Queensland Parliament - annual report...Geoff Gorrie Chair Safe Food Production Queensland annual...

annual report 2008/09

2 safe food production queensland

The Honourable Tim Mulherin Minister for Primary Industries, Fisheries and Rural and Regional Queensland GPO Box 46 Brisbane Q 4001

Dear Minister

I am pleased to present the Annual Report 2008/09 for Safe Food Production Queensland.

I certify that this Annual Report complies with:

• the prescribed requirements of the Financial Accountability and Audit Act 1977 and the Financial Management Standard 1997, and

• the detailed requirements set out in the Annual Reporting Guidelines for Queensland Government Agencies.

A checklist outlining the annual reporting requirements can be accessed at www.safefood.qld.gov.au

Yours sincerely

Geoff Gorrie Chair Safe Food Production Queensland

3annual report 2008/09

we love what we do and know that we can make a difference.


we strive to be a trusted and objective leader in food safety.

01 who we are09 our mission 09 our values10 strategies10 objectives10 activities12 our board16 our team17 organisational structure

03 corporate governance33 corporate governance35 corporate services35 client contact centre36 communications38 human resources39 innovation39 finance

02 chairman’s foreword 04 chief executive officer’s foreword 06 highlights and achievements for 2008/09

02 the regulatory framework19 best practice regulation 20 food safety regulation21 bi-national food safety system22 strengthening food safety schemes 28 working with stakeholders31 additional information

04 accounts 2008/0941 financial statements


chairman’s foreword

We manage our business to minimise the regulatory burden on businesses, while ensuring the future needs of our stakeholders can be met.


It gives me great pleasure to introduce the 2008/09 Annual Report of Safe Food Production Queensland (SFPQ). SFPQ experienced both a challenging and productive year as it developed policies and provided services to the primary production and processing sectors.

We not only met immediate challenges such as addressing food safety issues and developing cost effective monitoring methods, but we also pursued long term challenges such as achieving a consistent approach to the way regulations and standards are interpreted and implemented.

Several highlights illustrate the breadth and depth of our work.

We have, through the re-engineering of our activities, delivered another strong financial result for 2008/09, demonstrating our ability to deliver a sustainable financial outcome whilst at the same time maintaining client service. We manage our business to minimise the regulatory burden on businesses, while ensuring the future needs of our stakeholders can be met.

SFPQ has made submissions to a number of reviews related to the food regulatory system over the past 12 months, in particular, the Review of Queensland Government Boards, Committees and Statutory Authorities. We welcomed the opportunity to contribute to these reviews, which has led to processes being streamlined and overlaps in function removed.

We played an integral role in the development of the National Seafood Standard - a watershed document that establishes a policy framework for ensuring seafood produced and processed in Australia is safe. SFPQ will adopt the standard and implement a seafood food safety scheme in Queensland from July 2009.

We also made leading contributions to national policies and programs that will shape the future of the primary production industries we oversee. For example, SFPQ chairs national working groups on the management of food surveillance systems; the design of an integrated model for standards development and consistent implementation of the Primary Production and Processing Standard for Eggs; the further development of a national framework for compliance and enforcement systems; and the establishment of a national framework for food safety auditor management.

SFPQ prides itself on being an organisation that embraces leading edge technology. It continues to deliver more flexible, innovative solutions to clients that not only solve their complex problems, but which also mitigate risk and unnecessary exposure.

Building strong relationships with our key stakeholders underpins everything we do at SFPQ. We recognise the significant challenges being faced by industry today and we continue to focus our energy on facilitating appropriate solutions. We want to be an active partner in the development of their business and continuously improve our service to meet those needs.

“ A focus on customer value, strong business performance and close attention to governance issues have all laid a solid foundation for SFPQ’s future ”

To that end, I would like to extend my appreciation to my fellow Board directors and acknowledge the high level of competence and dedication shown by SFPQ staff, led by the Chief Executive Officer Barbara Wilson and the Executive Management Group. I thank them all for their continued commitment and hard work.

Geoff Gorrie Chairman Safe Food Production Queensland


My admiration for our primary producers increases with each year I spend with SFPQ. Whatever the challenges might be, they are met with a will and determination to succeed.Their attitude and determination inspires us all at SFPQ.

chief executive officer’s foreword


The past 12 months were a very busy period for SFPQ as we embarked on one of our most ambitious years of new work.

In 2008/09, a major focus for our team and our industry partners was the development of the Food Safety Scheme for Seafood (Seafood Scheme) which was approved for implementation in February 2009.

I am particularly pleased with our results in reducing our carbon footprint. We have increased our rate of recycling and we are working with our clients on a range of online projects that have reduced our need to travel and the associated costs. For example, the dairy industry has embraced greater sharing of information as an alternative to intense auditing by SFPQ to verify compliance. These examples represent transformational change. Our challenge is continue to develop further carbon opportunities and build the networks that enable emission reductions to be achieved.

Accreditation holders in the Meat Scheme have benefited from our initiative of making cost effective monitoring tools such as rapid tests and data logging more readily available to help them monitor the effectiveness of the time and effort they expend on food safety management. Such projects have provided a wider and more meaningful appreciation of what food safety entails, rather than just relying upon an audit to do so.

Our corporate services team delivered more efficient and effective portable computer and communication options that allow us to keep in touch with our accreditation holders throughout the state. The use of live messenger and video conferencing are saving time and travel costs, and allowing issues to be resolved face to face. Furthermore, our financial audit result, maintains our record of transparent and accountable management of resources.

Our policy and strategy team finalised the consultation process as required before the Seafood Scheme can be implemented as from 1 July 2009. This is the first food safety scheme that has been developed specifically to implement a national primary production and processing standard from the outset. This scheme has the added benefit of being able to draw on the experience of earlier schemes in the meat, dairy and egg industries.

We recognise the difficulties faced in the current economic climate and could not have achieved this milestone without the co-operation and forbearance of the industry members.

This year we contributed to various reviews of food safety regulation as part of the ongoing search for the ideal model of effective regulation. SFPQ’s strategies and activities were assessed as being effective as well as relevant. We will continue to work hard to maintain this level of recognition in a climate of reform and restructure within the public service.

My admiration for our primary producers increases with each year I spend with SFPQ. Whatever the challenges might be, they are met with a will and determination to succeed. Their attitude and determination inspires us all at SFPQ.

“ These are fascinating and challenging times, and SFPQ is ideally placed to build on its success. ”

I am committed to ensuring SFPQ continues to influence and facilitate, shape and develop new ideas as it works with a diverse range of accreditation holders and partners to make primary production and processing the best it can be for our partners, industry and consumers.

The achievements outlined in this report are only possible through the dedication and commitment of SFPQ staff for which I would like to thank them sincerely. I would also like to thank the directors of the SFPQ Board for once again supporting and advising me and my team.

Barbara Wilson CEO Safe Food Production Queensland


highlights and achievements 08/09

gathering valuable data

contributing at a national level

reducing our carbon footprint

adopting new technologies

working in partnership with industry

commitment to communication

drive for change

active involvement in regulatory reforms

introducing new food safety schemes


01 active involvement in regulatory reformsSFPQ contributes to a number of review processes that impact on the national framework for food regulation. Examples include the Red Meat Standard Development Committee, the Raw Milk Primary Production Committee and the Egg Standard Development Committee.

02 contributing at a national levelSFPQ continues to work collaboratively at a national level by continuing to develop the framework for consistent and coordinated implementation of, and compliance with, risk based food safety regulatory measures. Work has included:

• finalisation of the National Audit Policy Implementation Manual• finalisation of the Special Purpose Working Group review

of equivalence and standards implementation• development of the Integrated Model for Standards

Development and Implementation• development of the Folic Acid Mandatory Fortification

Compliance and Enforcement Model• development of the Food – Medicine Interface

Monitoring Proposal.

03 working in partnership with industryWorking in partnership with industry helps SFPQ maintain a consistent approach to food safety and to plan effectively for the future. Our relationship with industry continues to be a two-way street as we learn from each other and work together to improve food safety. We regularly share food safety information by means of regular meetings, workshops and forums. This year we held a series of workshops across a range of primary production sectors on issues such as food safety, managing food risks and promoting food safety outcomes. We also held the inaugural Queensland Stakeholder Forum in June 2009.

04 gathering valuable dataSFPQ conducted a range of surveys as part of its ongoing monitoring and surveillance activities to monitor the outcomes of the regulatory framework. Examples included the ready-to-eat meat survey, the egg producers and processors evaluation survey, and the red meat abattoir survey. The surveys showed that the Queensland primary production and processing sectors are strongly committed to food safety, are aware of national legislation for producing safe products, and are generally managing food safety well.

05 adopting new technologiesSFPQ continues to look for new and innovative products that help industry to detect potential food-borne illnesses early and be better positioned to manage such occurrences. Some of the technologies introduced this year include protein swab tests, data loggers and ATP residue tests. These tests indicate whether bacteria are present after cleaning and sanitising has occurred. This enables the business to identify and rectify any problems immediately

06 drive for changeSmart regulation makes use of information to drive change. Our business systems at SFPQ collect information from a range of sources, including consumer complaints, on-site monitoring and auditing activities, food sampling and research. We routinely analyse this information to ensure we effectively manage food risks. We do this by adopting simple business tools and activities such as interactive workspaces that both industry and SFPQ can use.

07 introducing new food safety schemesSFPQ finalised the development of the Food Safety Scheme for Seafood (Seafood Scheme) with it due to be implemented from 1 July 2009. This is our first food safety scheme developed specifically to implement a national primary production and processing standard from the outset. The Seafood Scheme sets out the basic food safety requirements for the primary production and processing of all seafood. It is designed to minimise food safety hazards and ensure seafood produced and processed is safe.

08 reducing our carbon footprintSFPQ is committed to reducing its impact on the environment. It introduced a range of initiatives that resulted in SFPQ reducing its paper usage by 35% and the amount of air travel by 48%.

09 commitment to communicationWe are committed to ensuring our stakeholders are kept informed and are aware of current food safety issues. Information is regularly exchanged through meetings with industry representatives and forums such as the SFPQ web site, newsletters, awareness campaigns, regular media coverage and specific promotions. During 2008/09, the SFPQ web site recorded a 27% increase in the number of hits.

2008/09 was a busy year for Safe Food Production Queensland. The following achievements were made:


who we are


The Act defines SFPQ’s powers, duties and functions, and provides a framework for ensuring the production of primary produce is carried out in a way that makes the primary produce fit for human or animal consumption and maintains food quality.

our mission To promote and protect food safety in primary production and processing – essentially ensuring the reliability and safety of the Queensland food chain.

In pursuing our mission, SFPQ staff have adopted values and behaviours that reflect how we intend to work with colleagues, partners and stakeholders.

our values define who we areThey are the fundamental beliefs of the people in our organisation. They guide our actions and behaviour. They influence the way we work with each other and the way we engage our stakeholders and the community.

These behaviours underpin SFPQ as a responsive, innovative and dynamic organisation, driven by strong cultural values and a dedicated professional team.

integrity We value our reputation for integrity and independence. We are constantly striving to uphold the highest professional standards, provide sound advice and rigorously maintain our independence. We will “walk the talk” even during the most challenging of times. We will do what is right.

family happinessWe are committed ensuring a safe, supportive and healthy working environment which supports work/life balance.

economic securityWe provide a stable income and other resources to support our staff both now and in the future. We have a responsibility to deal fairly, openly and honestly with each other and to review, challenge and improve work practices and processes.

loyaltyWe keep our promises to each and to our stakeholders. We foster continuous improvement and make decision objectively to enhance the credibility of SFPQ. We seek out responsibility and are accountable for our actions.

achievement We achieve our goals by being innovative, creative and responsive in the way we think, act and learn. In meeting and overcoming challenges, we expand capabilities to achieve appropriate quality outcomes and success.

our mission and values at workSFPQ was established under the Food Production (Safety) Act 2000 (the Act). SFPQ reports to the Minister for Primary Industries, Fisheries and Rural and Regional Queensland.


SFPQ pursues three strategies that reflect the challenges and opportunities facing the primary production and processing sectors. They are to:

01 Manage food safety risk through-chain

02 Be recognised for leadership on food safety issues

03 Add value to government and community investment in food safety systems.

This annual report outlines the key achievements and highlights of SFPQ’s performance against those strategies in 2008/09.

objectivesThe objectives of SFPQ under the Act are to:

• ensure the production and processing of primary produce is carried out in a way that makes produce fit for human and animal consumption and maintains food quality

• provide for food safety measures for the production and processing of primary produce consistent with the other state laws relating to food safety.

activitiesSFPQ’s activities include regulating, under food safety schemes, the production of primary produce to ensure it is safe for human and animal consumption.

We also advise, or make recommendations to the Minister about:

• food safety matters relating to the production of primary produce

• the development or implementation of food safety schemes

• monitoring the hygiene and operating procedures of premises, vehicles, plant and equipment used for the production of primary produce.

SFPQ encourages businesses engaged in the production of primary produce to:

• minimise food safety risks by developing and maintaining food safety programs

• develop and adopt quality assurance measures for the production of primary produce.

SFPQ also:

• approves or audits quality assurance measures

• approves food safety programs

• grants accreditations

• approves and trains individuals to carry out audits to monitor compliance with food safety schemes

• reviews audits

• commissions research relating to food safety matters for primary produce.

“ We stand up and challenge the status quo, always searching for better ways to do things. ”

SFPQ strategiesSFPQ is an organisation of skilled and committed people with a substantial record of achievement. Like the industries we oversee, SFPQ faces considerable pressure to change and improve its performance.

be recognised for leadership on food safety issues by:

add value to government and community investment in food safety systems by:

manage food safety risk through- chain by:

• achieving food safety outcomes with minimum burden or impost on industry

• applying proactive regulatory and risk management activities

• developing outcome and risk-based frameworks for food safety regulation

• interfacing with other regulatory processes

• promoting food safety outcomes, including alternative, flexible methodologies

• monitoring emerging issues that may impact on food safety.

• supporting and implementing the Food Regulation Inter-Governmental Agreement

• developing and implementing national standards through the Food Standards Australia New Zealand (FSANZ) system

• creating best practice to support through-chain management of food safety

• responding authoritatively on food safety issues.

• understanding stakeholder expectations and applying business processes that are transparent, accountable and ethical

• collaborating with stakeholders to achieve food safety outcomes

• applying business processes that are efficient, transparent and accountable

• ensuring SFPQ’s investments in systems and programs link with and complement investment in food safety by industry and other agencies

• building and maintaining a workforce with skills and attributes that match the needs of the business

• adopting best practice in financial and information management to reduce costs of servicing and capture benefits from available information.

key strategies and outcomes



sfpq boardThe Board provides advice to the Minister and the Chair on SFPQ administration, policies, strategic direction and corporate planning, and on national and international trends in food safety.

The role of the Board is to maintain an overview of the administration and policies of the organisation. It has no direct management responsibility and plays no regulatory role.

The Board delegates responsibility to the Chief Executive Officer for the day-to-day management of the organisation The Board consists of a chair and four other directors. The directors for the reporting period were:

• Mr Geoff Gorrie

• Ms Kathryn Adams

• Ms Sue Ryan

• Mr Bob Shead

• Dr Linda Selvey

The Chair and directors are appointed by the Governor in Council upon the recommendation of the Minister.

All Board directors are independent, non-executive directors, appointed on a part-time basis for up to three years and are eligible for reappointment.

Directors have each demonstrated substantial achievement in their chosen field.

board meetingsThe Board meets quarterly and requires a quorum of directors eligible to vote (i.e. at least three members). In order to meet operational needs, the Board may convene special meetings or use electronic methods to agree or respond to specific issues.

The Board met four times during 2008/09.

achievements of the board• Setting the strategic direction of SFPQ and monitoring

key performance indicators.

• Contributing to reviews at both a national and state level regarding the food regulatory framework.

• Developing and updating the SFPQ Business Plan, extending its time line to 2012.

our boardThe Board is primarily responsible for our overall strategic direction and for ensuring our legal obligations are fulfilled.

From left to right: Mr Bob Shead, Ms Kathryn Adams, Mr Geoff Gorrie, Ms Sue Ryan and Ms Sophie Dwyer (on behalf of Dr Linda Selvey)


Ms Sue Ryan

Ms Sue Ryan was appointed as a director in May 2007.

Ms Sue Ryan is responsible for the Queensland Primary Industries and Fisheries (QPI&F) Industry Development and Trade Unit which develops strategies and programs to guide industry development and adjustment and to promote investment, exports and trade, and market opportunities. She is also a Director of QRAA and a member and graduate of the Australian Institute of Company Directors.

Sue has provided strategic leadership in investment decisions that affect QPI&F priorities. She is interested in driving integrated government and industry support for primary industry business development, including expanded exports of Queensland food and agribusiness products and services.

Sue’s expertise in government accounting contributes to her role as finance sponsor for the Board.

Ms Kathryn Adams

Ms Kathryn Adams was appointed as a director in May 2007.

Kathryn is a senior research fellow with the Australian Centre for Intellectual Property in Agriculture, a collaborative arrangement with Griffith University, the University of Queensland and the Australian National University.

She is a microbiologist by profession and specialises in intellectual property management. Kathryn has a Master of Business, Master of Environmental Studies, Bachelor of Science - Agriculture (Honours), Master of Law and graduate diplomas in administration and legal practice.

As well as membership of the SFPQ Board, Kathryn holds directorships of Future Farm Industries CRC Ltd, Cotton Catchment Communities CRC Ltd, Forest and Wood Products Australia Ltd and Australian Forestry Standard Ltd.

Kathryn is also a Fellow of the Australian Institute of Company Directors.

Chair Mr Geoff GorrieMr Geoff Gorrie was initially appointed as Chair of the Board in 2003.

Geoff is a consultant specialising in regulation of primary products, natural resource management and sustainability, agriculture and food policy, and corporate governance.

Formerly the Deputy Secretary, Agriculture Fisheries and Forestry Australia, Geoff has a long history in agricultural and trade policy, food policy and natural resource management issues. He has also had extensive experience in management and administration.

Geoff holds a Bachelor of Science and a Diploma of Education from the University of New England as well as a Bachelor of Arts and a Bachelor of Economics from the Australian National University. He was awarded an Australia Day Public Service Medal in 2002.

our board members


Dr Linda Selvey

Linda Selvey was appointed as a director in May 2007.

Dr Linda Selvey is Senior Director, Population Health for Queensland Health. The Population Health Branch consists of Environmental Health, Population Health Planning and Development, Health Promotion and Cancer Screening Services Units.

Linda is Chair of the intergovernmental task force responsible for whole of government pandemic planning for Queensland. She is also Deputy Chair of the Australian Population Health Development Principal Committee, a subcommittee of the Australian Health Ministers Advisory Council and chair of the Blood Borne Virus and Sexually Transmissible Infections Sub-committee.

Linda has a medical degree, a Master of Applied Epidemiology and a PhD in viral immunology. She is a Fellow of the Australasian Faculty of Public Health Medicine.

Linda brings a valuable public health perspective to the Board.

Mr Bob Shead

A partner at BDO Kendalls, Mr Bob Shead has been a director since 2003.

Before joining BDO Kendalls in 2000, Bob was an Executive Director at Queensland Treasury, where he also acted as head of the Financial Management, Economics and Corporate Services divisions.

Bob introduced a series of financial management, governance and audit reforms over a period of 16 years. As a consultant, Bob has undertaken assignments for government owned corporations, departments, local authorities, statutory authorities, private sector clients and the Asian Development Bank.

Bob is Chair of Queensland Health’s Audit and Risk Management Committee and a member of the Department of Emergency Services Audit Committee. He is also a Fellow of CPA Australia and of the Australian Institute of Company Directors, and an Adjunct Professor at Griffith University.


our teamThe phrase ‘neat, fleet and small feet’ encapsulates SFPQ’s regulatory philosophy of delivering minimalist, cost-effective regulation that leaves a small imprint on day-to-day business operation.

During 2008/09, SFPQ employed 38 staff at its head office in Brisbane and offices in Toowoomba, Townsville, Bundaberg and the Gold Coast.

staff list 2008/09ceo and communications

corporate services

strategy, policy and development

Barbara Wilson Camilla Bowles to 2/7/08 Kimberley Frew Lara Yantsch-Recher from 15/9/08 Lorraine Shaw from 17/11/08 Melanie Taylor

Mandy Mawson Anna Langton Ania Johnston Asheeka ChandraJames Spargo Katie HairKeith GemmellLisa Bartsch from 25/8/08 Lisa Zhao Olivia Denholm Rowena Quick

Phil Pond Brian Witherspoon David Wilkinson Emma Crimston Ian Bray from 27/10/08 Kerry Bell Kylie Rees Megan O’Halloran Natashia Potztal to 15/8/08 Russell Schultz

field services

verification team

surveillance team

enforcement team

Ashley McCullough Barry Wruck Duncan Haig Ken Crotty (casual) Kevin Bell Ray Bartlett to 11/7/08 Rosie Winters Russell Johnson Steve Watson from 9/2/09 (casual) Sue Myrowkah Wayne Bredden

Rick Jacobson Natalija Zimnoch Peter Armstrong

Jennifer HainesRoger Sayce


organisational structure

general manager - policy

strategy and development

Phil Pond

general manager - corporate services

Mandy Mawson

finance managerAsheeka Chandra

innovation & business

improvement manager

Keith Gemmell

systems improvement coordinator

Rowena Quick

team leader

enforcementJennifer Haines

enforcement officer

Roger Sayce

team leader

verificationAshley

McCullough

verification officers

Kevin Bell Wayne Bredden Sue Myrowkah Rosie Winters Barry Wruck

Russell Johnson Duncan Haig

team leader

surveillanceRick

Jacobson

surveillance officers

Natalija Zimnoch Peter

Armstrong

ICT supportJames Spargo

corporate finance officerAnia

Johnston

hr coordinator

Anna Langton

corporate operations

officersOlivia Denholm

Katie Hair Lisa Bartsch Lisa Zhao

verification officer (special

projects)Russell Schultz

principal policy

officersBrian Witherspoon

David Wilkinson

senior policy officer

Ian Bray

assessment officers

Megan O’Halloran Emma Crimston

Kylie Rees

strategic evaluation and

assessment manager

Kerry Bell

project support officer - ceo

Kimberley Frew

communications officer

Lara Yantsch -Recher

project officerLorraine Shaw

communications managerMelanie Taylor

chief executive

officer

Barbara Wilson


theregulatory framework


Toward Q2 identifies five key ambitions to create a vision for Queensland. They are:

• Strong: creating a diverse economy powered by bright ideas.

• Smart: delivering world-class education and training.

• Fair: supporting safe and caring communities.

• Green: protecting our lifestyle and environment.

• Healthy: making Queenslanders Australia’s healthiest people.

SFPQ makes an important contribution to these ambitions as outlined below.

strong

• Managing food safety arrangements to minimise risks to contribute to state and regional economic growth.

• Streamlining food safety regulation within the meat and dairy industries through innovations such as alternative compliance arrangements.

• Supporting effective food safety arrangements, which underpin the ability of the meat, dairy and egg industries to develop, maintain and enhance their export market opportunities.

• Contributing to the hosting of international trade delegations to Queensland.

smart

• Actively participating in national committees in relation to the national food regulatory framework.

• Conducting microbiological testing in key areas.

• Contributing to the development of national outcomes in food regulation.

• Building capacity for enhanced electronic service delivery to client base.

• Streamlining food safety regulation within the meat and dairy industries through innovations such as alternative compliance arrangements.

fair

• Developing food safety schemes, tailored to specific industries and activities.

• Building partnerships with food safety regulators, local government, auditors and industry to facilitate a consistent message about food safety matters.

• Overseeing and minimising effective regulatory framework whereby industry contributors are recognised and supported in the market place and thus providing consumers with confidence in the integrity of food products.

green

• Expanding the ‘reduce, reuse and recycle’ program in SFPQ offices.

• Installing energy efficient office equipment that meets appropriate environmental standards.

• Increasing light energy efficiency by installing sensor lights for meeting rooms and individual offices.

• Introducing more efficient travel plans where possible.

• Promoting staff awareness and participation in green initiatives by means of the intranet.

• Using only recycled printer and fax toner cartridges.

• Replacing a paper-based record keeping system with an electronic one and encouraging double-sided printing and copying as appropriate.

healthy

• Promoting and protecting food safety in primary production and processing by ensuring the reliability and safety of the Queensland food chain for consumers.

• Sponsoring events that contribute to improved public health outcomes, e.g. food safety week, Beef 2009, Annual Dairy Conference.

• Developing and supporting work-life balance initiatives to encourage staff to lead a healthy lifestyle.

• Additional personal protective clothing for staff to reduce the risks of sun exposure and workplace accidents.

best practice regulationIn September 2008, Premier Anna Bligh launched, Toward Q2: Tomorrow’s Queensland, which outlines the future direction and priorities for Queensland as it moves towards 2020.


how food safety regulation worksFood regulation influences consumer choice in a variety of ways, not just through the development, enactment and enforcement of legislation. An informed and discriminating consumer plays a key role in the regulatory system. While this does not mean that there is no place for more formal (or legislative) food regulation, it does mean that legislative regulation should only be seen as one part of the equation, just one component of the circle of responsibility for food safety.

Promoting food safety and preventing food-borne diseases is a key priority. Translating this priority into action at a local level is a lengthy and complex process and in countries such as Australia with established food safety systems and high standards of food safety, it is easy to forget how quickly food safety can be compromised should these complex systems fail.

Food regulation is aimed at achieving predetermined food safety outcomes. The alignment of these outcomes is also regulated nationally through a framework involving Australian, state, territory and local government agencies. The policies for delivering food safety outcomes are set by the Australia New Zealand Food Regulation Ministerial Council (ANZFRMC) under the Council of Australian Governments (COAG) inter-governmental food regulation agreement.

The Strategy for Consistent Implementation of Food Regulation in Australia provides a framework for collaborative work amongst food safety regulators in Australia and New Zealand (as appropriate) and fosters a consistent approach to implementation, including compliance and enforcement, of food regulation and standards.

The strategy outlines some common goals for implementation of a food regulatory system, establishes key guiding principles and facilitates the development of practical operating protocols or other guidelines within a systematic framework. Successful implementation of the strategy will provide significant benefits to the food industry through more effective mechanisms for compliance, and to consumers through increasing their confidence in the food regulatory system. (Refer to the bi-national food safety system on page 21.

food safety regulation


Each state has adopted a different approach to achieving consistency in the seamless regulation of food, using models that differ in their combination of services and portfolio responsibilities. However, all states recognise the importance of food safety to a range of government priorities, from tourism to consumer affairs to trade.

The Queensland Government believes food safety outcomes are important to industry and consumers. Consequently, Queensland has elected to deliver food regulatory activities by adopting a ‘virtual food safety agency’ approach.

Queensland has two major pieces of legislation regulating food safety, the Food Act 1981 administered by Queensland Health and the Food Production (Safety) Act administered by SFPQ.

Queensland Health is the lead agency for food safety in the manufacturing, retail and food service sectors, including issues relating to food composition and labeling.

bi-national food safety system

It is also responsible for statewide health promotion planning, implementation and evaluation to address priority public health issues including nutrition and related issues.

SFPQ complements these activities by managing food safety matters relating to the production and processing of primary produce. The Act aims to ensure food produced or sold in Queensland is safe and suitable for human consumption. The legislation focuses on preventative food safety management activities within food safety schemes, as well as providing a framework to address emerging issues that may impact on food safety.

SFPQ’s planning framework outlines at corporate and operational levels the strategies, outcomes, milestones and financial targets to be achieved by SFPQ during a three year planning cycle (2007/09).

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Australia New Zealand food regulation ministerial council (ANZFRMC)

Australia New Zealand food regulation ministerial council (ANZFRMC)

food regulation standing committee (FRSC)

working groups

Australia, state, territory and New Zealand government agencies

food standards Australia New Zealand (FSANZ)


strengthening food safety schemesSFPQ is responsible for the development of food safety controls for specific primary production and processing sectors.

These controls are implemented by means of food safety schemes and are implemented in those industry sectors in which the level of risk warrants such controls.

SFPQ’s food safety schemes are based on the principles of through-chain, risk-based regulation. Activities such as risk profiling and identification of appropriate mandatory regulatory controls are consistent with internationally-agreed principles so that the implementation of food standards in the domestic market underpins that required for international market access.

Under a food safety scheme, all sectors of the food chain are required to meet agreed, measurable standards of food safety. The schemes are developed in close consultation with industry, under the guidance of industry sub-committees and SFPQ’s Food Safety Advisory Committee. Schemes currently exist for meat, dairy and eggs.

what is a food safety scheme? In simple terms, a food safety scheme is a regulation that sets out minimum requirements that a primary production and/or processing business must legally meet to make sure its food is safe.

In Queensland there are currently food safety schemes for meat and meat products, dairy and dairy products, and eggs and egg products. A food safety scheme for seafood commenced implementation in July 2009.

Food businesses develop food safety management programs that ensure they comply with the regulations. SFPQ audits these businesses regularly to monitor adherence. Audits are conducted by SFPQ authorised officers and third party contract auditors.

“ We have a responsibility to deal fairly, openly and honestly with all our stakeholders and to review, challenge and improve work practices and processes. ”


dairy and dairy products (dairy scheme)

meat and meat products (meat scheme)

egg and egg products (egg scheme)

SFPQ currently has 709 accreditations in the Dairy Scheme including:

• 650 producers• 43 processors • 10 other accreditations • 6 exporters.

SFPQ currently has 7084 accreditations in the Meat Scheme, including:

• 2773 transporters • 2316 field harvesters • 1366 retailers • 209 processors • 187 field depots • 172 cold stores • 35 exporters • 26 other accreditations.

SFPQ currently has 78 accreditations in the Egg Scheme, including:

• 37 producers • 18 producers (PSA*) • 16 processors • 4 producers (schools) • 3 transporters.

*PSA – preferred supplier arrangement.

food safety schemes


accrediting food businessesOnce a food safety scheme has been developed, SFPQ administers the scheme through a risk- and activity-based accreditation system. To gain accreditation, a business must develop a food safety program, which is assessed by SFPQ against legislative criteria.

The SFPQ Central Assessment Team (CAT) ensures all applications for accreditation are processed and accompanying food safety programs are reviewed. They also manage third party contract auditors.

SFPQ also conducts on-site audits, together with desk audits to determine whether the applicant’s facilities meet the requirements of the food safety scheme.

“ Once the business meets the requirements of the scheme, accreditation can be granted. ”

Accreditation is renewable every twelve months with accreditation holders being subject to a compliance audit in each accreditation period.

Compliance audits assess whether an accreditation holder is conducting activities in accordance with their food safety plan. These audits are conducted by either a SFPQ officer or a third party audit provider on behalf of SFPQ.

strengthening food safety schemes

research and development activitiesProduct integrity and food safety have never been more important, with industry being asked to perform well at all points along the food chain.

Science plays an important role in contributing to SFPQ’s decision making process and assists us to educate our key stakeholders. SFPQ has coordinated a number of surveys in 2008/09 including microbiological testing in the red meat and poultry industries.

These surveys serve as useful tools for SFPQ as it works towards educating food businesses about the importance of managing food safety risks in their business. They also provide SFPQ with the opportunity to explore new, cost effective technologies and processes that can potentially enhance product integrity and reduce production costs.


inghams advanced water treatment plantIn June 2006 Inghams Enterprises Pty Ltd (Inghams) approached SFPQ and the Australian Quarantine and Inspection Service (AQIS) regarding options for water minimisation, water reuse and water recycling at their poultry processing plant at Murrarie in Brisbane. Inghams were interested in moving towards best practice in water usage at this site, as water availability/supply was becoming a limiting factor to the expansion of production capacity at the site.

A meeting was convened and Inghams subsequently introduced a range of water minimisation and reuse options. These initiatives led to a significant reduction in the average water consumption at Murrarie (as measured in litres per bird processed) and raised water efficiency at the site to the industry best practice standard. Since receiving SFPQ approval for its advanced water treatment plan the facility has processed in excess of 120 megalitres of water and saved more than 70% of their previous water usage.

“ We bring out the best in each other and create a positive, vibrant and energised work environment. ”


field services The verification, surveillance and enforcement teams work together to ensure compliance with the regulatory framework.

Our field services team undertakes regular monitoring activities to ensure the effectiveness of food safety schemes in the meat, dairy and egg industries.

verificationOur expertise in the management and execution of monitoring functions (i.e. audit and verification) continues to be in demand. SFPQ’s verification team conducts high-risk compliance audits for our holders of accreditation (HOA). Audits are just one way that SFPQ verifies that a business’s activities comply with the Act .

The year saw 7654 applications for accreditation processed with 1189 verification audits having been conducted. As a result of the audits 71 critical corrective action requests (CARs) and 1254 major non-conformances were issued as a result.

All 71 critical CARs were addressed within 48 hours.

The team is also responsible for ensuring SFPQ’s contract auditor arrangements deliver the appropriate food safety outcomes and conducting audits for other agencies, such as AQIS.

surveillance Working largely in the field, our surveillance officers look at the systems that are in place in food businesses across the state to ensure they are effective in delivering safe and suitable food as per the Act and regulation. The surveillance team also scans the environment for new and emerging issues and how they might impact on the delivery of safe food, and makes recommendations for continual improvements.

national dairy verification projectSFPQ is playing an integral role in the development of national dairy performance indicators and the national dairy verification arrangements. SFPQ developed the national database and verification templates, in consultation with other state regulators, to underpin the new national dairy verification plan. The 2009 verification plan, that has been approved by FRSC and adopted by the dairy industry, forms the basis for the response to a number of trade related issues raised by the EU. Conducting the verification across state borders and monitoring results nationally for the first time is possible because of this adaption of existing SFPQ infrastructure.

business fined $17000A local business was fined $17000 and ordered to pay court costs in the Brisbane Magistrates Court for breaching section 79 of the Act.

The business pleaded guilty to operating without an accreditation.

SFPQ officers had regular contact with the business in an effort to encourage the business to become accredited and to comply with the requirements of SFPQ’s Meat Scheme.

A conviction was recorded.

strengthening food safety schemes


enforcementThe Enforcement Team is responsible for the investigation of more serious and complex breaches of the Act 2000 and Regulation.

The team initiates and investigates complaints and takes appropriate action in accordance with the Act. Table 1 outlines the notifications received. The team is also heavily involved in drafting prosecution briefs, reviewing enforcement options and providing advice and support to industry.

In 2008/09, the SFPQ Enforcement Unit received 303 notifications of which 185 related to accreditation holders while 118 related to premises not accredited by SFPQ.

Of these notifications 105 were investigated and found to be unsubstantiated, 13 were referred to another agency,147 resulted in immediate compliance and 27 CARs were issued. Eleven of the investigations are ongoing.

Table 1 notifications received per food safety scheme

dairy 21

meat 238

egg 40

other 4

food safety program evaluationAccreditation holders are assigned a risk classification based on the primary production activities outlined in their approved food safety program. To ensure Queensland’s food production systems meet national food safety standards, compliance with those standards is monitored through audits of approved programs.

The surveillance team selects a random sample of these audit reports to verify the efficiency and effectiveness of SFPQ’s strategies for monitoring compliance with the Act. The evaluation also identifies emerging issues and potential areas for improved performance.

Results indicate that businesses from all risk categories achieved a very high compliance rate with their approved food safety programs. SFPQ will continue to work with industry and stakeholders to develop approaches that consider food safety risks over the entire food chain, and which focus action and resources on minimising the likelihood of unsafe product reaching consumers.

“ We focus our efforts on the issues that positively impact on business performance and promote an environment of fun. ”


working with stakeholders

SFPQ continues to work with industry to develop guidelines in a range of areas to assist in the interpretation of food safety standards, thereby improving food safety outcomes and reducing the number of food safety incidents.

SFPQ is committed to transparency in its dealings with stakeholders and strives to achieve this by engaging with

our key stakeholdersstakeholder areas of interest

and engagementchannels of communication and engagement

Minister for Primary Industries, Fisheries and Rural and Regional Queensland

Key risks and opportunities, emerging strategic issues, legislation, policy development in relation to regulation of food standards

• Quarterly meetings and regular briefings with the Minister

Board Governance; key risks and opportunities; emerging strategic issues; compliance

• Quarterly meetings and ad hoc workshops; director education; briefings by management

Customers Product and service improvement; fees and charges; access and inclusion; transparency; debt

• Consumer research – surveys, focus groups and regular meetings

Employees and contractors

Workplace policies and practices; support programs such as employee assistance, child care, and health and fitness

• Business improvement workshops• Intranet, staff newsletters and internal

employee feedback processes• Focus groups

Governments and Regulators

Legislation; parliamentary committees; draft regulatory proposals, policy development in relation to regulation of food standards.

• Regular meetings and briefing sessions• Participation in government consultation

processes• Regular meetings and briefing sessions

Industry groups and associations

Food regulation; food safety schemes; and information on latest regulatory changes

• Participation in industry associations and organisations

Local and regional communities

Corporate social responsibility and corporate community investment

• Sponsorship and staff involvement in, and support of, local community projects and activities across the regions

Suppliers Procurement standards and requirements; environmental and social performance

• Supplier surveys• On-going relationship management

them at every opportunity to ensure final outcomes reflect reality and are achieved cost-effectively. SFPQ values stakeholder feedback. Table 2 provides an overview of our key stakeholders and highlights how SFPQ engages with them.

Table 2


committee memberships (internal and external committees)

SFPQ participates actively on, or provides input to, a number of internal and external committees involving federal and state food safety agencies. This approach is consistent with SFPQ’s ‘through-chain’ ethos and its commitment to a uniform national approach to food safety. It also helps avoid duplication of effort amongst the various agencies.

A range of committees and informal working groups assist SFPQ to understand issues and develop responses. Delivery of food safety outcomes consistently, within Queensland and across state boundaries, requires a high degree of cooperation and communication with other agencies, industry bodies and the community.

food safety advisory committeeFood safety controls and the delivery of safe food to the consumer is a shared responsibility between regulators, industry bodies and food businesses, both nationally and in Queensland. Stakeholder involvement in the development of regulatory provisions occurs through the Food Safety Advisory Committee (FSAC).

FSAC was established under the Act to provide advice and make recommendations to SFPQ and/or the Minister about:

• the development and making of food safety schemes or regulations

• any matter relating to SFPQ’s functions

• any matter referred by SFPQ or the Minister relating to food safety or the Act.

“ We work together to produce amazing synergies to achieve our goals and reach new heights. ”


food safety scheme sub-committeesFSAC may establish sub committees to help it perform its functions. These sector-based sub-committees play a vital role in helping SFPQ to do its job effectively and involve a cross-section of industry and government stakeholders.FSAC has utilised sub-committees for the development of the following food safety schemes:

• Dairy Scheme

• Egg Scheme

• Meat Scheme

• Seafood Scheme.

external committeesSFPQ contributes to many committees and working groups that have been established to address food safety issues and develop food safety standards within the national framework.

food standards implementation sub-committee (ISC)ISC was established to develop and oversee a consistent approach across jurisdictions to the implementation and enforcement of food regulations and standards, regardless of whether the food is sourced from domestic producers, export-licensed establishments or from imports.

SFPQ is heavily involved in the consistent implementation and enforcement of food regulation in Australia.

working with stakeholders

“ We find ways of doing things better and encourage each other to set individual priorities to achieve agreed outcomes. ”


additional information

freedom of informationThe Freedom of Information Act 1992 establishes the right of members of the community to access information contained in documents held by Queensland Government agencies, and to have documents corrected if they contain inaccurate, incomplete, out-of-date or misleading information about their personal affairs.

Access may not always be granted as requested, as some documents are exempt to protect matters of public interest and private concern.

During 2008/09 SFPQ received three new requests for documents under the Freedom of Information Act.

privacySFPQ is committed to protecting privacy in accordance with the Queensland Government Information Privacy Standard. SFPQ understands and appreciates industry and the public are concerned about their privacy and the confidentiality and security of any information provided to SFPQ. SFPQ is required to adhere to Information Standard 42 (Information Privacy) and the Information Privacy Guidelines.

In 2008/09, no complaints were received. For more information on SFPQ’s privacy statement visit http://www.safefood.qld.gov.au/privacy.

record keepingRecord keeping plays an integral role in SFPQ’s work. Hard files are maintained for all accreditations with each one having a unique number that preserves the identity and privacy of the holder of accreditation.

SFPQ’s accreditation and auditing management system, HENRI, provides live real-time record management that supports day-to-day activities and backs-up other systems while the organisation’s accounting database, Finance One, is responsible for payments, invoicing and revenue management.

consultanciesThere was no expenditure on consultancies in 2008/09.

ceo remunerationSFPQ’s CEO received a remuneration package totaling $184 512.

interpreter serviceThe Queensland Government is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse backgrounds. If you have difficulty in understanding the annual report, you can contact us on 3253 9800 or freecall 1800 300 815 and we will arrange an interpreter to effectively communicate the report to you.

overseas travelname of officer/position

destination reason for travel agency cost

contribution from other agencies or sources

Phil Pond General Manager - Strategy Policy and Development

China Present a training course - ’Developing Food Laws, Standards, Enforcement and Compliance Systems’.

Nil AusAid - $6700

Jenny Haines Team Leader - Enforcement

New Zealand Attended the New Zealand Food Safety Conference and participated in field work with the New Zealand Food Safety Authority (NZFSA).

$3681 Nil

Roger Sayce Enforcement Officer

New Zealand Attended the New Zealand Food Safety Conference and participated in field work with NZFSA.

$3681 Nil


corporate governance


Responsibility for delivering the organisation’s objectives and running the business on a day-to-day basis lies with the Chief Executive Officer and the Executive Management Group.

The Board delegates responsibility to the Chief Executive Officer for the day-to-day management of the organisation.

chief executive officerSFPQ’s Chief Executive Officer is responsible for internal control systems and for reviewing their effectiveness. Under the Act, the responsibilities of the CEO include:

• developing a risk management model that reflects best practice in regulatory bodies

• chairing meetings of the Executive Management Group

• managing SFPQ’s internal audit charter

• overseeing the external audit of financial systems

• developing a memorandum of understanding with AQIS to verify food safety audits for export-licensed premises

• facilitating ongoing staff consultation to develop operational plans and discuss performance.

executive management groupThe Executive Management Group (EMG) supports the CEO in management of SFPQ. The EMG comprises the:

• CEO

• General Manager - Corporate Services

• General Manager - Strategy, Policy and Development.

The roles and responsibilities of EMG are to:• To monitor business performance in relation to the

direction set by the Minister and the SFPQ Board and described in the strategic and business plan and KPIs.

• To monitor the performance of SFPQ against the objectives, budgets and performance criteria outlined in its strategic documents.

• To ensure SFPQ’s compliance with statutory requirements, including reporting and the Queensland Government’s planning and performance cycle (budget cycle).

• To oversee the development of risk management strategies for SFPQ and all areas of corporate governance as required by the Queensland Audit Office.

• To provide advice and recommendations to the CEO on matters raised by the Board, senior officer’s or other teams in SFPQ.

• To ensure SFPQ’s performance management system is achieving its objectives as outlined in SFPQ’s strategic documents.

corporate governance SFPQ’s formal governance structure includes a Board of Directors, the Chief Executive Officer and the Executive Management Group.

executive management

group

ceo

general manager corporate services

general manager strategy policy & development


internal audit charterSFPQ has an internal audit plan that is reviewed and approved by the Board annually.

The SFPQ Board of directors ensures internal audit procedures have due regard to the guidelines of the Queensland Treasury Audit Committee.

SFPQ’s internal audit process is provided by an independent auditor, the outcomes of which are addressed by EMG.

“ SFPQ aspires to the highest standards of ethical conduct: doing what we say; reporting results with accuracy and transparency; and maintaining full compliance with the laws, rules and regulations that govern the organisation’s business. ”

corporate governance


The Corporate Services Team develops, manages and advises on systems, infrastructure, policies and standards and provides services to SFPQ in the areas of finance and administration, human resources, innovation, and communications.

The team comprises five groups:• Client Contact Centre

• Communications

• Human Resources

• Innovation

• Finance.

client contact centreThe Client Contact Centre coordinates all incoming correspondence (phone, emails, faxes and letters) to SFPQ. It receives and manages over 6000 calls a year from existing accreditation holders, those wanting to be accredited and consumers.

Examples of enquiries received during a typical week include:

• business operators seeking information on how to become accredited

• accreditation holders finalising payments for accreditation fees

• members of the public reporting a food production business with unhygienic food practices

• enquiries from the public regarding food safety issues.

The team is closely integrated with the core functions of the organisation. It monitors its service on an ongoing basis and resolves many inquiries at the first point of contact. When more specialised support is required, the team identifies the most appropriate personnel to answer the query.

“ One of the key responsibilities of the team is to manage the annual renewal process for accreditation holders. The team coordinates, collates and distributes over 7500 accreditation renewals each year ”

As part of the ongoing commitment to organisational efficiencies, SFPQ modified its system of renewal in 2008/09 so that HENRI, the organisation’s accreditation database, automatically generates renewal notices. This initiative has led to a significant improvement in operational efficiency at the same time as providing a better quality service for our accreditation holders.

corporate services

client contact centre

human resources

communications

finance

innovation

corporate services

team


communicationsThe Communications Team ensures all SFPQ activities are reported on and publicised accurately, authoritatively, appropriately and in a timely manner to maintain SFPQ’s reputation as a trusted source of advice and information on food safety issues.

The team has developed many direct communication materials (e.g. newsletters, fact sheets) for electronic and paper-based distribution. Topics covered included the dangers of Listeria, safe food handling practices in the kitchen and the importance of food safety during pregnancy.

The team also issued many media releases on various regulatory and enforcement issues and in response to local and national incidents to ensure the public is kept informed. Examples of topics addressed by such press releases included the crackdown on unaccredited egg operators in Queensland, issues related to food-borne pathogens, information on the safe handling of poultry and red meat, and general advice on food safety programs.

Recognition of SFPQ’s contribution to the discipline of food safety continues to grow. This is reflected not only in the well-attended conferences and events which SFPQ sponsors or contributes to, but also by an increase in the number of invitations SFPQ receives to participate in seminars and training courses, conferences and meetings with other organisations. Some of the events which SFPQ provided sponsorship for during the year included:

• Queensland Dairyfarmers’ Organisation/ Dairy Industry Association of Australia Joint Conference

• Australian Meat Industry Council Meat Industry Awards Dinner

• Beef Conference and Expo 2009

• Sausage King Competition.

benchmark butcher’s challengeOne of the projects the team has been involved in coordinating is the Benchmark Butcher’s Challenge (BBC). The BBC is designed to help butchers increase professionalism, productivity and profitability as well as raise the bar in terms of innovation, quality and best practice within their shops.

The BBC is an initiative of SFPQ and a number of holders of accreditation. It is based on monitoring compliance through evidence-based methods as an alternative to auditing, underpinned by the mantra of ‘keep it clean, cold and moving’.

The aim of the BBC is to bring together proactive butchers who wish to access business tools designed to develop best practice in the industry. Management statements are used as the key food safety management tool as opposed to the previous approach that required a food safety program.

“ Our information is easily accessible, relevant and useful, ensuring the public and consumers continue to be confident in the food produced within Queensland, interstate or imported from overseas. ”

corporate services


national food safety weekConsumer awareness continues to be an important element in food safety. Each year SFPQ participates in National Food Safety Week. Coordinated by the Food Safety Information Council, the week serves to highlight and reinforce food safety messages. The theme for 2008 was, Food adventures – new foods, new techniques. It focused on current food safety issues in light of Australians’ adventurous spirit in adopting a wide array of foods into their daily diets, and a number of new cooking techniques that are becoming mainstream. For example, we are eating more food that is raw (salads and sushi) or lightly cooked (stir fries). Foods which aren’t cooked before eating are riskier because if they are contaminated there is no heat to kill the bacteria. SFPQ worked with a number of organisations, including local government, schools and businesses to promote the campaign and help reduce food poisoning.

stakeholder forumOn 11 June 2009, SFPQ, in conjunction with Queensland Health and QPI&F Fisheries, held the inaugural Stakeholder Forum in Brisbane which was attended by over 100 people. The forum outlined current issues in food regulation reform and discussed ways to potentially improve the consistency of implementation of regulatory food safety standards. Key outcomes from the meeting included that SFPQ will consider strategies for rationalising audit requirements such as exploring the potential for multiple audits (commercial and regulatory) to be conducted by the same auditor, and by reducing audit frequency. It was also decided to explore alternative monitoring mechanisms.

“ We focus our efforts on building strong relationships with our key stakeholders. We do this by regularly communicating with them. ”


human resourcesHaving the right internal culture, values and behaviours is important for an organisation.

Our Managing for Personal Growth (MPG) program provides two-way discussions on growth and development. The program is designed to ensure staff skills are aligned with their work and to consider future requirements future options as appropriate. The MPG involves a range of training and development activities.

Major activities in 2008/09 included:

• enhancement of SFPQ’s leadership capabilities to ensure alignment with future business directions

• a trial of a health and well-being program

• development of the Environmentally Friendly Safe Fooders Program designed to help reduce our impact on the environment by contributing to an improvement in the environmental performance of our agency.

workplace health and safety SFPQ continues to demonstrate its commitment to workplace health and safety initiatives. A number of workplace health and safety policies have been introduced to help develop a consistent approach across the organisation with these being underpinned by a comprehensive program of audits, inspections, risk assessments and training.

All SFPQ employees are provided with training in how to perform their work in a manner that does not pose a risk to their own or others’ health and safety. New employees are informed about the Act through the staff induction program while SFPQ’s workplace health and safety officers and first aid officers are provided with the necessary training to ensure they carry out their duties as required by the Act and SFPQ.

The organisation is committed to ensuring healthy and safe working conditions for employees, contract staff and visitors, and has introduced a number of policies that promote a healthy lifestyle.

sfpq’s commitment to the environment

We are committed to reducing our impact on the environment by improving the environmental performance of our agency. We strive to conserve resources, reduce pollution and increase staff awareness of environmental issues.

Our staff-led ‘green group’ has spearheaded a range of initiatives, including:

• introducing recycling facilities so that our offices now recycle paper, cardboard, plastic and cans

• implementing the use of 100% recycled paper and stationery

• a campaign to encourage staff to switch off PCs, monitors, printers and lights to help reduce our energy consumption

• using glasses and mugs instead of disposable cups

• recycling old equipment and replacing it with more energy efficient models

• creating an intranet page of ‘top tips’ for becoming greener at home and links to environmental web sites

• ensuring staff inductions include environmental awareness.

corporate services


innovation The integration of information and communications technology (ICT) systems is critical to SFPQ’s ability to effectively manage the data requirements of the businesses we accredit. This year we:

• integrated two of our key support systems: HENRI and Finance 1. This has led to significant systems benefits for the processing of renewals, improved customer service and provided a platform for future integration

• implemented Microsoft Office SharePoint services to facilitate the introduction of interactive workspaces

• developed next generation operating systems for ourselves and our clients using interactive workspaces that allow SFPQ to provide an integrated service to our client-base without increasing staff or placing an additional burden on the budget

• upgraded and expanded file servers, host systems and telephone systems to improve their serviceability and cater for anticipated continued growth in the number of data to be stored

• developed electronic systems to allow staff to lodge travel requests and purchase requisitions, online, thereby reducing the processing load on head office

• improved HENRI’s functionality to ensure it provides comprehensive information relating to holders of accreditation and audits. Information based on audit results is available, allowing trends to be identified.

financeThe Finance team provides the organisation with an efficient, effective financial management service to assist it to achieve its strategic goals. The team monitors SFPQ’s compliance with accounting standards, assists in the coordination of the annual report and also undertakes accounts payable and receivable functions.

The team works closely with its colleagues across the organisation to ensure systems and infrastructure meet the organisation’s evolving business and strategic need.

accreditation registerSFPQ created a publicly available database of registered holders of accreditation. It provides consumers with access to information about which businesses are currently operating with an SFPQ accreditation. Access to this information enables consumers to make more informed choices about who they buy their product from. The register was established in line with SFPQ’s corporate communication strategies of becoming a transparent regulatory authority and raising our public profile, at the same time as contributing to the promotion of SFPQ as a leader in food safety.

“ SFPQ recognises that its employees are its most important asset and is committed to ensuring all staff have the appropriate skills, knowledge, competence and aptitude to undertake their roles effectively. ”


accounts 2008/09


1

Safe Food Production Queensland Income Statement for the year ended 30 June 2009

2009 2008 Notes

$

$

Income

Revenue

User charges 2(a) 3,782,561 3,777,027

Government contributions 2(a) 1,900,000 1,900,000

Interest 2(a) 231,342 310,890

Other revenue 2(a) 117,906 106,564

Gains

Gain on sale of property, plant & equipment 2(a) - 495

Total income 6,031,809 6,094,976

Expenses

Employee expenses 2(c) 3,536,054 3,135,273

Supplies and services 2(b) 1,920,653 2,019,252

Depreciation and amortisation 2(b) 131,104 128,955

Other expenses 2(b) 545,325 528,558

Total expenses 6,133,136 5,812,038

Operating (loss) surplus (101,327) 282,938

The accompanying notes form part of these financial statements.


2

Safe Food Production Queensland Balance Sheet as at 30 June 2009

2009 2008 Notes

$

$

ASSETS

Current assets

Cash and cash equivalents 3 4,455,821 4,665,670

Receivables 4 279,593 340,951

Other 5 140,848 126,076

Total current assets 4,876,262 5,132,697

Non-current assets

Intangible assets 6 233,907 151,453

Property, plant and equipment 7 122,601 134,280

Total non-current assets 356,508 285,733

TOTAL ASSETS 5,232,770 5,418,430

LIABILITIES

Current liabilities

Payables 8 317,110 438,758

Accrued employee benefits 9 260,547 264,627

Other 10 1,167,369 1,125,974

Total current liabilities 1,745,026 1,829,359

TOTAL LIABILITIES 1,745,026 1,829,359

NET ASSETS 3,487,744 3,589,071

EQUITY

Retained surplus 3,487,744 3,589,071

TOTAL EQUITY 3,487,744 3,589,071



3

Safe Food Production Queensland

Statement of Changes in Equity for the year ended 30 June 2009

2009 2008 Notes

$

$

Retained Surplus

Balance 1 July 3,589,071 3,306,133

Operating (loss) Surplus (101,327) 282,938

Balance 30 June 3,487,744 3,589,071



4


Cash Flow Statement for the year ended 30 June 2009

2009 2008 Notes

$

$

Cash Flows from Operating Activities

Inflows

User charges

3,885,312

3,777,492

Government contributions

1,900,000

1,900,000

GST input tax credits from ATO

306,746

287,863

GST collected from customers

376,080

354,328

Interest

231,342

310,890

Other

117,906

106,565

6,817,386

6,737,138

Outflows

Employee expenses (3,540,134) (3,153,913)

Supplies & Services (2,058,630) (1,990,867)

GST paid to suppliers (315,091) (301,504)

GST remitted to the ATO (384,741) (292,829)

Other (526,760) (512,656)

(6,825,356) (6,251,769)

Net cash provided by operating activities 11 (7,970) 485,369

Cash Flows from Investing Activities

Inflows

Proceeds from sale of property, plant and equipment -

20,455

Outflows

Payments for property, plant and equipment (35,692) (86,518)

Payments for intangibles (166,187) (141,921)

Net cash used in investing activities (201,879) (207,984)

Net increase in cash held (209,849) 277,385

Cash at beginning of financial year 4,665,670 4,388,285

Cash at end of financial year 3 4,455,821 4,665,670



6


Notes to and forming part of the financial statements 2008-09

Objectives and Principal Activities

Safe Food Production Queensland (the Authority) was established as a Statutory Body under the Food Production Safety Act 2001.

The objective of Safe Food Production Queensland is to work in partnership with industry and with its co-regulatory partners Queensland Health, Department of Primary Industries and Fisheries and Food Standards Australia and New Zealand to ensure Queensland's food production systems comply with national food safety standards and deliver safe and suitable food.

Note 1 Summary of Significant Accounting Policies

(a) Basis of Accounting

The financial statements have been prepared in accordance with Australian Accounting Standards. In addition, the financial statements comply with the Treasurer's Minimum Reporting Requirements for the year ending 30 June 2009, and other authoritative pronouncements. The financial statements have been prepared in accordance with Australian Equivalents to International Financial Reporting Standards (AEIFRS) where appropriate.

These financial statements constitute a general purpose financial report.

Except where stated, the historical cost convention is used.

(b) User Charges and Fees

User charges and fees, except for accreditation fees, are recognised in full as revenues when invoices for the related services are issued. Accreditation fees are recognised over the calendar year.

(c) Grants

The government grant has been recognised as operating income on receipt over the financial year, as per the funding arrangement. It has been disclosed in the Income Statement as Government Contributions.

(d) Cash and Cash Equivalents

For the purposes of the Balance Sheet and Cash Flow Statement, cash assets include all cash and cheques receipted but not banked as at 30 June as well as deposits at call with financial institutions. It also includes investments with short periods to maturity that are readily convertible to cash on hand at Safe Food Production Queensland’s option and that are subject to a low risk of changes in value.

(e) Receivables

Trade debtors are recognised at the nominal amounts due at the time of sale or service delivery, with settlement being generally required within 30 days from the invoice date.

The collectability of receivables is assessed periodically with provision being made for impairment. Bad debts are written off in the period in which they are recognised. All known bad debts were written off as at 30 June 2009.

(f) Acquisition of Assets

Actual cost is used for the initial recording of all acquisitions of assets controlled and administered by Safe Food Production Queensland.

Cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use, including architects' fees and engineering design fees. However, any training costs are expensed as incurred.

Assets acquired at no cost or for nominal considerations are recognised at their fair value at date of acquisition in accordance with AASB 116 Property, Plant and Equipment.

46 safe food production queensland 7



(g) Property, Plant and Equipment

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

Building and Infrastructure $10,000

Land $1

Other (including heritage and cultural) $5,000

Items with a lesser value are expensed in the year of acquisition in accordance with Queensland Treasury's Non-Current Asset Accounting Policies for the Queensland Public Sector.

(h) Intangibles

Intangible assets with a cost or other value greater than $100,000 are recognised in the financial statements, items with a lesser value being expensed. Each intangible asset is amortised over its estimated useful life to the Authority, less any anticipated residual value. The residual value is zero for all intangible assets.

Purchased Software

The purchase cost of software has been capitalised and is being amortised on a straight-line basis over the period of the expected benefit to Safe Food Production Queensland, namely 3 years.

Internally Generated Software

Expenditure on research activities relating to internally-generated intangible assets is recognised as an expense in the year in which it is incurred.

Costs associated with the development of computer software have been capitalised and are amortised on a straight-line basis over the period of expected benefit to Safe Food Production Queensland, namely 3 years.

(i) Amortisation and Depreciation of Intangibles, Property, Plant and Equipment

Depreciation on equipment and motor vehicles, and amortisation on computer software is calculated on a straight-line basis so as to write-off the net cost or revalued amount of each depreciable asset, less its estimated residual value, progressively over its estimated useful life to Safe Food Production Queensland.

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.

Depreciation rates used are listed below and are consistent with the prior year unless otherwise stated:

Class Rate %

Computer Hardware 33.3

Motor Vehicles 20.0

Other Plant & Equipment 20.0

Leasehold Improvements 14.0

Computer Software

Software Purchased 33.3

Software Internally Generated 33.3

(j) Impairment of Non-current Assets

All non-current physical and intangible assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, the Authority determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss.

The asset's recoverable amount is determined as the higher of the asset's fair value less costs to sell and depreciated replacement cost.

An impairment loss is recognised immediately in the Income Statement, unless the asset is carried at a revalued amount.

(k) Other Financial Assets

Safe Food Queensland does not enter transactions for speculative purposes, nor for hedging. It holds no financial assets classified as at fair value through profit and loss or classified as held to maturity.

(l) Payables

Payables are recognised for amounts payable in the future for goods and services received, whether or not billed to Safe Food Production Queensland. Creditors are generally unsecured, not subject to interest charges and are normally settled within 30 days of invoice receipt.

8

Safe Food Production Queensland Notes to and forming part of the financial statements 2008-09

(m) Employee Benefits

Wages, salaries, recreation leave and sick leave

Wages, salaries and annual leave due but unpaid at reporting date are recognised in the Balance Sheet at the remuneration rates expected to apply at the time of settlement and include related on-costs.

Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised.

As sick leave is non-vesting, an expense is recognised for this leave as it is taken.

Annual leave

Annual leave entitlements are accrued on a pro rata basis in respect of services provided by employees up to balance date, having regard to future rates of pay and on-costs. Annual leave entitlements are provided for at their nominal value.

Long service leave

Under the Queensland Government's long service leave scheme, a levy is made on Safe Food Production Queensland to cover this cost. Levies are expensed in the period in which they are paid or payable. Amounts paid to employees for long service leave are claimed from the scheme as and when the 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 AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Superannuation

Employer superannuation contributions are paid to Qsuper, the superannuation plan for Queensland Government employees, at rates determined by the Treasurer on the advice of the State Actuary. Contributions are expensed in the period in which they are paid or payable. Safe Food Production Queensland's obligation is limited to its contribution to QSuper.

Therefore, no liability is recognised for accruing superannuation benefits in the Authority's financial statements, the liability being held on a whole-of-Government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Executive Remuneration

The executive remuneration disclosures in the employee expenses in the financial statements where applicable include:

- the aggregate remuneration of all senior executive officers (including the Chief Executive Officer) whose remuneration for the financial year is $100,000 or more; and

- the number of senior executives whose total remuneration for the financial year falls within each successive $20,000 band, commencing at $100,000

The remuneration disclosed is all remuneration received or receivable, directly or indirectly, from the entity or any related party in connection with the management of affairs of the entity, whether as an executive or otherwise. For this purpose, remuneration includes:

- wages and salaries;

- accrued leave (that is, increase/ decrease in the amount of annual and long service leave owed to an executive, inclusive of any increase in the value of leave balances as result of salary rate increases or the like);

- performance pay received or due and receivable in relation to the financial year, provided that a liability exists (namely a determination has been made prior to the financial statements being signed), and can be reliably measured even though the payment may not have been made during the financial year;

- accrued superannuation (being the value of all employer superannuation contributions during the financial year, both paid and payable as at 30th June).

The disclosures apply to all senior executives appointed under the Public Service Act 2008 and classified as SES1 and above, with remuneration above $100,000 in the financial year. "Remuneration" means any money, consideration or benefit, but excludes amounts:

- paid to an executive by an entity or its subsidiary where the person worked during the financial year wholly or mainly outside Australia during the time the person was so employed; or

- in payment or reimbursement of out-of-pocket expenses incurred for the benefit of the entity or any of its subsidiaries.

In addition, separate disclosure of separation and redundancy/ termination benefit payments is included.

47annual report 2008/09 8

Safe Food Production Queensland Notes to and forming part of the financial statements 2008-09

(m) Employee Benefits

Wages, salaries, recreation leave and sick leave

Wages, salaries and annual leave due but unpaid at reporting date are recognised in the Balance Sheet at the remuneration rates expected to apply at the time of settlement and include related on-costs.

Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised.

As sick leave is non-vesting, an expense is recognised for this leave as it is taken.

Annual leave

Annual leave entitlements are accrued on a pro rata basis in respect of services provided by employees up to balance date, having regard to future rates of pay and on-costs. Annual leave entitlements are provided for at their nominal value.

Long service leave

Under the Queensland Government's long service leave scheme, a levy is made on Safe Food Production Queensland to cover this cost. Levies are expensed in the period in which they are paid or payable. Amounts paid to employees for long service leave are claimed from the scheme as and when the 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 AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Superannuation

Employer superannuation contributions are paid to Qsuper, the superannuation plan for Queensland Government employees, at rates determined by the Treasurer on the advice of the State Actuary. Contributions are expensed in the period in which they are paid or payable. Safe Food Production Queensland's obligation is limited to its contribution to QSuper.

Therefore, no liability is recognised for accruing superannuation benefits in the Authority's financial statements, the liability being held on a whole-of-Government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Executive Remuneration

The executive remuneration disclosures in the employee expenses in the financial statements where applicable include:

- the aggregate remuneration of all senior executive officers (including the Chief Executive Officer) whose remuneration for the financial year is $100,000 or more; and

- the number of senior executives whose total remuneration for the financial year falls within each successive $20,000 band, commencing at $100,000

The remuneration disclosed is all remuneration received or receivable, directly or indirectly, from the entity or any related party in connection with the management of affairs of the entity, whether as an executive or otherwise. For this purpose, remuneration includes:

- wages and salaries;

- accrued leave (that is, increase/ decrease in the amount of annual and long service leave owed to an executive, inclusive of any increase in the value of leave balances as result of salary rate increases or the like);

- performance pay received or due and receivable in relation to the financial year, provided that a liability exists (namely a determination has been made prior to the financial statements being signed), and can be reliably measured even though the payment may not have been made during the financial year;

- accrued superannuation (being the value of all employer superannuation contributions during the financial year, both paid and payable as at 30th June).

The disclosures apply to all senior executives appointed under the Public Service Act 2008 and classified as SES1 and above, with remuneration above $100,000 in the financial year. "Remuneration" means any money, consideration or benefit, but excludes amounts:

- paid to an executive by an entity or its subsidiary where the person worked during the financial year wholly or mainly outside Australia during the time the person was so employed; or

- in payment or reimbursement of out-of-pocket expenses incurred for the benefit of the entity or any of its subsidiaries.

In addition, separate disclosure of separation and redundancy/ termination benefit payments is included.


9



(n) Taxation

The activities of the Statutory Body are exempt from Commonwealth taxation except for Fringe Benefits Tax (FBT) 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.

(o) Issuance of Financial Statements

The financial statements are authorised for issue by the Chief Executive Officer and Chair of the Board of Safe Food Production Queensland at the signing of the Management Certificate.

(p) Judgement and Assumptions

Safe Food Production Queensland has made no judgements or assessments which may cause a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

(q) Comparatives

Comparative information has been restated where necessary to be consistent with disclosures in the currrent reporting period.

(r) Insurance

Safe Food Production Queensland's non- current physical assets and other risk are insured through the Queensland Government Insurance Fund, premiums being paid on a risk assessment basis. In addition, the Safe Food Production Queensland pays premiums to WorkCover Queensland in respect of its obligation for employee compensation.

(s) New and Revised Accounting Standards

No Australian accounting standards and interpretations issued or amended and applicable for the first time in the 2008-09 financial year have an effect on Safe Food Production Queensland. Also, Safe Food Production Queensland has not voluntarily changed any of its accounting policies.

Safe Food Production Queensland is not permitted to early adopt a new accounting standard ahead of the specified commencement date unless approval is obtained from the Treasury Department. Consequently, the Authority has not applied any Australian accounting standards and interpretations that have been issued but are not yet effective. Safe Food Production Queensland will apply these standards and interpretations in accordance with their respective commencement dates.

At the date of authorisation of the financial report, a number of new or amended Australian accounting standards with future commencement dates will have an impact on Safe Food Production Queensland. Details of such impacts are set out below.

AASB 101 Presentation of Financial Statements has been revised, but such revisions will not impact on the Authority until 2009-10. This revised standard does not have measurement or recognition implications. Instead, there will be significant changes to the presentation of the Authority's overall financial performance and position, particularly the content of the Statement of Changes in Equity, and presentation of a new Statement of Comprehensive Income (which will include certain items currently disclosed in the Statement of Changes in Equity, in line with the definition of 'comprehensive income' in the revised AASB 101).

All other Australian accounting standards and interpretations with future commencement dates are either not applicable to Safe Food Production Queensland, or have no material impact on the Authority.


10



Note 2 Income Statement

(a) Income

2009 2008

$ $

User charges

Accreditation fees 2,386,474 2,290,340

Application fees 148,248 135,619

Audit fees 1,113,390 1,173,571

Fee for service income 134,449 177,497

3,782,561 3,777,027

Government contributions

Department of Primary Industries & Fisheries share funding arrangement 1,900,000 1,900,000

Interest 231,342 310,890

Other revenue 117,906 106,564

117,906 106,564

Gain on sale of property, plant & equipment

Net gain on disposal of non-current assets

Consideration on disposal - 20,455

Written down value at date of disposal - (19,960)

Net gain on disposal - 495

Total income 6,031,809 6,094,976


11



Note 2 Income Statement

(b) Expenses 2009 2008

$ $

The surplus for the year includes the following specific expenses.

Depreciation and Amortisation

Depreciation

Plant and equipment

47,371 44,892

Amortisation

Computer Software 83,733 84,063

Total Depreciation & Amortisation 131,104 128,955

Supplies & Services

Administration Expenses 163,808 173,602

Advertising & Conference Costs 108,916 163,010

Communication Costs 74,148 78,978

Computer Costs 262,162 338,732

Contracting, Professional Services & Temps 957,814 900,994

Legal Costs 14,939 19,664

Motor Vehicle Costs 76,551 72,872

Property, Plant & Equipment Costs 60,447 55,248

Travel Costs 196,912 209,420

Other 4,956 6,732

1,920,653 2,019,252

Other Expenses

Operating Lease Rentals 509,395 496,368

Bad / Doubtful Debts Written off 11,370 8,490

Auditors’ remuneration

Queensland Audit Office 15,760 14,500

– external audit services *

Barr Group Pty Ltd 8,800 9,200

- internal audit services

24,560 23,700

Total Other Expenses 545,325 528,558

*Total external audit fees relating to the 2008/2009 financial year are estimated to be $15,600 (2007/2008: $14,340). There are no non-audit services included in this amount.

2009 2008

(c) Employee Expenses $ $

The Authority had 38 full time equivalent employees at 30 June 2009 (38 at 30 June 2008)

Wages and salaries 2,915,925 2,615,196

Employer superannuation contributions 355,692 307,238

Workers compensation 6,203 7,323

Workers compensation recovered (13,342) -

Other 271,576 205,516

Total Employee Expenses 3,536,054 3,135,273


12



2009 2008

$ $

Note 3 Cash and cash equivalents

Cash on hand 500 500

Cash at bank 274,895 180,827

Deposits at call 4,180,426 4,484,343

4,455,821 4,665,670

Note 4 Receivables

Trade debtors 291,626 355,134

Less provision for impaired debts (19,233) (22,183)

272,393 332,951

Other debtors 7,200 8,000

279,593 340,951

Note 5 Other current assets

Prepayments 140,848 126,076

Note 6 Intangible assets

Software Purchased:

At cost 757,914 683,015

Less: Accumulated amortisation (661,857) (640,170)

96,057 42,845

Software Internally Generated:

At cost 389,097 297,810

Less: Accumulated amortisation (251,247) (189,202)

137,850 108,608

Total 233,907 151,453

Reconciliation

Carrying amount at start of year 151,453 93,595

Additions 166,187 141,921

Amortisation (83,733) (84,063)

Carrying amount at end of year 233,907 151,453


13



2009 2008

Note 7 Property, plant and equipment

Plant & Equipment

At cost 263,439 227,747

Less accumulated depreciation (140,838) (93,467)

122,601 134,280

Reconciliation

Plant and equipment

Carrying amount at start of year 134,280 112,613

Additions 35,692 86,518

Disposals - (19,959)

Depreciation (47,371) (44,892)

Carrying Amount at end of year 122,601 134,280

Note 8 Payables

Trade creditors 301,057 406,042

GST payable 46,402 104,302

GST receivable (37,090) (77,988)

Other creditors 6,741 6,402

317,110 438,758

Note 9 Accrued employee benefits

- Annual leave 260,547 264,627

260,547 264,627

15

Operating leases are entered into as a means of acquiring access to office accommodation and obtaining the use of motor vehicles and office equipment. Lease payments are generally fixed, except for the Helen St office lease, which contains annual escalation clauses.



Note 13 Financial Instruments

(a) Financial Instruments

Categorisation of Financial Instruments

Safe Food Production Queensland has categorised the financial assets and financial liabilities held as:

Category Note 2009 2008

Financial Assets


Receivables 4 279,593 340,951

Financial Liabilities

Payables 8 317,110 438,758

Credit Risk

The maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is represented by the carrying amount of these assets as indicated in the Balance Sheet. There are no concentrations of credit risk.

Liquidity Risk

Safe Food Production Queensland is exposed to liquidity risk through its trading in the normal course of business. Liquidity risk is managed on an ongoing basis by ensuring funds are readily available for day to day operations. This is achieved by investing available cash funds in the Safe Food Production Queensland bank account or at call deposit accounts.

The following table sets out the liquidity risk of financial liabilities. It represents the contractual maturity of financial liabilities, calculated based on cash flows relating to the repayment of the principal amount outstanding at balance date.

2009 Payable in

<1 year 1 -5 years > 5 years Total


Payables 317,110 - - 317,110

Total 317,110 - - 317,110

2008 Payable in



Payables 438,758 - - 438,758

Total 438,758 - - 438,758


14



2009 2008

Note 10 Other Liabilities $ $

Unearned revenue - accreditation fees (note 1b) 1,167,369 1,125,974

1,167,369 1,125,974

Note 11 Cash flow statement

Reconciliation of Operating (Loss) Surplus to Net Cash from Operating Activities

Operating (loss) surplus (101,327) 282,938

Non-cash items

Depreciation & amortisation expense 131,104 128,955

Gain on sale of plant & equipment - (495)

Change in assets and liabilities

(Increase) / decrease in receivables 61,358 (38,830)

(Increase) / decrease in other assets (14,772) (52,497)

Increase / (decrease) in payables (121,648) 96,373

Increase / (decrease) in accrued employee benefits (4,080) 29,632

Increase / (decrease) in other liabilities 41,395 39,293

Net cash from operating activities (7,970) 485,369

Note 12 Commitments

Capital expenditure commitments

There are no capital expenditure commitments for Safe Food Production Queensland at 30 June 2009 (no commitments at 30 June 2008).

Finance lease commitments

There are no finance lease commitments for Safe Food Production Queensland at 30 June 2009 (no commitments at 30 June 2008).

Operating commitments

Lease commitments

At 30 June, Safe Food Production Queensland had the following operating lease commitments inclusive of GST:

2009 2008

$ $

Motor vehicles 236,295 231,259

Rented premises 347,326 577,141

Photocopiers / Printers / Communication 68,562 19,694

652,183 828,094

Outstanding lease commitments are due for payment as follows:

· within one year 535,022 487,551

· one to five years 117,161 340,543

· over five years - -

652,183 828,094

15









Financial Assets


Receivables 4 279,593 340,951


Payables 8 317,110 438,758

Credit Risk


Liquidity Risk



2009 Payable in



Payables 317,110 - - 317,110

Total 317,110 - - 317,110

2008 Payable in



Payables 438,758 - - 438,758

Total 438,758 - - 438,758

54 safe food production queensland 15









Financial Assets


Receivables 4 279,593 340,951


Payables 8 317,110 438,758

Credit Risk


Liquidity Risk



2009 Payable in



Payables 317,110 - - 317,110

Total 317,110 - - 317,110

2008 Payable in



Payables 438,758 - - 438,758

Total 438,758 - - 438,758










we believe in ourselves and we deliver, share and celebrate success.

contact us Safe Food Production Queensland ABN 94 790 873 787

PO Box 440 Spring Hill Qld 4004

freecall 1800 300 815 (Qld only) t (07) 3253 9800 f (07) 3253 9810

e [email protected] w www.safefood.qld.gov.au

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