2010 11 qraa annual report - electronic · pdf filevolume of work undertaken during the year,...
TRANSCRIPT
Annual Report2010-11
QRAAcommitted to serving Queensland
To the Minister
30 September 2011
The Honourable Tim Mulherin MPMinister for Agriculture, Food and Regional EconomiesGPO Box 46Brisbane Qld 4000
Dear Minister
I am pleased to present the Annual Report 2010-11 for QRAA.
I certify that this Annual Report complies with:
• the Rural and Regional Adjustment Act 1994
• the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009
• the detailed requirements set out in the Annual Report Requirements for Queensland Government Agencies.
This report is submitted on behalf of the Board of QRAA and highlights QRAA’s achievements during the year and the commitment demonstrated by all staff in assisting Queensland communities.
QRAA and the Board value your support and look forward to working with you in the future.
Yours sincerely
Wayne CarlsonChairperson, QRAA Email � [email protected]
© The State of Queensland (QRAA) 2011
WelcomeWelcome to the Annual Report 2010-11 for QRAA. This report summarises our corporate performance during 2010-11 and is an integral part of QRAA’s corporate governance framework.
The ‘QRAA committed to serving Queensland’ theme refl ects QRAA’s commitment to Queensland and highlights the signifi cant volume of work undertaken during the year, particularly our response to natural disaster events.
This report is developed in accordance with legislative reporting obligations for the Minister for Agriculture, Food and Regional Economies to present to the Queensland Parliament.
We welcome your feedback on this report. If you have diffi culty in understanding this report, please contact us on Freecall 1800 623 946 and we will arrange an interpreter to eff ectively communicate the report to you.
Contact details:
Email: [email protected]: Freecall 1800 623 946Facsimile: (07) 3032 0180Mail: QRAA GPO BOX 211 Brisbane QLD 4001
A copy of this annual report is available at www.qraa.qld.gov.au A checklist outlining the annual reporting requirements can be accessed at www.qraa.qld.gov.au
Waynnnnnnnnnnnnnnnnnnnnnnnnnne eeeeee Carlson
What’s insideQRAA 5 year snapshot 1The year in review 3
Chairperson’s and Chief Executive Offi cer’s report 4
About us 6 Who we are
What we do
Our values
Board of Directors
Organisational structure
Corporate governance 11Our performance 17Our people 37
Financial performance 41Financial summary 42
Financial statements 43
QRAA Annual Report 2010-11 | 3
In 2010-11, QRAA employed 123.2 full-time equivalent employees across all business units, which included temporary and casual staff to manage the increased workload following the disaster events.
QRAA recieved an unprecedented number of phone enquiries on the Freecall 1800 hotline, with more than 41,400 calls received in 2010-11, a 236% increase from 2009-10.
Program approvals
QRAA
Phone enquiries
Applications approved
08/0
9
09/1
0
$450
$400
$350
$300
$250
$200
$150
$100
$50
$0
06/0
7
07/0
8
App
rova
ls (m
illio
n)
10/1
1
08/0
9
09/1
0
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
06/0
7
07/0
8
Num
ber
10/1
1
Staffi ng
08/0
9
09/1
0
125
100
75
50
25
0
06/0
7
07/0
8
10/1
1
Num
ber o
f FTE
’s
150
08/0
9
09/1
0
27,000
24,000
21,000
18,000
15,000
12,000
9000
6000
3000
0
06/0
7
07/0
8
Num
ber o
f App
rova
ls
10/1
1
5 yearsnapshot
Total number Trend line
QRAA, as an administrator of government fi nancial assistance programs, has performed well over the past fi ve years.
The yearly results refl ect the nature of programs administered by QRAA. In 2010-11, QRAA continued to implement business development strategies to increase its portfolio of programs and provide much needed support to Queensland’s communities.
In 2010-11, QRAA approved 24,459 applications across all fi nancial assistance programs. The 2009-10 results were lower than usual due to reduced need for drought assistance.
In 2010-11, QRAA approved more than $195.9 million in fi nancial assistance in the form of loans, rebates, grants and subsidies, a 97% increase from 2009-10. The 2006-07 high was due to high dollar value schemes and increased demand for drought assistance.
4 | QRAA Annual Report 2010-11
Our past 12 months
July 10 Sept 10 Aug 10 Nov 10 Oct 10 Dec 10
Qld biennial
rural debt
survey results
launched
New Client
Liaison Offi cers
appointed to
Longreach
and Kingaroy Bundaberg
regional Board
visit
QRAA
temporary
offi ces across
South-West Qld
and Darling
Downs regions
Exceptional
Circumstances
interest subsidy closes
(except Gulf region)
Flooding at
Dalby, Chinchilla,
Theodore, Emerald,
Bundaberg, Central
Highlands
7 new government fi nancial assistance programs administered by QRAA
full-time equivalent staff employed across the organisation
per cent increase in phone calls recieved on Freecall hotline
123
236
14,820
Fast facts
applications received under the Special Disaster Assistance Grants scheme for fl ooding and Tropical Cyclone Yasi
86 per cent of customers satisfi ed or very satsifi ed with QRAA’s services
3 new appointments to the QRAA Board of Directors in addition to the appointment of a new Chairperson
30,500applications received from primary producers and businesses for all programs administered by QRAA
Solar Hot Water
Rebate Scheme
commenced
Business
Process Review
recommendations
completed
QRAA Annual Report 2010-11 | 5
Priority 3: Growth• Commenced administering seven new assistance programs.
• Secured the fi rst consumer-based scheme (i.e. outside QRAA’s traditional rural and regional sector).
• Commenced administering natural disaster assistance schemes for the non-profi t sector.
• Contributed to the review of the Rural and Regional Adjustment Act 1994 and Rural and Regional Adjustment Regulation 2000 to enable QRAA to continue to operate in a changing economic environment.
• Proactively engaged with policy owners and industry representatives to support growth of the productivity loan portfolio.
Priority 4: Capability• Further implemented the strategic planning and performance
framework, consolidating existing planning, reporting and performance management activities.
• Reviewed and approved 17 key policies and procedures including code of conduct, public interest disclosure, and emergency and business continuity.
• Implemented new software, including a virtual desktop environment and service desk software.
• Developed an information services disaster response plan to provide high level direction for disaster response for systems such as power and telephone networks.
• Established a corporate training committee and training register to better coordinate training initiatives.
The year in review
HighlightsIn 2010-11 QRAA increased its portfolio of programs and delivered signifi cant fi nancial support and assistance to customers and stakeholders. QRAA staff demonstrated outstanding commitment in assisting Queensland communities.
Priority 1: Cost leadership• Achieved a 1.03 per cent result in loan
arrears against a target of 3 per cent.
• Received $13.2 million in administration revenue.
• QRAA’s business units identifi ed cost reduction strategies for their unit and for the business.
Priority 2: Service excellence• Provided immediate support for fl ood and cyclone-aff ected
communities across Queensland through the Client Liaison Offi cer network, whole-of-government community recovery centres and temporary offi ces.
• Approved more than $195.9 million (24,459 applications) in fi nancial assistance in the form of loans, rebates, grants and subsidies.
• Achieved an 86 per cent result for customer satisfaction from the June 2010 customer satisfaction survey.
• Achieved 79 per cent for processing time performance against standard response times.
• Maintained a strong profi le in regional Queensland by participating in more than 400 events across the state.
Jan 11 Apr 11 Feb 11 Mar 11 May 11 Jun 11
Tropical
Cyclone
YasiQRAA temporary
offi ces at Cardwell,
Ingham, Mission
Beach, Tully Emerging rural
leaders course
completedFar North
Queensland
regional Board
visit
First Start a
nd
Sustainability
Loan promotion
commencedFlooding at
Toowoomba,
Maryborough, Gympie,
Brisbane, North Coast,
South-West Qld, Ipswich
Brisbane river
peaks3 new Board
members
appointed
“Commenced administering
7 new assistance programs”
6 | QRAA Annual Report 2010-11
Chairperson’s and Chief Executive Offi cer’s report
“Mr Carlson’s 35 years of experience in the rural fi nance sector will help
QRAA adapt to changing trends and embrace
opportunities for growth”
Minister for Agriculture, Food and Regional Economies,
Tim Mulherin MP
Our performanceThis year, following the devastation of the fl oods and cyclones, we have seen outstanding contributions by QRAA staff as eff ective administrators of fi nancial assistance. Through our work we made valuable contributions to community recovery and to achieving Queensland Government priorities.
QRAA received an unprecedented number of applications and approved $195.9 million to primary producers, businesses and non-profi t organisations across all fi nancial assistance programs. We are pleased to have met or exceeded seven of our key performance indicators (service standards), leading to only two performance indicators not being achieved due to the impacts of natural disasters.
...committed to assisting Queensland communities...QRAA has proven ability in delivering essential fi nancial assistance with minimal delay while maintaining robust administrative processes.
With improved economic conditions, primary producer confi dence began to return and QRAA approved 132 loans under the Primary Industry Productivity Enhancement Scheme. However, adverse seasonal conditions impacted on the overall take-up of loans.
Over the past 10 years, QRAA has received more than 70,000 applications and approved more than $1,653 million in fi nancial assistance to primary producers and small businesses in rural and regional Queensland. This includes fi nancial assistance in the form of loans, rebates, grants and subsidies to Queensland’s rural and regional communities.
...providing disaster response...Our customers faced signifi cant challenges as a result of the recent devastating natural disasters. QRAA staff have risen to the challenges in response to these events to assess, administer, promote and provide fi nancial assistance to those in need.
We received an unprecedendent number of applications and enquiries to which QRAA responded both eff ectively and effi ciently.
QRAA worked tirelessly to administer the available programs of assistance throughout the State with staff deployed to temporary offi ces and whole-of-government recovery centres throughout the regions.
QRAA staff demonstrated their commitment to the programs and services available to the community in the recovery process with the majority of staff working on disaster recovery in January and February.
...here for the next generation...The Queensland Government listened to Queensland primary producers and improved the Primary Industry Productivity Enhancement loan scheme administered by QRAA. This will further assist our customers in undertaking activities to achieve more productive and sustainable enterprises.
Under the banner ‘Here for a changing landscape’ we commenced a promotional campaign to let current and potential customers know about the loan improvements. This includes increasing the loan limit to $650,000 and new eligible activities to assist with climate change and drought preparedness.
...personal service for our customers...We remained committed to providing personalised service to our customers. Our regional Client Liaison Offi cers met with many primary producers on-farm to discuss their enterprise needs. Primary producers and business owners aff ected by drought, fl oods or cyclone, were also able to meet with QRAA representatives at whole-of-government recovery centres or QRAA temporary offi ces across the state.
Our peopleOur thanks go to retiring Chairperson, Graham Davies, who has made a valuable contribution to QRAA over the past 10 years. QRAA has grown signifi cantly under his leadership, and has become a trusted partner in fi nancial assistance administration.
We also pay tribute to the dedication and professionalism of QRAA staff . The fl exibility and commitment demonstrated by staff to meet the challenges following the natural disasters ensured the much needed fi nancial assistance was distributed to Queenslanders without delay.
QRAA Annual Report 2010-11 | 7
While our performance has been very solid this fi nancial year, we will continue to look at ways to improve our performance in coming years and increase our eff ectiveness in delivering services on behalf of policy owners.
Once again, congratulations to our staff , stakeholders and customers for meeting the challenges this year.
Wayne Carlson
Chairperson
Letter from Graham Davies As this is my last year as Chairperson of QRAA’s Board of Directors, I would like to take the opportunity to thank QRAA staff and stakeholders for their eff orts over the years.
Our peopleI am proud to have represented an organisation whose staff are highly skilled and committed, with each member being an integral part of the QRAA team. Our people strive to provide the most effi cient and eff ective service and I am most proud of the work undertaken this year, with many records broken across all areas of service delivery. The responsiveness and quality of disaster recovery work has been outstanding - our customer relations team has been at the frontline servicing the regions and our Brisbane staff have done extremely well in processing the sheer number of applications.
Our partnershipsIt has been a pleasure to see QRAA establishing and maintaining strong working relationships with our partners, including government, industry associations, and communities over the years. These relationships are vital to the organisation’s success and marks our way forward.
Our futureThe future is promising for QRAA which will continue to meet changing customer demands and community expectations. I am sure the new QRAA Board of Directors will work to ensure the organisation focuses on achieving QRAA’s strategic objectives of maximising opportunities for growth and expansion.
Thank youOnce again, my thanks to the hardworking staff of QRAA and in particular, Chief Executive Offi cer, Colin Holden, for his leadership and vision over the years. This has been invaluable in positioning QRAA to be the preferred provider of government fi nancial programs and services.
I would also like to take the opportunity to extend a special thanks to the Minister for Agriculture, Food and Regional Economies, The Honourable Tim Mulherin for his support of the strategic direction of QRAA.
I wish QRAA all the best for the future.
Yours sincerely
Graham Davies
Chairperson, QRAA (Retired)
Our future
...committed to growing our business...QRAA will continue to play a key role in delivering government assistance programs that support the Queensland economy and foster the development of a more productive and sustainable rural and regional sector.
We will continue to coordinate activities in response to fl oods and cyclones and will continue to process applications and distribute funds to eligible applicants.
We have strengthened our market penetration methods and expansion strategies by forming partnerships with new agencies. We intend to pursue these directions to enable further growth of QRAA. We will also focus on the skills of our people and improved customer service delivery.
Colin Holden
Chief Executive Offi cer
8 | QRAA Annual Report 2010-11
AboutAboutusus
“QRAA’s role is to provide specialised, cost effective and effi cient fi nancial administrative services on behalf of the Commonwealth and State governments throughout Australia.”
Who we areQRAA is a statutory authority of the Queensland Government established under the Rural and Regional Adjustment Act 1994 (the Act), reporting to the Minister for Agriculture, Food and Regional Economies.
QRAA’s role is to provide specialised, cost-eff ective and effi cient fi nancial administrative services on behalf of the Commonwealth and State Governments throughout Australia.
Our Act enables QRAA to administer:
• rural and regional based assistance schemes for the Commonwealth Government and other State/Territory Governments within Australia
• assistance programs in Queensland (including those outside QRAA’s traditional rural and regional sector).
What we doQRAA administers a wide range of loans, grants, rebates, subsidies and industry adjustment schemes that have been specifi cally designed to:
• foster the development of a more productive and sustainable rural and regional sector
• give assistance to elements of the State’s economy in periods of temporary diffi culty (e.g. natural disaster relief and recovery); and/or
• otherwise benefi t the State’s economy.
Through the proper and fair administration of these programs, QRAA contributes to the Queensland Government ambitions of strong, green, smart, healthy and fair. Our vision is to be the preferred provider of government fi nancial programs and services.
Maria NiedduLoans Offi cer, Program Delivery
QRAA Annual Report 2010-11 | 9
Strategic framework
QRAA operates within a strategic framework which aligns strategic planning to annual business unit operational plans and individual performance and development plans.
QRAA’s Strategic Plan 2010-14 identifi es QRAA’s strategic priorities and its strategic intent, which is to achieve self-suffi ciency. The strategic priorities are:
• cost leadership
• service excellence
• growth
• capability.
These priorities are the driving factors enabling QRAA to expand into new markets and support emerging business while ensuring that the business remains sustainable.
Key performance indicators support these priorities and are continually monitored to gauge the progress of QRAA in achieving its goals and objectives.
Administrative services
QRAA provides full administrative services including application processing, payment processing, decision-making, program design and development, and program reporting. QRAA also provides partial support services to complement existing organisational arrangements, such as fi nancial assessments or customer payments.
Customer service
QRAA aims to satisfy our customers by being responsive to their needs, administering fi nancial assistance programs in a timely and effi cient manner, providing support and delivering results.
About us (cont.)
Performance and reporting
QRAA provides program data and reports to internal and external stakeholders. Quality control processes ensure accuracy of these reports and any statistical analysis that is undertaken.
Stakeholder engagement
QRAA undertakes proactive engagement of internal and external stakeholders and has a network of alliances across industry organisations and government.
Our valuesQRAA’s operations are governed by its commitment to six core values:
• continual improvement (excellence in the delivery of high quality, effi cient, timely and responsive services)
• equity (consistency, fairness and transparency)
• integrity (accuracy, security and confi dentiality of information supplied or obtained)
• responsibility (accountability to government, policy owners and the community)
• respect and recognition (recognition of the valuable contribution, creativity and dedication of staff )
• harmony and satisfaction (a safe, equitable and satisfying work environment).
Strategic intent
Strategic priorities
Vision
1. Cost leadership2. Service excellence3. Growth4. Capability
To achieve self suffi ciency
To be the preferred provider of government fi nancial programs and services
10 | QRAA Annual Report 2010-1110 | QRAA Annual Report 2010-11
Board of Directors
Profi lesWayne Carlson Chairperson since June 2011/Director since December 2009
Wayne Carlson brings to the Board 35 years experience in the banking and fi nance sector. Rural and agribusiness industries have been the focus of his career with the National Australia Bank (NAB) as he served in management and senior management roles across the length and breadth of Queensland.
He was appointed General Manager, NAB Agribusiness in 2005 where he held responsibility for the administration of this business across Australia. He played key roles in development and implementation of network structure, strategic initiatives, policy, planning and budget control, product innovation, human resource management and service delivery.
Joy Cooper Director since February 2005
Joy Cooper is a professionally qualifi ed accountant with over 30 years experience, mainly in Queensland’s electricity supply industry. She has held senior fi nancial and management positions within Ergon Energy and its predecessor organisations in Mackay.
Joy has considerable experience with audit and risk management committees in both the superannuation and electricity industries and currently uses this experience in her role as an independent adviser to the Audit and Compliance Committee of an industry superannuation fund.
Sarah Israel Director since June 2011
Sarah is currently a professional director and consultant in the public and private sectors. Her career has covered three streams of experience and expertise – two in industry terms; banking and regional development, and the third in corporate governance. She is currently Advisor to the Governor, Southern Highlands Province, Papua New Guinea.
Throughout the last two decades, Sarah has maintained directorships with substantial organisations in Australia. Public sector roles, coupled with directorships and management positions in banking, export credit, funds management and international trade, have contributed to her eff ectiveness in infl uencing the structure, culture, policies and procedures, and performance of Government owned corporations and private sector entities on commercial principles.
John Pollock Director since June 2011
John Pollock has 35 years experience in agribusiness mainly in the Queensland sugar industry. From a fi nancial background, he held senior fi nance roles in both CSR and Mackay Sugar before appointments as Chief Executive Offi cer of Mackay Sugar and the industry marketing body Queensland Sugar.
These appointments covered a period of rapid change in the sugar industry as a result of deregulation. His major contribution during this period was to facilitate producer management of sugar price risk.
Sue Ryan Director since August 2004
Sue Ryan is the Deputy Director-General (Energy), Mines and Energy, Department of Employment, Economic Development and Innovation. Sue holds a Bachelor of Business degree and worked in the banking industry for 17 years before joining the Queensland Public Service in 1992.
Sue was previously an Assistant Director-General in the former Department of Primary Industries and Fisheries where she was responsible for the development of strategies and programs that guide industry development and promote exports, trade and market opportunities. Sue is also a Director of the Australian Agricultural College Corporation.
QRAA Annual Report 2010-11 | 11QRAA Annual Report 2010-11 | 11
Georgie Somerset Director since June 2011
Georgie Somerset is a rural leader with experience in agribusiness, rural tourism and regional development. Her specialities are identifying opportunities, resolving issues and creating linkages and networks across various sectors.
Actively involved in a family owned beef property in southern Queensland, Georgie is President of the Queensland Rural Women’s Network and is a member of the National Rural Advisory Council (NRAC).
A fellow of the Australian Rural Leadership Foundation and the Australian Institute of Company Directors, Georgie is also involved in several community committees and organisations.
Alan Tesch Director since December 2003
Alan Tesch has some 30 years experience in senior positions across the Australian public sector, with his principal focus being on national and state government public policy development, implementation and service delivery across the fi nance, economic, transport and energy sectors.
Currently Alan is the National Transport Reform Co-ordinator, National Transport Commission, with a mandate to improve productivity, effi ciency and safety across the transport network, under the Council of Australian Governments (COAG) transport reform agenda. Over the period 2004 – 2010, Alan held a range of senior positions in the roads and transport portfolios of the Queensland State Government, including as the Chief Executive of Main Roads since 2005.
Graham Davies AM – Chairperson Chairperson - December 2000 - June 2011
As Chairperson of the QRAA Board, Graham was responsible for reporting to the Minister for Food, Agriculture and Regional Economies on the performance of QRAA’s functions. Graham was also Chairman of the Mackay Port Authority until 30 June 2009 and is a Director of North Queensland Bulk Ports. He also sits on the Board for the Cerebral Palsy League of Queensland.
Graham was previously Chairman of the Board for Mackay Sugar Cooperative Association Limited for 16 years and has over 40 years experience as a non-executive director on sugar industry boards, together with various companies and cooperatives. A Mackay district canegrower for 40 years, Graham owns and operates property in the Mackay and Burdekin districts.
Matthew Hood Director - September 2005 - June 2011
Matthew Hood is a primary producer from Gatton, focusing on small crop production. He is part of a family business, which has production areas in Lowood, Fernvale, Clifton, Stanthorpe, Bowen, Ayr, and the Northern New South Wales region and the business also runs cattle and dry land grain farms.
Matt was previously a civil engineer before returning to the land approximately 15 years ago. He has been involved in a number of industry committees and companies during this time, particularly those relating to export and water management issues. Matt is currently a Director of Fresh Force Pty Ltd and Rugby Farms Pty Ltd.
Richard Stevens OAM Director - July 2005 - June 2011
Richard Stevens brought to the Board, expertise in fi sheries management having over 30 years experience in this industry. He is currently a Commissioner of the Australian Fisheries Management Authority and a Board Member of the Fisheries Research and Development Corporation.
Richard was Director of Fisheries in South Australia from 1980 to 1987, Managing Director of the Australian Fisheries Management Authority from 1992 to 1998 and Deputy Chief Executive of Primary Industries and Resources South Australia from 1998 to 2000.
Retiring Board members
12 | QRAA Annual Report 2010-1112 | QRAA Annual Report 2010-11
Senior Executive Team Business units
Colin HoldenChief Executive Offi cer
The Chief Executive Offi cer reports to QRAA’s Board of Directors and the Minister for Agriculture, Food and Regional Economies. He is responsible for leading and managing the aff airs of QRAA including strategically positioning QRAA to achieve organisational and fi nancial goals and implement Board policy.
- Offi ce of the Chief Executive Offi cer
Tony O’Dea
General Manager Program Delivery Services
Program Delivery Services delivers fi nancial assistance programs that support the profi tability and sustainability of the rural and regional sector. Program Delivery Services also delivers programs in response to emergencies and natural disasters and fosters strong relationships with community and industry.
- Account management
- Customer relations
- Program delivery
- Securities
Peter WeekesGeneral Manager Corporate Strategy and Support
The Corporate Strategy and Support division develops and manages QRAA’s systems,infrastructure and policies in the areas of corporate governance, fi nance, human resources and information services. It facilitates planning, performance improvement, strategic communications and business development.
- Business development and marketing
- Corporate governance and planning
- Finance
- Human resource services
- Information services
- Performance and reporting
Organisational structure
Minister for Agriculture, Food and Regional Economies
QRAA Board of Directors
QRAA Annual Report 2010-11 | 13QRAA Annual Report 2010-11 | 13
CorporateCorporategovernancegovernance
“During 2010-11, QRAA continued to focus on the development and review of its corporate policies and procedures...
This ensures ongoing compliance with legislation and government directives, audit outcomes and best practice.”
Policy frameworkDuring 2010-11, QRAA continued to focus on the development and review of its corporate policies and procedures in line with a three-year cyclical work plan. This ensures ongoing compliance with legislation and government directives, audit outcomes and best practice.
Policies approved by the QRAA Board of Directors are implemented throughout QRAA through education and training, monitoring and review mechanisms.
Strategic planningQRAA undertakes its annual organisational strategic planning, reporting and performance measurement processes in accordance with the QRAA Strategic Planning and Performance Framework. This framework aligns with whole-of-government budget and reporting frameworks and timeframes.
The QRAA Strategic Plan 2010-14 has a four-year strategic focus and provides the framework for the QRAA Board and staff as they work towards achieving QRAA’s vision to be the preferred provider of government fi nancial programs and services.
Kylie GeeSenior Administration Offi cer, Program Delivery Support
14 | QRAA Annual Report 2010-11
Corporate governance (cont.)
Strategic planning
Identifi es specifi c corporate priorities for the year
Provides strategic direction over the long term
Support delivery of strategic plan and corporate plan
Stra
teg
ic P
lann
ing
Proc
ess Annual report
Informs SET & Board of how we are performing against targets
Informs Senior Executive Team (SET) & Board of performance against targets over the quarter
Summary of performance against targets & priorities
Outputs
Strategic planning (cont.)QRAA’s high level strategies focused on cost leadership, service excellence, growth and capability.
Operational plans for 2010-11 were prepared by each of QRAA’s business units. Strategies and key activities were identifi ed that aligned to the QRAA Strategic Plan 2010-14 and contributed to the achievement of QRAA’s strategic priorities. During this year, focus was also placed on the alignment of Personal Development Plan (PDP’s) for each staff member to the QRAA Strategic Plan. All individual activities and performance outcomes contained within each staff member’s PDP related to one or more of QRAA’s four high level strategies.
The BoardQRAA’s Board of Directors is formally accountable to the Minister for Agriculture, Food and Regional Economies for the performance of the organisation.
The Board’s principal function is to ensure QRAA’s established goals and strategic direction are developed, implemented and managed. Consequently, the Board is primarily responsible for how QRAA performs its functions and exercises its powers.
The Board’s role includes:
• approving strategies and operational, administrative and fi nancial policies
• ensuring QRAA performs its functions properly, eff ectively and effi ciently
• annually reviewing the performance of QRAA’s Chief Executive Offi cer.
Although the Board seeks input from industry bodies, other government agencies and the wider public, the Board has control of and accepts full responsibility for policy formulation.
Appointments
The Board consists of seven directors, including representatives from the Department of Employment, Economic Development and Innovation, Queensland Treasury and industry.
Directors are appointed for a term no longer than three years. This appointment can end at any time as directed by the Governor in Council. A director is appointed on a part-time basis and is entitled to the remuneration and allowances fi xed by the Governor in Council.
Board meetings
Under the Rural and Regional Adjustment Act 1994, the Board must meet at least once every three months and the Chairperson may at any time call a Board meeting. The Board held a number of meetings in regional Queensland to provide directors with an opportunity to visit local industries and QRAA customers. The Board met nine times over the past 12 months for board meetings, regional visits, workshops and strategic planning sessions.
Environmental scan
Strategic plan
Corporate projects plan
Business unit plans
Staff performance and development plans
Quarterly reports
Monthly reports
Supports staff contribution to strategic priorities
Identifi es trends and opportunities to be considered in planning stages
QRAA Annual Report 2010-11 | 15
Corporate governance (cont.)
Board committees
The Board has two sub committees that support its decision-making, with each having a defi ned charter. These are the Audit and Risk Management Committee and the Remuneration Committee.
Audit and Risk Management Committee
The Audit and Risk Management Committee consists of three directors with the Chairperson and Chief Executive Offi cer attending as ex-offi cio members. The Committee met fi ve times during 2010-11.
The Committee undertakes independent reviews to improve QRAA’s operations and outputs and advises the Board on:
• fi nancial statements
• risk management
• internal controls
• performance management
• internal and external audit
• compliance
• reporting.
Remuneration Committee
The Remuneration Committee includes two directors and meets annually, with the Chief Executive Offi cer attending as an ex-offi cio member. As part of the budget process, the Committee reviews and advises the Board on the performance of senior management by means of a remuneration review.
Measuring performance
The Remuneration Committee and the Board periodically review the performance of QRAA’s Chief Executive Offi cer and other senior executives. Each year, performance goals and strategic targets are established as a result of the Board’s strategic planning and budgeting process and are subsequently subject to endorsement by the Minister for Agriculture, Food and Rural Economies. Organisational performance is monitored and reported against objectives and targets as set out in QRAA’s Strategic Plan.
Managing business risk
QRAA closely manages its exposure to signifi cant business risk and has policies and procedures in place with respect to fi nancial risk, crisis management, health and safety and the environment.
Board member
Board meetings Audit and Risk Management Committee meetings
Remuneration Committee meetings
Strategic planning workshop
Eligible to attend
Attended Eligible to attend
Attended Eligible to attend
Attended Eligible to attend
Attended
Wayne Carlson 9 9 1 1 1 1 1 1
Joy Cooper 9 9 5 5 1 1 1 1
Graham Davies 8 6 4 3 - - 1 1
Matthew Hood 8 5 4 4 - - 1 1
Sarah Israel* 1 1 - - - - - -
John Pollock* 1 1 - - - - - -
Sue Ryan 9 4 - - - - 1 -
Georgie Somerset* 1 1 - - - - - -
Richard Stevens 8 7 - - - - 1 1
Alan Tesch 9 6 5 4 - - 1 1
*Board member since June 2011
16 | QRAA Annual Report 2010-11
Ethical standards
QRAA requires all directors, management and employees to act with integrity and objectivity and to maintain high standards of ethical behaviour in the execution of their duties. From 1 November 2010 amendments to ethics principles and values in the Public Sector Ethics Act 1994 became eff ective.
During 2010-11 , the QRAA Code of Conduct was revised to align with the new ethics principles and values.
The QRAA Code of Conduct requires offi cers to:
• act with integrity and impartiality, ensuring high standards of workplace behaviour and personal conduct
• promote the public good through excellence in customer service, community engagement and working with other agencies
• commit to the system of government through conscientious service to QRAA and government
• act with accountability and transparency to support high standards of administration.
Throughout the past year, 17 QRAA policies and procedures were reviewed. These support the QRAA Code of Conduct as well as strengthening compliance with the Public Sector Ethics Act 1994. These policies addressed topics such as fraud management, information data security management, public interest disclosure, complaints management and responsible use of the internet and email. The QRAA Code of Conduct and all policies and procedures are promoted regularly and are available to staff on the QRAA intranet. To support the implementation of the revised QRAA Code of Conduct, employees acknowledged they had read and understood the Code. All policies and procedures are referenced to the Code.
GovernanceRight to information and privacy
QRAA supports the principles of the Right to Information Act 2009 (RTI Act) and the Information Privacy Act 2009 (IP Act) by operating in an open, transparent and accountable manner while protecting the privacy of clients and staff . QRAA is committed to releasing as much information as possible and provides access to information, in accordance with the legislation, as well as published information available on the QRAA website.
During 2010-11, QRAA processed eight requests for access to information, six of these were processed in accordance with the IP Act. The remaining two requests were processed in accordance with the RTI Act, and given the nature of the information, QRAA was not required to provide a disclosures log.
Information systems and recordkeeping
Information systems and recordkeeping are an important part of QRAA’s management of the application and assessment processes for both program owners and customers receiving loans, grants or rebates. Information systems and recordkeeping are managed in accordance with the Public Records Act 2002 and other key information standards, policies and guidelines that form the Queensland Government Recordkeeping Policy Framework.
Whistleblower protection
With the repeal of the Whistleblowers Protection Act 1994 and the introduction of the Public Interest Disclosure Act 2010 (PID Act) on 1 January 2011, the way in which public interest disclosures are to be publically reported has changed. From 1 January 2011 agencies are no longer required to report public interest disclosures in annual reports.
Under section 61 of the PID Act, the Public Service Commission (PSC) is now responsible for the oversight of public interest disclosures and
preparing an annual report on the operation of the PID Act. From 1 January 2011 agencies are required to report information about public interest disclosures to the PSC. The PSC will prepare an annual report on the operations of the PID Act and the information provided by agencies. The annual report will be made publicly available after the end of each fi nancial year.
The Whistleblowers Protection Act 1994 provided protection to QRAA employees who disclosed any information relating to such areas as
danger to public health and safety, danger to the environment, or unlawful or improper conduct that aff ects QRAA. There were no public interest disclosures during the period 1 July 2010 to 30 June 2011.
Workplace health and safety
QRAA is committed to maintaining a healthy and safe workplace and is bound by the Workplace Health and Safety Act 1995, Workplace Health and Safety Regulation 2008 and relevant codes of practice.
All QRAA employees are provided with training in how to perform their work safely and without risk to their own or others’ health and safety. New employees are informed about the Act through an induction program while QRAA’s workplace health and safety offi cers, workplace rehabilitation offi cers and fi rst aid attendants are provided with necessary training to ensure they carry out their duties as required by the Act and QRAA.
The QRAA Workplace Health and Safety policy and procedure and QRAA Safe Driving policy and procedure were reviewed and updated to support implementation of workplace health and safety strategies.
To support the wellbeing of QRAA staff an infl uenza vaccination program was undertaken.
Corporate governance
“During 2010-11, 17 QRAA policies and procedures were reviewed...”
QRAA Annual Report 2010-11 | 17
Carers (Recognition)
In accordance with the Carers (Recognition) Act 2008 and principles outlined in the Carers Charter, QRAA through its statutory obligations under the Rural and Adjustment Act 1994 is not in a position to develop or implement services to the carers community directly.
QRAA does have internal workfl ow practices that allow for compliance with the Carers Charter principles including the Queensland Rural Adjustment Authority Award 2010, fl exible working arrangements and QRAA’s Leave Policy.
QRAA’s Leave Policy specifi cally identifi es carers leave as an endorsed leave type for employees with responsibilities in relation to either members of their immediate family or members of their household who need care and support.
Employees are made aware of QRAA’s approach to workforce practices that support carers through our induction program and staff meetings on the release of new policies.
Complaints management
QRAA is committed to ensuring that all complaints received internally and externally are taken seriously and handled effi ciently and fairly.
During 2010-11, the QRAA Complaints Management Policy was reviewed with changes being made to the QRAA website. The policy outlines the process for making a complaint to QRAA and QRAA’s commitment to resolving complaints including the timeframe for acknowledging the complaint, progress and feedback on the complaint resolution and assessment and handling the complaint in a confi dential manner. On a quarterly basis, senior management monitor complaint trends and implement improvements as required.
Risk management
QRAA has in place a risk management framework which provides a suite of documents that ensure employees have a thorough understanding of the organisation’s expectations regarding risk management responsibilities.
During 2010-11, the risk management reference group terms of reference and membership were reviewed, and all members were provided with training on the QRAA risk management framework. This ensured a consistent understanding of the way risks are identifi ed, mitigated and treated.
The primary role of the risk management reference group is to assist the Senior Executive Team and the Audit and Risk Management Committee to:
• promote and further develop the risk management framework throughout QRAA and act as risk champions to foster a culture of risk management
• review and consider the requirements and issues raised applicable to legislation, standards and guidelines
• eff ectively manage, monitor and review the organisation’s risk exposures and treatments
• promote QRAA’s emergency and business continuity management preparedness
• review fraud and corruption management practices
• identify risks and opportunities that QRAA may encounter and develop appropriate action plans to manage those risks and opportunities.
QRAA’s Corporate Risk Register 2010-11 was approved by the Audit and Risk Management Committee and the QRAA Board and is reviewed and updated on a quarterly basis. During the operational planning process the Corporate Risk Register is updated, including the identifi cation of any further risk treatments to be incorporated into operational plans.
As the Manager Corporate Governance and Planning, Linda Campbell is playing
an important role in ensuring our structures, systems and processes are managed in an
open and accountable way.
Manager Corporate Governance and Planning
Linda Campbell
18 | QRAA Annual Report 2010-11
Carbon management
During 2010-11, QRAA continued the implementation of the Strategic Carbon Management Plan with the aim of helping to reduce Queensland’s carbon footprint. The Strategic Carbon Management Plan provides strategic directions and related actions that QRAA plans to implement for the purpose of reducing the environmental impact of the organisation. The action plan for 2010-11 highlights specifi c actions that business units within QRAA will undertake to address strategies relating to energy savings, reducing use of resources and waste production and enhancing reporting initiatives. One action being implemented is the rollout of the ‘thin client’ information technology project which has the potential to deliver energy savings of 75 per cent over that of existing desktop computers in QRAA.
Corporate Governance
Legislative reviews
Rural and Regional Adjustment ActThe review of the Rural and Regional Adjustment Act 1994 (RRA Act)was undertaken during 2010-11. This review considered whether the objectives of the Act continue to be relevant and the provisions in the Act concerning functions and powers are appropriate to enable QRAA to continue to operate eff ectively. The review process will be fi nalised in 2011-12.
Rural and Regional Adjustment Regulation
The regulation provides the statutory basis for QRAA to administer fi nancial assistance schemes under the RRA Act and essentially formalises policy decisions made by the government. A review of the Rural and Regional Adjustment Regulation 2000 (RRAR) commenced during 2010 as part of the legislative requirement to review regulations every 10 years.
The review was undertaken by the Department of Employment, Economic Development and Innovation in consultation with QRAA, government stakeholders and industry.
The fi ndings of the review will guide the development of the revised RRAR. The matters considered by the review included:
• conformity with, and functions of the RRA Act
• expired schemes
• natural disaster schemes
• drought policy implications
• assistance to individuals
• contemporary drafting practice.
QRAA Annual Report 2010-11 | 19
“We have established a set of performance indicators to improve our performance over time.
As part of the strategic planning process, QRAA sets annual targets for each of these key performance indicators.”
Our performanceThroughout the past fi nancial year QRAA has performed well as an eff ective administrator of government programs. We have established a set of performance indicators to improve our performance over time. As part of the strategic planning process, QRAA sets annual targets for each of these key performance indicators.
We have met or exceeded seven of our nine standard performance indicators established under the key priorities of cost leadership, service excellence, growth and capability.
The results are a refl ection of how QRAA staff have eff ectively managed workloads with an unprecedented number of challenges following signifi cant natural disasters across Queensland.
Despite these challenges, QRAA approved more than $195.9 million (24,459 applications) in grants, loans, rebates and subsidies on behalf of policy owners. This is a 97 per cent increase in funding administered with more than 10 times the number of applications approved than in the 2009-10 fi nancial year.
Our Our performanceperformance
Ken AllenLoans Offi cer, Program Delivery
20 | QRAA Annual Report 2010-11
Our priorities
Our objectives Measuring performance
1. Cost leadership
Increase operational effi ciencies to improve our competitiveness
Arrears to loan portfolio
Operating expenditure performance
Operating revenue performance
2. Service excellence
Maintain and continuously improve the quality and timeliness of service delivery to meet the needs of our external and internal stakeholders
Client satisfaction with QRAA’s services
Program owner satisfaction with QRAA’s administration
Applications processed within standard response indicators
3. Growth Maximise uptake of current Queensland programs Productivity loan approved amount
Growth of productivity loan portfolio
Secure new programs in Queensland and Australia New programs administered
Increase stakeholder engagement and partnership opportunities
Awareness of QRAA in Queensland
4. Capability Ensure that the capabilities of our staff are aligned to business requirements
Staff achievement within personal development plans
Ensure that our business systems and processes are aligned with business requirements
Information Services service response
Core system availability
Commit to a culture that empowers and motivates our staff to excel
Staff satisfaction rating
Performance summary
QRAA Annual Report 2010-11 | 21
ACHIEVED NOT ACHIEVED 2010-11 target/
estimate
2010-11 actual
Commentary 2011-12Target/
Estimate
3% 1.03% QRAA continues to perform well in keeping loan arrears within the established target of 3%. The 1.03% result was achieved as a result of constantly monitoring the loan portfolio, adhering to strict QRAA policy guidelines and working with customers to address any fi nancial issues.
3%
0% -14.45% This unfavourable variance is attributed to the additional costs of temporary and casual employees engaged for QRAA’s administration of disaster-related events and the Queensland Government Solar Hot Water Rebate Scheme.
0%
0% 27.41% This favourable variance refl ects reimbursement by Queensland Treasury to cover additional costs for disaster-related events, fees from the Queensland Government Solar Hot Water Rebate Scheme and interest earned on investment funds and QRAA’s loan portfolio.
0%
80% 86.2% Based on the results of a biennial survey conducted in June 2010, satisfaction among primary producer and small business clients exceeds the established target of 80%.
80%
75% 90% The inaugural program owner survey conducted in November 2010 returned a 90% satisfaction outcome, well exceeding the 75% target.
75%
85% 79% QRAA performance in relation to this indicator has been impacted by the unprecedented volume of natural disaster applications due to the severe, widespread fl ooding and Cyclone Yasi. QRAA has received applications at a rate of approximately 10 times that of the January 2008 fl ooding event. QRAA responded to this exceptional situation by increasing staff numbers, streamlining procedures and making eff ective use of technology.
85%
95% 60.35% This outcome is largely due to the impact of the two natural disaster events which required primary producers throughout the state to focus on clean up and recovery activities. QRAA’s proposed marketing campaign scheduled to run between February and June 2011 was also impacted with marketing activity postponed to June/July.
95%
7% 4.7% 7%
3 7 The increase in the number of programs refl ects QRAA’s successful expansion into new sectors within Queensland and unprecedented natural disaster relief schemes.
3
80% 82.7% Based on the results of a biennial survey conducted in June 2010, there is a high degree of awareness of QRAA among Queensland primary producers. This result can be attributed to QRAA’s strong regional presence, eff ective promotional campaigns and longstanding industry relationships.
80%
80% - - Results to be recorded as performance plans are currently being completed for 2010-11. 80%
80% 93.8% Figures based on service desk jobs completed within standard response indicators compared to total number of service desk jobs.
80%
98% 99.3% Figures based on the time core systems are available compared to the total core business hours in the period.
98%
80% 83.3% Survey conducted in early 2011 with strategies being developed to address any areas for improvement in 2011-12.
80%
22 | QRAA Annual Report 2010-11
Strategic objective: Increase operational effi ciencies to improve our competitiveness
During 2010-11, QRAA business units continued to identify cost reduction strategies for their respective units and for the business. Tasks and activities were focused on cost-eff ectiveness and delivering effi cient services.
Arrears to loan portfolio
This year, arrears on the loan portfolio were at 1.03 per cent, compared to 0.8 per cent last year. This was achieved, despite the disaster events, by constantly monitoring the loan portfolio, adhering to QRAA policy guidelines and working with customers to address any fi nancial issues.
QRAA’s specialist Account Management team works to prevent or minimise customer payment debts in line with QRAA business obligations. The Account Management team is responsible for managing ‘at-risk’ accounts and actively assisted customers during the year with the management of their fi nances. Special arrangements were made for a number of customers experiencing diffi culty in meeting repayments following recent natural disasters.
QRAA took a proactive approach in writing to existing Tropical Cyclone Larry loan customers in the Cassowary Coast local government area who were most likely to have been aff ected by the impact of Tropical Cyclone Yasi. As the customers had been adversely impacted by Tropical Cyclone Larry in 2006 and then by Tropical Cyclone Yasi in 2011, QRAA initiated contact to determine if additional assistance was required to aid their recovery.
Operating expenditureTotal operating expenditure for 2010-11 was $139.89 million which included $12.07 million in administration expenses. Operating costs for the year were heavily impacted by signifi cant costs associated with the administration of programs that were not included in the 2010-11 budget. These costs were associated with the administration of the Special Disaster Assistance Scheme (Queensland Floods November 2010 - January 2011 and Tropical Cyclone Yasi) and the Queensland Government Solar Hot Water Rebate Scheme and amounted to $2.66 million.
All other operating costs incurred in 2010-11 including staff employment, property, transport, communication, information services equipment, advertising, audit fees, photocopying, printing and stationery were generally at or below budget for the year.
Priority 1 - Cost leadership
Operating revenue performanceTotal operating revenue for 2010-11 was $155.40 million which included $13.21 million in administration revenue. The major items in the administration revenue were:
• Department of Employment, Economic Development and Innovation (DEEDI) administered funding of $8.69 million
• fee for service revenue of $1.79 million
• recovery of $1.82 million from Queensland Treasury for QRAA’s disaster event related administration costs
• interest on investments and bank funds of $0.91 million.
DEEDI’s administered funding provided to QRAA during 2010-11 was in line with the budget. QRAA’s fee for service revenue continued to grow strongly and included:
• Exceptional Circumstances: $0.54 million
• Queensland Government Solar Hot Water Rebate Scheme: $0.72 million
• Special Disaster Flood Assistance (March 2010) Scheme: $0.48 million.
Interest on investments and bank funds included funds with Suncorp, Queensland Treasury Corporation and National Australia Bank, which generated interest earnings of $0.91 million.
Cost effi cienciesDuring 2010-11, the increased demand in workload and resources made it diffi cult to identify the full benefi ts of both cost and operational effi ciencies achieved this year.
Some signifi cant examples of approximate per annum cost effi ciencies achieved include:
• $20,000 from the Insurance Policy Review - reviewing coverage and going to market to identify cost-eff ective insurance solutions
• $2,500 from the reduction of the vehicle fl eet
• $5,000 from the review of facilities management services, including hygiene services, chilled water and records management
• $5,000 for the renegotiation of Human Resource Connx System.
• effi ciencies identifi ed in the development of reports, including the Human Resources Snapshot Report; service delivery data RAPID report and loan portfolio model
• the rollout of the Citrix ‘thin clients’ replacing personal computers has identifi ed signifi cant energy savings
• the Customer Liaison Offi cers improved the cost per application processing costs compared to the last fi nancial year.
“During 2010-11, QRAA business units continued
to identify cost reduction
strategies..”
Performance measure Target2010-11
Actual2010-11
Arrears to loan portfolio 3% 1.03%
QRAA Annual Report 2010-11 | 23
Priority 2 - Service excellence
Strategic objective: Maintain and continuously improve the quality and timeliness of service delivery to meet the needs of our external and internal stakeholders
ProgramsQRAA administers assistance programs including rebates, subsidies, grants and loans on behalf of Commonwealth and State Government agencies (program owners).
In 2010-11, QRAA provided a very high level of service to meet the needs of program owners, stakeholders and the community.
Program owner satisfaction
QRAA has a service standard target of 75 per cent program owner satisfaction with our administrative services.
To measure our performance, an inaugural survey was developed and distributed online in November 2010 to seek program owner satisfaction levels and perceptions of QRAA’s service attributes. The survey also obtained program owner awareness levels of QRAA’s past experience and service capabilities and whether or not they would recommend QRAA to another agency.
The survey was issued to 32 program stakeholders comprising of program managers and operational contacts across 12 assistance programs.
The survey returned a 90 per cent satisfaction outcome, well exceeding the 75 per cent target.
High perception ratings were returned across a range of attributes such as professionalism, effi ciency and responsiveness.
The survey indicated very high awareness of QRAA’s experience in administering programs but less awareness of QRAA’s more specialised assessment, marketing and settlement and payment services.
Ninety per cent of respondents also indicated they would recommend QRAA to another agency.
Looking aheadA working group was established to support a response to the survey outcomes and identify and implement improvement strategies where appropriate.
As this was an inaugural survey, further research and testing will be undertaken prior to the release of the next survey in 2012. This will ensure that survey questions meet best practice customer satisfaction survey principles and capture feedback that can help QRAA optimise service delivery and enhance the QRAA brand.
Performance measure Target2010-11
Actual2010-11
Program owner satisfaction 75% 90%
“QFF acknowledges the support and good work you and your team are
providing in servicing the recovery needs of the
primary sector and small businesses.”
Dan Galligan Chief Executive Offi cer
Queensland Farmers’ Federation
24 | QRAA Annual Report 2010-11
Priority 2 - Service excellence (cont.)
Customer satisfaction and awareness
In June 2010 QRAA commissioned an independent survey of primary producers and small business owners to clarify characteristics, behaviours, attitude, opinions and needs of its Queensland customer base. The survey specifi cally established levels of awareness amongst primary producers and satisfaction levels of recent and current clients (both approved and declined).
Five hundred primary producers and 200 small business owners participated in the survey, which found:
• 86 per cent of customers were very satisfi ed or satisfi ed with our service
• 90 per cent said they would refer QRAA to a friend
• customers said QRAA was good to deal with and staff were professional, helpful and informative
• over a third of customers dealt with QRAA’s regional staff when preparing their application.
The results have been pleasing and will be used to ensure QRAA continues to provide excellent customer service.
Performance measure Target2010-11
Actual2010-11*
Customer satisfaction 80% 86.2%
Awareness of QRAA in Queensland 80% 82.7%
*Survey commissioned in June 2010.
Processing response times
For each program QRAA administers, standard response indicators are set according to the complexity of the program, the application and subsequent assessment process and projected volume. The standard response indicators are measured in working days and at the date at which a formal decision has been made on an application.
QRAA aims to process 85 per cent of applications within the respective standard response indicator set for each program. Due to the unprecedented number of programs administered by QRAA this fi nancial year and the high application numbers, the result was 79 per cent.
Proactive recruitment of staff , streamlining of administrative processes and eff ective use of technology have assisted with minimising the impact of record application numbers.
Responsiveness following disastersQRAA continues to be responsive to community needs and feedback from stakeholders. Minister for Agriculture, Food and Regional Economies, Tim Mulherin, MP, advised the Queensland Parliament of changes QRAA made to the natural disaster assistance loan application form in response to feedback.
Minister Mulherin said “This small but important example of responsiveness is the type of change that is needed to keep our fl ood recovery on track.”
Performance measure Target2010-11
Actual2010-11
Applications processed within standard response indicators
85% 79%
“This small but important example of responsiveness is the type of change that
is needed to keep our fl ood recovery on track.”
Minister for Agriculture, Food and Regional Economies,
Tim Mulherin MP
QRAA Annual Report 2010-11 | 25
Communicating with customersQRAA is committed to informing current and potential customers of the assistance programs and services available through QRAA. The Customer Relations unit provides personalised and effi cient service and support to our customers.
Rural and regional outreachOur regional representatives ensure a strong presence throughout Queensland, delivering proactive solutions and assistance to customers and building excellent relationships with stakeholders.
Our Client Liaison Offi cers are based in Bundaberg, Innisfail, Kingaroy, Longreach, Mackay, Rockhampton, Roma and Toowoomba.
The ability of our Client Liaison Offi cers to provide support on-farm further demonstrates our commitment to customer service and ensures a sound understanding of customer enterprises, their goals and individual requirements.
Throughout the year, we coordinated and participated in a number of regional events. Our Client Liaison Offi cers attended more than 400 events across Queensland including fi eld days, seminars, meetings and community forums.
The QRAA Board undertook two regional tours, visiting local primary production enterprises as well as small businesses which had been aff ected by fl oods or Tropical Cyclone Yasi.
Our stakeholdersOur strong commitment to Queensland is reinforced through the relationship we have with government, industry, communities and customers. These relationships allow us to successfully implement and administer assistance programs for the benefi t of the Queensland economy.
Government partnerships We work closely with Commonwealth, State and Territory Governments across Australia. Our Chief Executive Offi cer and relevant managers liaise with representatives from government departments on a regular basis.
We establish formal protocols for our administrative services including service standards, communications and reporting processes.
QRAA actively works with government departments to assist with program concept development including establishing program design, conditions and eligibility criteria. QRAA also continues to work with the program owners to eff ectively administer the program and monitor performance and policy outcomes.
Highlights of 2010-11 included working with new government departments (Department of Communities and Offi ce of Clean Energy within the Department of Employment, Economic Development and Innovation) to administer programs to new target markets (non-profi t organisations and consumers) respectively.
Priority 2 - Service excellence (cont.)
QRAA’s Customer Service Offi cer, Jan Biddle is making it easier for customers to
access government assistance available through QRAA.
Customer Service Offi cerJan Biddle
26 | QRAA Annual Report 2010-11
Priority 2 - Service excellence (cont)
Industry alliancesOur relationship with industry partners continues to be important to our success as they provide us with vital information on current industry trends, issues and intelligence on potential new business opportunities. Key organisations that we worked with during the year included, Chamber of Commerce, AgForce, Queensland Farmers’ Federation, Queensland Dairyfarmers’ Organisation, Canegrowers and Growcom.
Marketing and communicationsQRAA has a team of media and communication professionals who deliver targeted, cost-eff ective communications to our customers.
Media coverageQRAA worked closely with Queensland media throughout the year to inform the community about programs administered by QRAA and the assistance available to them. Media attention was received across newspapers, television, radio and online for drought, fl ood and cyclone assistance, as well as for Board tours and temporary QRAA offi ces.
In 2010-11, the media had a signifi cant focus on Queensland’s natural disasters and regularly mentioned QRAA’s role in providing assistance to disaster-aff ected primary producers and businesses.
QRAA’s Chief Executive Offi cer, General Manager, Program Delivery Services and Client Liaison Offi cers featured on regional radio during the year promoting disaster assistance available through QRAA.
Online communicationQRAA’s website provides online visitors with updated information on our fi nancial assistance programs with links to fact sheets, guidelines and application forms.
Customers are able to search for programs based upon whether they are a primary producer, commercial fi sher, business operator or non-profi t organisation and can provide feedback via the ‘contact us’ webpage tool. The website was continually refreshed throughout the year with updates on program information, market research fi ndings and success enquiries. In 2010-11 we received more than 132,000 website hits, which is a 275 per cent increase on 2009-10 statistics.
Our newsletterOur newsletter, ‘Prime Focus’, continued to be a key communication method for sharing information with customers and stakeholders.
This year we focused on delivering the newsletter electronically, signifi cantly reducing printing and postage costs. We received a number of industry contributions for the newsletter this year, including from AgForce, Canegrowers and Queensland Dairyfarmers’ Organisation, displaying the strong relationship we have with industry.
QRAA produced a special edition of the newsletter in April highlighting the natural disaster assistance available through QRAA for primary producers, businesses and non-profi t organisations. This edition was distributed to customers along with a personal letter from QRAA’s Chief Executive Offi cer showing QRAA’s support for disaster-aff ected Queenslanders.
Freecall hotlineQRAA’s Freecall 1800 623 946 number is a dedicated hotline making it easier for customers to communicate with us. The hotline is operated by skilled staff who provide advice and information about assistance available through QRAA. In 2009-10, over 12,300 enquiries were received on the Freecall number and this increased by 236 per cent in 2010-11 to more than 41,400 enquiries. This increase is mainly due to the large call volumes received from January to March following widespread fl ooding and Tropical Cyclone Yasi.
QRAA staff across all business units were trained and supported to receive the overload of phone calls, reducing call waiting times and ensuring callers could speak to a QRAA representative without delay. For the fortnight following the fl ooding QRAA staff worked seven days a week to answer phone calls and assist with enquiries outside of traditional operating hours.
Dec 27 Jan 5 Jan 14 Jan 23 Feb 1 Feb 10 Feb 19 Feb 28 Mar 9 Mar 18 Mar 27
2,500
5,000
Website hits following natural disasters (December 2010 - March 2011)
QRAA Annual Report 2010-11 | 27
Program portfolio
PROGRAM OWNER PROGRAM APPLICATION APPROVALS
2009-10
#
2010-11
#
2009-10
$
2010-11
$
Variance
$
Productivity enhancement programs
Productivity loans
Queensland Government Development Loans* 130 44 $22,677,831 $8,398,959
Resource Management Loans* 22 12 $2,227,117 $1,207,750 First Start Loans* 70 43 $21,782,025 $15,090,619
Sustainability Loans - 33 - $7,787,632 New
Sustainable development programs
Commowealth Government
Great Barrier Reef Marine Park Structural Adjustment Package
4 - $4,345,502 - Closed
Queensland Government Vegetation Management - 1 - $100,000
Business Adjustment Scheme - Traveston Crossing and Wyaralong Dams*
6 2 $480,455 $103,000
Solar Hot Water Rebate Scheme - 10,140 - $7,237,800 New
Climate related programs
Natural disaster assistance
Commonwealth andQueensland Governments
(Natural Disaster Relief and Recovery Arrangements)
Special Disaster Assistance Scheme – Queensland Floods (November 2010 - January 2011)
- 9,436 - $65,521,065 New
Special Disaster Assistance Scheme – Tropical Cyclone Yasi
- 2,561 - $15,724,167 New
Queensland Floods (November 2010 - January 2011) - 72 - $10,449,795 New
Tropical Cyclone Yasi - 13 - $1,192,000 New
Exceptional Disaster Assistance Scheme – Queensland Floods (November 2010 - January 2011)
- 30 - $14,295,200 New
Exceptional Disaster Assistance Scheme – Tropical Cyclone Yasi
- 21 - $8,080,000 New
Special Disaster Flood Assistance Scheme (March 2010)*
828 1,517 5,586,528 17,797,988
Queensland Flooding and Cyclones (January to April 2010)
10 24 $1,581,000 $3,489,350
Queensland Bushfi res commencing 22 September 2009*
2 $107,875 Closed
Sunshine Coast, Gympie and Fraser Coast (April 2009)
2 - $190,842 - Closed
Cyclones Charlotte & Ellie (January and February 2009) 9 2 $1,532,500 $404,682
Special Disaster Flood Assistance Scheme (Cyclones Charlotte & Ellie) (January and Februrary 2009)
427 $5,129,960 Closed
Queensland Monsoonal Flooding (January and February 2008)
1 - $67,700 - Closed
Drought assistance
Commonwealth and Queensland Governments
Rural Adjustment Scheme - Exceptional Circumstances (primary producers and small business)*
887 472 $30,955,465 $16,099,938
Queensland Government Small Business Emergency Assistance 4 - $25,000 - -
Drought Carry-On and Recovery Loans* 32 36 $2,781,277 $2,973,752
Additional Irrigators Fixed Water Charges Rebate Scheme
23 - $17,134 - -
TOTAL 2,457 24,459 $99,488,211 $195,953,697
* 2009-10 fi gures have been amended to refl ect cancellations and adjustments that occurred during 2010-2011.
Priority 2 - Service excellence (cont)
28 | QRAA Annual Report 2010-11
Priority 2 - Service excellence (cont.)
Commonwealth/Queensland GovernmentExceptional Circumstances AssistanceQRAA administers Exceptional Circumstances (EC) assistance on behalf of the Commonwealth and Queensland Governments to primary producers and small businesses impacted by severe drought.
Over the past decade there have been a signifi cant number of declared EC areas in Queensland, allowing eligible primary producers and small businesses to access interest rate subsidies and income support.
In 2010-11, QRAA has approved more than $16 million (472 applications) in interest rate subsidies. From the beginning of the program to the end of June 2011, QRAA had approved $477 million in EC assistance.
Based on recommendations from the National Rural Advisory Council, the Commonwealth Minister for Agriculture, Fisheries and Forestry, advised the following closing dates for EC declared areas:
• 15 December 2010 - South West Queensland, Central Darling Downs and Northern Darling Downs
• 15 June 2011 - parts of both Carpentaria and Croydon Shires.
National reviewA national review of drought policy was commenced in 2008 with a drought pilot program being trialled in Western Australia until 30 June 2012 to assist producers manage and prepare for the impacts of drought. Findings from the pilot will inform the future of drought assistance nationally.
Audit reportIn 2011, the Australian National Audit Offi ce undertook an audit of drought assistance administered on behalf of the Commonwealth Department of Agriculture, Fisheries and Forestry. The Audit Report identifi ed that Queensland calculates the level of assistance assessed as being needed to mitigate the identifi ed fi nancial need. The audit also found that no overpayments were made by QRAA in this time.
“Queensland calculates the level of assistance assessed as being needed
to mitigate the identifi ed fi nancial need.”
The Auditor-GeneralAustralian National Audit Offi ce
Audit Report
$140m
$40m
$20m
$80m
$60m
$120m
$100m
Natural Disaster Relief and Recovery Arrangement Relief Measures
Drought assistance
06-07 07-08 08-09 09-10 10-11
Approval ($)
06-07 07-08 08-09 09-10 10-11
Approval (#)14,000
4,000
2,000
8,000
6,000
12,000
10,000
Program deliveryQRAA is a trusted partner in the delivery of a range of fi nancial assistance programs including productivity enhancement, sustainable development and climate related programs.
Productivity enhancement programs aim to increase the capability of primary producers to improve sustainable production, protect the environment, achieve self-reliance and strengthen Queensland’s rural and regional economy.
Sustainability related programs support primary producers and business owners to implement initiatives designed to ensure the long-term sustainability of Queensland’s natural resources.
QRAA’s climate related programs enable primary producers and businesses experiencing diffi cult circumstances, such as drought or natural disaster, to recover and continue enterprise operations.
Climate related programs
QRAA Annual Report 2010-11 | 29
Natural Disaster Assistance - declared areas
Natural Disaster AssistanceQRAA works under the ‘National Partnerships Agreement for Natural Disaster Reconstruction and Recovery’ and its Queensland specifi c governance arrangement principles.
The key output of this Agreement, which QRAA works towards, is the ‘economy’ priority area “recovery packages to support business and employment in fl ood and cyclone aff ected areas.”
QRAA successfully administered a number of joint Commonwealth/Queensland Government Natural Disaster Relief and Recovery Arrangement (NDRRA) assistance schemes in 2010-11.
In total, close to $137 million in NDRRA assistance was approved (13,676 applications) during 2010-11. This assistance was in the form of grants and loans to assist with recovery eff orts.
Priority 2 - Service excellence (cont.)
“We are committed to providing every assistance which is available to small businesses and primary producers to
assist them in rebuilding, replanning and recovering from the widespread effects of these natural disasters that have affected
various parts of Queensland.”Minister for Agriculture, Food and
Regional Economies, Tim Mulherin MP
Grants and low interest loans
Grants, low interest loans and exceptional disaster assistance
Tropical Cyclone Yasi and Queensland Floods (November 2010 - January 2011)
Exceptional disaster assistanceAn Exceptional Disaster Assistance grant and loan package was announced for eligible primary producers, businesses and non-profi t organisations who suff ered extreme damage from fl ooding or Tropical Cyclone Yasi.
QRAA worked with government, industry and community to eff ectively implement the new package which provided up to $650,000 for disaster assistance. At the end of June 2011, QRAA had approved 30 Exceptional Disaster Assistance applications ($14.30 million) for fl ooding and 21 Exceptional Disaster Assistance applications ($8.08 million) for Tropical Cyclone Yasi.
Natural disaster assistanceThe severity of the disasters saw 72 standard natural disaster assistance loans approved for fl ooding ($10.45 million) and 13 for Tropical Cyclone Yasi ($1.19 million).
Special disaster assistanceSmall businesses, primary producers and non-profi t organisations aff ected by the disasters were also eligible for grants up to $25,000 under the Special Disaster Assistance Scheme. These grants were off ered in two stages - up to $5,000 for immediate recovery and a further $20,000 to recover costs paid to help restore operations.
QRAA approved 9,436 applications ($65.52 million) for fl ooding and 2,561 applications ($15.72 million) for Tropical Cyclone Yasi.
A fi nancial hardship provision was established for those unable to pay for clean-up and restoration costs. In these cases, QRAA made payments direct to suppliers.
The Special Disaster Assistance Scheme, activated following fl ooding in March 2010, was extended a number of times to enable enterprise recovery. QRAA approved 1,517 applications ($17.80 million) in grants in the 2010-11 year.
30 | QRAA Annual Report 2010-11
Priority 2 - Service excellence (cont.)
“The new NDRRA arrangements require a higher proportion of the public funds to be supported by evidence of expenditure... In short, following Cyclone Yasi, there is increased rigour in accessing assistance packages.”
Major General, Mick SlaterGladstone Observer, 21 April 2011, p11
Natural Disaster Assistance (cont.)QRAA’s involvement in the administration of NDRRA assistance schemes included all aspects of program administration, from customer enquiries through to application design, marketing and communication, registrations, assessments, decision-making and payments.
A number of industry groups were vocal in their support of QRAA’s administration processing including the Queensland Reconstruction Authority. Major General Mick Slater, Head of the Queensland Reconstruction Authority said “the new NDRRA arrangements require a higher proportion of the public funds to be supported by evidence of expenditure... In short, following Cyclone Yasi, there is increased rigour in accessing assistance packages.”
The quality of QRAA’s assessments has remained very high despite being under extreme pressure due to new, larger and more complex businesses applying for the Exceptional Disaster Assistance or Natural Disaster Assistance loans. A much higher percentage of small businesses and businesses have applied for NDRRA loans than in previous years.
QRAA is pleased to have maintained a high standard of application processing with 79 per cent of applications processed within the standard processing response time targets.
BELOW: Rockhampton fl ood waters.
QRAA Annual Report 2010-11 | 31
QRAA assisted Queensland primary producers, businesses and non-profi t organisations with their disaster recovery by assessing applications and making payments direct to eligible applicants.
QRAA administered grants and loans under the jointly funded Commonwealth/Queensland Government Natural Disaster Relief and Recovery Arrangements which included Exceptional Disaster Assistance for the fi rst time.
HAIR ARCHITECT: David Howie prior to the re-opening at Fairfi eld Gardens Shopping Centre. Photo: Glenn Barnes, Courier Mail, 28 February 2011, p27
THEODORE COTTON FARMER: Peter French surveys the complete devastation of his cotton crop by the fl ood water. Photo: Mark Brake, The Courier Mail, 20 January 2011
FURNITURE CONCEPTS: Franz Braun owner during the rebuild at Rocklea. Photo: Darren England The Courier Mail, 21 July 2011
ABOVE: Flood-aff ected businesses in Toowoomba. Photo: Callum Johnson, The Chronicle.
Disaster recovery
32 | QRAA Annual Report 2010-11
Priority 2 - Service excellence (cont.)
Queensland Government
Solar Hot Water Rebate SchemeThe Queensland Government Solar Hot Water Rebate Scheme, announced by the Premier in April 2010, provides rebates of up to $1,000 to eligible Queensland households to replace their electric hot water systems with solar heaters.
QRAA administers application processing under the Queensland Government Solar Hot Water Rebate Scheme for the Offi ce of Clean Energy within the Department of Employment, Economic Development and Innovation. Administrative functions provided by QRAA include application assessment, appeals management, payment of rebates and customer service.
The Queensland Government Solar Hot Water Rebate Scheme is the fi rst consumer targeted and non-rural/regional-based scheme to be administered by QRAA. From commencing administration of the scheme in October 2010 to the end of June 2011 QRAA processed 14,379 rebate applications. This result has assisted in meeting the Queensland Government’s target of doubling the state’s use of solar energy more than three years ahead of schedule.
QRAA has retained high service standards and 99 per cent of applications have been processed within agreed response times and to a high level of accuracy.
Corrine Hunt is helping Queenslanders to “do the bright thing” by processing Solar Hot Water Rebate applications which will ultimately reduce greenhouse gas emissions.
Solar Hot Water Project Offi cerCorrine Hunt
As one of the Managers in Program Delivery Services, Bill Cosgrove provides leadership and advice on the delivery of effi cient fi nancial services which are administered on behalf of the Commonwealth and Queensland Governments.
ManagerProgram Delivery Services
Bill Cosgrove
QRAA Annual Report 2010-11 | 33
On Thursday 8 July 2010 the QRAA Rural Debt in Queensland Survey Results were offi cially released in Brisbane by the Minister
for Agriculture, Food and Regional Economies, the Honourable Tim Mulherin MP.
Rural debt in Queenslandreaches $15 billion
Rural Debt in QueenslandSurvey results 2009
Supporting Queensland Industry
Prepared byCommissioned by
The QRAA Rural Debt Survey is based on information supplied by major banks and Queensland-based lending institutions and includes all Queensland primary producers with borrowings.
The survey results showed the fi nancial sector has increased borrowings to Queensland agribusinesses by $3.24 billion or 27 per cent over the past two years to a total of $15.06 billion.
Mr Mulherin attributed this increase to the financial hardships faced by Queensland producers over the past two years, including drought and fl ood events.
“The diffi cult times, however, have not been a deterrent to growth within the industry,” Mr Mulherin said.
“Despite the global financial crisis and dramatic climatic conditions over the past few years Queensland agribusiness is growing as a key investment sector.
“There is optimism in the sector, with the survey fi nding more than 83 per cent of the total debt was classifi ed by the banks as ‘A’ and ‘B+’ rated debt, indicating borrowers are considered to be viable or potentially viable in the long term.
“This indicates that producers and banks have confi dence in the sector’s future,” he said.
The major fi ndings are outlined and further information can be obtained by downloading the survey results from the QRAA website www.qraa.qld.gov.au
“This indicates that producers and banks have confi dence in
the sector’s future.”
Major fi ndingsSize of debt
The total debt for 2009 reached $15.06 billion (an increase of $3.24 billion from 2007).
Regions
Three of the 10 regions in Queensland accounted for more than 65 per cent of the total increase in debt:
• Central - $797 million
• Maranoa/Western Downs - $702 million
• Central South Coast - $586 million
Industries
The major movements of debt per industry in the 2007-2009 period were:
• beef - $2,187million (67% increase)• grain - $388 million (12% increase)• horticultural trees crops - $301 million
(9% increase)
Mornington Shire Council
Cook Shire Council
Aurukun Shire
Council
Carpentaria Shire Council
Kowanyama Aboriginal
Shire Council
Pormpuraaw Aboriginal Shire Council
Napranum Aboriginal
Shire Council
Mapoon Aboriginal Shire Council
Torres Shire Council
Torres Strait Island Regional Shire Council
Northern Peninsula Area Regional Council
Lockhart River Aboriginal Shire Council
Hope Vale Aboriginal Shire
Council
Wujal Wujal Aboriginal Shire
Council
Tablelands Regional Council
YarrabahAboriginal Shire
Council
Palm Island Aboriginal Shire
Council
Etheridge Shire Council
Croydon Shire Council
Burke Shire Council
Doomadgee Aboriginal Shire
Council
Mount Isa City Council
Cloncurry Shire Council
McKinlay Shire Council
Richmond Shire Council
Flinders Shire Council
Charters Towers Regional Council
Winton Shire CouncilBoulia
Shire Council
Diamantina Shire Council
Barcoo Shire Council
Longreach RegionalCouncil
Burdekin Shire Council
Whitsunday RegionalCouncil
Isaac Regional Council
Mackay RegionalCouncil
Barcaldine RegionalCouncil
Central Highlands Regional Council
Woorabinda Aboriginal Shire
Council
Rockhampton Regional Council
Quilpie Shire Council
Bulloo ShireCouncil
Paroo Shire Council
Murweh Shire Council Roma Regional
Council
Blackall-Tambo Regional Council
Balonne Shire Council
Banana ShireCouncil
Goondiwindi Regional Council
Gladstone Regional Council
DalbyRegional Council
North BurnettRegional Council
Bundaberg Regional Council
311
313
3121
3122
314
321
332
Isaac RegionaCouncil
Central HighlandsRegional Council
Woorabinda Aboriginal Shire
Council
Roma Regional Council
Balonne Shire Council
Banana ShireCouncil
GoondiwindiRegional Council
DalbyRegional Council
al
Rockhampton Regional Council
Gladstone RegionalCouncil
North BurnettRegional Council
Bundaberg Regional Council
l
3222
Fraser Coast Regional Council
Cassowary Coast
Regional Council
Cairns Regional Council
Hinchinbrook Shire Council
Townsville City
Council
331
3221
Snapshot
Article as per QRAA Prime Focus, November 2010
34 | QRAA Annual Report 2010-11
Strategic objectives: Secure new programs in Queensland and Australia
Maximise uptake of current Queensland programs
Increase stakeholder engagement and partnership opportunities
Priority 3 - Growth
Growth and expansion plans
QRAA growth and expansion plans continue to be successful. In 2010-11, we entered into new markets (consumer), new business sectors (non-profi t organisations) and new locations (Brisbane/metropolitan).
The two year, high volume Queensland Government Solar Hot Water Rebate Scheme represents the fi rst scheme to be administered outside of QRAA’s traditional rural and regional scope.
The target of three new programs administered by QRAA was exceeded following the joint Commonwealth/Queensland Government announcements of a range of fi nancial assistance programs to primary producers and businesses aff ected by the 2010-11 natural disasters.
The assistance was extended to non-profi t organisations and QRAA administered grants and loans to this sector for the fi rst time.
In response to the unprecedented severity of the disaster events, a special measure (Exceptional Disaster Assistance) was activated. This measure was designed to provide support where standard Natural Disaster Relief and Recovery Arrangement relief measures were inadequate to assist with recovery.
QRAA worked with the Commonwealth and Queensland Governments and industry to eff ectively implement this ‘Exceptional Disaster Assistance’ program. This program was administered to both traditional and non-traditional sectors, that is, primary producers, small businesses (less than 20 full-time equivalent employees), businesses and non-profi t organisations.
The formation of our Business Development and Marketing team in 2009 has equipped QRAA with well defi ned business development frameworks and business indentifi cation skills.
This team continues to scope business opportunities throughout all jurisdictions and has developed a solid pipeline of potential business opportunies for QRAA.
TendersQRAA worked to further develop business tools and materials to support tender responses. All Business Development and Marketing team members undertook training in tender development to further strengthen QRAA’s capacity in this area. All tenders/proposals for the administration of interstate schemes will have regard to competitive neutrality obligations. QRAA has committed to obtaining approval from the Minister for Agriculture, Food and Regional Economies prior to submitting any interstate tenders to ensure the work aligns with government priorities.
Performance measure Target2010-11
Actual2010-11
New programs administered 3 7
Growth of productivity loan portfolio 7% 4.7%
“In 2010-11, we entered into new markets (consumer), new business sectors (non-profi t organisations) and new locations (Brisbane/metropolitan).”
QRAA Annual Report 2010-11 | 35
Priority 3 - Growth (cont.)
Stakeholder engagementTo support growth, stakeholder engagement activities are undertaken on a regular basis to build ongoing relationships with QRAA’s existing and potential program owners.
In 2010-11 stakeholder engagement activities resulted in the administration of schemes on behalf of the Offi ce of Clean Energy within the Department of Employment, Economic Development and Innovation, and the Department of Communities – both new relationships for QRAA within the Queensland Government.
In the interstate context, a partnership arrangement for mutual support was established with the New South Wales Rural Assistance Authority.
QRAA will continue to explore growth opportunities and ensure that both current and new program owners are aware of QRAA’s specialised assessment and administration capabilities.
Agentis AustraliaThe development of QRAA’s subsidiary brand, Agentis Australia, was further strengthened in 2010-11 through the activation of communication channels including email and the 1800 Agentis Freecall number. Interactions with interstate departments were held under the Agentis Australia brand with business and marketing material developed showcasing this alternative service delivery tool.
Agentis Australia may be used within Queensland to administer programs that are outside of QRAA’s traditional scope of business as well as interstate.
New programs administered by QRAA in 2010-11Program name Recipient Type
(grant/loan/rebate)Maximum assistance
1. Queensland Government Solar Hot Water Rebate Scheme Queensland consumers Rebate $600/$1,000
2. Natural Disaster Assistance Scheme– Queensland Floods (November 2010 - January 2011)
Non-profi t organisations Loan/grant package $105,000
3. Natural Disaster Assistance Scheme– Tropical Cyclone Yasi
Non-profi t organisations Loan/grant package $105,000
4. Special Disaster Assistance Scheme – Queensland Floods (November 2010 - January 2011)
Small businesses, primary producers, non-profi t organisations
Grant $25,000
5. Special Disaster Assistance Scheme – Tropical Cyclone Yasi Small businesses, primary producers, non-profi t organisations
Grant $25,000
6. Exceptional Disaster Assistance Scheme – Queensland Floods (November 2010 - January 2011)
Businesses, primary producers, non-profi t organisations
Loan/grant package $650,000
7. Exceptional Disaster Assistance Scheme – Tropical Cyclone Yasi
Businesses, primary producers, non-profi t organisations
Loan/grant package $650,000
Rod Hallam, Principal Business Analyst, is assisting with QRAA’s growth and expansion plans by identifying potential business opportunities and raising awareness of our service offerings.
Principal Business AnalystRod Hallam
36 | QRAA Annual Report 2010-11
Priority 3 - Growth (cont.)
Productivity loanThe provision of long-term, low interest rate loans strengthens Queensland’s regional economies and helps primary producers to improve their sustainable production, protect the environment and achieve self-reliance.
QRAA has administered Queensland Government loans under the Primary Industry Productivity Enhancement Scheme since 1988. QRAA provides full and complete administration of this Scheme, which includes management of loans of up to 20 years and design, delivery, implementation and evaluation of Queensland-wide marketing and communication activities.
The productivity loan portfolio has seen steady growth this fi nancial year. In total, 132 loans were approved at a total value of $32.48 million. The productivity loan portfolio has grown by 5.62 per cent against a target of 7 per cent, largely due to the impact of fl oods and Tropical Cyclone Yasi and the large number of primary producers focusing on clean-up and recovery.
ReviewThe Minister for Agriculture, Food and Regional Economies, Tim Mulherin MP, initiated a review of the Primary Industry Productivity Enhancement Scheme in 2009 to ensure the alignment with government policies and changing economic and climatic conditions.
The review saw the Development, Resource Management and First Start Loans merged into two loans - revised First Start and new Sustainability Loans. The maximum loan amount was increased from $500,000 to $650,000.
First Start LoanFirst Start Loans assist primary producers with purchasing their fi rst primary production enterprise, expanding or entering into leasing/sharefarming arrangements in the fi rst years of establishing their primary production enterprise.
As of 30 June 2011, 43 applications were approved at a total of $15.09 million. There were four applications approved for the purchase of the fi rst primary production enterprise.
Sustainability LoanThe Sustainability Loan, combining the Development and Resource Management Loans, has a focus on achieving greater productivity and long term sustainability. The Sustainability Loan assists with upgrades or operation expansion with farmers eligible for more activities to increase the sustainability on their farms, such as solar or other renewable energy systems.
Since the establishment of the Sustainability Loan, 33 applications were approved at a total of $7.79 million, and 44 Development Loans and 12 Resource Management Loans were approved during 2010-11 at a total of $9.61 million.
MarketingThe new loans were launched with a marketing campaign ‘Here for a changing landscape’ to portray positive messages about farming futures and improved seasons. The two-year campaign consists of direct mail to 12,500 primary producers, media advertising, event management, Client Liaison Offi cer outreach strategies and engagement with industry, professional networks and fi nancial institutions.
Above: QRAA marketing advertisement for First Start and Sustainability Loans
QRAA Breaking new ground
QRAA... Here for a changing landscape
Life on the land is not without challenges. So if you need finance to make a change for the better, consider QRAA’s First Start or Sustainability Loans. With no set up fees, no exit fees and no hidden costs, we have the loan to best suit your needs.
Loans up to $650,000 | Low interest rates | Up to 20 year repayment terms
Freecall 1800 623 946 to arrange a meeting with your local client liaison officer.
Freecall 1800 623 946 www.qraa.qld.gov.au
Growth of productivity loans
QRAA Annual Report 2010-11 | 37
Strategic objectives: Ensure that the capabilities of our staff are aligned to business requirements
Ensure that our business systems and processes are aligned with business requirements
Commit to a culture that empowers and motivates our staff to excel
Performance management frameworksQRAA consolidated existing planning, reporting and performance measurement activities into a strategic planning and performance framework. This framework details the activities, frequency, tools and templates that contribute to QRAA’s compliance with whole-of-government budgeting, and planning and reporting requirements.
During 2010-11, 17 key policies and procedures were reviewed and approved by the Senior Executive Team and the QRAA Board of Directors. Specifi c areas covered by these policies and procedures included:
• Code of Conduct
• Public Interest Disclosure
• Emergency and Business Continuity Management
• human resource policies including QRAA award related areas, employment separation, workplace health and safety and travel and accommodation
• governance and information management including complaints management, right to information, information privacy, information data security and internet and email use
• procurement.
Priority 4 - Capability
Our capabilityQRAA worked on improving its core strengths, capabilities and corporate governance and planning frameworks during 2010-11 supported by a number of strategic documents including:
• strategic planning and performance management frameworks
• corporate policies and procedures
• human resource management and workforce planning strategies.
Karl Tout Information Services Offi cer
38 | QRAA Annual Report 2010-11
Performance management frameworks (cont.)A review of fi nancial expenditure and human resource delegations was also completed to refl ect changes in QRAA’s organisational structure.
These policies and procedures are communicated to all staff and awareness of new policies and procedures are reinforced at monthly staff meetings.
Targeted training programs are conducted when specifi c policies require certain areas of compliance, for example, the Fraud Management Policy.
Business systemsQRAA’s technological systems were in constant demand during the year due to the additional number of staff employed and the increased workload following the 2010-11 natural disasters.
Changes to QRAA’s strategic direction and QRAA’s Act, evolving business and program owner needs and environmental infl uences have highlighted the need for QRAA’s information technology to be monitored and enhanced.
The move to implement new software including a virtual desktop environment and service desk software, which commenced during the previous year, were implemented in 2010-11.
Technological advancements
A range of QRAA’s information technology resources and systems were improved in 2010-11 including:
• storage area network (SAN) infrastructure expanded
• thin client (Citrix) rolled out across Brisbane offi ce
• website moved to a new host
• web portal developed for the Queensland Government Solar Hot Water Rebate Scheme to match make and model numbers
• mobile offi ces upgraded - regional Client Liaison Offi cer upgrades to their laptops (move to Windows 7) and mobile phones
• fi nancial software upgraded
• move to Windows 7 environment.
Comprehensive testing of enhancements to QRAA’s loan and grant software program was undertaken during the year. The level of activity associated with disaster events aff ected the timing of enhancements with further testing due to be undertaken in July 2011.
Further research and consultation was undertaken in regards to eservices - including writeable applications, online applications, and social media, with consideration due to be given to these in 2011-12.
Priority 4 - Capability (cont.)
Information data securityQRAA’s information technology resources are an important asset and are managed accordingly to ensure their integrity, security and availability under legislative requirements.
Applicant information is maintained on a large, detailed database which is managed in accordance with the Public Records Act 2002 and the principles of the Queensland Government Recordkeeping Policy Framework.
A new QRAA Information Data Security Management Policy and procedure was developed in 2010-11 to further strengthen QRAA’s governance of information data.
Consultation occurred both internally and externally in the development of this policy and procedure, which aims to reduce the risk of QRAA unknowingly relying on incorrect information data or being unable to access or trust information data.
The implementation of the policy and procedure supports the roll out of the Citrix ‘thin client’ project; assists with access management; and the management of portable storage devices. The adoption of increased restriction to USB drives will reduce risk and exposure to external viruses and loss of sensitive data.
Accompanying guidelines for Information Services business unit staff have also been developed to support the release of the policy and procedure. The implementation of the policy and procedure will be monitored with the staged testing of the Citrix client project providing opportunities for further feedback.
Disaster recoveryAn Information Services Disaster Response (ISDR) Plan was developed in association with QRAA’s Emergency and Business Continuity Management Plan. The ISDR Plan addresses the high level approach to disaster recovery with the technical and detailed processes developed as an internal support tool within the Information Services team.
The revised ISDR Plan enables QRAA to restore its core information systems and other key activities in the event of a disaster, and will contribute to identifying areas of substantial risk and exposure to disaster and mitigating the impact of these risks.
QRAA Annual Report 2010-11 | 39
2009-10 2010-11 MOVEMENT
Permanent 59.5 64
Temporary 11 41
Casual 4.2 18.2
Total (FTE) 74.7 123.2
QRAA employees by employment type (as at 30 June 2011)
Our peopleOur people“All of our staff demonstrated their commitment throughout the year to the programs and services we provide for Queensland.”
Providing a strong foundationOur people provide a strong foundation for delivering fi nancial and administrative services to Queensland due to their strong organisational knowledge, industry and fi nancial expertise. All of our staff demonstrated their commitment throughout the year to the programs and services we provide for Queensland.
In the 2010-11 fi nancial year there were no early retirement, redundancy or retrenchments undertaken.
As at 30 June 2011, we employed 123.2 full-time equivalent staff to perform a variety of duties across our business units as follows:
2009-10 2010-11 MOVEMENT
Management (A07 ) 14 14 -
Professional (A05/6) 42.4 64
Administrative ( to A04) 18.3 45.2
Total (FTE) 74.7 123.2
QRAA employees (as at 30 June 2011)
Program Delivery team members
40 | QRAA Annual Report 2010-11
Our people
Rising to challengesIn 2010-11, QRAA staff faced unprecented challenges in delivering services. Workload impacts arising from the natural disasters created an immediate staffi ng demand. This meant that a review of current staff workloads, roles and responsibilities needed to be undertaken to immediately identify the actions required to ensure QRAA could eff ectively deliver programs.
Strategies established to address workforce surge capacity requirements, including contacting experienced potential assessors on QRAA’s surge capacity register, proved highly eff ective, providing a source of temporary and casual staff to manage increased workload.
Staff roles and responsibilities were re-allocated to meet the changed business needs. A number of Brisbane staff temporarily worked at the community recovery centres across the state; regional staff participated in temporary offi ces; and Brisbane staff assisted with customer enquiries received via QRAA’s Freecall hotline.
Assistance was provided by the Assure Programs counselling service to ensure staff were well equipped to handle the increased workload and associated emotions with distressed customers following the natural disasters.
Developing professionallyQRAA focuses on professional development opportunities and in 2010-11 established a corporate training committee and training register to better coordinate training initiatives and monitor and report training requirements. This is an integrated approach which supports individual performance plans as well as QRAA’s strategic direction, ensuring staff have the appropriate skills and knowledge to meet future business needs.
Performance and development plansQRAA’s staff Performance and Development Plan (PDP) process commences in July each year. Each employee, together with their team leader or manager, develops a PDP in line with QRAA’s strategic plan and business unit plans. At the end of 2010-11, all permanent and long-term temporary employees had a PDP in place. The process has improved from last year with all training requirements reported and monitored via the corporate training register.
TrainingDuring the year, a number of QRAA staff undertook formal studies in fi nance, accounting, agribusiness, management and securities. Other staff participated in a range of professional development activities including computer training, tender training, assessing, job specifi c (technical training), and social media training.
QRAA places a high importance on training and developing staff to ensure the success of the organisation’s future leaders.
QRAA’s training committee has a key focus on organisational succes s ion p lann ing . Th i s commit tee worked across government to obtain a suitable training provider for QRAA’s emerging rural leaders.
Five QRAA Program Delivery Services staff participated in the Department of Employment, Economic Development and
Innovat ion’ s Cons t ruct i ve Team Leadership course from November 2010 to April 2011 at Kingaroy.
Th i s course i s a pract ica l work-based program providing information, strategies and skills required to enhance leadership capabilities.
Another four staff commenced the course in June 2011.
Emerging rural leaders
“In 2010-11, QRAA staff faced
unprecented challenges in
delivering services to Queensland. ”
Participants in the Constructive Team Leadership course: Adrian Post, Neil Currie, Scott Wilson, Shawn Arbuthnot. Absent: Brendan Hamilton
QRAA Annual Report 2010-11 | 41
Communicating with our staffCommunicating and sharing information with our staff has been critical this year, especially in response to an increased workload following the natural disasters.
Since January 2011, the Chief Executive Offi cer issued a number of electronic ‘Staff Communiques’ to update all staff on the impacts that fl ooding and Tropical Cyclone Yasi had on the organisation.
Other communication channels informing staff on organisational issues include:
• QNet: our intranet site provides key information on programs, business units, latest news, etc.
• CEO’s yarn: monthly update to staff online to provide an overview of achievements/work in progress and any other issues aff ecting the organisation.
• monthly, full-staff , team and management meetings: QRAA continued to hold monthly staff meetings to provide an opportunity to discuss work in progress. Manager meetings were held fortnightly.
• cross-functional project teams, supporting policies, new business and corporate projects.
These communication channels are supported by regular email updates and specifi c business meetings to ensure a high awareness of organisational direction and work issues.
Recognition of prior learningDuring the year, QRAA implemented training initiatives involving recognition of prior learning through Skilling Solutions Queensland and South Queensland Institute of TAFE, Roma.
At the end of December 2010, 17 staff had their qualifi cations upgraded to a higher accreditation - from a Diploma of Agriculture to a Diploma of Rural Business Management. One staff member had their Diploma of Agriculture upgraded to a Diploma of Management. This outcome has positioned QRAA well in responding to future rural and regional challenges.
RecruitmentIn total, 48.5 full-time equivalent (net) new staff members were recruited during the 2010-11 fi nancial year. The voluntary turnover rate was 4.8 per cent, down from the previous year (13 per cent). QRAA improved recruitment processes by establishing guidelines for selection panels, which were approved by the QRAA Board of Directors.
QRAA also drafted an Employee Value Proposition (EVP) which will be rolled out across position descriptions and recruitment advertisements next year. The EVP highlights the benefi ts of working for QRAA and its organisational off erings as a key driver behind staff attraction and retention strategies.
QRAA conducted a review of the Queensland Rural Adjustment Authority State Award 2003 to ensure the Award remained
current and up-to-date in terms of fairness, equity, effi ciency and best practice.
QRAA Award
Assistance was provided by Workplace Co n s u l t i n g Q u e e n s l a n d w i t h i n t h e Department of Justice and the Attorney-General, together with input from the Queensland Public Sector Union (QPSU) and QRAA staff.
In March 2011 the Queensland Industrial Re lat ions Commiss ion endor sed the revisions to the Award with the following representing the major improvements for QRAA employees:
• hours of work - the span of work hours has increased so that employees may start from 7 am when work requirements permit and as mutually agreed with their Manager;
• overtime payments - employees at level 6(1) and above may receive payment for overtime worked in critical circumstances;
• long service leave - the minimum period for taking long service leave has been reduced from two weeks to one week; and
• family leave - access to maternity, parental and adoption leave no longer requires a 12 month qualifying period for the unpaid portion of leave.
Snapshot
42 | QRAA Annual Report 2010-11
Workforce planningIn 2010, QRAA engaged the services of an external consultant to undertake a review of the QRAA’s workforce and develop a three-fi ve year workforce plan. The plan was presented to the Senior Executive Team in December 2010, and incorporates an organisation wide succession plan to ensure that current risks associated with the departure of key staff /positions across the organisation would be minimised.
The objectives of the plan support QRAA’s strategic direction by securing the right number of people with the right skills while allowing the opportunity for fl exible working arrangements.
The summary of recommendations are currently being considered for implementation.
Staff satisfactionStaff were invited to participate in the confi dential 2010-11 Employee Survey to identify the quality of work and job/workplace satisfaction.
Overall, staff were 83.3 per cent satisfi ed compared to a 74.1 per cent satisfaction rating established in 2009-10 - an increase of 9.2 per cent.
QRAA’s management team have committed to using the results of the survey to develop strategies to improve staff experiences and the working environment. These strategies will support one of our core values - harmony and satisfaction (a satisfying work environment), provide better communication, more consultation across business units, improved social activity and job specifi c (technical) improvements.
Employee benefi tsQRAA staff continued to access lifestyle services and benefi ts through the API Employee Benefi ts Program and the Assure Employee Assistance Program.
Staff continued to enjoy fl exible working hours and a number of arrangements were implemented across the organisation to accommodate staff needs including job sharing, and part-time and casual employment.
Looking aheadThe number of staff is demand driven and therefore is likely to change, however, as new business is secured workforce numbers may increase.
Staff professional development opportunities will continue to be supported with the performance development planning process to commence from July.
The recruitment of staff will see the Employee Value Proposition rolled out across position descriptions and advertisements, while the training committee will look to further implement a number of work initiatives in 2011-12.
Our people (cont.)
“Overall, staff were 83.3 per cent satisfi ed compared
to 74.1 per cent satisfaction in 2010.”
QRAA Annual Report 2010-11 | 43
Financial performance
44 | QRAA Annual Report 2010-11
Operating resultQRAA recognises grant revenue upon receipt in accordance with Australian Accounting Standard AASB 1004 and as a result of this accounting treatment there is often signifi cant time intervals between receipt of program funds and the distribution to clients. QRAA’s annual operating result is often materially aff ected and at variance with approved budgets and estimates as a result of these timing diff erences.
QRAA’s 2010-2011 operating surplus of $15.51 million refl ects the full impact of timing diff erences caused by the receipt of funds and client payments for specifi c programs occurring in diff erent fi nancial years.
Operating revenueQRAA receives contributions from the Australian and Queensland Governments to fund various programs it administers, based on agreements between QRAA and the program owners.
Total revenue increased in 2010-2011 to $155.40 million. Grants and other contributions increased from $20.78 million to $132.48 million. This increase was attributable to the administration of Natural Disaster Relief and Recovery Assistance Schemes as a result of devastating natural disasters.
Included in the contributions paid to QRAA are specifi c fees paid for QRAA to assess applications for assistance. Specifi c fees were received for the administration of schemes including Queensland Government Solar Hot Water Rebate Scheme, Exceptional Circumstances Assistance, the Business Adjustment Scheme for Traveston Crossing and Wyaralong Dam s and schemes under the Natural Disaster Relief and Recovery Assistance Program.
A contribution of $8.69 million towards the overall administration of QRAA was received from the Queensland Government. No fees are charged directly to our customers either for processing applications or for ongoing management of their loans.
Interest is earned by QRAA both on loans that it makes to its customers ($16.52 million) and funds it is holding for use in the various programs it administers ($6.39 million). All interest earned is redirected to the programs and is not used by QRAA to meet its administrative costs.
Operating expensesThe major expenditure item is grants and interest subsidies paid to customers under programs QRAA administers. This item increased from $56.42 million to $125.11 million in 2010-2011. This corresponds with the increase in the amount of grants and other contributions revenue in 2010-2011.
Employee expenses increased from $7.52 million to $9.23 million in 2010-2011 refl ecting the increase in employee numbers as a result of additional workload to administer the Natural Disaster Relief and Recovery Assistance Programs due to disaster events in 2010-2011. Supplies and services expenses also increased, from $2.43 million to $2.56 million as a result of increased workload.
Financial position
AssetsTotal customer loans increased from $283.24 million in 2009-2010 to $298.36 million in 2010-2011 refl ecting lending growth off set by a number of loans paid out ahead of their respective terms.
Customer loans approved under Productivity Loans increased from $198.57 million in 2009-2010 to $208.05 million in 2010-2011. Customer loans approved for Natural Disaster Relief and Recovery Assistance increased from $77.21 million in 2009-2010 to $82.65 million in 2010-2011.
LiabilitiesTotal external borrowings reduced from $149.02 million in 2009-2010 to $109.40 million in 2010-2011. This reduction was due to the equity injection made by Queensland Treasury to repay QRAA’s liabilities with Queensland Treasury and Department of Employment Economic Development and Innovation. During the year, $153.05 million of payables and borrowings were redeemed and repaid to QRAA’s external lenders.
Financial summary
FINANCIAL FIVE YEAR TREND
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
($’000) ($’000) ($’000) ($’000) ($’000)
Total income 268,812 307,381 174,119 42,034 155,399
Operating surplus 40,151 4,367 4,643 (26,639) 15,513
Grants and subsidies paid 212,863 289,173 154,904 56,416 125,106
Loans and advances 270,008 292,447 281,993 283,244 298,362
Income statement
Management discussion and analysis
QRAA Annual Report 2010-11 | 45
Statement of comprehensive incomefor the year ended 30 June 2011
2011 2010
Notes $’000 $’000
Income from continuing operations
Revenue
Grants and other contributions 2 132,480 20,774
Interest earned on loans and advances 3 16,516 15,523
Interest earned from investments 4 6,387 5,353
Other revenue 5 16 7
Total revenue 155,399 41,657
Other income
Reduction in provision of impairment for bad debts 10 - 169
Reduction in provision of impairment for impaired debts 10 - 208
Total income from continuing operations 155,399 42,034
Expenses from continuing operations
Employee expenses 6 9,227 7,515
Supplies and services 7 2,555 2,425
Grants and subsidies 8 125,106 56,416
Depreciation 9(a) 313 238
Amortisation 9(b) 12 68
Finance costs 11 1,638 1,613
Charge for discounted loans 10 710 -
Bad debts written off 10 325 398
Total expenses from continuing operations 139,886 68,673
Operating result from continuing operations 15,513 (26,639)
Other comprehensive income - -
Total comprehensive income for the year 15,513 (26,639)
The accompanying notes form part of these statements.
46 | QRAA Annual Report 2010-11
Statement of fi nancial position as at 30 June 2011
2011 2010
Notes $’000 $’000 Current Assets
Cash and cash equivalents 12 119,933 101,672
Loans and advances 13 27,055 26,994
Receivables 14 3,890 3,747
Prepayments 15 11 41
Total Current Assets 150,889 132,454
Non-Current Assets
Loans and advances 13 271,307 256,250Plant and equipment 16 664 846Intangible Assets 17 - 12Total Non-Current Assets 271,971 257,108
Total Assets 422,860 389,562
Current Liabilities
Payables 18 7,930 88,388Other fi nancial liabilities 19 16,604 65,671Accrued employee benefi ts 20 1,434 1,224Total Current Liabilities 25,968 155,283
Non-Current Liabilities
Other fi nancial liabilities 19 92,793 83,350Accrued employee benefi ts 20 231 226Total Non-Current Liabilities 93,024 83,576
Total Liabilities 118,992 238,859
Net Assets 303,868 150,703
Equity
Contributed equity 18 137,652 -Accumumlated surplus 166,216 150,703Total Equity 303,868 150,703
The accompanying notes form part of these statements.
Contributed equity
Accumulated surplus Total
$’000 $’000 $’000 Balance as at 1 July 2009 - 177,342 177,342Operating result from continuing operations - (26,639) (26,639)Other comprehensive income - - -Total comprehensive income - (26,639) (26,639)Balance as at 30 June 2010 - 150,703 150,703
Statement of changes in equityfor the year ended 30 June 2011
QRAA Annual Report 2010-11 | 47
Statement of changes in equityfor the year ended 30 June 2011 (continuation)
Notes
Contributed equity$’000
Accumulated surplus
$’000
Total $’000
Balance as at 1 July 2010 - 150,703 150,703Operating result from continuing operations - 15,513 15,513Other comprehensive income - - -Total comprehensive income - 15,513 15,513Transactions with Owners:- Equity injection by Queensland Treasury 18 137,652 - 137,652Balance as at 30 June 2011 137,652 166,216 303,868
The accompanying notes form part of these statements.
2011 2010
Notes $’000 $’000
Cash fl ows from operating activities
Infl ows:
Grants and contributions - Queensland Government 119,218 23,788
Grants and contributions - Australian Government 13,291 3,139
Interest received on investments 6,398 4,723
Interest received on loans and advances 16,193 15,795
GST collected from customers 8,013 111
GST input tax credits from ATO 2,175 5,830
Other 16 7
Outfl ows:
Grants and subsidies (125,106) (62,501)
Employee expenses (9,012) (7,541)
Supplies and services (2,517) (2,237)
Borrowing costs (1,638) (1,613)
GST paid to suppliers (2,036) (4,732)
GST remitted to ATO (260) (1,128)
Net cash provided by (used in) operating activities 22 24,735 (26,359)
Cash fl ows from investing activities
Infl ows:
Loans and advances repaid 56,161 62,269
Outfl ows:
Payments for plant and equipment (130) (419)
Loans and advances made (72,314) (63,541)
Net cash provided by (used in) investing activities (16,283) (1,691)
Statement of cash fl ows for the year ended 30 June 2011
48 | QRAA Annual Report 2010-11
Notesto and forming part of the fi nancial statements 2010-2011
Objectives and principal activities of QRAA
Note 1: Summary of Signifi cant Accounting Policies
Note 2: Grants and Other Contributions
Note 3: Interest Earned on Loans and Advances
Note 4: Interest Earned from Investments
Note 5: Other Revenue
Note 6: Employee Expenses
Note 7: Supplies and Services
Note 8: Grants and Subsidies
Note 9: Depreciation and Amortisation
Note 10: Movements in Provision for Impairment
Note 11: Finance Costs
Note 12: Cash and Cash Equivalents
Note 13: Loans and Advances
Statement of cash fl ows for the year ended 30 June 2011 (continuation)
Notes 2011$’000
2010$’000
Cash fl ows from fi nancing activities
Infl ows:
Borrowings 25,206 10,390
Equity injections 137,652 -
Outfl ows:
Borrowing redemptions (153,049) (16,276)
Net cash provided by (used in) fi nancing activities 9,809 (5,886)
Net increase (decrease) in cash and cash equivalents 18,261 (33,936)
Cash and cash equivalents at beginning of fi nancial year 101,672 135,608
Cash and cash equivalents at end of fi nancial year 13 119,933 101,672
Note 14: Receivables
Note 15: Other Assets
Note 16: Plant and Equipment
Note 17: Intangible Assets
Note 18: Payables
Note 19: Other Financial Liabilities
Note 20: Accrued Employee Benefi ts
Note 21: Reconciliation of Operating (Defi cit) Surplus to Net Cash from Operating Activities
Note 22: Financial Instruments
Note 23: Commitments for Expenditure
Note 24: Board Members’ Fees
Note 25: Contingencies
Note 26: Key Management Personnel and Remuneration
The accompanying notes form part of these statements.
QRAA Annual Report 2010-11 | 49
Notesto and forming part of the fi nancial statements 2010-2011
Objectives and principal activities of the Department
QRAA was established as a statutory body under the Rural and Regional Adjustment Act 1994.
The objective of QRAA is to be the preferred provider of fi nancial programs to rural and regional Queensland on behalf of the Australian and Queensland Governments. The principal activity of QRAA is to provide primary producers and small businesses with loans and subsidies including concessional productivity loans, industry adjustment programs, drought and natural disaster programs, small business emergency assistance, training and skills development assistance and regional development programs.
Note 1. Summary of signifi cant accounting policies
(a) Statement of compliance
QRAA has prepared these fi nancial statements in compliance with section 43 of the Financial and Performance Management Standard 2009.
These fi nancial statements are general purpose fi nancial statements, and have been prepared on an accrual basis in accordance with Australian Accounting Standards and Interpretations. In addition, the fi nancial statements comply with Queensland Treasury’s Minimum Reporting Requirements for the year ended 30 June 2011, and other authoritative pronouncements.
With respect to compliance with Australian Accounting Standards and Interpretations, QRAA has applied those requirements applicable to not-for-profi t entities, as QRAA is a not-for-profi t statutory body. Except where otherwise stated, the historical cost convention is used.
(b) Grants and contributions
Funds which are allocated to QRAA by the Government and are controlled by QRAA are recognised as revenues in the year in which QRAA gains control of the funds. This is generally on receipt with the exception of repayable advances received from governments for purposes of making loans.
(c) Cash and cash equivalents
For the purpose of the Statement of Financial Position and the Statement of Cash Flows, cash assets include all cash and cheques receipted but not banked at 30 June as well as deposits at call with fi nancial institutions. It also includes investments with short periods of maturity that are readily convertible to cash on hand at QRAA’s option and that are subject to a low risk of changes in value.
(d) Receivables
Receivables including loans and advances are recognised at the amount due at the time the amount is advanced. Interest earned on receivables is taken to account as it accrues.
Collateral in the form of mortgages, charges and liens are held as security against the loans.
(e) Bad and impaired debts
The collectability of receivables is assessed periodically with a provision being made for impairment. A specifi c provision for impaired debts has been raised for all identifi able doubtful debts based upon the likely shortfall between the outstanding amount and the expected proceeds of property secured by mortgage or other form of security.
Outstanding receivables are written off as bad debts at 30 June when there is no likelihood of recovery or the extent the outstanding amount exceeds the present value of the expected recovery from realisation of any security.
(f) Acquisition of assets
Actual cost is used for the initial recording of all non-current physical and intangible asset acquisitions. Cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the asset ready for use. However, any training costs are expensed as incurred.
(g) Plant and equipment
All items of plant and equipment with a cost or other value equal to the asset recognition threshold of $5,000 are recognised for fi nancial reporting purposes in the year of acquisition. Items of a lesser value are expensed in the year of acquisition.
(h) Revaluation and depreciation of non-current
assets
Land, buildings, infrastructure, major plant and equipment and heritage and cultural assets 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. At present, QRAA does not hold any assets that belong to these categories.
Plant and equipment, other than major plant and equipment, are measured at cost in accordance with Treasury’s Non-Current Asset Policies. The carrying amounts for plant and equipment at cost should not materially diff er from their fair value.
Separately identifi ed components of assets are measured on the same basis as the assets to which they relate.
Items of plant and equipment are depreciated over their estimated useful lives using the straight-line method of depreciation. For each class of depreciable asset the following depreciation rates were used:
Class Depreciation rates
Computer equipment 40%
Leasehold improvements 17%
Motor vehicles 25% - 33.3%
Offi ce equipment 10% - 17%
(i) Intangible assets
All intangible assets with a cost or value greater than $100,000 are recognised in the fi nancial statements, with items of a lesser value being expensed. Each intangible asset is amortised over its estimated useful life to QRAA less any anticipated residual value. The residual value is zero for all of QRAA’s intangible assets.
50 | QRAA Annual Report 2010-11
Note 1. Summary of signifi cant accounting policies (continuation)
Costs associated with the development of computer software are capitalised and amortised on a straight-line basis over the period of expected benefi t to QRAA, namely fi ve years.
(j) Impairment of non-current assets
All non-current physical and intangible assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, QRAA 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 off set against the asset revaluation reserve 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.
(k) Leases
A distinction is made in the fi nancial statements between fi nance leases, that eff ectively transfer from the lessor to the lessee substantially all the risks and benefi ts incidental to ownership, and operating leases under which the lessor retains substantially all risks and benefi ts.
Where a non-current physical asset is acquired by means of a fi nance lease, the asset is recognised at an amount equal to the lower of the fair value of the leased property and the present value of minimum lease payments. The liability is recognised at the same amount. Lease payments are allocated between the principal component of the lease liability and the interest expense.
Operating lease payments are representative of the pattern of benefi ts derived from the leased assets and are expensed in the periods in which they are incurred.
(l) 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 unsecured and are generally settled on 30 day terms.
(m) Financial instruments
Recognition
Financial assets and fi nancial liabilities are recognised in the
Statement of Financial Position when QRAA becomes party to the contractual provisions of the fi nancial instrument.
Classifi cation and measurements
Financial instruments are classifi ed and measured as follows:
- cash and cash equivalents – held at fair value through profi t or loss- loans and advances - held at amortised cost- receivables – held at amortised cost- payables – held at amortised cost- borrowings – held at amortised cost
Where loans and advances are provided with interest free periods, these fi nancial instruments are considered to have fair value diff erent from the transaction price (i.e. the fair value of the consideration given or received) and accordingly, the fair value is estimated using a valuation technique (i.e. the fair value can be estimated as the present value of all future cash receipts discounted using the prevailing market rate(s) of interest for a similar instrument with a similar credit rating). Any additional amount lent is recognised as charge for discounted loans in profi t or loss. Subsequently, the entity accretes the discount as part of interest earned on loans and advances in profi t or loss
Borrowings are initially recognised at fair value, plus any transaction costs directly attributable to the borrowings, then subsequently held at amortised cost using the eff ective interest method. The eff ective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of a fi nancial instrument (or, when 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 classifi ed as non-current liabilities to the extent that QRAA has an unconditional right to defer settlement until at least 12 months after reporting date.
QRAA does not enter into transactions for speculative purposes, nor for hedging. Apart from cash and cash equivalents, QRAA holds no fi nancial assets classifi ed at fair value through profi t or loss.
All other disclosures relating to the measurement and fi nancial risk management of fi nancial instruments held by QRAA are included in Note 22.
(n) Employee benefi ts
Employer superannuation contributions, annual leave and long service leave are regarded as employee benefi ts.
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 benefi ts and are recognised separately as employee related expenses.
Wages, Salaries, Annual Leave, Long Service Leave, Toil and Sick Leave
Wages, salaries, annual leave, toil and long service leave 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 classifi ed as non-
Notes to and forming part of the fi nancial statements 2010-2011
QRAA Annual Report 2010-11 | 51
Notes to and forming part of the fi nancial statements 2010-2011
Note 1. Summary of signifi cant accounting policies (continuation)
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.
Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised.
As sick leave is non-vesting, an expense is recognised for this as it is taken.
Superannuation
Employer superannuation contributions are paid to QSuper, the superannuation scheme for Queensland Government employees, at rates determined by the Treasurer on the advice of the State Actuary. Contributions are expensed in the period that they are paid or payable. QRAA’s obligation is limited to its contribution to QSuper.
The QSuper scheme has defi ned benefi t and defi ned contribution categories. The liability for defi ned benefi ts is held on a whole-of-government basis and reported in those fi nancial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.
Key executive management personnel and remuneration
Key executive management personnel and remuneration disclosures are made in accordance with the section 5 Addendum (issued in May 2011) to the Financial Reporting Requirements for Queensland Government Agencies issued by the Queensland Treasury. Refer to note 26 for the disclosures on key executive management personnel and remuneration.
(o) Provisions
Provisions are recorded when QRAA has a present obligation, either legal or constructive as a result of a past event. They are recognised at the amount expected at reporting date for which the obligation will be settled in a future period. Where the settlement of the obligations is expected after 12 or more months, the obligation is discounted to the present value using an appropriate discount rate.
(p) Other fi nancial liabilities
Interest-bearing liabilities payable are recognised at book value as the amount contractually owing.
All borrowing expenses are accounted for on an accrual basis in the Statement of Comprehensive Income using the eff ective interest rate method and are added to the carrying amount of the borrowing to the extent they are not settled in the period in which they arise.
q) Insurance
QRAA’s non-current physical assets and other risks are insured through Marsh Pty Ltd, insurance brokers, premiums being paid on a risk assessment basis. In addition, QRAA pays premiums to WorkCover Queensland in respect of its obligations for employees’ compensation.
(r) Financing costs
Finance costs are recognised as an expense in the period in which they are incurred.
Finance costs include:
- interest on bank overdrafts and short-term and long-term borrowings;- fi nance lease charges;- amortisation of discounts or premiums relating to borrowings; and- ancillary administration charges.
No borrowing costs are capitalised into qualifying assets.
(s) Taxation
QRAA is a State body as defi ned under the Income Tax Assessment Act 1936 and is exempt from Commonwealth taxation with the exception of Fringe Benefi ts Tax (FBT) and Goods and Services Tax (GST). FBT and GST are the only taxes accounted for by QRAA. GST credits receivable from, and GST payable to the ATO, are recognised.
(t) Issuance of fi nancial statements
The fi nancial statements are authorised for issue by the Chairperson and the Chief Executive Offi cer at the date of signing the QRAA Certifi cate.
(u) Judgements
The preparation of fi nancial 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 fi nancial year. Such estimates, judgements and underlying assumptions are reviewed on an ongoing 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 material eff ect are disclosed in the following fi nancial statement notes: Provisions for impairment for loans and advances – note 10.
Signifi cant judgement:
Following the disaster events which occurred in Queensland in 2011, the Queensland Treasury provided funding to QRAA under the Natural Disaster Relief and Recovery Assistance Programs to facilitate payments from QRAA to aff ected small businesses and primary producers, pending the establishment of the Queensland Reconstruction Authority. These payments from Queensland Treasury to QRAA totalled $76.7 million in the 2010-2011 fi nancial year and were accounted for as revenue in QRAA’s fi nancial statements as required under Australian Accounting Standard AASB 1004.
On 27 June 2011, the Queensland Reconstruction Authority (QRA) paid QRAA an amount of $76.7 million, being an amount equal to the funds received from Queensland Treasury. This same amount was repaid to Queensland Treasury on 28 June 2011. The cash infl ow from Queensland Reconstruction Authority on 27 June 2011 of $76.7 million and the $76.7 million cash outfl ow to Queensland Treasury on 28 June 2011 have been netted off for the purposes of the fi nancial statements as the infl ow and the outfl ow of these funds fully off set each other and do not need to be considered separate transactions in their own right as revenue and expense respectively.
52 | QRAA Annual Report 2010-11
Notes to and forming part of the fi nancial statements 2010-2011
The infl ow and outfl ow of funds to Queensland Treasury refl ect a transfer of funds only wherein Queensland Treasury has required QRAA to deal with the monies it has received from QRA. QRAA therefore has not had control to otherwise retain the funds and pursue its own objectives with these funds, but was required upon receipt of those funds from QRA to forward those funds to Queensland Treasury. This accounting treatment is supported by Australian Accounting Standard AASB 101.
(v) Rounding and comparatives
Amounts included in the fi nancial statements are in Australian dollars and 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 specifi cally required.
Comparative information has been restated where necessary to be consistent with the disclosures in the current reporting period.
(w) New and revised accounting standards
QRAA did not voluntarily change any of its accounting policies during 2010-11. QRAA is not permitted to early adopt a new or amended accounting standard ahead of the specifi ed commencement date unless approval is obtained from the Queensland Treasury. Consequently, QRAA has not applied any Australian accounting standards and interpretations that have been issued but are not yet eff ective. QRAA applies these standards and interpretations in accordance with their respective commencement dates.
At the date of authorisation of the fi nancial report, the only signifi cant impacts of new or amended Australian accounting standards with future commencement dates are as set out below.
AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13] becomes eff ective from reporting periods beginning on or after 1 January 2011. QRAA will then need to make changes to its disclosures about credit risk on fi nancial instruments in note 22. No longer will QRAA need to disclose amounts that best represent an entity’s maximum exposure to credit risk where the carrying amount of the instruments refl ects this. If QRAA holds collateral or other credit enhancements in respect of any fi nancial instrument, it will need to disclose – by class of instrument – the fi nancial extent to which those arrangements mitigate the credit risk. There will be no need to disclose the carrying amount of fi nancial assets for which the terms have been renegotiated, which would otherwise be past due or impaired.
Also, for those fi nancial assets that are either past due but not impaired, or have been individually impaired, there will be no need to separately disclose details about any associated collateral or other credit enhancements held by QRAA.
AASB 9 Financial Instruments (December 2010) and AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] become eff ective from reporting periods beginning on or after 1 January 2013. The main impacts of these standards on QRAA are that they will change the requirements for the classifi cation, measurement and disclosures associated with fi nancial assets. Under the new requirements, fi nancial assets will be
Note 1. Summary of signifi cant accounting policies (continuation)
more simply classifi ed according to whether they are measured at either amortised cost or fair value. Pursuant to AASB 9, fi nancial assets can only be measured at amortised cost if two conditions are met. One of these conditions is that the asset must be held within a business model whose objective is to hold assets in order to collect contractual cash fl ows. The other condition is that the contractual terms of the asset give rise on specifi ed dates to cash fl ows that are solely payments of principal and interest on the principal amount outstanding.
On initial application of AASB 9, QRAA will need to re-assess the measurement of its fi nancial assets against the new classifi cation and measurement requirements, based on the facts and circumstances that exist at that date. Assuming no change in the types of transactions QRAA enters into, it is expected that any of QRAA’s fi nancial assets will meet the criteria in AASB 9 to be measured at amortised cost. Therefore, as from the 2013-14 fi nancial statements, all of QRAA’s fi nancial assets will be required to be classifi ed as “fi nancial assets required to be measured at fair value through profi t or loss” (instead of the measurement classifi cations presently used in note 1(m) and 22. The same classifi cation will be used for net gains/losses recognised in the Statement of Comprehensive Income in respect of those fi nancial assets. In the case of QRAA’s receivables, the carrying amount is considered to be a reasonable approximation of fair value.
AASB 1053 Application of Tiers of Australian Accounting Standards and AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements [AASB 1, 2, 3, 5, 7, 8, 101, 102, 107, 108, 110, 111, 112, 116, 117, 119, 121, 123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140, 141, 1050 & 1052 and Interpretations 2, 4, 5, 15, 17, 127, 129 & 1052] apply to reporting periods beginning on or after 1 July 2013. AASB 1053 establishes a diff erential reporting framework for those entities that prepare general purpose fi nancial statements, consisting of two tiers of reporting requirements – Australian Accounting Standards (commonly referred to as “tier 1”), and Australian Accounting Standards – Reduced Disclosure Requirements (commonly referred to as “tier 2”).
Tier 1 requirements comprise the full range of AASB recognition, measurement, presentation and disclosure requirements that are currently applicable to reporting entities in Australia. The only diff erence between the tier 1 and tier 2 requirements is that tier 2 requires fewer disclosures than tier 1. AASB 2010-2 sets out the details of which disclosures in standards and interpretations are not required under tier 2 reporting.
Pursuant to AASB 1053, public sector entities like QRAA may adopt tier 2 requirements for their general purpose fi nancial statements. However, AASB 1053 acknowledges the power of a regulator to require application of the tier 1 requirements. In the case of QRAA, the Queensland Treasury is the regulator. Queensland Treasury has advised that its policy decision is to require all agencies to adopt tier 1 reporting requirements. In compliance with Queensland Treasury’s policy, which prohibits the early adoption of new or revised accounting standards unless Queensland Treasury’s approval is granted, QRAA has not early adopted AASB 1053.
All other Australian accounting standards and interpretations with future commencement dates are either not applicable to QRAA’s activities, or have not material impact on QRAA.
QRAA Annual Report 2010-11 | 53
Note 2. Grants and other contributions
The Australian and Queensland Governments contribute to the funding of the various schemes of assistance depending upon the nature of the scheme and the arrangements under the agreements between the Australian and Queensland Governments. The State’s contributions are made by a number of government agencies, mainly Queensland Treasury, the Department of Employment, Economic Development and Innovation, Queensland Primary Industries and Fisheries and the Department of Environment and Resource Management.
Note 3. Interest earned on loans and advances
2011 2010
$’000 $’000
Citrus Industry Reimbursement and Recovery Scheme
20 -
Coral Reef Fishery Temporary Assistance Scheme
10 17
Emergency Assistance-Drought Carry-On and Recovery
542 522
Natural Disaster Relief and Recovery Assistance
3,047 3,166
Primary Industry Productivity Enhancement Scheme
12,874 11,783
Young Farmers Establishment 23 35
16,516 15,523
2011 2010
$’000 $’000 (a) Queensland Government contributions
Administration 8,685 8,175
Additional Irrigators Fixed Water Charges Rebate Scheme
250
Natural Disaster Relief and Recovery Assistance
97,076 8,260
Queensland Government Solar Hot Water Rebate Scheme
10,714 -
Rural Adjustment Scheme 1,355 321
Traveston Crossing/Wyaralong Dams Business Adjustment Scheme
342 716
Vegetation Management 1,017 -
Other Schemes - 10119,189 17,732
(b) Australian Government contributions
Great Barrier Reef Marine Park adjustment Scheme
18 -
Rural Adjustment Scheme 13,273 3,04213,291 3,042
132,480 20,774
Queensland Government contribution of $97.07 million for Natural Disaster Relief and Recovery Assistance Program included an amount of $76.7 million relating to the Queensland disaster events in early 2011.
Refer to Note 1(u) for further reference.
Notes to and forming part of the fi nancial statements 2010-2011
54 | QRAA Annual Report 2010-11
Note 4. Interest earned from investments
2011 2010
$’000 $’000
Great Barrier Reef Marine Park Structural Adjustment Package 76 296
Queensland Government Solar Hot Water Rebate Scheme 126 -
Rural Adjustment Scheme 142 519
Vegetation Management 17 147
Other (i) 6,026 4,391
6,387 5,353
(i) Interest earned on funds invested under the schemes as detailed above accrues directly to those schemes to be used for the purposes of those schemes. All other interest earned becomes revenue of QRAA.
Note 5. Other revenue
2011 2010
$’000 $’000
Recovery of security expenses 6 6
Other 10 1
16 7
Note 6. Employee expenses
2011 2010
$’000 $’000
Wages and salaries 7,047 5,566
Employer superannuation contributions 881 749
Annual and long service leave 732 648
Other 567 552
9,227 7,515
The number of employees including both full-time employees and part-time employees measured on a full-time equivalent basis is:
2011 2010
Number of employees 123 75
During 2010-2011, additional temporary and casual employees were engaged in response to QRAA’s administration of the assistance programs following the disaster events in early 2011 and the Queensland Government Solar Hot Water Rebate Scheme.
Notes to and forming part of the fi nancial statements 2010-2011
QRAA Annual Report 2010-11 | 55
Notesto and forming part of the fi nancial statements 2010-2011
Note 7. Supplies and services
2011 2010
$’000 $’000
Advertising and promotion 74 66
Audit fees - external 45 40
Audit fees - internal 66 47
Bank and investment fees 47 115
Computer expenses 310 258
Consultancies 51 217
Insurance 88 96
Motor vehicle expenses 109 118
Photocopying 47 23
Postage 75 46
Printing 41 48
Professional and legal expenses 13 12
Rent 737 766
Securities expenses 100 82
Stationery 28 15
Telephone and fax 133 131
Travel and accommodation 193 102
Other 398 243
2,555 2,425
Total external audit fees relating to the 2010-2011 fi nancial year are estimated to be $43,785 (2009-2010: $39,795). There are no non-audit services included in this amount.
Note 8. Grants and subsidies
Assistance was provided to primary producers and small business in the form of interest subsidies or grants. Other incidental costs that may be incurred in the guidelines relating to individual schemes are also included.
2011 2010
$’000 $’000
Great Barrier Reef Marine Park Structural Adjustment Package 4,379 4,994
Additional Irrigators Fixed Water Charges Rebate Scheme - 17
Natural Disaster Relief and Recovery Assistance 95,298 10,334
Queensland Government Solar Hot Water Rebate Scheme 7,172 -
Small Business Emergency Assistance 2 28
Traveston Crossing/Wyaralong Dams Business Adjustment Scheme 312 493
Rural Adjustment Scheme 16,439 32,678
Vegetation Management 1,504 7,872
125,106 56,416
56 | QRAA Annual Report 2010-11
Notes to and forming part of the fi nancial statements 2010-2011
Note 9. Depreciation and amortisation
2011 2010
$’000 $’000
(a) Depreciation
Computer equipment 28 31
Leasehold improvements 135 151
Motor vehicles 141 44
Offi ce equipment 9 12
313 238
(b) Amortisation
Computer software 12 68
The higher depreciation expense for motor vehicles refl ect QRAA’s new policy of purchasing motor vehicles outright in place of previous leasing arrangements.
Note 10. Movements in provision for impairment
2011 2,010
$’000 $’000
Balance 1 July 1,045 1,422
Increase/(decrease) in provision for impairment 1,899 (356)
Charged for discounted loans (710) -
Reduction in provision of impairment of bad debts - 169
Reduction in provision of impairment for impaired debt - 208
Bad debts written off (325) (398)
Balance at 30 June 1,909 1,045
Bad debts written off during the year were:
Natural Disaster Relief and Recovery Assistance 469 398
Primary Industry Productivity Enhancement Scheme (144) -
325 398
Charged for discounted loans relate to discount on loans and advances with interest free period.
Note 11. Finance costs
2011 2010
$’000 $’000
Emergency Assistance - Drought Carry On and Recovery 349 412
Natural Disaster Relief and Recovery Assistance 1,289 1,201
1,638 1,613
Finance costs represent interest paid to Queensland Treasury Corporation (Emergency Assistance – Drought Carry On and Drought Recovery) and the Australian Government (Natural Disaster Relief and Recovery Assistance).
QRAA Annual Report 2010-11 | 57
Notes to and forming part of the fi nancial statements 2010-2011
Note 12. Cash and cash equivalents
This item includes cash and funds on short-term deposit. The amounts of cash and deposits are accounted for individually within the various schemes of assistance administered by QRAA.
2011 2010 $’000 $’000
Administration 17,421 16,101Coral Reef Fishery Temporary Assistance Scheme 733 608Emergency Assistance - Drought Carry-On and Recovery 2,018 62Great Barrier Reef Marine Park Structural Adjustment Package - 4,274Natural Disaster Relief and Recovery Assistance 28,183 19,089Primary Industry Productivity Enhancement Scheme 46,254 43,251Queensland Government Solar Hot Water Rebate Scheme 2,934 -Rural Adjustment Schemes 688 2,768Sugar Cane Crop Scheme 585 585Tourism Assistance Package 473 473Traveston Crossing/Wyaralong Dams Business Adjustment Scheme 19 11Vegetation Management - 399
Young Farmers Establishment 2,417 2,277Reserves 18,208 11,774
119,933 101,672
Cash surplus to immediate requirements is invested according to the guidelines in the Rural and Regional Adjustment Act 1994 and the Statutory Bodies Financial Arrangements Act 1982.
Cash and deposits held at the end of the year are:
2011 2010
$’000 $’000
Cash at bank 3,632 117
Queensland Treasury Corporation - 24 hour call account 41,204 50,911
Suncorp term deposit - 3 months maturity 75,097 50,644
119,933 101,672
Cash deposited with the Queensland Treasury Corporation earned interest at rates between 5.06% and 5.53% (2010: 3.36% to 5.27%) and cash deposited with Suncorp earned interest at rates between 5.97% and 6.28% (2010: 4.76% and 5.97%).
58 | QRAA Annual Report 2010-11
Notesto and forming part of the fi nancial statements 2010-2011
Note 13. Loans and advances
Loans and advances are made to primary producers and small business at either a concessional or commercial interest rate.
2011 Gross
Provision for Impairment Current
Non- Current
2011 Total
$’000 $’000 $’000 $’000 $’000
Citrus Industry Reimbursement and Recovery Scheme 956 - 91 865 956
Coral Reef Fishery Temporary Assistance Scheme 91 - 63 28 91
Emergency Assistance - Drought Carry-On and Recovery 8,198 - 1,748 6,450 8,198
Natural Disaster Relief and Recovery Assistance 82,653 1,751 10,603 70,299 80,902
Primary Industry Productivity Enhancement Scheme 208,046 158 14,447 193,441 207,888
Young Farmers Establishment 327 - 103 224 327
300,271 1,909 27,055 271,307 298,362
2010 Gross
Provision for Impairment Current
Non- Current
2010 Total
$’000 $’000 $’000 $’000 $’000
Citrus Industry Reimbursement and Recovery Scheme 1,000 - - 1,000 1,000
Coral Reef Fishery Temporary Assistance Scheme 206 - 104 102 206
Emergency Assistance - Drought Carry-On and Recovery 6,865 - 1,696 5,169 6,865
Natural Disaster Relief and Recovery Assistance 77,205 606 11,849 64,750 76,599
Primary Industry Productivity Enhancement Scheme 198,570 439 13,223 184,908 198,131
Young Farmers Establishment 443 - 122 321 443
284,289 1,045 26,994 256,250 283,244
The movement in the provision for impairment is shown in Note 10.
QRAA Annual Report 2010-11 | 59
Notes to and forming part of the fi nancial statements 2010-2011
Note 14. Receivables2011 2010
$’000 $000
Other receivables
GST receivable 131 270
Grants receivable - 29
131 299
Accrued interest - bank 618 630
Accrued interest - loans and advances
Citrus Industry Reimbursement and Recovery Scheme 5 -
Coral Reef Fishery Temporary Assistance Scheme - 1
Emergency Assistance - Drought Carry-On and Recovery 141 114
Natural Disaster Relief and Recovery Assistance 362 327
Primary Industry Productivity Enhancement Scheme 2,630 2,371
Young Farmers Establishment 3 5
3,141 2,818
3,890 3,747
Note 15. Other current assets
2011 2010
$’000 $’000
Prepaid expenses 11 41
11 41
60 | QRAA Annual Report 2010-11
Notes to and forming part of the fi nancial statements 2010-2011
Note 16. Plant and equipment
2011 2010
$’000 $’000
Computer equipment - at cost 306 229
Accumulated depreciation (233) (205)
73 24
Leasehold improvements - at cost 894 894
Accumulated depreciation (586) (451)
308 443
Motor vehicles - at cost 449 396
Accumulated depreciation (185) (44)
264 352
Offi ce equipment - at cost 240 240
Accumulated depreciation (221) (212)
19 28
664 847
Reconciliations
Reconciliations of the carrying amounts of each class of asset are set out below:
2011 2010
$’000 $’000
Computer equipment
Carrying amount at start of year 24 32
Additions 77 23
Depreciation (28) (31)
Carrying amount at end of year 73 24
Leasehold improvements
Carrying amount at start of year 443 594
Additions - -
Depreciation (135) (151)
Carrying amount at end of year 308 443
Motor vehicles
Carrying amount at start of year 352 -
Additions 53 396
Depreciation (141) (44)
Carrying amount at end of year 264 352
Offi ce equipment
Carrying amount at start of year 28 40
Additions - -
Depreciation (9) (12)
Carrying amount at end of year 19 28
QRAA Annual Report 2010-11 | 61
Notes to and forming part of the fi nancial statements 2010-2011
Note 17. Intangible assets
2011 2010
$’000 $’000
Computer software purchased - at cost 982 982
Accumulated amortisation (982) (970)
- 12
Reconciliations
Reconciliations of the carrying amounts are set out below:
2011 2010
$’000 $’000
Computer software
Carrying amount at start of year 12 80
Amortisation (12) (68)
Carrying amount at end of year - 12
Note 18. Payables
2011 2010
$’000 $’000
Current
Creditors and accruals 69 159
Accrued employee costs 100 -
GST payable 7,761 9
Other - Department of Employment, Economic Development and Innovation (DEEDI) - 88,220
7,930 88,388
In June 2010, Queensland Treasury informed QRAA that the Treasurer approved that QRAA’s liabilities with Queensland Treasury ($49.43 million) and DEEDI ($88.22 million) be repaid through an equity injection.
The liabilities were repaid in October 2010.
62 | QRAA Annual Report 2010-11
Notes to and forming part of the fi nancial statements 2010-2011
Note 19. Other fi nancial liabilities
Interest bearing liabilities
2011 2010
$’000 $’000
Current
Emergency Assistance - Drought Carry On and Recovery 2,048 1,905
Natural Disaster Relief and Recovery Assistance 7,289 7,328
9,337 9,233
Non-current
Emergency Assistance - Drought Carry On and Recovery 6,375 3,394
Natural Disaster Relief and Recovery Assistance 32,719 42,177
39,094 45,571
Non-interest bearing liabilities
Current
Natural Disaster Relief and Recovery Assistance 7,267 7,006
Primary Industry Productivity Enhancement - Queensland Treasury Note 18 - 49,432
7,267 56,438
Non-current
Natural Disaster Relief and Recovery Assistance 53,699 37,779
53,699 37,779
Total current fi nancial liabilities
Emergency Assistance - Drought Carry On and Recovery 2,048 1,905
Natural Disaster Relief and Recovery Assistance 14,556 14,334
Primary Industry Productivity Enhancement - 49,432
Total current fi nancial liabilties 16,604 65,671
Total non-current fi nancial liabilities
Emergency Assistance - Drought Carry On and Recovery 6,375 3,394
Natural Disaster Relief and Recovery Assistance 86,418 79,956
Total non-current fi nancial liabilties 92,793 83,350
Interest bearing funds of $8.42 million for Emergency Assistance – Drought Carry On and Recovery are borrowed from Queensland Treasury Corporation and interest bearing funds of $40.01 million for Natural Disaster Relief and Recovery Assistance programs are borrowed from the Australian Government. All borrowings are unsecured.
Non-interest bearing funds for Natural Disaster Relief and Recovery Assistance and the Primary Industry Productivity Enhancement Scheme programs are borrowed from the Queensland Government.
QRAA has a loan facility with Queensland Treasury Corporation which is approved under the Queensland Government’s State Borrowing Program. At 30 June 2011, the amount undrawn under the facility was $19.0 million.
QRAA Annual Report 2010-11 | 63
Notes to and forming part of the fi nancial statements 2010-2011
Note 20. Accrued employee benefi ts
2011 2010
$’000 $’000
Current
Annual leave 571 452
Long service leave 863 772
1,434 1,224
Non-Current
Annual leave - -
Long service leave 231 226
231 226
The discount rate used to calculate the present value of annual leave is 4.70% (2010: 4.45%) and for long service leave 4.70% to 5.21% (2010: 4.45% to 5.10%).
Note 21. Reconciliation of operating surplus (defi cit) to net cash from operating activities
2011 2010
$’000 $’000
Operating surplus (defi cit) 15,513 (26,639)
Amortisation expense 12 68
Depreciation expense 313 238
Impairment losses 1,035 21
Change in assets and liabilities
Increase in accrued interest (312) (358)
Decrease in receivables 168 7,252
Decrease in prepayments 30 68
Increase/(decrease) in payables and accrued employee benefi ts 7,976 (7,009)
Net cash from operating activities 24,735 (26,359)
Note 22. Financial instruments
(a) Categorisation of fi nancial instruments
QRAA has the following categories of fi nancial assets and fi nancial liabilities:
2011 2010
Category $’000 $’000
Financial assets
Cash and cash equivalents 119,933 101,672
Loans and advances 298,362 283,244
Receivables 3,890 3,747
Total 422,185 388,663
64 | QRAA Annual Report 2010-11
Notesto and forming part of the fi nancial statements 2010-2011
(b) Financial risk management
QRAA’s activities expose it to a variety of fi nancial risks – interest rate risk, credit risk, liquidity risk and market risk. Financial risk management is implemented pursuant to Queensland Government and QRAA’s policy. These policies focus on the unpredictability of fi nancial markets and seek to minimise potential adverse eff ects on the fi nancial performance of QRAA.
Financial risk is managed by the Finance and Program Delivery business units under policies approved by QRAA. QRAA provides written principles for overall risk management, as well as policies covering specifi c areas.
QRAA measures risk exposure using a variety of methods as follows –
Note 22. Financial instruments (continuation)
(a) Categorisation of fi nancial instruments (continuation)
2011 2010
$’000 $’000
Financial liabilities
Financial liabilities measured at amortised cost:
Payables 7,930 88,388
Other fi nancial liabilities - QTC and Australian Govt borrowings 109,397 149,021
Total 117,327 237,409
(c) Credit risk exposure
Credit risk exposure refers to the situation where QRAA may incur fi nancial loss as a result of another party to a fi nancial instrument failing to discharge their obligation.
The maximum exposure to credit risk at balance date in relation to each class of recognised fi nancial assets is the gross carrying amount of those assets inclusive of any provisions for impairment.
The following table represents QRAA’s maximum exposure to credit risk based on contractual amounts net of any allowances:
Maximum exposure to credit risk 2011 2010
Category $’000 $’000
Financial assets
Loans and advances 298,362 283,244
Receivables 3,890 3,747
Total 302,252 286,991
Financial assets
QRAA manages credit risk through the use of a credit management strategy. This strategy aims to reduce the exposure to credit default by ensuring that QRAA invests in secure assets and monitors all funds owed on a timely basis. Exposure to credit risk is monitored on an ongoing basis.
All loans and advances are secured by collateral in the form of mortgages, charges and liens (refer Note 1(d) and the valuation of securities is undertaken annually to ensure suffi cient collateral to cover the indebtedness of customers. QRAA policy is to hold security over landed assets which are readily converted to cash.
The credit quality of fi nancial assets that are neither past due nor impaired can be assessed by reference to internal client loan risk classifi cation based on collateral provided by borrowers/recipients:
No fi nancial assets and fi nancial liabilities have been off set and presented net in the Statement of Financial Position.
The method for calculating any provision for impairment is based on past experience, current and expected changes in economic conditions and changes in client credit ratings. The main factors aff ecting the current calculation for provisions are disclosed below as loss events. These economic and geographic changes form part of the QRAA’s documented risk analysis assessment in conjunction with historic experience and associated industry data.
The recognised provision for impairment is $1.91 million for the current year (2010: $1.05 million). This is an increase of $0.86 million from 2010 and is due to the two year interest free period loans for the Natural Disaster Relief and Recovery Arrangement - Exceptional Disaster Assistance for Queensland Flooding (Nov10-Jan11) and Tropical Cyclone Yasi and an increase in specifi c provisions.
No fi nancial assets have had their terms renegotiated so as to prevent them from being past due or impaired, and are stated at the carrying amounts as indicated.
2011 2010
Loans and advances with: $’000 $’000
Full collateral cover 296,889 281,427
Partial collateral coverage 297 626
No collateral coverage - 196
297,186 282,249
Risk exposure Measurement method
Credit risk Ageing analysis
Liquidity risk Maturity analysis
Market risk Interest rate sensitivity analysis
QRAA Annual Report 2010-11 | 65
Overdue
2011
Less than 30 days
30 - 60days
61 - 90days
More than90 days Total
$’000 $’000 $’000 $’000 $’000
Financial assets past due but not impaired
Loans and advances 831 313 409 1,530 3,083
2010
Overdue
Less than 30 days
30 - 60days
61 - 90days
More than90 days Total
$’000 $’000 $’000 $’000 $’000
Financial assets past due but not impaired
Loans and advances 625 183 279 953 2,040
2011
Overdue
Less than 30 days
30 - 60days
61 - 90days
More than90 days Total
$’000 $’000 $’000 $’000 $’000
Individually impaired fi nancial assets
Loans and advances (gross) 17 16 45 283 361
Provision for impairment (17) (16) (45) (278) (356)
Carrying amount - - - 5 5
Notes to and forming part of the fi nancial statements 2010-2011
Overdue
2010
Less than 30 days
30 - 60days
61 - 90days
More than
90 days Total
$’000 $’000 $’000 $’000 $’000
Individually impaired fi nancial assets
Loans and advances (gross) 11 22 11 168 212
Provision for impairment (8) (19) (8) (138) (173)
Carrying amount 3 3 3 30 39
Note 22. Financial instruments (continuation)
Ageing of past due but not impaired as well as impaired fi nancial assets within the total loan portfolio of $300.27 million are disclosed in the following tables:
(c) Credit risk exposure (continuation)
(d) Liquidity risk
Liquidity risk refers to a situation where QRAA may encounter diffi culty in meeting obligations associated with fi nancial liabilities that are settled by delivering cash or another fi nancial asset.
QRAA is exposed to liquidity risk in respect of its payables and borrowings from Queensland Treasury Corporation for on-lending. The borrowings are based on the Queensland Government’s gazetted fl oating rate.
QRAA manages liquidity risk through the use of a liquidity management strategy. This strategy aims to reduce the exposure to liquidity risk by ensuring QRAA has suffi cient funds available to meet employee and supplier obligations as they fall due. 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 fi nancial liabilities held by QRAA. It represents the contractual maturity of fi nancial liabilities, calculated based on undiscounted cash fl ows relating to the liabilities at reporting date as advised by Queensland Treasury Corporation and Australian Government.
66 | QRAA Annual Report 2010-11
Financial liabilities
2011 Payable in
<1 year 1-5 years >5 years Total
Note $’000 $’000 $’000 $’000
Payables 7,930 - - 7,930
Australian Government Borrowings 7,490 29,933 3,693 41,116
Queensland Government Borrowings 7,267 37,199 16,501 60,967
Queensland Treasury Corporation Borrowings 2,504 5,689 1,618 9,811
Total 25,191 72,821 21,812 119,824
Financial liabilities
2010 Payable in
<1 year 1-5 years >5 years Total
Note $’000 $’000 $’000 $’000
Payables 88,388 - - 88,388
Australian Government Borrowings 7,516 39,256 4,001 50,772
Queensland Government Borrowings 56,438 35,254 2,525 94,217
Queensland Treasury Corporation Borrowings 2,226 3,762 - 5,988
Total 154,568 78,272 6,526 239,365
(e) Market risk
QRAA does not trade in foreign currency and is not materially exposed to commodity price changes. QRAA is exposed to interest rate risk through its borrowings from Queensland Treasury Corporation and cash deposited in interest bearing accounts. QRAA does not undertake any hedging in relation to interest risk and manages its risk as per the liquidity risk management strategy.
(f) Interest rate sensitivity analysis
The following interest rate sensitivity analysis is based on a report similar to that provided to management, depicting the outcome on results if interest rates would change by +/- 1% from the year-end rates applicable to the QRAA’s fi nancial assets and liabilities. With all other variables held constant, QRAA would have a surplus and equity increase/(decrease) of $3.70 million (2010: $3.30 million). This is mainly attributable to QRAA’s exposure to variable interest rates on its borrowings from Queensland Treasury Corporation.
Financial instruments
2011 interest rate risk
Carrying amount
-1% +1%
Profi t Equity Profi t Equity
Cash and cash equivalents 119,933 (1,199) (1,199) 1,199 1,199
Loans and advances 298,362 (2,984) (2,984) 2,984 2,984
Australian Government Borrowings 40,008 400 400 (400) (400)
Queensland Treasury Corporation Borrowings 8,423 84 84 (84) (84)
Overall eff ect on profi ts and equity (3,699) (3,699) 3,699 3,699
Notes to and forming part of the fi nancial statements 2010-2011
Note 22. Financial instruments (continuation)
(d) Liquidity risk (continuation)
QRAA Annual Report 2010-11 | 67
Notes to and forming part of the fi nancial statements 2010-2011
Financial instruments
2010 interest rate risk
Carrying amount
-1% +1%
Profi t Equity Profi t Equity
$’000 $’000 $’000 $’000 $’000
Cash and cash equivalents 101,672 (1,017) (1,017) 1,017 1,017
Loans and advances 283,244 (2,832) (2,832) 2,832 2,832
Australian Government Borrowings 49,505 495 495 (495) (495)
Queensland Treasury Corporation Borrowings 5,299 53 53 (53) (53)
Overall eff ect on profi t and equity (3,301) (3,301) 3,301 3,301
(g) Fair value
QRAA does not recognise any fi nancial assets or fi nancial liabilities subsequently at fair value. The fair value of loans, advances, receivables and payables are assumed to approximate value of the original transaction, less any allowance for impairment.
The fair value of other fi nancial liabilities is notifi ed by the Queensland Treasury Corporation. It is calculated using discounted cash fl ow analysis and the eff ective interest rate and is disclosed below
Financial liabilities
2011 2010
Carrying amount
Fair Value Carrying Amount
Fair value
$’000 $’000 $’000 $’000
Financial liabilities at amortised cost
Australian Government Borrowings 40,008 48,874 49,505 55,321
Queensland Treasury Corporation Borrowings 8,423 9,811 5,299 5,993
Total 48,431 58,685 54,804 61,314
Note 23. Commitments for expenditure
(a) Finance lease liabilities
At reporting date, QRAA has no commitments under fi nance leases.
(b) Non-cancellable operating lease
Commitments under non-cancellable operating leases at the reporting date are inclusive of anticipated GST and are payable as follows:
2011 2010
$’000 $’000
Not later than one year 906 688
Later than one year but not later than fi ve years 305 863
Later than fi ve years - -
1,211 1,551
Note 22. Financial instruments (continuation)
(f) Interest rate sensitivity analysis (continuation)
68 | QRAA Annual Report 2010-11
Notes to and forming part of the fi nancial statements 2010-2011
Note 24. Board members’ fees
Remuneration, including meeting fees and superannuation are paid to Board members. QRAA does not reimburse Board members who are government representatives.
2011 2010
$’000 $’000
Board members remuneration 84 80
Number of Board members receiving remuneration in the following ranges
$1 to $9,999 5 5
$10,000 to $19,999 2 -
$20,000 to $29,999 - -
$30,000 to $39,999 1 -
$40,000 to $49,999 - 1
The Board members of QRAA are:
Wayne Carlson (Chairman)Joy CooperSue Ryan (Government representative)Alan Tesch (Government representative)Sarah Israel (appointed 3 June 2011)John Pollock (appointed 3 June 2011)Georgie Somerset (appointed 3 June 2011)Graham Davies (resigned 3 June 2011)Matthew Hood (resigned 3 June 2011)Richard Stevens (resigned 3 June 2011)
Note 25. ContingenciesQRAA did not have any contingent liabilities as at 30 June 2011 (2010: nil).
Note 23. Commitments for expenditure (continuation)
Operating leases are entered into as a means of acquiring access to offi ce accommodation and storage facilities. Lease payments are generally fi xed, but with infl ation escalation clauses on which contingent rentals are determined.
(c) Capital expenditure commitments
At reporting date, QRAA has no commitments for capital expenditure.
(d) Financial assistance commitments
At reporting date, QRAA has undrawn fi nancial assistance commitments of $32.88 million (2010: $17.71 million). Undrawn commitments are loans and grants that have been approved and awaiting client drawdon at balance date.
QRAA Annual Report 2010-11 | 69
Notes to and forming part of the fi nancial statements 2010-2011
Position Responsibilities Current incumbents
Contract classifi cation and appointment authority
Date appointed to position (Date resigned from position)
Chief Executive Offi cer The Chief Executive Offi cer reports to QRAA’s Board of Directors and the MInister for Agriculture, Food and Regional Economies. He is responsible for leading and managing the aff airs of QRAA including strategically positioning QRAA to achieve organisatonal and fi nancial goals and implement Board policy
Contract - Governor in Council
16 August 2001
General Manager, Program Delivery Services
Program Delivery Services delivers fi nancial assistance programs that foster the development of rural and regional sector that supports the Queensland economy. Program Delivery Services also delivers programs in response to emergencies and natural disasters and fosters strong relationships with community and industry.
SES 2 Low - Rural and Regional Adjustment Act 1994
20 November 2006
General Manager, Corporate Strategy and Support
The Corporate Strategy and Support division develops and manages QRAA’s systems, infrastructure and policies in the areas of fi nance, human resources and inforamtion services. It facilitates planning, performance improvement and strategic communications and business development.
SES 2 Low - Rural and Regional Adjustment Act 1994
29 June 2009
b) Remuneration
Remuneration packages for key executive management personnel comprise the following components:-
• Short term employee benefi ts which include: - 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 specifi ed position. Amounts disclosed equal the amount expensed in the Statement of Comprehensive Income. - non-monetary benefi ts – consisting of provision of vehicle together with fringe benefi ts tax applicable to the benefi t.
• Long term employee benefi ts include long service leave accrued.
• Post employment benefi ts include superannuation contributions.
• Redundancy payments are not provided for within individual contracts of employment. Contracts of employment provide only for notice periods or payment in lieu of notice on termination, regardless of the reason for termination.
Total fi xed remuneration is calculated on a ‘total cost’ basis and includes the base and non-monetary benefi ts, long term employee benefi ts and post employment benefi ts.
Note 26. 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 QRAA during 2010-11. Further information on these positions can be found in the body of the Annual Report under the section relating to Executive Management.
70 | QRAA Annual Report 2010-11
1 July 2010 – 30 June 2011
Position (date resigned if applicable) Short-term employee benefi ts
Long-term employee
benefi ts
Post employment
benefi ts
Termination benefi ts
Total remuneration
Base Non-Monetary
Benefi ts $’000
$’000 $’000 $’000 $’000
Chief Executive Offi cer 203 29 5 26 N/A 263
General Manager, Program Delivery Services
131 26 3 17 N/A 177
General Manager, Corporate Strategy and Support
131 26 3 17 N/A 177
1 July 2009 – 30 June 2010
Position (date resigned if applicable) Short-term employee benefi ts
Long-term employee
benefi ts
Post employment
benefi ts
Termination benefi ts
Total remuneration
Base Non-Monetary
Benefi ts $’000
$’000 $’000 $’000 $’000
Chief Executive Offi cer 187 29 5 24 N/A 245
General Manager, Program Delivery Services
120 26 3 15 N/A 164
General Manager, Corporate Strategy and Support
120 26 3 15 N/A 164
c) Performance Payments
QRAA does not have performance bonuses agreement with any employees. Accordingly, there are no performance bonuses paid or payable.
Note 26. Key executive management personnel (continuation)
Notes to and forming part of the fi nancial statements 2010-2011
QRAA Annual Report 2010-11 | 71
Certifi cate of QRAA
These general purpose fi nancial statements have been prepared pursuant to section 62(1) of the Financial Accountability Act 2009 (the Act), relevant sections of the Financial and Performance Management Standard 2009 and other prescribed requirements. In accordance with section 62(1)(b) of the Act, we certify that in our opinion:
(a) the prescribed requirements for establishing and keeping of accounts have been complied with in all material respects; and
(b) the statements have been drawn up to present a true and fair view, in accordance with prescribed accounting standards, of the transactions of QRAA for the fi nancial year ended 30 June 2010 and of the fi nancial position of QRAA at the end of that year.
W CARLSON J COOPER BBus FCPA FCIS FAICDChairperson Chairperson – Audit & Risk Management Committee
C R HOLDEN P R O’DONNELL BBus FCPAChief Executive Offi cer Senior Manager Finance
Brisbane, 24 August 2011
72 | QRAA Annual Report 2010-11
Report on the Financial Report
I have audited the accompanying fi nancial report of QRAA, which comprises the statement of fi nancial position as at 30 June 2011, the statement of comprehensive income, statement of changes in equity and statement of cash fl ows for the year then ended, notes comprising a summary of signifi cant accounting policies and other explanatory information, and certifi cates given by the Board and offi cers responsible for the fi nancial administration of QRAA.
The Board’s Responsibility for the Financial Report
The Board is responsible for the preparation of the fi nancial report that gives a true and fair view in accordance with prescribed accounting requirements identifi ed in the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, including compliance with Australian Accounting Standards. The Board’s responsibility also includes such internal control as the Board determines is necessary to enable the preparation of the fi nancial report that is free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
My responsibility is to express an opinion on the fi nancial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the fi nancial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the fi nancial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the fi nancial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the eff ectiveness of the entity’s internal control, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating the overall presentation of the fi nancial report including any mandatory fi nancial reporting requirements approved by the Treasurer for application in Queensland.
I believe that the audit evidence obtained is suffi cient and appropriate to provide a basis for my audit opinion.
Independence
The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can only be removed by Parliament.
The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are signifi cant.
Opinion
In accordance with s.40 of the Auditor-General Act 2009 -
(a) I have received all the information and explanations which I have required; and
(b) in my opinion:
(i) the prescribed requirements in relation to the establishment and keeping of accounts have been complied with in all material respects; and
(ii) the fi nancial report presents a true and fair view, in accordance with the prescribed accounting standards, of the transactions of the QRAA for the fi nancial year 1 July 2010 to 30 June 2011 and of the fi nancial position as at the end of that year.
Other Matters - Electronic Presentation of the Audited Financial Report
This auditor’s report relates to the fi nancial report of QRAA for the year ended 30 June 2011. Where the fi nancial report is included on QRAA’s website the Board is responsible for the integrity of QRAA’s website and I have not been engaged to report on the integrity of QRAA’s website. The auditor’s report refers only to the subject matter described above. It does not provide an opinion on any other information which may have been hyperlinked to/from these statements or otherwise included with the fi nancial report. If users of the fi nancial report are concerned with the inherent risks arising from publication on a website, they are advised to refer to the hard copy of the audited fi nancial report to confi rm the information contained in this website version of the fi nancial report.
These matters also relate to the presentation of the audited fi nancial report in other electronic media including CD Rom.
Brisbane, 24 August 2011
Independent Auditor’s reportTo the Board of QRAA
Service delivery excellenceAPI
API (Australian Post-Tel Institute) are the providers of QRAA’s employee benefi ts program off ering lifestyle services and benefi ts, including child care and aged care referral services, insurance brokers, holiday homes and travel agency services.
Assure Employee Assistance Program
A confi dential and voluntary counselling service provided by Assure Programs that is designed to assist with the resolution of personal and work-related problems that may aff ect work performance or quality of life.
Business unit plan
A plan which identifi es the services (projects and activities) the business unit intends to deliver during the plan’s timeframe (one year). It also supports the Strategic Plan.
Government objectives for the
community
The fi ve ambitions outlined in Toward Q2: Tomorrow’s Queensland are the current government objectives for the community.
Right to information
The Queensland Government’s approach to providing the community with open access to public information in accordance with right to information legislation which came into eff ect on 1 July 2009.
Strategic plan
A document used by an agency to set its direction, align the agency with the government’s objectives for the community and provide objectives and strategies for the agency.
Glossary
Strategic priorities
The priorities identifi ed for the agency, which are contained within the Strategic Plan to guide organisational performance.
Vision
Specifi es what the agency hopes to become or create. A vision statement takes into account the current status of the agency and serves to point the direction of where the agency wishes to go.
Registered offi ce
Level 9307 Queen StreetBrisbane Qld 4000ABN 30 644 268 943
Postal address
GPO Box 211Brisbane Qld 4001
Freecall
Telephone
Facsimile
1800 623 946
(07) 3032 0100
(07) 3032 0180
www.qraa.qld.gov.au