Final Report1 July 2011 – 31 January 2013
Urban Land Development Authority
Final Report 1 July 2011 – 31 January 2013 1
Urban Land Development Authority
Annual Report2011-2012
Urban Land Development Authority I Final Report
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International Standard Serial Number (ISNN)
ISSN - 1839-4493
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Contents
Compliance letter ....................................................................................................................................................................... 2
About this report ....................................................................................................................................................................... 3
Message from the former CEO ................................................................................................................................................... 4
About the ULDA ......................................................................................................................................................................... 5
Planning ................................................................................................................................................................................... 6
Development assessment .......................................................................................................................................................... 7
Community engagement ............................................................................................................................................................ 7
Residential development ........................................................................................................................................................... 8
Urban development .................................................................................................................................................................. 11
ULDA Board ...............................................................................................................................................................................12
Executive Management Team ...................................................................................................................................................14
ULDA staffing ............................................................................................................................................................................15
Governance ...............................................................................................................................................................................16
Financial summary ....................................................................................................................................................................17
Financial statements .................................................................................................................................................................21
Compliance checklist ............................................................................................................................................................... 62
Final Report 1 July 2011 – 31 January 2013 1
Urban Land Development Authority I Final Report
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About this report
This is the Final Report of the Urban Land Development Authority (ULDA). As part of machinery-of-government changes implemented on 1 February 2013, the ULDA was abolished and the ULDA’s functions were transitioned into Economic Development Queensland, which is a commercialised business unit of the Department of State Development, Infrastructure and Planning.
This report refers to the activities and performance of the ULDA for the financial year 1 July 2011 to 30 June 2012 and for the last seven months of the ULDA until 31 January 2013.
The ULDA Final Report has been developed for the Deputy Premier and Minister for State Development, Infrastructure and Planning, the Honourable Jeff Seeney MP and ULDA stakeholders including builder partners, local government, industry and the community.
This report contains financial statements and a summary of the ULDA’s financial and non-financial performance for the reporting period 1 July 2011 – 31 January 2013, in line with the targets and objectives outlined in the Financial and Performance Management Standard 2009.
It also complies with the ULDA’s legislative reporting requirements under the Financial Accountability Act 2009, the Urban Land Development Authority Act 2007 and the Queensland Government’s Annual Report Requirements for Queensland Government Agencies.
Final Report 1 July 2011 – 31 January 2013 3
Urban Land Development Authority I Final Report
Message from the former Chief Executive Officer
This is the Final Report of the Urban Land Development Authority (ULDA), encompassing operations for the last 19 months as a statutory authority.
During this period, the ULDA oversaw the successful implementation of initiatives to provide innovative, affordable and sustainable housing solutions in communities across Queensland, the continued delivery of quality urban and residential developments and the completion of a range of planning documents to facilitate these developments.
Initiatives implemented by the ULDA included the My Place program which assisted key workers in competitive housing markets to buy their own home, the development of innovative housing products such as the zero net emission home at Fitzgibbon Chase and the design and introduction of small lot affordable housing.
This period also saw the completion of significant planning work including the finalisation of development schemes for the four greenfield Urban Development Areas (UDA) in Yarrabilba, Greater Flagstone, Ripley Valley and Caloundra South. These areas are some of the major growth centres in South East Queensland which will ultimately provide housing for up to 340,000 people over the next 30 - 40 years.
A suite of guidelines and practice notes were completed, outlining the standards for development in UDAs and covering a range of design areas including park planning and design, engineering standards, environmental sustainability and non-resident worker accommodation. These documents have been created to assist development within UDAs, with the aim to ultimately provide guidance to local government and the broader development industry.
Development continues across 14 UDAs with high rise developments completed in Bowen Hills and Northshore Hamilton, over 350 homes built in Fitzgibbon Chase, Gladstone and Mackay, and the construction of the first homes in the major greenfield UDAs, including Caloundra South and Greater Flagstone.
Development in residential projects in the resource communities of Blackwater and Moranbah is well advanced following the accelerated release of land into these constrained markets to improve land availability and housing affordability. Development in Roma is also progressing well with the first residents already moved into their new homes.
As part of the government’s commitment to re-empower local government, in 2012 the ULDA worked with Brisbane City Council to successfully delegate development assessment functions to council in the four Brisbane-based UDAs at Bowen Hills, Northshore Hamilton, Fitzgibbon and Woolloongabba.
The last six months of the ULDA was a period of change for the authority as it prepared to transition into the Department of State Development, Infrastructure and Planning.
During this time the ULDA continued to support the government’s objectives for the community including growing a four pillar economy by undertaking and facilitating development in declared UDAs, lowering the cost of living through the delivery of sustainable and affordable housing, and delivering better infrastructure and using better planning through the preparation of development schemes for declared UDAs.
I would like to thank all involved with the ULDA over the five years of its existence. The achievements of the ULDA in that time are a tribute to the board and employees. In particular Paul Eagles, the Chief Executive Officer until December 2012, deserves special mention for guiding, directing and inspiring the team.
Chris MillsFormer Chief Executive Officer
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About the ULDA
The ULDA was established under the Urban Land Development Authority Act 2007 as a statutory authority responsible for the facilitation of:
• the availability of land for urban purposes
• the provision of a range of housing options to address diverse community needs
• the provision of infrastructure for urban purposes
• planning principles that give effect to ecological sustainability and best practice urban design
• the provision of an ongoing availability of affordable housing options for low to moderate income households.
The ULDA was the plan maker, development assessment authority, and in some cases development manager for 17 declared Urban Development Areas (UDAs) across Queensland.
During the five years the ULDA was in operation the scope and focus of the organisation expanded from the initial Brisbane based UDAs that were declared in Bowen Hills, Northshore Hamilton and Fitzgibbon in 2008 and later Woolloongabba, to include UDAs in:
• regional centres; Gladstone (Clinton, Tannum Sands and Toolooa), Townsville (Oonoonba), Rockhampton and Mackay (Andergrove)
• resource communities; Moranbah, Blackwater and Roma
• strategic greenfield areas; Ripley Valley, Greater Flagstone, Yarrabilba and Caloundra South.
As plan maker the ULDA prepared development schemes for each of the declared areas which consisted of a land use plan, infrastructure plan and infrastructure strategy. To provide further direction to stakeholders in relation to how development might be undertaken in these declared areas, a series of guidelines and practice notes were prepared over time by the ULDA which cover a range of planning, engineering and environmental matters.
Of the 17 UDAs declared, the ULDA worked in partnership with builders and developers to deliver residential projects in eight communities in Fitzgibbon, Clinton, Tannum Sands, Oonoonba, Andergrove, Moranbah, Blackwater and Roma.
Through these developments the ULDA has:
• assisted in getting housing on the ground in resource areas where pressure has been felt due to the growth in the mining sector, especially for key workers
• demonstrated innovative housing to improve housing choice and affordability • implemented best practice ecological sustainability policies.
The ULDA also worked with industry to co-ordinate and provide infrastructure to facilitate the development of a key inner-Brisbane riverside precinct at Northshore Hamilton.
Vision Mission Values
Vibrant inclusive communities
Ensure private and government land holdings can be brought to the market quickly to improve land supply, housing diversity and employment.
Creating outstanding new communities all Queenslanders will be proud of by utilising best practice design principles to deliver a range of affordable housing options maximising sustainable outcomes.
Bold leadershipCollaboration and partnershipCreativity and innovationSustainabilityIntegrity
Final Report 1 July 2011 – 31 January 2013 5
Urban Land Development Authority I Final Report
Planning
During 2011 – 2012 six development schemes and one amended development scheme were finalised and approved by government before taking effect. This included schemes for four greenfield areas which represent some of the most significant growth opportunities in South East Queensland, as well as schemes for two major resource communities in Central Queensland.
Approved development schemes were finalised for the following UDAs:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
• Blackwater
• Moranbah
• Caloundra South
• Greater Flagstone
• Ripley Valley
• Yarrabilba
The amended scheme for the Fitzgibbon UDA, which included more detailed planning of the Carseldine Urban Village, was also approved.
Other planning milestones included:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
• revision, updating and addition to the ULDA guidelines and practice notes which cover a range of design elements with 19 guidelines and 12 practice notes now publicly available
• finalisation of public engagement for the Tannum Sands UDA Development Scheme and the review of the public submissions
• finalisation of public engagement for the proposed development schemes for the Central Queensland University Rockhampton and Toolooa UDAs
• receiving national awards for planning excellence for the ULDA’s Self Certification Manual and for public engagement associated with the preparation of the Moranbah and Blackwater UDA Development Schemes.
July 2012 to January 2013 was a period of change for the planning team as the Economic Development Bill 2012 progressed through Parliament and the transition of the ULDA started.
During this period the planning team:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
• finalised the Tannum Sands UDA Development Scheme which was approved on 19 October 2012 by the State Government
• prepared for the transition of the proposed development schemes for Rockhampton and Toolooa which would be approved under the new Economic Development Act 2012
• advised on drafting issues in relation to planning elements of the new Act
• assisted with the preparation of the Regional and Resource Towns Action Plan focusing on housing and land supply issues in regional Queensland
• prepared for the declaration of new Priority Development Areas, including the Commonwealth Games Village site at Parklands, under the Economic Development Act 2012
• supported the delegation of development assessment responsibilities for the four Brisbane UDAs to Brisbane City Council.
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Development assessment
From 1 July 2011 until 31 January 2013 the development assessment team:
• received 269 properly made applications across 14 UDAs
• approved 213 applications across 14 UDAs of which nine were changes to existing approvals.
In total the approvals allow for the development of over 4,300 residential lots and approximately 153,000m2 of commercial and retail space.
Major approvals during this period include:----------------------------------------------------------------------------------------------------------------------------------------------------------------------
• whole of site material change of use (MCU) and reconfiguration of a lot (one into 1001 lots) at the northern end of the Greater Flagstone UDA
• separate greenfield reconfigurations within the Ripley Valley UDA by major developers AMEX, Stockland and Sekisui House delivering 730 lots
• whole of site applications at Caloundra South and Yarrabilba by Stockland and Lend Lease respectively establishing master planning frameworks for future development within these two greenfield sites
• compliance assessment approval of the ‘The Green’, representing the first Lend Lease residential development within the RNA precinct delivering 340 units
• three commercial developments located at Hudd St, Abottsford Road and the Mongolian restaurant site in Bowen Hills delivering over 100,000m2 of commercial space
• MCU for two residential towers in Bowen Hills totalling 300 units
• two residential towers within the Brookfield ‘Portside Wharf’ development delivering 285 units in Northshore Hamilton
• eight buildings as part of the mixed use development by Shayher Developments in Northshore Hamilton delivering 277 units
• MCU for business and industry in Northshore Hamilton for the Harvest Property Group totalling 12,500m2 in commercial and retail space.
Community engagement
Community engagement played a significant role in the planning work that the ULDA undertook in declared UDAs. While the legislative engagement requirements in the Urban Land Development Authority Act 2007 specified a 30 business day public notification period for proposed development schemes, the ULDA always sought to undertake more detailed engagement.
From 1 July 2011 until 31 January 2013 comprehensive community engagement activities were undertaken for the preparation of development schemes for three UDAs.
Development scheme prepared Submission period for proposed scheme
Tannum Sands UDA Development Scheme 4 November – 19 December 2011
CQU Rockhampton UDA Development Scheme 29 June – 13 August 2012
Toolooa UDA Development Scheme 29 June – 13 August 2012
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Urban Land Development Authority I Final Report
Residential development
The residential development team was responsible for developments being undertaken by the ULDA within a number of UDAs throughout Queensland.
Brisbane
• Fitzgibbon Chase
Regional centres
• Hillclose, Clinton (Gladstone)
• Tannum Blue, Tannum Sands (Gladstone)
• Woodlands, Andergrove (Mackay)
• The Village, Oonoonba (Townsville)
Resource communities
• Blue Ridge, Blackwater
• Bushlark Grove, Moranbah
• Clearview Rise, Roma
Fitzgibbon Chase, Brisbane
• The delivery of over 370 homes in the three and a half years since development started in May 2009.
• Of those homes delivered, 83 per cent met the ULDA’s affordability target, which is well above the 66 per cent required under the Fitzgibbon UDA Development Scheme.
• Development of a further 127 lots, ready for homes to be built.
• New affordable, small lot freehold product developed with the ULDA’s builder partners, including urban homes on lots of 54m2 and terrace product under 173m2 and delivered to the market starting at less than $197,000.
• Innovation in housing with the design of the Small Office, Home Office (SOHO) product providing flexible floor space opportunities for work from home.
• Completion of zero net energy homes.
• Completion of Lavender Place road extension, providing important vehicle and pedestrian access between the new development and surrounding suburbs to the Carseldine Railway Station and proposed busway station.
• Continued rollout of two innovative sustainable water projects FiSH and Potaroo which will see the harvesting of roof water and stormwater from within the UDA for re-use.
• Completion of the $3.4 million Fitzgibbon Chase Community Centre jointly funded by the ULDA and the Federal Government.
• Completion and opening to the public of the 2.7km bushland trail network.
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Regional centres
Gladstone
• Completion and nearly full sell-out of the first four stages within the HillClose development and the rollout of Stage 6a.
• Opening of the HillClose display village.
• The construction of 76 homes with another 46 under construction.
• 66 per cent of house and land packages sold were below Gladstone’s median house price of $457,000 (Dec 2012) exceeding the target of 60 per cent.
• The identification and approval of an additional development site at Tannum Sands and commencement of construction.
• The Urban Development Institute of Australia (UDIA) EnviroDevelopment accreditation awarded to the Tannum Sands project, Tannum Blue.
Mackay
• The completion and nearly full sell-out of two released stages within the Woodlands development and rollout of the further stages 2, 4 and 5.
• The opening of the display village at Woodlands.
• The construction of 42 homes with another 16 under construction, 70 per cent of which are affordable in the Mackay market.
Townsville
• In collaboration with Townsville City Council, the revision of the draft Ross River Flood Study reducing the potentially significant impacts on the development of The Village as well as the surrounding suburbs.
• The completion of the first stage of The Village and rollout of the further stages of development in stages 2 and 3.
• The project achieved 48 settlements since development started, with 57 per cent of house and land packages affordable in the Townsville market, exceeding the target of 50 per cent.
• The construction of 35 homes with another 10 under construction.
During this period the ULDA also delivered training and industry development initiatives for trainees and school children in each of these UDAs.
Resource communities
Blackwater
• The completion of 12 townhouses in Blackwater with six transferred to Central Highlands Regional Council to provide affordable housing for key workers.
• Acceleration of release to market within the ULDA’s 126 lot Blue Ridge development and the start of construction of homes.
• The Urban Development Institute of Australia (UDIA) EnviroDevelopment accreditation awarded to Blue Ridge.
Moranbah
• The commencement of the first two stages of the ULDA’s 151 lot Bushlark Grove residential development.
• The accelerated release to market of lots within Bushlark Grove and the start of construction of homes.
• The Urban Development Institute of Australia (UDIA) EnviroDevelopment accreditation awarded to Bushlark Grove.
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Roma
• The completion of the first stage of the ULDA residential development Clearview Rise, with 14 settlements; 70 per cent of which are below the median house price in Roma.
• The completion of 12 homes funded by the ULDA and the Sustainable Resources Council (SRC) and the rollout of Stage 4 of the development.
• The Urban Development Institute of Australia (UDIA) EnviroDevelopment accreditation awarded to Clearview Rise.
Reinvestment into ULDA projects
The ULDA has reinvested millions of dollars in its residential development projects to provide affordable housing in resource communities and develop innovative and sustainable housing solutions. These projects include:
• $1.06 million for zero net energy homes at Fitzgibbon Chase
• $1 million for construction of four homes in Roma for gifting to Maranoa Regional Council for affordable housing
• $1 million for the completion of three further houses to be gifted to Maranoa Regional Council for affordable housing
• $270,000 for the transfer of lot 11 at Woodlands to Mackay Regional Housing Company to construct a four-unit development
• $1.8 million for the construction of demonstration/innovative housing including SOHO, nano and urban product at Fitzgibbon Chase
• $850,000 for the construction of four demonstration dwellings at Woodlands including nano product on 54m2 blocks
• $2 million to supply land to Isaac Regional Council to develop and manage affordable housing for the region
• $2 million to Central Highlands Regional Council to purchase six units in the Aurora Close development, managed by Central Highlands Housing Company Limited.
Successful launch and rollout of the My Place program
My Place was an initiative instigated by the ULDA and designed for key workers to get their foot in the door of the highly competitive housing market. Under My Place, key workers were given an opportunity to purchase a home ahead of higher income earners or investors.
Eligible people with household incomes of between $60,000 and $105,000 were given the chance to enter into a ballot to buy house and land packages ranging from $250,000 to $360,000 across Queensland. The rollout of My Place continues under EDQ.
Project Price Range No Sold Lot Size
Fitzgibbon $237,000 - $289,500 2 62m2 - 198m2
HillClose $220,000 - $380,000 21 115m2 - 280m2
Woodlands $239,000 - $356,000 4 Townhouse and 111m2 - 257m2
Moranbah $189,000 - $203,200 4 375m2 - 421m2
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Urban development
The urban development team was responsible for the development of land in medium to higher density UDAs. The development role sometimes extended to the delivery of roads, infrastructure and public realm required to support the sale of prepared lots to third party developers.
Where the ULDA was not a land owner in these UDAs, the team played a facilitation role for other State Government agencies that were the land owners.
The urban development team was created in 2010 as part of the restructure of the ULDA in recognition of the growth in the Authority’s development involvement in urban sites. This included facilitation of development within the Carseldine Urban Village as well as development of ULDA owned land at Northshore Hamilton.
A major focus of the urban development team was the Northshore Hamilton UDA, where the ULDA owned approximately 60 hectares of land.
The highlights include:
Northshore Hamilton
• The completion of a new $5 million CityCat Terminal from which a regular express service to the CBD is now operational.
• The completion of $1.5 million of road works and approximately $1.5 million of riverwalk works around the Australand development.
• The completion of $10 million of trunk sewer works from Macarthur Ave to Violet St north of Kingsford Smith Drive.
• Design for the completion of parks, public realm, roads and infrastructure at the western end of Northshore Hamilton which is expected to cost approximately $60 million to deliver.
• The sale of just over 1 hectare of land on Remora Road for $12 million to The Shayher Group which has started construction on a mixed-use development comprising 273 units and 5,000m2 of commercial and retail space.
• A development agreement with BTP Development Services (and joint venture between Graystone, Harvest and Alceon) for up to 5 hectares of land to deliver a 50,000m2 Northshore Business and Innovation Precinct over the next five years which is expected to realise a return of more than $25 million to the State Government.
• The construction of over 1,000 dwellings to date with approvals in place or construction underway on another 500 dwellings.
In late 2012, the urban development team was tasked with facilitating the delivery of the 2018 Gold Coast Commonwealth GamesTM Village which included the handover of the Commonwealth Games Village business plan from the Department of Tourism, Major Events, Small Business and the Commonwealth Games and preparation for selection of a development partner and consultants for early site works. The delivery of the village is being continued by EDQ.
Final Report 1 July 2011 – 31 January 2013 11
Urban Land Development Authority I Final Report
ULDA Board
The constitution of the board was specified in section 105 of the Urban Land Development Authority Act 2007. The board comprised nine members including the Chair and the chief executives or delegates of the departments in which the State Development and Public Works Organisation Act 1971 and the Financial Administration Act 2009 are administered.
Board members
Appointed
Julie Boyd – Chair – resigned 16 August 2012
Michael Back – resigned 16 August 2012
Michael Kerry – term completed 14 November 2011
John Corbett – resigned 16 August 2012
Renaye Peters – resigned 16 August 2012
Jim Reeves – resigned 26 August 2011
Margaret Strelow – resigned 16 August 2012
Matthew Miller – appointed 9 December 2011 - resigned 16 August 2012
Ex-officio
Jack Noye – until April 2012
Alison Quinn – April 2012 until August 2012
Drew Ellem – until August 2012
Board meetings
Board meetings (12 held and 1 flying minute)
Board workshops (1 held)
Audit and Risk Committee (4 held)
Julie Boyd 12 1 4
Michael Back 9 3
Michael Kerry 3
John Corbett 12 1
Drew Ellem 12 1 3
Jack Noye* 4 1
Renaye Peters 11 1 4
Jim Reeves 2
Margaret Strelow 8 1
Matthew Miller 7 1
Alison Quinn 4
Graham Carpenter (ARC Chair) 4
*Kathy Schaefer represented Jack Noye at 15 September 2011 meeting
*Adrian Jeffreys represented Jack Noye at 20 October 2011 and 15 December 2011 meetings
*Alison Quinn represented Jack Noye at 15 March 2012 meeting.
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Board functions
The ULDA Board undertook a range of administrative and decision making functions as detailed in the Urban Land Development Authority Act 2007. The board was responsible for the overall corporate governance of the ULDA and was the internal approval body for development schemes and development applications.
As part of the transition of the ULDA into the Department of State Development, Infrastructure and Planning, the board resigned as of 16 August 2012. The Deputy Premier and Minister for State Development, Infrastructure and Planning assumed many of the responsibilities of the ULDA Board until the abolition of the ULDA on 31 January 2013.
Audit and Risk Management Committee
The Audit and Risk Management Committee oversaw the ULDA’s risk profile and key strategic and operational risks. The committee members resigned in August 2012 as part of the transition into the Department of State Development, Infrastructure and Planning. The department assumed many of the responsibilities of the committee until the ULDA was abolished on 31 January 2013.
The committee met on four occasions during 2011 - 2012, providing advice and support to the CEO and the ULDA Board in the discharge of their responsibilities under the Financial Administration Act 2009, in particular advising on financial and governance matters of the ULDA. The committee observed the terms of its charter with due regard to Queensland Treasury’s Audit Committee Guidelines.
An internal audit function was in place as part of the corporate governance framework by which the Authority maintained effective systems of accountability and control. The internal audit function reported to the audit and risk committee, providing independent and objective advice and assurance. The role of internal audit included appraisal of the ULDA’s financial administration and effectiveness, as well as the provision of value added audit services and advice.
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Executive Management Team
The Executive Management Team (EMT) within the ULDA consisted of the Chief Executive Officer, Chief Operating Officer and Directors of the various areas within the organisation. The EMT members met fortnightly to review operations and performance of key strategies. Members also attended the board meetings.
Paul Eagles: Chief Executive Officer (until 3 December 2012)---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Paul has 30 years experience in the development industry with a focus on the planning and delivery of residential communities providing a diverse mix of housing. He oversaw the successful planning of 17 Urban Development Areas. These included areas in Brisbane, regional and resource centres, and four new communities in South East Queensland which will become home to more than 300,000 people.
Paul has held senior positions with national development companies working on large master planned communities in South East Queensland. Paul also spent 15 years in local government, including positions with Cairns City Council, Logan City Council and Albert Shire Council.
Chris Mills: Acting Chief Executive Officer (3 December 2012 - 31 January 2013) ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Chris joined the ULDA in June 2009 as the Chief Financial Officer, until being appointed Chief Operating Officer with the organisation in November 2011 and finally the Acting Chief Executive Officer in December 2012.
In his previous role as corporate services manager at Southbank Corporation he managed a range of development, financial, retail and other operating responsibilities.
Additionally, Chris has extensive tourism and leisure experience gained through senior management roles in Macquarie Leisure Trust and assets, Dreamworld and d’Albora Marinas, and is a board member of Currumbin Wildlife Sanctuary.
Steve Conner: Director - Planning---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Steve joined the ULDA in May 2008 bringing more than 20 years experience in strategic and statutory planning, urban design, transit orientated development and development assessment to the Authority.
Steve led the ULDA planning team’s work on 17 UDAs declared over the past five years. He was also instrumental in the development of different planning guidelines including the Residential 30: Guideline to deliver diversity in new neighbourhood development.
Previously, Steve led Queensland Transport’s planning team, responsible for development assessment and facilitating transit orientated development projects.
Matt Leyshon: Director - Urban Development ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Matt joined the ULDA in October 2009 as Director of Development and led the expansion of the ULDA’s project portfolio from approximately 1,000 lots at Fitzgibbon Chase to over 3,000 lots across Queensland. With the transfer of approximately 60 hectares of land at Northshore Hamilton from the Port of Brisbane to the ULDA in 2010, a dedicated urban development team was formed which he led.
Previously, Matt was the Chief Operating Officer with Indigo Group and was also directly responsible for the development management of Indigo’s multi-residential projects.
Matt has more than 20 years experience in the property and construction industries in Australia, Hong Kong and London. He holds an MBA from the Australian Business School and a Bachelor of Architecture from University of Queensland.
Peter Smith: Director - Residential Development---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Peter joined the ULDA in November 2009 bringing more than 15 year’s experience in preparing feasibilities, design and delivery of large and medium scale complexes, master-planned residential developments across communities, commercial and residential building, civil engineering, subdivisional and infrastructure master planning, construction and contract administration.
Previously at Brookfield Multiplex Developments, Peter was Senior Development Manager Communities with responsibility for the proposed development of residential and non-residential land for Echelon Development at Keperra Quarry.
After joining the ULDA he was instrumental in the planning and delivery of all of the ULDA’s residential developments.
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ULDA staffing
Workforce planning, attraction and retention
During the 2011 – 2012 financial year and until 31 January 2013 staffing levels for the ULDA decreased from 89.5 to 78.9 full time equivalent employees. All ULDA staff were based in the Brisbane office, except for two staff members and two trainees who were located on-site at the Fitzgibbon Chase residential land development project.
During the 2011 – 2012 financial year and until 31 January 2013 the ULDA recorded a permanent staff retention rate of 89 per cent and a permanent separation rate of 11 per cent.
Workgroup FTE
Office of the Chief Executive Officer 6.80
Office of the Chief Operating Officer 3.00
Business Services 12.50
Planning 10.80
Planning – Development Assessment 10.00
Development – Residential 19.96
Development – Sales and Marketing 7.00
Development – Urban 8.80
Grand Total 78.86
Voluntary Early Retirement (VER) and retrenchments
There were no VERs at the ULDA during this period.
There were six redundancies at the ULDA during this period. The ULDA conducted a review of the activities of the Sustainability and Innovation Unit in May 2012 which highlighted the need for the Authority to focus its resources and energy in its core business. The review determined to close the Sustainability and Innovation Unit, resulting in four redundancies.
There were two further redundancies in January 2013, relating to the transition of the ULDA into Economic Development Queensland.
Chief Executive Officer
PlanningOffice of the CEO DevelopmentOffice of
the COOBusiness Services
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Urban Land Development Authority I Final Report
Governance
Service standards
The ULDA’s performance measures focused on the efficiency and effectiveness of the core work undertaken by the Authority.
In regard to efficiency, this performance measure applied to the decision making period undertaken by the ULDA to assess a development application upon receipt of all information required to make a determination. Under the Urban Land Development Authority Act 2007, the ULDA was required to decide applications within 40 business days from receipt of all necessary information.
The ULDA set a target of under 40 business days to measure its efficiency. This timeframe did not include time taken by an applicant to respond to information requests from the ULDA as this is outside the control of the ULDA. It also did not include the public notification period of an application as this is a set statutory period.
In regard to effectiveness, this is a measure of how effectively the ULDA delivered on its purpose to facilitate the provision of affordable housing for low to moderate income households. The definition of low to moderate household incomes, affordable housing and the prices at which homes are considered affordable to rent or purchase are outlined in the ULDA’s Housing Strategy.
Urban Land Development Authority 2012-13 Target/Est. 2012-13 Est./Actual
Service standards
Average number of days to process a development application
31 37
Percentage of completed dwellings that are affordable for households on low to moderate incomes
15 per cent 29 per cent
Public Sector Ethics Act 1994
ULDA’s administrative procedures and management practices had proper regard for the organisation’s Code of Conduct and the Public Sector Ethics Act 1994. Staff were made aware and trained in the Code of Conduct and the requirements for ethical behaviour. The Code of Conduct was on the ULDA’s intranet and in the ULDA’s register of documents which relate to the final report.
Ministerial direction
The Urban Land Development Authority Act 2007 (the Act) provided for a wide range of powers to enable the Authority to carry out its responsibilities. Under section 130 of the Act the responsible Minister was able to give the ULDA a written direction about the performance of its functions (a Ministerial direction).
No Ministerial direction was given from 1 July 2011 – 31 January 2013.
Website information
As per the Queensland Government’s requirements, information regarding Right to Information, information privacy, complaints management, Native Title, overseas travel, Carers (Recognition) Act 2008, shared service agency, information systems and record keeping, and consultancies has not been included in this document and is instead available on the Department of State Development, Infrastructure and Planning website at www.dsdip.qld.gov.au
16
Summary of Financial PerformanceFor the period 1 July 2011 to 31 January 2013
Urban Land Development Authority
Final Report 1 July 2011 – 31 January 2013 17
Urban Land Development Authority I Final Report
Introduction
On 1 February 2013 a Proclamation was made giving effect to the commencement of the Economic Development Act 2012. A new entity called Minister for Economic Development Queensland (MEDQ) was established to replace the former Urban Land Development Authority (ULDA) and Property Services Group (PSG). The Urban Land Development Authority Act was repealed and the Urban Land Development Authority abolished effective 31 January 2013.
As a consequence of these changes the services, assets and liabilities of the ULDA were transferred to MEDQ on 1 February 2013.
This is therefore the final financial report of the ULDA.
The summary of the financial performance of the ULDA for the period 1 July 2011 to 31 January 2013 highlights the key financial results together with associated commentary. Tables and graphs have been used to illustrate comparisons between financial years. Direct comparisons with 2013 must be made with the knowledge this relates to a 19 month period.
18
Financial Summary
The Authority recorded an operating surplus before revaluations and transferred assets of $2.6 million for the 19 month period to 31 January 2013. The Authority recorded an operating loss for the period of $101.6 million after accounting for $67.4 million downwards valuation in assets and $36.8 million in assets already transferred or provided for future transfer.
Key financial results for the past 3 years have been summarised in the table below.
2009-10 2010-11 2011-1319 months $m $m $m
Land sales 9.7 40.2 74.2
Land costs 8.4 29.9 53.8
Development profit 1.3 10.3 20.4
Grants 8.4 7.5 5.9
User charges - 2.8 20.6
Other revenue 2.0 1.1 1.1
Cost of development management agreements - - 11.8
Other expenses 9.7 18.1 33.6
Operating surplus (deficit) before revaluations and donated assets
2.0 3.6 2.6
Downwards revaluation of assets - - 67.4
Assets transferred - - 36.8
Operating result (before tax equivalents) 2.0 3.6 (101.6)
Tax equivalents 0 (0.1) 21.0
Operating surplus (deficit) 2.0 3.5 (80.6)
Total revenue for the 19 months to 31 January 2013 was $101.8 million which included $74.2 million in land sales, $20.6 million in development application and development management sale fees, property rental income and other user fees. Grants and contributions amounted to $5.9 million and other income $1.1 million.
Total expenses for the 19 months to 31 January 2013 were $203.4 million which included a $67.4 million revaluation decrement for land and buildings, $53.8 million cost of land sold, $36.8 million in assets already transferred or provided for future transfer, $14.5 million employee costs, $11.8 million in costs on development management agreements and $19.1 million in other costs.
ULDA financial overview
10.0
20.0
30.0
50.0
60.0
0
40.0$ M
illio
ns
70.0
80.0
90.0
2007-08
Total Revenue
Total Expenses
100.0
2008-09 2009-10 2010-11 2011-13(19 months)
The sources of revenue for the ULDA over the past 5 years are shown in the graph above.
$ M
illio
ns
10.0
20.0
30.0
50.0
60.0
0
40.0
70.0
80.0
90.0
2007-08
100.0
2008-09 2009-10 2010-11 2011-13(19 months)
Revenue
Other revenue
User charges
Grants
Land sales
Total revenues and total expenses exclude non cash revaluations and transferred assets for the past 5 years and are shown in the graph above.
Final Report 1 July 2011 – 31 January 2013 19
Urban Land Development Authority I Final Report
Significant transactions
Assets transferred or earmarked for future transfer
Assets transferred and earmarked for transfer to external authorities over the 19 months amounted to $36.8 million. During the 19 months to 31 January 2013 the following assets have either been transferred or provided for future transfer. Under Australian Accounting Standards these amounts have to be recognised as an expense.
Development Area Assets transferred or earmarked for future transfer
To Amount
$m
Northshore Hamilton Brisbane
Café and parks Brisbane City Council $4.6
Northshore Hamilton Brisbane
Roads Department of Environment and Resource Management
$16.9
Other development areas Various Various local authorities $15.3
Total $36.8
Revaluation of investment property
The ULDA’s investment properties were independently valued by the State Valuation Services using fair value principles. The values assigned to the land and buildings at Northshore Hamilton were adjusted to reflect their listed Brisbane City Council zoning (primarily port or industrial use) and do not reflect the potential higher use under the existing development scheme for this precinct. The revaluation decrement of $67.4 million has been recorded as an expense in the ULDA’s accounts as required by Australian Accounting Standards.
Assets and liabilities
50.0
100.0
150.0
250.0
300.0
0
200.0
$ M
illio
ns
350.0
400.0
Total assets
Total libilities
June 2008
January2013
Assets and liabilities
The total value of the ULDA’s assets at 31 January 2013 was $328.9 million. Total liabilities were $166.0 million. The net equity for the ULDA of $162.9 million at 31 January 2013 has been transferred to the newly created Economic Development Queensland which commenced operations 1 February 2013.
Total assets and liabilities for the ULDA over the past 5 years are shown in the graph, right.
June 2009
June 2010
June 2011
20
Urban Land Development AuthorityFinancial Statements
For the financial period ended 31 January 2013
Contents
Statement of Comprehensive Income ...................................................................................................................................... 22
Statement of Financial Position ............................................................................................................................................... 23
Statement of Changes In Equity .............................................................................................................................................. 24
Statement of Cash Flows ......................................................................................................................................................... 25
Notes to and forming part of the Financial Statements .......................................................................................................... 27
Management Certificate of the Urban Land Development Authority ....................................................................................... 59
Independent Audit Report ....................................................................................................................................................... 60
General Information
The Authority is a Queensland Government Statutory Authority established under the Urban Land Development Authority Act 2007 (ULDA Act).
The Authority is controlled by the State of Queensland which is the ultimate parent.
The head office and principal place of business of the Authority is Level 4, 229 Elizabeth Street Brisbane QLD 4000.
A description of the nature of the Authority’s operations and its principal activities is included in the notes to and forming part of the financial statements.
On 1 February 2013 a Proclamation was made giving effect to the commencement of the Economic Development Act 2012. A new entity called Minister for Economic Development Queensland (MEDQ), a corporation sole, was established to replace the former Urban Land Development Authority (ULDA) and Property Services Group (PSG). The ULDA Act was repealed and the ULDA abolished effective 31 January 2013.
For information in relation to the Authority’s financial statements please call 13 QGOV, email [email protected] or visit www.dsdip.qldgov.au.
Final Report 1 July 2011 – 31 January 2013 21
Urban Land Development Authority I Final Report
STATEMENT OF COMPREHENSIVE INCOMEfor the period commenced 1 July 2011 and ended 31 January 2013
Restated*
2013 2011
Notes $000 $000
Income from continuing operations
Sale of land 3 74,226 40,279
User charges 4 20,579 2,848
Grants and other contributions 5 5,898 7,555
Other income 6 1,134 1,065
Total income from continuing operations 101,837 51,747
Expenses from continuing operations
Cost of land sold 3 53,829 29,971
Cost of development on development management agreements 11,769 -
Selling and marketing expenses 7 8,957 1,966
Employee expenses 8 14,482 6,416
Supplies and services 9 7,009 7,919
Depreciation 10 960 796
Revaluation decrement – Investment property 18,19 74,145 -
Revaluation increment – Property, plant and equipment 18,19 (6,795) -
Other expenses 11 39,068 1,051
Total expenses from continuing operations 203,424 48,119
Operating result from continuing operations beforeincome tax equivalent (101,587) 3,628
Current income tax equivalent expense/(revenue) 12 3,164 (101)
Deferred income tax equivalent expense/(revenue) 12 (24,152) 244
Operating result from continuing operations afterincome tax equivalent (80,599) 3,485
Other comprehensive income - -
Total comprehensive income (80,599) 3,485
The accompanying notes form part of these statements.
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
22
STATEMENT OF FINANCIAL POSITIONas at 31 January 2013
Restated Restated*
2013 2011* 1 July 2010
Notes $000 $000 $000
Current assets
Cash and cash equivalent 13 - 21,879 10,283
Other financial assets 14 - 6,163 -
Trade and other receivables 15 - 589 203
Inventories 16 - 75,665 97,310
Other current assets 17 - 267 146
Total current assets - 104,563 107,942
Non current assets
Inventories 16 - 59,000 -
Property, plant and equipment 18 - 31,834 24,556
Investment property 19 - 186,536 194,466
Deferred tax asset 12 - 6,258 6,958
Total non current assets - 283,628 225,980
Total assets - 388,191 333,922
Current liabilities
Trade and other payables 20 - 37,964 17,058
Other financial liabilities 21 - 33,624 17,284
Accrued employee benefits 22 - 716 389
Provisions 23 - 5,861 4,623
Total current liabilities - 78,165 39,354
Non current liabilities
Other financial liabilities 21 - 30,494 28,201
Trade and other payables 20 - 11,543 5,929
Deferred tax 12 - 51,971 52,528
Total non current liabilities - 94,008 86,658
Total liabilities - 172,173 126,012
Net assets - 216,018 207,910
Equity
Contributed equity - 301,256 296,633
Retained surplus - (85,238) (88,723)
Total equity - 216,018 207,910
The accompanying notes form part of these statements.
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Final Report 1 July 2011 – 31 January 2013 23
Urban Land Development Authority I Final Report
STATEMENT OF CHANGES IN EQUITYfor the period commenced 1 July 2011 and ended 31 January 2013
AccumulatedSurplus
ContributedEquity
TOTAL
2013 2013 2013
Notes $000 $000 $000
Balance as at 1 July 2011 (85,238) 301,256 216,018
Profit for the year after income tax (80,599) - (80,599)
Other comprehensive incomeTransactions with owners in their capacity as owners
- - -
Equity contributions from Queensland Treasury - 15,000 15,000
Other equity adjustments 23 - 12,474 12,474
Transfer to Economic Development Queensland 32 165,837 (328,730) (162,893)
Balance as at 31 January 2013 - - -
AccumulatedSurplus
ContributedEquity
TOTAL
2011 2011 2011
$000 $000
Balance as at 1 July 2010 (88,227) 296,633 208,406
Adjustment on correction of errors (net of tax) 2 (496) - (496)
Restated total equity at the beginning of the financial year (88,723) 296,633 207,910
Profit for the year after income tax as reported in the 2011 financial statementsAdjustment on correction of errors (net of tax)
2 3,619 - 3,619
(134) - (134)
Restated profit for the yearTransactions with owners in their capacity as owners
3,485 - 3,485
Equity contributions 23 - 4,623 4,623
Balance as at 30 June 2011 (85,238) 301,256 216,018
The accompanying notes form part of these statements.
24
STATEMENT OF CHANGES IN CASH FLOWSfor the period commenced 1 July 2011 and ended 31 January 2013
Restated*
2013 2011
Notes $000 $000
Cash flows from operating activities
Inflows:
Sale of land 66,872 38,434
User charges 8,763 5,715
Grants and other contributions 5,898 7,555
GST collected from customers 10,071 2,909
GST input tax credits from ATO 11,828 6,087
Interest receipts 1,199 1,011
Outflows:
Payments to suppliers and employees (126,677) (48,788)
GST paid to suppliers (13,277) (6,420)
GST remitted to ATO (7,568) (2,968)
Net cash provided by/(used in) operating activities 25 (42,891) 3,535
Cash flows from investing activities
Inflows:
Infrastructure contributions received 7,938 8,957
Payment received for capital project - 11,000
Outflows:
Infrastructure contributions paid (10,582) -
Payments for / proceeds from term deposits 6,163 (6,163)
Payments for property, plant and equipment (8,556) (10,983)
Payments for infrastructure - (2,793)
Net cash provided by/(used in) investing activities (5,037) 18
Cash flows from financing activities
Inflows:
Proceeds from borrowing 98,118 39,429
Contributed equity 15,000 -
Outflows:
Borrowing redemptions (77,253) (31,386)
Return of advance for construction of busway (8,090)
Net cash provided by/(used in) financing activities 27,775 8,043
Net increase in cash and cash equivalents held (20,153) 11,596
Cash and cash equivalents at beginning of financial year 21,879 10,283
Transfer of cash to Economic Development Queensland (1,726) -
Cash and cash equivalents at end of financial year 13 - 21,879
The accompanying notes form part of these statements.
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Final Report 1 July 2011 – 31 January 2013 25
Urban Land Development Authority I Final Report
Note Note title
Objectives and principal activities of the AuthorityNote 1: Summary of significant accounting policiesNote 2: Prior period adjustmentsNote 3: Land salesNote 4: User chargesNote 5: Grants and other contributionsNote 6: Other revenueNote 7: Selling and marketing expensesNote 8: Employee expensesNote 9: Supplies and servicesNote 10: DepreciationNote 11: Other expensesNote 12: Income tax equivalentNote 13: Cash and cash equivalentsNote 14: Other financial assetsNote 15: ReceivablesNote 16: InventoriesNote 17: Other current assetsNote 18: Property, plant and equipmentNote 19: Investment propertyNote 20: PayablesNote 21: Other financial liabilitiesNote 22: Accrued employee benefitsNote 23: ProvisionsNote 24: Key executive management personnel and remunerationNote 25: Reconciliation of operating surplus/(deficit) to net cash from operating activitiesNote 26: Non-cash financing and investing activitiesNote 27: Commitments for expenditureNote 28: Joint ventureNote 29: Events occurring after balance dateNote 30: ContingenciesNote 31: Financial instrumentsNote 32: Transfer of net assets to Economic Development Queensland
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
26
Abolishment of the Urban Land Development Authority
The Urban Land Development Authority which was established under the Urban Land Development Authority Act 2007 as a not for profit entity, worked with local and State Government, community, local landholders and the development industry to help deliver commercially viable developments that included diverse, affordable, sustainable housing using best practice urban design.
On 1 February 2013 a Proclamation was made giving effect to the commencement of the Economic Development Act 2012. A new entity called Minister for Economic Development Queensland (MEDQ), a corporation sole, was established to replace the former Urban Land Development Authority (ULDA) and Property Services Group (PSG). The Urban Land Development Authority Act was repealed and the ULDA abolished effective 31 January 2013.
MEDQ through Economic Development Queensland (EDQ) will facilitate economic development and development for community purposes in the State. EDQ will continue the current planning and development activities of the former ULDA and PSG and identify new residential, urban and industrial projects.
As a consequence of these changes the services, assets and liabilities of the ULDA were transferred to MEDQ on 31 January 2013, through equity withdrawal.
This is therefore the final financial statements of the ULDA.
Basis of preparationAs a consequence of the above, the financial statements have been prepared on a liquidation basis.
References to 2013 throughout the financial statements and notes relate to the 19 month period from 1 July 2011 to 31 January 2013. Therefore amounts disclosed are not entirely comparable.
1. Summary of significant accounting policies
The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
(a) Statement of compliance The Authority has prepared these financial statements in compliance with section 43 of the Financial and
Performance Management Standard 2009.
These financial statements are general purpose financial statements and have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board. In addition, the financial statements comply with Queensland Treasury’s Minimum Reporting Requirements, to the extent relevant, for the period ended 31 January 2013 and other authoritative pronouncements.
With respect to compliance with Australian Accounting Standards and Interpretations, the Authority has applied those minimum requirements applicable to not-for-profit entities. Except where stated, the historical cost convention is used.
(b) The reporting entity The financial statements include the value of all revenues, expenses, assets, liabilities and equity of the
Authority. The Authority does not have any controlled entities.
(c) Income recognition Income is measured at the fair value of the consideration or contribution received or receivable. Amounts
disclosed are net of returns, allowances, rebates and amounts collected on behalf of third parties.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 27
Urban Land Development Authority I Final Report
1. Summary of significant accounting policies (continued) (c) Income recognition (continued) (i) Revenue from the sale of land is recognised at the time of settlement when the risks and rewards of
ownership have passed to the buyer and the Authority retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the units sold.
(ii) Interest is recognised as interest accrues using the effective interest method. (iii) Government grants, that are non-reciprocal in nature, are recognised as revenue in the year in which
the Authority obtains control over it. Where grants are received that are reciprocal in nature, revenue is recognised as the obligations under the funding arrangements are satisfied.
(iv) Rental income is recognised evenly over the term of the lease. (v) Development application fees are recognised as they are received.
(d) Cash and cash equivalent For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash assets include
all cash and cheques receipted but not banked at the end of the period as well as deposits at call with financial institutions.
(e) Trade and other receivables Trade debtors are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method, less provision for impairment at the amounts due at the time of sale or service delivery. Settlement of these amounts is required within 30 days from invoice date. They are presented as current assets unless collection is not expected for more than 12 months after reporting date.
The collectability of receivables is assessed periodically with provision being made for impairment where required. The impairment loss is recognised in the Statement of Comprehensive Income.
(f) Inventories Inventories, being land held for sale, are valued at the lower of cost and net realisable value. The Authority
charges all direct expenditure on development work to the relevant project. Costs include acquisition, development and capitalised overheads and borrowing costs during development. When development is completed borrowing costs and other holding charges are expensed as incurred.
Borrowing costs included in the cost of land held for resale are those costs that would have been avoided
if the expenditure on acquisition and development of the land has not been made. Borrowing costs incurred while active development is interrupted for extended periods are recognised as expenses.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion, marketing and selling costs.
(g) Acquisitions of assets Actual cost is used for the initial recording of all non-current physical asset acquisitions. Cost is determined as
the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use, including architect’s fees and engineering design fees. However, any training costs are expensed as incurred.
Where assets are received free of charge from a Queensland Government entity (whether as a result of a machinery-of-government or other involuntary transfer), the acquisition cost is recognised as the gross carrying amount in the books of the transferor immediately prior to the transfer together with any accumulated depreciation.
Assets acquired at no cost or for nominal consideration, other than from an involuntary transfer from another Queensland Government entity, are recognised at their fair value at date of acquisition in accordance with AASB116 Property, Plant and Equipment.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
28
1. Summary of significant accounting policies (continued)
(h) 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.
Land $1 Plant and equipment $5,000 Buildings $10,000 Infrastructure $10,000
Items with a lesser value are expensed in the year of acquisition.
Capital works in progress are measured at cost.
(i) Measurement of non-current physical assets Land, buildings and infrastructure are measured at fair value in accordance with AASB 116 Property, Plant and
Equipment, and Queensland Treasury’s Non-Current Asset Policies for the Queensland Public Sector. In respect of these asset classes, the cost of items acquired during the financial year has been judged by management of the Authority to materially represent their fair value at the end of the reporting period.
On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the estimate of remaining useful life.
Non-current physical assets measured at fair value are comprehensively revalued at least once every five years with interim valuations, using appropriate indices, being otherwise performed on an annual basis where there has been a material variation in the index.
Any revaluation increment arising on the revaluation of an asset is recognised, net of tax, in other comprehensive income and to the asset revaluation surplus of the appropriate class in equity. To the extent it reverses a revaluation decrement for the class recognised in profit or loss. A decrease in the carrying amount on previously recognised in profit or loss, the increase is first valuation charged as an expense, to the extent it exceeds the balance, if any, in the revaluation surplus relating to that class.
Plant and equipment is measured at historical cost less depreciation in accordance with Treasury’s Non-Current Asset Policies. Historical cost includes expenditure that is directly attributable to the acquisition of these items.
Separately identified components of assets are measured on the same basis as the assets to which they relate.
(j) Depreciation of property, plant and equipment Land is not depreciated as it has an unlimited useful life.
Plant and equipment is depreciated on a straight-line basis so as to allocate the net cost or revalued amount of each asset, less its estimated residual value, progressively over its estimated residual life to the Authority.
Assets under construction (work-in-progress) are not depreciated until they reach practical completion.
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. All other repairs and maintenance are charged to profit and loss during the reporting period in which they are incurred.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 29
Urban Land Development Authority I Final Report
1. Summary of significant accounting policies (continued) (j) Depreciation of property, plant and equipment (continued) For each class of depreciable asset the following depreciation and amortisation rates are used:
Class Rate % Plant and equipment: Office equipment 10 - 20 Leasehold improvements 20 - 40 Buildings 2.5-20 Infrastructure 2.5
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
(k) Impairment of non-current assets All non-current physical 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 Statement of Comprehensive Income, unless the asset is carried at a revalued amount. When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus of the relevant class to the extent available.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income, unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
(l) Investment property Investment property, which is property held to earn rentals and/or for capital appreciation, is initially
recognised at cost including transaction costs. Where investment property is acquired at no or nominal cost it is recognised at fair value and is subsequently carried at fair value, being revalued as at each reporting date. Fair value is based on selling prices in an active property market adjusted, if necessary, to reflect the nature, location or condition of the specific investment property.
Gains or losses arising from changes in the fair value of investment property are included in the Statement of Comprehensive Income for the period in which they arise as part of other income. Investment property is not depreciated. Rental revenue from investment property is recognised as income on a periodic straight line basis
over the lease term.
(m) Unincorporated joint venture operations The Authority’s interest in unincorporated joint ventures (classified as jointly controlled operations) is brought
to account by recognising in its financial statements the assets it controls, the liabilities that it incurs, the expenses it incurs and its share of income that it earns from the sale of land by the joint venture.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
30
1. Summary of significant accounting policies (continued)
(n) Trade and other payables Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the nominal
amount i.e. agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are generally unsecured and are generally settled on 30 day terms. Amounts payable for the acquisition of land are recognised at the time of settlement, and are payable in accordance with contract terms. They are presented as current liabilities unless payment is not due within 12 months from the reporting date.
(o) Financial instruments Recognition Financial assets and liabilities are classified depending on the purpose for which they were acquired at initial
recognition and the designation re-evaluated at the end of each reporting date. Financial assets acquired principally for the purpose of selling in the short term are classified as financial assets at fair value through the profit or loss.
Financial assets and liabilities are recognised in the Statement of Financial Position on trade date, the date the Authority becomes party to the contractual provisions of the financial instrument.
Classification Financial instruments are classified and measured as follows: • Cash and cash equivalents - held at fair value through profit or loss • Receivables - held at amortised cost • Payables - held at amortised cost • Borrowings - held at amortised cost
Measurement Borrowings are initially recognised at fair value, plus any transaction costs directly attributable to borrowings,
then subsequently held at amortised cost using the effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of a financial instrument (or, where appropriate, a shorter period) to the net carrying amount of that instrument.
Any borrowing costs are added to the carrying amount of the borrowing to the extent they are not settled in the period in which they arise. Borrowings are classified as non-current liabilities to the extent that the Authority has an unconditional right to defer settlement until at least 12 months after the reporting date.
The Authority does not enter into transactions for speculative or hedging purposes. Apart from cash and cash equivalent, the Authority holds no financial assets classified at fair value through profit or loss.
All disclosures relating to the measurement basis and financial risk management of other financial instruments held by the Authority are included in the notes.
Impairment The Authority assesses at the end of each reporting period whether there is objective evidence that a financial
asset or group of financial assets is impaired. A financial asset or group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 31
Urban Land Development Authority I Final Report
1. Summary of significant accounting policies (continued)
(p) Employee benefits Employer superannuation contributions, annual leave and long service leave levies are regarded as employee
benefits.
Payroll tax and workers’ compensation insurance are a consequence of employing employees, but are not counted in an employee’s total remuneration package. They are not employee benefits and are recognised separately as employee related expenses.
Short-term obligations Wages and salaries due but unpaid at reporting date are recognised in the Statement of Financial Position at
the current salary rates.
For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values. Entitlements not expected to be paid within 12 months are classified as non-current liabilities and recognised at their present value, calculated using yields on fixed rate Commonwealth Government bonds of similar maturity, after projecting the remuneration rates expected to apply at the time of likely settlement.
The Authority is excluded from the Queensland Government’s Annual Leave Central Scheme (ALCS), so recreation leave is shown on the Statement of Financial Position. The liability for employee benefits is recognised in accrued employee expenses (note 22).
Prior history indicates that on average, sick leave taken in each reporting period is less than the entitlement accrued. This is expected to recur in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised.
As sick leave is non-vesting, an expense is recognised for this leave as it is taken.
Long-term employee benefit obligations Under the Queensland Government’s long service leave scheme, a levy is made on the Authority to cover the
cost of employees’ long service leave.
The levies are expensed in the period in which they are payable. Amounts paid to employees for long service leave are claimed from the scheme quarterly in arrears.
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.
Retirement benefit obligations 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. The Authority’s obligation is limited to its contribution to QSuper.
Therefore, no liability is recognised for accruing superannuation benefits in these financial statements, the liability being 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.
Executive remuneration Key executive management personnel and remuneration disclosures are made in accordance with Financial
Reporting Requirements for Queensland Government Agencies issued by Queensland Treasury.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
32
1. Summary of significant accounting policies (continued)
(q) Provisions Provisions are recorded when the Authority has a present obligation, either legal or constructive, as a result
of a past event, it is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably measured. They are recognised at the amount expected at reporting date at which the obligation will be settled in a future period.
As the Authority is a government body, it is exempt from certain fees and taxes (rates, stamp duty, land tax) that would otherwise be payable in the private sector in relation to development projects. To ensure that the Authority does not have a competitive advantage over private sector competitors, provision is made for the equivalent costs of all exempt fees and taxes. These funds are required by the Queensland government to be directed to the delivery of affordable housing outcomes.
(r) Infrastructure contributions liability The Authority charges and collects infrastructure contributions from developers. These contributions are:
1. applied to the construction of infrastructure, which is subsequently transferred to the relevant authority; or 2. transferred to the relevant authority; or 3. transferred to the relevant authority to fund the provision of infrastructure.
As such the contributions received are disclosed in the statement of cash flows but are not revenue. The liability for amounts received but not yet utilised is recognised in trade and other payables (note 20).
(s) Finance/borrowing costs Finance costs are recognised as an expense in the period in which they are incurred, other than finance costs
associated with land development which are capitalised to land inventories.
Finance costs include: • Interest on bank overdrafts and short-term and long-term borrowings; and • Ancillary administration charges.
(t) Insurance The Authority’s non-current physical assets and other risks are insured through the Queensland Government
Insurance Fund, with premiums being paid on a risk assessment basis. In addition, the Authority pays premiums to Workcover Queensland in respect of its obligations for employee compensation and has a contractual obligation to pay for environmental insurance over specified land at Northshore Hamilton.
(u) Contributed equity Non-reciprocal transfers of assets and liabilities between wholly-owned Queensland State Public Sector entities
as a result of machinery-of-government changes or other involuntary transfers are adjusted to Contributed Equity in accordance with Interpretation 1038 Contributions to Owners Made to Wholly Owned Public Sector Entities. Equity contributions are similarly adjusted against equity.
(v) Taxation The Authority is exempt from commonwealth taxation with the exception of Fringe Benefits Tax (FBT) and
Goods and Services Tax (GST). As such, FBT and GST receivable from and payable to the Australian Taxation Office are recognised. Revenue, expenses and assets are recognised net of associated GST, unless GST incurred is not recoverable. In this case it is recognised as part of the asset cost or as an expense.
The Authority is subject to the provisions of the National Tax Equivalent Regime (NTER), an administrative arrangement where commonwealth taxation laws are notionally applied to the Authority. In accordance with the requirements of the NTER, the Authority would pay an income tax equivalent to Queensland Treasury. Currently
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 33
Urban Land Development Authority I Final Report
1. Summary of significant accounting policies (continued)
(v) Taxation (continued) an arrangement exists between the Authority and Queensland Treasury whereby the tax equivalent expense can
be retained by the Authority and directed to the delivery of affordable housing. This is via an equity injection on 1 July each year.
The charge for current income tax equivalent expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated on the basis of tax laws enacted or substantively enacted at 31 January 2013.
Deferred tax equivalents are accounted for using the liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax equivalent will be recognised from the initial recognition of an asset or liability in a transaction, excluding a business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax equivalents are calculated at the tax rates and laws that have been enacted or substantively enacted at 31 January 2013 and are expected to apply to the period when the asset is realised or liability is settled. Deferred tax equivalents are credited in the Statement of Comprehensive Income except where it relates to items that may be credited directly to equity, in which case the deferred tax equivalent is adjusted directly against equity.
Deferred income tax equivalent assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future tax profits will be available to utilise those temporary differences and losses.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income tax legislation and the anticipation that the Authority will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.
(w) Issuance of financial statements The financial statements are authorised for issue by the former Chief Executive Officer of the Authority at the
date of signing the Management Certificate.
(x) Judgements and assumptions The preparation of financial statements necessarily requires the determination and use of certain critical
accounting estimates, assumptions, and management judgements that have the potential to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Such estimates, judgements and underlying assumptions are reviewed on an on going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant.
Estimates and assumptions that have a potential significant effect are outlined in the following financial statement notes:
Valuation of Property, Plant and Equipment – Note 18 Provisions – Note 23 Contingencies – Note 30 Impairment of non-current assets – Note 1(k) Recovery of deferred tax assets – Note 1(v)
(y) Rounding and comparatives Amounts included in the financial statements have been rounded to the nearest $1,000 or, where that amount
is $500 or less, to zero, unless disclosure of the full amount is specifically required. Sub-totals and totals may not add due to rounding, but the overall discrepancy is no greater than two.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
34
2. Prior period adjustments During the 2011-13 financial period the following errors were discovered relating to the prior financial periods.
(a) Selling and marketing costs Selling and marketing costs have been incorrectly capitalised as project costs and included in inventory and
the cost of land sold for each of the development areas. These costs should have been excluded from the cost of inventory and expensed as incurred in the relevant financial period.
This prior period adjustment has the following impacts on the financial statements: • Increases in expenses of $708,000 for 2009-10 and $1.966 million for 2010-11; • Decrease in cost of land sold of $420,000 for 2010-11; • Decreases in inventories of $708,000 for 2009-10 and $2.254 million for 2010-11; • Increases in deferred tax asset of $212,000 for 2009-10 and $676,000 in 2010-11; • Decreases in the closing balance of retained surplus of $496,000 for 2009-10 and $1.578 million for 2010-11; • Decreases in deferred tax expense of $212,000 in 2009-10 and $464,000 in 2010-11.
(b) Deferred land payments The liability in relation to land purchased under deferred payment contractual arrangements has not been
discounted to reflect the time value of money. The liability should have been initially recorded at the discounted value with the notional interest being recognised over the period of the repayment.
This prior period adjustment has the following impacts on the financial statements: • Decreases in payables of $1.245 million for 2009-10 and $3.002 million for 2010-11; • Decreases in inventories of $1.245 million for 2009-10 and $3.002 million for 2010-11. (c) Infrastructure contributions provision The liability in relation to infrastructure contributions has been incorrectly classified as a provision in the
Statement of Financial Position. The balance should have been disclosed as a liability as the amount to be repaid is known and does not meet the definition of a provision.
This prior period adjustment has the following impacts on the financial statements: • Decreases in provisions of $2.751 million for 2009-10 and $10.867 million for 2010-11; • Increases in payables of $2.751 million for 2009-10 and $10.867 million for 2010-11. (d) Project management cost recovery Project management fees have been incorrectly classified as user charges revenue in the Statement of
Comprehensive Income. These fees are an internal recovery of wages and should be disclosed as part of employee benefit expenses.
This prior period adjustment has the following impacts on the financial statements: • Decreases in user charges revenue of $1.375 million for 2009-10 and $3.046 million for 2010-11; • Decreases in employee benefit expenses of $1.375 million for 2009-10 and $3.046 million for 2010-11.
(e) Employee entitlements Accrued employee benefits have been incorrectly split between current and non-current portions. These
benefits relate to annual leave and should be classified in full as a current liability as this leave could be taken at any point within the next financial year.
This prior period adjustment has the following impacts on the financial statements: • Decrease in accrued employee benefits (non-current) of $53,000 for 2009-10 and $129,000 for 2010-11; • Increase in accrued employee benefits (current) of $53,000 for 2009-10 and $129,000 for 2010-11.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 35
Urban Land Development Authority I Final Report
(f) Other financial assets Term deposits with a term in excess of three months have previously been included in cash and cash
equivalents. These should be classified as short term financial assets on initial recognition.
This prior period adjustment has the following impacts on the financial statements: • Decrease in cash and cash equivalents of $6,163,000 for 2010-11; • Increase in other financial assets of $6,163,000 for 2010-11.
The errors have been corrected by restating each of the affected financial statement line items for the prior periods as follows:
30 June 2011
Increase/ (Decrease)
30 June 2011
(Restated)
30 June 2010
Increase/ (Decrease)
30 June 2010
(Restated)
$000 $000 $000 $000 $000 $000
Statement of Financial Position
Cash and cash equivalents 28,042 (6,163) 21,879 10,823 10,283
Inventories 138,471 (5,256) 133,215 99,263 (1,953) 97,310
Deferred tax asset 5,582 676 6,258 6,746 212 6,958
Other financial assets - 6,163 6,163 - - -
Trade and other payables (27,097) (10,867) (37,964) (14,307) (2,751) (17,058)
Current accrued employee benefits
(587) (129) (716) (336) (53) (389)
Provisions (16,728) 10,867 (5,861) (7,374) 2,751 (4,623)
Non current accrued employee benefits
(129) 129 - (53) 53 -
Non current trade and other payables
(14,545) 3,002 (11,543) (7,174) 1,245 (5,929)
Deferred tax liability (52,919) 948 (51,971) (52,528) _ (52,528)
Net assets 216,648 (630) 216,018 208,406 (496) 207,910
Retained surplus (84,608) (630) 85,238 (88,227) (496) 88,723
Total equity (216,648) (630) 216,018 208,406 (496) 207,910
2011 Profit Increase/
(Decrease)
2011 (Restated)
$000 $000 $000
Statement of Comprehensive Income
User charges income 5,894 (3,046) 2,848
Cost of land sold (30,391) 420 (29,971)
Selling and marketing costs - (1,966) (1,966)
Employee expenses (9,462) 3,046 (6,416)
Operating result from continuing operations before income tax equivelants
5,174 (1,546) 3,628
Current income tax equivelant (expense)/revenue 101 _ 101
Deferred income tax equivelant (expense)/revenue (1,656) 1,412 (244)
Operating result from continuing operations after income tax equivelants
3,619 (134) 3,485
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
36
Restated*
2013 2011
$000 $000
3. Land sales
Sale of land 74,226 40,279
Cost of land sold (53,829) (29,971)
Development profit 20,397 10,308
4. User charges
Development application fees 5,631 1,676
Development management sales 12,466 -
Development management cost of goods sold (11,769) -
Investment property rent 2,228 1,025
Other user charges 254 147
Total 20,579 2,848
5. Grants and other contributions
Grants - State Government recurrent 221 5,290
Grants - Commonwealth Government 4,677 2,265
Capital contribution 1,000 -
Total 5,898 7,555
6. Other revenue
Interest 1,134 1,065
Total 1,134 1,065
7. Selling and marketing expenses
Selling expenses 1,959 531
Marketing expenses 6,998 1,435
Total 8,957 1,966
8. Employee expenses
Employee benefits
Wages and salaries 14,668 6,577
Employer superannuation contributions 1,734 792
Annual leave expenses 1,356 745
Long service leave levy 320 150
Employee related expenses
Payroll tax and fringe benefits 1,105 508
Other employee expenses 1,091 690
Less: Project management and DA fees revenue (5,792) (3,046)
Total 14,482 6,416
Number of employees 79 89
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 37
Urban Land Development Authority I Final Report
Remuneration of board members and board sub-committee members was as follows:
Board remuneration 1 Jul 2011 – 31 Jan2013
2011
$000 $000
8. Employee expenses (continued)
# Boyd J (Chair) (resigned 16 August 2012) 24 14
# Back M (resigned 16 August 2012) 4 4
Keniger M (term expired 14 Nov 2010) - 2
Kerry M (term completed 14 Nov 2011 ) 2 3
Gleeson B (resigned 14 November 2010) - 2
# Peters R (resigned 16 August 2012) 6 5
Strelow M (resigned 16 August 2012) 4 5
Reeves J (resigned 26 August 2011) 2 3
Corbett J (resigned 16 August 2012) 5 3
Miller M (resigned 16 August 2012) 2 -
** Carpenter G (resigned 16 August 2012) 2 2
Total remuneration paid to all members : 51 43
Each board member resigned their positions during the financial period as a consequence of the abolishment of the ULDA as referred to in note 1.
# Members of the board's Audit and Risk Committee.
** Mr G Carpenter is not a board member, but is Chair of the Audit and Risk Committee.
A sitting fee is paid to members of the Urban Land Development Authority Board and to the members of the Audit and Risk Committee. These have been included as board remuneration for the purposes of this note.
Restated*
2013 2011
$000 $000
9. Supplies and services
Consultants and contractors 4,559 5,209
Corporate services charges 38 111
Legal fees 775 249
Travel 234 415
Other 1,403 1,935
Total 7,009 7,919
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
38
Restated*
2013 2011
$000 $000
10. Depreciation and amortisation
Depreciation was incurred in respect of:
Plant and equipment depreciation 120 88
Buildings depreciation 187 168
Leasehold improvements 446 100
Infrastructure 207 440
Total 960 796
11. Other expenses
Assets donated 23,512 -
Impairment of assets to be donated 13,312 -
Property lease and rental 2,099 870
Special payments – Compensation claims - 10
Special payments – Ex-gratia payments - 48
Internal audit fees 45 34
External audit fees 100 89
Total 39,068 1,051
Total external audit fees relating to the 2011-13 financial period are estimated to be $155,188.
12. Income tax equivalent
Income tax equivalent expense
Operating result before income tax equivalent (101,587) 3,628
Prima facie tax at 30 per cent (30,476) 1,088
Add tax effect of permanent differences:
Non-deductible entertainment 6 3
Exempt tax loss on disposal 9,482 -
Adjustment to deferred tax equivalent liability - (948)
Income tax equivalent expense/(revenue) (20,988) 143
Income tax equivalent expense/(revenue) comprises
Current 3,164 (101)
Deferred (24,152) 244
(20,988) 143
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 39
Urban Land Development Authority I Final Report
Restated*
2013 2011
$000 $000
12. Income tax equivalent (continued)
Deferred tax equivalent liabilityBalance at the beginning of the year 51,971 52,528
Current year's income tax equivalent expense/(revenue) on profit from ordinary activities
(21,903) (557)
Transfer to Economic Development Queensland (30,068) -
Balance at the end of the year - 51,971
Deferred tax equivalent asset
Balance at the beginning of the year 6,258 6,958
Current year's income tax equivalent (expense)/revenue on profit from ordinary activities
2,250 (700)
Transferred to Economic Development Queensland 8,508 -
Balance at the end of the year - 6,258
Deferred tax assets comprise temporary differences attributable to:
Annual leave 185 182
Leave loading 5 16
Accrued expenses 65 3
Accrued audit fees 16 12
Long service leave payable 5 14
Property plant and equipment 5,031 5,254
Deferred fee income 3,201 777
Transferred to Economic Development Queensland (8,508) -
Balance at 30 June - 6,258
Deferred tax liabilities comprise temporary differences attributable to:
Accrued income 5 25
Inventories 8,868 9,211
Investment, property plant and equipment 21,195 42,065
Infrastructure - 670
Transferred to Economic Development Queensland (30,068) -
Balance at 30 June - 51,971
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
40
Restated*
2013 2011
$000 $000
13. Cash and cash equivalents
Cash at bank and on hand - 21,879
Total - 21,879
Interest earned on cash held with the Commonwealth Bank of Australia earned between 3.4 per cent and 5.50 per cent in 2013. (2011: 4.35 per cent to 5.5 per cent).
14. Other financial assets
Deposits - 6,163
Total - 6,163
15. Receivables
Current
Trade debtors - 335
GST receivable - 660
Less: GST payable - (499)
- 496
Interest receivable - 82
Long service leave reimbursements - 3
Interest in land - 1,450
Other - 8
Total - 589
16. Inventories
Land held for sale:
Cost of acquisition - 71,742
Transfers - 7,930
Development costs - 51,543
Other capitalised costs - 3,450
Total - 134,665
Current - 75,665
Non Current - 59,000
Total - 134,665
17. Other current assets
Pre payments - 267
Total - 267
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 41
Urban Land Development Authority I Final Report
Restated*
2013 2011
$000 $000
18. Property, plant and equipment
Plant and equipment:
At cost - 1,589
Less: Accumulated depreciation - (415)
- 1,174
Work in progress:
At cost - 7,730
Buildings:
At fair value - 2,908
Less: accumulated depreciation buildings - (331)
- 2,577
Infrastructure:
At fair value - 17,601
Less: accumulated depreciation buildings - (440)
- 17,161
Land:
At fair value - 3,192
Total - 31,834
Land and buildings were independently valued as at 30 June 2012 by the State Valuation Service using fair value principles. The revaluation increment of $6.795 million has been taken to the Statement of Comprehensive Income.
State Valuation Service has recently provided a one page summary dated 31 January 2013 detailing no movement to the value since 30 June 2012.
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
42
18.
Prop
erty
, pl
ant an
d eq
uipm
ent (c
ontin
ued)
Reco
ncili
atio
n
Reco
ncili
atio
ns o
f th
e ca
rryi
ng a
mou
nts
of e
ach
clas
s of
pro
perty, p
lant
and
equ
ipm
ent at
the
beg
inni
ng a
nd e
nd o
f th
e cu
rren
t re
portin
g
period
are
pro
vide
d be
low.
Plan
t &
equ
ipm
ent
Wor
k in
pro
gres
sBui
ldin
gsIn
fras
truc
ture
Land
Tota
l
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
2013
2011
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
Carr
ying
am
ount
at 1
July
1,
174
564
7,73
045
42,
577
2,74
5
17,1
6117
,601
3,19
23,
192
31,8
3424
,556
Recl
assi
ficat
ion
of W
IP
to inv
ento
ry-
--
--
--
--
--
-
Acqu
isitio
ns10
798
21,1
537,
276
--
--
--
21,1
638,
074
Tran
sfer
s/Dis
posa
ls(1
13)
-(9
,695
)-
--
--
--
(9,8
08)
-
Ass
ets
impa
irm
ent
--
(13,
312)
--
--
--
-(1
3,31
2)-
Ass
ets
tran
sfer
red
(93)
--
-(2
,180
)-
(21,
554)
-(2
,594
)-
(26,
421)
-
Reva
luat
ion
incr
emen
t/
(dec
rem
ent)
--
--
(46)
--
-6,
841
-6,
795
-
Tran
sfer
s from
WIP
to
PPE
--
(4,8
52)
--
-4,
600
-25
2-
--
Dep
reci
atio
n fo
r pe
riod
(566
)(1
88)
--
(187
)(1
68)
(207
)(4
40)
--
(960
)(7
96)
Tran
sfer
to
Econ
omic
Dev
elop
men
t Que
ensl
and
(412
)-
(1,0
24)
-(1
64)
- -
- (7
,691
)-
(9,2
91)
-
Carryi
ng a
mou
nt a
t 30
June
-
1,17
4-
7,73
0-
2,57
7-
17,1
61-
3,19
2--
31,8
34-
The
Auth
ority
has
no p
lant
and
equ
ipm
ent w
ith
a w
ritten
dow
n va
lue
of z
ero
still
bei
ng u
sed
in the
pro
visi
on o
f se
rvic
es.
Urb
an L
and
Dev
elop
men
t Au
thor
ity
NOTE
S TO
AND F
ORM
ING P
ART
OF
THE
FINAN
CIAL
STA
TEM
ENTS
201
1 -
2013
Final Report 1 July 2011 – 31 January 2013 43
Urban Land Development Authority I Final Report
Restated*
2013 2011
$000 $000
19. Investment property
Land and buildings - 186,536
Total - 186,536
The investment properties were independently valued as at 30 June 2012 by State Valuation Services using fair value principles. The values assigned to the land and buildings at Northshore Hamilton were based on their listed Brisbane City Council zoning (primarily port or industrial use) and does not reflect the potential higher use under the existing development scheme for this precinct. The revaluation decrement of $74.21 million has been taken to the Statement of Comprehensive Income. State Valuation Service has recently provided an update to that period dated 31 January 2013 indicating no movement to the value.
No contingent rentals were recognised during the current or prior reporting periods.
The future minimum lease payments receivable under non-cancellable operating leases classified as investment property are:
Not later than one year 927 781
Later than one year and not later than five years 691 403
Total 1,618 1,184
Investment property reconciliation
Land Buildings
2013 2011 2013 2011
$000 $000 $000 $000
Carrying amount at 1 July 182,450 190,380 4,086 4,086
Transfer to inventory - (7,930) - -
Revaluation increment/(decrement) (74,210) - 65 -
Transfer to Economic Development Queensland (108,240) - (4,151) -
Carrying amount at 31 January 2013 - 182,450 - 4,086
Rental income recognised in the operating surplus from investment property is $2,228,209 (2011: $1,025,133).
Direct operating expenses primarily for repairs and maintenance on property that did not generate rental income for the period were $918,774 (2011:$203,137). Direct operating expenses primarily for repairs and maintenance on property that did generate rental income for the period were $121,705 (2011: $402).
There are no restrictions on the realisability of investment property or remittance of income and proceeds of disposal.
The Authority does not have any contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements.
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
44
Restated*
2013 2011
$000 $000
20. Payables
Current
Trade creditors - 2,608
Accrued expenses - 7,806
Retentions - 138
Deferred land payment - 16,351
Infrastructure contributions - 10,867
GST Payable and other expenses - 194
Total - 37,964
Non Current
Deferred land payment - 11,543
Total - 11,543
The deferred land payments represent amounts owing for the purchase of land at Fitzgibbon, Brisbane and Oonoonba, Townsville. There is a first ranking mortgage over the Fitzgibbon land, in favour of State of Queensland (represented by Department of Communities). The Oonoonba land is secured by a first ranking registered mortgage, in favour of State of Queensland (represented by Department of State Development, Infrastructure and Planning).
The payments are due as follows: 2013
< 1 year 1 – 5 years
Oonoonba - -
- -
The payments are due as follows in relation to the prior period: 2011
< 1 year 1 – 5 years
Oonoonba 7,727 11,543
Andergrove 1,450 -
Fitzgibbon 7,174 -
16,351 11,543
21. Other financial liabilities
Current
Other advances - 8,090
QTC borrowings current - 25,534
- 33,624
Non-current
Other advances - -
QTC borrowings current - 30,494
- 30,494
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 45
Urban Land Development Authority I Final Report
21. Other financial liabilities (continued)
All borrowings are Australian denominated amounts and are carried at amortised cost with interest being capitalised as it accrues. Repayment dates vary based on the timing of receipts from land sales. There have been no defaults or breaches of the loan agreement during the period.
The outstanding loan value (book value) is split between current and non-current based on the portion of the loan that is expected to be settled in the next twelve months. QTC use client loan repayment schedules to calculate the portion of principle at reporting period for this information.
The total of approved facilities is $278.8 million (2011: $121.8 million). As at 31 January 2013, $204.4 million (2011: $65.8 million) remains undrawn.
Approved facility Approved amount
$000
Balance at 31 January 2013
$000
Undrawn amount
$000
Fitzgibbon 52,400 42,638 9,762
Oonoonba 24,600 17,282 7,318
Moranbah 9,000 3,383 5,617
Andergrove * 3,500 1,288 2,212
Clinton 2,500 - 2,500
Roma 2,400 - 2,400
Blackwater 4,000 2 3,998
Northshore 15,500 101 15,399
Tannum Sands 18,500 4,100 14,400
Working capital 30,000 5,500 24,500
Catalyst infrastructure 115,000 43 114,957
Total 278,800 74,337 204,463
* Andergrove loan figures represent 100 per cent of the current debt arrangements
Interest rates on borrowings range from 2.93 per cent to 6.40 per cent (2011: 5.21 per cent to 5.72 per cent).
There were no fair value adjustments made to the carrying amount of the borrowings. The Authority is currently reviewing its loan facilities to reduce the potential for fair value adjustments on early settlement of the loans.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
46
Restated*
2013 2011
$000 $000
22. Accrued employee benefits
Current
Recreation leave - 660
Long service leave levy payable - 47
Wages outstanding - 9
Total - 716
23. Provisions
Competitive neutrality - 5,861
Total - 5,861
Movements in provisions
Competitive neutrality
Balance as at 1 July 5,861 4,457
Additional provision recognised 9,204 5,861
Transferred to contributed equity (11,690) (4,457)
Transfer to Economic Development Queensland (3,375) -
Balance as at 30 June - 5,861
National Tax Equivalent Regime
Balance as at 1 July - 166
Additional provision recognised 3,164 -
Transferred to contributed equity (784) (166)
Transfer to Economic Development Queensland (2,380) -
Balance as at 30 June - -
24. Key executive management personnel and remuneration
(a) Key executive management personnel
The following details for key executive management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of the Authority during 2011-13. Further information on these positions can be found in the body of the final report under the section relating to executive management.
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 47
Urban Land Development Authority I Final Report
24. Key executive management personnel and remuneration (continued)
(a) Key executive management personnel (continued)
Position Responsibilities Incumbents as at 31 January 2013
Contract classification and appointment authority
Date appointed to position (Date resigned from position)
Chief Executive Officer
The Chief Executive Officer was responsible for the efficient, effective and economic administration of the Authority.
s122 contract Public Service Act 2008; SES4
Appointed 3 December 2012*
Chief Financial Officer
The Chief Financial Officer is responsible for corporate services including the financial administration of the Authority.
s122 contract Public Service Act 2008; SES2
Appointed 2 August 2012*
Director Urban Development
The Director Urban Development was responsible for overseeing the Authority’s development activities in UDAs including Northshore Hamilton.
s122 contract Public Service Act 2008; SES3
Appointed 1 August 2010
Director Residential Development
The Director Residential Development was responsible for overseeing a development portfolio of substantial residential projects to deliver on the government’s and the Authority’s objectives to the benefit of Queensland communities.
s122 contract Public Service Act 2008; SES3
Appointed 4 January 2011
Director Planning
The Director Planning was responsible for overseeing of the Authority’s planning functions including the preparation of development schemes and development assessment.
s122 contract Public Service Act 2008; SES3
Appointed 19 April 2010
Chief Operating Officer
The Chief Operating Officer was responsible for the overseeing of the operations and functions of the Authority.
s122 contract Public Service Act 2008; SES4
Ceased 2 December 2012
Director Sustainability and Innovation
The Director Sustainability and Innovation was responsible for strategies that support sustainable infrastructure, social planning, housing affordability and economic services.
s 112(1) appointment Public Service Act 2008; SES2
Accepted voluntary redundancy 27 July 2012
* Two different employees held this position during the financial period.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
48
24. Key executive management personnel and remuneration (continued)
(b) Remuneration
Remuneration policy for the Authority’s key executive management personnel is set by the Queensland Public Service Commission as provided for under the Public Service Act 2008. The remuneration and other terms of employment for the key executive management personnel are specified in employment contracts. The contracts provide for the provision of benefits including motor vehicles.
On 1 July 2011 remuneration of key executive management personnel increased by 2.5 per cent in accordance with government policy.
Remuneration packages for key executive management personnel comprise the following components:
• Short term employee benefits which include: o Base – consisting of base salary, allowances and leave entitlements paid and provided for the entire
year or for that part of the year during which the employee occupied the specified position. Amounts disclosed equal the amount expensed in the Statement of Comprehensive Income.
o Non-monetary benefits – consisting of provision of vehicle together with fringe benefits tax applicable to the benefit.
• Long term employee benefits including long service leave accrued.
• Post employment benefits including superannuation contributions.
• Redundancy payments are not provided for within individual contracts of employment. Contracts of employment provide only for notice periods or payments in lieu of notice on termination, regardless of the reason for termination.
Total fixed remuneration is calculated on a ‘total cost’ basis and includes the base and non-monetary benefits, long term employee benefits and post employment benefits.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 49
Urban Land Development Authority I Final Report
24.
Key
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nel an
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1 Ju
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000
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-mon
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y be
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s$’
000
$’00
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000
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1/7
/11
to
30/6
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1/7/
12
to
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1/7
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to
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1/7/
12 to
31/1
/13
1/7
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to
30/6
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1/7/
12 to
31/1
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1/7
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to
30/6
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1/7/
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31/1
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to
30/6
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1/7/
12 to–
31
/1/1
3
Chie
f Ex
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360
190
41
9(3
6)*
3117
404
172
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132
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23
214
915
210
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183
108
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4-
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209
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--
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NOTE
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AND F
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TEM
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201
1 -
2013
50
Restated*
2013 2011
$000 $000
25. Reconciliation of operating result to net cash from operating activities
Operating result from continuing operations after income tax equivalent (80,599) 3,485
Depreciation expense 960 796
Transferred assets written off 23,512 -
Impairment of assets 13,312 -
Revaluation decrement 67,350 -
Changes in assets and liabilities:
(Increase)/decrease in net receivables (19,096) (1,948)
(Increase)/decrease in inventory (40,181) (39,209)
(Increase)/decrease in deferred tax asset (2,249) 1,164
(Increase)/decrease in prepayments 66 (127)
Increase/(decrease) in payables (9,286) 20,344
Increase in accrued employee benefits 152 328
Increase/(decrease) in provisions 12,368 18,311
Increase/(decrease) in deferred tax liability (21,904) 391
Increase/(decrease) in unearned revenue 12,704 -
Net cash provided by/(used in) operating activities (42,891) 3,535
26. Non-cash financing and investing activities
The following assets were transferred by the ULDA to local councils/authorities and have been recognised as expenses in the Statement of Comprehensive Income.
Northshore Hamilton, Brisbane – cafe and parks (transferred to Brisbane City Council)
4,613 -
Northshore Hamilton, Brisbane – roads (transferred to Department of Environment and Resource Management)
16,955 -
Andergrove, Mackay – housing product (transferred to Mackay Regional Council)
252 -
Blackwater – housing product (transferred to Central Highlands Regional Council)
1,692 -
Impairment of works in progress assets earmarked for future donation including PotaRoo, Roma CNF, community centre and artwork, SRC projects
13,312 -
Total 36,824 -
27. Commitments for expenditure
(a) Non-cancellable operating lease
Commitments under operating leases at reporting date are inclusive of anticipated GST and are payable as follows:
Not later than one yearLater than one year and not later than five years
- 1,068
- 1,979
Total - 3,047
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 51
Urban Land Development Authority I Final Report
Restated*
2013 2011
$000 $000
27. Commitments for expenditure (continued)
(a) Non-cancellable operating lease (continued)
Operating leases are entered into as a means of acquiring access to office accommodation, motor vehicle and car parking. Lease payments are generally fixed rental. The lease of 4/229 Elizabeth Street has an escalation clause of 5 per cent renewable in November of each year. No renewal or purchase options exist in relation to operating leases and no operating leases contain restrictions on financing or other leasing activities.
(b) Capital expenditure commitments
Land acquisitions and improvements, and other capital commitments, inclusive of anticipated GST, contracted for at reporting date but not recognised in the accounts are payable as follows:
Not later than one year - 49,943
Later than one year and not later than five years - 6,543
Later than five years - -
Total - 56,486
28. Joint venture
The Authority holds a 50 per cent interest in a joint venture with the Mackay Regional Council (classified as a jointly controlled operation) to develop residential land within the Andergrove Urban Development Area. The Authority’s interests in assets in the joint venture are included in the balance sheet under the following classifications:
Cash - -
Receivables - -
Receivables (Interest in land) - -
Inventories - 2,870
Payables - (2,040)
QTC borrowings - (830)
Net assets - -
29. Events occurring after balance date
Refer to notes 1 and 32 regarding the abolishment of the ULDA at 31 January 2013. These will be the final financial statements of the ULDA. There were no other significant events occurring after balance date.
30. Contingencies
(a) Litigation in progress
As at 31 January 2013, no material legal action has been undertaken by, or brought against the Authority.
(b) Native title claims
As at 31 January 2013, native title claims have been made on land owned by the Authority, but as yet no claims have been determined by the National Native Title Tribunal.
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
52
Restated*
Notes 2013 2011
$000 $000
30. Contingencies (continued)
(c) Contract performance guarantees
Financial guarantees of $2,479,947 (2011: $968,558) were provided to Ergon Energy Corporation Ltd and Brisbane City Council to provide security for the performance of obligations under contracts for electrical works in Oonoonba,Townsville, Andergrove, Mackay and Clinton, Gladstone.
31. Financial instruments
(a) Categorisation of financial instruments
The Authority has the following categories of financial assets and financial liabilities:
Financial assets
Cash and cash equivalent 13 - 21,879
Other financial assets 14 - 6,163
Receivables 15 - 589
Total - 28,631
Financial liabilities
Payables 20 - 49,507
Other financial liabilities 21 - 64,118
Total - 113,625
(b) Financial risk management
The Authority’s activities expose it to a variety of financial risks - credit risk, liquidity risk and market risk. Financial risk management is implemented pursuant to government and board policy. These policies focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial performance of the Authority.
All financial risk is managed by Executive Management under policies approved by the board. The board provides written principles for overall risk management, as well as policies covering specific areas.
Risk exposure Measurement method
Credit Risk Ageing analysis, earnings at risk
Liquidity Risk Sensitivity analysis
Market Risk Interest rate sensitivity analysis
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 53
Urban Land Development Authority I Final Report
Restated*
Notes 2013 2011
31. Financial instruments (continued)
(c) Credit risk exposure
The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment.
The following table represents the Authority’s maximum exposure to credit risk based on contractual amounts net of any allowances:
Maximum exposure to credit risk
Cash & cash equivalents 13 - 21,879
Other financial assets 14 6,163
Receivables 15 - 589
Total - 28,631
No collateral is held as security and no credit enhancements relate to financial assets held by the Authority.
The Authority manages credit risk through the use of management reports. This strategy aims to reduce the exposure to credit default by ensuring that the Authority invests in secure assets and monitors all funds owed on a timely basis. Exposure to credit risk is monitored on an ongoing basis.
The method for calculating any provisional impairment for risk is based on past experience, current and expected changes in economic conditions and changes in client credit ratings. These economic changes form part of the Authority’s documented risk analysis assessment in conjunction with historic experience and associated industry data. Financial assets have not had their terms renegotiated so as to prevent them from being past due or impaired, and are stated at the carrying amounts as indicated. Ageing of past due but not impaired as well as impaired financial assets is disclosed in the following tables:
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
54
31. Financial instruments (continued)
(c) Credit risk exposure (continued)
2013 Financial assets past due but not impaired
Contractual repricing/maturity date:
Overdue
Note Not overdue
Less than 30 days
30-60 days
61-90 days
More than 90 days
Total financial assets
$000 $000 $000 $000 $000 $000
Financial assets
Receivables 15 - - - - - -
Total - - - - - -
2011 Financial assets past due but not impaired
Contractual repricing/maturity date:
Overdue
Note Not over-due
Less than 30 days
30-60 days
61-90 days
More than 90 days
Total financial assets
$000 $000 $000 $000 $000 $000
Financial assets
Receivables 15 559 3 2 25 - 589
Total 559 3 2 25 - 589
(d) Liquidity risk
Liquidity risk refers to the situation where the Authority may encounter difficulty in meeting obligations associated with financial liabilities.
The Authority is exposed to liquidity risk in respect of its payables and borrowings from Queensland Treasury Corporation. The borrowings are based on the Queensland Government’s gazetted floating rate.
The Authority manages liquidity risk through the use of management reports. This strategy aims to reduce the exposure to liquidity risk by ensuring the Authority has sufficient funds available to meet employee and supplier obligations at all times. This is achieved by ensuring that minimum levels of cash are held within the various bank accounts so as to match the expected duration of the various employee and supplier liabilities. The following table sets out the liquidity risk of financial liabilities held by the Authority. It represents the contractual maturity of financial liabilities, calculated based on cash flows relating to the repayment of the principal amount outstanding at reporting date.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 55
Urban Land Development Authority I Final Report
31. Financial instruments (continued)
(d) Liquidity risk (continued)
2013 payable in
Note <1 year$000
1-5 years $000
>5 years$000
Total$000
Financial liabilities
Payables 20 - - - -
QTC borrowing 21 - - - -
- - - -
2011 payable in
Note <1 year$000
1-5 years $000
>5 years$000
Total$000
Financial liabilities
Payables 20 37,964 11,543 - 49,507
Other advances 8,090 - 8,090
QTC borrowing 20 25,534 30,494 - 56,028
Total 71,588 42,037 - 113,625
(e) Market risk
The Authority does not trade in foreign currency and is not materially exposed to commodity price changes. The Authority is exposed to interest rate risk through its cash deposits in interest bearing accounts and its borrowings from QTC. The Authority does not undertake any hedging in relation to interest rate risk.
Interest rate sensitivity analysisThe following interest rate sensitivity analysis is based on a report similar to that which would be provided to management, depicting the outcome to profit and loss if interest rates would change by +/- 1 per cent from the year-end rates applicable to the Authority’s financial assets and liabilities.
Financial instruments Carrying amount$’000
2013 Interest rate risk
-1% +1%
Profit Equity Profit Equity
Cash - - - - -
QTC borrowing - - - - -
Overall effect on profit and equity - - - -
Financial instruments Carrying amount$’000
2011 Interest rate risk
-1% +1%
Profit Equity Profit Equity
Cash 21,879 (280) (280) 280 280
QTC borrowing 56,028 560 560 (560) (560)
Overall effect on profit and equity 280 280 (280) (280)
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
56
31. Financial instruments (continued)
(f) Fair value
The Authority does not designate any financial assets or financial liabilities as fair value through profit and loss. The fair value of trade receivables and payables is assumed to approximate the value of the original transaction, less any provision for impairment. The Authority has not offset any assets and liabilities. The fair value of borrowings is notified by Queensland Treasury Corporation. It is calculated using discounted cash flow analysis and the effective interest rate (refer note 21) and is disclosed below:
Maximum exposure to credit risk 2013 2011
Cash & cash equivalents Carrying amount $000
Fair value
$000
Carrying amount $000
Fair value
$000
Financial liabilities
Borrowings - - 56,028 56,784
Total - - 56,028 56,784
32. Transfer of net assets to Economic Development Queensland
As referred to in note 1 the Urban Land Development Authority was abolished on 31 January 2013. Net assets were transferred for nil consideration to the Minister for Economic Development Queensland. Prior to making any accounting adjustments relating to the transfer, the book values of the net assets transferred were recorded in the Urban Land Development Authority as follows:
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
Final Report 1 July 2011 – 31 January 2013 57
Urban Land Development Authority I Final Report
Restated Restated*
2013 2011* 1 July 2010
$000 $000 $’000
32. Transfer of Net Assets to Economic Development Queensland (continued)
Current assets
Cash and cash equivalent 1,726 21,879 10,283
Other financial assets - 6,163 -
Trade and other receivables 20,601 589 203
Inventories 64,280 75,665 97,310
Other current assets 197 267 146
Total current assets 86,804 104,563 107,942
Non current assets
Inventories 111,906 59,000 -
Property, plant and equipment 9,291 31,834 24,556
Investment property 112,391 186,536 194,466
Deferred tax asset 8,508 6,258 6,958
Total non current assets 242,096 283,628 225,980
Total assets 328,900 388,191 333,922
Current liabilities
Trade and other payables 46,622 37,964 17,058
Other financial liabilities 9,520 33,624 17,284
Accrued employee benefits 882 716 389
Provisions 5,755 5,861 4,623
Total current liabilities 62,779 78,165 39,354
Non current liabilities
Other financial liabilities 67,375 30,494 28,201
Trade and other payables 5,785 11,543 5,929
Deferred tax 30,068 51,971 52,528
Total non current liabilities 103,228 94,008 86,658
Total liabilities 166,007 172,173 126,012
Net assets 162,893 216,018 207,910
Equity
Contributed equity 328,730 301,256 296,633
Retained surplus (165,837) (85,238) (88,723)
Total equity 162,893 16,018 207,910
* See note 2 for details regarding the restatement as a result of errors in the prior periods.
Urban Land Development Authority NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2011 - 2013
58
Final Report 1 July 2011 – 31 January 2013 59
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60
Final Report 1 July 2011 – 31 January 2013 61
Urban Land Development Authority I Final Report
Compliance Checklist
FAA Financial Accountability Act 2009FPMS Financial and Performance Management Standard 2009ARRs Annual report requirements for Queensland Government agencies
Summary of requirement Basis for requirement Final report reference
Accessibility ¡ Table of contents ARRs – section 8.1 1
¡ Public availability ARRs – section 8.2 Inside front cover
¡ Interpreter service statement Queensland GovernmentLanguage Services Policy
ARRs – section 8.3
Inside front cover
¡ Copyright notice Copyright Act 1968
ARRs – section 8.4
Inside front cover
¡ Government Information Licensing Framework (GILF) Licence
Government InformationLicensing Framework (GILF)QGEA Policy
ARRs – section 8.5
Inside front cover
Letter of compliance ¡ A letter of compliance from the accountable officer or statutory body to the relevant Minister(s)
ARRs – section 9 2
General Information ¡ Introductory Information
¡ Message from the Chief Executive Officer
¡ Agency role and main functions
¡ Operating environment
¡ External scrutiny
¡ Machinery of government changes
¡ Review of proposed forward operations
ARRs – section 10.1
ARRs – section 10.2
ARRs – section 10.3
ARRs – section 10.4
ARRs – section 10.5
ARRs – section 10.6
ARRs – section 10.7
3
4
5
6-11
13
3,28,33N/A
Non-financialperformance
¡ Government objectives for the community
ARRs – section 11.1 4
¡ Agency objectives and performance indicators
ARRs – section 11.4 5,16
¡ Agency service areas, service standards and other measures
ARRs – section 11.5 16
Financial performance ¡ Summary of financial performance ARRs – section 12.1 19-20
¡ Chief Finance Officer (CFO) statement ARRs – section 12.2 18
Governance –management and structure
¡ Organisational structure ARRs – section 13.1 15
¡ Executive management ARRs – section 13.2 14
¡ Boards and committees ARRs – section 13.5 12,13
¡ Public Sector Ethics Act 1994 Public Sector Ethics Act 1994 (section 23 and Schedule)
ARRs – section 13.6
16
62
Summary of requirement Basis for requirement Final report reference
Governance – riskmanagement andaccountability
¡ Risk management ARRs – section 14.1 16
¡ Audit committee ARRs – section 14.2 13
¡ Internal audit ARRs – section 14.3 13
Governance – humanresources
¡ Workforce planning, attraction and retention
ARRs – section 15.1 15
¡ Early retirement, redundancy and retrenchment
Directive No.17/09 EarlyRetirement, Redundancy and Retrenchment
ARRs – section 15.2
15
¡ Voluntary Separation Program ARRs – section 15.3 15
Financial Statements ¡ Certification of financial statements FAA – section 62
FPMS – sections 42, 43 and 50
ARRs – section 16.1
59
¡ Independent Auditors Report FAA – section 62
FPMS – section 50
ARRs – section 16.2
60
¡ Remuneration disclosures Financial ReportingRequirements for Queensland Government Agencies
ARRs – section 16.3
47-50
Disclosure of additional information
¡ Additional information to be reported online
ARRs – section 17 Available at dsdip.qld.gov.au
Final Report 1 July 2011 – 31 January 2013 63
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Annual Report2011-2012
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