General to the Shared Service CEO Committee.
In 2004-05, WOGSIC promoted the effective integration of department-led initiatives that supported the delivery of shared services objectives under the Shared Service Initiative, providing added value at a whole-of-Government level.
Shared Service Initiative
Stock control at SDS
96.
Financial Summarysection 6
Department of Public Works Annual Report 2004 - 05
97.
98.
Section 6 Financial Summary
Department of Public Works - Summary statement of fi nancial performance
The increase in User charges is due principally to the inclusion of a full years revenue for CITEC.
The increase in Employee expenses and Supplies and services is due principally to the inclusion of a fullyears expenses for CITEC.
The Queensland Government has decided that an equity return will not be required for 2004-05 and subsequent years.
2004-05 2003-04
$’000 $’000
Revenues from ordinary activities
Output revenue 64,912 87,557User charges 1,090,606 964,388Grants and other contributions 24,425 13,199Other 17,088 17,493Total revenues 1,197,031 1,082,637
Expenses
Employee expenses 295,275 236,958Supplies and services 742,992 656,350Equity return expense - 52,980Depreciation and amortisation 75,160 70,384Grants and subsidies 6,934 96Borrowing costs 34,634 34,040Other 33,398 15,439Total expenses 1,188,393 1,066,247
Operating result
before income tax 8,638 16,390
Department of Public Works Consolidated
99.
Department of Public Works Annual Report 2004 - 05
Department of Public Works - Summary statement of fi nancial position
Department of Public Works Consolidated
Property, plant and equipment is mainly comprised of land and buildings together with the motor vehicle fl eet.
Interest-bearing liabilitiesprincipally relates to borrowings from Queensland Treasury Corporation (mainly for land, buildings and the motor vehicle fl eet).
The Department maintained astrong fi nancial position with Equity increasing by $237M (21.6%).
101.
Department of Public Works Annual Report 2004 - 05
TOTAL EXPENSES
BY OUTPUTS/MAJOR ACTIVITIES
Building Procurement and Asset Management $266.2M (20.34%)
Procurement Services $6.9M (0.53%)
e-Government and Information and Communication Technology (ICT) Strategies $28.6M (2.18%)
Public Records Management and Advisory Services $6.8M (0.52%)
Racing Industry Services $15.6M (1.19%)
QBuild $578.9M (44.24%)
Project Services $82.5M (6.3%)
QFleet $109.3M (8.35%)
Goprint $20.2M (1.55%)
SDS $44.5M (3.41%)
CITEC $132.6M (10.14%)
General-Not Attributed $16.6M (1.27%)
TOTAL REVENUES
BY OUTPUTS/MAJOR ACTIVITIES
Building Procurement and Asset Management $266.4M (20.19%)
Procurement Services $7.4M (0.56%)
e-Government and Information and Communication Technology (ICT) Strategies $25.6M (1.94%)
Public Records Management and Advisory Services $6.9M (0.52%)
Racing Industry Services $15.6M (1.18%)
QBuild $584.4M (44.29%)
Project Services $89.5M (6.79%)
QFleet $109.5M (8.3%)
Goprint $19.8M (1.5%)
SDS $43.5M (3.3%)
CITEC $134.2M (10.17%)
General-Not Attributed $16.6M (1.26%)
102.
Interior of Brisbane Magistrates Court
Financialssection 7
Department of Public Works Annual Report 2004 - 05
103.
Section 7 Financials
104.
Contents
Introduction
Statement of financial performance
Statement of financial position
Statement of cash flows
Statement of financial performance by outputs/major activities – controlled
Statement of financial performance – QBuild
Statement of financial position – QBuild
Statement of cash flows – QBuild
Statement of financial performance – Project Services
Statement of financial position – Project Services
Statement of cash flows – Project Services
Statement of financial performance – QFleet
Statement of financial position – QFleet
Statement of cash flows – QFleet
Statement of financial performance – Goprint
Statement of financial position – Goprint
Statement of cash flows – Goprint
Statement of financial performance – SDS
Statement of financial position – SDS
Statement of cash flows – SDS
Statement of financial performance – CITEC
Statement of financial position – CITEC
Statement of cash flows – CITEC
Notes to and forming part of the financial statements
Certificate of the Department of Public Works
Independent audit report
Contents
Department of Public Works Annual Report 2004 - 05
105.
Introduction
The following financial statements have been prepared by the Department and audited by the Auditor-
General of Queensland:
Statement of financial performance;
Statement of financial position;
Statement of cash flows;
Statement of financial performance by outputs/major activities – Controlled; and
Notes to and forming part of the financial 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 2004-05 financial statements have been prepared to provide the following users with information
concerning the Department's financial performance for the year and its financial position at year end:
the Minister for Public Works;
Members of the Legislative Assembly of Queensland;
the building industry;
the business community in general;
various government and semi-government instrumentalities; and
other interested parties.
The statements are of a general purpose in nature and provide information of the financial activities of
the Department.
The Department of Public Works is committed to providing high standards in financial administration
and recognises the need to satisfy statutory requirements for adequate disclosure.
Introduction
Section 7 Financials
106.
Statement of financial performance
Note 2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activitiesOutput revenue 2 64,912 87,557 64,912 87,557User charges 3 1,090,606 964,388 244,955 219,551Grants and other contributions 4 24,425 13,199 10,726 1,126Other 5 17,088 17,493 7,575 2,729
Total revenues from ordinary activities 1,197,031 1,082,637 328,168 310,963
Operating result from ordinary activitiesafter related income tax expense 3,355 9,951 (2,180) 1,545
Operating result attributable to outside equity interests 25 (358) (265) - -
Net operating result 2,997 9,686 (2,180) 1,545
Non-owner transaction changes in equity:
Net increase in asset revaluation reserve 25 103,881 58,158 103,881 58,158
Net amount of each revenue, expense, valuationor other adjustment not disclosed aboverecognised as a direct adjustment to equity 25 7,682 1,662 7,681 1,662
Total revenues, expenses and valuationadjustments recognised directly in equity 111,563 59,820 111,562 59,820
Total changes in equity other than thoseresulting from transactions with ownersas owners 114,560 69,506 109,382 61,365
Department of Publicorks Consolidated
Parent Entity
Statement of financial performance
Note 2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities
Total revenues from ordinary activities 1,197,031 1,082,637 328,168 310,963
Expenses from ordinary activities
Total expenses from ordinary activitiesexcluding borrowing costs expense 1,153,759 1,032,207 311,129 288,853
Operating result from ordinary activitiesbefore income tax expense 8,638 16,390 (2,180) 1,545
Operating result from ordinary activitiesafter related income tax expense 3,355 9,951 (2,180) 1,545
Net operating result 2,997 9,686 (2,180) 1,545
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity 111,563 59,820 111,562 59,820
Total changes in equity other than thoseresulting from transactions with ownersas owners 114,560 69,506 109,382 61,365
Department of PublicWorks Consolidated
Parent Entity
Statement of financial performance
Note 2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities
Total revenues from ordinary activities 1,197,031 1,082,637 328,168 310,963
Expenses from ordinary activities
Total expenses from ordinary activitiesexcluding borrowing costs expense 1,153,759 1,032,207 311,129 288,853
Operating result from ordinary activitiesbefore income tax expense 8,638 16,390 (2,180) 1,545
Operating result from ordinary activitiesafter related income tax expense 3,355 9,951 (2,180) 1,545
Net operating result 2,997 9,686 (2,180) 1,545
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity 111,563 59,820 111,562 59,820
Total changes in equity other than thoseresulting from transactions with ownersas owners 114,560 69,506 109,382 61,365
Department of PublicWorks Consolidated
Parent Entity
Statement of financial performance
Note 2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities
Total revenues from ordinary activities 1,197,031 1,082,637 328,168 310,963
Expenses from ordinary activities
Total expenses from ordinary activitiesexcluding borrowing costs expense 1,153,759 1,032,207 311,129 288,853
Operating result from ordinary activitiesbefore income tax expense 8,638 16,390 (2,180) 1,545
Operating result from ordinary activitiesafter related income tax expense 3,355 9,951 (2,180) 1,545
Net operating result 2,997 9,686 (2,180) 1,545
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity 111,563 59,820 111,562 59,820
Total changes in equity other than thoseresulting from transactions with ownersas owners 114,560 69,506 109,382 61,365
Department of Publicorks Consolidated
Parent Entity
Statement of fi nancial performancefor the year ended 30 June 2005Statement of financial performance
Note 2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities
Total revenues from ordinary activities 1,197,031 1,082,637 328,168 310,963
Expenses from ordinary activities
Total expenses from ordinary activitiesexcluding borrowing costs expense 1,153,759 1,032,207 311,129 288,853
Operating result from ordinary activitiesbefore income tax expense 8,638 16,390 (2,180) 1,545
Operating result from ordinary activitiesafter related income tax expense 3,355 9,951 (2,180) 1,545
Net operating result 2,997 9,686 (2,180) 1,545
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity 111,563 59,820 111,562 59,820
Total changes in equity other than thoseresulting from transactions with ownersas owners 114,560 69,506 109,382 61,365
This Statement of financial performance should be read in conjunction with the accompanying notes.
Department of Publicorks Consolidated
Parent Entity
Department of Public Works Annual Report 2004 - 05
Net increase in cash held 8,952 36,321 1,928 11,427Cash at beginning of the financial year 91,447 55,126 14,254 2,827Cash at end of the financial year 26(a) 100,399 91,447 16,182 14,254
Department of Publicorks Consolidated
Parent Entity
For non-cash fi nancing and investing activities refer Note 27.
This Statement of cash fl ows should be read in conjunction with the accompanying notes.
Statement of cash flows
Note 2005 2004 2005 2004$'000 $'000 $'000 $'000
Cash flows from operating activities
Net cash provided by operating activities 79,532 96,567 11,046 26,712
Cash flows from investing activities
Net cash (used in) investing activities (209,310) (111,601) (109,145) (53,063)
Cash flows from financing activities
Net cash provided by financing activities 138,730 51,355 100,027 37,778
Net increase in cash heldCash at beginning of the financial year Cash at end of the financial year 100,399 91,447 16,182 14,254
Department of PublicWorks Consolidated
Parent Entity
Statement of cash flows
Note 2005 2004 2005 2004$'000 $'000 $'000 $'000
Cash flows from operating activities
Net cash provided by operating activities 79,532 96,567 11,046 26,712
Cash flows from investing activities
Net cash (used in) investing activities (209,310) (111,601) (109,145) (53,063)
Cash flows from financing activities
Net cash provided by financing activities 138,730 51,355 100,027 37,778
Net increase in cash heldCash at beginning of the financial year Cash at end of the financial year 100,399 91,447 16,182 14,254
Department of Publicorks Consolidated
Parent Entity
Statement of cash fl owsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
109.
Statement of financial performance by outputs/major activities - controlled
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities *
Total revenues from ordinary activities 266,384 293,855 7,364 5,555
Expenses from ordinary activities *
Total expenses from ordinaryactivities excluding borrowing costs 247,011 272,332 6,892 5,547
Operating result from ordinary activities before income tax expense 181 958 472 8
Operating result from ordinary activities after related income tax expense 181 958 472 8
Net operating result 181 958 472 8
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity 111,562 59,820 - -
Total changes in equity other than thoseresulting from transactions with ownersas owners 111,743 60,778 472 8
* Allocation of revenue and expenses from ordinary activities to corporate services:
Building Procurement and Asset Management Procurement Services
Statement of financial performance by outputs/major activities - controlled
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities *
Total revenues from ordinary activities 266,384 293,855 7,364 5,555
Expenses from ordinary activities *
Total expenses from ordinaryactivities excluding borrowing costs 247,011 272,332 6,892 5,547
Operating result from ordinary activities before income tax expense 181 958 472 8
Operating result from ordinary activities after related income tax expense 181 958 472 8
Net operating result 181 958 472 8
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity 111,562 59,820 - -
Total changes in equity other than thoseresulting from transactions with ownersas owners 111,743 60,778 472 8
* Allocation of revenue and expenses from ordinary activities to corporate services:
Building Procurement and Asset Management Procurement Services
Statement of financial performance by outputs/major activities - controlled
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities * Output revenueUser chargesGrants and other contributions Other Total revenues from ordinary activitiess 266,384 293,855 7,364 5,555
Expenses from ordinary activities * Employee expenses Supplies and services Equity return expense Depreciation and amortisation Grants and subsidiesOther Total expenses from ordinaryactivities excluding borrowing costss 247,011 272,332 6,892 5,547
Borrowing costs expense
Operating result from ordinary activities before income tax expense 181 958 472 8
Income tax expense relating to ordinary activities
Operating result from ordinary activities after related income tax expense 181 958 472 8
Operating result attributable to outside equity interests
Net operating result 181 958 472 8
Non-owner transaction changes in equity:
Net increase in asset revaluation reserve
Net amount of each revenue, expense, valuationor other adjustment not disclosed aboverecognised as a direct adjustment to equity
Total revenues, expenses and valuationadjustments recognised directly in equityy 111,562 59,820 - -
Total changes in equity other than thoseresulting from transactions with ownersas ownerss 111,743 60,778 472 8
* Allocation of revenue and expenses from ordinary activities to corporate services:
Building Procurement and Asset Management Procurement Services
Statement of financial performance by outputs/major activities - controlled
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities *
Total revenues from ordinary activities 266,384 293,855 7,364 5,555
Expenses from ordinary activities *
Total expenses from ordinaryactivities excluding borrowing costs 247,011 272,332 6,892 5,547
Operating result from ordinary activities before income tax expense 181 958 472 8
Operating result from ordinary activities after related income tax expense 181 958 472 8
Net operating result 181 958 472 8
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity 111,562 59,820 - -
Total changes in equity other than thoseresulting from transactions with ownersas owners 111,743 60,778 472 8
* Allocation of revenue and expenses from ordinary activities to corporate services:
Building Procurement and Asset Management Procurement Services
Statement of financial performance by outputs/major activities - controlled
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities * 26,859 75,582 3,785 3,182
Operating result from ordinary activities before income tax expense 181 958 472 8
- - - -
Operating result from ordinary activities after related income tax expense 181 958 472 8
- - - -
Net operating result 181 958 472 8
Non-owner transaction changes in equity:
103,881 58,158 - -
7,681 1,662 - -
Total revenues, expenses and valuationadjustments recognised directly in equity 111,562 59,820 - -
Total changes in equity other than thoseresulting from transactions with ownersas owners 111,743 60,778 472 8
* Allocation of revenue and expenses from ordinary activities to corporate services:
Building Procurement and Asset Management Procurement Services
Statement of financial performance by outputs/major activities - controlled
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities *
Total revenues from ordinary activities 266,384 293,855 7,364 5,555
Expenses from ordinary activities *
Total expenses from ordinaryactivities excluding borrowing costs 247,011 272,332 6,892 5,547
Operating result from ordinary activities before income tax expense 181 958 472 8
Operating result from ordinary activities after related income tax expense 181 958 472 8
Net operating result 181 958 472 8
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity 111,562 59,820 - -
Total changes in equity other than thoseresulting from transactions with ownersas owners 111,743 60,778 472 8
* Allocation of revenue and expenses from ordinary activities to corporate services: Revenues from ordinary activities Expenses from ordinary activities
Building Procurement and Asset Management Procurement Services
Statement of financial performance by outputs/major activities - controlled
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities *
Total revenues from ordinary activities 266,384 293,855 7,364 5,555
Expenses from ordinary activities *
Total expenses from ordinaryactivities excluding borrowing costs 247,011 272,332 6,892 5,547
Operating result from ordinary activities before income tax expense 181 958 472 8
Operating result from ordinary activities after related income tax expense 181 958 472 8
Net operating result 181 958 472 8
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity 111,562 59,820 - -
Total changes in equity other than thoseresulting from transactions with ownersas owners 111,743 60,778 472 8
* Allocation of revenue and expenses from ordinary activities to corporate services: 14,617 7,483 1,985 83113,460 7,426 1,522 825
Building Procurement and Asset Management Procurement Services
Statement of fi nancial performance by outputs/major activities - controlledfor the year ended 30 June 2005
Section 7 Financials
110.
Statement of financial performance by outputs/major activities - controlled (continued)
e-Government and Information and Communication
Technology (ICT) Strategies
Public Records Management and Advisory Services
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities *
Total revenues from ordinary activities 25,551 7,159 6,908 2,406
Expenses from ordinary activities *
Total expenses from ordinaryactivities excluding borrowing costs 28,555 6,721 6,768 2,265
Operating result from ordinary activities before income tax expense (3,004) 438 140 141
Operating result from ordinary activities after related income tax expense (3,004) 438 140 141
Net operating result (3,004) 438 140 141
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity - - - -
Total changes in equity other than thoseresulting from transactions with ownersas owners (3,004) 438 140 141
* Allocation of revenue and expenses from ordinary activities to corporate services:
Note: The above Outputs were transferred from the Department of Innovation and Information Economy, Sport and Recreation Queensland with effect from 12 February 2004. The prior year comparatives for these Outputs relates to their operations for the period 13 February 2004 to 30 June 2004.
Statement of financial performance by outputs/major activities - controlled (continued)
e-Government and Information and Communication
Technology (ICT) Strategies
Public Records Management and Advisory Services
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities * Output revenue 22,228 6,445 6,679 2,348User charges 202 275 221 58Grants and other contributions 2,824 342 - -Other 297 97 8 -Total revenues from ordinary activities 25,551 7,159 6,908 2,406
Expenses from ordinary activities * Employee expenses 7,318 2,537 3,281 958Supplies and services 11,750 2,266 3,270 1,236Equity return expense - 731 - -Depreciation and amortisation 2,624 1,064 197 67Grants and subsidies 4,695 96 - -Other 2,168 27 20 4Total expenses from ordinaryactivities excluding borrowing costs 28,555 6,721 6,768 2,265
Borrowing costs expense - - - -
Operating result from ordinary activities before income tax expense (3,004) 438 140 141
Income tax expense relating to ordinary activities - - - -
Operating result from ordinary activities after related income tax expense (3,004) 438 140 141
Operating result attributable to outside equity interests - - - -
Net operating result (3,004) 438 140 141
Non-owner transaction changes in equity:
Net increase in asset revaluation reserve - - - -
Net amount of each revenue, expense, valuationor other adjustment not disclosed aboverecognised as a direct adjustment to equity - - - -
Total revenues, expenses and valuationadjustments recognised directly in equity - - - -
Total changes in equity other than thoseresulting from transactions with ownersas owners (3,004) 438 140 141
* Allocation of revenue and expenses from ordinary activities to corporate services: Revenues from ordinary activities 1,448 486 661 208 Expenses from ordinary activities 1,448 486 661 208
Statement of financial performance by outputs/major activities - controlled (continued)
e-Government and Information and Communication
Technology (ICT) Strategies
Public Records Management and Advisory Services
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities *
Total revenues from ordinary activities 25,551 7,159 6,908 2,406
Expenses from ordinary activities *
Total expenses from ordinaryactivities excluding borrowing costs 28,555 6,721 6,768 2,265
Operating result from ordinary activities before income tax expense (3,004) 438 140 141
Operating result from ordinary activities after related income tax expense (3,004) 438 140 141
Net operating result (3,004) 438 140 141
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity - - - -
Total changes in equity other than thoseresulting from transactions with ownersas owners (3,004) 438 140 141
* Allocation of revenue and expenses from ordinary activities to corporate services:
Statement of financial performance by outputs/major activities - controlled (continued)
e-Government and Information and Communication
Technology (ICT) Strategies
Public Records Management and Advisory Services
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities *
Total revenues from ordinary activities 25,551 7,159 6,908 2,406
Expenses from ordinary activities *
Total expenses from ordinaryactivities excluding borrowing costs 28,555 6,721 6,768 2,265
Operating result from ordinary activities before income tax expense (3,004) 438 140 141
Operating result from ordinary activities after related income tax expense (3,004) 438 140 141
Net operating result (3,004) 438 140 141
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity - - - -
Total changes in equity other than thoseresulting from transactions with ownersas owners (3,004) 438 140 141
* Allocation of revenue and expenses from ordinary activities to corporate services:
Statement of fi nancial performance by outputs/major activities - controlled (continued)for the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
111.
Statement of financial performance by outputs/major activities - controlled (continued)
Racing Industry Services ~
CommercialisedBusiness Units #
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities * Output revenue 5,361 - - -User charges 2,151 - 957,734 836,947Grants and other contributions 7,900 - 13,699 12,270Other 189 - 9,513 14,764Total revenues from ordinary activities 15,601 - 980,946 863,981
Expenses from ordinary activities * Employee expenses 2,041 - 253,692 211,068Supplies and services 3,321 - 617,304 550,660Equity return expense - - - -Depreciation and amortisation 254 - 53,458 51,618Grants and subsidies 2,000 - - -Other 7,926 - 28,236 20,156Total expenses from ordinaryactivities excluding borrowing costs 15,542 - 952,690 833,502
Borrowing costs expense 27 - 15,415 13,475
Operating result from ordinary activities before income tax expense 32 - 12,841 17,004
Income tax expense relating to ordinary activities - - 5,283 6,439
Operating result from ordinary activities after related income tax expense 32 - 7,558 10,565
Operating result attributable to outside equity interests - - (358) (265)
Net operating result 32 - 7,200 10,300
Non-owner transaction changes in equity:
Net increase in asset revaluation reserve - - - -
Net amount of each revenue, expense, valuationor other adjustment not disclosed aboverecognised as a direct adjustment to equity - - 1 -
Total revenues, expenses and valuationadjustments recognised directly in equity - - 1 -
Total changes in equity other than thoseresulting from transactions with ownersas owners 32 - 7,201 10,300
* Allocation of revenue and expenses from ordinary activities to corporate services: Revenues from ordinary activities - - - - Expenses from ordinary activities - - - -
Statement of financial performance by outputs/major activities - controlled (continued)
Racing Industry Services ~
CommercialisedBusiness Units #
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities *
Total revenues from ordinary activities 15,601 - 980,946 863,981
Expenses from ordinary activities *
Total expenses from ordinaryactivities excluding borrowing costs 15,542 - 952,690 833,502
Operating result from ordinary activities before income tax expense 32 - 12,841 17,004
Operating result from ordinary activities after related income tax expense 32 - 7,558 10,565
Net operating result 32 - 7,200 10,300
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity - - 1 -
Total changes in equity other than thoseresulting from transactions with ownersas owners 32 - 7,201 10,300
* Allocation of revenue and expenses from ordinary activities to corporate services:
Statement of financial performance by outputs/major activities - controlled (continued)
Racing Industry Services ~
CommercialisedBusiness Units #
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities *
Total revenues from ordinary activities 15,601 - 980,946 863,981
Expenses from ordinary activities *
Total expenses from ordinaryactivities excluding borrowing costs 15,542 - 952,690 833,502
Operating result from ordinary activities before income tax expense 32 - 12,841 17,004
Operating result from ordinary activities after related income tax expense 32 - 7,558 10,565
Net operating result 32 - 7,200 10,300
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity - - 1 -
Total changes in equity other than thoseresulting from transactions with ownersas owners 32 - 7,201 10,300
* Allocation of revenue and expenses from ordinary activities to corporate services:
~ The Output Racing Industry Services was transferred from the Department of Housing with effect from 1 July 2004. Refer Notes 1(ad) and 36.# For further details of the Commercialised Business Units please refer to the individual Statements following this Statement of financial performance by outputs/major activities - controlled.
Statement of fi nancial performance by outputs/major activities - controlled (continued)for the year ended 30 June 2005
Section 7 Financials
112.
Statement of financial performance by outputs/major activities - controlled (continued)
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities * Output revenue - - - -User charges 8,455 7,915 (120,048) (98,037)Grants and other contributions 2 - - (197)Other 8,129 - (2,261) -Total revenues from ordinary activities 16,586 7,915 (122,309) (98,234)
Expenses from ordinary activities * Employee expenses 5,916 3,790 (79) (14)Supplies and services 10,447 3,752 (112,335) (89,857)Equity return expense - 145 - -Depreciation and amortisation 94 91 (1,266) (593)Grants and subsidies - - - -Other 129 137 (6,605) (5,611)Total expenses from ordinaryactivities excluding borrowing costs 16,586 7,915 (120,285) (96,075)
Borrowing costs expense - - - -
Operating result from ordinary activities before income tax expense - - (2,024) (2,159)
Income tax expense relating to ordinary activities - - - -
Operating result from ordinary activities after related income tax expense - - (2,024) (2,159)
Operating result attributable to outside equity interests - - - -
Net operating result - - (2,024) (2,159)
Non-owner transaction changes in equity:
Net increase in asset revaluation reserve - - - -
Net amount of each revenue, expense, valuationor other adjustment not disclosed aboverecognised as a direct adjustment to equity - - - -
Total revenues, expenses and valuationadjustments recognised directly in equity - - - -
Total changes in equity other than thoseresulting from transactions with ownersas owners - - (2,024) (2,159)
* Allocation of revenue and expenses from ordinary activities to corporate services: Revenues from ordinary activities - - - - Expenses from ordinary activities - - - -
General - Not Attributed
Inter Output/Activity Eliminations
Statement of financial performance by outputs/major activities - controlled (continued)
2005 2004 2005 2004$'000 $'000 $'000 $'000
Revenues from ordinary activities *
Total revenues from ordinary activities 16,586 7,915 (122,309) (98,234)
Expenses from ordinary activities *
Total expenses from ordinaryactivities excluding borrowing costs 16,586 7,915 (120,285) (96,075)
Operating result from ordinary activities before income tax expense - - (2,024) (2,159)
Operating result from ordinary activities after related income tax expense - - (2,024) (2,159)
Net operating result - - (2,024) (2,159)
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity - - - -
Total changes in equity other than thoseresulting from transactions with ownersas owners - - (2,024) (2,159)
* Allocation of revenue and expenses from ordinary activities to corporate services:
General - Not Attributed
Inter Output/Activity Eliminations
Statement of fi nancial performance by outputs/major activities - controlled (continued)for the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
113.
Statement of financial performance by outputs/major activities - controlled (continued)
2005 2004$'000 $'000
Revenues from ordinary activities * Output revenue 64,912 87,557User charges 1,090,606 964,388Grants and other contributions 24,425 13,199Other 17,088 17,493Total revenues from ordinary activities 1,197,031 1,082,637
Expenses from ordinary activities * Employee expenses 295,275 236,958Supplies and services 742,992 656,350Equity return expense - 52,980Depreciation and amortisation 75,160 70,384Grants and subsidies 6,934 96Other 33,398 15,439Total expenses from ordinaryactivities excluding borrowing costs 1,153,759 1,032,207
Borrowing costs expense 34,634 34,040
Operating result from ordinary activities before income tax expense 8,638 16,390
Income tax expense relating to ordinary activities 5,283 6,439
Operating result from ordinary activities after related income tax expense 3,355 9,951
Operating result attributable to outside equity interests (358) (265)
Net operating result 2,997 9,686
Non-owner transaction changes in equity:
Net increase in asset revaluation reserve 103,881 58,158
Net amount of each revenue, expense, valuationor other adjustment not disclosed aboverecognised as a direct adjustment to equity 7,682 1,662
Total revenues, expenses and valuationadjustments recognised directly in equity 111,563 59,820
Total changes in equity other than thoseresulting from transactions with ownersas owners 114,560 69,506
* Allocation of revenue and expenses from ordinary activities to corporate services: Revenues from ordinary activities 18,711 9,008 Expenses from ordinary activities 17,091 8,945
Department of Public Works Consolidated
Statement of financial performance by outputs/major activities - controlled (continued)
2005 2004$'000 $'000
Revenues from ordinary activities *
Total revenues from ordinary activities 1,197,031 1,082,637
Expenses from ordinary activities *
Total expenses from ordinaryactivities excluding borrowing costs 1,153,759 1,032,207
Operating result from ordinary activities before income tax expense 8,638 16,390
Operating result from ordinary activities after related income tax expense 3,355 9,951
Net operating result 2,997 9,686
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity 111,563 59,820
Total changes in equity other than thoseresulting from transactions with ownersas owners 114,560 69,506
* Allocation of revenue and expenses from ordinary activities to corporate services:
Department of Public Works Consolidated
Statement of fi nancial performance by outputs/major activities - controlled (continued)for the year ended 30 June 2005
Section 7 Financials
114.
Statement of financial performance - QBuild
2005 2004$'000 $'000
Revenues from ordinary activitiesOutput revenue - -User charges 571,589 549,783Grants and other contributions 10,699 9,078Other 2,095 1,567Total revenues from ordinary activities 584,383 560,428
Expenses from ordinary activitiesEmployee expenses 145,657 135,931Supplies and services 425,392 408,911Equity return expense - -Depreciation and amortisation 3,169 4,712Grants and subsidies - -Other 4,678 4,557Total expenses from ordinary activitiesexcluding borrowing costs expense 578,896 554,111
Borrowing costs - -
Operating result from ordinary activitiesbefore income tax expense 5,487 6,317
Income tax expense relating toordinary activities 2,654 2,489
Operating result from ordinary activities after related income tax expense 2,833 3,828
Net operating result attributable to outside equity interests - -
Net operating result 2,833 3,828
Non-owner transaction changes in equity:
Net increase in asset revaluation reserve - -
Net amount of each revenue, expense, valuationor other adjustment not disclosed aboverecognised as a direct adjustment to equity - -
Total revenues, expenses and valuationadjustments recognised directly in equity - -
Total changes in equity other than thoseresulting from transactions with ownersas owners 2,833 3,828
Statement of financial performance - QBuild
2005 2004$'000 $'000
Revenues from ordinary activities
Total revenues from ordinary activities 584,383 560,428
Expenses from ordinary activities
Total expenses from ordinary activitiesexcluding borrowing costs expense 578,896 554,111
Operating result from ordinary activitiesbefore income tax expense 5,487 6,317
Operating result from ordinary activities after related income tax expense 2,833 3,828
Net operating result 2,833 3,828
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity - -
Total changes in equity other than thoseresulting from transactions with ownersas owners 2,833 3,828
Statement of fi nancial performance - QBuildfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
115.
Statement of financial position - QBuild
2005 2004$'000 $'000
Current assetsCash assets 50,964 42,325Receivables 83,161 71,494Inventories 10,889 10,207Tax assets - -Other 324 229Total current assets 145,338 124,255
Statement of fi nancial position - SDSat 30 June 2005
Section 7 Financials
128.
Statement of cash flows - SDS
2005 2004$'000 $'000
Cash flows from operating activities Inflows:Output receipts - -User charges 42,947 41,714Grants and other contributions - -GST collected from customers 4,722 4,906GST input tax credits from ATO 3,628 226Interest receipts 33 37Other - -
Outflows:Employee expenses (5,976) (5,383)Supplies and services (36,637) (35,070)Grants and subsidies - -Borrowing costs (212) (271)Equity return expense - -Insurance premiums - -Taxation equivalents - -GST paid to suppliers (4,366) (4,442)GST remitted to ATO (4,209) (749)Other (200) (373)Net cash provided by (used in) operating activities (270) 595
Cash flows from investing activities Inflows:Sales of property, plant and equipment 11 3Loans and advances redeemed - -
Outflows:Payments for property, plant and equipment (242) (685)Payments for intangibles (515) -Loans and advances made - -Net cash (used in) investing activities (746) (682)
Net increase (decrease) in cash held 122 (138)Cash at beginning of the financial year 423 561Cash at end of the financial year 545 423
Statement of cash flows - SDS
2005 2004$'000 $'000
Cash flows from operating activities
Net cash provided by (used in) operating activities (270) 595
Cash flows from investing activities
Net cash (used in) investing activities (746) (682)
Cash flows from financing activities
Net cash provided by (used in) financing activities 1,138 (51)
Net increase (decrease) in cash heldCash at beginning of the financial year Cash at end of the financial year 545 423
Statement of cash fl ows - SDSfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
129.
Statement of financial performance - CITEC (Economic Entity)
2005 2004$'000 $'000
Revenues from ordinary activitiesOutput revenue - -User charges 132,364 42,363Grants and other contributions - -Other 1,860 715Total revenues from ordinary activities 134,224 43,078
Expenses from ordinary activitiesEmployee expenses 44,552 13,861Supplies and services 70,697 22,356Equity return expense - -Depreciation and amortisation 6,176 1,825Grants and subsidies - -Other 10,929 3,275Total expenses from ordinary activitiesexcluding borrowing costs expense 132,354 41,317
Borrowing costs 260 60
Operating result from ordinary activitiesbefore income tax expense 1,610 1,701
Income tax expense relating toordinary activities 569 492
Operating result from ordinary activities after related income tax expense 1,041 1,209
Net operating result attributable to outside equity interests (358) (265)
Net operating result 683 944
Non-owner transaction changes in equity:
Net increase in asset revaluation reserve - -
Net amount of each revenue, expense, valuationor other adjustment not disclosed aboverecognised as a direct adjustment to equity - -
Total revenues, expenses and valuationadjustments recognised directly in equity - -
Total changes in equity other than thoseresulting from transactions with ownersas owners 683 944
Note: CITEC was transferred from the former Department of Innovation and Information Economy,Sport and Recreation Queensland with effect from 12 February 2004. The prior year comparatives in the above Statement of Financial Performance relate to the operations of CITEC for the period 13 February 2004 to 30 June 2004. For the full year results please refer to the CITEC financialstatements following the consolidated Departmental financial statements.
Statement of financial performance - CITEC (Economic Entity)
2005 2004$'000 $'000
Revenues from ordinary activities
Total revenues from ordinary activities 134,224 43,078
Expenses from ordinary activities
Total expenses from ordinary activitiesexcluding borrowing costs expense 132,354 41,317
Operating result from ordinary activitiesbefore income tax expense 1,610 1,701
Operating result from ordinary activities after related income tax expense 1,041 1,209
Net operating result 683 944
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity - -
Total changes in equity other than thoseresulting from transactions with ownersas owners 683 944
Statement of fi nancial performance - CITEC (Economic Entity)for the year ended 30 June 2005
Section 7 Financials
130.
Statement of financial position - CITEC (Economic Entity)
2005 2004$'000 $'000
Current assetsCash assets 9,235 10,925Receivables 17,190 15,666Inventories 74 96Tax assets - -Other 3,279 2,451Total current assets 29,778 29,138
Note: CITEC was transferred from the former Department of Innovation and Information Economy,Sport and Recreation Queensland with effect from 12 February 2004. The prior year comparatives in the above Statement of financial position relate to the balances of the assets and liabilities ofCITEC as at 30 June 2004. For the full year results please refer to the CITEC financial statementsfollowing the consolidated Departmental financial statements.
Statement of cash flows - SDS
2005 2004$'000 $'000
Cash flows from operating activities
Net cash provided by (used in) operating activities (270) 595
Cash flows from investing activities
Net cash (used in) investing activities (746) (682)
Cash flows from financing activities
Net cash provided by (used in) financing activities 1,138 (51)
Net increase (decrease) in cash heldCash at beginning of the financial year Cash at end of the financial year 545 423
Statement of fi nancial position - CITEC (Economic Entity)at 30 June 2005
Department of Public Works Annual Report 2004 - 05
131.
Statement of financial performance - CITEC (Economic Entity)
2005 2004$'000 $'000
Revenues from ordinary activities
Total revenues from ordinary activities 134,224 43,078
Expenses from ordinary activities
Total expenses from ordinary activitiesexcluding borrowing costs expense 132,354 41,317
Operating result from ordinary activitiesbefore income tax expense 1,610 1,701
Operating result from ordinary activities after related income tax expense 1,041 1,209
Net operating result 683 944
Non-owner transaction changes in equity:
Total revenues, expenses and valuationadjustments recognised directly in equity - -
Total changes in equity other than thoseresulting from transactions with ownersas owners 683 944
Statement of cash flows - CITEC (Economic Entity)
2005 2004$'000 $'000
Cash flows from operating activities Inflows:Output receipts - -User charges 131,765 42,438Grants and other contributions - -GST collected from customers 11,175 3,091GST input tax credits from ATO 5,462 1,418Interest receipts 1,617 370Other 245 613
Outflows:Employee expenses (44,611) (13,611)Supplies and services (73,039) (20,611)Grants and subsidies - -Borrowing costs (258) (223)Equity return expense - -Insurance premiums (252) (292)Taxation equivalents (603) -GST paid to suppliers (5,488) (1,377)GST remitted to ATO (11,108) (3,202)Other (10,653) (3,264)Net cash provided by operating activities 4,252 5,350
Cash flows from investing activities Inflows:Sales of property, plant and equipment 4 -
Outflows:Payments for property, plant and equipment (5,634) (2,489)Payments for intangibles (2,861) -Net cash (used in) investing activities (8,491) (2,489)
Net increase (decrease) in cash held (1,630) 10,740Cash at beginning of the financial year 10,740 -Cash at end of the financial year 9,110 10,740
Note: CITEC was transferred from the former Department of Innovation and Information Economy,Sport and Recreation Queensland with effect from 12 February 2004. The prior year comparatives in the above Statement of cash flows relate to the cash flows of CITEC for the period 13 February2004 to 30 June 2004. For the full year results please refer to the CITEC financial statementsfollowing the consolidated Departmental financial statements.
Statement of cash fl ows - CITEC (Economic Entity)for the year ended 30 June 2005
Section 7 Financials
132.
Department of Public Works
Notes to and forming part of the financial statements
1. Summary of significant accounting policies
(a) Basis of accounting
This financial report is a general purpose financial report that has been prepared in accordance with applicable Australian Accounting Standards (principally AAS 29 Financial Reporting by Government Departments), the Treasurer’s Minimum Reporting Requirements for the year ending 30 June 2005 and other authoritative pronouncements.
Except where stated, the financial statements have been prepared in accordance with the historical cost convention.The accounting policies adopted are materially consistent with those for the previous year.
(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 Note 30.
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 AAS 24 Consolidated Financial Reports. 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 internal to the Department have been eliminated, where material.
Additional disclosures of significant issues pertaining to the operations of the Commercialised Business Units is provided at Note 37
(c) Administered transactions and balances
The Department administers, but does not control, certain resources on behalf of the Queensland Government as a whole. It is accountable for the transactions involving administered resources, 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 33. These transactions and balances are not significant in comparison to the Department’s overall financial performance/financial position.
(d) Agency transactions
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 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 2004-2005 are identified separately inNote 35..
(e) Grants and other contributions
Grants, donations, gifts and other contributions that are non-reciprocal in nature are recognised as revenue in the year in which the Department obtains control over them. Where grants are received that are reciprocal in nature, revenue is accrued over the term of the funding arrangements.
Contributions of assets are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if they had not been donated.
(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. All user charges collected by the Department are controlled by it.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
133.
Department of Public Works
Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(g) 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 to the outputs of the Department are not controlled by it and such amounts are reported as administered revenues and expenses. Administered revenue represents Appropriations paid or payable to the Department for Administered activities.
(h) Cash assets
For financial reporting purposes cash includes all cash on hand and cheques receipted but not banked at 30 June as well as deposits at call which are readily convertible to cash and used in the day-to-day cash management function of the Department.
(i) Receivables
Receivables are recognised at the nominal amounts due at the time of sale or service provision. The collectability of receivables is assessed at balance date with adequate provision made for doubtful debts and all known bad debts written off. Settlement on trade debtors is generally received within 30 days.
(j) Inventories
Inventories are valued at the lower of cost and net realisable value.
Warehousing and Distribution Activities The cost of inventory for operations is arrived at using the weighted average cost method and includes expenditure incurred in acquiring the inventories.
Manufacturing Activities Raw materials have been valued on the basis of first-in-first-out, and manufactured inventories on the basis of weighted average cost.
Work in progress has been valued under the absorption costing method at direct material and labour costs, and production overheads allocated on the basis of normal operating capacity.
Information and Communication Infrastructure and Information Management Services Activities Work in progress is carried at cost to date based on the value of work completed less progress billings. Production Cost Recovery is valued at cost and represents purchases made on behalf of clients for which the full cost is recoverable from clients.
(k) Construction work in progress
ValuationConstruction work in progress is carried at any cost plus profit recognised to date, based on the value of work completed, less progress billings and less any provision for foreseeable losses. Provision for the total loss on a contract is made as soon as the loss is identified.
Costs include both variable and fixed costs directly related to specific contracts, and those which can be attributed to contract activity in general and allocated to specific contracts on a reasonable basis. Also included are costs expected to be incurred under penalty clauses and rectification provisions.
Revenue recognition Revenue is recognised on fixed price construction contracts and for services rendered in accordance with the percentage of completion method. Stage of completion is measured by reference to the proportion of physical work completed.
Revenue is recognised on cost plus contracts by reference to recoverable costs incurred during the period plus the percentage of fee earned. Percentage of fee earned is measured by the proportion that costs incurred to date 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.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
134.
Department of Public Works
Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(l) Acquisitions of assets
Actual cost is used for the initial recording of all acquisitions of assets. Cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use, including architects' fees and engineering design fees.
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 AAS 21 – Acquisition of Assets.
(m) Property, plant and equipment
All items of property, plant and equipment, except intangibles, with a cost or other value in excess of $5,000 are recognised in the financial statements in the year of acquisition.
Items with a lesser value are expensed in the year of acquisition.
(n) Amortisation and depreciation of intangibles and property, plant and equipment
Land is not depreciated as it has an unlimited useful life.
Depreciation on property, plant and equipment is calculated on a straight line basis so as to allocate the net cost (or revalued amount) of each depreciable asset, less its estimated residual value, progressively over its estimated useful life. 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.
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.
The depreciable amount of improvements to or on a leasehold property is progressively allocated over the estimated useful life of the improvements or the unexpired period of the lease, whichever is shorter.
Items comprising the technical library of the Department are expensed on acquisition.
Certain assets have been identified as ‘complex’ assets with separately identifiable components that are subject to regular replacement. The components of these assets are classified separately and depreciated over their respective useful lives.
For each class of depreciable asset the following depreciation rates were generally used;*
Class Depreciation ratesBuildings - 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%. Motor vehicles (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 (Roma Street Parkland): From 1.25% to 6.67% in accordance with useful life of components.
Intangible Assets Amortisation rates Internal use 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.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
135.
Department of Public Works
Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(o) Revaluations of non-current physical assets
Land, buildings, infrastructure and heritage assets are measured at fair value in accordance with AASB 1041 Revaluation of Non-Current Assets and Queensland Treasury’s Non-Current Asset Accounting Guidelines for the Queensland Public Sector. All other non-current assets, principally plant and equipment and intangibles, are measured at cost.
A comprehensive revaluation of the major properties within the commercial land and buildings portfolio is performed at two year intervals, 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. Separately identified components of assets are valued on the same basis as the assets to which they relate.
(p) Intangibles
Internally developed/internal use software Intangible assets held by the Department represent its investment in internally developed software. These assets are recorded at cost and are amortised generally at a rate of 20% on a straight-line basis. However, where appropriate, the useful lives of certain assets may be determined on an individual case basis.
GoodwillGoodwill 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. Both purchased goodwill and goodwill on consolidation are amortised on a straight-line basis over a period of 20 years. The balances are reviewed annually and any balance representing future benefits for which the realisation is considered to be no longer probable are written off.
Asset recognition threshold The recognition threshold for Intangibles generally is $50,000.
(q) Leases
A distinction is made between finance leases that effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership, and operating leases under which the lessor effectively retains substantially all such risks and benefits.
Where a non-current physical asset is acquired by means of a finance lease, the asset is recognised at an amount equal to the present value of the minimum lease payments. The liability is recognised at the same amount. 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.
Where applicable lease incentives received on entering into operating leases are recognised as liabilities. Lease payments are allocated between rental expense and reduction of the liability.
(r) 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.
(s) Interest-bearing liabilities
Loans payable are recognised at the face value of the principal outstanding, interest being expensed or otherwise recognised as it accrues. The fair value of these loans is disclosed in Note 31.
(t) Employee entitlements
Wages, salaries, recreation leave and sick leave Wages, salaries and annual leave due but unpaid at reporting date are recognised in the Statement of Financial Position 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.
The pattern of sick leave taken is expected to be stable in the future, and as sick leave entitlements do not vest with employees, no provision has been made for sick leave entitlements.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
136.
Department of Public Works
Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(t) Employee entitlements (continued)
Long service leaveUnder the Queensland Government’s long service leave scheme a levy is made on the Department to cover this expense. 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.
SuperannuationEmployer superannuation contributions 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, 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.
(u) 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 on operating surplus adjusted for permanent differences between taxable and accounting income. The tax effect of timing differences, which arise from items being brought to account in different periods for income tax and accounting purposes, is recognised in the Statement of financial position as a future income tax equivalent benefit or a provision for deferred income tax equivalent.
Future income tax equivalent benefits are not brought to account unless realisation of the asset is assured beyond reasonable doubt. Future income tax equivalent benefits relating to entities with tax losses are only brought to account when realisation is virtually certain.
(v) 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.
(w) Allocation of overheads to departmental outputs/major activities
The Department has the necessary information systems to allocate direct items to outputs/activities, and this is reflected in the Statement of outputs/major activities.
The revenue and expenses of the Department’s corporate and executive services activity are allocated to outputs/ activities on a cost recovery basis.
(x) 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.
(y) Reserves
Contingency 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.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
137.
Department of Public Works
Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(z) Rounding
Amounts included in the financial statements have been rounded to the nearest $1,000 or, where an amount is $500 or less, to zero. Individual amounts in the Statement of Outputs/Major Activities may not add to the totals because of rounding.
(aa) Comparative information
Where necessary to facilitate comparison, comparative figures have been adjusted to conform with changes in presentation in the current year.
(ab) Borrowing costs
Borrowing Costs are recognised as expenses in the period in which they are incurred, except where they are included in the costs of qualifying assets. In the case of qualifying assets, borrowing costs are only capitalised if they can be directly attributable to the acquisition, construction or production of these assets. Qualifying assets do not include assets acquired ready for use or disposal.
Capitalisation of borrowing costs ceases after the completion of the asset and during periods when activities cease for an extended period of time on a relevant project. The capitalisation rate used to determine the amount of borrowing costs to be capitalised is the interest rate applicable to the specific borrowing as set by the Queensland Treasury Corporation.
The capitalisation rate use to determine borrowing costs is the weighted average interest rate applicable to the Department’s outstanding borrowings, 7.81 % (2004: 8.04%).
(ac) 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 PublicRecords 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.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
138.
Department of Public Works
Notes to and forming part of the financial statements
1. Summary of significant accounting policies (continued)
(ac) Outputs/major activities of the Department (continued)
e-Government and Information and Communication Technology (ICT) Strategies
This output provides strategic leadership in the delivery and governance of information and communication technology (ICT) across the government sector. It influences agency and whole-of-Government ICT activity and collaboration towards the delivery of Government priorities.
The Department achieves this by:
providing strategic planning and delivering advisory services to guide effective investment in, and efficient use of, ICT from a whole-of-Government perspective; pursuing opportunities to transform government service delivery through the effective use of ICT; ensuring ICT investment aligns with Government priorities; maximising the re-use, consolidation, sharing and standardisation of ICT investment; establishing and maintaining best practice frameworks to deliver the security, integrity, scalability, interoperability and effective management of the State’s ICT investment; and representing the State’s interests by providing input into the national ICT agenda.
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.
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 sector business 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 outsources 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
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
139.
Department of Public Works
Notes to and forming part of the financial statements
1 Summary of significant accounting policies (continued)
(ac) Outputs/major activities of the Department (continued)
QFleet
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.
SDS (Sales and Distribution Services)
SDS (Sales and Distribution Services) provides the Queensland public sector, philanthropic bodies and other organisations delivering Government programs, with a commercial-standard procurement and logistics service for office and business supplies, furniture and specialist goods. This supply chain enables customers to benefit from the bulk buying power of Government and frees up their time and resources to focus on the delivery of their programs’ core activities and outcomes.
CITEC
CITEC supplies information and communication infrastructure and information management services to Queensland Government agencies at commercial rates. CITEC also provides services to other government and private sector businesses on a fully competitive basis, 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 customers’ everyday processes vital to their operations. CITEC combines its expertise with the most current infrastructure and applications to offer one of the broadest ranges of standalone or fully integrated solutions. CITEC solutions encompass the following areas:
Information Services: providing online access to due diligence information on a fee for service basis; Infrastructure Management Services: providing end-to-end enterprise solutions including security, network connectivity and management, server management and hosting, storage management and hosting, disaster recovery, and managed desktop solutions; Business Process Outsourcing and Applications Management: providing hosting and application management services for a range of financial, human resources/payroll and enterprise applications; and Information and Communication Technology (ICT) Professional Services: providing consultative services in business and technology.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
140.
Department of Public Works
Notes to and forming part of the financial statements
1. Summary of Significant Accounting Policies (continued)
(ad) Machinery-of-Government Changes
The Racing Industry Services output was transferred from the Department of Housing as a consequence of a machinery-of-Government change effective from 1 July 2004. On that date associated assets and liabilities were transferred from the Department of Housing to the Department of Public Works.
As from 1 July 2004, 84 staff transferred from the construction and design arm of the Aboriginal and Torres Strait Islander Housing output of the Department of Housing to the Department of Public Works. The aim of this move is to provide enhanced supervision and support for staff delivering construction services, and to provide the Department with value for money in its Indigenous housing construction activities.
Information concerning the assets and liabilities for these activities transferred is provided at Note 36.
(ae) Adoption of international financial reporting standards
The Financial Reporting Council has determined that all entities preparing general purpose financial statements will apply the Australian Equivalents to International Financial Reporting Standards (IFRSs) for reporting periods beginning on or after 1 January 2005. The Department established a framework for reviewing Australian Equivalent to IFRS and assisting in the implementation of the new reporting requirements under the direction of the Finance Committee. All Australian Equivalents to IFRSs have been reviewed for implications for policies, procedures, systems and financial impacts arising from such changes.
To date, the department has identified the following likely impacts arising from the adoption of Australian Equivalents to IFRSs:
The valuation of inventories will not change from the lower of cost and net realisable value as stated in note 1(j) under AASB 102 Inventories. It is therefore estimated that there will be no change in the valuation of inventories; The introduction of AASB 136 Impairment of Assets requires an annual impairment test to be performed on all non-current physical and intangible assets. The material assets of the department are currently valued at fair value (either current market buying price or depreciated current replacement cost) and the effect of this Standard is expected to be immaterial. However, as an impairment test has not previously applied to the public sector, an assessment of the effect is still ongoing and cannot be quantified at this time; AASB 119 Employee Benefits requires employers to recognise the net surplus or deficit in their employer sponsored defined benefit superannuation funds as an asset or liability, respectively. As the department contributes to a whole-of-Government superannuation scheme, and the Government assumes the responsibility for the funding of the scheme, the department will recognise as a liability only that portion of superannuation contributions owing to QSuper at the end of the reporting period. There will therefore be no effect on the departmental accounts; AASB 119 also requires that where there are instances of annual leave not expected to be paid within 12 months, the liability is to be measured at the present value of the future cash flows. Currently, all annual leave is measured at the nominal amount and the non-current portion is not material. Accordingly, there is not expected to be any material effect on the accounts; Intangible assets held by the department are valued at cost and have no external market. There will therefore be no change in the value disclosed in the financial statements under AASB 138 Intangible Assets;The introduction of AASB 5 Non-Current Assets Held for Sale and Discontinued Operations will require the reclassification of a number of Property, plant and equipment assets to a new category of current assets – Assets held for disposal. The asset classes affected are those of Motor vehicles – fleet and Land and buildings.The expected value of the assets to be reclassified as at 1 July 2004 is in the order of $55 million. The effect as at 30 June 2005 has not been quantified at this time. This represents approximately 3.5% of the value of Property, plant and equipment held by the Department; and Currently, the commercialised business units adopt the liability method of tax-effect accounting whereby the income tax expense is based on the accounting profit adjusted for any permanent differences. Timing differences are currently brought to account as either a provision for deferred income tax or future income tax benefit. Under AASB 112 Income Taxes, the economic entity will be required to adopt a balance sheet approach under which temporary differences are identified for each asset and liability rather than the effects of the timing and permanent differences between taxable income and accounting profit. This change in methodology is not expected to have any material effect on the accounts of the commercialised business units.
Policy decisions made at a whole-of-Government level in relation to the limiting of options in the Australian Equivalent to IFRSs may have the following additional impact on the financial report:
Subject to proposed GFS/GAAP Harmonisation and ED 132 Request for Comment on IASB ED Proposed amendments to IAS 39 Financial Instruments: Recognition and Measurement - The Fair Value Option, financial instruments including borrowings may be recorded at fair value with market value fluctuations taken to the profit or loss. This may result in increased volatility in the Net Operating Result of the Department. For the current year, the adoption of fair value would result in an increase in the borrowings disclosed in note 31 from $530.360M to $537.388M (as at 30 June 2005).
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
141.
Department of Public Works
Notes to and forming part of the financial statements
2. Summary of Significant Accounting Policies (continued)
(af) Implementation of the Shared Service Initiative
Implementation of the Shared Service Initiative commenced on 1 July 2003. Under this initiative, shared service providers (SSPs) were established to provide a standard suite of corporate services to client departments and in some agreed instances provide additional out of scope services. Standard software application support and infrastructure for all corporate service applications for the five large-scale SSPs (as well as other agreed non-standard services) is provided by CorpTech.
The SSP for the Department of Public Works is Corporate Solutions Queensland for which the Department of Employment and Training is the host agency. The host agency for CorpTech is Queensland Treasury.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
142.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
2 Reconciliation of payments from consolidated fundand output revenue recognised in the Statementof financial performanceBudgeted output appropriation 110,165 77,152 110,165 77,152Less: Equity return abolished from 1 July 2004 (59,208) - (59,208) -Transfers from/(to) other departments 3,818 12,091 3,818 12,091Transfers from/(to) other headings 12,401 - 12,401 -Treasurer's advances - - - -Lapsed output appropriation (3,557) (4,521) (3,557) (4,521)Unforeseen expenditure - - - -Repayments of incorrectly paid amounts - - - -Total output receipts 63,619 84,722 63,619 84,722Less: Opening balance output revenue receivable (8,559) (5,724) (8,559) (5,724)Plus: Closing balance of output revenue receivable 9,852 8,559 9,852 8,559Output revenue recognised in the Statement of financial performance 64,912 87,557 64,912 87,557
Reconciliation of payments from consolidated fund and equity adjustment recognised in contributedequity (Note 25)Budgeted equity adjustment appropriation 36,600 30,905 36,600 30,905Transfers from/(to) other departments (261) 594 (261) 594Transfers from/(to) other headings 44,058 - 44,058 -Treasurer's advances - - - -Lapsed equity adjustment appropriation - (10,144) - (10,144)Unforeseen expenditure 49,016 - 49,016 -Repayments of incorrectly paid amounts - - - -Total equity adjustment receipts 129,413 21,355 129,413 21,355Less: Opening balance equity adj. receivable (1,085) - (1,085) -Plus: Closing balance of equity adj. receivable 4,066 1,085 4,066 1,085Equity adjustment recognised in contributed equity (Note 25) 132,394 22,440 132,394 22,440
3 User chargesRent of government buildings 177,223 169,983 193,028 183,851Stock sales 41,492 40,226 - -Building maintenance 275,077 266,044 - -Building services 52,098 51,999 19,745 19,516Building construction 212,131 203,021 - -Professional building consultancy 79,748 66,963 1,093 902Printing sales 15,427 17,486 - -Vehicle leasing, hire and workshop sales 98,099 99,163 - -Information technology services 126,667 41,128 - -Other 12,644 8,375 31,089 15,282
1,090,606 964,388 244,955 219,551
Parent EntityDepartment of Public Works Consolidated
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
2 Reconciliation of payments from consolidated fundand output revenue recognised in the Statementof financial performance
Total output receipts 63,619 84,722 63,619 84,722
Output revenue recognised in the Statement of financial performance 64,912 87,557 64,912 87,557
Reconciliation of payments from consolidated fund and equity adjustment recognised in contributedequity (Note 25)
Total equity adjustment receipts 129,413 21,355 129,413 21,355
Parent EntityDepartment of Public Works Consolidated
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
143.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
4 Grants and other contributionsGrants 4,376 2,291 2,826 1,010Donations - assets 7,900 - 7,900 -Services received at below fair value - 116 - 116Community service obligations 12,149 10,792 - -
24,425 13,199 10,726 1,126
5 Other revenues Interest 6,578 3,093 2,753 942Gain on sale of property, plant and equipment* 3,654 10,023 155 236Insurance recoveries 181 22 181 22Miscellaneous revenue 6,675 4,355 4,486 1,529
17,088 17,493 7,575 2,729
*Gain on sale of property, plant and equipment Proceeds from sale 66,942 88,743 14,352 4,256 Less: Written down value of assets disposed of 63,288 78,720 14,197 4,020
3,654 10,023 155 236
6 Employee expenses/number of employees/chief executive's remunerationEmployee expenses: Wages and salaries 242,705 195,882 33,756 21,243 Employer superannuation contributions 27,383 21,837 4,055 2,483 Long service leave levy 3,630 2,953 510 324 Workers' compensation 3,048 2,534 47 37 Voluntary early retirements 1,378 384 83 - Other 17,131 13,368 3,132 1,817
295,275 236,958 41,583 25,904
Number of employees: 4,557 4,434 536 482
The number of employees includes both full-time employees and part-time employees measured on a full-time equivalent basis.
Chief executive's remuneration p.a.:The remuneration of the Chief Executive Officer of the Department of Public Works is within the following salary band:
Level: CEO 2 Min. $186,693 Max. $210,475
In addition to the base superannuable salary, the Chief Executive Officer is also eligible for a bonus, based on an assessment by the Premier and Minister for Trade. The total of such bonuses paid to the Chief Executives of all departments is published in the Annual Report of the Office of PublicService Merit and Equity.
The superannuable salary does not include industry and like allowances, leave loading and fringe benefits such as private use of a government motor vehicle and employer superannuation contributions.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
4 Grants and other contributions
24,425 13,199 10,726 1,126
5 Other revenues
17,088 17,493 7,575 2,729
*Gain on sale of property, plant and equipment
3,654 10,023 155 236
6 Employee expenses/number of employees/chief executive's remunerationEmployee expenses:
295,275 236,958 41,583 25,904
Number of employees:
Chief executive's remuneration p.a.:
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
4 Grants and other contributions
24,425 13,199 10,726 1,126
5 Other revenues
17,088 17,493 7,575 2,729
*Gain on sale of property, plant and equipment
3,654 10,023 155 236
6 Employee expenses/number of employees/chief executive's remunerationEmployee expenses:
295,275 236,958 41,583 25,904
Number of employees:
Chief executive's remuneration p.a.:
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
4 Grants and other contributions
24,425 13,199 10,726 1,126
5 Other revenues
17,088 17,493 7,575 2,729
*Gain on sale of property, plant and equipment
3,654 10,023 155 236
6 Employee expenses/number of employees/chief executive's remunerationEmployee expenses:
295,275 236,958 41,583 25,904
Number of employees:
Chief executive's remuneration p.a.:
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
144.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
7 Supplies and servicesWarehousing and distribution 35,152 34,900 - -Government building services 405,614 385,532 - -Property related expenses 136,483 123,963 190,288 173,688Printing production 7,943 10,978 - -Professional building consultancy 15,924 10,628 - -Fleet management and maintenance 28,570 30,602 - -Information technology services 64,015 20,481 - -Other 49,291 39,266 37,592 15,932
742,992 656,350 227,880 189,620
8 Equity return expense - 52,980 - 52,980
The Queensland Government has decided that an equity return will not be required for 2004-05 and subsequent years.
9 Depreciation and amortisation Buildings 17,506 15,786 17,506 15,786Heritage and cultural assets 281 250 281 250Plant and equipment 2,606 2,122 900 663Infrastructure assets (Roma Street Parkland) 1,236 1,136 1,236 1,136Motor vehicles 41,855 42,570 - -Computer equipment 4,536 2,250 1,289 643Goodwill arising on consolidation 122 41 - -Intangibles 7,018 6,229 1,753 881
75,160 70,384 22,965 19,359
The approximate increase/(decrease) in depreciation and amortisation expense as a result of there-assessment of the useful lives of depreciable assets during the reporting period was:
10 Grants and subsidiesDeagon training track subsidy 2,000 - 2,000 -Mackay convention precinct capital grant 477 - 477 -Island watch project 4,202 - 4,202 -Other 255 96 255 96
6,934 96 6,934 96
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
7 Supplies and services
742,992 656,350 227,880 189,620
8 Equity return expense - 52,980 - 52,980
9 Depreciation and amortisation
75,160 70,384 22,965 19,359
10 Grants and subsidies
6,934 96 6,934 96
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
7 Supplies and services
742,992 656,350 227,880 189,620
8 Equity return expense - 52,980 - 52,980
9 Depreciation and amortisation
75,160 70,384 22,965 19,359
10 Grants and subsidies
6,934 96 6,934 96
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
7 Supplies and services
742,992 656,350 227,880 189,620
8 Equity return expense - 52,980 - 52,980
9 Depreciation and amortisation
75,160 70,384 22,965 19,359
10 Grants and subsidies
6,934 96 6,934 96
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
145.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
11 Other ExpensesInsurance premiums - QGIF 533 462 329 283Insurance premiums - other 5,041 5,183 - -External audit fees 578 549 186 192Bank charges / merchant fees 403 276 7 6Net loss on disposal of non-current assets* 13,959 4,585 7,972 25Write-down of assets 2,801 176 2,801 -Operating lease rentals 8,357 3,552 272 175Doubtful debts raised as a provision 122 (81) - 6Write-down of inventory 73 153 - -Donations/gifts 5 8 - 5Losses: Bad debts 56 32 - - Public monies 3 6 - - Public property # - 42 - 42Provision for foreseeable losses 20 2 - -Performance penalties 88 - - -Other 1,359 494 200 160Total other expenses 33,398 15,439 11,767 894
*Net loss on disposal of non-current assets - Proceeds from sale 50,155 38,698 94 2 - Less: written down value of assets disposed of 64,114 43,283 8,066 27
(13,959) (4,585) (7,972) (25)
# Certain losses of public property are insured by the Queensland Government Insurance Fund (QGIF). The claims made in respect of these losses have yet to be assessed by QGIF and the amount recoverable cannot be estimated reliably. When notified by QGIF of the acceptance of the claims, revenue will be recognised for the agreed settlement amount and disclosed in Note 5 as 'Other revenues - Insurance recoveries'.
15 InventoriesCurrentInventory held for re-sale: Raw materials 196 188 - - Work in progress 877 577 - - Finished goods 4,720 4,719 - - Construction work in progress* 8,693 6,730 - -
14,486 12,214 - -
Inventory not held for re-sale: Raw materials 1,782 1,853 - -
Capital works in progress - at cost 20,339 65,461 20,180 63,841
Total property, plant and equipment 1,782,651 1,544,074 1,392,921 1,197,830
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment
Land:
478,482 414,484 478,482 414,484
Buildings:
808,973 639,791 809,302 640,521
Heritage and cultural assets:
24,983 24,141 24,983 24,141
Plant and equipment:
9,049 8,059 2,639 2,265
Infrastructure assets (Roma Street Parkland):
56,445 50,949 56,445 50,949
Motor vehicles - fleet:
376,059 333,119 - -
Computer equipment:
8,321 8,070 890 1,629
Capital works in progress - at cost 20,339 65,461 20,180 63,841
Total property, plant and equipment 1,782,651 1,544,074 1,392,921 1,197,830
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment
Land:
478,482 414,484 478,482 414,484
Buildings:
808,973 639,791 809,302 640,521
Heritage and cultural assets:
24,983 24,141 24,983 24,141
Plant and equipment:
9,049 8,059 2,639 2,265
Infrastructure assets (Roma Street Parkland):
56,445 50,949 56,445 50,949
Motor vehicles - fleet:
376,059 333,119 - -
Computer equipment:
8,321 8,070 890 1,629
Capital works in progress - at cost 20,339 65,461 20,180 63,841
Total property, plant and equipment 1,782,651 1,544,074 1,392,921 1,197,830
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment
Land:
478,482 414,484 478,482 414,484
Buildings:
808,973 639,791 809,302 640,521
Heritage and cultural assets:
24,983 24,141 24,983 24,141
Plant and equipment:
9,049 8,059 2,639 2,265
Infrastructure assets (Roma Street Parkland):
56,445 50,949 56,445 50,949
Motor vehicles - fleet:
376,059 333,119 - -
Computer equipment:
8,321 8,070 890 1,629
Capital works in progress - at cost 20,339 65,461 20,180 63,841
Total property, plant and equipment 1,782,651 1,544,074 1,392,921 1,197,830
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
149.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment (continued)
ReconciliationsReconciliations of the carrying amount for each class of property, plant and equipment are set out below:
Land:Carrying amount at the beginning of the year 414,484 371,766 414,484 371,766Acquisitions 21,300 24,318 21,300 24,318Acquisitions through restructuring 970 - 970 -Disposals (18,471) (8,814) (18,471) (8,814)Revaluation increments/(decrements) 60,199 27,214 60,199 27,214Carrying amount at the end of the year 478,482 414,484 478,482 414,484
Buildings:Carrying amount at the beginning of the year 639,791 615,283 640,521 615,283Acquisitions 81,402 - 82,234 -Acquisitions through restructuring 1,588 2,173 1,588 2,173Disposals (1,945) (682) (1,945) (682)Transfers between classes 60,655 11,492 60,152 12,222Revaluation increments/(decrements) 44,258 27,385 44,258 27,385Depreciation/amortisation (17,506) (15,860) (17,506) (15,860)Other adjustments 730 - - -Carrying amount at the end of the year 808,973 639,791 809,302 640,521
Heritage and cultural assets: Carrying amount at the beginning of the year 24,141 21,515 24,141 21,515Acquisitions 225 - 225 -Disposals (1,394) - (1,394) -Transfers between classes 786 812 786 812Revaluation increments/(decrements) 1,506 2,064 1,506 2,064Depreciation/amortisation (281) (250) (281) (250)Carrying amount at the end of the year 24,983 24,141 24,983 24,141
Plant and equipment: Carrying amount at the beginning of the year 8,059 6,706 2,265 2,225Acquisitions 1,424 1,311 353 788Acquisitions through restructuring 947 1,791 937 -Disposals (62) (83) (16) (6)Transfers between classes 1,340 (79) - (79)Depreciation/amortisation (2,606) (2,122) (900) (663)Other adjustments (53) 535 - -Carrying amount at the end of the year 9,049 8,059 2,639 2,265
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment (continued)
ReconciliationsReconciliations of the carrying amount for each class of property, plant and equipment are set out below:
Land:
478,482 414,484 478,482 414,484
Buildings:
808,973 639,791 809,302 640,521
Heritage and cultural assets:
24,983 24,141 24,983 24,141
Plant and equipment:
9,049 8,059 2,639 2,265
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment (continued)
ReconciliationsReconciliations of the carrying amount for each class of property, plant and equipment are set out below:
Land:
478,482 414,484 478,482 414,484
Buildings:
808,973 639,791 809,302 640,521
Heritage and cultural assets:
24,983 24,141 24,983 24,141
Plant and equipment:
9,049 8,059 2,639 2,265
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment (continued)
ReconciliationsReconciliations of the carrying amount for each class of property, plant and equipment are set out below:
Land:
478,482 414,484 478,482 414,484
Buildings:
808,973 639,791 809,302 640,521
Heritage and cultural assets:
24,983 24,141 24,983 24,141
Plant and equipment:
9,049 8,059 2,639 2,265
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
150.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment (continued)
Infrastructure assets (Roma Street Parkland): Carrying amount at the beginning of the year 50,949 48,376 50,949 48,376Acquisitions 6,602 550 6,602 550Acquisitions through restructuring 3 - 3 -Disposals (5,500) - (5,500) -Transfers between classes 28 - 28 -Revaluation increments/(decrements) 5,599 3,159 5,599 3,159Depreciation/amortisation (1,236) (1,136) (1,236) (1,136)Carrying amount at the end of the year 56,445 50,949 56,445 50,949
Motor vehicles - fleet:Carrying amount at the beginning of the year 333,119 317,602 - -Acquisitions 189,922 174,440 - -Disposals (105,023) (116,369) - -Donations made (108) - - -Depreciation/amortisation (41,855) (42,570) - -Other adjustments 4 16 - -Carrying amount at the end of the year 376,059 333,119 - -
Computer equipment:Carrying amount at the beginning of the year 8,070 1,238 1,629 396Acquisitions 5,623 3,660 528 2,018Acquisitions through restructuring 12 6,004 5 -Disposals (110) (218) - (142)Transfers between classes 26 - 17 -Depreciation/amortisation (4,536) (2,250) (1,289) (643)Other adjustments (764) (364) - -Carrying amount at the end of the year 8,321 8,070 890 1,629
Capital works in progress - at cost:Carrying amount at the beginning of the year 65,461 21,943 63,841 21,236Acquisitions 27,896 56,888 27,035 55,544Acquisitions through restructuring - 1,967 - -Disposals (9,713) - (9,713) -Transfers between classes (62,825) (14,488) (60,983) (12,939)Recoverable amount write-downs as per AAS 10 (196) (295) - -Other adjustments (284) (554) - -Carrying amount at the end of the year 20,339 65,461 20,180 63,841
Total property, plant and equipment 1,782,651 1,544,074 1,392,921 1,197,830
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment (continued)
Infrastructure assets (Roma Street Parkland):
56,445 50,949 56,445 50,949
Motor vehicles - fleet:
376,059 333,119 - -
Computer equipment:
8,321 8,070 890 1,629
Capital works in progress - at cost:
20,339 65,461 20,180 63,841
Total property, plant and equipment 1,782,651 1,544,074 1,392,921 1,197,830
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment (continued)
Infrastructure assets (Roma Street Parkland):
56,445 50,949 56,445 50,949
Motor vehicles - fleet:
376,059 333,119 - -
Computer equipment:
8,321 8,070 890 1,629
Capital works in progress - at cost:
20,339 65,461 20,180 63,841
Total property, plant and equipment 1,782,651 1,544,074 1,392,921 1,197,830
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment (continued)
Infrastructure assets (Roma Street Parkland):
56,445 50,949 56,445 50,949
Motor vehicles - fleet:
376,059 333,119 - -
Computer equipment:
8,321 8,070 890 1,629
Capital works in progress - at cost:
20,339 65,461 20,180 63,841
Total property, plant and equipment 1,782,651 1,544,074 1,392,921 1,197,830
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
151.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment (continued)
Commercial properties and heritage listed buildingsAs part of a rolling revaluation programme, the Department of Public Works procured independentvaluations for ninety three commercial properties for 30 June 2005. The firms CB Richard Ellis and DTZ Australia prepared these valuation reports. Signatories to all of the assessments are registered valuers under the Valuers Registration Act 1992 .
The balance of the commercial portfolio was subject to an interim revaluation with the application ofindices supplied by the Department of Natural Resources and Mines. Indices derived from market analysis of movement in local land values were applied to land holdings while the QueenslandImplicit Price Deflator was applied to the buildings.
Government employee housingIn 2004/2005, a full valuation was undertaken by the Department of Natural Resources and Mines on all employee housing properties. Market values were provided for these properties in compliance with AASB1041 Revaluation of Non-current Assets.
Infrastructure assetsThe infrastructure assets comprising Roma Street Parkland were subject to an interim indexation with the application of the Queensland Implicit Price Deflator.
Revaluation increment for assets disposed of Amount of revaluation increment in respect of assets disposed of transferred to Retained Surpluses (7,681) (1,662) (7,681) (1,662)
20 PayablesCurrentLong service leave levy payable 883 787 123 95Trade creditors 84,146 73,107 28,299 17,902Accrued salaries, wages and other related expenses 3,900 2,835 597 427Advance on Roma Street Parkland land sale 6,838 17,100 6,838 17,100Other 17,104 19,184 6,822 7,188
112,871 113,013 42,679 42,712
Non-currentOther 220 - - -
220 - - -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment (continued)
Commercial properties and heritage listed buildings
Government employee housing
Infrastructure assets
Revaluation increment for assets disposed of
20 Payables
112,871 113,013 42,679 42,712
220 - - -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment (continued)
Commercial properties and heritage listed buildings
Government employee housing
Infrastructure assets
Revaluation increment for assets disposed of
20 Payables
112,871 113,013 42,679 42,712
220 - - -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
19 Property, plant and equipment (continued)
Commercial properties and heritage listed buildings
Government employee housing
Infrastructure assets
Revaluation increment for assets disposed of
20 Payables
112,871 113,013 42,679 42,712
220 - - -
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
152.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
475,233 473,852 168,869 208,319Refer also Note 31 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 $842,003 (2004: $1,090,294) has been capitalised during the current reporting period. Repayment dates vary from 1 July 2005 to 16 March 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 fleet 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 $537.388M (2004:$517.752M). 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 in 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 2005, overdraft facilities with the Commonwealth Bank with limits ranging from $2M to$40M were in place under the Queensland Treasury cash management incentive regime. The current overdraft interest rate is 8.85%.
Non-currentEmployee entitlements - long service leave 119 111 - -Employee benefits - annual leave 1,068 - - -
1,187 111 - -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
21 Interest-bearing liabilities
55,652 41,640 47,947 38,724
475,233 473,852 168,869 208,319
22 Provisions
41,466 35,599 4,216 3,350
1,187 111 - -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
21 Interest-bearing liabilities
55,652 41,640 47,947 38,724
475,233 473,852 168,869 208,319
22 Provisions
41,466 35,599 4,216 3,350
1,187 111 - -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
21 Interest-bearing liabilities
55,652 41,640 47,947 38,724
475,233 473,852 168,869 208,319
22 Provisions
41,466 35,599 4,216 3,350
1,187 111 - -
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
153.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
22 Provisions (continued)
Movements in provisions
Dividends:Carrying amount at the beginning of the year 6,370 16,516 - -Additional provision recognised 4,726 2,937 - -Reduction in provision as a result of payments (7,024) (13,083) - -Carrying amount at the end of the year 4,072 6,370 - -
Other:Carrying amount at the beginning of the year 3,422 1,194 - 406Additional provision recognised 7,580 2,689 - -Additional provision recognised due to restructure - 21 - -Reduction as a result of payments (271) (76) - -Reduction as a result of re-measurement (77) (406) - (406)Carrying amount at the end of the year 10,654 3,422 - -
23 Tax liabilitiesCurrentProvision for income tax expense 3,761 2,727 - -Provision for deferred income tax equivalents 55 57 - -
3,816 2,784 - -
Non-currentProvision for deferred income tax equivalents 11,493 8,706 - -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
22 Provisions (continued)
Movements in provisions
Dividends:
4,072 6,370 - -
Other:
10,654 3,422 - -
23 Tax liabilities
3,816 2,784 - -
11,493 8,706 - -
24 Other liabilities
51,596 43,802 4,256 6,053
5,091 546 4,931 -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
22 Provisions (continued)
Movements in provisions
Dividends:
4,072 6,370 - -
Other:
10,654 3,422 - -
23 Tax liabilities
3,816 2,784 - -
11,493 8,706 - -
24 Other liabilities
51,596 43,802 4,256 6,053
5,091 546 4,931 -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
22 Provisions (continued)
Movements in provisions
Dividends:
4,072 6,370 - -
Other:
10,654 3,422 - -
23 Tax liabilities
3,816 2,784 - -
11,493 8,706 - -
24 Other liabilities
51,596 43,802 4,256 6,053
5,091 546 4,931 -
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
154.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
25 Changes in equity
Contributed equityBalance at the beginning of the financial year 211,979 147,478 168,407 115,335Transaction with owners as owners: Equity injections 132,769 22,837 132,394 22,440 Equity withdrawals (283) (303) - - Assets assumed/liabilities relinquished 7,881 42,281 7,816 41,647 Assets relinquished/liabilities assumed (14,449) (11,273) (14,211) (11,015) CITEC opening balance (MOG change) - 10,959 - -Balance at the end of the financial year 337,897 211,979 294,406 168,407
Retained surpluses/accumulated deficitsBalance at the beginning of the financial year 595,736 584,549 558,188 554,981Net surplus or deficit 2,997 9,686 (2,180) 1,545Non-owner changes in equity recognised on theface of the Statement of financial performance: Transfer (to)/from reserves at end of year (2,972) (2,327) - - Net amount of each revenue, expense, valuation or other adjustment not disclosed above recognised as a direct adjustment to equity: Transfer on disposal 7,681 1,662 7,681 1,662 Correction of prior year error 1 - - -Transaction with owners as owners: Dividends paid or declared (4,072) (7,506) - - CITEC opening balance (MOG change) - 13,267 - -Beginning balance elimination and other adjustments 922 (3,595) - -Balance at the end of the financial year 600,293 595,736 563,689 558,188
Asset revaluation reserveBalance at the beginning of the financial year 233,691 175,533 233,691 175,533Non-owner changes in equity recognised on the face of the Statement of Financial Performance: Increment on revaluation of: - Land 60,199 27,214 60,199 27,214 - Buildings 44,259 27,385 44,259 27,385 - Heritage and Cultural Assets 1,505 2,064 1,505 2,064 - Infrastructure 5,599 3,157 5,599 3,157 Transfer on disposal (7,681) (1,662) (7,681) (1,662)Balance at the end of the financial year * 337,572 233,691 337,572 233,691
Contingency reserveBalance at the beginning of the financial year 49,968 47,641 - -Non-owner changes in equity recognised on the face of the Statement of Financial Performance: Transfer (to)/from retained surplus 2,972 2,327 - -Balance at the end of the financial year 52,940 49,968 - -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
25 Changes in equity
Contributed equity
337,897 211,979 294,406 168,407
Retained surpluses/accumulated deficits
600,293 595,736 563,689 558,188
sset revaluation reserve
337,572 233,691 337,572 233,691
Contingency reserve
52,940 49,968 - -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
25 Changes in equity
Contributed equity
337,897 211,979 294,406 168,407
Retained surpluses/accumulated deficits
600,293 595,736 563,689 558,188
sset revaluation reserve
337,572 233,691 337,572 233,691
Contingency reserve
52,940 49,968 - -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
25 Changes in equity
Contributed equity
337,897 211,979 294,406 168,407
Retained surpluses/accumulated deficits
600,293 595,736 563,689 558,188
sset revaluation reserve
337,572 233,691 337,572 233,691
Contingency reserve
52,940 49,968 - -
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
155.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
25 Changes in equity (continued)
Asset Replacement ReserveBalance at the beginning of the financial year 3,000 3,000 - -Balance at the end of the financial year 3,000 3,000 - -
Total of all reserves 393,512 286,659 337,572 233,691
* Closing balance of asset revaluation reserve by Class:
Land 215,997 164,072 215,997 164,072 Buildings 104,906 60,948 104,906 60,948 Heritage and cultural assets 5,832 3,434 5,832 3,434 Infrastructure 10,837 5,237 10,837 5,237
337,572 233,691 337,572 233,691
Outside equity interests in controlled entitiesOutside equity interests comprises: Share capital 1,019 1,019 - - Reserves (549) (549) - - Retained profits/(losses) 756 719 - -Balance at the end of the financial year 1,226 1,189 - -
Net profit attributable to outside equity interests 358 265 - -
26 Cash flow information
(a) Reconciliation of cash
Cash at the end of the financial year as shown in the Statement of cash flows is reconciled to the related items in the Statement of financial position as follows:
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
25 Changes in equity (continued)
sset Replacement Reserve
3,000 3,000 - -
Total of all reserves 393,512 286,659 337,572 233,691
* Closing balance of asset revaluation reserve by Class:
337,572 233,691 337,572 233,691
Outside equity interests in controlled entities
1,226 1,189 - -
26 Cash flow information
(a) Reconciliation of cash
100,399 91,447 16,182 14,254
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
25 Changes in equity (continued)
sset Replacement Reserve
3,000 3,000 - -
Total of all reserves 393,512 286,659 337,572 233,691
* Closing balance of asset revaluation reserve by Class:
337,572 233,691 337,572 233,691
Outside equity interests in controlled entities
1,226 1,189 - -
26 Cash flow information
(a) Reconciliation of cash
100,399 91,447 16,182 14,254
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
25 Changes in equity (continued)
sset Replacement Reserve
3,000 3,000 - -
Total of all reserves 393,512 286,659 337,572 233,691
* Closing balance of asset revaluation reserve by Class:
337,572 233,691 337,572 233,691
Outside equity interests in controlled entities
1,226 1,189 - -
26 Cash flow information
(a) Reconciliation of cash
100,399 91,447 16,182 14,254
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
156.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
26 Cash flow information (continued)
(b) Reconciliation of operating result to net cash provided by operating activities
Operating result from ordinary activities before income tax expense 8,638 16,390 (2,180) 1,545Less: Income tax expense 5,283 6,439 - -
3,355 9,951 (2,180) 1,545Non cash itemsDepreciation and amortisation expense 75,159 70,382 22,965 19,359Doubtful debts written off or provided for 257 (121) 89 1Profit/loss on sale or disposal of non-current assets 10,305 (5,438) 7,817 (211)Resources received free of charge or for nominal value - (116) - (116)Write-down of assets - 176 - -Provision for foreseeable losses 20 2 - -Assets and liabilities assumed/relinquished (48) (139) - (632)Capitalised interest 842 1,090 842 1,090Transactions processes through related entity 7 31 - -Write-down of inventory 16 39 - -Non-cash items adjustments against equity 211 314 - 314Adjustments against equity (1,174) - (1,174) -
Change in assets and liabilities(Increase) in net receivables (22,948) (20,755) (1,910) (9,061)(Increase)/decrease in inventories (1,270) 1,449 - -(Increase)/decrease in interest receivable (732) 17 (544) 8(Increase)/decrease in prepayments (731) 1,766 (169) (184)(Increase)/decrease in future tax equivalents benefit (435) 49 - -(Increase)/decrease in other assets (105) 16 (111) -Increase/(decrease) in unearned revenue 5,284 4,595 (2,562) 3,627Increase in employee provisions 1,014 1,621 865 1,084Increase in payables 14,759 27,341 2,338 11,919Increase/(decrease) in provisions 8,351 (107) - (406)Increase in provision for tax equivalents expense 545 782 - -Increase in interest payable 220 161 - -Increase in other liabilities 4,618 1,402 4,930 1Increase in provision for deferred tax equivalents 2,726 198 - -Change in assets and liabilities for non cash items (9,094) (590) (9,094) (590)(Increase)/decrease in GST input tax credits receivable (12,148) 807 (11,056) (1,036)Increase/(decrease) in GST input tax credits payable 528 1,644 - -Net cash provided by operating activities 79,532 96,567 11,046 26,712
27 Non-cash financing and investing activities
Assets received or donated by the Department and recognised as revenues and expenses are set outin Notes 4 and 11 respectively.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
26 Cash flow information (continued)
(b) Reconciliation of operating result to net cash provided by operating activities
3,355 9,951 (2,180) 1,545
Net cash provided by operating activities 79,532 96,567 11,046 26,712
27 Non-cash financing and investing activities
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
26 Cash flow information (continued)
(b) Reconciliation of operating result to net cash provided by operating activities
3,355 9,951 (2,180) 1,545
Net cash provided by operating activities 79,532 96,567 11,046 26,712
27 Non-cash financing and investing activities
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
26 Cash flow information (continued)
(b) Reconciliation of operating result to net cash provided by operating activities
3,355 9,951 (2,180) 1,545
Net cash provided by operating activities 79,532 96,567 11,046 26,712
27 Non-cash financing and investing activities
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
157.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
28 Commitments for expenditure/lease commitments receivable
(a) Finance leases
Lease liabilities recognised in the Statement of financial position:
Current 369 372 - 22Non-current 32 2,203 - 1,803
401 2,575 - 1,825
Commitments under finance leases at the reporting date are inclusive of anticipated GST and are payable as follows:
Not later than one year 381 589 - 208Later than one year and not later than five years 32 1,244 - 832Later than five years - 3,656 - 3,656
Total commitments 413 5,489 - 4,696Less: Future finance charges recognised in the
Statement of financial position 12 2,914 - 2,871Finance lease liability 401 2,575 - 1,825
The finance lease commitments are classed into two categories:
Acquisition of office accommodationOne finance lease has been entered into as a means of funding the acquisition of office accommodation.Rental payments are fixed and there are no escalation clauses other than in the event of payment default. The lease arrangements do not create restrictions on other financing transactions.
Supply of computer hardware and software In all computer hardware and software leases there exists an option to instigate one of the following options prior to termination:
Extend the term of the lease at renegotiated rates and equipment upgrades.Terminate the lease and return the equipment to the lessor.Purchase the equipment at a price negotiated between the lessor and CITEC.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
28 Commitments for expenditure/lease commitments receivable
(a) Finance leases
401 2,575 - 1,825
Total commitments 413 5,489 - 4,696
Finance lease liability 401 2,575 - 1,825
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
28 Commitments for expenditure/lease commitments receivable
(a) Finance leases
401 2,575 - 1,825
Total commitments 413 5,489 - 4,696
Finance lease liability 401 2,575 - 1,825
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
28 Commitments for expenditure/lease commitments receivable
(a) Finance leases
401 2,575 - 1,825
Total commitments 413 5,489 - 4,696
Finance lease liability 401 2,575 - 1,825
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
158.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
28 Commitments for expenditure/lease commitments receivable (continued)
(b) Non-cancellable operating lease commitments
Commitments under non-cancellable operatingleases at reporting date are inclusive of anticipated GST and are payable as follows: Not later than one year 101,488 104,917 94,819 98,255 Later than one year and not later than five years 170,625 185,128 169,274 176,529 Later than five years 63,251 69,240 63,251 69,142
335,364 359,285 327,344 343,926
Most operating leases (99%) are entered into as a means of acquiring access to office accommodation.For these, rental payments are usually able to be varied based on CPI or conditions detailed in the lease. Most leases do contain renewal clauses but no purchase options exist in relation to operating leases and no operating leases contain restrictions on financing or other leasing activities.
For the other 1%, payments are fixed for the term of the lease contract based on market rates. Thereis no commitment for renewal or purchase; however, in most cases, there is an option to renew orpurchase leased equipment at the end of the contract.
(c) Expenditure commitments
Material expenditure commitments inclusive of anticipated GST contracted for but not recognised as payable are as follows: Buildings 3,763 3,969 3,763 3,969Plant and equipment 98 40 66 -Computer equipment 767 139 507 -Fleet vehicles 40,812 46,055 - -Maintenance 21,135 15,727 - -Capital grants 39,515 777 39,515 777External consultants 22,926 9,130 2,559 324Operational expenditure 18,016 8,934 6,242 143Software 134 - - -
147,166 84,771 52,652 5,213
Not later than one year 97,511 78,732 10,563 4,713Later than one year and not later than five years 49,655 6,039 42,089 500
147,166 84,771 52,652 5,213
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
28 Commitments for expenditure/lease commitments receivable (continued)
(b) Non-cancellable operating lease commitments
335,364 359,285 327,344 343,926
(c) Expenditure commitments
147,166 84,771 52,652 5,213
147,166 84,771 52,652 5,213
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
28 Commitments for expenditure/lease commitments receivable (continued)
(b) Non-cancellable operating lease commitments
335,364 359,285 327,344 343,926
(c) Expenditure commitments
147,166 84,771 52,652 5,213
147,166 84,771 52,652 5,213
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
28 Commitments for expenditure/lease commitments receivable (continued)
(b) Non-cancellable operating lease commitments
335,364 359,285 327,344 343,926
(c) Expenditure commitments
147,166 84,771 52,652 5,213
147,166 84,771 52,652 5,213
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
159.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
28 Commitments for expenditure/lease commitments receivable (continued)
Commitments under vehicle fleet finance leases as at reporting date are exclusive of GST and are receivable as follows: Not later than one year 77 211 - - Later than one year and not later than five years 160 95 - -Vehicle fleet finance leases (exclusive of GST) 237 306 - -
QFleet leases a wide range of vehicles to Queensland Government departments and otherorganisations in receipt of Government funding. Vehicles are usually provided on a fully-maintained operating lease basis, incorporating elements such as registration, insurance and maintenance.Leasing rates are based on vehicle type, options, area and nature of operation, and time and distanceprojections.
QFleet has entered into a number of finance leasing arrangements with various Queensland Government funded entities principally for motor vehicles and moveable plant.
(e) Office accommodation rents receivable
The Department of Public Works has occupancy agreements with all major Queensland Governmentdepartments. As these agreements are open-ended they do not meet the definition of an operating lease in AAS17 Leases. The amounts receivable extend over an indefinite period of time and therefore cannot be quantified in the financial statements.
29 Contingencies
Assets: Common law recovery 9 10 - -
9 10 - -
Liabilities: Common law claims 405 464 90 65 Research studies 159 159 - - Bank Guarantees: Commonwealth of Australia 80 80 - - Australian Securities and Investment Commission 382 295 - - State of Victoria 108 7 - - State of New South Wales 500 500 - - Sydney Water Corporation 125 25 - - State of Western Australia 28 28 - - Insolvency and Trustee Service Australia 127 127 - - State of Samoa 40 40 - - Other 31 - - -
1,985 1,725 90 65
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
28 Commitments for expenditure/lease commitments receivable (continued)
(d) Lease commitments receivable
ehicle fleet operating leases (exclusive of GST) 97,316 88,789 -
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
160.
Notes to and forming part of the financial statements
29 Contingencies (continued)
The contingent liabilities relate to a number of litigation cases filed in various Queensland jurisdictionsnaming 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 unsuccessful. The amounts 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 toCourt action. These cases may or may not result in subsequent litigation.
30 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 QBuildQFleetGoprintSDSCITECStatements of financial performance, Statements of financial position and Statements of cash flows for each of the commercialised business units have been included following the Statement of financial performance by outputs/major activities controlled.
CashCash includes cash on hand, imprest account totals, balance of bank accounts with CommonwealthBanking 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 2004-2005 the combined bank balances of the Commercialised Business Units and the Parent Entity was $100.523M ($91.632M in 2003-2004). The benchmark interest rate was 4.85% as at 30 June 2005 (4.51% as at 30 June 2004).
Receivables (trade debtors)Trade debtors are carried at nominal amounts less any provision for doubtful debts. A provision for doubtful debts is recognised when collection of the full nominal amount is no longer probable. Trade sales require payment within 30 days from the end of the month in which a sale is invoiced.
Receivables (other than trade debtors)Amounts are carried at nominal values. Other than receivables from Government terms are 30 days net.
Notes to and forming part of the financial statements
29 Contingencies (continued)
30 Controlled entities
31 Financial instruments
(a) Terms conditions and accounting policies
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
161.
Notes to and forming part of the financial statements
31 Financial instruments (continued)
CreditorsRecognition – upon receipt of goods or services irrespective of whether an invoice has been received.The amounts are unsecured and are settled on terms agreed with the vendor.
Finance lease liabilityThe finance lease liabilities are accounted for in accordance with AAS 17 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 arewith 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.
(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.
Notes to and forming part of the financial statements
31 Financial instruments (continued)
(b) Interest rate risk exposure
(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 doubtful debts as indicated in the Statement of financial position.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
162.
Notes to and forming part of the financial statements
31 Financial instruments (continued)
(d) Net fair value
Financial instruments Total carrying amount Net fair value
2005$’000
2004$’000
2005$’000
2004$’000
Notes to and forming part of the financial statements
31 Financial instruments (continued)
(d) Net fair value
Financial instruments Total carrying amount Net fair value
2005$’000
2004$’000
2005$’000
2004$’000
Notes to and forming part of the financial statements
31 Financial instruments (continued)
(d) Net fair value
The net fair value is determined as follows:- The net fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilities approximate their carrying value.- The net fair value of other monetary financial assets and financial liabilities is based on market prices where a market exists, or has been determined by discounting expected future cash flows by the current interest rate for financial assets and liabilities with similar risk profiles.
The carrying amounts and estimated net fair values of financial assets and financial liabilities held at balance date are given below:
Financial instruments Total carrying amount Net fair value
2005$’000
2004$’000
2005$’000
2004$’000
Notes to and forming part of the financial statements
31 Financial instruments (continued)
(d) Net fair value
Financial instruments Total carrying amount Net fair value
2005$’000
2004$’000
2005$’000
2004$’000
Financial assets:
Cash Receivables
Financial liabilities:
Payables QTC borrowings Finance lease liabilities
100,523 148,605
113,091 530,360
401
91,632117,141
113,013 512,732
2,575
100,523 148,605
113,091 537,388
401
91,632117,141
113,013 517,752
3,092
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
163.
Notes to and forming part of the financial statements
32 Taxation equivalents
Information in respect of income tax expense incurred by those activities of the commercialised businessunits subject to the substantive model of the Tax Equivalents Regime (TER):
CommercialisedBusiness Units
2005 2004$'000 $'000
Operating result of commercialised business unitssubject to the national tax equivalents regime: 12,841 17,005Indicative tax expense at 30% 5,281 5,867Tax effect of permanent and other differences: Non-deductible entertainment 11 4 Other non-deductible expenses 139 13 Reverse overprovision from previous years (90) (32) Net FITB and PDIT not brought to account - 587 2004 Research and development concessions (23) - Frank dividend received (100) - Losses not recognised 46 - Future income tax benefit reversed 19 -Total income tax expense 5,283 6,439
Total income tax expense comprises movements in: Provision for tax equivalent expenses 2,751 5,910 Future tax equivalent benefit (403) 33 Provision for deferred tax equivalent 2,786 (91) Net FITB and PDIT not brought to account - 587 Correction to prior year tax return 149 -Total income tax expense 5,283 6,439
Provision for deferred income tax: Attributable to timing differences: Additional tax depreciation 7,169 4,000 Australian source interest income (11) 54 Software expenditure - (39) Increase in prepayment less than 13 months 1,494 1,506 Depreciation recovered on asset sales (5,844) (5,756) Pooled assets (57) 7 Other timing differences - (16) Research and development expenditure 35 -
2,786 (244)Attributable to balance of provisions at 1 July 2004 8,762 8,240Attributable to balance transferred due to restructure - 767
11,548 8,763
Notes to and forming part of the financial statements
32 Taxation equivalents
CommercialisedBusiness Units
2005 2004$'000 $'000
Operating result of commercialised business unitssubject to the national tax equivalents regime: 12,841 17,005
Total income tax expense 5,283 6,439
Total income tax expense 5,283 6,439
Provision for deferred income tax:
2,786 (244)
11,548 8,763
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
164.
Notes to and forming part of the financial statements
CommercialisedBusiness Units
2005 2004$'000 $'000
32 Taxation equivalents (continued)
Future income tax benefit:Attributable to timing differences: Movements in provisions 542 168 Depreciation adjustment (79) (83) Audit fee accrual adjustment (8) 6 Recognition of lease incentive and amortisation (43) (43) Finance lease amortisation - 5 Finance lease payments - (6) Movement in other accrued expenses 10 13 Tax losses carried forward (19) 19 Other timing differences - 16 Reverse overprovision from previous years - 32 Adjustment to prior years income tax return - 28
403 155Attributable to balance at 1 July 3,373 1,909Attributable to balance transferred due to restructure - 1,792Attributable to prior period tax losses of controlled entity - (199)Attributable to current period tax losses - (284)
Total administered revenues 16,286 14,568 16,286 14,568
Administered expenses Supplies and services 2,637 4,051 2,637 4,051 Grants and subsidies 12,149 10,984 12,149 10,984 Loss on disposal of assets 812 25,364 812 25,364Total administered expenses before transfer ofadministered revenue to Government 15,598 40,399 15,598 40,399
Net surplus or deficit after extraordinary items 688 (25,831) 688 (25,831)
Administered current assets Cash 139 (23) 139 (23) Receivables 245 2,881 245 2,881Total Administered current assets 384 2,858 384 2,858
Total administered assets 384 2,858 384 2,858
Department of Public Parent Entity Works Consolidated
Notes to and forming part of the financial statements
CommercialisedBusiness Units
2005 2004$'000 $'000
32 Taxation equivalents (continued)
Future income tax benefit:
403 155
3,776 3,373
2005 2004 2005 2004$'000 $'000 $'000 $'000
33 dministered transactions and balances
dministered revenues
Total administered revenues 16,286 14,568 16,286 14,568
dministered expenses
Total administered expenses before transfer ofadministered revenue to Government 15,598 40,399 15,598 40,399
Net surplus or deficit after extraordinary items 688 (25,831) 688 (25,831)
dministered current assets
Total Administered current assets 384 2,858 384 2,858
Total administered assets 384 2,858 384 2,858
Department of Public Parent Entity Works Consolidated
Notes to and forming part of the financial statements
CommercialisedBusiness Units
2005 2004$'000 $'000
32 Taxation equivalents (continued)
Future income tax benefit:
403 155
3,776 3,373
2005 2004 2005 2004$'000 $'000 $'000 $'000
33 dministered transactions and balances
dministered revenues
Total administered revenues 16,286 14,568 16,286 14,568
dministered expenses
Total administered expenses before transfer ofadministered revenue to Government 15,598 40,399 15,598 40,399
Net surplus or deficit after extraordinary items 688 (25,831) 688 (25,831)
dministered current assets
Total Administered current assets 384 2,858 384 2,858
Total administered assets 384 2,858 384 2,858
Department of Public Parent Entity Works Consolidated
Notes to and forming part of the financial statements
CommercialisedBusiness Units
2005 2004$'000 $'000
32 Taxation equivalents (continued)
Future income tax benefit:
403 155
3,776 3,373
2005 2004 2005 2004$'000 $'000 $'000 $'000
33 dministered transactions and balances
dministered revenues
Total administered revenues 16,286 14,568 16,286 14,568
dministered expenses
Total administered expenses before transfer ofadministered revenue to Government 15,598 40,399 15,598 40,399
Net surplus or deficit after extraordinary items 688 (25,831) 688 (25,831)
dministered current assets
Total Administered current assets 384 2,858 384 2,858
Total administered assets 384 2,858 384 2,858
Department of Public Parent Entity Works Consolidated
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
165.
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
33 Administered transactions and balances (continued)
Administered current liabilities Payables 384 2,791 384 2,791Total administered current liabilities 384 2,791 384 2,791
Total administered liabilities 384 2,791 384 2,791
Administered equity Contributed equity 33,785 22,364 33,785 22,364 Retained surpluses/accumulated deficits (33,097) (33,785) (33,097) (33,785) Asset transferred in from controlled 812 13,588 812 13,588 Asset transferred out to controlled (1,500) (2,100) (1,500) (2,100)Total administered equity - 67 - 67
34 Reconciliation of payments from consolidated fund to administered revenueBudgeted output appropriation 14,349 12,992 14,349 12,992Transfers from/to other departments - - - -Transfers from/to other headings 2,816 - 2,816 -Treasurer's advances - - - -Lapsed administered appropriation - - - -Unforeseen expenditure - (576) - (576)Repayments of incorrectly paid amounts - - - -Total administered receipts 17,165 12,416 17,165 12,416Administered revenue receivable adjustments
Administered revenue recognised in the Note 33 14,786 14,568 14,786 14,568
Reconciliation of payments from consolidated fund and equity adjustment recognised in administered equityBudgeted equity adjustment appropriation - - - -Transfers from/to other departments - - - -Transfers from/to other headings (67) - (67) -Treasurer's advances - - - -Lapsed equity adjustment appropriation - - - -Unforeseen expenditure - - - -Repayments of incorrectly paid amounts - - - -Total equity adjustment receipts (67) - (67) -Less: Opening balance equity adj. receivable - - - -Plus: Closing balance of equity adj. receivable - - - -Equity adjustment recognised in contributed equity (67) - (67) -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
33 dministered transactions and balances (continued)
dministered current liabilities
Total administered current liabilities 384 2,791 384 2,791
Total administered liabilities 384 2,791 384 2,791
dministered equity
Total administered equity - 67 - 67
34 Reconciliation of payments from consolidated fund to administered revenue
Total administered receipts 17,165 12,416 17,165 12,416
dministered revenue recognised in the Note 33 14,786 14,568 14,786 14,568
Reconciliation of payments from consolidated fund and equity adjustment recognised in administered equity
Total equity adjustment receipts (67) - (67) -
Equity adjustment recognised in contributed equity (67) - (67) -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
33 dministered transactions and balances (continued)
dministered current liabilities
Total administered current liabilities 384 2,791 384 2,791
Total administered liabilities 384 2,791 384 2,791
dministered equity
Total administered equity - 67 - 67
34 Reconciliation of payments from consolidated fund to administered revenue
Total administered receipts 17,165 12,416 17,165 12,416
dministered revenue recognised in the Note 33 14,786 14,568 14,786 14,568
Reconciliation of payments from consolidated fund and equity adjustment recognised in administered equity
Total equity adjustment receipts (67) - (67) -
Equity adjustment recognised in contributed equity (67) - (67) -
Notes to and forming part of the financial statements
2005 2004 2005 2004$'000 $'000 $'000 $'000
Parent EntityDepartment of Public Works Consolidated
33 dministered transactions and balances (continued)
dministered current liabilities
Total administered current liabilities 384 2,791 384 2,791
Total administered liabilities 384 2,791 384 2,791
dministered equity
Total administered equity - 67 - 67
34 Reconciliation of payments from consolidated fund to administered revenue
Total administered receipts 17,165 12,416 17,165 12,416
dministered revenue recognised in the Note 33 14,786 14,568 14,786 14,568
Reconciliation of payments from consolidated fund and equity adjustment recognised in administered equity
Total equity adjustment receipts (67) - (67) -
Equity adjustment recognised in contributed equity (67) - (67) -
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
166.
Notes to and forming part of the financial statements
35 Agency transactions and balances
(a) Project Services
The Department, through the Project Services business unit acts in an agency capacity for StateGovernment departments in respect of the delivery of the capital works program. In its capacity as project manager for construction projects Project Services facilitates the payments to external contractors and service providers from client departments.
The following transactions and balances relate to these agency arrangements in 2004-2005.
2005 2004$'000 $'000
Agency expensesSupplies and services 550,361 485,432Total agency expenses 550,361 485,432
Agency revenuesReceipts for goods and services 550,361 485,432Total agency revenues 550,361 485,432
Notes to and forming part of the financial statements
35 gency transactions and balances
(a) Project Services
2005 2004$'000 $'000
gency expenses
Total agency expenses 550,361 485,432
gency revenues
Total agency revenues 550,361 485,432
gency assets
Total agency assets 74,874 56,159
gency liabilities
Total agency liabilities 74,874 56,159
Project Services
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
167.
Notes to and forming part of the financial statements
35 Agency transactions and balances (continued)
(b) CITEC
The Department, through the CITEC Business Unit has commercial arrangements with various government agencies for the provision of disbursement services to third parties. Separate bank accounts are utilised for Brisbane and Canberra clients to facilitate the receiving and disbursement of funds according to client instructions. At any time, funds received from clients may be held within the bank accounts awaiting disbursement. A reconciliation of amounts collected and distributed follows:
2005 2004$'000 $'000
Balance at beginning of period 32,888 23,950Collections during the period * 3,536,669 1,156,424Distributions according to clients' instructions during the period * (3,545,784) (1,147,486)Balance at end of year 23,773 32,888
Fees received for the provision of these services are included in user charges.
* Note: CITEC was transferred from the former Department of Innovation and Information Economy, Sport and Recreation Queensland with effect from 12 February 2004. The prior year comparativeagency transactions relate to the period 13 February 2004 to 30 June 2004.
36 Machinery of government changes (Refer also Note 1(ad))
Assets and liabilities transferred from the Department of Housing on 1 July 2004:
Notes to and forming part of the financial statements
35 gency transactions and balances (continued)
(b) CITEC
2005 2004$'000 $'000
Balance at end of year 23,773 32,888
36 Machinery of government changes (Refer also Note 1(ad))
CITEC
Racing Industry Services
Aboriginal and Torres Strait
Islander Housing Total
$'000 $'000 $'000 Assets
3,830 17 3,847
Liabilities
740 251 991
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
168.
Notes to and forming part of the financial statements
37 Commercialised business unitsAdditional disclosure of significant issues
QFleet
Motor vehicles held for sale
QFleet sells its ex-lease motor vehicles at public auction and by retail sales at fixed prices.
As at 30 June 2005, QFleet had 2,353 vehicles awaiting sale (written-down value of $50.1M), compared with 1,440 vehicles as at 30 June 2004 (written-down value of $28.5M). The increase is mainly due tothe reduced number of vehicles sold at auction and the higher number that became available for sale during the 2004/05 Financial Year. In addition, market conditions for six cylinder used vehicles have significantly deteriorated in recent years.
QFleet has developed a range of actions to minimise the risk of vehicles awaiting sale beingrecorded in QFleet accounts above net realisable values. These actions include alternative short-term sales strategies and long-term solutions dealing with fleet mix and further market development.
Based on these actions, it is QFleet’s opinion that the recorded written down values of vehiclesawaiting sale as at 30 June 2005 will be recovered at a portfolio level.
Goprint
From 1 July 2005, the Publications and Retail division of Goprint transferred to SDS. This division is primarily responsible for publishing, storing and distributing hardcopy versions of Queensland Government Legislation and Gazettes, and other Government information. Consequently, it was considered that greater synergies could be realised between the Publications and Retail division and SDS, given SDS’s specialist warehousing and logistics operations and its existing infrastructure for end-to-end inventory management. Details of the assets and liabilities transferred and the operating results of this function will be reported in the 2005/06 financial statements.
SDS
From 1 July 2005 the Brendale warehousing and distribution services function of the Department of Main Roads was transferred to SDS. This transfer will enable SDS to implement a shared services arrangement for the provision of warehousing and distribution services to the Department of Main Roads, Queensland Transport, Department of Housing, and the Electoral Commission of Queensland.Details of the assets and liabilities transferred and the operating results of this function will be reported in the 2005/06 financial statements.
Notes to and forming part of the financial statements
37 Commercialised business unitsdditional disclosure of significant issues
QFleet
Motor vehicles held for sale
Goprint
SDS
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
169.
Notes to and forming part of the financial statements
37 Commercialised business unitsAdditional disclosure of significant issues (continued)
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.
QBuild
QBuild has provided for amounts due to field staff as a result of the implementation of a new classification structure. Under the new structure, employees are formally recognised for building and construction industry skills, engineering and metal skills. A provision of approximately $8m has beenmade in accordance with QBuild Field Staff Certified Agreement 5 (2002) and relates to the period of 1 September 2002 until 30 June 2005. It is anticipated that payments will be made to employees before 30 June 2006.
Notes to and forming part of the financial statements
37 Commercialised business unitsdditional disclosure of significant issues (continued)
QBuild and Project Services - GST
QBuild
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Section 7 Financials
170.
Certificate of the Department of Public Works
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 requirements. In
accordance with Section 40(3) of the Act we certify that in our opinion:
(a) the prescribed requirements for establishing 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 accordance with
prescribed accounting standards, of the transactions of the Department of Public Works for the
financial year ended 30 June 2005, and of the financial position of the Department at the end of
that year.
A J WOODWARD BBus(Accty), MFinPlan, FCPA M J GRIERSON B.Econ, M.PubAdminDirector, Finance Director-GeneralDepartment of Public Works Department of Public Works
16 September 2005 16 September 2005
Department of Public Works Annual Report 2004 - 05
171.
INDEPENDENT AUDIT REPORT
To the Accountable Officer of the Department of Public Works
Scope
The financial report
The financial report consists of the consolidated financial statements of the economic entity comprising the Department of PublicWorks (parent entity) and its commercialised business units - QBuild, Project Services, QFleet, Goprint, SDS and CITEC.
The financial statements include a statement of financial performance, statement of financial position, statement of cash flows,statement of financial performance by outputs/major activities – controlled, notes to and forming part of the financial report andcertificate given by the Accountable Officer and officer responsible for the financial administration of the Department of Public Works, for the year ended 30 June 2005. The financial report also includes a separate statement of financial performance, statement offinancial position and statement of cash flows for each of the commercialised business units identified above.
Accountable Officer’s responsibility
The Accountable Officer is responsible for the preparation and true and fair presentation of the financial report, the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error and for the accountingpolicies and accounting estimates inherent in the financial report.
Audit approach
As required by law, an independent audit was conducted in accordance with QAO Auditing Standards to enable me to provide an independent opinion whether in all material respects the financial report is presented fairly, in accordance with the prescribedrequirements, including any mandatory financial reporting requirements as approved by the Treasurer for application in Queensland.
Audit procedures included –
examining information on a test/sample basis to provide evidence supporting the amounts and disclosures in the financial report;
assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant accounting estimates made by the Accountable Officer;
obtaining written confirmation regarding the material representations made in conjunction with the audit; and
reviewing the overall presentation of information in the financial report.
Independence
The Financial Administration and Audit Act 1977 promotes the independence of the Auditor-General and QAO authorised auditors.
The Auditor-General is the auditor of all public sector entities and can only be removed by Parliament.
The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about theway in which audit powers are to be exercised.
The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliamentmatters which in the Auditor-General’s opinion are significant.
Audit opinion
In accordance with s.40 of the Financial Administration and Audit Act 1977 –
(a) I have received all the information and explanations which I have required; and
(b) in my opinion –
(i) the prescribed requirements in respect of the establishment and keeping of accounts have been complied with in all material respects; and
(ii) the financial report has been drawn up so as to present a true and fair view, in accordance with the prescribed accountingstandards of the transactions of the Department of Public Works (consolidated) and the parent entity for the financial year 1 July2004 to 30 June 2005 and of the financial position as at the end of that year.
INDEPENDENT AUDIT REPORT
To the Accountable Officer of the Department of Public Works
Scope
Independence
Audit opinion
E A MUIR, FCPA Queensland Audit OfficeAs Delegate of the Auditor-General of Queensland Brisbane
172.
Public artwork at Brisbane Magistrates Court
CITEC Financial Statementssection 8
Department of Public Works Annual Report 2004 - 05
173.
174.
Section 8 CITEC Financial Statements
Contents Page
Statement of Financial Performance 40
Statement of Financial Position 41
Statement of Cash Flows 42
Notes to the Financial Statements
1. Objectives of CITEC 432. Summary of Significant Accounting Policies 433. User charges 474. Grants and other contributions 475. Other revenues 476. Employee expenses 477. Supplies and services 478. Depreciation and amortisation 489. Other expenses 4810. Borrowing costs 4811. Cash assets 4812. Receivables 4913. Inventories 4914. Other financial assets 4915. Tax assets 4916. Other assets 4917. Intangibles 5018. Property, plant and equipment 5019. Payables 5220. Interest-bearing liabilities 5221. Provisions 5422. Tax liabilities 5423. Other liabilities 5524. Changes in equity 5525. Reconciliation of net surplus/(deficit) to net cash provided by/(used in) operating activities 5626. Commitments for expenditure 5727. Contingencies 5828. Controlled entities 5829. Financial instruments 5830. Taxation 6131. Agency transactions 6232. Board and committee remuneration 62Certificate of CITEC 63
Independent Audit Report 64
This report covers CITEC as the parent entity as well as the economic entity which includes the consolidated financialstatements 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 Significant Business Activity(SBA) under the Queensland Competition Authority Act 1997. CITEC provides information technology services to other publicsector agencies and private sector businesses on a fully commercial basis.
Its principal place of business is:
CITEC317 Edward StreetBrisbane QLD 4000
General purpose fi nancial statementsfor the year ended 30 June 2005
Department of Public Works Annual Report 2004 - 05
175.
ECONOMIC ENTITY PARENT ENTITY
2005 2004 2005 2004 Notes $ $ $ $
Revenues from ordinary activities
User charges 3 132,363,878 124,544,616 125,994,721 119,039,001 Grants and other contributions 4 - 13 - 13 Other 5 1,860,499 2,339,881 1,892,176 2,453,199
Total revenues from ordinary activities 134,224,377 126,884,510 127,886,897 121,492,213
Expenses from ordinary activities
Employee expenses 6 44,551,841 41,135,398 40,922,660 38,383,653 Supplies and services 7 70,697,317 66,610,244 69,187,086 65,371,404 Depreciation and amortisation 8 6,176,002 5,532,573 5,974,879 5,292,825 Other 9 10,929,112 10,679,885 10,672,269 10,395,588
Total expenses from ordinaryactivities excluding borrowing costs 132,354,272 123,958,100 126,756,894 119,443,470
Operating result from ordinaryactivities before income tax expense 1,610,440 2,746,895 874,512 1,870,660
Income tax expense relating to ordinary activities 30 568,837 787,067 266,984 584,879
Operating result from ordinary activitiesafter income tax expense 1,041,603 1,959,828 607,528 1,285,781
Net surplus (deficit) attributable to outsideequity interests (357,858) (534,040) - -
Net operating result 24 683,745 1,425,788 607,528 1,285,781
Net amount of each revenue, expense, valuation or other adjustment not disclosed above recognised as a direct adjustment to equity 24 - (142,115) - -Total revenues, expenses and valuationadjustments recognised directly in equity - (142,115) - -
Total changes in equity other than thoseresulting from transactions with owners as owners 683,745 1,283,673 607,528 1,285,781
This Statement of Financial Performance should be read in conjunction with the accompanying notes.
Statement of Financial Performancefor the year ended 30 June 2005
Net cash provided by (used in) financing activities 2,609,123 (441,323) 2,929,545 (305,271)
Net increase (decrease) in cash held (1,628,405) 1,735,308 (1,498,040) 1,279,985
Cash at beginning of the financial year 10,739,894 9,004,586 7,096,094 5,816,109
Cash at end of the financial year 25 9,111,489 10,739,894 5,598,054 7,096,094
This Statement of Cash Flows should be read in conjunction with the accompanying notes.
178.
Section 8 CITEC Financial Statements
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Objectives of CITEC
CITEC is a fully commercialised business unit ofthe Queensland Government, operating under theGovernment’s Commercialisation Policy, 1994.The key objectives of CITEC are to:Ensure the retention of key infrastructure, knowledgeand capabilities for the future delivery of IT servicesto Queensland;Provide the capacity to deliver continuity of serviceat a whole-of-government level for functions thatare strategically important or critical to the operationof Government or where there are over-ridingconsiderations concerning security and/or integrityof information;Contribute to employment opportunities and thedevelopment of IT skills in Queensland;Act as a catalyst for the local Communication andInformation industry through business arrangementsinvolving the local operations of Communication andInformation businesses; andProvide acceptable commercial returns to the Crown asowner of CITEC.
Statement of significant accounting policies
a) Basis of accounting This financial report is a General Purpose Financial
Report that has been prepared in accordancewith Accounting Standards, Urgent Issues GroupConsensus Views, the Corporations Act 2001,Financial Administration and Audit Act 1977, theFinancial Management Standard 1997, theTreasurer’sMinimum Reporting Requirements and otherauthoritative pronouncements.
The directors of the controlled entity AurionCorporation Pty Ltd have prepared the financialreport of that controlled entity in accordance withAccounting Standards and other professionalreporting requirements with the followingexceptions.
AASB 1005 Segment Reporting AASB 1017 Related Party Disclosures AASB 1018 Statement of Financial Performance In respect of the controlled entity, during the year
under review revenue to the value of $955,553was not included in the Statement of FinancialPerformance.These transactions relate to a thirdparty providing services to an Aurion customer aspart of a project where Aurion Corporation is theprime contractor. It is not envisaged that this activitywill be repeated to the same extent in future periods.Similarly, the corresponding cost of $955,553 hasnot been included in expenditure.The net effect onthe results for the year is nil.The cashflow from thistransaction is included in the Statement of Cashflowsin the User Charges and Supplies and Services.
This financial report has been prepared on anaccruals basis and is based on historical costs anddoes not take into account changing money valuesor, except where stated, current valuations of non-current assets.
The accounting policies have been consistentlyapplied, unless otherwise stated.
b) The reporting entity The financial statements include all assets, liabilities,
equities, revenues and expenses of CITEC and theentities it controls.
Details of controlled entities have been disclosed inNote 28.
(c) Principles of consolidation A controlled entity is any entity controlled by CITEC.
Control exists where CITEC has the capacity todominate the decision-making in relation to thefinancial and operating policies of another entity sothat the other entity operates with CITEC to achievethe objectives of CITEC.
All inter-company balances and transactions betweenentities in the economic entity, including anyunrealised profits or losses, have been eliminatedon consolidation. Outside interests in the equity andresults of the entities that are controlled are shown asa separate item in the consolidated financial report.
d) Agency transactions and balances CITEC has commercial arrangements with various
state and federal government agencies to performcertain agency transactions on their behalf. As CITECacts only in a custodial role in respect of thesetransactions and balances, they are not recognised inthe financial statements, but are disclosed in Note 31.
e) Grants and other contributions Grants, donations and gifts, which are non-reciprocal
in nature, are recognised as revenue in the year inwhich CITEC obtains control over them. Contributionsof assets are recognised at their fair value.
f) Outputs/major activities of CITEC The identity and purpose of each service undertaken
by the parent entity during the year issummarised below:
Electronic service delivery for government and itscommercial e-commerce counterpart;
Electronic information brokerage andservice provision;
Information technology outsourcing services; Network management services; and Application service provision. g) Insurance CITEC’s non-current physical assets and other risks
are insured. In addition, CITEC pays premiums tocover its workers’ compensation obligations foremployee compensation.
h) Cash For the purpose of the Statement of Cash Flows, cash
includes cash on hand and on deposit at call withbanks or financial institutions, net of bank overdrafts.
Department of Public Works Annual Report 2004 - 05
179.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
Statement of significant accounting policies(continued)
i) Receivables Trade receivables are carried at nominal amounts due
at the time of sale or service delivery. Settlement ontrade receivables is generally required within 30 daysfrom invoice date. A provision for doubtful debts isrecognised when collection of the full amount is nolonger probable. All known bad debts were written-off as at balance date.
Other receivables generally arise from transactionsoutside the usual operating activities and arerecognised at their assessed values.Terms are amaximum of three months, no interest is chargedand no security is obtained.
j) Inventories Inventories including third party re-sales are valued
at the lower of cost and net realisable value andrepresents purchases made on behalf of clients forwhich the full cost is recoverable from clients.
k) Acquisitions of assets Actual cost is used for the initial recording of all asset
acquisitions. Cost is determined as the value of theassets given as consideration plus costs incidental tothe acquisition, including all other costs incurred ingetting the assets ready for use.
Where assets are received free of charge fromanother Queensland Government department(whether as a result of a machinery-of-governmentor other involuntary transfer), the acquisition cost isrecognised as the gross carrying amount in the booksof the transferor immediately prior to the transfertogether with any accumulated depreciation.
Assets acquired at no cost, or for nominalconsideration, other than from an involuntarytransfer from another Queensland Governmentdepartment, are recognised at their fair value at dateof acquisition.
Costs incurred on assets subsequent to acquisitionare capitalised when it is probable that the costsincurred will extend the originally assessed usefullife of the asset, otherwise, expensed as incurred.Research and development expenditure is expensedas incurred except to the extent that its recoverabilityis assured beyond any reasonable doubt, in whichcase it is deferred.
l) Property, plant and equipment Property, plant and equipment assets are measured
on the cost basis. All items of property, plant andequipment, except intangibles, with a cost or othervalue in excess of $1,000 are recognised for financialreporting purposes in the year of acquisition. Allother such items with a cost, or other value, less than$1,000 are expensed in the year of acquisition.
The carrying amounts are reviewed annually toensure they are not in excess of the recoverableamount from those assets.The recoverable amountis assessed on the basis of expected net cash flowswhich will be received from the asset’s employmentand subsequent disposal.The expected net cashflows have not been discounted to present values indetermining the recoverable amount.
Work in progress is carried at cost to date based onthe value of work completed less progress billings.
m) Amortisation and depreciation of intangibles,property, plant and equipment
All items of property, plant and equipment aredepreciated on a straight-line basis so as to allocatethe net cost of each asset, less its estimated residualvalue, progressively over its estimated useful life.Thereducing balance method is applied to assets in thecontrolled entity.
Internally developed systems (capital work-in-progress) are not amortised until they have reachedtheir service delivery capacity.
Any expenditure subsequent to acquisition thatincreases the originally assessed capacity or servicepotential of an asset is capitalised and the newdepreciable amount, consisting of the original assetbase plus the additional expenditure, is depreciatedover the revised remaining useful life of the asset.
The depreciable amount of improvements to or ona leasehold property is progressively allocated overthe estimated useful life of the improvements or theunexpired period of the lease, whichever is shorter.
The depreciable amounts of these assets aredepreciated over their effective lives as follows:
Class of fixed asset Depreciation rate
Leasehold improvements the lease term Computer equipment 2 to 10 years Plant and equipment 4 to 6 years
The profit or loss on disposal of all non-currentassets is determined as the difference between thecurrent book value at the time of sale and proceedsof disposal.The profit or loss has been brought toaccount in the period in which the disposal of theasset occurred.
n) Finance leases Leases of fixed assets, where substantially all the
risks and benefits incidental to the ownership of theasset but not the legal ownership are transferredto entities in the economic entity, are classified asfinance leases.
Finance leases are capitalised, recording an asset anda liability equal to the present value of the minimumlease payments, including any guaranteed residualvalues. Leased assets are depreciated on a straight-line basis over their estimated useful lives where it islikely that the economic entity will obtain ownershipof the asset or over the term of the lease. Leasepayments are allocated between interest expenseand reduction of the lease liability.
180.
Section 8 CITEC Financial Statements
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
2. Statement of significant accounting policies (continued)
o) Operating leases Lease payments for operating leases, where
substantially all the risks and benefits remain withthe lessor, are charged as expenses in the periodsin which they are incurred. Lease incentives underoperating leases are recognised as a liability. Leasepayments are allocated between rental expense andreduction of the liability.
Operating lease payments are representative of thepattern of benefit derived from the leased assets.
p) Other financial assets Other financial assets are brought to account at
the lower of cost or recoverable amount and aredisclosed at the fair values indicated in Note 29.
q) Intangibles Internal use software
All items of internal use software, with a cost or othervalue in excess of $1 are recognised for financialreporting purposes in the year of acquisition. Assetswith a value less than $10,000 are fully amortised atthe time of acquisition.
Asset greater than $10,000 are amortised on astraight-line basis over the period of expected benefitto CITEC.The period of amortisation is determined onan individual case basis between 2.5 and 7 years.
Goodwill
Both purchased goodwill and goodwill onconsolidation are initially recorded at the amountby which the purchase price for a business or for anownership interest in a controlled entity exceeds thefair value attributed to its net assets at dateof acquisition.
Goodwill is amortised on a straight-line basis over20 years.The balances are reviewed annually and anybalance representing future benefits for which therealisation is considered to be no longer probableis written off.
r) Trademarks Trademarks are valued in the accounts at cost
of acquisition. s) Payables Trade payables are recognised upon receipt of the
goods or services and are carried at the agreed price,gross of applicable discounts. Amounts owing areunsecured and are generally settled on 30 day terms.
t) Interest-bearing liabilities Borrowings represent a long term funding facility
with QueenslandTreasury Corporation valued at theamount outstanding and are disclosed at Note 20.Interest is expensed or otherwise recognised as itaccrues.The fair value of these loans is disclosedat Note 29.
u) Employee benefits Wages, salaries, annual leave and sick leave
Wages, salaries, annual leave and sick leave duebut unpaid at reporting date are recognised in theStatement of Financial Position at the remunerationrates expected to apply at the time of settlementand include related on-costs such as payroll tax,WorkCover premiums, long service leave levies andemployer superannuation contributions.
Prior history indicates that on average, sick leavetaken each reporting period is less than theentitlement accrued.This is expected to recur infuture periods.
Accordingly, it is unlikely that existing accumulatedentitlements will be used by employees and noliability for unused sick leave entitlements isrecognised.
As sick leave is non-vesting, an expense isrecognised for this leave as it is taken.
Long service leave
Under the Queensland Government’s long serviceleave scheme, a levy is made on CITEC parent entityto cover this expense. Amounts paid to employeesfor long service leave are claimed from the schemeas and when leave is taken.
No provision for long service leave is recognised inthe parent entity financial statements, the liabilitybeing held on a whole-of-Government basis andreported in the financial report prepared pursuantto AAS 31 – Financial Reporting by Governments.
Superannuation
Employer superannuation contributions for theparent entity are paid to QSuper, the superannuationplan for Queensland Government employees, at ratesdetermined by the State Actuary.
No liability is recognised for accruing superannuationbenefits in these financial statements as this liabilityis held on a whole-of-Government basis and reportedin the financial report prepared pursuant toAAS 31 - Financial Reporting by Governments.
v) Contributed equity Non-reciprocal transfers of assets and liabilities
between wholly-owned Queensland State PublicSector entities as a result of machinery-of-government changes are adjusted to ‘ContributedEquity’ in accordance with UIG Abstract 38Contributions by Owners Made to Wholly Owned Public Sector Entities.
w) Revenue Revenue from the sale of goods is recognised
upon the delivery of goods to customers. Interestrevenue is recognised on a proportional basis takinginto account the interest rates applicable to thefinancial assets. Dividend revenue is recognisedwhen the right to receive a dividend has beenestablished. Revenue from the rendering of a serviceis recognised upon the delivery of the service to thecustomers. User charges and fees are recognised asrevenues when invoices for the related services areissued. User charges and fees are deployed to coverthe costs of operating the business and provide acommercial return to the Queensland Government.
Department of Public Works Annual Report 2004 - 05
181.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
2. Statement of significant accounting policies (continued)
x) Borrowing costs Borrowing costs are recognised as an expense in the
period in which they are incurred. Borrowing costsinclude:
Interest on bank overdrafts and short-term and long-term borrowings;
Ancillary administration charges; Finance lease charges; and Performance dividend on QueenslandTreasury
Corporation borrowings. y) Income tax CITEC pays an income tax equivalent in accordance
with the requirements of the NationalTax EquivalentsRegime. CITEC adopts the liability method of tax-effect accounting whereby the income tax expense isbased on the profit from ordinary activities adjustedfor any permanent differences.
Timing differences which arise due to the differentaccounting periods in which items of revenueand expense are included in the determination ofaccounting profit and taxable income are brought toaccount as either a provision for deferred income taxor as a future income tax benefit at the rate of incometax applicable to the period in which the benefit willbe received or the liability will become payable.
Future income tax benefits are not brought toaccount unless realisation of the asset is assuredbeyond any reasonable doubt. Future income taxbenefits in relation to tax losses are not brought toaccount unless there is virtual certainty of realisationof the benefit.
The amount of benefits brought to account orwhich may be realised in the future is based onthe assumption that no adverse change will occurin income taxation legislation and the anticipationthat the economic entity will derive sufficientfuture assessable income to enable the benefitto be realised and comply with the conditions ofdeductibility imposed by the law.
CITEC and its economic entities have not beenconsolidated for tax purposes under theTaxConsolidation System.
z) Foreign currency transactions and balances Foreign currency transactions during the year are
converted to Australian currency at the rates ofexchange applicable at the dates of the transactions.Amounts receivable and payable in foreigncurrencies at balance date are converted at the ratesof exchange ruling at that date.
aa) Goods and services tax (GST) Revenues, expenses and assets are recognised net of
the amount of GST except where the amount of GSTincurred is not recoverable from the AustralianTaxOffice. In these circumstances the GST is recognisedas part of the cost of acquisition of the asset or aspart of an item of the expense. Receivables andpayables in the Statement of Financial Position areshown inclusive of GST.
The net amount of GST recoverable from, or payableto, the AustralianTaxation Office is included as acurrent asset or liability in the Statement of FinancialPosition. Refer also Note 19.
Cash flows are included in the Statement of CashFlows on a segregated basis adopting a four-lineapproach to disclosure.The GST components of cashflows arising from investing and financing activitieswhich are recoverable from, or payable to, theAustralianTaxation Office are classified as operatingcash flows. Refer also Note 25.
bb) Rounding and comparatives Amounts included in the financial statements
have been rounded to the nearest $1. Comparativeinformation has been restated where necessary to beconsistent with disclosures for the current reportingperiod.
cc) Impact of adoption of Australian Equivalents toInternational Financial Reporting Standards
The Australian Equivalents to International FinancialReporting Standards (AEIFRS) are effective forfinancial years commencing on or after 1 January2005. CITEC and its controlled entities havebeen identified as ‘for profit’ for the purposes ofimplementing AEIFRS.The management of CITEChave assessed the significance of these changes andhave prepared for their implementation.The directorsare of the opinion that the introduction of AEIFRS willhave no material effect on the financial reporting,except for goodwill on consolidation.
Goodwill on consolidation
Under AASB 3 Business Combinations, goodwill iscapitalised to the Statement of Financial Position andsubjected to an annual impairment test. Amortisationof goodwill is prohibited. Current accounting policyof the entity is to amortise goodwill on a straight-linebasis over a period of 20 years.
Impairment testing as at 1 July 2004 confirmedno impairment of the $2,434,209 goodwill lessaccumulated amortisation of $385,416 as disclosedin the economic entity’s financial statements as at30 June 2005.The goodwill of $385,416 previouslyamortised will, therefore, be reversed, resulting ina corresponding increase of $263,706 in retainedearnings at 1 July 2004 and an increase in profitamounting to $121,710 for the year ended30 June 2005.
Income tax
Currently, the economic entity adopts the liabilitymethod of tax-effect accounting whereby the incometax expense is based on the accounting profitadjusted for any permanent differences.Timingdifferences are currently brought to account as eithera provision for deferred income tax or future incometax benefit. Under AASB 112 Income Taxes, theeconomic entity will be required to adopt a balancesheet approach under which temporary differencesare identified for each asset and liability rather thanthe effects of the timing and permanent differencesbetween taxable income and accounting profit.
Impact of AEIFRS summary
On transition to AEIFRS the estimated cumulativefinancial effect of the reliably known differences ashighlighted will be to reduce the economic entity’sreported equity by $385,416 (Parent: nil) at30 June 2005.
182.
Section 8 CITEC Financial Statements
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
ECONOMIC ENTITY PARENT ENTITY
2005 2004 2005 2004 $ $ $ $
3 User charges
Sales of goods and services 132,363,878 124,544,616 125,994,721 119,039,001
Total 132,363,878 124,544,616 125,994,721 119,039,001
4 Grants and other contributions
Other - 13 - 13
Total - 13 - 13
5 Other revenues
Interest 1,640,841 1,375,908 1,627,518 1,560,651 Gain on sale of property, plant and equipment 2,070 10,739 2,070 10,739 Other 217,588 953,234 262,588 881,809
Total 1,860,499 2,339,881 1,892,176 2,453,199
Gain on sale of property, plant and equipment Proceeds from sale 2,070 10,739 2,070 10,739 Less: Written down value of assets disposed of - - - -
Total 2,070 10,739 2,070 10,739
6 Employee expenses
Wages and salaries 37,234,087 36,098,729 34,401,486 33,707,874 Employer superannuation contributions 4,148,557 4,083,358 3,872,562 3,883,555 Long service leave levy 470,103 473,276 470,103 473,276 Long service leave 22,966 8,713 - - Workers’ compensation 92,023 154,417 80,922 147,080 Voluntary early retirement payments 1,094,446 - 1,094,446 - Other 1,489,659 316,905 1,003,141 171,868
Total 44,551,841 41,135,398 40,922,660 38,383,653
Number Number Number Number
The number of employees as at reporting dateincluding both full-time employees and part-timeemployees measured on a full-time equivalent basis is:
The approximate (increase)/decrease in depreciationand amortisation expense, as a result of there-assessment of estimated useful lives of depreciableassets during the reporting period, was:
Insurance premiums - other 312,745 291,847 250,314 229,057 External audit fees 87,410 150,082 67,760 126,327 Bank charges/merchant fees 341,363 499,309 336,165 491,001 Losses from disposal of property, plant and equipment 165,442 190,032 154,915 184,379 Operating lease rentals 9,078,252 9,231,619 8,941,591 9,103,556 Bad and doubtful debts 1,486 58,303 1,486 8,303 Special payments: Performance penalties 87,550 178,625 87,550 178,625 Fees and other penalties 1,265 292 - - Other 853,599 79,776 832,488 74,340
Total 10,929,112 10,679,885 10,672,269 10,395,588
Loss on disposal of property, plant and equipment Proceeds from sale 1,868 678,525 750 678,525 Less: Written down value of assets disposed of 167,310 868,557 155,665 862,904
Total 165,442 190,032 154,915 184,379
Total external audit fees are estimated to be: 116,300 101,300 96,650 83,870
No borrowing costs were recognised during the period as part of the carrying amount of any qualifying assets.
11 Cash assets
Current Imprest account 1,774 2,250 1,174 1,650 Cash at bank and on hand 9,233,691 10,923,064 5,596,880 7,094,444
Total 9,235,465 10,925,314 5,598,054 7,096,094
Cash deposited with the QueenslandTreasury Corporation, Commonwealth Bank of Australia and the NationalAustralia Bank earned interest at rates of 5.76%, 4.85% and 4.96% (2004: 5.70%, 4.25%, 4.80%) respectively.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
184.
Section 8 CITEC Financial Statements
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
ECONOMIC ENTITY PARENT ENTITY
2005 2004 2005 2004 $ $ $ $
12 Receivables
Current Trade debtors 16,628,824 15,099,074 13,848,599 12,940,229 Less: Provision for doubtful debts (55,956) (56,020) (5,956) (6,020)
16,572,868 15,043,054 13,842,643 12,934,209 Long service leave reimbursements 55,728 45,928 55,728 45,928 Interest receivable 356,501 332,228 356,283 331,671 Other 204,467 245,393 168,358 223,045
Total 17,189,564 15,666,603 14,423,012 13,534,853
13 Inventories
Current Supplies and consumables - at cost 74,434 95,567 74,434 95,567
Total 74,434 95,567 74,434 95,567
14 Other financial assets
Non-current Shares in subsidiary - at cost (see note 28) - - 500,002 500,002 Loans to subsidiary - at cost (see note 28) - - 2,220,000 2,320,000
Total - - 2,720,002 2,820,002
15 Tax assets
Non-current Future income tax benefit 1,308,742 1,434,024 1,127,487 1,250,996
Total 1,308,742 1,434,024 1,127,487 1,250,996
The future income tax benefit is made up of the following estimated tax benefits: Timing differences 1,308,742 1,434,024 1,127,487 1,250,996
Total 1,308,742 1,434,024 1,127,487 1,250,996
16 Other assets
Current Prepayments 3,278,559 2,450,256 2,910,651 2,370,427 Other 120 570 120 570
Total 3,278,679 2,450,826 2,910,771 2,370,997
Non-current Other 6,800 9,491 - -
Total 6,800 9,491 - -
Department of Public Works Annual Report 2004 - 05
185.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
829,514 980,335 829,514 980,335Intangibles in course of construction
At cost 120,044 1,759,773 120,044 1,759,773
Total 10,111,801 9,677,135 8,054,769 7,493,277
CITEC has internal use software with an original cost of $2,427,368 and a written down value of nil which are still being used in the provision of services.
The above assets were fully amortised prior toapplication by CITEC of high value and medium valueestimated useful life review processes.
7,969,639 5,928,555 7,879,606 5,819,934Property, plant and equipment in course of construction
At cost 1,209 1,286,703 1,209 1,286,703
Total 10,783,932 8,991,330 10,666,307 8,845,089
186.
Section 8 CITEC Financial Statements
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
ECONOMIC ENTITY PARENT ENTITY
2005 2004 2005 2004 $ $ $ $
18 Property, plant and equipment (continued)
Property, plant and equipment reconciliation
Reconciliations of the carrying amount for each class of property, plant and equipment are set out below:
Leasehold improvements Carrying amount at the beginning of the year 1,363,264 1,691,663 1,359,283 1,687,568 Acquisitions 104,882 - 104,882 - Disposals (7,217) (128,320) (7,218) (128,320) Transfers between classes 1,295,483 99,489 1,295,483 99,489 Depreciation/amortisation (414,917) (299,568) (414,803) (299,454)
Carrying amount at the end of the year 2,341,495 1,363,264 2,337,627 1,359,283
Plant and equipment Carrying amount at the beginning of the year 412,808 470,195 379,169 435,206 Acquisitions 202,828 128,087 201,645 120,927 Disposals (14,477) (41,489) (10,273) (40,150) Depreciation/amortisation (129,570) (143,985) (122,676) (136,814)
Carrying amount at the end of the year 471,589 412,808 447,865 379,169
Plant and equipment under finance lease Carrying amount at the beginning of the year - 15,217 - - Transfers between classes - - - - Depreciation/amortisation - (15,217) - -
Carrying amount at the end of the year - - - -
Computer equipment Carrying amount at the beginning of the year 5,928,555 7,033,565 5,819,934 6,913,558 Acquisitions 5,354,923 2,689,997 5,303,622 2,594,770 Disposals (134,651) (696,614) (137,167) (692,300) Transfers between classes (222) (13,355) (222) - Depreciation/amortisation (3,178,966) (3,085,038) (3,106,561) (2,996,094)
Carrying amount at the end of the year 7,969,639 5,928,555 7,879,606 5,819,934
Property, plant and equipment in the course of construction Carrying amount at the beginning of the year 1,286,703 895,308 1,286,703 895,308 Acquisitions 9,989 490,884 9,989 490,884 Transfers between classes (1,295,483) (99,489) (1,295,483) (99,489)
Carrying amount at the end of the year 1,209 1,286,703 1,209 1,286,703
Total 10,783,932 8,991,330 10,666,307 8,845,089
CITEC has plant and equipment and computer equipment with an original cost of $425,609 and $7,585,144 respectively anda written down value of nil which are still being used in the provision of services.The above assets were fully depreciated prior to application by CITEC of high value and medium value estimated usefullife review processes.Leasehold improvements, plant and equipment, computer equipment and property, plant and equipment in course ofconstruction are valued at cost in accordance with QueenslandTreasury Non-Current Asset Accounting Guidelines for theQueensland Public Sector (May 2001).
Department of Public Works Annual Report 2004 - 05
187.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
ECONOMIC ENTITY PARENT ENTITY
2005 2004 2005 2004 $ $ $ $
19 Payables
Current Long service leave levy payable 125,821 125,903 125,821 125,903 Trade creditors 2,690,831 2,965,449 1,982,347 2,565,668 Other accrued expenses 6,338,221 5,980,835 6,007,303 5,702,830
Lease liabilities are effectively secured as the rights to the leased assets revert to the lessor in the event of default. Noassets have been pledged as security for any liabilities. Interest is recognised as an expense as it accrues. No interest hasbeen capitalised during the current or comparative reporting period.The lease term is 3 years and the implicit interest rate is 5.2% (2004: 5.2% to 7.9%).
188.
Section 8 CITEC Financial Statements
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
20 Interest-bearing liabilities (continued)
a) QueenslandTreasury Corporation borrowingsCITEC has a working capital facility with the QueenslandTreasury Corporation to the limit of $3,000,000.This facilityis drawn upon and repaid according to the daily cash requirements of CITEC. At 30 June 2005 this facility has abalance of nil (2004: nil). During the reporting period this facility has been drawn upon and repaid in full. An amountof $13,690 (2004: $15) being interest on funds utilised under this facility has been recognised as interest expense in thereporting period.The current overdraft interest rate is 5.55% (2004: 8.52%).
On 15 September 2002, a Loan Agreement was entered into with the State of Queensland for the sum of $2,220,000,in order to fund the acquisition of 76.58% of Aurion Corporation Pty Ltd.This loan has a 3 year term with the principalrepayable on 15 September 2005. It is the intention of CITEC to hold the borrowing for its full term. For the duration ofits term, this is an interest only loan with interest payable quarterly in arrears at a rate of 5.83% (2004: 5.83%). Intereston this facility is recognised as an expense as it accrues.The market value of the borrowings in respect of this facilityas at 30 June 2005, as notified by the QueenslandTreasury Corporation, was $2,225,912 (2004: $2,233,918). An amountof $129,386 (2004: $129,511) being interest on funds utilised under this facility has been recognised as interest expensein the reporting period.
On 31 January 2005, an amount of $2,134,000 was drawn down from CITEC’s 3Year Debt Pool Account held withQueenslandTreasury Corporation to purchase computer equipment. On 30 March 2005, a further amount of $1,856,873was drawn down from this facility to acquire additional computer equipment.This loan has a three year term withprincipal and interest components being payable quarterly in arrears at a rate of 5.66%. Interest on this facility isrecognised as an expense as it accrues.The market value of the economic entity’s borrowings in respect of this facilityas at 30 June 2005, as notified by the QueenslandTreasury Corporation, was $3,697,802. An amount of $73,958 beinginterest on funds utilised under this facility has been recognised as interest expense in the reporting period.
There is no requirement to make any provision for the variation between market value and book value of QueenslandTreasury Corporation loan facilities.
b) Bank overdraft CSI Holdings Pty Ltd has an approved at call bank overdraft facility with the Commonwealth Bank of Australia.
At 30 June 2005 this facility had a balance of $123,976 (2004: $185,420). An amount of $3,514 (2004: $45) being intereston funds utilised under this facility has been recognised as an expense in the reporting period. Interest accrues at arate of 8.60%. (2004: 8.85%).
Department of Public Works Annual Report 2004 - 05
189.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
ECONOMIC ENTITY PARENT ENTITY
2005 2004 2005 2004 $ $ $ $
21 Provisions
Current Employee benefits - annual leave 3,756,747 4,001,571 3,552,833 3,823,378 Dividends 194,718 427,736 194,718 427,736 Other 11,678 21,924 11,678 21,924
Total 3,963,143 4,451,231 3,759,229 4,273,038
Non-current Employee benefits - long service leave 119,187 111,202 - -
Total 119,187 111,202 - -
CITEC recognises a provision for dividends declaredon or before reporting date, for the entire amountremaining undistributed at that date.
Movements in provisions
Employee benefits Carrying amount at the beginning of the year 4,112,773 3,971,749 3,823,378 3,709,789 Initial application of AASB 1028 - Employee Benefits - - - - Additional provision recognised 3,776,573 3,679,362 3,543,043 3,506,643 Reduction in provision as a result of payments (4,013,412) (3,538,338) (3,813,588) (3,393,054)
Carrying amount at the end of the year 3,875,934 4,112,773 3,552,833 3,823,378
Dividends Carrying amount at the beginning of the year 427,736 - 427,736 - Additional provision recognised 848,378 902,134 194,718 427,736 Reduction in provision as a result of payments (1,081,396) (474,398) (427,736) -
Carrying amount at the end of the year 194,718 427,736 194,718 427,736
Other Carrying amount at the beginning of the year 21,924 9,167 21,924 9,167 Additional provision recognised (22,046) 48,964 (22,046) 48,964 Reduction in provision as a result of payments 11,800 (36,207) 11,800 (36,207)
Carrying amount at the end of the year 11,678 21,924 11,678 21,924
22 Tax liabilities
Current Provision for income tax expense 685,900 579,857 409,069 446,005
Total 685,900 579,857 409,069 446,005
Non-current Provision for deferred income tax expense 349,694 615,389 349,629 615,222
Total 349,694 615,389 349,629 615,222
190.
Section 8 CITEC Financial Statements
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
ECONOMIC ENTITY PARENT ENTITY
2005 2004 2005 2004 $ $ $ $
23 Other liabilities and unearned revenue
Current Unearned revenue 2,391,466 2,919,223 166,768 652,008
Total 2,391,466 2,919,223 166,768 652,008
Lease incentive liability 141,700 141,700 141,700 141,700 Non interest-bearing loan agreement 352,381 352,381 352,381 352,381 Other 1,012,782 914,371 1,012,782 914,371
Balance at the beginning of the financial year 11,013,195 10,958,699 11,013,195 10,958,699Transaction with owners as owners:
Owners: Net leave liabilities transferred 61,220 54,496 61,220 54,496
Balance at the end of the financial year 11,074,415 11,013,195 11,074,415 11,013,195
Retained surpluses
Balance at the beginning of the financial year 13,783,473 12,399,862 12,877,470 12,019,425 Net surplus/(deficit) 683,745 1,425,788 607,528 1,285,781 Adjustment to retained profits on conversion of convertible note - 659,628 - - Adjustment to retained profits in respect of change in outside equity interest’s share of controlled entity opening retained profit - (131,954) - - Retrospective adjustment to goodwill arising on consolidation upon application of AASB 1013 - Accounting for Goodwill - (142,115) - - Dividends paid or declared (194,718) (427,736) (194,718) (427,736)
Balance at the end of the financial year 14,272,500 13,783,473 13,290,280 12,877,470
Balance at the end of the financial year 1,225,865 1,188,430 - -
Department of Public Works Annual Report 2004 - 05
191.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
ECONOMIC ENTITY PARENT ENTITY
2005 2004 2005 2004 $ $ $ $
25 Reconciliation of net surplus/(deficit) to net cash provided by/(used in) operating activities
a) 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 Statement of Financial Position as follows: Cash at bank and on hand (see note 11) 9,235,465 10,925,314 5,598,054 7,096,094 Bank overdrafts (see note 20) (123,976) (185,420) - -
Total 9,111,489 10,739,894 5,598,054 7,096,094
b) Reconciliation of net operating resultafter tax to net cash provided by/(used in)operating activities
Surplus/(deficit) from ordinary activities before income tax expense 1,610,440 2,746,895 874,512 1,870,660 Less: Income tax expense 568,837 787,067 266,984 584,879
Net surplus/(deficit) 1,041,603 1,959,828 607,528 1,285,781
Non-cash items Depreciation expense 3,723,453 3,543,808 3,644,040 3,432,362 Amortisation expense 2,452,549 1,988,765 2,330,839 1,860,463 (Profit)/loss on sale or disposal of non-current assets 163,371 179,293 152,844 173,640 Transactions processed through related entity current account 7,355 14,727 25,000 - Forgiveness of dividend liability - (116,420) - - Grants and other contributions - (13) - (13)
Change in assets and liabilities (Increase)/decrease in receivables (1,500,224) (1,279,543) (871,327) (293,842) (Increase)/decrease in LSL receivable (9,800) (12,623) (9,800) (12,623) (Increase)/decrease in income tax receivable - 2,960 - - (Increase)/decrease in GST receivable (97,417) 96,350 (53,544) 109,673 (Increase)/decrease in inventories 21,132 (64,560) 21,132 (64,560) (Increase)/decrease in interest receivable (24,272) (74,724) (24,611) (74,574) (Increase)/decrease in prepayments (828,303) (186,691) (540,224) (377,347) (Increase)/decrease in other assets 3,141 19,880 450 1,680 (Increase)/decrease in future income tax benefit 125,282 358,904 123,509 290,612 Increase/(decrease) in unearned revenue (517,192) 685,228 (485,239) 159,302 Increase/(decrease) in employee provisions (183,605) 195,520 (209,326) 168,085 Increase/(decrease) in payables 328 (278,465) (361,960) (77,767) Increase/(decrease) in provisions (2,325) 12,757 (10,310) 12,757 Increase/(decrease) in provision for tax expense 106,043 579,857 (36,936) 446,005 Increase/(decrease) in GST payable 463,395 174,736 296,245 66,267 Increase/(decrease) in interest payable 123 107 (37) 62 Increase/(decrease) in other liabilities (425,544) 1,647,231 (425,544) 1,647,231 Increase/(decrease) in provision for deferred tax expense (265,695) (151,692) (265,593) (151,737)
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
ECONOMIC ENTITY PARENT ENTITY
2005 2004 2005 2004 $ $ $ $
26 Commitments for expenditure
a) Finance lease liabilities Lease liabilities recognised in the Statement of Financial Position: Current 368,791 350,074 368,791 350,074 Non-current 31,609 400,400 31,609 400,400
Total 400,400 750,474 400,400 750,474
Commitments under finance leases at the reporting date are inclusive of anticipated GST and are payable as follows: Not later than one year 380,952 380,952 380,952 380,952 Later than one year and not later than five years 31,746 412,698 31,746 412,698
Total commitments 412,698 793,650 412,698 793,650 Less: Future finance charges recognised in the Statement of Financial Position (12,298) (43,176) (12,298) (43,176)
Total finance lease liability 400,400 750,474 400,400 750,474
b) Non-cancellable operating lease commitments Commitments under non-cancellable operating leases
at reporting date are inclusive of anticipated GST andare payable as follows:
Not later than one year 6,199,017 6,158,629 6,083,888 6,066,873 Later than one year and not later than five years 670,469 8,199,601 448,871 7,873,600 Later than five years - 97,639 - 97,639
Total 6,869,486 14,455,869 6,532,759 14,038,112
These lease commitments are classed into two categories: Supply of computer hardware In all computer hardware leases there exists an option for CITEC to instigate one of the following options
prior to termination: Extend the term of the lease at renegotiated rates and equipment upgrades; Terminate the lease and return the equipment to the lessor; or Purchase the equipment at a price negotiated between the lessor and CITEC. Supply of office accommodation Sydney Canberra Melbourne Brisbane The arrangements for the supply of office accommodation are stated in current dollar values, however, the future
commitments have rent reviews which are tied to increases based on market value, set percentage and/or CPI.
ECONOMIC ENTITY PARENT ENTITY
2005 2004 2005 2004 $ $ $ $
c) Capital expenditure commitments Material capital expenditure commitments inclusive of anticipated GST contracted for but not recognised as payable are as follows: Computer equipment and other capital items 187,076 137,670 187,076 137,670
Total 187,076 137,670 187,076 137,670
Not later than one year 187,076 137,670 187,076 137,670
Total 187,076 137,670 187,076 137,670
Department of Public Works Annual Report 2004 - 05
193.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
27 Contingencies
Guarantees and undertakings
Guarantees and undertakings have been provided as detailed below, but are not required to be recognised as liabilitiesin the Statement of Financial Position.
PARENT ENTITY
2005 2004 $ $
CITEC has arranged seven bank guarantees in relationto business opportunities pursued by its controlled entityCSI Holdings Pty Ltd, as follows:
Commonwealth of Australia 80,000 80,000 Australian Securities and Investment Commission 382,000 295,000 State of Victoria 107,670 7,000 State of New South Wales 500,000 500,000 Sydney Water Corporation 125,000 25,000 State of Western Australia 27,500 27,500 Insolvency andTrustee Service Australia 127,000 127,000
Total 1,349,170 1,061,500
Country of 2005 2004 Incorporation % Owned % Owned
28 Controlled entities
Set out below are the entities controlled by CITEC, whose revenue,expenses, assets, liabilities and equity have been included withinthese financial statements:
Controlled entities of CITEC:
CSI Holdings Pty Ltd Australia 100% 100% Aurion Corporation Pty Ltd Australia 50.98% 50.98%
The Queensland Auditor-General audits both CSI Holdings Pty Ltd and Aurion Corporation Pty Ltd.
ECONOMIC ENTITY PARENT ENTITY
2005 2004 2005 2004 $ $ $ $
29 Financial instruments
a) Interest rate risk exposure The economic entity’s exposure to interest rate risk,
which is the risk that a financial instrument’s value willfluctuate as a result of changes in market interest andthe effective weighted average interest rates on classesof financial assets and financial liabilities, is as follows:
Finance lease principal commitments Less than one year 368,791 350,074 368,791 350,074 Between 1-5 years 31,609 400,400 31,609 400,400
Total 400,400 750,474 400,400 750,474
Weighted average rate 5.22% 5.22% 5.22% 5.22%
Queensland Treasury Corporation borrowings Less than one year 3,173,446 - 3,173,446 - Between 1-5 years 2,724,035 2,220,000 2,724,035 2,220,000
Total 5,897,481 2,220,000 5,897,481 2,220,000
Weighted average rate 5.72% 5.83% 5.72% 5.83%
Other borrowings - non-interest bearing Non interest-bearing 381,746 734,127 381,746 734,127
Total 381,746 734,127 381,746 734,127
Weighted average rate n/a n/a n/a n/a
All other assets and liabilities have no interest rate risk exposure.Floating interest rate represents the most recently administered market rate applicable to the instrument as at 30 June 2005.The fixed rate represents weighted average market interest rate.
Department of Public Works Annual Report 2004 - 05
195.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
29 Financial instruments (continued)
b) Credit risk exposure Credit risk exposure represents the extent of credit related losses that CITEC may be subject to on amounts to be
exchanged under loans and accounts receivable from financial assets. Where appropriate, collateral is obtained inthe form of security over property.
The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets isthe carrying amount of those assets net of any provisions for doubtful debts as indicated in the Statement ofFinancial Position.
c) 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 financialassets and liabilities with similar risk profiles.
The carrying amounts and estimated net fair values of financial assets and financial liabilities held at balance date aregiven below:
ECONOMIC ENTITY PARENT ENTITY
2005 2004 2005 2004 $ $ $ $
Financial assets
Cash Total carrying amount 9,235,465 10,925,314 5,598,054 7,096,094
Net fair value 9,235,465 10,925,314 5,598,054 7,096,094
Receivables Total carrying amount 17,189,564 15,666,603 14,423,012 13,534,853
Net fair value 17,189,564 15,666,603 14,423,012 13,534,853
Other financial assets Total carrying amount - - 2,220,000 2,320,000
Net fair value - - 2,220,000 2,320,000
Shares Total carrying amount - - 500,002 500,002
Net fair value - - 500,002 500,002
Financial liabilities
Payables Total carrying amount 9,949,161 9,500,497 8,691,336 8,727,565
Net fair value 9,949,161 9,500,497 8,691,336 8,727,565
Cash overdraft Total carrying amount 123,976 185,420 - -
Net fair value 123,976 185,420 - -
Finance lease liabilities Total carrying amount 400,400 750,474 400,400 750,474
Net fair value 2,724,035 2,220,000 2,724,035 2,220,000
Other borrowings - non-interest bearing Total carrying amount 381,746 734,127 381,746 734,127
Net fair value 381,746 734,127 381,746 734,127
196.
Section 8 CITEC Financial Statements
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
ECONOMIC ENTITY PARENT ENTITY
2005 2004 2005 2004 $ $ $ $
30 Taxation
Information in respect of income tax expense incurredby those activities of the economic entity.
Surplus/(deficit) from ordinary activities 1,610,440 2,746,895 874,512 1,870,660
Indicative tax expense at 30% 483,132 824,068 262,353 561,198 Tax effect of permanent and other differences: Non deductible expenses 36,555 112,766 - - Non deductible entertainment 6,213 23,681 4,631 23,681 Legal fees 263 347 - - Over provision of previous year - (31,680) - - Adjustment for R&D concessions (22,613) (27,728) - - Losses not recognised 45,878 - - - Future income tax benefit reversed 19,409 - - - Recoupment of prior year tax losses not previously brought to account - (114,387) - -
Total income tax expense 568,837 787,067 266,984 584,879
Total income tax expense comprises movements in: Provision for income tax expense 709,251 579,857 409,069 446,005 Future income tax benefit 125,282 358,903 123,509 290,612 Provision for deferred income tax (265,696) (151,693) (265,594) (151,738)
Total income tax expense 568,837 787,067 266,984 584,879
Provision for deferred income tax:
Attributable to timing differences: Additional tax depreciation 215,820 167,637 215,820 167,637 Australian source interest income (7,281) (22,418) (7,383) (22,373) Increase in prepayment less than 13 months - (16,178) - - Offset against future income tax benefit - 16,178 - - Depreciation recovered on asset sales 55 13,297 55 13,297 Pooled assets 57,101 (6,823) 57,101 (6,823)
Total timing differences movement for the reporting period 265,695 151,693 265,593 151,738 Attributable to balance of provisions at 1 July (615,389) (767,082) (615,222) (766,960) Attributable to income tax expense - - - -
Total provision for deferred income tax (349,694) (615,389) (349,629) (615,222)
Future income tax benefit:
Attributable to timing differences: Movements in provisions (71,072) 52,677 (81,183) 29,446 Audit fee accrual 195 6,638 195 6,638 Recognition of lease incentive and amortisation (42,510) (42,510) (42,510) (42,510) Movement in accrued interest payable (11) 18 (11) 18 Finance lease amortisation - 4,565 - - Finance lease interest - 202 - - Finance lease payments - (5,977) - - Recognition of tax losses carried forward (19,409) 19,409 - - Movement in other accrued expenses 7,525 13,434 - -
Total timing differences for reporting period (125,282) 48,456 (123,509) (6,408)
Department of Public Works Annual Report 2004 - 05
197.
Notes to and forming part of the fi nancial statementsfor the year ended 30 June 2005
ECONOMIC ENTITY PARENT ENTITY
2005 2004 2005 2004 $ $ $ $
30 Taxation (continued)
Attributable to balance at 1 July 1,434,024 1,792,928 1,250,996 1,541,608 Attributable to prior period tax losses of controlled entity - (198,742) - - Attributable to income tax expense of controlled entity - - - - Attributable to provision for deferred income tax at balance date against future income tax benefit - 16,178 - - Attributable to over provision from prior year - 31,680 - - Attributable to adjustment to prior year income tax return - 27,728 - - Attributable to current period tax losses - (284,204) - (284,204)
1,434,024 1,385,568 1,250,996 1,257,404
Total future income tax benefit 1,308,742 1,434,024 1,127,487 1,250,996
Tax losses not recognised in future income tax benefit 459,475 - - -
31 Agency transactions
CITEC has commercial arrangements with various government agencies for the provision of disbursement servicesto third parties. Separate bank accounts are utilised for Brisbane and Canberra clients to facilitate the receiving anddisbursement of funds according to client instructions. At any time, funds received from clients may be held within thesebank accounts awaiting disbursement.
A reconciliation of amounts collected and distributed follows:
PARENT ENTITY
2005 2004 $ $
Brisbane: Balance at beginning of year 32,280,170 18,835,897 Collections during reporting period 2,866,495,917 2,596,253,557 Disbursements according to clients’ instructions during reporting period (2,890,635,420) (2,582,809,284)
Balance at end of year 8,140,667 32,280,170
Canberra: Balance at beginning of year 607,769 942,083 Collections during reporting period 670,172,967 615,269,614 Disbursements according to clients’ instructions during reporting period (655,148,557) (615,603,928)
Balance at end of year 15,632,179 607,769
Fees of $ 7,367,795 (2004: $ 6,056,375) received by CITEC for providing thesedisbursement services are recognised in user charges (see Note 3).Under the terms of the commercial arrangements interest earned on thesebalances is retained by CITEC and disclosed as interest revenue.
These activities are audited by the Queensland Auditor-General.
32 Board and committee remuneration
Total of the remuneration paid or payable or otherwise made available to the members of CITEC’s Business Enterprise Board: 108,230 113,045
CITEC’s Business Enterprise Board was abolished effective 30 June 2005.
198.
Section 8 CITEC Financial Statements
Certifi cate of CITEC
These General Purpose Financial Statements have been prepared pursuant to the Financial Administration and Audit Act 1977(the Act), and other prescribed requirements. 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 materialrespects; and
b) the statements have been drawn up so as to present a true and fair view, in accordance with prescribed accountingstandards, of the transactions of CITEC for the financial year ended 30 June 2005, and of the financial position of CITEC atthe end of that year.
W Pashen FCPA, B.Comm, ACIS
Acting General ManagerFinance and Corporate Services - CITECDate: September 2005
M Grierson B.Econ, M.PubAdmin
Director GeneralDepartment of Public WorksDate: September 2005
-
Department of Public Works Annual Report 2004 - 05
199.
Independent Audit Report
To the Director-General of the Department of Public Works
ScopeThe Financial ReportThe financial report consists of the consolidated financial statements of the economic entity comprising CITEC, acommercialised business unit of the Department of Public Works, and the entities it controlled at the year’s end or from timeto time during the year.The financial report consists of the statement of financial position, statement of financial performance,statement of cash flows, notes to and forming part of the financial report and certificates given by the Accountable Officer andofficer responsible for the financial administration of CITEC, for the year ended 30 June 2005.
Accountable Officer’s ResponsibilityThe Accountable Officer is responsible for the preparation and true and fair presentation of the financial report, themaintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error andfor the accounting policies and accounting estimates inherent in the financial report.
Audit ApproachAs required by law, an independent audit was conducted in accordance with QAO Auditing Standards to enable me toprovide an independent opinion whether in all material respects the financial report is presented fairly, in accordance withthe prescribed requirements, including any mandatory financial reporting requirements as approved by theTreasurer forapplication in Queensland.
Audit procedures included –• examining information on a test/sample basis to provide evidence supporting the amounts and disclosures
in the financial report;• assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant
accounting estimates made by the Accountable Officer;• obtaining written confirmation regarding the material representations made in conjunction with the audit; and• reviewing the overall presentation of information in the financial report.
IndependenceThe Financial Administration and Audit Act 1977 promotes the independence of the Auditor-General and QAO authorisedauditors.The Auditor-General is the auditor of all public sector entities and can only be removed by Parliament.The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any personabout the way in which powers are to be exercised.The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report toParliament matters which in the Auditor-General’s opinion are significant.
Audit OpinionIn accordance with s.40 of the Financial Administration and Audit Act 1977 –a) I have received all the information and explanations which I have required; andb) in my opinion – i) the prescribed requirements in respect of the establishment and keeping of accounts have been complied with in all
material respects; and ii) the financial report has been drawn up so as to present a true and fair view, in accordance with the prescribed
accounting standards of the transactions of CITEC (consolidated), and the parent entity for the financial year 1 July2004 to 30 June 2005 and of the financial position as at the end of that year.
J F WELSH, FCPA
Acting Director of Audit Queensland Audit Office(As Delegate of the Auditor-General of Queensland) Brisbane
Further copies of this report are available from the Corporate Planning and External Relations Unit, Department of Public Works, Level 6, 80 George Street, Brisbane Q 4000
