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Department of Housing and Public Works

2 Department of Housing and Public Works Annual Report 2015–16

Letter of Compliance

3Department of Housing and Public Works Annual Report 2015–16

Communication Objective

This Annual Report provides information about the Department of Housing and Public Works’ fi nancial and non-fi nancial performance for 2015–16. It has been prepared in accordance with the Financial Accountability Act 2009, the Financial and Performance Management Standard 2009 and the Annual report requirements for Queensland Government agencies.

The report records the signifi cant achievements against the strategies detailed in the department’s Strategic Plan 2015–19 and the 2015–16 Service Delivery Statements.

This report has been prepared for the Minister to submit to Parliament. It has also been prepared to meet the needs of stakeholders including the Australian and local governments, industry and business associations, community groups, and staff.

The Queensland Government is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse backgrounds. If you have diffi culty in understanding the Annual Report, you can contact us on 13 QGOV (13 74 68) and we will arrange an interpreter to communicate the report to you.

www.qld.gov.au/languages

Online open data reporting

Content for the following annual reporting requirements can also be accessed on the department’s website at http://www.hpw.qld.gov.au and the Queensland Government data website at https://data.qld.gov.au/

• consultancies

• overseas travel

• Queensland Languages Services Policy.

Department of Housing and Public Works Annual Report 2015–16.

© The State of Queensland (Department of Housing and Public Works) 2016.

Published by the Queensland Government, September 2016, 80 George Street, Brisbane Qld 4000.

Licence

This annual report is licensed by the State of Queensland (Department of Housing and Public Works) under a Creative Commons Attribution (CC BY) 4.0 International licence.

CC By Licence Summary Statement:

In essence, you are free to copy, communicate and adapt this annual report, as long as you attribute the work to the State of Queensland (Department of Housing and Public Works). To view a copy of this licence, visit: http://creativecommons.org/licenses/by/4.0/

Attribution:

Content from this annual report should be attributed as:

The State of Queensland (Department of Housing and Public Works) Annual Report 2015–16.

Further copies of this report are available at http://www.hpw.qld.gov.au/aboutus/ReportsPublications/AnnualReports/Pages/default.aspx

or by contacting Governance, Planning and Performance, Department of Housing and Public Works on 13 QGOV (13 74 68).

If you have trouble viewing or printing this document, contact us and we will supply it in an alternative format, such as hardcopy or CD-ROM.

Email: [email protected]

ISSN 2201-1412


Table of Contents

Letter of compliance 2

Communication Objective 3

Table of Contents 4

Message from the Director–General 5

Our Department 7

Organisational Structure 8

Year in review 9

Our Department’s Achievements 10

Objective 1: Strong relationships with our tenants and customers 10

Objective 2: Building safe and connected communities 11

Objective 3: Right people, right skills, right place 12

Our year ahead 13

Service Areas 14

Housing Services 14

Government Accommodation and Building Policy Services 20

Procurement Services 24

Commercialised Business Units 27

Building and Asset Services 27

QFleet 30

Governance 33

Governance Committees 37

Strategic planning, performance, monitoring and reporting 39

Risk management 39

Internal Audit 40

Information systems and recordkeeping 40

Information Technology 40

External reviews 41

Whole–of–government plans and specifi c initiatives 41

National agreements and national partnership agreements 42

Our People 43

Workforce profi le 44

Workforce planning 44

Legislation Administered by the Minister for the Department of Housing and Public Works as at 30 June 2016 46

Government Bodies 47

Statutory Bodies 48

Government Bodies, Boards and Committees 48

Open Data 49

Service Centre Locations 50

Contacts 51

Department Housing and Public Works 51

Building and Asset Services offi ce locations 51

Housing Services offi ce locations 51

Other Departmental Offi ces 53

Financial Statements 56

Appendix A Compliance Checklist 114


Message from the Director–General

We have made signifi cant progress on implementing the government’s priorities in the areas of housing, building and procurement, and have continued to deliver services that matter to Queenslanders.

The department has taken forward many projects and programs of work this fi nancial year that link to the government’s key areas of focus. This annual report outlines the progress we have made in contributing to the government’s vision, and recognises the signifi cant projects and programs of work that we have delivered, based on our Strategic Plan 2015–19.

Working towards better housing futures for all Queenslanders

In 2015–16, we have continued to deliver services and outcomes for tenants and customers that are making a difference. More than 72,000 low income households were assisted with social rental housing, while over 124,000 households were assisted by programs to help them access or sustain private tenancies.

In addition, the re-establishment of the Queensland Statewide Tenant Advice and Referral Service is ensuring Queensland tenants receive free information, help and advice when they need it.

The release of the Working together for better housing and sustainable communities discussion paper was a key undertaking that will form the foundation for the development of our new Housing Strategy for the future. This paper

provided the opportunity for people to have their say on ways to improve housing outcomes for all Queenslanders. As well as capturing the views of the general public, the consultation process also included input from private industry and the housing assistance sector.

Other key pieces of work in the housing space were completed, including a fairness review of housing policies, the development of a Fairness Charter, and the establishment of two, 72 hour crisis shelters in Townsville and Brisbane for women and children escaping domestic and family violence.

In 2015-16, we assisted over 72,000 low income households with social rental housing. $328.3 million was spent to complete construction of 395 new social and affordable housing dwellings, commenced construction of 413 dwellings, purchased 93 dwellings and completed over 11,800 refurbishments. In addition to this, $256.7 million was spent on maintenance.

We also continued to support those Queenslanders experiencing, or at risk of experiencing, homelessness through new construction work in Cairns, the delivery of the Crisis Accommodation Program and the funding of 127 non-government organisations to deliver 218 specialist homelessness services.

Advancing the building and residential living sectors

The Security of payment for subcontractors discussion paper facilitated a signifi cant amount of

consultation and engagement work with the community and industry sectors in the building area. This key project will feed into the development of new policies that deliver on the government’s commitment to a safer and more sustainable environment for the benefi t of all Queenslanders.

Fairness and safety in the building and construction industry was another key focus. Work in this space included consultation with the industry on the Security of payment for subcontractors discussion paper, and the re-establishment of a dedicated plumbing industry body in the form of the Service Trades Council.

In 2015–16, the department also continued its work in the area of sustainability in the built environment, participating as a core member of the Sustainable Built Environment National Research Centre, and helping to deliver the multiple award winning Brisbane Open House event which showcases Brisbane’s most unique buildings.

Delivering greater value through employment and economic opportunities

A number of achievements in the procurement space were realised throughout the year. Following a major review of Queensland Government Procurement, a new agency-led operating model is being put in place which enables departments to manage their own activities within an overarching framework.

The 2015–16 year has been one of consultation, collaboration and delivery for the Department of Housing and Public Works.


The role of social procurement in supporting new jobs and local businesses was explored further, with the department hosting two procurement market days, in Brisbane and Cairns.

A continued commitment to the local economies throughout Queensland’s regions also saw job opportunities delivered through the awarding of maintenance work on behalf of customer agencies to local contractors.

Empowering people in an integrated and collaborative organisation

During the year, we took the opportunity to reshape our organisational structure to ensure we are well placed to deliver on our vision for the future, work that will continue into the new fi nancial year as we look to maximise our opportunities and identify areas of improvement.

We continued our focus on developing a strong and empowered workforce in 2015–16, to help us deliver on our vision for the future.

The establishment of the Aboriginal and Torres Strait Islander Strategy Unit has seen a concerted and connected approach to developing and delivering policies, programs and services in this space. In addition, during the year, we held our fi rst Aboriginal and Torres Strait Islander staff forum, with staff coming from across the state to network and share their experiences in Brisbane.

Our People and Culture strategy has continued to improve our organisational capability and this past year we have seen the reintroduction of the graduate program, facilitation of Managing for Results and Emerging Leaders programs for staff, and the development and implementation of an Inclusion and Diversity Action Plan.

These activities are helping to support our aim to be an inclusive and progressive organisation with improved capabilities to attract, develop and retain talented people to help deliver our objectives.

More than 84 per cent of staff completed the Working for Queensland Employee Opinion survey, which was our best ever response rate, and this valuable information is helping us strengthen our position so we can realise our future vision.

Health and safety is an ongoing priority for the department, with this high level of focus delivering excellent results, including the reduction of lost time injuries and fewer days lost due to workplace injuries compared to last year.

I would like to take this opportunity to thank all staff for their ongoing work and commitment to supporting our vision and delivering high quality services to Queenslanders. These achievements provide a strong foundation for our future programs of work, and are a strong refl ection on the dedication, talent and efforts of our workforce.

We’re working together to deliver better lives and greater opportunities for people and communities.

Liza CarrollDirector-GeneralDepartment of Housing and Public Works


Our DepartmentOur Vision

Our vision is making a positive difference to Queenslanders and the communities in which we live.

Our Purpose

The Department of Housing and Public Works was established in 2012 under the Public Service Act 2008 section 14(1).

Our department delivers a range of housing, building, fl eet and asset management and procurement services.

We work to ensure that those people most in need in Queensland have access to housing and homelessness assistance. We build, manage and maintain homes and we provide assistance through public housing and grant funding to registered providers. We also offer a range of services that help thousands of low income earners to enter and remain in the private rental market.

Our department also provides policy, advice and delivery of services to government agencies in the areas of construction, asset and facilities management, procurement and fl eet management.

We support the Queensland Government objectives for the community by:

• delivering quality frontline human services by providing responsive and integrated housing and homelessness services

• creating jobs and a diverse economy by promoting economic participation and supporting economic growth through safe and fair building policy, innovative procurement and service delivery

• building safe, caring and connected communities by consulting and listening to the community to inform our policies and service delivery

• protecting the environment by delivering sustainable built infrastructure and fl eet management.

Our Objectives

To support our vision, our 2015–16 strategic objectives focused on the delivery of valued solutions to customers and industry in the areas of housing,

asset management, procurement, and building and construction policy through:

• strong relationships with our tenants and customers

• building safe and connected communities

• right people, right skills, right place.

Queensland Plan

The Department of Housing and Public Works’ policies, programs and services align with the Queensland Government Interim Response to The Queensland Plan (the Interim Response).

The Interim Response supports the government’s objectives for the community and identifi es the priorities and key initiatives that will contribute towards implementing Queenslanders’ vision.

The department focused on delivering quality frontline services and building safe, caring and connected communities and delivering a range of initiatives to positively infl uence people’s lives and support Queensland’s economy.

More information about our policies, programs and services can be found under the Service Areas.

Operating Environment

A range of factors impacted on the Department of Housing and Public Works’ operating environment in 2015–16 including:

• the Australian Government Reform of the Federation White Paper examining the roles and responsibilities of federal, state and territory governments which may infl uence future fi nancial arrangements and the delivery of housing assistance and homelessness services to vulnerable Queenslanders

• the Fairness Review and the outcomes of the housing strategy consultation which will provide future direction on all housing policies

• the Review of Queensland Government Procurement which will infl uence the future of procurement policies and practices to ensure probity and value for money, and that local content provisions are considered

• a renewed emphasis on the

environmental sustainability of

buildings and the Queensland

Government vehicle fl eet, including

climate change mitigation and energy

saving initiatives.

These factors were taken into

consideration when undertaking

effective risk management within the

department to help inform decision-

making. We reviewed our department’s

key risks in 2015–16 in response to our

changing environment, resulting in the

identifi cation of seven strategic risks.

These key risks were reviewed quarterly:

• services meeting needs

• engagement and communication with

stakeholders

• outcomes for Aboriginal and Torres

Strait Islander peoples

• our workforce capability

• protecting workers and people from

harm to their health, safety and welfare

• effective business systems or ICT

infrastructure

• sound strategic budget and

performance management.

Our Values

We are committed to integrity and

accountability, with our values

underpinning everything we do. Our

people are engaged in what they do, and

are committed to the following core public

service values as well as the additional

value of a healthy and safe workforce.

Customers first

Ideas into action

Unleash potential

Be courageous

Empower people

Healthy and safe workforce


Our Organisational StructureAs at 30 June 2016, the department consisted of six divisions: Housing and Homelessness Services, Building and Asset Services, Strategic Asset Management, Building Industry and Policy, Procurement Transformation, and Corporate Services. Our services are delivered through a network of regional offi ces in Queensland. These offi ces are coordinated by district offi ces and a central offi ce in Brisbane. The offi ce locations and contact details are on pages 50 to 54.

Structural Change

In 2015–16, the following structural changes occurred:

• the Housing Services division was renamed Housing and Homelessness Services and implemented the fi rst of three phases to restructure operations to ensure the most effi cient structure to meet challenges and realise opportunities for the future.

• the Offi ce of the Queensland Government Architect was transferred to the Department of Infrastructure and Local Government in December 2015.

Director-GeneralDepartment of Housing and Public Works

Minister for Housing and Public Works

Executive Director Offi ce of the Registrar

National Regulatory System

Executive Director Aboriginal & Torres Strait

Islander Strategy Unit

Director Internal Audit

Chief Finance Offi cer Finance

Executive Director Strategic

Frameworks and Capability

Executive Director Customer

Relationships and Program

Management Offi ce

Executive Director Building Industry

and Policy

Executive Director Strategy

and Policy

Executive Director Human ResourcesExecutive Director

General Goods and Services

Executive Director State-wide Operations

General Manager QFleet

Executive Director Capital and Assets

Director Governance, Planning and Performance

Director Executive

Services Unit

Director Business Services

Executive Director SEQ Operations

Executive Director Accommodation

Offi ce

Executive Director Market

Development and Programs

Executive Director Communication

and Engagement

Director Strategic Change

Management

Executive Director Technical Services

Executive Director Far North

Queensland

Executive Director Government

Employee Housing

General Manager Operations

Executive Project Director Strategic

Engagement

Executive Director Procurement

Executive Director Contract

and Delivery Management

Chief Information Offi cer

Information Services Directorate

Project Director IDC Implementation

Executive Director Strategic

Procurement

Manager Disaster

Cordination Unit

Queensland Government

Gazette

General Counsel Legal Services

Executive Director Building,

Construction and Maintenance

Executive Director Contract Services

Director Corporate Programs

Manager Integrity Services

Manager Housing Appeals

and Review

Deputy Director-General

Housing and Homelessness

Services

Assistant Director-General Strategic Asset Management

Assistant Director-General

Procurement Transformation

Deputy Director-General

Building and Asset Services

Assistant Director-General Building Industry

and Policy

Assistant Director-General

Corporate Services

Director Strategic Policy

(Plumbing Drainage,

Committees and Special Projects) Building Codes

Queensland


(QBCC)Building Codes

Queensland

Director Building Policy

and Practice


(Building)Building Codes

Queensland

Director Building Industry Engagement Unit


Towards a better housing systemThis year we initiated the development of a ten year Housing Strategy for all Queenslanders to create a housing system that is accessible and affordable, builds sustainable communities and provides opportunities for growth. We consulted broadly with Queenslanders through a mix of forums, surveys and formal submissions.

Towards a fairer building industryThe building and construction industry employed around 220,000 Queenslanders in 2015–16 and contributed approximately $44 billion to the state’s economy. This year we focussed on fairness in the building industry by investigating security of payment for subcontractors to help ensure people are paid for the work they do. We are consulting widely with stakeholders across the state.

Towards better government procurementGovernment procurement of goods, services and infrastructure is worth billions of dollars to Queensland businesses. This year we fi nalised a whole of government review of procurement policy and practices, analysing previous reviews and leading public and private sector procurement practices and consulting widely with departments, industry and peak union bodies.

Year in review



OBJECTIVE 1: STRONG RELATIONSHIPS WITH OUR TENANTS AND CUSTOMERS

Our Achievements

The following results highlight our performance during 2015–16 and the outcomes achieved against our three strategic objectives.

• Released the Working together for better housing and sustainable communities discussion paper for wide ranging consultation with the general public, stakeholders, private industry and the housing assistance sector in locations across the State. This included: 69 public sector and invitational consultation and engagement sessions, receiving 859 responses to online surveys and 147 written submissions.

• Completed a fairness review of housing policies using fairness principles to assess existing policies and guide the development of new policies.

• Implemented three new policies: Fair absence from your home, Fair listing for vacancy and Fair expectations.

• Re-established the Queensland Statewide Tenant Advice and Referral Service which provides tenants with access to free tenancy information, advice and assistance.

• Provided social rental housing to over 72,000 low income households.

• Assisted over 124,000 new households to access or sustain housing in the private market.

• Reviewed Queensland Government procurement practices resulting in the development of a new agency-led procurement operating model in which departments are responsible for their own procurement activities within a whole-of-government framework of policies and minimum standards.

• Continued to implement the broader Brisbane CBD and Fringe Area Government Offi ce Accommodation Strategy 2015–2025 which provides a signifi cant transformation in delivering a fl exible, effi cient and contemporary offi ce portfolio that takes advantage of emerging technology and, minimises offi ce vacancies.

• Held the Make a connection, make a difference Social Procurement Forum and Market Day in Brisbane and Cairns to support new jobs and connect local businesses.

See the Service area sections for more details about our achievements.

Our Achievements

488Provided

newsocial housing dwellings

Deliverednewgovernment employee houses

on Thursday Island and in Weipa37


OBJECTIVE 2: BUILDING SAFE AND CONNECTED COMMUNITIES

Our Achievements• Re-established a dedicated plumbing

industry body, the Service Trades Council, to strengthen Queensland’s building and construction industry.

• Released the Security of Payment discussion paper for public consultation aimed at developing options to protect the rights of subcontractors and contractors to receive payment for the work they do.

• Participated as a core member of the Sustainable Built Environment National Research Centre which is a leader in fostering collaboration between industry, government and

research organisations to improve Australia’s built environment industry, and the environmental sustainability of the built environment.

• Supported local economies and opportunities for regions by awarding maintenance work on behalf of customer agencies to local contractors.

• Assisted Aboriginal and Torres Strait Islander peoples with accommodation through the Employment Related Accommodation Program, including AFL Cape York House, a facility supporting young Aboriginal and Torres Strait Islander men to access

and attend secondary education in Cairns, and the launch of NRL Cowboys House in Townsville, which is due for completion in time for the 2017 school year.

• Established two, 72-hour crisis shelters in Townsville and Brisbane for women and children escaping violence.

• Delivered the multiple award winning Brisbane Open House in October 2015 with almost 66,900 people visiting 90 of Brisbane’s most unique buildings.


We have

capital projects under management,

worth $2.861 billion

1,660 WE’VE OPENED

2 newshelters

SHELTER


OBJECTIVE 3: RIGHT PEOPLE, RIGHT SKILLS, RIGHT PLACE

Our Achievements• Established the Aboriginal and

Torres Strait Islander Strategy Unit to ensure a joined-up approach to the development and delivery of policies, programs and services that meet the needs of Aboriginal and Torres Strait Islander peoples and deliver better outcomes for the community.

• Hosted the fi rst departmental Aboriginal and Torres Strait Islander Staff Forum to strengthen networks and generate ideas on how the department can better engage with Aboriginal and Torres Strait Islander communities and stakeholders, and improve our cultural competency.

• Developed and commenced implementation of an Inclusion and Diversity Action Plan to improve accountability, and to attract, develop and retain talent.

• Continued the implementation of the People and Culture Strategy to maximise the performance and potential of our people, and improve our workforce capability to better engage, enable and

connect with our tenants, customers, stakeholders, business partners and communities.

• Re-introduced the departmental graduate program.

• Supported over 100 employees to attend leadership training through the Managing for Results and the Emerging Leaders programs.

• Reduced lost time injuries by 50 per cent and had 64 per cent fewer days lost due to workplace injuries compared to 2014–15, demonstrating our commitment to improving workplace health and safety.

• Offered mental health awareness training to increase understanding of different types of mental health conditions, our responsibilities and what can be done to support people with these conditions, with 800 staff attending.


of staff responded to the

EmployeeOpinion Survey

84%empowered

of staff feel

in their jobs

87%


In 2016–17, our department will be working together to make a difference to Queenslanders by building better, safer places to live and work.

Together, our housing, building and procurement plans will help provide confi dence, security, prosperity and growth across the state.

We will be releasing our ten year Housing Strategy to help build better neighbourhoods for all Queenslanders. More social housing policies will be amended to achieve a fairer approach and better outcomes for people living in social housing.

We will be developing a Building Plan to deliver a safer, fairer building industry. In 2016–17, we will particularly focus on security of payment to contractors, non-conforming building products and reviews of building and plumbing legislation.

We will be progressing the reform program for Government procurement that was initiated in 2016, to deliver better value, support local jobs and businesses and improve social outcomes for all Queenslanders.

We will achieve the delivery of these key initiatives and our core services through the development of our One Department strategy which will commit us to greater integration and innovation in our services to Queenslanders.

Our year ahead



Service Areas

HOUSING SERVICES

Housing Services provides housing assistance and homelessness support services to Queenslanders most in need, for the duration of their need, through a mix of direct delivery and arrangements with funded service providers. This includes remote Aboriginal and Torres Strait Islander housing, social and private housing assistance, homelessness support services and crisis accommodation.

The objective of Housing Services is to deliver a fl exible, effi cient and responsive housing assistance system for our most vulnerable Queenslanders.

Our Achievements

Improving housing assistance

In 2015–16, we:

• constructed 395 new social and affordable housing dwellings, purchased 93 dwellings and completed over 11,800 upgrades

to maximise asset life or improve amenities to meet specifi c tenant needs such as disability modifi cations

• initiated development of the Queensland Housing Strategy to shape the strategic direction of housing assistance and homelessness services over the next 10 years

• released the Working together for better housing and sustainable communities discussion paper to seek feedback from Queenslanders on a range of housing issues from homelessness and social housing through to affordable rental, home ownership and retirement

• implemented three new policies: Fair absence from your home, Fair listing for vacancy and Fair expectations of behaviour policies

• developed the Fairness Charter which puts people fi rst, outlining how the department will work together with its clients, tenants, staff and network of service partners to achieve the best outcomes for people who need support

• commenced a two-year Mental Health Demonstration Project to test a new integrated housing, mental health and social service delivery model to better support social housing tenants with mental illness or related complex needs to sustain their tenancies

• established 72-hour crisis shelters in Brisbane and Townsville for women and children escaping domestic and family violence so immediate safety

and support needs can be met while they await refuge placement as part of our response to the Not Now, Not Ever: Putting an End to Domestic Violence in Queensland report

• contributed to the Advisory Taskforce for the Residential Transition for Ageing Queenslanders and worked with the Department of Communities, Child Safety and Disability Services in supporting the Taskforce with research and issues development

• worked with the Department of Communities, Child Safety and Disability Services and the National Disability Insurance Scheme Agency to prepare for the National Disability Insurance Scheme (NDIS) roll out in Queensland and create a seamless interface with housing and homelessness programs at a local level.

Delivering private market assistance

In 2015–16, we assisted over 124,000 low income households to access or remain in the private housing market. To achieve this we:

• reinstated an independent tenant advice service, known as the Queensland Statewide Tenants’ Advice and Referral Service (QSTARS), to provide all Queensland tenants with access to free tenancy information, advice and assistance – since commencement on 1 October 2015, 32,057 instances of assistance were provided

Provided social

rental housing toincluding72,000 6,800 4,400

low income households

new households

were homeless or at risk

over over


• expanded income eligibility for the Bond Loan and Rental Grants programs to include recipients of Veterans’ Affairs disability payments

• assisted 17,071 households to fi nd, secure or sustain a home in the private rental market through RentConnect services

• provided 23,301 new bond loans to households unable to afford to pay full rental bonds to move into private rental accommodation

• provided 4,283 rental grants to households experiencing a housing crisis or who were unable to afford some of the immediate costs of moving into private rental accommodation

• assisted 44,248 households through Home Assist Secure by providing free information and referral about home maintenance, repairs, modifi cations and home security to people 60 years and over, and people of any age with a disability, who wish to remain living in their home

• assisted 2,685 new households to access affordable housing through the National Rental Affordability Scheme and provided $28.2 million as incentives to investors to support over 10,200 affordable private rental dwellings across the state

• continued to support the Park and Village Information Link to provide free, independent and specialised legal advice and information to 309 manufactured home and retirement village residents

• provided 101 people in need with a rental subsidy through the Housing and Employment Program, allowing them to undertake training, education and employment

• provided housing loans and mortgage relief to 16 households.

Improving housing in Aboriginal and Torres Strait Islander communities

In 2015–16, we:

• continued to support home ownership on Aboriginal and Torres Strait Islander land, including through the transfer of 13 social housing dwellings for home ownership

• reduced overcrowding in Aboriginal and Torres Strait Islander communities by completing 201 new social housing dwellings and commencing construction of 99 dwellings

• maintained and refurbished the Aboriginal and Torres Strait Islander communities’ property portfolio of approximately 4,800 dwellings to an acceptable social housing standard

• delivered 117 serviced lots of land for social housing construction

• purchased fi ve dwellings in regional centres for the benefi t of people wishing to relocate from remote Aboriginal and

Torres Strait Islander communities

• commenced construction of NRL Cowboys House in Townsville, which will accommodate up to 50 high school students from remote communities to complete their high school education

• negotiated the new National Partnership on Remote Housing with the Australian Government, which replaces the National Partnership Agreement on Remote Indigenous Housing from 1 July 2016.

Reducing homelessness

In 2015–16, we:

• funded 127 non-government organisations to deliver 218 specialist homelessness services

• continued to deliver the Crisis Accommodation Program to complement specialist homelessness services

• completed construction of a supported accommodation complex in Woree targeting rough sleepers in Cairns, and allocated $2.4 million over three years for the delivery of support and property and tenancy management services for this apartment complex

• implemented the My Money Program in Cairns – a two-year pilot program to build the fi nancial capability of almost 500 homeless or vulnerably housed people to access and sustain housing

• partnered with Queensland Treasury to pilot a social benefi t bond initiative focussing on addressing homelessness and exploring innovative ways to improve housing and homelessness assistance in Queensland.

Bond loansRental grantsRentConnectHousing and Employment ProgramNational Rental Affordability Scheme

50,00045,00040,00035,00030,00025,00020,00015,00010,000

5,0000

2012–13 2013–14 2014–15 2015–16

Private Rental ProductsNew Households Assisted


Offi ce of the Registrar

Housing Services includes the Offi ce of the Registrar which oversees the National Regulatory System for Community Housing (NRSCH) in Queensland. The NRSCH is a national system for the registration, monitoring and regulation of community housing providers with the aim of growing the capability and capacity of these organisations. The Registrar operates independently from the funding arm of Housing Services.

The Registrar also regulates the residential services, manufactured homes and retirement village industries.

In 2015–16, we:

• registered 32 community housing providers under the NRSCH and undertook compliance action against two registered providers which resulted in a return to compliance

• registered four new retirement villages and conducted 21 compliance visits at retirement villages

• investigated options for applying rate rebates or rental assistance to residents of retirement villages including discussing concerns with the Local Government Association of Queensland

• progressed the review of the Retirement Villages Act 1999 by

meeting with seniors groups, resident and industry stakeholders and conducted consultations via the Working Together for Better Housing and Sustainable Communities discussion paper and consultation process

• renewed the accreditation of 95 residential services, provided initial accreditation of eight residential services and registered three new residential services

• prosecuted a residential service provider for failing to comply with conditions placed on their accreditation. The service chose not to re-apply for accreditation and the service ceased to operate after their existing accreditation expired

• secured an injunction against an unregistered residential service provider, requiring the provider to cease operation

• progressed the review of the Residential Services (Accreditation) Act 2002 by undertaking research with residents, operators and service providers to identify key issues

• recorded 11 new manufactured homes residential parks and conducted 31 compliance visits at recorded manufactured homes residential parks

• progressed the review of the Manufactured Homes (Residential Parks) Act 2003

• obtained a determination in the Supreme Court against a park owner, requiring the park owner to record the park in accordance with the Manufactured Homes (Residential Parks) Act 2003.

Our Future FocusOur new Strategic Plan 2016–20 sets out our long term vision to build better housing futures, and deliver greater opportunities for all Queenslanders. We are aiming to:

• improve access to safe, accessible and affordable homes

• build a fair and responsive housing assistance system

• improve the health and safety of people in their homes.

Our reviews and consultations in the past year have set a sound foundation for the department to develop and implement a new 10-year Housing Strategy in 2016-17 to shape the strategic direction of housing assistance in Queensland.

The department has undertaken extensive consultation with Aboriginal Councils and Regional Indigenous Councils to ensure new social housing constructions respond to the needs of the respective communities. To assist in the planning and to drive the momentum of the delivery of new social housing within the communities of the Torres Strait Islander Regional Council, the department established the Torres Strait Islander Housing Project Alliance Board.


Measures 2015–16Target/Est.

2015–16Actual

Effectiveness measures

Level of overall client satisfaction .. ..

The wording of this service standard has been amended to clarify that the service standard measures overall satisfaction. The methodology remains the same. ‘Client satisfaction’ is an indicator of the government's objective to provide housing assistance that is appropriate for different households.

• Bond Loans .. ..

This is a triennial measure, with the next survey to be undertaken in 2016–17.

• Home Assist Secure .. ..

This is a triennial measure, with the next survey to be undertaken in 2017–18

• Public Housing .. ..

This is a biennial measure, with the next survey to be undertaken in 2016–17.

The wording of this service standard has changed from ‘client satisfaction with social rental housing’ to ‘overall client satisfaction with public housing’. The methodology remains the same and the change is to terminology only. The National Social Housing Survey (published in the Report on Government Services) surveys public and community housing tenants separately, and reports them individually. As a result, combined client satisfaction data for public and community housing is not available.

• Community Housing .. ..

This is a biennial measure, with the next survey to be undertaken in 2016–17.

This is a new service standard measuring overall client satisfaction with community housing, enabling oversight of client satisfaction across both the public housing and community housing sectors. Mainstream community housing is managed by not-for-profi t organisations that have at some time received capital or recurrent government funding for housing services. Community housing offers short, medium or long-term tenure for low-income individuals and families, or those with particular needs not well-catered for by the private market.

Percentage of new households assisted into Government-managed social rental housing who were in very high or high need

90% 91%

Percentage of department-owned social rental housing dwellings in acceptable condition

98% 99%

Percentage of clients who were homeless, or at risk of homelessness, who needed assistance to obtain or maintain independent housing and obtained or maintained independent housing after support

64% 64%

Proportion of exits from social rental housing to private market housing that were tenant initiated

45% 51%

Variance between 2015–16 Target/Estimate and 2015–16 Actual is primarily due to increasing fl exible private market conditions and less demand for housing in resource communities. This is a new effectiveness service standard to demonstrate that private market assistance products offered by the department have a positive effect in assisting social rental housing clients to transition to the private market.

Our Performance: Housing Services



2015–16Actual


Proportion of total new households assisted to remain in, or move to, the private housing rental market that were assisted through National Rental Affordability Scheme, RentConnect, Rental Grants, Housing and Employment Program or Bond Loans

47% 52%

This is a new effectiveness service standard measuring the percentage of private market assistance provided by the department aimed at diverting people from social housing. The targets for programs relating to entering or remaining in the private rental market were met.

Proportion of newly constructed social housing dwellings meeting the Livable Housing Design guidelines gold or platinum standards

50% 50%

This is a new effectiveness service standard demonstrating effective use of resources by designing and delivering dwellings that are easier and safer for people of all ages and abilities to live in and are more capable of cost-effective adaptation to meet the changing needs and abilities of tenants.

Average wait time to allocation for assistance (months) with Government-managed social rental housing for clients in very high or high need

8 7.1

Variance between 2015–16 Target/Estimate and 2015–16 Actual is due to the continued reduction in the housing register and the stable number of allocations per year.

Percentage of under-occupied Government-owned and managed social rental housing

14.0% 15.5%

Variance between 2015–16 Target/Estimate and 2015–16 Actual is due to the management of under-occupancy being reassessed as part of the Fairness Review. This resulted in a deferral of under-occupancy reviews during 2015–16, where active management actions were not implemented, resulting in a marginal increase in under-occupancy. The Fairness Review and a broader strategy to manage under-occupancy more effectively will be implemented in 2016–17.

Effi ciency measures

Average tenancy and property management administration cost per households assisted

$1,161 $1,177

Variance between 2015–16 Target/Estimate and 2015–16 Actual is due to a decrease of 4.9 per cent in the number of households assisted while the total expenditure has decreased by 3.5 per cent.


QSTARS helping Queensland’s tenantsThe reinstatement of an independent advisory service for tenants is providing thousands of Queensland tenants with much-needed help and support. The new Queensland State-wide Tenants’ Advice and Referral Service (QSTARS) commenced on 1 October 2015, and in its fi rst nine months provided help to more than 32,000 Queenslanders.

Queenslanders like Margaret and Julie.

Margaret fi rst contacted the service after her landlord refused to correct maintenance issues she had raised, failing their legal obligation to maintain a safe premises.

After living in the property for seven years, without any repairs being done in that time, Margaret was concerned for the safety of her children, and at a loss to know how to proceed.

QSTARS provided Margaret with the support she needed to take her concerns to Queensland Civil and Administrative Tribunal, which issued an order allowing her to terminate the lease legally. She quickly found another property to live in, and is considering whether to seek compensation.

Julie was another Queenslander who contacted the service for help, when an incident of serious domestic violence meant she

needed to fi nd a safe place to live for herself and her children. Her landlord told her she would have to break her lease and pay a range of charges and rent until a new tenant was found.

Advice from QSTARS gave Julie the confi dence to re-approach her landlord, exercise her rights and negotiate a mutually agreed lease termination which allowed her to fi nd a new home.

QSTARS helps tenants understand and exercise their rights and responsibilities under the Residential Tenancies and Rooming Accommodation Act 2008. Tenants can also access face-to-face support, information and advice through offi ces in Spring Hill, South Brisbane, Southport, Palm Beach, Mackay, Caboolture, Maroochydore, Ipswich, Toowoomba, Logan, Hervey Bay, Cairns, Townsville, Rockhampton and Mount Isa.

The service is funded by the Queensland Government and managed by Tenants Queensland (TQ) and delivered in collaboration with partner organisations across Queensland. Together, TQ and their partners are building a comprehensive network of services that are making a difference to the lives of people like Margaret and Julie.



GOVERNMENT ACCOMMODATION AND BUILDING POLICY SERVICES

Government Accommodation and Building Policy Services deliver centralised management of the Queensland Government’s offi ce accommodation and employee housing portfolio, and manages signifi cant building and property initiatives. Services include developing and advising on building and plumbing legislation, codes, building policy, research, standards, design, and building industry engagement in Queensland. Services also include strategic asset management of an owned accommodation portfolio of approximately 3,100 employee residences and 200 commercial buildings, ranging from large offi ce blocks, particularly in regional centres, to non–offi ce properties, such as heritage buildings, theatres, convention centres, cultural facilities, industrial properties and bridges.

Government Accommodation and Building Policy Services provide planning, strategy and policy development, leasing and tenancy management, and maintenance management across owned and leased portfolios.

The objective of the Government Accommodation component of this service area is to deliver a high level of return on investment through strategic lease management and reduced vacancy rates, and ensure optimal use of offi ce space through effi cient fi tout.

Building Policy Services aims to maintain high standards for the

building and plumbing industry and is responsible for building and plumbing legislation, codes, research, standards, design and building industry engagement, and the development of building and plumbing policy for Queensland industry.

Our Achievements

Progressing building policy

In 2015-16, we:

• reviewed the security of payment laws and released the Security of Payment discussion paper to seek feedback from industry and the community on how best to manage security of payments for subcontractors

• held security of payment consultation sessions across Queensland to provide community stakeholders and industry with the opportunity to get involved in the process, and to improve security of payment across the state

• established the Service Trades Council, a dedicated plumbing industry regulatory body, within the Queensland Building and Construction Commission

• worked closely with industry and research organisations to advance innovation through research partnerships and initiatives

• continued to work with the Queensland Building and Construction Commission and other key building industry stakeholders to deliver high quality, cost effective and responsive strategic policy, legislation, codes and standards to the building construction industry

• undertook targeted discussions with key stakeholders and the Queensland Building and Construction Commission to develop policy proposals for a review of all existing Queensland Building and Construction Commission licence classes

• implemented the government’s commitment to ensure that only fully qualifi ed and licensed plumbers can install water meters

• delivered the multiple award winning Brisbane Open House in October 2015 with almost 66,900 visitors accessing 90 unique Brisbane buildings

• led a national group of senior offi cers in developing strategies to address issues relating to non-conforming building products

• rationalised the Queensland Development Code by removing three parts that were considered to be redundant or duplicated

• advanced reforms relating to smoke alarm legislation in collaboration with the Public Safety Business Agency and Queensland Fire and Emergency Services

• conducted state interest checks of local government planning instruments to identify matters that duplicate or confl ict with building legislation.

Delivering government accommodation

In 2015–16, we:

• delivered 37 new government employee residences to enable delivery of essential services and retain skilled government staff in Thursday Island and Weipa

• continued a maintenance program in Aboriginal and Torres Strait Islander communities and very remote areas to improve the quality and standard of government employee housing

• continued to implement a broader Brisbane CBD and Fringe Area Government Offi ce Accommodation


Strategy 2015–25 including reducing the government offi ce portfolio through vacating expiring leases and consolidating where possible

• piloted a new whole-of-government Distributed Work Centre in Ipswich, enabling 50 government workers to avoid lengthy commutes to the Brisbane CBD, preserve work/life blend and increase productivity

• completed an audit of Queensland Government-owned offi ce accommodation energy usage to determine where appropriate value for money improvements can be made

• continued to implement environmentally sustainable measures that reduce waste, improve energy and water performance in building upgrades and refurbishments where cost effective to do so

• initiated a program of energy saving retrofi t projects in owned offi ce buildings in regional Queensland and commenced a project to pilot the Green Star Interiors rating tool at 61 Mary Street, Brisbane.

Coordinating disaster response

The department remains an integral part of Queensland’s disaster management arrangements by providing support to other agencies in the key role of building and engineering services.

In 2015–16, we:

• strengthened the capacity and capability of the State to support local communities after a disaster through the development of the Temporary Emergency Accommodation Sub Plan which ensures that those displaced after a disaster event are provided with appropriate and sustainable accommodation options

• provided support to clients as a result of severe storm events across South-East Queensland in November 2015 and June 2016

• continued to support local councils with cyclone shelters by ensuring that buildings are maintained to the highest possible level, and deliver confi dence they can be used during an event.

Our Future FocusOur new Strategic Plan 2016–20 sets out our long term vision to deliver a safer, fairer and sustainable environment for advancing the building and residential living sectors for Queenslanders. We are aiming to:

• encourage innovation and growth by engaging with industry

• improve safety and fairness in the building and residential living sectors

• develop solutions for environmental sustainability.

Our extensive policy analysis and consultations in the past year have set a sound foundation for the department to develop a new Building Plan in 2016–17 encompassing safety, fairness, liveability, innovation and sustainability for buildings and houses in Queensland.

Brisbane Open House Attendance

70,000

60,000

50,000

40,000

30,000

20,000

10,000

02012 2013 2014 2015

were employed on a Thursday Island project to provide

locals

units

45

18of accommodation for

Queensland Health

Chronic Disease Centre


Leading a national approach to tackling non-conforming building productsWhen it comes to the complex issue of non-conforming

building products and non-compliance in the building

industry, Queensland is playing a lead role in setting the policy

position for the nation.

In July 2015, the national Building Ministers’ Forum

established a Senior Offi cers’ Group to investigate ways to

address non-conforming building products, and Queensland

is the group’s Chair and Secretariat. Queensland also made

a submission to a Senate Economics Reference Committee

Inquiry into non-conforming building products in 2015.

The work of the Senior Offi cers’ Group is playing a key role

in ensuring confi dence within the building and construction

industry. Both nationally and internationally, interest and

concern continues to grow when it comes to these matters,

with fi res in the Melbourne Lacrosse Tower in 2014 and in

residential towers in Dubai just two recent examples.

The Senior Offi cers’ Group has undertaken a number of actions

in response to growing concern, including preparing a report

featuring eight recommendations. This report was endorsed

by the Building Ministers’ Forum on 19 February 2016, and

released for industry consultation.

The Senior Offi cers’ Group is working to implement the report’s

recommendations, including preparing an Implementation

Roadmap which will be provided to the Building Ministers’

Forum.

These important pieces of work will lay the foundation for

the development of strategies to address the issue of non-

conforming building products. The department is committed to

continuing to work together with industry, and the Australian

Government to ensure this issue is tackled, and a strong

message can be sent that non-conforming building products

are unacceptable on our watch.




2015–16Actual


Return on investment: commercial properties included in the offi ce portfolio 6.5% 8.2%

Variance between 2015–16 Target/Estimate and 2015–16 Actual is due to the reduction in value of properties located in the Queen’s Wharf Brisbane precinct due to be vacated in 2016 to make way for the Queen’s Wharf Development.

Return on investment: government employee housing 2.2% 0.7%

Variance between 2015–16 Target/Estimate and 2015–16 Actual is due to a decrease in rental return resulting in a lower than expected return on investment. The decrease was a result of several key factors including a highly competitive rental market affecting rent levels, a decline in rent revenue due to increased vacancies and increase in costs incurred for maintenance.

Vacancy rate: offi ce portfolio 4.0% 1.4%

Variance between 2015–16 Target/Estimate and 2015–16 Actual is due to the movement of agencies with expiring leases into existing vacancies and some new demands for space which were met through existing vacancies.

Vacancy rate: government employee housing 3.0% 5.1%

Variance between 2015–16 Target/Estimate and 2015–16 Actual is due to the general downturn in the mining sector which continues to impact property values, rental returns and vacancy rates.

Work point density: average 13.5m² per person

14.7² per person

Variance between 2015–16 Target/Estimate and 2015–16 Actual is due to some underutilisation in existing buildings. Several buildings with particularly low work point density will be relinquished as part of the Queen’s Wharf Brisbane development and Brisbane CBD and Fringe Area Government Offi ce Accommodation Strategy 2015–25.

Work point density: new fi tout 12m² per person

13.1² per person

Variance between 2015–16 Target/Estimate and 2015–16 Estimated Actual is due to special agency requirements slightly exceeding target density for new fi touts.


Effi ciency measures will be developed for this Service and included in a future Service Delivery Statements.

The name of this service area has been amended from the former ‘Building Services’ to ‘Government Accommodation and Building Policy Services’. There is no structural or functional change to the service area except a name change which better refl ects the range of services provided under this service area, and differentiates the service area from the commercialised business unit of Building and Asset Services.

Our Performance: Government Accommodation and Building Policy Services


PROCUREMENT SERVICES

Procurement Services manages the Queensland Government’s procurement policy and related frameworks. It provides expert advice to stakeholders, and supports agencies to achieve their procurement outcomes by sharing best practice, providing policy support and advice, and developing whole-of-government frameworks in areas including capability and performance.

The objective of Procurement Services is to support whole-of-government procurement to deliver benefi ts for government, suppliers and the community.

Our AchievementsIn 2015-16, we:

• conducted a Review of Queensland Government Procurement, which included recommendations for:

- probity to be recognised as a core element of the Queensland Procurement Policy

- value for money to be more clearly defi ned to take into account economic, environmental and social factors

- establishment of a new whole-of-government procurement function to support agency-led procurement

• commenced implementation of recommendations from the Review, including work to establish the new whole-of-government Offi ce of the Chief Advisor – Procurement from 1 July 2016

• held a procurement co-design workshop attended by Directors-General, procurement and fi nance senior executives and industry stakeholders to collaborate on the new procurement operating model

• enabled agencies to build their internal procurement capability to support agency service delivery outcomes for Queenslanders through our comprehensive procurement learning and development program

• raised awareness of the value opportunities social procurement can offer government buyers and social enterprises by hosting social market day events in Brisbane on 4 August 2015, and in Cairns on 10 March 2016.

Our Future FocusOur new Strategic Plan 2016–20 sets out our long-term vision to deliver greater value and support for employment and economic opportunities for Queenslanders. We are aiming to:

• drive strategic and innovative procurement across sectors

• generate new ideas and solutions through partnerships

• make smarter use of resources and assets.

Our comprehensive reviews and consultations in the past year have set a sound foundation for the department to deliver a new Procurement Strategy to ensure best practice procurement that supports local jobs and businesses, and improves social outcomes in Queensland.

674Queensland Government

employees undertook a

Training Needs Assessment

in procurement

720Queensland Government

employees undertook a

Training Needs Assessment in

contract management



2015–16Actual


An effectiveness measure is being developed for this Service and included in future Service Delivery Statements.


Operating cost as percentage of managed spend 0.09% 0.096%

This measure was a new services standard for 2015–16 and will be discontinued in 2016–17 due to outcomes of the Interdepartmental Committee Review of Queensland Government Procurement.

This is a service standard measuring cost effi ciency. The measure is calculated based on the operating cost of the business unit which is responsible for the oversight and management of government spend on general goods and services.

The small increase in operating costs is attributable to a cost centre reallocation for expenses which were not originally allocated to the General Goods and Services cost centre when the original budget was developed. This expenditure was necessary to effectively manage the $2.3 billion spend under whole-of-government procurement arrangements.

Our Performance: Procurement Services


Leveraging procurement to improve social outcomesA strategic approach to procurement ensures we can drive our dollar further, with improved outcomes – not just fi nancial savings, but social and community benefi ts, job creation, sustainable solutions, and greater effi ciency.

This approach underpins the Queensland Government Procurement (QGP) approach, and ensures value for money is measured more broadly than just ‘price paid’.

To support this approach and build capability in this area, QGP has hosted two social procurement forums and market days – in Brisbane and Cairns – providing a forum to foster and build a shared understanding of socially responsible procurement.

The events, held in August 2015 and March 2016, provided opportunities to strengthen relationships between buyers and suppliers, to better understand the challenges and

opportunities on both sides, and explore new ways government can further integrate social opportunities into the way we buy and manage goods and services.

Through both events, more than 100 regional social, disability and Aboriginal and Torres Strait Islander enterprises were given exposure to government buyers, and a chance to facilitate conversations about how to work together to achieve social and environmental outcomes for Queenslanders.

Guest speakers from the social enterprise sector and government procurement specialists who are experienced in building social outcomes into procurement processes, provided insight into how to build sustainable, inclusive and resilient communities – through employment, training and building independence and capacity.


Commercialised Business Units

BUILDING AND ASSET SERVICES

Building and Asset Services is a strategic partner to Queensland Government agencies in the planning and delivery of building, construction and maintenance programs. Building and Asset Services focuses on asset lifecycle management frameworks to manage government risk associated with diverse building asset portfolios.

Working closely with industry and local suppliers, Building and Asset Services strives to maximise value for money procurement and contract management outcomes through innovative procurement arrangements with industry. This assists government agencies to meet their service delivery outcomes for the community, and provides employment opportunities across the state including in regional and remote communities.

Building and Asset Services has in place controls to identify fraud in relation to goods and services to ensure works being carried out by contractors on behalf of the government have been delivered in line with contracts and/or extent of works.

The objective of Building and Asset Services is to deliver coordinated procurement and contract management services for building, construction and maintenance-related activities for Queensland Government agencies, focusing on providing value for money.

Our AchievementsIn 2015–16, we:

• partnered with other Queensland

government agencies to deliver capital

works projects and programs that

deliver outcomes for Queenslanders,

and at 30 June 2016, 1,660

capital works projects were under

management, with a total project

value of $2.861 billion

• maximised opportunities to support

local employment and build regional

capability and resilience by extending

work to a broader base of local

contractors across the state through

the implementation of the Unplanned

Maintenance and Minor Upgrade

Services Standing Offer Arrangement

• delivered cost effective services and

solutions in remote communities

and worked closely with Aboriginal

and Torres Strait Island Councils

to build procurement and contract

management capability that will

improve local economies

• delivered effi ciencies in transacting

with government through the

implementation of an electronic

invoicing solution to the contractor

web portal to support prompt

payments to contractors

• supported the delivery of 174

new houses under the National

Partnership Agreement on Remote

Indigenous Housing

• implemented enhanced procurement arrangements such as the facilities management agreement at the Roma State College which was designed to reduce future unplanned maintenance works and the costs associated with these tasks. Through engagement with local contractors, maintenance tasks were able to be bundled to achieve improved value for money outcomes

• maintained a rapid response capacity to support disaster recovery, urgent after-hours repairs, asbestos issues, and vandalism impacting Queensland Government facilities

• delivered work in central and northern Queensland on behalf of various internal and external customers to provide economic stimulus as part of the government-wide Accelerated Works Program.

Our Future FocusOur new Strategic Plan 2016–20 sets out our long-term vision to deliver our services as one department, ready to innovate and integrate. Building and Asset Services plays a key collaborative role in the development and implementation of our strategies for housing, building and procurement.

Our changing business practices and stronger partnerships in the past year have set a sound foundation for the department to support jobs and regions and maximise effi ciencies and value for money in Queensland.

Maintaining high levels

of customer satisfaction2013–14 2015–16

82% 84%


Partnering Agreements are in

place with 10 Aboriginal and

Torres Strait Island councils to

deliver maintenance services

to their local community

which supports the local

economy and provides jobs

for the community.


2015–16Actual


Overall customer satisfaction 80% 84%

This is a biennial customer satisfaction survey. Variance between 2015–16 Target/Estimate and 2015–16 Actual is due to improved customer engagement processes implemented during the past two years.


Gross profi t as a percentage of sales 8.1% 8.1%

No variance between 2015–16 Target/Estimate and the 2015–16 Actual

Net profi t before tax and dividends as a percentage of sales 0.1% 0.4%

Variance between the 2015–16 Target/Estimate and the 2015–16 Actual is mainly due to the net contribution from the increased volume of work delivered.

Current Ratio 1.75:1 1.80:1

Variance between 2015–16 Target/Estimate and 2015–16 Actual is due to a higher cash balance than original budgeted as a result of improved collections from customers.

Value created from better procurement 10% 9%

This service standard has been discontinued as the measure related to the procurement arrangements for unplanned maintenance and service maintenance sourced and implemented during 2015–16.

Our Performance: Building and Asset Services


Roma State CollegeRoma State College in the state’s south-west has been the benefi ciary of a collaborative and proactive approach to school maintenance by Building and Asset Services (BAS), and now a further 17 Queensland schools are reaping the benefi ts.

In May 2015, BAS, the Department of Education and Training (DET) and the Roma State College worked together to trial a new, integrated facilities management approach over a four-year period.

A preventative maintenance schedule of works to identify and address existing and emerging issues was developed across the College’s three campuses, with the aim of reducing unplanned maintenance works.

Bundling of maintenance work is at the core of the new process, which has reduced administration work, and reduced

the number of work orders being generated by 60 per cent. Each term, all unplanned maintenance tasks are captured on a single work order, with bundled work completed at the same time, delivering signifi cant callout savings and minimising disruption.

Local contractors are engaged where possible, and the new forward-focussed approach is having positive fl ow-on effects for local apprentices and trainees. With contractors able to plan ahead over multiple years, young workers can be taken on, which is helping to build local industry capability.

The Roma State College trial led to a further 11 schools in the surrounding Warrego/Carnarvon area being included by DET in October 2015 in this program, followed by a further seven schools – one in each DET region throughout Queensland.


QFLEET

QFleet delivers value to government through the effective management of a fl eet of approximately 9,900 vehicles. Located throughout the state, the fl eet is a high value government asset that enables agencies to deliver vital services to the community.As well as core departments, QFleet’s fl eet management services and expertise is available to Government Owned Corporations, statutory authorities, and approved government funded organisations.

These services include vehicle procurement and contract management, vehicle leasing, fl eet advisory services, management of servicing and maintenance, end-of-life repairs and vehicle remarketing, and whole-of-government vehicle fl eet policy and reporting.

Savings and effi ciencies are achieved through the aggregated procurement of vehicles and centralised expert fl eet management based on total cost of ownership, and risk management.

QFleet’s objective is to deliver benefi ts to the Queensland Government through the aggregated procurement of vehicles and associated services, and provides a central pool of expertise in fl eet management to whole-of-government.

Our AchievementsIn 2015–16, we:

• continued to offer negotiated Standing Offer Arrangement vehicle contract prices to other government agencies and entitled entities including Government Owned Corporations, statutory authorities, local governments and eligible non-government organisations to improve the department’s aggregated purchasing power

• undertook a review of government vehicle distribution within the Brisbane Central Business District and engaged with customer agencies to commence the development of a centralised carpooling and sharing model, supported by innovative information technology systems, in support of the Brisbane CBD and Fringe Accommodation Strategy 2015–25

• acquired 11 Mitsubishi Outlander Plug-in Electric Vehicles for a 12-month evaluation exercise to determine their suitability for inclusion in the Queensland Government fl eet, in support of the Queensland Government’s revitalised climate change agenda

• continued to support regional and remote communities by providing specialised, fi t-for-purpose transport solutions tailored to meet customer agency needs, and accommodate local conditions

• supported vehicle driver safety by re–establishing the QFleet Road Safety Manual

• project managed the procurement, design and fi t-out of 12 customised armoured perimeter patrol vehicles, in consultation with Queensland Corrective Services, for deployment at correctional centres across Queensland

• hosted the annual National Public Sector Fleet Managers’ Conference, with 130 participants from the Australian and state governments, vehicle manufacturers and international guests

• developed a fl eet environmental policy that forms the basis for improving the environmental profi le and performance of the government fl eet

• undertook an exercise to establish a panel arrangement to provide agencies with access to suppliers of in-vehicle monitoring systems and fl eet optimisation services for their vehicles.

Our Future FocusOur new Strategic Plan 2016–20 sets out our long-term vision to deliver our services as one department, ready to innovate and integrate. QFleet plays a key collaborative role in the development and implementation of our strategies for building and procurement.

Our continued focus on good practice and business improvement in the past year have set a sound foundation for the department to improve fl eet management services to achieve effi ciencies and reduce our environmental impact and also improve the safety of our fl eet drivers.

89%customer satisfaction

10% above target of 79%


QFleet 2015–16Target/Est.

2015–16Actual


Overall customer satisfaction 79% 89%

This is a biennial customer satisfaction survey.


Current ratio 1.23:1 1.08:1

Variance between the 2015–16 Target/Estimate and 2015–16 Actual is mainly due to an increase in the dividend provision from a higher operating surplus and higher payables as a result of the timing of vehicle purchases.

Return on net assets 8.5% 10.8%

Variance between the 2015-16 Target/Estimate and 2015-16 Actual is mainly due to a higher operating surplus.

Gearing level 62% 61.4%

Variance between the 2015–16 Target/Estimate and 2015–16 Actual is mainly due to a higher operating surplus, partially offset by additional borrowings to fi nance vehicle purchases.

Percentage of vehicle fl eet utilisation compared to agreed lease parameters 90% 90.1%

Our Performance: QFleet

Explored ways to improve the environmental performance of the government fl eet by evaluating a number of Mitsubishi Outlander plug-in electric vehicles in collaboration with customer agencies.

Engaged with Northern Peninsula State College in Bamaga, North Queensland to provide two school buses to promote a national school attendance initiative for Aboriginal and Torres Strait Islander communities.


QFleet Road Safety ManualQFleet’s Road Safety Manual for the Queensland Government vehicle fl eet is helping improve the safety of government drivers, their passengers and other road users.

The comprehensive manual assists agencies to develop a work-related safe driving program, and includes a policy and related processes. Presented in the context that the vehicle is a workplace and therefore covered by the Work Health and Safety Act 2011 (Qld) and associated regulations, the manual creates a clear link between road safety and workplace health and safety management.

The team drew on leading research in the area of road safety in the development of the manual, working closely with the Queensland University of Technology, Centre for Accident Research and Road Safety – Queensland (CARRS-Q) in 2016.

A number of key stakeholders were also consulted, including

the Strategic Policy, Road Safety and System Management

Branch within the Department of Transport and Main Roads;

Worksafe Victoria; the Centre of Accident Research and Road

Safety Queensland, and Monash University Accident Research

Centre.

Better management of work-related driving tasks to eliminate

or reduce risks delivers a number of benefi ts, including a

reduction in vehicle-related incidents resulting in death and

injury, reduced personal, social and economic costs, litigation

and asset damage, and improved organisational performance.

These are all benefi ts that support our department’s

commitment to health and safety and putting customers fi rst.

Department of Housing and Public Works

Road Safety ManualFOR THE QUEENSLAND GOVERNMENT VEHICLE FLEET

QFleet


GovernanceOur governance framework ensures that our strategic objectives are achieved, accountabilities are clear, and that resources are allocated appropriately to maximise the effective delivery of services. The governance framework refl ects our commitment to high standards of professional conduct, and honest and ethical business practices. The following principles underpin the framework:

• strong leadership

• responsible, informed and ethical decision making

• transparency, accountability and probity

• compliance with legislative and prescribed requirements

• embracing change and changing technology

• performance improvement.

The core components of the governance framework are reviewed regularly and include:

• effective organisational structures, delegations and accountability mechanisms

• a comprehensive governance committee structure

• strategic planning, risk management, performance monitoring and reporting

• corporate policies, procedures and guidelines

• compliance and systems assurance reviews.

The governance framework assists the Director-General as the accountable offi cer to meet the requirements of the Public Sector Ethics Act 1994 and the Financial and Performance Management Standard 2009.

Executive Leadership TeamThe Executive Leadership Team is our principal governing body, responsible for setting the strategic direction of the department, and overseeing performance, program and project management. The Executive Leadership Team supports the Director-General, as our accountable offi cer, in meeting the legislative requirements and accountabilities.

The Executive Leadership Team is responsible for:

• leading and setting our strategic direction

• setting our appetite for risk

• providing direction for the risk management system, involving regular reviews and monitoring of risks, including fraud and corruption

• endorsing recommendations from sub-committees regarding our strategic direction, goals, policies and performance

• overseeing the implementation of programs and policies

• monitoring performance and reporting requirements including the fi nancial performance of our department

• providing a forum for debating and discussing strategic and key operational issues.

As at 30 June 2016, the Executive Leadership Team was supported by fi ve sub-committees which advised on matters within their terms of reference, and whose chairs reported to the Executive Leadership Team.

Chair: Director-General

Members:

• Deputy Director-General, Housing and Homelessness Services

• Deputy Director-General, Building and Asset Services

• Assistant Director-General, Strategic Asset Management

• Assistant Director-General, Building Industry and Policy

• Assistant Director-General, Procurement Transformation

• Assistant Director-General, Corporate Services

• Executive Director, Offi ce of the Registrar, National Regulatory System

• Executive Director, Aboriginal and Torres Strait Islander Strategy Unit.


Liza Carroll


BEd; MEd (Hons)

Liza joined the Department of Housing and Public Works as Director-General in August 2015 with over 15 years’ experience working in the Australian Public Service in senior roles in the Department of Prime Minister and Cabinet and the former Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA).

Previously Liza was the Associate Secretary, Indigenous Affairs, Prime Minister and Cabinet. In this role, Liza was responsible for establishing a new Indigenous Affairs portfolio which amalgamated areas from eight different departments, and focussed on leading policy, program and delivery reform in Indigenous Affairs.

Prior to this, Liza spent three and half years in the position of Deputy Secretary in FaHCSIA with responsibility for housing, homelessness, families, women and children.

Executive Leadership Team Members as at 30 June 2016

Christine Castley

Member: Acting Deputy Director-General, Housing and Homelessness Services

BA/LLB, MPA

Christine joined the department in March 2016, with over 20 years’ experience in the public sector. Christine held the previous role of Senior Executive Director of Social Policy with the Department of the Premier and Cabinet, and provided whole-of-government leadership and coordination on a wide range of social and justice issues. During 2014–15, Christine led the Secretariat to the Taskforce on Domestic and Family Violence, working closely with the Honourable Dame Quentin Bryce AD CVO, Government, Opposition and Independent Members of Parliament, as well as community sector representatives. Previously, Christine worked in a variety of agencies including the Department of Natural Resources and Mines, the Department of State Development, the Queensland Performing Arts Trust, and has had primary responsibility for developing signifi cant public sector legislation.

Graham Atkins

Member: Deputy Director-General, Building and Asset Services

BA Science (Quantity Surveying), Associate Dip. of Applied Science (Building)

Graham has vast experience in the building and construction industry that spans a number of decades. Graham has contributed to the Executive Leadership Team in his role as Deputy Director-General since July 2011. Through Graham’s leadership, Building and Asset Services has emerged as a strategic partner to government agency customers.

Graham has held senior executive positions within other government departments, including Deputy Director-General of the Department of Education and Training, where he was responsible for infrastructure planning and delivery. Graham holds a Queensland Open Builders Licence.


Fiona Wright

Member: Acting Assistant Director-General, Strategic Asset Management

BCom, GAICD, Dip Proc

Fiona has been acting Assistant Director-General, Strategic Asset Management since November 2013. Fiona has over 25 years’ experience in leadership roles across the insurance, retail and building industries. Since joining government in 1999, Fiona led Corporate Services, and established Human Resources within the government’s Shared Services. Fiona was appointed to the role of General Manager, QFleet in 2006, leading major reform in fl eet management across government. Most recent responsibilities have seen Fiona lead business transition in a number of commercialised business units.

Don Rivers

Member: Assistant Director-General, Building Industry and Policy

Dip Architecture, Grad Dip Building Project Management

Don was appointed to the role of Assistant Director-General, Building Industry and Policy in July 2013.

With professional qualifi cations in architecture and project management, Don joined the department in 1995 after 20 years in the private sector as an architect, delivering many of Queensland’s capital works projects. Don has held a number of positions in the department’s former commercialised business unit, Project Services, including Regional Architect, Client Manager, Portfolio Director, and General Manager.

As the Assistant Director-General, Building Industry and Policy, Don is responsible for the delivery of policy development and legislative reform related to the building industry, and maintaining open and professional stakeholder engagement with the design and building construction sector on behalf of the department.

Bernadette Ditchfi eld

Member: Acting Assistant Director-General, Procurement Transformation

BA, B.Bus

Bernadette was appointed to the role of Acting Assistant Director-General in February 2016 to lead the implementation of the recommendations from the Interdepartmental Committee Review of Queensland Government procurement. Bernadette has more than 20 years’ experience in both the private and public sectors and was most recently Executive Director, Mining and Petroleum Operations with the Department of Natural Resources and Mines, leading the development and promotion of State policies and strategies relating to mining and petroleum.


Robyn Turbit

Member: Assistant Director-General, Corporate Services

BComm BEcon

Robyn has over 37 years’ experience in government, public sector accounting and auditing.

Robyn has led Corporate Services since May 2007. Prior to this appointment, Robyn held the position of Director, Governance and Review from 2004 to 2007, and was the Manager, Internal Audit from 2001 to 2004 within the department.

Mark Francis

Member: Executive Director, Offi ce of the Registrar, National Regulatory System

BA (Psychology), Grad Dip Applied Psychology

Mark is the Registrar for Queensland for the National Regulatory System. Mark has over 35 years’ experience in the government and non–government social services sectors of disability, child care, aged care and primary health care. Mark was appointed to the Queensland public service in 1997, leading disability services in the former Department of Families, Youth and Community Care.

Neil Willmett

Member: Executive Director, Aboriginal and Torres Strait Islander Strategy

BAppHSc

Neil was appointed to the new role of Executive Director, Aboriginal and Torres Strait Islander Strategy in January 2016. Neil has over 25 years’ of senior management experience in in Australia, Canada, United States, United Kingdom and Asia. He has a strong commercial background in corporate business advisory where he has been responsible for providing leadership, governance and strategy advice to governments and global companies in the fi nance, legal, retail, aviation, engineering and oil and gas industries. Neil was awarded the Winston Churchill Fellowship in 2009.


GOVERNANCE COMMITTEES

Audit and Risk CommitteeThe Audit and Risk Committee charter sets out the authority, responsibilities, membership and the operation of the committee. The charter has been prepared largely on the basis of the Audit Committee Guidelines issued by Queensland Treasury in December 2009, and relevant provisions of the Financial and Performance Management Standard 2009. The committee observed the terms of its charter during 2015–16.

The committee provides independent advice and reasonable assurance to the Director-General that the department’s core business goals and objectives are achieved in an effi cient and economical manner, within an appropriate framework of governance, internal controls and risk management. The committee considers fi nancial statements, performance management, risk management, compliance and internal and external audit, including all Queensland Audit Offi ce audit recommendations.

Chair: Eric Muir FCPA (External Member)

Internal members:

• Executive Director, Contract and Delivery Management, Housing and Homelessness Services

• Executive Director, Government Employee Housing, Strategic Asset Management

External member:

• Neil Jackson FCPA

Past member 2015–16:

• Executive Director, Market Development and Programs, Housing and Homelessness Services.

The Audit and Risk Committee met on fi ve occasions during 2015–16. Remuneration was paid to the two external members, Eric Muir ($10,406) and Neil Jackson ($6,064).

Executive Finance CommitteeThe Executive Finance Committee was dissolved, effective from 30 June 2015. The Executive Leadership Team now has oversight of the department’s strategic fi nancial performance.

Information Steering CommitteeThe Information Steering Committee supports the Director-General in the effective discharge of legislative accountabilities. The committee ensures that ICT services and capabilities deployed by the department through the Information Services Directorate support the effi cient operation of the department’s business areas while aligning with the whole-of-government and departmental ICT strategies and objectives.

Chair: Assistant Director-General, Corporate Services

Members:






• Chief Information Offi cer

• Chief Finance Offi cer

• Queensland Government Chief Information Offi cer representative.

Observer:

• Director, Internal Audit

External Member:

• Marcus Darbyshire, Gartner.

In 2015–16, the Information Steering Committee:

• noted and assisted in the progress of the Future of Property and Tenancy Systems (FoPATS) program, iSPACE and Ellipse External Hosting Migration projects

• noted the updated Open Data Strategy 2013–17

• endorsed the establishment of two standard response ICT Disaster Recovery Kits for use by the department

• endorsed the ICT Dashboard, Information Steering Committee Terms of Reference, HPW ICT Strategic Plan, HPW Digital Business Strategy, and the ICT Governance Framework.

People and Culture Committee The People and Culture Committee advises the Director-General on human resources policy, strategies and practices to ensure compliance with relevant legislation, directives and strategic objectives within the department.

Chair: Executive Director, Human Resources

Members:

• Executive Director, State-Wide Operations, Building and Asset Services

• Executive Director, Customer Relationships and Program Management, Building and Asset Services

• Client Account Manager, Government Employee Housing, Strategic Asset Management

• Manager, Chermside Housing Service Centre, Housing and Homelessness Services

• Manager, Building Industry and Policy

• Manager, Workforce Capability, Human Resources, Corporate Services


During 2015–16, the People and Culture Committee:

• endorsed the work of the HPW Cultural Capability Committee

• conducted quarterly reviews of the departmental key risk to improve employee capability, skills and engagement

• endorsed the revised Criminal History Check policy and procedures

• supported the implementation of the Performance Excellence Framework.

Property Asset Management CommitteeThe Property Asset Management Committee provides strategic oversight of the department’s property assets with regard to acquisitions and capital works, maintenance and upgrade programs, asset disposals, and asset revaluation methodologies.

Chair: Assistant Director-General, Building Industry and Policy

Members:




• Building Construction and Maintenance Category Manager

• Chief Finance Offi cer

Observers:

• Executive Director, Accommodation Offi ce, Strategic Asset Management

• Executive Director, Capital and Assets, Housing Services

• Executive Director, Government Employee Housing, Strategic Asset Management.

In 2015–16, the Property Asset Management Committee:

• provided strategic direction for the development of the department’s 10 year Total Asset Management Plan to identify funding requirements

• monitored the department’s annual asset revaluations including methodologies, results and fi nancial impacts

• provided oversight and strategic direction on the department’s capital, maintenance and upgrade programs

• monitored and provided oversight on the department’s various divestment and investment strategies.

Workplace Health and Safety Peak CommitteeThe Workplace Health and Safety Peak Committee is responsible for providing effective leadership and strategic direction in relation to the operation of the department’s safety management systems, the monitoring and review of workplace health and safety performance and risk management, and the continuous improvement of the department’s safety performance and culture.


Members:




• Assistant Director-General, Corporate Services



• Executive Director, Aboriginal and Torres Strait Islander Strategy Unit

• Executive Director, Offi ce of the Registrar, National Regulatory System

• Executive Director, Human Resources, Corporate Services

• Director, Human Resources, Corporate Services.

During 2015–16, the Workplace Health and Safety Peak Committee endorsed the:

• implementation of the Healthy and Safe Workforce Action Plan

• continued delivery of the Pathways Health and Wellbeing Program

• domestic and family violence awareness campaign

• development of a mental health awareness training program

• continued focus on effective management of employee injuries/illnesses, including the provision of employee and manager support services.


STRATEGIC PLANNING, PERFORMANCE MONITORING AND REPORTING

Our Housing and Public Works Performance Management Framework describes the relationship between whole-of-government priorities and objectives and how these are operationalised throughout the department and integrated in our governance, planning, risk management and performance reporting processes.

In 2015–16, we conducted a major review of our Performance Management Framework to refl ect continuous improvements made in public sector performance management and our own planning, risk management and performance reporting.

During 2015–16, improvements were made to our performance data, monitoring, planning and reporting facility to improve the way performance information is presented and used, and to achieve process effi ciencies.

We undertook a major review of the department’s strategic plan and consulted with staff and stakeholders in identifying future directions for 2016–20.

To assist our divisions and enhance the quality of operational plans, an operational planning resource toolkit was developed.

RISK MANAGEMENT

Our enterprise risk management framework aligns to our governance and accountability structures.

We have a moderate risk appetite, except for workplace health and safety, and fraud and corruption, for which there is no appetite for risk.

In 2015–16, we continued to strengthen and embed risk management with a focus on improving risk maturity. A Risk Maturity Model was developed and reviews undertaken to assess risk management maturity across a number of divisions.

A communication campaign, as well as an educational program, were delivered to reinforce sound risk management practices, and build risk management awareness.

A risk management dashboard was developed during 2015–16 using a centralised platform for collating and analysing risk management data. The new dashboard shows consolidated risk profi les from across the agency.

To improve risk maturity, a Risk Management Strategy 2016–18 was developed, which will be reviewed annually. The strategy specifi es actions aimed at improving our risk management policies, processes, culture, capability and technology.

INTEGRITY SERVICES

Robust integrity arrangements are critical to business and service delivery performance and core to our democratic system of government and public confi dence in this system.

The department demonstrates its commitment to maintaining high integrity standards through the department’s Integrity Framework.

The Framework comprises four key components:

• Setting integrity standards by establishing clear departmental policy (including a Fraud and Corruption Prevention Policy and a Fraud and Corruption Control Plan)

• Implementing integrity standards by communicating and demonstrating expected performance standards and supporting staff who report suspected wrongdoing

• Monitoring integrity standards by undertaking planned and targeted reviews

• Managing non-conformance by taking action that is appropriate and which supports public confi dence in the department.

The department has an Integrity Services Unit (a specialist, independent advisory unit) which deals with complaints of fraud and corruption, including recommending and monitoring actions to prevent future wrongdoing.


INTERNAL AUDIT

Internal Audit provides independent, objective assurance and advisory services designed to improve the operations and control environment of the department. Internal Audit operates under the powers pursuant to Section 61 of the Financial Accountability Act 2009 and Part 2 Division 5 of the Financial and Performance Management Standard 2009.

The purpose, authority and responsibility of Internal Audit are formally defi ned in its charter, which is consistent with the International Standards for the Professional Practice of Internal Auditing as set by the Institute of Internal Auditors. All members of Internal Audit are obliged to apply and uphold the principles of integrity, objectivity, confi dentiality and competency under the Institute of Internal Auditors’ formal Code of Ethics.

As an internal assurance provider, Internal Audit is part of the department, yet independent from its core activities. Internal Audit reports functionally to the Audit and Risk Committee which operates in terms of its charter, and is largely based on Queensland Treasury’s Audit Committee Guidelines issued in December 2009. Internal Audit is accountable to the Director-General for its effi cient, effective and economical operation.

Internal Audit has an annual strategic and audit plan which forms the basis for its work. This plan is developed using a risk-based methodology and was endorsed by the Audit and Risk Committee prior to approval by the Director-General. Internal Audit regularly reported to the Audit and Risk Committee on progress in implementing the annual audit plan. The status of the implementation of agreed recommendations for audits completed is reported to the Audit and Risk Committee at each meeting.

Although the roles and objectives of internal and external audit differ, their activities are coordinated to obtain satisfactory audit coverage, and to minimise duplication of effort. Internal Audit operates in terms of its mandate, and is independent from external audit.

In 2015–16, Internal Audit:

• conducted 19 planned and seven unplanned projects which included advisory work and investigations, and through these activities, Internal Audit provided assurance and advice that the department’s fi nancial and operational controls are designed to manage risks, and achieve the department’s objectives in the areas reviewed

• enhanced the data analytics program in support of a sustainable control environment for the department.

INFORMATION SYSTEMS AND RECORDKEEPING

Recordkeeping is recognised by the department as an ongoing responsibility for good corporate governance. Our records are managed in accordance with the Public Records Act 2002, and policies issued by the Queensland State Archivist at whole-of-government level.

In 2015–16, we continued our progress toward compliant recordkeeping practices by:

• identifying and supporting records management activity, and planning for the relocation of our business areas in the Brisbane Central Business District from 80 George Street, to various central business district locations

• delivering training and support to our business areas to identify and manage their records held in secondary storage in accordance with the retention and disposal schedules, resulting in the lawful destruction of over 8,000 physical fi les and 2,000 archive boxes

• reviewing online recordkeeping training requirements

• reviewing and updating our policies, procedures and factsheets to include recordkeeping requirements.

INFORMATION TECHNOLOGY

Our Information and Communications Technology (ICT) and our Information Services support the strategic goals of the department.

Information Services protect information held by monitoring the reliability and security of the records in accordance with whole-of-government policies and associated reporting obligations. Any serious breaches of the department’s systems are reported to the Queensland Government Chief Information Offi cer.

Our ICT Strategic Plan 2015–19 supports the needs of the business, the whole-of-government strategic direction, and ICT industry directions.

Our department’s Digital Business Strategy has placed an emphasis on using digital technologies and channels to revitalise service delivery to customers and improve productivity.

The Information Services Directorate provides service desk support to staff who are located across Queensland. Over the last 12 months, the Service Desk has managed 66,445 enquiries from departmental offi cers. This is a signifi cant increase from 2014–15 in which the service desk managed approximately of 45,000 enquiries from departmental offi cers.

0 10,000 20,000 30,000 40,000

Self service

In person

Form

Email

Phone

Information technology service requests received


EXTERNAL REVIEWS

In 2015–16, the department was involved in several external reviews including:

• Queensland Audit Offi ce report to Parliament No. 6: 2015–16 – State public sector entities: 2014–15 fi nancial statements. The department received an unmodifi ed audit opinion.

• Queensland Audit Offi ce report to Parliament No.13: 2015–16 – Cloud Computing. The report made fi ve recommendations directed to all departments. These are being addressed through existing or planned initiatives and/or business-as-usual activities.

• Review of Queensland Government Procurement 2015.

The Queensland Government undertook a broad ranging review of its procurement practices. Nine recommendations were made, and a six point action plan was proposed. This included establishing an agency-led, centrally enabled approach to procurement, strengthening procurement governance and capability, improving engagement with industry, and understanding and addressing knowledge and information needs.

The department accepted the recommendations, and has worked collaboratively with other departments and industry representatives on implementation.

The department also responds to coronial recommendations made in fi ndings of inquests. In 2015 these include:

• fi nalised four outstanding recommendations from four previous inquests and undertook further consultation to progress three outstanding recommendations regarding inspection and maintenance of rental properties.

• as lead agency also provided an initial response and an implementation update for one recommendation from a 2014 inquest dealing with fi re safety in farmstay accommodation.

• initial responses to two recommendations from a 2015 inquest (relevant to the Queensland Building and Construction Commission) and a response to 2016 inquest regarding pool safety will be provided next fi nancial year.

• also responded to requests for information in relation to a coronial inquest that has not yet been concluded, and an investigation into a death that occurred at a public housing property.

WHOLE-OF-GOVERNMENT PLANS AND SPECIFIC INITIATIVES

Improving SustainabilityIn 2015–16, we participated on the Electric Vehicle Inter-departmental Working Group. The purpose of the working group is to develop and deliver whole-of-government policy for supporting the uptake of electric vehicles.

Improving ProcurementIn 2015–16, we continued our commitment to improving procurement across government by:

• commencing implementation of recommendations from the Inter-departmental Committee Review of Queensland Government Procurement

• maintaining stewardship of the Queensland Procurement Policy and providing advice to agencies on procurement-related policy and guidance

• enabling sector-wide procurement and contract management capability development opportunities for Queensland Government agencies, to ensure government has the skills to deliver better practice procurement outcomes.


Accommodation Strategy The department continued to implement a broader Brisbane CBD and Fringe Area Government Offi ce Accommodation Strategy 2015–25, including reducing the government offi ce portfolio through vacating expiring leases and consolidating where possible.

Queensland Shared Services InitiativesThe department continues to work with the Department of Science, Information Technology and Innovation on the Payroll System Technical Upgrade 2015, Human Capital Management Improvements and Finance Systems Futures projects to ensure that the sector is on the latest vendor supported hardware and software, remains legislatively compliant and uses the latest available product functionality.

One-Stop ShopThe Queensland Government is committed to making it simpler and easier for customers to access the information and services they need through a one-stop shop approach. This approach to service delivery is all about delivering a better, more consistent customer experience.

The Department of Housing and Public Works contributed to the whole-of-government one-stop shop program by further developing the department’s online services to make it simpler and easier for Queenslanders to access these services. The department also contributed to a range of whole-of-government projects to develop digital and online service delivery channels, allow for more joined-up services across departments and improve the customer experience of Queensland Government services.

NATIONAL AGREEMENTS AND NATIONAL PARTNERSHIP AGREEMENTS

In 2015–16, we contributed to the government’s commitment of working collaboratively with other levels of government through the:

• Australia and New Zealand Government Procurement Agreement to give Queensland businesses and suppliers non-discriminatory access to markets outside Queensland

• Australasian Procurement and Construction Council, which is a peak council, the members of which being responsible for procurement, construction, asset management and property policy delivery for the governments of Australian States and Territories and of Papua New Guinea

• Australian Building Codes Board Intergovernmental Agreement, which formalises collaboration between state, territory and Australian governments in progressing nationally consistent building and plumbing regulation

• Nationwide House Energy Rating Scheme and the National Australian Building Environment Rating System, which provides for the national coordination of energy effi ciency rating systems for residential and commercial buildings respectively

• National Affordable Housing Agreement, which provides a framework for states and territories and the Australian Government to work together to improve housing affordability and housing outcomes for Australians. The agreement funds a range of services including social housing, assistance to people in the private rental market, support and accommodation for people who are

homeless, or at risk of homelessness, and home purchase assistance

• National Partnership Agreement on Remote Indigenous Housing 2008-18, which provides funding to address overcrowding and homelessness in Aboriginal and Torres Strait Islander communities through the construction and refurbishment of dwellings. This agreement has been replaced by the National Partnership on Remote Housing for the period 2016–18 which is a $245 million funding agreement over two years

• National Partnership Agreement on Homelessness 2015–17, which is a two-year agreement to support states and territories in the reduction of homelessness and continuation of services provided to people who are homeless, or at risk of homelessness. Homelessness initiatives under the agreement operate through a mix of service models including outreach, mobile support, crisis shelters and accommodation support

• National Partnership Agreement Supporting Mental Health Reform 2011-16 which provides social and housing support for people with severe and persistent mental illness, aimed at preventing people cycling through the health system and reducing their risk of homelessness.


Our People

Service areas MOHRI FTE1

30 June 2016

Building and Asset Services 1,083.5

Housing Services 1,119.9

Offi ce of the Registrar National Regulatory System

39.1

Strategic Asset Management 113.7

Building Industry and Policy 69.5

Procurement Transformation Division

44.6

QFleet 45.0

Aboriginal and Torres Strait Islander Strategy Unit

1.0

Corporate 461.5

Total 2,977.8

Employment and Equal Opportunity Group

Actual1

Women in senior management (Senior Executive Service and Senior Offi cer positions)

37.8%

Women in management (classifi cation range of AO6 to AO8)

49.7%

Aboriginal and Torres Strait Islander staff

4.8%

People from a non-English speaking background

7.0%

People with a disability 4.2%

Workforce Profi le

Staffi ng

Equity Statistics as at 30 June 2016

Note:

1. Minimum Obligatory Human Resources Information Full Time

Equivalent (MOHRI FTE).

During 2015–16, the department’s separation rate was 5.45 per cent.

Note:

1. There were no targets set for 2015–16.

3.8%

1800 skin cancer checks

Aboriginal and Torres Strait

Islanderrepresentation

50%

M4R

reduction in number of lost time injuries

42 staff completed Managing 4 Results

staff attended mental health

awareness training800

49.7% of our management cohort are women


Workforce PlanningWe continued to align our workforce programs and strategies with the Queensland Public Sector’s Five Year Workforce Strategy and Strategic Workforce Investment Plan through the implementation of our People and Culture Strategy 2015–19.

The People and Culture Strategy identifi es ways to respond to our workforce challenges and priorities around people, leaders and culture and to:

• maximise the performance and potential of the workforce in a safe and engaging work environment

• align the capability of the workforce with our needs to deliver our objectives

• build the capability of the workforce to better engage, enable and connect with our tenants, customers, stakeholders, business partners and communities.

Employee Performance Management

To support a culture of high performance and maximise the potential of employees, we have implemented a Performance Excellence Framework that links to our People and Culture Strategy.

The Performance Excellence Framework highlights four key areas:

• recruitment and induction

• engagement

• performance and review

• recognition and reward.

The framework includes a Performance Excellence Policy, a range of guidelines and templates, and an achievement and development planning process.

During 2015–16, a range of training programs and resources were implemented to support our workforce to achieve performance excellence.

Workplace Attendance

The workplace attendance strategy, workplace attendance guidelines and reference tools continued to assist in managing staff attendance with our unplanned absenteeism rate increasing marginally by 0.14 to 10.79 days per employee during 2015–16.

Leadership and Management Development

Developing leadership and management capability remained a key focus for us in 2015–16. Leaders and managers were actively supported in their development aspirations.

We continued the Managing for Results Program to optimise individual and organisational productivity, performance and service delivery, with 42 departmental employees at the AO4 to AO8 classifi cation levels completing the program.

We continued to access the Emerging Leaders Program, facilitated by the Queensland University of Technology, to help employees develop skills to build and lead highly effective teams. A total of 92 departmental employees at the AO6 classifi cation level and above completed at least one module from this program.

The Public Service Commission provided various development offerings which were promoted and accessed by departmental employees in 2015–16.

In supporting continuous learning, nine graduates participated in the department’s graduate program.

Flexible Working Arrangements and Work-Life Balance

In 2015–16, we continued our commitment to fl exible working arrangements and work-life balance through the Flexible Work Arrangements Policy and supporting guideline.

The policy covers all fl exible work arrangement options, and recognises that supporting employees to meet their work, family and personal responsibilities in a balanced way through fl exible work arrangements can have a positive impact on individuals, their engagement and motivation, which contributes to creating a high performance culture.

The policy is supported by a Flexible Work Arrangements Guideline that provides information and guidance for employees and managers about fl exible work arrangement options, including a guide for requesting, managing and implementing fl exible work arrangements.

A fully equipped carer’s room is available in 80 George Street, Brisbane to provide employees with more fl exible options in caring for dependents at the workplace, and breastfeeding facilities have been established in other departmental offi ces and regions.

A Child Care Referral Service is available to assist employees to locate and secure child care.

An Aged Care Referral Service is available to assist employees who have the responsibility of caring for elderly relatives. The service provides employees with advice, information and appropriate referrals.

Additionally, we offer employees and their immediate family access to confi dential, professional counselling to assist with the resolution of work or personal concerns that may impact on their work or quality of life.

Workplace Health and Safety

We continued to support the fi ve Queensland public sector values, as well as the sixth, department-specifi c value of Healthy and Safe Workforce – committing to a culture of Zero Harm.

In 2015–16, our workplace health and safety performance continued to trend positively with signifi cant reductions in lost time injuries and working days lost to injury. In 2015–16, we achieved the following results:

• 50 per cent fewer lost time injuries than in 2014–15

• 64 per cent fewer days lost to workplace injury than in 2014–15.

Key achievements

• The Building and Asset Services safety management system was successfully recertifi ed to AS/NZS 4801:2001 Occupational health and safety management systems.

• Over 800 employees attended mental health awareness training as part of beyond blue’s National Workplace Program.

• Over 1,800 skin cancer checks were conducted, with 21 employees referred and treated for cancerous lesions or cancerous spots.

• Over 1,600 seasonal infl uenza vaccinations were administered.


In 2015–16, the results of the Working for Queensland Survey, Department of Housing and Public Works showed ongoing consistency in how staff perceive workplace safety in the department.

Question 2014 2015 2016

There is adequate focus on workplace safety at my workplace

81% 85% 84%

People in my workgroup are committed to workplace safety

85% 87% 86%

Industrial and Employee Relations Framework

Employees are employed under four separate certifi ed agreements:

• Building and Asset Services Certifi ed Agreement 2013 – covering Building and Asset Services offi ce staff

• QBuild Field Staff Certifi ed Agreement 8 (2011) – covering Building and Asset Services fi eld staff

• QFleet Certifi ed Agreement 2016 – covering QFleet staff

• State Government Entities’ Certifi ed Agreement 2015 (Core Agreement) – covering the remainder of the department’s employees.

During 2015–16, the department negotiated the QFleet Certifi ed Agreement 2016 and reached in-principle agreement with Together Queensland on a replacement certifi ed agreement covering Building and Asset Services offi ce staff. In addition, a replacement Core Agreement, which the department is a party to, was negotiated by the Offi ce of Industrial Relations, Queensland Treasury and peak unions.

Early Retirement, Redundancy and Retrenchment

During 2015–16, no employees received voluntary redundancy packages and there were no paid early retirement or retrenchment packages.

Code of Conduct

The Code of Conduct for the Queensland Public Service came into effect on 1 January 2011, and is approved under the Public Sector Ethics Act 1994.

The code sets out the standards of behaviour and expressly applies to all departmental employees and any volunteers, students, contractors, or consultants who perform work in any capacity for the department.

During 2015–16, we:

• continued to promote the Code of Conduct to new staff through the provision of Public Sector Ethics training during induction

• reviewed and refi ned the department’s Public Sector Ethics training and Workplace Behaviour Policy

• proactively encouraged all departmental staff to undertake online Public Sector Ethics training to ensure the currency of their understanding

• developed a dedicated Workplace Behaviour online learning module for implementation in 2016–17.

Celebrating Achievements

The achievements of staff were celebrated throughout the year, through a series of formal divisional awards ceremonies and other informal events.

Staff were recognised for their service and commitment at the Australia Day Achievement Awards and through local long service award ceremonies. In 2015–16, 45 staff received long service awards.

Our Australia Day Achievement Awards ceremony was held on 27 January 2016 in Brisbane, with awards presented to six staff by the Honourable Mick de Brenni MP, Minister for Housing and Public Works.

Special Events

During 2015–16, we celebrated a number of special events and observances.

Staff raised funds and awareness for a number of charities supporting people

who have experienced domestic and family violence, and people who are experiencing, or at risk of homelessness.

During May 2016, staff were encouraged to participate in the CEO Challenge Darkness to Daylight Challenge Run, to raise funds and help shine a light on the issue of domestic and family violence.

In June 2016, we contributed to the Vinnies’ CEO Sleepout by holding events, raising funds and collecting winter woollens to assist Vinnies’ Homelessness Services. The Director-General and the Minister participated in this event.

Other events, sponsored by divisional areas, included gold coin donation barbecues to mark International Women’s Day, Harmony Day, Reconciliation Week and Queensland Week.

To promote Harmony Day, a commemorative cookbook ‘Tastes of HPW’ was compiled, including family recipes contributed by staff to celebrate the diversity of our workforce.

The response to these initiatives were overwhelming, with staff from all parts of the department providing support and donations.

We were once again on show in August 2015, at the annual EKKA Royal Queensland Show in Brisbane. Staff volunteered their time to talk to Queenslanders about the services provided by the department in a ‘Welcome to our place’ backyard-themed display booth. More than 4,500 people visited the display during the show to fi nd out more about our building, procurement and housing services.


Legislation Administered by the Minister for Housing and Public Works as at 30 June 2016Acts administered through the Department of Housing and Public Works:

Building Act 1975This Act regulates building development approvals, building work, building classifi cation, building certifi ers and pool safety inspectors, and provides for particular matters about swimming pool safety, and sustainable buildings.

Housing Act 2003This Act seeks to improve access of Queenslanders to safe, secure, appropriate and affordable housing, and help build sustainable communities.

Housing (Freeholding of Land) Act 1957

This Act provides for the freeholding of certain land to which the Housing Act 2003 applies.

Inala Shopping Centre Freeholding Act 2006The objective of this Act is to provide for the freeholding and divestment of perpetual leases under the Housing Act 2003 in the Inala Shopping Centre.

Manufactured Homes (Residential Parks) Act 2003The main objective of this Act is to regulate and promote fair trading practices in the operation of residential parks, to protect home owners from unfair business practices, and to enable home owners and prospective home owners to make informed choices by being fully aware of their rights and responsibilities in their relationship with park owners. Another important objective of this Act is to encourage the continued growth and viability of the residential park industry in Queensland.

Plumbing and Drainage Act 2002This Act provides the legislative framework for plumbing and drainage standards in Queensland, and includes the licensing of plumbers and drainers and on-site sewerage facilities.

Residential Services (Accreditation) Act 2002This Act regulates the conduct of residential services to protect the health, safety and basic freedoms of residents,

encourages service providers to continually improve the way they conduct residential services, and supports fair trading in the residential services industry.

Retirement Villages Act 1999This Act provides for the establishment and operation of retirement villages. The main objectives of the Act are to promote consumer protection and fair trading practices in operating retirement villages and in supplying services to residents, and to encourage the continued growth and viability of the retirement village industry in the state.

Sustainable Planning Act 2009 (Chapter 7, Part 2)This Part of the Act provides for the establishment and operation of the building and development dispute resolution committees.

Acts administered through the Residential Tenancies Authority:

Residential Tenancies and Rooming Accommodation Act 2008This Act regulates, through the Residential Tenancies Authority, the rights and obligations of tenants, lessors and agents for residential tenancies and residents, providers and agents for rooming accommodation.

Acts administered through the Queensland Building and Construction Commission:

Building and Construction Industry Payments Act 2004This Act establishes a statutory-based system of adjudication to enable the prompt resolution of construction-related payment disputes on an interim basis. Under the Act, adjudication is available to persons who enter into a written or oral contract to carry out construction work, or supply related goods and services.

Queensland Building and Construction Commission Act 1991This Act regulates the building industry and establishes a licensing and regulatory system for the conduct of

building work in Queensland. The Act also establishes the Queensland Home Warranty Scheme, which provides assistance to consumers in the event that they suffer fi nancial harm as a result of a building contractor carrying out defective or incomplete residential construction work.

From 1 July 2015, the Domestic Building Contracts Act 2000 was repealed, and a new Schedule 1B relating to domestic building contracts was inserted into the Queensland Building and Construction Commission Act 1991.

Subcontractors’ Charges Act 1974This Act establishes a statutory mechanism by which a subcontractor in prescribed circumstances can secure payment of monies owed under their contract with a principal builder.

Acts administered through the Board of Architects of Queensland:

Architects Act 2002This Act regulates the registration of architects and the practice of architecture in Queensland. The main objectives of the Act are to protect the public by ensuring architectural services are provided professionally and competently, to maintain public confi dence in the standard of services provided by architects, and to uphold the standards of practice of architects.

Acts administered through the Board of Professional Engineers of Queensland:

Professional Engineers Act 2002This Act regulates the registration of professional engineers, and protects the public by ensuring professional engineering services are provided by a registered professional engineer in a professional and competent way, public confi dence in the standard of services provided by registered professional engineers is maintained, and the standards of practice of registered professional engineers are upheld.

All Queensland Government legislation is available at www.legislation.qld.gov.au.


Government BodiesStatutory BodiesThe following statutory bodies prepare separate annual reports that are provided to the Minister for Housing and Public Works.

Name of body as described in the constituting Act

Constituting Act Annual reporting arrangements

Board of Architects of Queensland Architects Act 2002 Annual report to Parliament

Board of Professional Engineers of Queensland

Professional Engineers Act 2002 Annual report to Parliament

Queensland Building and Construction Commission

Queensland Building and Construction Commission Act 1991

Annual report to Parliament

Residential Tenancies AuthorityResidential Tenancies and Rooming Accommodation Act 2008

Annual report to Parliament


Government Bodies, Boards and CommitteesThe following bodies, boards and committees were active during 2015–16 with reporting arrangements to the Department of Housing and Public Works.

Additional information on government bodies is available through the department’s open data reporting available on the following web site:

https://data.qld.gov.au/

Building and Development Dispute Resolution Committees

The Building and Development Dispute Resolution Committees were established under the Sustainable Planning Act 2009.

The Building and Development Dispute Resolution Committees provide an accessible, affordable and timely service for members of the public not satisfi ed with building, plumbing and planning decisions made by local government and private certifi ers.

Plumbing Industry Consultative Group

The Plumbing Industry Consultative Group was established in 2008 by Building Codes Queensland in the former Department of Infrastructure and Planning to facilitate consultation between key plumbing stakeholders and provide expert advice to the department on plumbing legislative and policy matters.

The membership includes state government agencies, local governments and industry peak bodies such as the Master Plumbers of Queensland and the Plumbers Union.

The Plumbing Industry Consultative Group also assisted the Department of

Housing and Public Works to deliver the Government’s election commitment to re-establish a dedicated plumbing industry regulatory body for Queensland.

Construction Industry Engagement Committee

The Construction Industry Engagement Committee was established in 2015 to facilitate strategic discussions between the department and key industry stakeholders from the building construction industry.

These discussions provide the department with the opportunity to further strengthen relationships with industry and inform policy development through a two-way exchange of information and ideas.

The committee is well supported by industry as it provides an avenue for industry stakeholders’ concerns to be discussed with industry peers and government.

Building Industry Consultative Group

The Building Industry Consultative Group was established in 2008 by Building Codes Queensland in the former Department of Infrastructure and Planning to facilitate regular informal and formal consultation between government and industry.

It is made up of key industry and government stakeholders who represent the interests of building certifi ers and other building industry practitioners.

Representatives often have a high level of technical knowledge, allowing them to provide detailed and considered feedback on complex matters relating to building codes and standards.

Brisbane Housing Company Ltd

Brisbane Housing Company Ltd is a not-for-profi t organisation that delivers affordable housing and mixed tenure developments that incorporate elements of social housing, National Rental Affordability Scheme market for sale product, retail and commercial space.

Brisbane Housing Company Ltd is required to provide the quarterly unaudited management accounts, and the annual audited balance sheet and profi t and loss account to the department.

Logan Renewal Ministerial Consultative Committee

In June 2015, the Minister for Housing and Public Works approved the establishment of the Logan Renewal Ministerial Consultative Committee. This Committee replaced the Logan Renewal Board.

The committee met in December 2015 and March 2016.

Further information about government bodies can be found at http://www.hpw.qld.gov.au/aboutus/ReportsPublications/AnnualReports/Pages/default.aspx


Open DataOverseas TravelDuring 2015–16 no departmental offi cers travelled overseas.

Consultancies Total expenditure by category of consultancies engaged by the department during 2015–16 were as follows:

Queensland Languages Service PolicyThe Policy requires Queensland Government agencies to use qualifi ed interpreters and translators accredited through the National Accreditation Authority for Translating and Interpreting services.

Notes:

1. Data is not available for this measure.

2. These fi gures are for six months only (January to June 2016) as data collection commenced in January 2016.

Consultancy category Expenditure ($)

Administration and management 786,521.43

Communication 9,703.13

Financial and accounting 12,225.00

Human resource management 198,000.00

Legal 105,777.84

Professional and Technical 3,952,743.91

Total 5,064,971.31

Queensland Language Services Policy measures

Percentage of clients that required language support for the year

Amount spent annually on interpreters engaged by agencies

Number of occasions

interpreters are engaged annually by the agency

2015–16 result

Not available1 $110,9952 20,592


Service Centre Locations

Mackay

Rockhampton

Cairns

Thursday Island

Gladstone

Maroochydore

Brisbane (see inset)

Mount Isa

Not to scale

Emerald

Robina

IpswichToowoomba

Bundaberg

Maryborough

Collinsville

Townsville

Herberton

Mapoon

Napranum

Aurukun

Pormpuraaw

RavenshoeMountt Garnett

Malanda

Cooktown

Wujal Wujal

Hope Vale

Lockhart River

Inala

Woodridge

Capalaba

Buranda

Fortitude Valley

Brisbane

Chermside

Ipswich

Borallon

Caboolture

Doomadgee

Normanton

Mornington Island

Kowanyama

Weipa

Bamaga

Seisia

Palm Island

Alexandra Hills

Northgate

Redcliffe

Rocklea

Wacol

Cannon Hill

Innisfail

Noosa

Beenleigh

Gatton

Charleville

Longreach

CunnamullaSt George

GympieKingaroy

Roma

Barcaldine

Charters TowersAyr

MareebaAtherton

Ingham

Chinchilla

Inset

Building and Asset Services - Service CentresHousing Service CentresDepartment central officeJimaylya Topsy Harry Centre Bond Loan Statewide Services Team

Key

The department has offi ces throughout Queensland in four regions: Northern Region, Central Region, Southern Region, Brisbane and North Coast Region.


Contacts

DEPARTMENT OF HOUSING AND PUBLIC WORKSCentral offi ce80 George Street, Brisbane Qld 4000PostGPO Box 2457, Brisbane Qld 4001Websitewww.hpw.qld.gov.au

BUILDING AND ASSET SERVICES OFFICE LOCATIONSThe regional offi ces are supported by a network of district offi ces and depots across the state.

Building and Asset ServicesLevel 4, 80 George Street Brisbane Qld 4000GPO Box 2937Brisbane Qld 4001Phone: 07 3008 3300Email: [email protected]: hpw.qld.gov.au

SOUTH EAST QUEENSLANDSouth East Queensland Regional Offi ce45 Barrack RoadPO Box 626Cannon Hill Qld 4170Phone: 07 3008 2116Fax: 07 3906 1722

District Offi cesIpswichLevel 4, 117 Brisbane StreetPO Box 5Ipswich Qld 4305Phone: 07 3432 2813

South Coast District Offi ceLevel 3, Eastside Robina232 Robina Town Centre DriveRobina Qld 4226PO Box 3156

Robina Post ShopRobina Town Centre Qld 4230Phone: 07 5514 9400Fax: 07 5583 1943South East Queensland Maintenance Response CentreLevel 1, 19 Corporate DriveCannon Hill Qld 4170Phone: 1300 650 917

Sunshine Coast District Offi ce14-28 Lee StreetPO Box 1680Caboolture Qld 4510Phone: 07 5432 0600Fax: 07 5420 2050

DepotsAlexandra Hills Depot69 MacArthur StreetAlexandra Hills Qld 4161Phone: 07 3824 7517Fax: 07 3820 2893

Beenleigh DepotGeorge StreetBeenleigh Qld 4207(back of Beenleigh State High School)Phone: 07 3807 6394 Fax: 07 3287 5788

Borallon DepotIvan LaneBorallon Qld 4306Phone: 07 5464 3051

Northgate Depot36 Fraser RoadNorthgate Qld 4013Phone: 07 3406 9106Fax: 07 3256 6239

Wacol DepotOld Moreton A BuildingWacol Station RoadWacol Qld 4076Phone: 07 3271 2918Fax: 07 3271 2886

SOUTH WEST QUEENSLANDSouth West Queensland Regional Offi ce120-124 Mort StreetPO Box 666Toowoomba Qld 4350Phone: 07 4614 2300Fax: 07 4615 3529

District Offi cesCharleville District Offi ce46 Edward StreetPO Box 177Charleville Qld 4470Phone: 07 4593 2200Fax: 07 4656 5069

Roma District Offi ce62 Arthur StreetPO Box 1029Roma Qld 4455Phone: 07 4578 4000Fax: 07 4624 3009

DepotsToowoomba Depot120-124 Mort StreetToowoomba Qld 4350Phone: 07 4614 2300

Charleville Depot46 Edward StreetCharleville Qld 4470Phone: 07 4593 2200

Chinchilla DepotLeichardt StreetChinchilla Qld 4470Phone/Fax: 07 4668 9884 Roma Depot62 Arthur StreetRoma Qld 4455Phone: 07 4578 4000

WIDE BAY BURNETTWide Bay Burnett Regional Offi ce44 Ariadne StreetPO Box 299Maryborough Qld 4650Phone: 07 4123 9400Fax: 07 4121 1948

District Offi cesBundaberg District Offi ce85 Dr May’s RoadPO Box 3065Bundaberg Qld 4670Phone: 07 4158 9700Fax: 07 4131 5760

DepotsBundaberg Depot85 Dr May’s RoadBundaberg Qld 4670Phone: 07 4158 9700Fax: 07 4131 5760

Gympie Depot8-10 King StreetGympie Qld 4570Phone: 07 5482 1827Fax: 07 5482 7681

Kingaroy Depot51 Prince StreetKingaroy Qld 4610Phone: 07 4162 2129Fax: 07 4162 5043

Maryborough Depot44 Ariadne StreetMaryborough Qld 4650Phone: 07 4123 9400Fax: 07 4121 1948

CENTRAL QUEENSLANDCentral Queensland Regional Offi ce149 Bolsover StreetPO Box 247Rockhampton Qld 4700Phone: 07 4838 9600Fax: 07 4938 4831


District Offi cesEmerald District Offi ce14 McKenzie StreetEmerald Qld 4720Phone: 07 4988 1206Fax: 07 4983 7451

Gladstone District Offi ce7 Soppa StreetGladstone Qld 4680Phone: 07 4977 7103Fax: 07 4979 2155

Mackay District Offi ce36 Tennyson StreetMackay Qld 4740Phone: 07 4862 7500Fax: 07 4957 2718

DepotsEmerald Depot 14 McKenzie StreetEmerald Qld 4720Phone: 07 4988 1206Fax: 07 4983 7451

Longreach Depot 91 Galah StreetLongreach Qld 4730Phone: 07 4658 3718

NORTH QUEENSLANDNorth Queensland Regional Offi ce9-15 Langton StreetGarbutt Qld 4814PO Box 561Townsville Qld 4810Phone: 07 4412 2300Fax: 07 4799 5401District Offi ce

Mount Isa District Offi ce5 Traders WaySunset Qld 4825PO Box 1659Mount Isa Qld 4825Phone: 07 4437 2520Fax: 07 4747 2777

DepotsAyr Depot203 Edward Street (cnr Churchill St)Ayr Qld 4807Phone: 07 4783 5367Fax: 07 4783 5179

Charters Towers DepotHodgkinson StreetCharters Towers Qld 4820Phone: 07 4787 2367Fax: 07 4787 7415

Doomadgee DepotGoodeedawa RoadDoomadgee Qld 4830Phone: 07 4745 8086Fax: 07 4745 8043

Ingham DepotPalm TerraceIngham Qld 4850Phone: 07 4437 2520Fax: 07 4776 3193

Mornington Island DepotLardil StreetGununaMornington Island Qld 4871Phone/Fax: 07 4745 7381

Mount Isa Depot5 Traders WaySunset Qld 4825Phone: 07 4437 2520Fax: 07 4747 2777

Normanton Depot7 Simpson StreetNormanton Qld 4890Phone/Fax: 07 4745 1019

Palm Island DepotButler Bay Palm Island Qld 4816Phone: 07 4770 1426Fax: 07 4770 1468

Townsville Depot9-15 Langton StreetGarbutt Qld 4814Phone: 07 4412 2300Fax: 07 4799 5401

FAR NORTH QUEENSLANDFar North Queensland Regional Offi ce31 Grove StreetPO Box 812Cairns Qld 4870Phone: 07 4232 4000Fax: 07 4031 2560

District Offi ceThursday Island District Offi ce44 Victoria ParadePO Box 397Thursday Island Qld 4875Phone: 07 4212 3390Fax: 07 4069 1778Depots

Atherton Depot20 Albrecht StreetPO Box 845Tolga Qld 4882Phone: 07 4095 5901Fax: 07 4095 5905

Bamaga DepotLui StreetPO Box 91Bamaga Qld 4876Phone/Fax: 07 4069 3272

Cairns Depot 31 Grove StreetPO Box 812Cairns Qld 4870Phone: 07 4232 4000Fax: 07 4031 2560

Innisfail Depot6 Laurie StreetInnisfail Qld 4860Phone/Fax: 07 4061 2175

Kowanyama DepotKunjun StreetKowanyama Qld 4876

Mareeba Depot Wallace DriveMareeba Qld 4880Phone: 07 4092 4398Fax: 07 4092 4298

Thursday Island Depot44 Victoria ParadePO Box 397Thursday Island Qld 4875Phone: 07 4212 3390Fax: 07 4069 1778

Weipa Depot 6 Tonkin DrivePO Box 509Weipa Qld 4874Phone: 07 4069 7963Fax: 07 4069 9657

HOUSING SERVICE CENTRESFor more detailed contact information, visit qld.gov.au/housing Housing Service Centres are open 8:30am to 4:30pm Monday to Friday unless stated otherwise. Email contact: [email protected]

Housing and Homelessness ServicesLevel 19, 41 George Street Brisbane Qld 4000GPO Box 690Brisbane Qld 4001Phone: 07 30074401

FAR NORTH QUEENSLAND Offi ce of the Regional Director, Far North Queensland RegionLevel 13, William Place5B Sheridan StreetCairns Qld 4870Phone: 07 4036 5538

Cairns Regional Housing Service CentreLevel 3, 5B Sheridan StreetWilliam McCormack Place 1PO Box 471Cairns Qld 4870Phone: 07 4036 5460 orToll free: 1800 623 208 (within area)

Queensland Government Agent Program – HerbertonOpen 9:00am to 1:00pm and 1:30pm to 3:30pm Thursday only56 Grace StreetHerberton Qld 4887PO Box 43Ravenshoe Qld 4888Phone: 07 4097 6660


Queensland Government Agent Program – MalandaOpen 9:00am to 4:00pm Friday onlyEcho Building, 3 English StreetMalanda Qld 4886PO Box 43Ravenshoe Qld 4888Phone: 07 4097 6660

Queensland Government Agent Program – Mount GarnetOpen 10:00am to 3:30pm Monday and Wednesday onlyPolice Station, Garnet Street Mount Garnet Qld 4872PO Box 43Ravenshoe Qld 4888Phone: 07 4097 6660

Queensland Government Agent Program – RavenshoeOpen 9:00am to 1.00pm and 1.30pm to 4:00pm Monday to Friday27-29 Grigg StreetPO Box 43Ravenshoe Qld 4888Phone: 07 4097 6660

Remote Area Housing Service CentreLevel 3, 5B Sheridan StreetWilliam McCormack Place 1PO Box 471Cairns Qld 4870Phone: 07 4036 5555

Remote Area Housing Service Centre – Aurukun Community Offi ceLot 502 Cnr Kang Kang and Ko’an StreetsSam Kerindun Senior Business PrecinctPO Box 471Cairns Qld 4870Phone: 07 4060 6140

Remote Area Housing Service Centre – Cooktown Hub12 Walker StreetPO Box 988Cooktown Qld 4895Phone: 07 4082 2300

Remote Area Housing Service Centre – Hope Vale Community Offi ce3 Muni StreetHope Vale Business Service CentreHope Vale Qld 4895PO Box 988Cooktown Qld 4892Phone: 07 4060 9231

Remote Area Housing Service Centre – Lockhart River Community Offi ceOffi ce 5 and 12Lot 31 lllway StreetLockhart River Multi Tenancy CentreLockhart River Qld 4871PO Box 471Cairns Qld 4870Phone: 07 4060 7334

Remote Area Housing Service Centre – Mapoon Community Offi ceRed Beach Road Land and Sea BuildingMapoon Qld 4874PO Box 1330Weipa Qld 4874Phone: 07 4090 9012

Remote Area Housing Service Centre – Napranum Community Offi ce3201 Wa-Tyne StreetNapranum Civic CentreNapranum Qld 4874PO Box 1330Weipa Qld 4874

Remote Area Housing Service Centre – Pormpuraaw Community Offi ceShop 1, 19 Pormpuraaw StreetPormpuraaw Qld 4871PO Box 471Cairns Qld 4870

Remote Area Housing Service Centre – Weipa Hub2 Commercial AvenuePO Box 1330Weipa Qld 4874Phone: 07 4082 4423

Remote Area Housing Service Centre – Wujal Community Offi ce128 Hartwig StreetWujal Wujal Aboriginal Shire CouncilFormer SES Shed, Town SquareWujal Qld 4895PO Box 988Cooktown Qld 4895Phone: 07 4060 8360 (diverted to Cooktown)

Thursday Island Housing Service Centre37-45 Douglas StreetPO Box 514Thursday Island Qld 4875Phone: 07 4212 3700 orToll free: 1800 623 208 (within area)

Thursday Island Housing Service Centre – Northern Peninsula Area Hub203 Mugai StreetSeisia Qld 4876PO Box 77Bamaga Qld 4876Phone: 07 4069 3588

Thursday Island Housing Service Centre – Kubin HubIkilgau YabuC/-Torres Strait Island Regional Council Offi ceKubin Qld 4875Moa Island (No phone)

NORTH QUEENSLAND REGIONOffi ce of the Regional Director, North Queensland Region143 Walker StreetPO Box 953Townsville Qld 4810Phone: 07 4724 8571

Collinsville Queensland Government Agent ProgramOpen 9.00 am to 12:30pm and 2.00pm to 4:30pm Monday to Friday64 Sonoma StreetPO Box 58Collinsville Qld 4804Phone: 07 4097 6660

Mackay Housing Service Centre22-30 Wood Street PO Box 978Mackay Qld 4740Phone: 07 4862 9500 orToll free: 1800 069 237 (within area)

Mount Isa Housing Service Centre19 West StreetPO Box 1866Mount Isa Qld 4825Phone: 07 4437 2700 or Toll free: 1800 620 466 (within area)

Mount lsa Housing Service Centre – Doomadgee Community Offi ce275 Sharpe StreetCouncil Admin BuildingDoomadgee Qld 4830PO Box 1866Mount lsa Qld 4825Phone: 07 4745 8342 or if unattended call 07 4437 7200

Mount lsa Housing Service Centre – Mornington Island Community Offi ceShop 1 and 2, 305 Lardill StreetRural Transaction CentreGununaMornington Island Qld 4871PO Box 1866Mount lsa Qld 4825Phone: 07 4745 7483 or 07 4745 7032 if unattended call 07 4437 2700

Townsville Housing Service CentreLevel 2, 143 Walker StreetPO Box 953Townsville Qld 4810Phone: 07 4724 8500 orToll free: 1800 806 197 (within area) Townsville Housing Service Centre – Palm Island Community Offi ceLot 72 Main StreetPalm Island QldPO Box 953Townsville Qld 4810Phone: 07 4799 5382


CENTRAL QUEENSLAND/NORTH COAST REGIONOffi ce of the Regional Director, Central Queensland/North Coast Region209 Bolsover StreetPO 1503Rockhampton Qld 4700Phone: 07 4848 7054

Bundaberg Housing Service Centre16 Quay StreetPO Box 1120Bundaberg Qld 4670Phone: 07 4331 7900 orToll free: 1800 809 835 (within area)

Caboolture Housing Service CentreLevel 5, Caboolture Square Shopping Centre60-78 King StreetPO Box 588Caboolture Qld 4510Phone: 07 5432 0700

Emerald Housing Service Centre99 Hospital RoadPO Box 37Emerald Qld 4720Phone: 07 4988 1600

Gladstone Housing Service CentreLevel 2, 20-22 Herbert StreetPO Box 5082Gladstone Qld 4680Phone: 07 4899 2400 orToll free: 1800 266 807 (within area)

Maryborough Housing Service Centre116 Lennox StreetPO Box 535Maryborough Qld 4650Phone: 07 4324 8600 orToll free: 1800 623 242 (within area)

Queensland Government Service CentreGround Floor, 12 First AvenuePO Box 99Maroochydore Qld 4558Phone: 07 5352 7333

Rockhampton Housing Service CentreLevel 3, 209 Bolsover StreetPO Box 1330Rockhampton Qld 4700Phone: 07 4848 7000 or Toll free: 1800 801 176 (within area)

BRISBANE REGIONOffi ce of the Regional Director, Brisbane Region831 Gympie RoadPO Box 2361Chermside CentreChermside Qld 4032Phone: 07 3007 4369

Buranda Housing Service CentreLevel 1, 221 Logan Road, BurandaPO Box 230Stones Corner Qld 4102 Phone: 07 3873 7700

Chermside Housing Service Centre3rd Floor, 18 Banfi eld StreetPO Box 2352Chermside Qld 4032Phone: 07 3917 4600

Fortitude Valley Housing Service Centre505 St Pauls TerracePO Box 445Fortitude Valley Qld 4006 Phone: 07 3034 6500

lnala Housing Service Centre14 Wirraway Parade PO Box 258lnala Qld 4077 Phone: 07 3723 2000

SOUTH WEST REGIONOffi ce of the Regional Director, South West RegionLevel 4, Icon Tower117 Brisbane StreetPO Box 255Ipswich Qld 4305Phone: 07 3437 6044

Capalaba Housing Service Centre36 Old Cleveland RoadPO Box 91Capalaba Qld 4157Phone: 07 3034 9800

Ipswich Housing Service CentreUpper Ground Level, Icon Tower117 Brisbane StreetPO Box 263Ipswich Qld 4305Phone: 07 3437 6000 orToll free: 1800 636 390

Robina Housing Service CentreShop 80, Bazaar StreetRobina Town CentrePO Box 4059Robina Town Centre Qld 4230 Phone: 07 5645 8100

Toowoomba Housing Service CentreLevel 2, Condamine Centre10 Russell StreetPO Box 418Toowoomba Qld 4350Phone: 07 4699 4400 orToll free: 1800 623 435 (within area)

Woodridge Housing Service Centre11-13 Station RoadPO Box 5Woodridge Qld 4114 Phone: 07 3884 9800

OTHER DEPARTMENTAL OFFICESBuilding Industry and Policy Level 16, 41 George StreetGPO Box 2457Brisbane Qld 4001Phone: 07 3008 2504 Email: [email protected] Internet: www.hpw.qld.gov.au

Building and Development Dispute Resolution Committees Level 16, 41 George StreetGPO Box 2457Brisbane Qld 4001Phone: 1800 804 833Email: [email protected] Internet: www.hpw.qld.gov.au

Prequalifi cation (PQC) SystemLevel 16, 41 George StreetGPO Box 2457Brisbane Qld 4001Phone: 1800 072 621Email: [email protected] Internet: www.hpw.qld.gov.au

QFleetHead Offi ceLevel 5A, 80 George StreetGPO Box 293Brisbane Qld 4001Phone: 07 3008 2633Fax: 07 3224 6242Email: qfl eet-mail@qfl eet.qld.gov.auInternet: www.qfl eet.qld.gov.au

Queensland Government Accommodation Offi ceHead Offi ceLevel 5B, 80 George StreetGPO Box 2457Brisbane Qld 4001Phone: 07 3008 2761Fax: 07 3224 6266Email: [email protected] Internet: www.hpw.qld.gov.au Government Employee HousingHead Offi ceLevel 5A, 80 George StreetGPO Box 2457Brisbane Qld 4001Phone: 07 3008 2722Fax: 07 3224 5824Email: [email protected] Internet: www.hpw.qld.gov.au

Procurement TransformationLevel 3B, 80 George StreetGPO Box 123Brisbane Qld 4001Phone: 13 QGOV (13 74 68)Email: QGP–[email protected]: www.hpw.qld.gov.au

Regulatory Services (formerly Offi ce of the Registrar)Level 4B, 80 George StreetGPO Box 690Brisbane Qld 4001Phone: 13 QGOV (13 74 68)Email: [email protected]: [email protected]: hpw.qld.gov.au


AFL Australian Football League

AS/NZS Australia/New Zealand Standard

AO Administration Offi cer

FTE Full Time Equivalent

GPO General Post Offi ce

ICT Information Communication Technology

MOHRI FTE Minimum Obligatory Human Resources Information Full Time Equivalent

NAIDOC National Aboriginal and Island Day Observance Committee

QG Queensland Government

NRL National Rugby League

QGOV Queensland Government

Glossary of Terms


FINANCIAL STATEMENTS

for the financial year ended 30 June 2016

Financial Summary 57

Statement of Comprehensive Income 59

Balance Sheet 60

Introduction to Financial Statements 61

Financial Statements 2015–16 62

Management Certifi cate 111

Independent Auditor’s Report 112


FINANCIAL SUMMARY

As at 30 June 2016 the department comprised the departmental entity (including Housing) and two commercialised business units (CBUs) (Building and Asset Services, and QFleet).

A Statement of comprehensive income and a Statement of fi nancial position for the 2015-16 fi nancial year for the department are provided on the following pages with explanations of signifi cant variances from the previous year’s results.

The department obtains the majority of its total income from user charges which comprise $1,539 million or 68.6 percent of the department’s total income of $2,244 million. User charges include:

• rent of government offi ce buildings and employee housing to other departments

• rent of social housing

• building construction and professional consultancy charges

• vehicle leasing.

General - not attributed, $46.7m (1.7%)

Government Accommodation and Building Policy Services, $657.5m (23.8%)

QFleet, $141.8m (5.1%)

Procurement Services, $15.1m (0.5%)

Building and Asset Services,$850.6m (30.8%)

Housing Services, $1,051.0m (38.1%)

Total income from continuing operations by Major Departmental Services and

Commercialised Business Units in 2015–16#

Total income from continuing operations by category in 2015–16

Gains on disposal/remeasurement of assets, $9.4m (0.4%)

Other revenue, $64.7m (2.9%)

Interest, $2.7m (0.1%)

Appropriation revenue, $620.2m (27.6%)

Grants and other contributions,$7.9m (0.4%)

User charges and fees, $1,538.8m (68.6%)


The major expense of the department is supplies and services which totals $1,535 million or 64.4 percent of the department’s expenses of $2,384 million. The major supplies and services comprise government building expenses and expenses associated with providing social housing.

The major asset of the department is property, plant and equipment which totals $18,208 million of the department’s total assets of $19,242 million (94.6 percent). The majority of this comprises social housing, commercial properties and the land on which these are situated.

# Revenue and expenses by Major Departmental Services and Commercialised Business Units do not include internal departmental transaction eliminations which are eliminated in the Statement of Financial Position.

Total expenses from continuing operations by category in 2015–16

Other expenses, $23.0m (1.0%)

Revaluation decrement, $131.3m (5.5%)

Finance/borrowing costs, $26.3m (1.1%)

Depreciation and amortisation, $253.1m (10.6%)

Impairment losses, $13.4m (0.6%)

Employee expenses, $297.8m (12.5%)

Grants and subsidies, $104.1m (4.3%)

Supplies and services, $1,535.4m (64.4%)

General - not attributed, $46.7m (1.6%)

Government Accommodation and Building Policy Services, $680.5m (23.4%)

QFleet, $121.0m (4.2%)

Procurement Services, $15.1m (0.5%)

Building and Asset Services,$847.5m (29.2%)

Housing Services, $1,192.5m (41.1%)

Total expenses from continuing operations by Major Departmental Services and

Commercialised Business Units in 2015–16#

STATEMENT BY THE CHIEF FINANCE OFFICER

In accordance with the requirements of the Financial Accountability Act 2009, the Chief Finance Offi cer has provided the Director-General with a statement confi rming the fi nancial internal controls of the department are operating effi ciently, effectively and economically in conformance with Section 57 of the Financial and Performance Management Standard 2009. The statement was presented at the Audit Committee meeting in August 2016.

The Chief Finance Offi cer has fulfi lled the minimum responsibilities as required by the Financial Accountability Act 2009.


Actual2015–16

Actual2014–15

Notes $’000 $’000

INCOME FROM CONTINUING OPERATIONS

User charges and fees 1,538,807 1,563,360

Appropriation revenue 620,184 648,809

Grants and other contributions 1 7,866 16,662

Interest 2,722 3,715

Other revenue 2 64,739 36,926

Gains on disposal/remeasurement of assets 3 9,383 21,134

Total income from continuing operations 2,243,701 2,290,606

EXPENSES FROM CONTINUING OPERATIONS

Supplies and services 1,535,379 1,543,204

Employee expenses 297,800 286,357

Depreciation and amortisation 253,097 250,273

Grants and subsidies 104,078 116,568

Finance/borrowing costs 26,261 28,944

Revaluation decrement 4 131,342 19,536

Impairment losses 13,409 15,593

Other expenses 5 23,022 38,299

Total expenses from continuing operations 2,384,388 2,298,774

Operating result from continuing operations before income tax (140,687) (8,168)

Income tax benefi t/(expense) (7,150) (7,293)

Operating result from continuing operations after income tax (147,837) (15,461)

OTHER COMPREHENSIVE INCOME

Items that will not be reclassifi ed to operating result

Increase/(decrease) in asset revaluation surplus 384,930 290,706

Total other comprehensive income 384,930 290,706

Total comprehensive income 237,093 275,245

Notes:

1. The decrease mainly relates to non-recurrent grant funding received in 2014–15 for new accommodation to house Queensland Health employees on Thursday Island.

2. The increase is mainly due to a one off accounting restatement of the lease liability as a result of the introduction of statutory rates charges for 40 year lease council properties and the receipt of proceeds in settlement of contractual arrangements from the prior sale of caravan parks.

3. The decrease is mainly due to the gains from the one-off sale of a number of non-residential properties in 2014–15.

4. The increase in revaluation decrement is mainly due to a decline in value in the building component of social housing residential dwellings.

5. The decrease is mainly due to changes in appropriation payable to the Consolidated Fund as at 30 June 2016 as part of the fi nalisation of the 2015–16 fi nancial year.

Statement of Comprehensive Incomefor the year ended 30 June 2016


Actual2015–16

Actual2014–15

Notes $’000 $’000

CURRENT ASSETSCash and cash equivalents 406,901 372,107Loans and receivables 6 143,337 176,091Inventories 7 43,546 56,489Prepayments 8 37,670 51,510Financial assets at fair value through profi t or loss 4,000 4,000Tax assets 145 483Non-current assets classifi ed as held for sale 9 62,251 46,138Total current assets 697,850 706,818NON-CURRENT ASSETS Property, plant and equipment 18,207,640 17,956,775Financial assets at fair value through profi t or loss 186,927 188,389Loans and receivables 134,300 129,533Intangible assets 13,558 18,421Deferred tax assets 2,204 2,779Total non-current assets 18,544,629 18,295,897TOTAL ASSETS 19,242,479 19,002,715CURRENT LIABILITIES Payables 10 211,221 258,885Interest-bearing liabilities 11 18,103 27,641Unearned revenue 85,871 93,826Accrued employee benefi ts 12,407 9,942Provisions 36 187Tax liabilities 149 7Other current liabilities 12 27,246 7,612Total current liabilities 355,033 398,100NON-CURRENT LIABILITIES Interest-bearing liabilities 576,348 598,547Payables 65,166 54,890Unearned revenue 31,742 33,065Deferred tax liabilities 13,540 12,455Other non-current liabilities 5,540 7,742Total non-current liabilities 692,336 706,699TOTAL LIABILITIES 1,047,369 1,104,799NET ASSETS 18,195,110 17,897,916EQUITY Contributed equity 16,139,853 16,071,417Asset revaluation surplus 1,922,352 1,537,422Accumulated surplus 132,905 289,077TOTAL EQUITY 18,195,110 17,897,916

Notes:

6. The decrease mainly refl ects a reduction in Building and Asset Services receivables due to an increased focus on improving collections from customers during 2015–16 combined with a change in phasing of actual sales which were more evenly distributed throughout the year.

7. The decrease mainly refl ects the timing of the fi nalisation of Building and Asset Services work orders during 2015–16.

8. The decrease is mainly due to the Queensland Government Insurance Fund’s decision to no longer require the prepayment of insurance premiums.

9. The increase is attributable to an increase in the number and average value of residential properties scheduled for sale.

10. The decrease is mainly due to reduced appropriation and equity adjustments payable to the Consolidated Fund as at 30 June 2016 as part of the fi nalisation of the 2015–16 fi nancial year combined with a change in phasing of activity for Building and Asset Services with work more evenly distributed throughout the year.

11. The decrease is mainly due to the repayment of the QFleet working capital facility in 2015–16.

12. The increase is mainly due to the 2015–16 component of the lease incentive for 1 William Street.

Balance Sheetas at 30 June 2016


INTRODUCTION TO FINANCIAL STATEMENTS

The following fi nancial statements have been prepared by the department and audited by the Auditor-General of Queensland:

• Statement of Comprehensive Income

• Balance Sheet

• Statement of Changes in Equity

• Statement of Cash Flows

• Statement of Comprehensive Income by Major Departmental Services and Commercialised Business Units

• Statement of Assets and Liabilities by Major Departmental Services and Commercialised Business Units

• Notes to and forming part of the Financial Statements 2015–16

• Management Certifi cate

• Independent Auditor’s Report.

General InformationThese fi nancial Statements cover the Department of Housing and Public Works.

The Department of Housing and Public Works is a Queensland Government department established under the Public Service Act 2008.

The department is controlled by the State of Queensland which is the ultimate parent.

The head offi ce and principal place of business of the department is:

80 George StreetBRISBANE QLD 4000

A description of the nature of the department’s operations and its principal activities is included in the notes to the fi nancial statements.

For information in relation to the department’s fi nancial statements, please call 07 300 83138 or visit the departmental website http://www.hpw.qld.gov.au

Amounts shown in these fi nancial statements may not add to the correct subtotals or totals due to rounding.


Department of Housing and Public WorksStatement of Comprehensive Incomefor the year ended 30 June 2016

Note 2016 2015$'000 $'000

INCOME FROM CONTINUING OPERATIONSUser charges and fees 2.1 1,538,807 1,563,360Appropriation revenue 2.2 620,184 648,809Grants and other contributions 7,866 16,662Interest 2,722 3,715Other revenue 64,739 36,926

Total revenue 2,234,318 2,269,472

Gains on disposal/remeasurement of assets 9,383 21,134Total income from continuing operations 2,243,701 2,290,606

EXPENSES FROM CONTINUING OPERATIONSSupplies and services 3.1 1,535,379 1,543,204Employee expenses 3.2 297,800 286,357Depreciation and amortisation 253,097 250,273Grants and subsidies 3.3 104,078 116,568Finance/borrowing costs 26,261 28,944Revaluation decrement 4.1 131,342 19,536Impairment losses 13,409 15,593Other expenses 3.4 23,022 38,299

Total expenses from continuing operations 2,384,388 2,298,774

Operating result from continuing operations before income tax (140,687) (8,168)

Income tax benefit/(expense) (7,150) (7,293)

Operating result from continuing operations after income tax (147,837) (15,461)

OTHER COMPREHENSIVE INCOMEItems that will not be reclassified to operating result

Increase/(decrease) in asset revaluation surplus 4.1 (d) 384,930 290,706Total other comprehensive income 384,930 290,706

Total comprehensive income 237,093 275,245

The accompanying notes form part of these statements.


Department of Housing and Public WorksBalance Sheetas at 30 June 2016

Note 2016 2015$'000 $'000

CURRENT ASSETSCash and cash equivalents 406,901 372,107Loans and receivables 4.2 143,337 176,091Inventories 4.3 43,546 56,489Prepayments 37,670 51,510Financial assets at fair value through profit or loss 4.4 4,000 4,000Tax assets 145 483

635,599 660,680

Non-current assets classified as held for sale 4.5 62,251 46,138Total current assets 697,850 706,818

NON-CURRENT ASSETSProperty, plant and equipment 4.1 18,207,640 17,956,775Financial assets at fair value through profit or loss 4.4 186,927 188,389Loans and receivables 4.2 134,300 129,533Intangible assets 13,558 18,421Deferred tax assets 2,204 2,779

Total non-current assets 18,544,629 18,295,897

TOTAL ASSETS 19,242,479 19,002,715

CURRENT LIABILITIESPayables 5.1 211,221 258,885Interest-bearing liabilities 5.2 18,103 27,641Unearned revenue 5.3 85,871 93,826Accrued employee benefits 12,407 9,942Provisions 36 187Tax liabilities 149 7Other current liabilities 27,246 7,612

Total current liabilities 355,033 398,100

NON-CURRENT LIABILITIESInterest-bearing liabilities 5.2 576,348 598,547Payables 5.1 65,166 54,890Unearned revenue 5.3 31,742 33,065Deferred tax liabilities 13,540 12,455Other non-current liabilities 5,540 7,742

Total non-current liabilities 692,336 706,699

TOTAL LIABILITIES 1,047,369 1,104,799

NET ASSETS 18,195,110 17,897,916

EQUITYContributed equity 16,139,853 16,071,417Asset revaluation surplus 4.1(d) 1,922,352 1,537,422Accumulated surplus 132,905 289,077

TOTAL EQUITY 18,195,110 17,897,916



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Department of Housing and Public WorksStatement of Cash Flows for the year ended 30 June 2016

2016 2015$'000 $'000

CASH FLOWS FROM OPERATING ACTIVITIESInflows:

User charges and fees 1,561,722 1,485,845Appropriation receipts 600,213 670,205GST input tax credits received from the Australian Taxation Office 151,253 162,438GST collected from customers 121,597 125,261Grants and other contributions 7,915 20,015Interest receipts 2,775 3,812Other 60,965 40,594

Outflows:Supplies and services (1,558,304) (1,499,103)Employee expenses (294,569) (281,577)GST remitted to the Australian Taxation Office (139,984) (159,795)GST paid to suppliers (163,429) (156,283)Grants and subsidies (97,878) (117,982)Finance/borrowing costs (26,496) (28,825)Taxation equivalents (5,010) (7,726)Other (15,896) (24,352)

Net cash provided by (used in) operating activities 204,874 232,527

CASH FLOWS FROM INVESTING ACTIVITIESInflows:

Sales of property, plant and equipment 110,671 138,346Loans and advances redeemed 28,207 26,269Redemption of other financial assets 7,272 4,260

Outflows:Payments for property, plant and equipment (328,918) (233,287)Loans and advances made (26,562) (32,307)Payments for intangible assets (312) (1,579)

Net cash provided by (used in) investing activities (209,642) (98,298)

CASH FLOWS FROM FINANCING ACTIVITIES Inflows:

Equity injections 143,457 84,243 Borrowings 20,000 20,000Outflows:

Equity withdrawals (88,930) (100,520)Borrowing redemptions (25,484) (26,281)Dividends paid (8,258) (10,810)Finance lease payments (1,223) (1,521)Transfers to other government entities - (1,995)

Net cash provided by (used in) financing activities 39,562 (36,884)Net increase (decrease) in cash and cash equivalents 34,794 97,345Cash and cash equivalents at beginning of financial year 372,107 274,762Cash and cash equivalents at end of financial year 406,901 372,107



Department of Housing and Public Works Statement of Cash Flows for the year ended 30 June 2016 2016 2015

$'000 $'000

NOTES TO THE STATEMENT OF CASH FLOWS

Reconciliation of operating result to net cash from operating activities

Operating surplus/(deficit) before income tax (140,687) (8,168)Less: income tax benefit/(expense) (7,150) (7,293)

(147,837) (15,461)Non-cash items:Depreciation and amortisation expense 253,097 250,273Motor vehicles sold 47,249 64,025Donated assets and services expensed 145 -Contributed assets and services received - (439)Impairment losses 13,116 15,570Loss/(gain) on disposal of non-current assets (3,441) (11,801)Revaluation decrement/(increment) 131,342 19,536Lease incentives (1,933) 2,560Write-off of assets 1,731 1,059Write-on of assets (12) (348)Net loss/(gain) on revaluation of financial assets (4,343) (4,668)

Change in assets and liabilities:(Increase) decrease in GST input tax credits receivable 4,116 (4,210)(Increase) decrease in loans and receivables 16,878 (31,726)(Increase) decrease in inventories 12,346 (11,847)(Increase) decrease in prepayments 13,840 (4,889)(Increase) decrease in current tax assets 483 (146)(Increase) decrease in deferred tax assets 575 1,574Acquisition of motor vehicles held for rental (97,846) (114,547)Increase (decrease) in GST payable (1,988) 5,527Increase (decrease) in payables (18,387) 73,701Increase (decrease) in interest-bearing liabilities (27,741) -Increase (decrease) in unearned revenue (9,277) 3,643Increase (decrease) in accrued employee benefits 2,468 (1,133)Increase (decrease) in provisions (151) (887)Increase (decrease) in current tax liability (2) (800)Increase (decrease) in deferred tax liability 1,085 (1,057)Increase (decrease) in other liabilities 19,361 (982)Net cash from operating activities 204,874 232,527


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Department of Housing and Public Works Notes to the financial statements 2015-16 1. Basis of preparation1.1 Authorisation of financial statements1.2 General information1.3 Statement of compliance1.4 The reporting entity1.5 Measurement1.6 Presentation1.7 New accounting standards

2. Revenue2.1 User charges and fees2.2 Appropriation revenue

3. Expenses3.1 Supplies and services3.2 Employee expenses3.3 Grants and subsidies3.4 Other expenses

4. Assets4.1 Property, plant and equipment4.2 Loans and receivables4.3 Inventories4.4 Financial assets at fair value through profit or loss4.5 Non-current assets classified as held for sale

5. Liabilities5.1 Payables5.2 Interest-bearing liabilities5.3 Unearned revenue

6. Equity6.1 Contributed equity6.2 Appropriations recognised in equity

7. Budget to actual comparison

8. Financial risk8.1 Categorisation of financial instruments8.2 Financial risk management

9. Other information9.1 Key management personnel disclosures9.2 Events occurring after balance date9.3 Unrecognised items9.4 Future impact of accounting standards not yet effective9.5 Taxation9.6 Administered activities9.7 Agency transactions and balances


Department of Housing and Public WorksNotes to the financial statements 2015-16

1 BASIS OF PREPARATION

1.1 Authorisation of financial statements

1.2 General information

1.3 Statement of compliance

1.4 The reporting entity

Department objectives

Procurement Services

Procurement services manages the Queensland Government's procurement policy and related frameworks. It provides expert advice to stakeholders, and helps enable agencies to achieve their procurement outcomes by sharing procurement information, best practice and innovation; developing whole-of-government frameworks in areas including capability, accreditation and performance; and working with agencies to reduce the cost of doing business with the Queensland Government.

The objectives and principal activities of the department are reflected in the services undertaken by the department which are summarised below:

Housing Services

Housing Services provides housing assistance and homelessness support services to Queenslanders most in need, through a mix of direct delivery and arrangements with funded service providers. This includes remote Aboriginal and Torres Strait Islander housing, social and private housing assistance, homelessness support services and crisis accommodation.

Government Accommodation and Building Policy Services

Government Accommodation and Building Policy Services (formerly known as Building Services) delivers the Queensland Government's office accommodation and employee housing portfolio and manages significant building and property initiatives.

The financial statements are authorised for issue by the Director-General and Chief Finance Officer at the date of signing the Management Certificate.

For information in relation to the department's financial statements, please call 07 3008 3138 or visit the department's website at www.hpw.qld.gov.au.

The department has prepared these general purpose financial statements in compliance with section 42 of the Financial and Performance Management Standard 2009 , the Australian Accounting Standards and Interpretations applicable to not-for-profit entities, and Queensland Treasury’s Minimum Reporting Requirements.

The Department of Housing and Public Works is a not-for-profit Queensland Government department established under the Public Service Act 2008 and controlled by the State of Queensland which is the ultimate parent. The head office and principal place of business of the department is 80 George Street, Brisbane, Queensland 4000.

Building and Asset Services

Building and Asset Services delivers coordinated procurement and contract management of construction and maintenance programs to Queensland Government agencies to build better and safer places to live and work.

QFleet

QFleet is responsible for whole-of-government fleet policy development and implementation. Services include vehicle procurement and contract management, fleet advisory services to public sector departments, as well as government-funded organisations, in-service maintenance, accident management, and end-of-life repairs and vehicle remarketing.



1.4 The reporting entity (continued)

Machinery of government changes

1.5 Measurement

1.6 Presentation

1.7 New accounting standards

• quantitative information about the significant unobservable inputs used in the fair value measurement; and• a description of the sensitivity of the fair value measurement to changes in the unobservable inputs.

The historical cost convention is used unless fair value is stated as the measurement basis.

Refer to Note 9.4 for details of the future impact of accounting standards not yet effective.

As a result of Administrative Arrangements Order (No.3) 2015 on 8 December 2015, the Office of the Queensland Government Architect was transferred to the Department of Infrastructure, Local Government and Planning.

The amendments arising from this standard seek to improve financial reporting by providing flexibility as to the ordering of notes, the identification and location of significant accounting policies and the presentation of sub-totals, and provides clarity on aggregating line items. It also emphasises only including material disclosures in the notes. The department has applied this flexibility in preparing the 2015-16 financial statements, including co-locating significant accounting policies with the related breakdowns of financial statement figures in the notes.

AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit Public Sector Entities [AASB 13]

This standard amends AASB 13 Fair Value Measurement and provides relief to not-for-profit public sector entities from certain disclosures about property, plant and equipment that is primarily held for its current service potential rather than to generate future net cash inflows. The relief applies to assets under AASB 116 Property, Plant and Equipment which are measured at fair value and categorised within level three of the fair value hierarchy (refer to Note 4.1).

As a result, the following disclosures are no longer required for those assets. In early adopting the amendments, the following disclosures have been removed from the 2015-16 financial statements:

Accounting Pronouncements Early Adopted for 2015-16

The following pronouncements have been early adopted for the 2015-16 year as required by Queensland Treasury.

AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049]

Assets are classified as current where their carrying amount is expected to be realised within 12 months after the reporting date. Liabilities are classified as current when they are due to be settled within 12 months after the reporting date, or the department does not have an unconditional right to defer settlement to beyond 12 months after the reporting date. All other assets and liabilities are classified as non-current.

Amounts included in the financial 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 specifically required.

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



2016 2015$'000 $'000

2 REVENUE

2.1 User charges and fees

Property rental 920,008 894,287Building services 434,366 458,954Vehicle leasing and sales 137,516 160,752Other 46,917 49,367Total 1,538,807 1,563,360

2.2 Appropriation revenue

Reconciliation of payments from consolidated fund to appropriation revenue recognised in operating result

Budgeted appropriation revenue 680,059 729,686Transfers from/to other headings - variation in headings - (7,329)Transfers from/to other departments - redistribution of public business (202) -Lapsed appropriation revenue (79,644) (52,152)Total appropriation receipts (cash) 600,213 670,205

Less: Opening balance of appropriation revenue receivable - (21,396)Plus: Closing balance of appropriation revenue receivable 3,540 -Plus: Opening balance of deferred appropriation payable to Consolidated Fund 16,431 -Less: Closing balance of deferred appropriation payable to Consolidated Fund - (16,431)Net appropriation revenue 620,184 632,378Plus: Deferred appropriation payable to Consolidated Fund (expense) - 16,431Appropriation revenue recognised in Statement of Comprehensive Income 620,184 648,809

Appropriations provided under the Appropriation Act 2015 are recognised as revenue when received or when a receivable is recognised after approval by Queensland Treasury.

User charges and fees controlled by the department are recognised as revenues when the revenue has been earned and can be measured reliably with a sufficient degree of certainty.

Property rental includes charges for social housing and for office accommodation supplied to other Queensland Government departments. Social housing rental charges are established so that no more than 25% of a tenant's household income is paid in rent. The department also receives rental income from community organisations, local and state government and other entities for dwellings rented. Property rental income in respect of commercial operating leases is recognised on a straight-line basis over the lease term.

Revenue for building services is recognised on fixed price construction contracts and for services rendered in accordance with the percentage of completion method. Stage of completion is measured by reference to the proportion of physical work completed. Revenue is recognised on fixed price construction contracts when the outcome of the contract is reliably known. Where the outcome is not reliably known, revenue is recognised to the value of costs incurred where it is probable that the costs are recoverable. Expected losses are recognised as an expense where it is probable that the total contract costs will exceed total contract revenue.



2016 2015$'000 $'000

3 EXPENSES

3.1 Supplies and services

Property rental 357,799 368,835Cost of sales

Building, construction and maintenance services 277,230 270,463Motor vehicles and land sold through inventory 50,249 64,506

Property repairs and maintenance 298,856 269,323Outsourced service delivery - Housing Services 175,296 169,176Rates to local governments* 161,251 154,865Consultants and contractors 26,649 45,059Motor vehicle costs 20,705 21,789Electricity and gas 23,922 25,135Service level agreement charges 13,808 19,244Travel 4,102 3,955Other 125,512 130,854Total 1,535,379 1,543,204

3.2 Employee expenses

Employee benefitsWages and salaries 228,336 215,195Annual leave levy 22,842 22,258Employer superannuation contributions 29,532 27,879Long service leave levy 5,209 4,978Termination benefits 657 3,858Other employee benefits 725 2,284

287,301 276,452

Employee-related expenses 10,499 9,905

Total 297,800 286,357

Annual leave and long service leave

Under the Queensland Government's Annual Leave Central Scheme and Long Service Leave Scheme a levy is made on the department to cover the cost of employees' annual leave (including leave loading and on-costs) and long service leave. The levies are expensed in the period in which they are payable. Amounts paid to employees for annual and long service leave are claimed from the scheme quarterly in arrears.

* The department is not required to pay general rates to local governments for properties covered by Section 95 of the Housing Act 2003 so these payments are considered special payments. Consequently, rates to local governments include special payments totalling $47.688 million (2015 $45.621 million) in respect of general rates.

Property rental expenses in respect of operating leases are recognised on a straight line basis over the period of the lease term.

Wages and salaries

Wages and salaries due (but unpaid at reporting date) are recognised in the Balance Sheet at current salary rates. As the department expects such liabilities to be wholly settled within 12 months of reporting date, the liabilities are recognised at undiscounted amounts.



2016 2015$'000 $'000

3.2 Employee expenses (continued)

Number of employees

Key management personnel and remuneration disclosures are detailed in Note 9.1.

3.3 Grants and subsidies

Housing grantsPrivate housing programs 30,435 26,483Aboriginal and Torres Strait Islander housing 63,645 78,042Social rental housing 6,758 3,380Other 1,259 6,902

Donated non-current physical assets 145 -Other grants and subsidies 1,836 1,761Total 104,078 116,568

3.4 Other expenses

Deferred appropriation payable to Consolidated Fund - 16,431Insurance premiums - Queensland Government Insurance Fund 14,837 13,335Insurance premiums - other 4,211 4,707External audit fees* 900 979Losses:**

Buildings subject to insurance 1,731 1,221Special payments:***

Court awarded damages 2 -Ex-gratia payments - payments to former Core Agreement employees 33 -Ex-gratia payments - other 33 16

Other 1,275 1,610Total 23,022 38,299

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 in which they are paid or payable. The department’s obligation is limited to its contribution to QSuper.

The QSuper scheme has defined benefit and defined contribution categories. The liability for defined benefits is held on a whole-of-government basis, and reported in those financial statements prepared pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting .

The number of employees (measured on a full-time equivalent basis) as at 30 June 2016 is 2,978 (2015 2,889).

* Total audit fees quoted by the Queensland Audit Office relating to the 2015-16 financial statements are $0.900 million (GST exclusive) (2015 actual audit fees $0.942 million). No non-audit services were provided.

** Certain losses of public property are insured with the Queensland Government Insurance Fund (QGIF). The claims made in respect of these losses have yet to be assessed by QGIF, and the amount recoverable cannot be estimated reliably at reporting date. Upon notification by QGIF of the acceptance of a claim, revenue will be recognised for the agreed settlement amount. For each accepted claim the department is liable for the first $10,000, being the insurance excess.



2016 2015$'000 $'000

3.4 Other expenses (continued)

4 ASSETS

4.1 Property, plant and equipment

Land: at fair value 9,698,570 9,380,407

Buildings: at fair value 6,927,970 7,116,666

Leased assets: at fair valueGross 1,376,638 1,296,185Less accumulated depreciation (437,471) (432,421)

939,167 863,764 Plant and equipment: at cost

Gross 372,496 375,867Less accumulated depreciation (112,732) (127,398)

259,764 248,469Infrastructure: at fair value


219,666 215,083Heritage and cultural assets: at fair value


40,090 36,192

Work in progress: at cost 122,413 96,194Total 18,207,640 17,956,775

*** Special payments include ex-gratia expenditure and other expenditure that the department is not contractually or legally obligated to make to other parties. The total of all special payments includes those disclosed within Supplies and services (Note 3.1).

Special payments during 2015-16 include one payment over $5,000 for repairs to a Rental Purchase Plan property to rectify a fault that posed a safety risk to the client.

As part of the settlement offer to finalise negotiations for the State Government Entities Certified Agreement 2015, an undertaking was made that a Section 831 one-off payment of $1,300 (or pro-rata) would be extended to those employees who resigned, retired or otherwise moved to other employment arrangements after 1 April 2016, but before the agreement was certified on 1 June 2016. These amounts are included in special payments in 2015-16.


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Department of Housing and Public Works Notes to the financial statements 2015-16

4.1 Property, plant and equipment (continued)

(a) Acquisitions

Buildings Leased assetsInfrastructureHeritage and culturalPlant and equipmentLand

Land improvements undertaken by the department are included with buildings.

(b) Measurement

$10,000$10,000$10,000

$5,000$5,000

Where a non-current physical asset is acquired by means of a finance lease, the asset is recognised at the lower of the fair value of the leased property, and the present value of the minimum lease payments. The lease liability is recognised at the same amount. Lease payments are allocated between the principal component of the lease liability and the interest expense.

Actual cost is used for the initial recording of all property, plant and equipment 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.

Where assets are received free of charge from another Queensland Government department (whether as a result of a machinery-of-government change or other involuntary transfer), the acquisition cost is recognised as the gross carrying amount in the books of the transferor immediately prior to the transfer, together with any accumulated depreciation.

Assets acquired at no cost or for nominal consideration, other than from an involuntary transfer from another Queensland Government entity, are recognised at their fair value at date of acquisition in accordance with AASB 116 Property, Plant and Equipment .

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

Plant and equipment is measured at cost in accordance with the Non-current Asset Policies for the Queensland Public Sector .The carrying amounts are not materially different from their fair value. Capital works in progress are measured at their acquisition cost or construction cost.

Land, buildings, infrastructure and heritage and cultural assets are measured at fair value as required by Queensland Treasury's Non-Current Asset Policies for the Queensland Public Sector. These assets are reported at their revalued amounts, being the fair value at the date of valuation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses where applicable.

Key judgement: The cost of items acquired during the year has been judged by management to materially represent their fair value at the end of the reporting period.

$1

Subsequent expenditure that increases the originally assessed service potential or useful life of an asset is capitalised to the value of that asset. Maintenance expenditure that merely restores original service potential (arising from ordinary wear and tear) is expensed.

Items with a lesser value are expensed in the year of acquisition.




(c) Revaluation of property, plant and equipment

Land, buildings, infrastructure and heritage and cultural assets are revalued on an annual basis, either by specific appraisals undertaken by an independent professional valuer or internal expert or by the use of appropriate and relevant indices.

The department has a Property Asset Management Committee (of which the Chief Finance Officer is a member) that oversees the valuation process undertaken by Housing Services, Queensland Government Accommodation Office and Government Employee Housing units. These units determine the specific revaluation practices and procedures. Each unit has a separate committee to provide detailed oversight of their revaluation practices, reports and outcomes arising from each annual review.

The fair values reported by the department are based on appropriate valuation techniques that maximise the use of available and relevant observable inputs and minimise the use of unobservable inputs. All assets are valued at highest and best use, which is generally consistent with current use.

All assets measured at fair value are categorised within the following fair value hierarchy, based on the data and assumptions used in the most recent specific appraisals:• level one – represents fair value measurements that reflect unadjusted quoted market prices in active markets for identical assets and liabilities• level two – represents fair value measurements that are substantially derived from inputs (other than quoted prices included within level one) that are observable, either directly or indirectly, and• level three – represents fair value measurements that are substantially derived from unobservable inputs.

For assets revalued using a cost valuation approach (e.g. current/depreciated replacement cost) - accumulated depreciation is adjusted to equal the difference between the gross amount and carrying amount, after taking into account accumulated impairment losses. This is generally referred to as the 'gross method'.

Fair value is primarily determined by establishing current market value from the sale prices of comparable properties as there are usually active and liquid residential property markets which provide sufficient applicable sales evidence. The revaluation framework for social housing assets has been developed in recognition of the large number, homogenous nature, location and density of the property portfolio.

For assets revalued using a market or income-based valuation approach - accumulated depreciation and accumulated impairment losses are eliminated against the gross amount of the asset prior to restating for the revaluation. This is generally referred to as the 'net method'.

Any revaluation increment arising on the revaluation of an asset is credited to the asset revaluation surplus of the appropriate class, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense, to the extent it exceeds the balance, if any, in the revaluation surplus relating to that asset class.

When an asset is derecognised, any revaluation surplus included in equity in respect of that asset is not transferred to accumulated surplus.

As at 30 June 2016, the department revalued its social housing properties by dividing the state into geographical regions and homogenous groups within each region according to certain criteria (including number of bedrooms, condition, previous value, age of property, building type). Properties were sampled for specific appraisal from groups where the department owns its highest proportion of properties and where there is adequate market depth to determine fair value. In 2015-16 25.07% (2014-15 25.4%) of properties were specifically appraised. Valuations that resulted in significant movements (+ or - 20% or greater than $1 million) were reviewed by the department for reasonableness against external market information.

(i) Social housing




(c) Revaluation of property, plant and equipment (continued)

• Valuers have made the assumption that the data provided by the department is current and a true reflection of the characteristics of each property, e.g. number of bedrooms and property size.• Valuers have assumed that all properties are in sound condition with no essential repairs required, or have assumed that the condition of the exterior is consistent with the interior of the building.

• All assets were valued at highest and best use. There were no assets valued where it was assumed that the highest and best use was other than its current use.

Following the specific appraisals of the representative sample of properties, separate indices were calculated for assets within each region using the mean of the ratios of the previous year’s values to the current year's values. To ensure the integrity of the valuation results used to derive the indices, the department used two independent valuers to provide specific appraisals for different properties within the sample for that region. Properties with similar characteristics were given to each valuer. The mean of the test valuations provided by the second valuation firm must be within one standard deviation (+ or -) of the mean of

accepted.

Key assumptions : The following assumptions were made in relation to the valuation of social housing properties:

The most significant inputs into the valuations were location, bedroom count, price per square metre (units generally), land size (detached houses generally), condition and a discount factor applied to accommodation in recognition of no strata title. Under the fair value hierarchy there are two inputs categorised as unobservable - condition of the property and the discount applied to some multi-unit properties without strata title on individual units.

The condition rating of the properties is supplied to the valuer as part of the valuation kit. The condition rating of the properties does not result in a significant adjustment to the valuations as the department’s renewal policy requires properties to be maintained to a satisfactory standard, with property condition assessed at least once every three years by internal inspection.

The indices were subsequently applied to properties across each region not specifically appraised, in order to derive current market values. An analysis performed by the department has indicated that on average, the variance between an indexed asset value and the valuation by an independent valuer when performed on a rotational basis is not significant, and the department’s indices are sound.

Every five years, the sample is increased to further test the robustness of the index calculation process, and to provide greater coverage of the property portfolio by specific appraisal. The increased sample size was last used in 2011-12 to provide for this precision.

Specific appraisals of land are undertaken at the same time as the related building revaluations are performed.

(i) Social housing (continued)

The discounts applied to some multi-unit residential properties where there is no strata title for individual units results in adjustments to the level two inputs that are significant to the fair value measurement, and those buildings become subject to level three hierarchy disclosures. Where single title (i.e. not strata title) exists over multi-unit properties, an adjustment is made to reflect the required costs for strata title.

• Where recent sales for comparable properties were limited, valuers have assessed market value with reference to older sales in the area, sales in comparable areas or have applied an income approach.





(ii) Leased assets - buildings on Deed of Grant in Trust (DOGIT) land

Direct comparison, capitalisation or discounted cash flow approaches, involving or a combination of these approaches. Key inputs for valuation methods include sale prices, square metre of land or building area, capitalisation rates, rent rates, discount rates, operating expense rates per square metre and lease terms. These measures are influenced by market supply and demand dynamics. Building characteristics, such as size, grade and condition as well as functional, physical and economic obsolescence factors were also determinants considered by the valuers in assessing values. Valuers are required to maximise the use of observable property market evidence in determining values. In localities with adequate market activity, valuation methods are adopted that have direct reference to recent sales evidence of comparable properties.

Some localities, particularly remote areas, lack sufficient market activity to derive building values directly from sales evidence. Also, the specialised nature of some assets, such as convention centres and other purpose built structures, do not have an active market. Fair value for these assets has been assessed using the depreciated replacement cost methodology.

Fair value for Queensland Government employee houses is determined by establishing market value, primarily by the direct comparison method of valuation, or by indexation. There are usually active and liquid residential property markets which provide sufficient applicable sales evidence. Where there is no active and liquid market for assets, fair value is the depreciated replacement cost. Where properties are indexed a number of indices are used depending on the location: • indices supplied by a registered valuer• indices applied to social housing properties• indices applied to Deed of Grant in Trust properties.

Land values were assessed by the valuers having regard to market evidence of recent and relevant land sales. Land location, size, shape, elevation, accessibility, zoning and development potential were aspects considered in determining land values. Physical, legal and statutory constraints, such as heritage listings, easements, flooding and environmental, were also considered by the valuers.

As at 30 June 2016 commercial properties were either specifically appraised by independent valuers or indexed using either Rawlinson's building price index, an index provided by State Valuation Services for Brisbane CBD or Near City Capital Value Index provided by the Investment Property Databank (IPD). These properties are specifically appraised on a rolling basis every two to four years, using a combination of market, income and cost-based approaches. Specific appraisals are procured annually in volatile property market conditions.

(iii) Government employee houses

(iv) Commercial properties

Leased assets are acquired under 40 year finance leases with a number of Aboriginal and Torres Strait Islander councils to facilitate the construction and/or refurbishment of properties on communal land in accordance with the National Partnership Agreement on Remote Indigenous Housing, entered into between the Australian Government and the Queensland Government.

The properties are initially recognised at the present value of the minimum lease payments (lease payments are approximately $2,800 per year, per dwelling), which is lower than the fair value of the leased property. The department then immediately revalues these assets to fair value using management valuations based on council valuations.

Leased assets subsequently receive a specific appraisal in the year following execution of the lease. All assets are specifically appraised at least once every five years on a rolling basis. Indices provided by independent valuers, are applied for the intervening years. As at 30 June 2016, Herron Todd White performed specific appraisals or supplied indices. As there is no active market for buildings on DOGIT land the depreciated replacement cost approach is used. Depreciated replacement cost reflects the current cost that would be required to replace the service capacity of the asset as it currently exists. The cost is estimated to be the amount that would be incurred by a market participant to acquire or construct a substitute asset, adjusted for comparable utility and obsolescence.





(vi) Heritage and cultural assets

(d) Asset revaluation surplus by classHeritage

Leased and culturalLand Buildings assets Infrastructure assets Total$'000 $'000 $'000 $'000 $'000 $'000

Balance at 1 July 2014 868,208 - 309,127 62,861 6,520 1,246,716Net revaluation

increments/(decrements) 295,270 - (47,154) 40,891 1,699 290,706Balance at 30 June 2015 1,163,478 - 261,973 103,752 8,219 1,537,422

Balance at 1 July 2015 1,163,478 - 261,973 103,752 8,219 1,537,422Net revaluation

increments/(decrements) 368,835 - 11,008 8,152 (3,065) 384,930Balance at 30 June 2016 1,532,313 - 272,981 111,904 5,154 1,922,352

• a detailed structural survey would not reveal defects, and• improvements are sited within title boundaries and without encroachment.

The infrastructure assets comprise Roma Street Parkland improvements, the Goodwill Bridge and the Kurilpa Bridge. Fair value for the infrastructure assets is assessed using depreciated replacement cost due to the lack of market sales evidence for such assets. All assets were valued at highest and best use.

• the property complies with all statutory requirements with respect to health, building, town planning and fire safety regulations

Infrastructure assets are specifically appraised at least every four years, using independent experts. They were subject to specific appraisal at 30 June 2015 by Taylor Byrne taking into account useful life, age, condition and functionality. Quantity surveyors assessed the replacement cost for Taylor Byrne. The valuer's assumptions for the infrastructure assets include:

The parkland was indexed using the Rawlinson's Brisbane building price index of 4.5%.

These properties were last specifically appraised as at 30 June 2014 by the firm DTZ.

• Rawlinson's building price index (4.5%) for properties valued using depreciated replacement cost. • Brisbane CBD Capital Value Index (3.3%) provided by Investment Property Databank or • a location specific market index (various) provided by the State Valuation Service All heritage properties, except for one which was specifically appraised, were indexed at 30 June 2016 using either:

(v) Infrastructure

At 30 June 2016 a bridge index of 3.5% was provided by valuation firm Taylor Byrne, based on advice from internal quantity surveyors analysing the construction costs of the various components of the bridges and then applying the cost movements against the relevant proportions of the original project estimate.

Fair value for the department’s heritage and cultural buildings is assessed based on relevant market evidence for similar assets. In localities where there is insufficient sales activity to derive market-based valuations, the buildings are valued using the depreciated replacement cost and reproduction cost methods. This is also the case for unique or highly specialised buildings for which there is no comparable property market evidence. Properties are specifically appraised every four years unless there is an indication that more frequent revaluation is required.




(e) Fair value measurement

Categorisation of fair values recognised as at 30 June 2016

2016 2015 2016 2015 2016 2015Buildings- social housing 2,791,947 2,908,662 2,851,117 2,869,432 5,643,064 5,778,094- government employee housing 440,714 472,877 29,485 29,070 470,199 501,947- commercial 521,224 545,498 293,483 291,127 814,707 836,625Total buildings 3,753,885 3,927,037 3,174,085 3,189,629 6,927,970 7,116,666Land- social housing 8,646,071 8,439,350 - - 8,646,071 8,439,350- government employee housing 177,487 234,766 - - 177,487 234,766- commercial 875,012 706,291 - - 875,012 706,291Total land 9,698,570 9,380,407 - - 9,698,570 9,380,407Infrastructure - - 219,666 215,083 219,666 215,083Heritage and cultural assets 19,064 16,793 21,026 19,399 40,090 36,192Total 13,471,519 13,324,237 3,414,777 3,424,111 16,886,296 16,748,348

Level 3 fair value reconciliation

Buildings Infrastructure Total$’000 $’000 $’000 $’000

Carrying amount at 1 July 2014 3,123,034 187,559 15,956 3,326,549Transfers from other Queensland Government entities 22,609 - - 22,609Acquisitions 31,966 - 58 32,024Transfers between classes 30,233 (10,045) 1,893 22,081Disposals (15) - - (15)Assets reclassified as held for sale (120) - - (120)Net revaluation increments/(decrements) recognised

in asset revaluation surplus - 40,891 1,699 42,590Net revaluation increments/(decrements) recognised

in operating result 45,584 - - 45,584Depreciation (63,662) (3,322) (207) (67,191)Carrying amount at 30 June 2015 3,189,629 215,083 19,399 3,424,111

Carrying amount at 1 July 2015 3,189,629 215,083 19,399 3,424,111Transfers from level 3 into level 2 (2,698) - - (2,698)Transfers into level 3 from level 2 2,112 - - 2,112Transfers from other Queensland Government entities 45 - - 45Acquisitions 24,686 - 49 24,735Transfers between classes 48,727 - 3,670 52,397Disposals (758) - - (758)Assets reclassified as held for sale (100) - - (100)Net revaluation increments/(decrements) recognised

in asset revaluation surplus - 8,152 (1,635) 6,517Net revaluation increments/(decrements) recognised

in operating result (17,830) - - (17,830)Depreciation (69,728) (3,569) (457) (73,754)Carrying amount at 30 June 2016 3,174,085 219,666 21,026 3,414,777

The department's policy is to recognise transfers between hierarchy levels at 30 June on the basis of information provided by independent valuers.

Level 2$’000

Level 3$’000

Total$’000

Heritage and cultural assets




(e) Fair value measurement (continued)

Level 3 significant valuation inputs

Asset classBuildings

Infrastructure

(f) Impairment

(g) Depreciation

Land is not depreciated as it has an unlimited useful life.

Buildings 1% to 7%Leased assets 2.5%Infrastructure From 1% to 13% in accordance with useful life of componentsHeritage and cultural assets 1% to 7%Plant and equipment 3% to 75%

Remaining useful lives are reviewed annually. Where remaining useful lives require modification, the depreciation expense changes from the date of assessment until the end of the useful life (for both current and future years). The estimation of useful lives requires management judgement in assessing the condition of the building.

Building replacement/ reproduction cost rates.Remaining useful lives.Capitalisation rates.Discount rates.

Type of significant unobservable inputsDiscounts for non-strata title units. This represents the cost of obtaining strata title to sell. Infrastructure replacement costs are on a per component basis.Remaining useful lives.

Property, plant and equipment assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, the department determines the asset’s recoverable amount. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss.

Buildings, infrastructure, heritage and cultural assets and plant and equipment are depreciated on a straight-line basis so as to allocate the net cost or revalued amount of each asset progressively over its estimated useful life to the department.

Any subsequent expenditure that increases the originally assessed capacity or service potential of an asset is capitalised, and the new depreciable amount is depreciated over the remaining useful life of the asset to the department.

Buildings subject to finance leases (leased assets) are depreciated on a straight-line basis over the term of the lease, which is shorter than the useful life of the building.

Assets under construction (work-in-progress) are not depreciated until they reach their service delivery capacity. Service delivery capacity relates to when construction is complete and the asset is first put to use or is installed ready for use in accordance with its intended application. These assets are then reclassified to the relevant classes of property, plant and equipment.

Key estimate: For each class of asset the following depreciation rates are used:

Key judgement: A key strategic asset management principle of the department is the efficient and effective maintenance and upgrade of social housing properties to optimise the useful lives of assets. Property condition is assessed at least once every three years by internal inspection. This results in a condition rating being assigned, and informs future maintenance and upgrade activities. A property that is ready for demolition has a condition rating of one and a property that is like new has a condition rating of ten. Management has assessed that where 95% of social housing buildings have a condition rating greater than eight, this supports the annual revision of the remaining useful life for social housing buildings to 50 years.




(h) Queen's Wharf Precinct

(i) Long-term Community Housing Program

The department’s Long-term Community Housing Program aims to deliver long-term rental housing that is secure, appropriate and affordable, for persons whose needs are not adequately met by other housing options. Under this program the department may provide grants of property or monetary assistance to community housing providers. Grant funding is provided for the construction, purchase or upgrade of dwellings and community housing providers may also contribute land and funding for the dwellings. The terms and conditions of the grant funding are contained in Agreements entered into between the State and the provider. Legal title to dwellings funded under this program may be held by the provider or the department. As at 30 June 2016, the department had provided funding in relation to 3,432 properties under this program where title is held by the provider. Due to the fact that the department does not have sole control of these assets, and they are not material, these assets are not disclosed as department assets.

The Department of Housing and Public Works is the current owner of land and buildings within the IRD Precinct. As at 30 June 2016 the land in the precinct has been valued at market value, with highest and best use assessed by management as consistent with current and surrounding land use. Buildings were last independently revalued using an income approach as at 30 June 2014, with the fair value and remaining useful life assessed by management at 30 June 2016 to reflect the expected utilisation of the buildings. As at 30 June 2016, the carrying value of the land and buildings within the IRD Precinct was $274.273 million.

On 16 November 2015 the Queensland Government entered into contractual arrangements with the Destination Brisbane Consortium (‘the Consortium') to redevelop the Queen’s Wharf Precinct in the centre of Brisbane into an Integrated Resort Development (‘the IRD Project’). The redevelopment area is located between the Brisbane River and George Street, and between Alice and Queen Streets (‘the IRD Precinct’).

These contractual obligations are subject to a number of conditions which need to be satisfied before the Consortium is granted access to the IRD Precinct. The Queensland Government expects access to the IRD Precinct will be granted by January 2017, and the IRD Project to be completed from 2022.



2016 2015$'000 $'000

4.2 Loans and receivables

Current

Trade debtors 94,622 129,883Less: allowance for impairment loss (830) (1,584)

93,792 128,299

Rental bond loans 29,846 27,624Less: allowance for impairment loss (12,417) (10,651)

17,429 16,973

Social housing debtors - rent and maintenance 39,980 34,596Less: allowance for impairment loss (28,930) (24,581)

11,050 10,015

Annual leave reimbursements 4,139 4,896Long service leave reimbursements 1,209 1,562Housing loans 4,835 4,596Appropriation revenue receivable 3,540 -Finance lease receivable 1,322 1,323Deferred operating lease rent 5,945 5,018

Other debtors 122 3,509Less: allowance for impairment loss (46) (100)

76 3,409

Total current loans and receivables 143,337 176,091

Non-current

Rental bond loans 7,457 6,902Less: allowance for impairment loss (3,104) (2,663)

4,353 4,239

Deferred operating lease rent 62,748 51,645Housing loans 24,871 29,887Finance lease receivable 38,828 40,262Logan Renewal Initiative advance 3,500 3,500Total non-current loans and receivables 134,300 129,533

Impairment

Loans and receivables (excluding deferred operating lease rent which is recognised on a straight-line basis) are measured at amortised cost which approximates their fair value at reporting date. Loans and receivables are recognised at the amount due at the time of sale or service delivery with the exception of housing loans, which reflect the monies lent, plus interest and other costs, less repayments from borrowers. Settlement of trade and other debtors is generally required within 30 days from invoice date. Bond loan terms range from 18 to 30 months. Original housing loan terms range from 15 to 25 years on average.

The collectability of loans and receivables is periodically assessed with an allowance being made for impairment where required. Portfolios of homogenous loands and receivables are assessed for impairment on a collective basis. The allowance for impairment reflects the occurrence of loss events. The most readily identifiable loss event is where a debtor is overdue in payment of a debt to the department. Loans and receivables that are determined to be uncollectable (after an appropriate range of debt recovery actions) are deducted from the relevant allowance for impairment.

If no loss events have arisen in respect of a particular group of debtors, no allowance for impairment is made in respect of that group. If the department determines that an amount owing by such a debtor does become uncollectable, the amount is recognised as a bad debt expense and written-off directly against loans and receivables.

All known bad debts were written-off as at 30 June.



4.2 Loans and receivables (continued)

Movements in allowance for impairment lossSocial

Trade Rental bond housing OtherCurrent debtors loans debtors debtors Total

$'000 $'000 $'000 $'000 $'000Balance at 1 July 2014 1,876 9,376 16,188 132 27,572Increase in allowance recognised in operating result (251) 1,750 9,349 (3) 10,845Amounts written-off during the year (41) (475) (956) (29) (1,501)Balance at 30 June 2015 1,584 10,651 24,581 100 36,916

Balance at 1 July 2015 1,584 10,651 24,581 100 36,916Increase in allowance recognised in operating result 12 1,952 4,537 (31) 6,470Amounts written-off during the year (766) (186) (188) (23) (1,163)Balance at 30 June 2016 830 12,417 28,930 46 42,223

Rental bondNon-current loans

$'000Balance at 1 July 2014 2,344Increase in allowance recognised in operating result 438Amounts written-off during the year (119)Balance at 30 June 2015 2,663

Balance at 1 July 2015 2,663Increase in allowance recognised in operating result 488Amounts written-off during the year (47)Balance at 30 June 2016 3,104

4.3 Inventories 2016 2015$'000 $'000

Inventory held for resaleConstruction work in progress* 38,345 48,028Motor vehicles 4,925 5,522Land - 2,678Finished goods 239 217

43,509 56,445

Raw materials 37 44Total 43,546 56,489

*Construction work in progress comprises:Contract costs incurred to date 87,952 95,575Profit recognised to date 20,525 18,553Less: Allowance for foreseeable losses (230) (102)Less: Progress billings (69,902) (65,998)

38,345 48,028

Inventories are valued at the lower of cost and net realisable value.

Key estimate: Construction work in progress related to projects managed by Building and Asset Services is carried at cost plus profit recognised to date, based on an estimation of the value of work completed, less progress billings and less any allowance for foreseeable losses. An allowance for the total loss on a contract is made as soon as the loss is identified.

Costs include both variable and fixed costs directly related to specific contracts, and those which can be attributed to contract activity in general and allocated to specific contracts on a reasonable basis. Also included are costs expected to be incurred under penalty clauses and rectification provisions.



2016 2015$'000 $'000

4.4 Financial assets at fair value through profit or loss

Current 4,000 4,000Non-current 186,927 188,389

190,927 192,389

4.5 Non-current assets classified as held for sale

Land 49,972 38,365Buildings 12,279 7,773Total 62,251 46,138

The assets are measured at the lower of their carrying amount and their fair value less costs to sell. Any write-down to fair value less costs to sell is a non-recurring valuation. The write-down is recognised as an impairment loss expense. These assets are no longer depreciated upon being classified as held for sale.

The department’s interest in Rental Purchase Plan and Pathways Shared Equity properties is classified as non-current financial assets at fair value through profit or loss, except for those properties that are expected to be repossessed by the department or sold or refinanced by clients within the next 12 months. These properties are disclosed as current assets.

These assets consist of social housing, government employee housing and commercial properties to be sold in line with ongoing portfolio management strategies to ensure the alignment of cost-effective and suitable properties with client needs in specific locations. These sales are generally achieved by listing the properties on the open market, but may also be negotiated directly with prospective purchasers (e.g. another Queensland Government agency or community organisation) or existing tenants.

The technique to determine fair value less costs to sell for land and buildings is consistent with the technique used for the department’s social housing, government employee housing and commercial properties (i.e. market and income approaches) and so the valuation represents a level two measurement. Refer to Note 4.1 for further details about the valuation of land and buildings.

Under a Rental Purchase Plan agreement, clients obtain a loan from the department for the purchase of a part share in a home and pay monthly instalments which include both a loan repayment (including interest) and a rent component. Under the Pathways Shared Equity Program, clients obtain a loan from the department for the purchase of a share in a property they are currently renting from the department. Clients pay monthly loan repayments to the department.

Loans provided under the loan agreements for these products are disclosed as housing loans receivable.

Key judgement : The department has made the judgement that this measurement basis is the most reliable estimate of fair value given the inherent uncertainties associated with estimating future cash flows for these assets under the discounted cash flow valuation approach. Based on long-term averages of property growth and rental income, it is expected that the fair value of the department’s interest in the properties will be recovered through future sales and, in the case of Rental Purchase Plan properties only, rental income, taking into account the time value of money. The properties are revalued each year by independent valuers based on market value through direct comparison.

Non-current assets held for sale consist of those assets that management has determined are available for immediate sale in their present condition, for which their sale is highly probable within the next twelve months.

The department has two housing products which are classified as financial assets at fair value through profit or loss, being Rental Purchase Plan and Pathways Shared Equity.

Key judgement : The department has made a judgement that it does not have effective control of properties subject to these agreements, but rather that its interest in the properties meets the definition of a financial instrument.

The department’s interest in the properties is designated upon initial recognition as financial assets at fair value through profit or loss. Fair value is based on the net market value of the department's proportion of the underlying properties.



2016 2015$'000 $'000

5 LIABILITIES

5.1 Payables

CurrentTrade creditors 148,011 168,921Grants and subsidies payable 35,516 32,158Deferred appropriation payable to Consolidated Fund - 16,431Equity adjustment payable 6,493 23,292Dividends 8,335 8,258Deferred operating lease rent 6,264 5,662Other 1,520 1,205

GST payable 20,715 22,702GST input tax credits receivable (15,633) (19,744)Net GST payable 5,082 2,958

Total 211,221 258,885

Non-currentDeferred operating lease rent 65,166 54,890Total 65,166 54,890

5.2 Interest-bearing liabilities

CurrentAustralian Government borrowings 14,517 14,231Queensland Treasury Corporation borrowings 2,355 12,004Finance lease liability 1,231 1,406Total current interest-bearing liabilities 18,103 27,641

Non-currentAustralian Government borrowings 308,465 322,982Queensland Treasury Corporation borrowings 157,558 139,396Finance lease liability 110,325 136,169Total non-current interest-bearing liabilities 576,348 598,547

Interest rates on Queensland Treasury Corporation borrowings range from 2.1% to 6.3% (2015 2.2% to 6.3%) and on Australian Government borrowings from 3.5% to 6% (2015 3.5% to 6%).

The department recognises as payable those dividends declared on, or before, the reporting date, in relation to the profit of the commercialised business units. The entire amount remaining undistributed at the reporting date is recognised.

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.

There are no material differences between the carrying amount and fair value of borrowings except for Australian Government borrowings which have a fair value of $481.753 million as at 30 June 2016 compared to a carrying amount of $322.982 million (2015: fair value of $373.983 million and carrying amount of $337.213 million). The fair value of these borrowings is notified by the Queensland Treasury Corporation and is calculated using discounted cash flow analysis and is classified as a level three fair value in the fair value hierarchy.

Trade creditors are recognised upon receipt of the goods or services ordered, and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled on 30 day terms.

Borrowings are initially recognised at fair value, plus any transaction costs directly attributable to the borrowings, and then subsequently held at amortised cost using the effective interest method.



2016 2015$'000 $'000

5.2 Interest-bearing liabilities (continued)

Finance lease liabilities

Not later than one year 6,150 7,534Later than one year and not later than five years 24,598 30,136Later than five years 193,447 244,655

224,195 282,325Less future finance charges (112,639) (144,750)Total 111,556 137,575

The present value of finance lease liabilities is as follows:


Total 111,556 137,575

5.3 Unearned revenue

CurrentConstruction contracts 45,782 68,064Rent 20,286 16,002Finance lease revenue 1,322 1,323Other 18,481 8,437Total 85,871 93,826

Non-currentFinance lease revenue 31,742 33,065Total 31,742 33,065

Refer to Note 4.1(a) for further information on the recognition of lease liabilities.

At 30 June 2016, overdraft facilities with the Commonwealth Bank and Queensland Treasury Corporation were in place under the Queensland Treasury cash management incentives regime. These facilities remained undrawn as at that date and are available for future use. Limits range from $25 million to $50 million (2015 $25 million to $50 million).

In respect of these leases, contingent rent of $4.618 million (2015 $0.539 million) was recognised as an expense. This consisted of annual CPI adjustments to lease payments and property rates payable under the lease agreements.

Future minimum lease payments are payable as follows:

The department has entered into a number of land and building finance leases with councils in remote Aboriginal and Torres Strait Islander communities to facilitate new social housing and housing upgrades. Each lease has a life of 40 years with an option exercisable by the department to renew for another 40 years included in the lease contract. The leases have no purchase options.



2016 2015$'000 $'000

6 EQUITY

6.1 Contributed equity

6.2 Appropriations recognised in equity

Reconciliation of payments from consolidated fund to equity adjustment recognised in contributed equity

Budgeted equity adjustment appropriation 180,881 67,017Lapsed equity adjustment (138,212) (101,878)Equity adjustment receipts (payments) 42,669 (34,861)

Less: Opening balance of equity adjustment receivable - (4,438)Plus: Opening balance of equity adjustment payable 23,292 -Less: Closing balance of equity adjustment payable (6,493) (23,292)Equity adjustment recognised in contributed equity 59,468 (62,591)

• non-appropriated equity adjustments • non-reciprocal transfers of assets and liabilities between wholly-owned Queensland State Public Sector entities as a result of machinery-of-government changes.

Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities specifies the principles for recognising contributed equity by the department. The following items are recognised as contributed equity during the reporting and comparative years and are disclosed in the Statement of Changes in Equity:• appropriations for equity adjustments (refer to Note 6.2)



7 BUDGET TO ACTUAL COMPARISON

STATEMENT OF COMPREHENSIVE INCOME Adjustedbudget Actual

Variance 2016 2016 Variance Variancenotes $'000 $'000 $'000 % of budget

INCOME FROM CONTINUING OPERATIONSUser charges and fees 1,507,428 1,538,807 31,379 2Appropriation revenue 1 679,857 620,184 (59,673) (9)Grants and other contributions 5,716 7,866 2,150 38Interest 4,168 2,722 (1,446) (35)Other revenue 23,855 64,739 40,884 171

Total revenue 2,221,024 2,234,318 13,294 1

Gains on disposal/remeasurement of assets 3,398 9,383 5,985 176Total income from continuing operations 2,224,422 2,243,701 19,279 1

EXPENSES FROM CONTINUING OPERATIONSSupplies and services 1,544,589 1,535,379 (9,210) (1)Employee expenses 302,690 297,800 (4,890) (2)Depreciation and amortisation 236,626 253,097 16,471 7Grants and subsidies 2 153,367 104,078 (49,289) (32)Finance/borrowing costs 28,399 26,261 (2,138) (8)Revaluation decrement 3 - 131,342 131,342 -Impairment losses 9,551 13,409 3,858 40Other expenses 16,430 23,022 6,592 40

Total expenses from continuing operations 2,291,652 2,384,388 92,736 4

Operating result from continuing operations before income tax (67,230) (140,687) (73,457) 109

Income tax benefit/(expense) (4,105) (7,150) (3,045) 74

Operating result from continuing operations after income tax (71,335) (147,837) (76,502) 107

OTHER COMPREHENSIVE INCOMEItems that will not be reclassified subsequently to operating result

Increase/(decrease) in asset revaluation surplus 4 - 384,930 384,930 -Total other comprehensive income - 384,930 384,930 -

Total comprehensive income (71,335) 237,093 308,428 (432)

On 8 December 2015, the Office of the Queensland Government Architect was transferred to the Department of Infrastructure, Local Government and Planning. As required by Queensland Treasury policy under such circumstances, the budget figures used in this comparison represent the Adjusted Budget figures for the financial year, as published in the latest Service Delivery Statement tabled in Parliament. The adjustments were not material.



7 BUDGET TO ACTUAL COMPARISON (CONTINUED)

BALANCE SHEET Adjustedbudget Actual


CURRENT ASSETSCash and cash equivalents 5 293,559 406,901 113,342 39Loans and receivables 6 186,685 143,337 (43,348) (23)Inventories 49,473 43,546 (5,927) (12)Prepayments 46,245 37,670 (8,575) (19)Financial assets at fair value through profit or loss 4,000 4,000 - -Current tax assets - 145 145 -

579,962 635,599 55,637 10Non-current assets classified as held for sale 24,676 62,251 37,575 152

Total current assets 604,638 697,850 93,212 15

NON-CURRENT ASSETSProperty, plant and equipment 18,162,762 18,207,640 44,878 -Financial assets at fair value through profit or loss 184,833 186,927 2,094 1Loans and receivables 7 83,655 134,300 50,645 61Intangible assets 12,105 13,558 1,453 12Deferred tax assets 3,260 2,204 (1,056) (32)

Total non-current assets 18,446,615 18,544,629 98,014 1

TOTAL ASSETS 19,051,253 19,242,479 191,226 1

CURRENT LIABILITIESPayables 8 178,797 211,221 32,424 18Interest-bearing liabilities 21,280 18,103 (3,177) (15)Unearned revenue 84,114 85,871 1,757 2Accrued employee benefits 8,945 12,407 3,462 39Provisions 1,075 36 (1,039) (97)Current tax liabilities 1,509 149 (1,360) (90)Other current liabilities 8,784 27,246 18,462 210

Total current liabilities 304,504 355,033 50,529 17

NON-CURRENT LIABILITIESInterest-bearing liabilities 570,971 576,348 5,377 1Payables 9 - 65,166 65,166 -Unearned revenue 31,741 31,742 1 -Deferred tax liabilities 8,996 13,540 4,544 51Other non-current liabilities 5,538 5,540 2 -

Total non-current liabilities 617,246 692,336 75,090 12

TOTAL LIABILITIES 921,750 1,047,369 125,619 14

NET ASSETS / TOTAL EQUITY 18,129,503 18,195,110 65,607 -




STATEMENT OF CASH FLOWS Adjustedbudget Actual


CASH FLOWS FROM OPERATING ACTIVITIESInflows:

User charges and fees 1,501,195 1,561,722 60,527 4Appropriation receipts 10 679,914 600,213 (79,701) (12)GST input tax credits received from Australian Taxation Office 11 279,477 151,253 (128,224) (46)GST collected from customers 120,199 121,597 1,398 1Grants and other contributions 5,716 7,915 2,199 38Interest receipts 4,180 2,775 (1,405) (34)Other 63,308 60,965 (2,343) (4)

Outflows:Supplies and services (1,584,513) (1,558,304) 26,209 (2)Employee expenses (303,469) (294,569) 8,900 (3)GST remitted to Australian Taxation Office 11 (262,524) (139,984) 122,540 (47)GST paid to suppliers (176,460) (163,429) 13,031 (7)Grants and subsidies 2 (153,367) (97,878) 55,489 (36)Finance/borrowing costs (28,345) (26,496) 1,849 (7)Taxation equivalents (5,849) (5,010) 839 (14)Other (19,036) (15,896) 3,140 (16)

Net cash provided by (used in) operating activities 120,426 204,874 84,448 70

CASH FLOWS FROM INVESTING ACTIVITIESInflows:

Sales of property, plant and equipment 12 123,994 110,671 (13,323) (11)Loans and advances redeemed 31,822 28,207 (3,615) (11)Redemption of other financial assets 4,500 7,272 2,772 62

Outflows:Payments for property, plant and equipment 13 (369,454) (328,918) 40,536 (11)Payments for intangible assets - (312) (312) -Loans and advances made 14 (37,181) (26,562) 10,619 (29)

Net cash provided by (used in) investing activities (246,319) (209,642) 36,677 (15)

CASH FLOWS FROM FINANCING ACTIVITIES Inflows:

Equity injections 15 270,195 143,457 (126,738) (47) Borrowings 19,600 20,000 400 2Outflows:

Equity withdrawals (83,353) (88,930) (5,577) 7Borrowing redemptions 16 (20,684) (25,484) (4,800) 23Dividends paid (7,399) (8,258) (859) 12Finance lease payments (5,170) (1,223) 3,947 (76)

Net cash provided by (used in) financing activities 173,189 39,562 (133,627) (77)Net increase (decrease) in cash and cash equivalents 47,296 34,794 (12,502) (26)Cash and cash equivalents at beginning of financial year 246,263 372,107 125,844 51Cash and cash equivalents at end of financial year 293,559 406,901 113,342 39




Explanations of major variances

• The line item within the Statement of Comprehensive Income or the Balance Sheet is material (greater than 10%) compared to total income, total expenses, total assets (less property, plant and equipment) or total liabilities, as applicable. The line item within the Statement of Cash Flows is material (greater than 10%) compared to total inflows or total outflows (as applicable) for the relevant cash flow category (i.e. operating/investing/financing).

• The variance between the actual amount and the adjusted budget is greater than 10% except for payments for property, plant and equipment (Statement of Cash Flows) and employee expenses and supplies and services (Statement of Comprehensive Income) where 5% is used.

Statement of Comprehensive Income

1 Appropriation revenueThe decrease of $59.673 million mainly relates to the net deferrals for Housing Services ($53.113 million) of appropriation to future years as agreed with Queensland Treasury. The net deferrals are mainly due to changes in the timing of various Aboriginal and Torres Strait Island housing programs and projects under the National Partnership Agreement on Remote Indigenous Housing ($9.752 million), Deed of Grant in Trust ($10.471 million), and the rural and remote program ($9.160 million), as a result of the complexity of the delivery of work in the remote Aboriginal and Torres Strait Islander communities. Deferrals for homelessness programs ($7.151 million) are mainly due to the phasing of the commencement of a range of initiatives and the phasing of funding for two supported accommodation facilities plus deferrals under the Long-term Housing capital grant program ($4.595 million) due to extended construction milestones for the delivery of a project under this program.

2 Grants and subsidiesThe decrease of $49.289 million mainly relates to Housing Services grants ($50.737 million) net deferrals from 2015-16 to 2016-17 and outer years for various housing programs due to:• changes in timing as a result of the complexity of the delivery of work in the remote Aboriginal and Torres Strait Islander communities ($27.367 million) • delays in achieving agreements with Indigenous Community Housing Organisations for capital project elements, availability of new stock in small communities and the impact of purchases and sales on small housing markets ($11.152 million)• extended construction milestones for the delivery of a project under the Long-term Housing capital grant program ($4.595 million).

3 Revaluation decrementThe department does not budget for movements in the fair value of property, plant and equipment as this is reflective of market movements which cannot be reliably estimated, particularly given the size and diversity of the department's property portfolio.

The decrease of $131.342 million represents decreases in the value of social housing residential buildings ($132.416 million) and residential buildings for the provision of government employee housing ($24.330 million) partially offset by an increase in the value of non-residential buildings ($25.404 million).

The decrease in social housing building values primarily reflects a decline in values in Central Queensland, Mackay and North West Queensland as properties in these regions continue to experience a downward trend primarily due to the ongoing impacts of the mining industry. For the remainder of the state, properties have experienced overall growth – this is largely reflected in land values. The decline in building values is primarily a result of the age and amenity within the department’s detached housing portfolio throughout these areas, comparative to product in the market.

The decrease in government employee housing building values primarily reflects the decline in the value of buildings in areas with proximity to and involvement in the mining industry. The increase in non-residential buildings is mainly due to positive growth across the state in regions where buildings are owned.

Major variances have been assessed as meeting both of the following criteria:

The department may include as major variances, line items not meeting the above criteria, but which are considered material due to their nature.




Explanations of major variances (continued)

Statement of Comprehensive Income (continued)

4 Increase/(decrease) in asset revaluation surplusThe department does not budget for movements in the fair value of property, plant and equipment as this is reflective of market movements which cannot be reliably estimated, particularly given the size and diversity of the department's property portfolio.

The increase of $384.930 million principally represents increases in value of social housing residential land ($248.382 million) and non-residential land ($169.600 million) partially offset by a decrease in the value of residential land for the provision of government employee housing ($49.100 million).

The increase in social housing land values primarily reflects increased values in the South East Queensland residential property market and the increase in non-residential land values primarily reflects increased values within the Brisbane Central Business District. The decrease in government employee housing residential land primarily reflects the decline in values of land in areas with proximity to and involvement in the mining industry.

Balance Sheet

5 Cash and cash equivalentsThe increase of $113.342 million is mainly attributable to higher actual opening balances ($125.844 million), compared to what was estimated in the budget, due to the difference between estimated and actual cash flows for the previous financial year. The remainder of the variance is substantially due to the factors outlined in the explanations of major variances for the Statement of Cash Flows.

6 Loans and receivables - currentThe decrease in current loans and receivables ($43.348 million) is mainly attributable to:• lower Building and Asset Services receivables ($40.818 million) due mainly to an increased focus on improving collections from customers during 2015-16 – the budget was based on historical trends for debtor collections. There was also a change in phasing of actual sales which was more evenly distributed throughout the year compared to budget.• increased receivables due to the ongoing transition from an owned to a leased commercial office portfolio ($5.945 million) with annual rent revenue now being reported on a straight line basis over the term of the lease. The difference between actual rent charged and annual rent revenue results in deferred operating lease rent receivable. The impact of this transition had not been finalised at the time of preparing the original budget.• lower Housing Services rental receivables ($8.070 million) as the allowance rates for impairment on rental and maintenance debtors were reviewed and increased after the original budget for 2015-16 was finalised.

7 Loans and receivables - non-currentThe increase of $50.645 million is mainly due to the transition from an owned to a leased commercial office portfolio ($62.748 million) as outlined in Variance Note 6 above. This is partially offset by lower Housing loans ($12.096 million) due to the combined impact of lower actual opening balances and lower new lending activity than budgeted in 2015-16, due to ongoing low client demand.

8 Payables - currentThe increase of $32.424 million is mainly due to:• an increase in Building and Asset Services trade creditors ($6.051 million) mainly due to a higher value of supplier invoices received in June compared to budget• increased payables due to the ongoing transition from an owned to a leased commercial office portfolio ($6.264 million) with annual lease expenditure now being reported on a straight-line basis over the term of the lease. The difference between the actual rent paid and annual rent expenditure results in deferred operating lease rent payable. The impact of this transition had not been finalised at the time of preparing the original budget.• an increase in approved adjustments and deferrals for various equity appropriation amounts ($6.493 million)• an increase in payables due to timing of delivery and payment of motor vehicles prior to year end ($2.319 million)• an increase in the provision for dividend payable for the commercialised business units ($3.551 million) due to higher then estimated profits.




Explanations of major variances (continued)

Balance Sheet (continued)

9 Payables - non-currentThe increase of $65.166 million is due to the transition from an owned to a leased commercial office portfolio, as outlined in Variance Note 8 above.

Statement of Cash Flows

10 Appropriation receipts The decrease of $79.701 million mainly relates to Appropriation revenue net deferrals ($59.730 million) as outlined in Variance Note 1 above and the deferral of appropriation receivable for the National Rental Affordability Scheme ($27.738M), as the grant entitlements are accrued as appropriation revenue in 2015-16 but the funding will not actually be received until early 2016-17.

11 GST input tax credits received from/remitted to the Australian Taxation OfficeThe variance in GST input tax credits received ($128.224 million) is offset against the variance in GST remitted ($122.540 million) resulting in a net decrease of $5.684 million. The net decrease in GST cash flows mainly reflects a lower entitlement to claim GST input credits on transactions relating to Housing Services expenditure on social housing property and tenancy management.

12 Sales of property, plant and equipmentThe decrease of $13.323 million is mainly due to the decision to defer the sale of non-residential buildings ($29.604 million) partially offset by a net increase in social housing land and building sales ($10.734 million) resulting from strong market conditions in Cairns and South East Queensland.

13 Payments for property, plant and equipment The decrease of $40.536 million is mainly due to the deferral of capital works for social housing and Aboriginal and Torres Strait Islander Housing projects ($33.911 million) due to complexities in delivery, the transfer of funding for various building projects from capital to operating expenditure ($7.200 million) and extending the period for delivery of capital works for the Cairns Convention Centre ($2.780 million) to meet operational requirements. This was partially offset by funding from the Department of Communities, Child Safety and Disability Services ($5.916 million) to deliver two 72 hour crisis shelters in Brisbane and Townsville.

14 Loans and advances made The decrease of $10.619 million is due to lower than expected uptake of Housing Services loan products in 2015-16 as demand is client driven and difficult to predict.

15 Equity injections The decrease of $126.738 million is mainly due to the deferral from 2015-16 to 2016-17 and 2017-18 for the National Partnership Agreement on Remote Indigenous Housing ($131.469 million) to align with the capital program delivery. This is partly offset by the transfer of funding from Department of Communities, Child Safety and Disability Services ($5.897 million) for the delivery of two 72-hour crisis shelters in Brisbane and Townsville.

16 Borrowing redemptionsThe increase of $4.800 million in borrowing redemptions represents an increase in repayment of borrowings in line with available cash flows.



8 FINANCIAL RISK

8.1 Categorisation of financial instruments

The department has the following categories of financial assets and financial liabilities:

Category Note 2016 2015$'000 $'000

Financial assetsCash and cash equivalents 406,901 372,107Loans and receivables at amortised cost* 4.2 208,944 248,961Financial assets at fair value through profit or loss 4.4 190,927 192,389Total 806,772 813,457

Financial liabilitiesFinancial liabilities measured at amortised cost:

Payables* 5.1 204,957 253,223 Interest-bearing liabilities 5.2 Australian Government borrowings 322,982 337,213 Queensland Treasury Corporation borrowings 159,913 151,400 Finance lease liability 111,556 137,575

Total 799,408 879,411

* Excludes deferred operating lease rent.

8.2 Financial risk management

(a) Credit risk

Less than More than30 days 30-60 days 61-90 days 90 days Total

$'000 $'000 $'000 $'000 $'0002016 Financial assets past due but not impairedLoans and receivables 7,845 2,196 608 4,424 15,073

2015 Financial assets past due but not impairedLoans and receivables 15,984 4,550 1,837 5,008 27,379

Overdue

Financial assets past due, but not impaired, are disclosed below:

Financial risk is managed in accordance with Queensland Government and departmental policy. The department is exposed to a variety of financial risks as outlined below.

The department is exposed to credit risk in respect of its loans and receivables (Note 4.2). The maximum exposure to credit risk at balance date is the gross carrying amount of these assets inclusive of any allowances for impairment.

The department manages credit risk by monitoring all funds owed on a timely basis.

Most loans in the department's housing lending portfolio are secured by a registered first mortgage over the property concerned. Loans under the Rental Purchase Plan scheme are secured through title to the property remaining with the department until the purchase is fully completed under the contract. For loans under the Pathways Shared Equity Program, title to the property is held jointly by the department and the borrower until the purchase is fully completed under the contract.

The credit quality of housing loans that are neither past due nor impaired is considered to be high, due to the low level of arrears, the absence of defaults, and the fact that most of the loans were provided many years ago based on much lower residential property values.



8.2 Financial risk management (continued)

(b) Liquidity risk

Contractual Maturity Payable In 2016<1 year 1-5 years >5 years Total$'000 $'000 $'000 $'000

Financial liabilitiesPayables* 204,957 - - 204,957Interest-bearing liabilities Australian Government borrowings 28,866 111,879 342,118 482,863 Queensland Treasury Corporation borrowings 7,712 28,394 150,738 186,844

Finance lease liability 6,150 24,598 193,447 224,195Total 247,685 164,871 686,303 1,098,859

Contractual Maturity Payable In 2015<1 year 1-5 years >5 years Total$'000 $'000 $'000 $'000

Financial liabilitiesPayables* 253,223 - - 253,223Interest-bearing liabilities Australian Government borrowings 29,205 113,411 369,452 512,068 Queensland Treasury Corporation borrowings 17,256 29,183 135,167 181,606

Finance lease liability 7,534 30,136 244,655 282,325Total 307,218 172,730 749,274 1,229,222

* Excludes deferred operating lease rent.

(c) Market risk

Queensland Treasury Corporation borrowings in respect of the motor vehicle fleet are interest only with no fixed repayment date for the principal component. For the purposes of completing the maturity analysis, the principal component of these loans has been included in the more than five year time band with no interest payment assumed in this time band.

The department's market risk relates to its interest in Rental Purchase Plan and Pathways Shared Equity properties and financial assets and liabilities subject to interest rate risk.

For those financial assets and liabilities subject to interest rate risk, if interest rates change by +/- 1% from the year-end rates, with all other variables held constant, the department would have a surplus and equity increase of $1.231 million (2015 $1.009 million) and a decrease of $1.232 million (2015 $1.011 million). This is attributable to the department's exposure to variable interest rates on borrowings from Queensland Treasury Corporation, cash deposits of the commercialised business units and housing loans. The department manages interest rate risk as per its approach to liquidity risk.

The value of the department's interest in Rental Purchase Plan and Pathways Shared Equity properties is directly related to movements in the residential property market in the respective areas where they are located. Historically between 80% to 86% of the value of the department's interest in these properties is concentrated in the south-east corner of Queensland. Refer to Note 4.4 for information on these properties.

The department is exposed to liquidity risk in respect of its payables (Note 5.1), Australian Government and Queensland Treasury Corporation borrowings and finance lease liabilities (Note 5.2). The department reduces the exposure to liquidity risk by ensuring it has sufficient funds available to meet these obligations as they fall due.

The following table sets out the liquidity risk of financial liabilities held by the department. It represents the contractual maturity of financial liabilities, calculated based on undiscounted cash flows relating to the liabilities at reporting date. The undiscounted cash flows in these tables will differ from the amounts included in the Balance Sheet where they are based on principal loan amount outstanding or discounted cash flows.



9 OTHER INFORMATION

9.1 Key management personnel disclosures

(a) Details of key management personnel

Director-General

Incumbent Date of initial appointment

Date of resignation or cessation

Current 3 August 2015 -

Temporary Relieving 6 June 2015 2 August 2015

Former 1 November 2012 6 July 2015

Deputy Director-General, Building and Asset Services



Current 18 July 2011 -

Deputy Director-General, Housing Services



Current SES4 - Public Service Act 2008 14 March 2016 -

Temporary Relieving 15 February 2016 13 March 2016

Former s122 Contract (CEO5 equivalent) 20 January 2014 14 February 2016

Temporary Relieving 9 June 2015 2 August 2015

Assistant Director-General, Strategic Asset Management



Current 4 November 2013 -

Assistant Director-General, Building Industry and Policy



Current 1 July 2013 -

The Deputy Director-General, Building and Asset Services, is responsible for the delivery of high quality outcomes under the Queensland Government's capital works and building asset management programs.

Contract classification and appointment authority

SES4 - Public Service Act 2008

The Deputy Director-General, Housing Services, is responsible for the provision of strong, effective and strategic leadership and executive management for program design and delivery for housing and homelessness services in Queensland through remote Indigenous, private and social housing programs.


The following details for key management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of the department during 2015-16 and 2014-15. Further information on these positions can be found in the body of the Annual Report under the section relating to Executive Management.

The Director-General is responsible for the efficient, effective and economic administration of the agency.


CEO Band 4 - Governor-in-Council

CEO3 - Governor-in-Council

Senior Executive Services - Employment Conditions (Directive 14/16)



The Assistant Director-General, Strategic Asset Management, is responsible for high level strategic leadership across the public sector in the management and delivery of its property portfolio and capital investment program. The role undertakes a management role in the delivery of government employee housing, fleet management services, office accommodation and other state-owned assets.



The Assistant Director-General, Building Industry and Policy, is responsible for managing and coordinating all building-related policy areas for the Queensland Government, by ensuring close working relationships between individual policy groups resulting in efficient and effective policies for all building-related functions.





9.1 Key management personnel disclosures (continued)

(a) Details of key management personnel (continued)

Assistant Director-General, Procurement Transformation



Temporary Relieving SES 3/3 29 February 2016 -Former s122 Contract (CEO4 equivalent) 1 December 2014 26 February 2016Former s122 Contract (CEO4 equivalent) 29 October 2012 28 November 2014

Assistant Director-General, Corporate Services



Current 29 November 2007 -

Executive Director, National Regulatory System Office of the Registrar



Current 1 January 2013 -

Temporary Relieving 2 November 2015 15 January 2016

Executive Director, Aboriginal and Torres Strait Islander Strategy Unit



Current 18 January 2016 -

(b) Remuneration policies

Short-term employee expenses which include:• salaries, allowances and leave entitlements earned and expensed for the entire year, or for that part of the year during

which the employee was a key management person• performance payments recognised as an expense during the year• non-monetary benefits, consisting of provision of a vehicle together with fringe benefits tax applicable to the

benefit.

Long-term employee expenses include amounts expensed in respect of long service leave entitlements earned.

Post-employment expenses include amounts expensed in respect of employer superannuation obligations.

Remuneration expenses for key management personnel comprise the following components:


The Executive Director, National Regulatory System Office of the Registrar, is responsible for the provision of leadership and direction to a branch which regulates providers under four different legislative regimes to ensure the delivery of appropriate and affordable housing services and ensures the consumer protection of residents of these services.



Remuneration policy for the department's key management personnel is set by the Queensland Public Service Commission as provided for under the Public Service Act 2008 . Individual remuneration and other terms of employment (including motor vehicle entitlements) are specified in employment contracts. The former Director-General's contract under the previous Government also provided for an 'at risk' component payment.

s122 Contract (SES2 equivalent)


The Executive Director, Aboriginal and Torres Strait Islander Strategy, provides high-level leadership and specialist advice to support the delivery of better outcomes for Aboriginal and Torres Strait Islander peoples and communities. The role leads and coordinates a whole-of-department approach to the development and implementation of joined-up strategies, policies and programs that enhances the department’s engagement with the community and stakeholders and improves the responsiveness of our service delivery.



The Assistant Director-General, Procurement Transformation, is responsible for the delivery of high quality outcomes on the Queensland Government's procurement policy and strategic directions of procurement management in the sector.


The Assistant Director-General, Corporate Services, is responsible for strategic leadership in corporate governance, executive and corporate support services to enable the department to perform at a high business and ethical standard.




(b) Remuneration policies (continued)

1 July 2015 – 30 June 2016

Position Monetary expenses

Non-monetary benefits

$'000 $'000 $'000 $'000 $'000 $'000Director-General - Current 387 3 7 45 - 442

Director-General - Acting 30 - 1 3 - 34

Director-General - Former 9 - - 1 232 242


260 3 5 26 - 294

Deputy Director-General, Housing Services - Current

75 1 1 7 - 84

Deputy Director-General, Housing Services - Acting

26 - - 2 - 28

Deputy Director-General, Housing Services - Former

176 2 3 15 - 196

Deputy Director-General, Housing Services - Acting

23 - - 2 - 25


225 3 4 22 - 254


231 3 4 22 - 260

Assistant Director-General, Procurement Transformation - Acting

82 1 2 8 - 93

Assistant Director-General, Procurement Transformation - Former

189 2 3 19 - 213


242 3 4 25 - 274

Termination benefits

Total expenses

Termination benefits 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.

Separation payments for former Director-General: The mutually agreed terms for separation of the former Director-General considered all relevant clauses of the contract. The payment for the former Director-General's separation was determined and paid in July 2015 and is included in key management personnel remuneration expenses for 2015-16.

(c) Remuneration expenses

The following disclosures focus on the expenses incurred by the department that are attributable to key management positions during the respective reporting periods. Therefore, the amounts disclosed reflect expenses recognised in the Statement of Comprehensive Income.

Short-term employee expenses Long-term employee expenses

Post-employment

expenses




(c) Remuneration expenses (continued)

1 July 2015 – 30 June 2016 (continued)



$'000 $'000 $'000 $'000 $'000 $'000Executive Director, National Regulatory System Office of the Registrar - Current

147 3 6 16 - 172

Executive Director, National Regulatory System Office of the Registrar - Acting

35 1 1 3 - 40

Executive Director, Aboriginal and Torres Strait Islander Strategy Unit

79 1 2 8 - 90

1 July 2014 – 30 June 2015



$'000 $'000 $'000 $'000 $'000 $'000Director-General 452 3 8 50 - 513


239 3 5 26 - 273

Deputy Director-General, Housing Services

298 3 6 27 - 334


216 3 4 20 - 243


208 3 4 23 - 238

Assistant Director-General, Procurement Transformation - Current

120 3 1 13 - 137

Assistant Director-General, Procurement Transformation - Former

149 3 2 16 - 170


214 3 4 24 - 245

Executive Director, National Regulatory System Office of the Registrar

186 3 4 20 - 213


Post-employment

expenses


Total expenses


Post-employment

expenses


Total expenses




(d) Performance payments

Details of performance payment entitlements by key management person:

Date paid Amount Date paid AmountCurrent Director-General N/A N/A N/A N/A

Expensed in 2015-16 Expensed in 2014-15

The basis for payment was subject to a rigorous and independent assessment of those performance objectives and agreed KPIs being achieved, culminating in recommendations to the Premier. The Premier retained ultimate discretion as to whether payment of the 'at risk' component was paid, including the amount payable.

The former Director-General became entitled to receive a performance payment in respect of the 2013-14 year following authorisation by the former Premier.

N/A N/A October 2014 $53,332The remuneration package for the former Director-General provided for performance payments (also known as an 'at risk' component) to be made conditional on the achievement of objectives that were documented in that position’s performance agreement.

The remuneration package for the current Director-General does not provide for any performance or bonus payments.

The remuneration packages for all remaining key management personnel do not provide for any performance or bonus payments.

Position Basis for payment

Former Director-General



2016 2015$'000 $'000

9.2 Events occurring after balance date

9.3 Unrecognised items

(a) Commitments for expenditure

(i) Non-cancellable operating lease commitments


Total 1,734,305 2,019,866

(ii) Capital expenditure commitments

Land and buildings Not later than one year 105,154 93,359Later than one year and not later than five years 11,127 -

116,281 93,359Plant and equipment

Not later than one year 25,300 42,511

Intangible assetsNot later than one year 307 1,469Later than one year and not later than five years 23 72

330 1,541

Total 141,911 137,411

Commitments for capital expenditure at reporting date (inclusive of non-recoverable GST input tax credits) are payable:

In respect of this office accommodation, the department has occupancy agreements (sub-leases) with other Queensland Government departments. As these agreements are open-ended the amounts receivable extend over an indefinite period of time and therefore cannot be quantified in the financial statements.

On 20 July 2016, the Queensland Government issued a notice to Logan City Community Housing Limited to terminate the Logan Renewal Initiative Project Agreement for convenience, with effect on 17 August 2016. The termination will affect the recovery of the Logan Renewal Initiative receivable in Note 4.2.

Operating leases are entered into as a means of acquiring access to office accommodation. Rental payments are usually subject to fixed rate escalation clauses detailed in the lease. Most leases contain renewal clauses but no purchase options exist in relation to operating leases, and no operating leases contain restrictions on financing or other leasing activities.

Commitments under operating leases at reporting date (inclusive of non-recoverable GST input tax credits) are payable:



2016 2015$'000 $'000

9.3 Unrecognised items (continued)

(b) Contingencies

Contingent assets

Contingent liabilities

The following arrangements are not recognised as liabilities in the Balance Sheet:

Common law claims* 650 590Operating lease - 1 William Street** 978,596 978,596Total 979,246 979,186

9.4

The developer of 1 William Street, CBus Property 1 William Street Pty Ltd, has provided a bank guarantee of $35 million for security performance of the developer's obligations under the project deed.

Future impact of accounting standards not yet effective

At the date of authorisation of the financial report, the expected impacts of new or amended Australian Accounting Standards with future commencement dates are as set out below.

AASB 124 Related Party Disclosures

Effective from reporting periods beginning on or after 1 July 2016, a revised version of AASB 124 will apply to the department. AASB 124 requires disclosures about the remuneration of key management personnel (KMP), transactions with related parties, and relationships between parent and controlled entities.

* Key estimate : The common law claims relate to a number of litigation cases filed in various Queensland jurisdictions naming the department as defendant. The amounts reported for the claims represent estimates of the maximum cost that might be borne by the department in the event that defence of the action is unsuccessful. The amount represents the excess ($10,000) applicable in those instances where the defence of the case is managed by the Queensland Government Insurance Fund (QGIF) and the contingent liabilities have been assumed by the QGIF.

** Under the agreement entered into for the development of the 1 William Street site, the State has agreed to enter into a sub-lease of the building when construction has been completed. The State's commitment for the operating lease payments on the building sub-lease is contingent on the developer CBus Property 1 William Street Pty Ltd meeting certain requirements under the contract.

The department already discloses detailed information about remuneration of its KMP, based on Queensland Treasury’s Financial Reporting Requirements for Queensland Government Agencies . Due to the additional guidance about the KMP definition in the revised AASB 124, the department will disclose its responsible Minister as part of its KMP from 2016-17. The department does not provide remuneration to Ministers, so figures for Ministerial remuneration will not be disclosed by the department. Comparative information will continue to be disclosed in respect of KMP remuneration.

The most significant implications of AASB 124 for the department are the required disclosures about transactions between the department and its related parties (as defined in AASB 124). For any such transactions, from 2016-17, disclosures will include the nature of the related party relationship, as well as information about those transactions’ terms/conditions and amounts, any guarantees given/received, outstanding receivables/payables, commitments, and any receivables where collection has been assessed as being doubtful. In respect of related party transactions with other Queensland Government controlled entities, the information disclosed will be more high level, unless a transaction is individually significant. No comparative information is required in respect of related party transactions in the 2016-17 financial statements.



9.4

9.5

AASB 15 Revenue from Contracts with Customers and AASB 2016-3 Amendments to Australian Accounting Standards – Clarifications to AASB 15

This standard will become effective from reporting periods beginning on or after 1 January 2019 and it requires that lessees capitalise all leases [other than short-term (one year) leases and low value leases] on the Balance Sheet by recognising a right-of-use asset and a lease liability. The new requirements potentially will increase both leased assets and lease liabilities recorded on the Balance Sheet and result in both a depreciation (on the right-of-use asset) and interest charge (on the lease liability) in the Statement of Comprehensive Income. Though depreciation is likely to be on a straight-line basis, interest will be higher in the initial years which will have the effect of front loading expenses in the Statement of Comprehensive Income. The principal and interest portions of lease payments will be separately disclosed in the Statement of Cash Flows. The department will need to closely review its operating leases to determine how their accounting will be affected and consider any changes needed to processes and systems to collect the necessary information relating to assets previously recorded as operating leases. Given the value of the department’s operating lease commitments it is likely that the impact on the department will be significant.

Future impact of accounting standards not yet effective (continued)

Agreements have been reached with Queensland Treasury for the commercialised business units of the department to pay an income tax equivalent, in accordance with the requirements of the National Tax Equivalents Regime.

Where a commercialised business unit is subject to the tax equivalents regime, the income tax equivalent expense is calculated based on the Balance Sheet approach under which temporary differences are identified for each asset and liability. The tax effect of timing differences, which arise from items being brought to account in different periods for income tax and accounting purposes, is recognised in the Balance Sheet as a tax asset or a tax liability.

All other Australian accounting standards and interpretations with future commencement dates are either not applicable to the department's activities, or have no material impact on the department.

Key judgement : Tax assets are not brought to account unless realisation of the asset is probable. Tax assets relating to commercialised business units with tax losses are only brought to account to the extent that future profits are probable. Recovery of deferred tax assets is primarily based on projected operational results outlined in three year forecasting budgets provided to Queensland Treasury.

Taxation

The department is a State body as defined under the Income Tax Assessment Act 1936 and is exempt from Commonwealth taxation with the exception of Fringe Benefits Tax, Luxury Car Tax (in respect of certain fleet vehicles) and Goods and Services Tax (GST). As such, input tax credits receivable and GST payable from/to the Australian Taxation Office are recognised.

These standards will become effective from reporting periods beginning on or after 1 January 2018 and contain much more detailed requirements for the accounting for certain types of revenue from customers. Depending on the specific contractual terms, the new requirements may potentially result in a change to the timing of revenue from sales of the department's goods and services. Some revenue may need to be deferred to a later reporting period to the extent that the department has received cash but has not met its associated obligations, such amounts would be reported as a liability (unearned revenue) in the meantime. The department is yet to complete its analysis of current arrangements for sale of its goods and services, but at this stage does not expect a significant impact on its present accounting practices as any revenue likely to be deferred to a later reporting period is already reported as unearned revenue (for example construction contracts and rent).

AASB 16 Leases



2016 2015$'000 $'000

9.6 Administered activities

Administered revenuesAppropriation revenue 3,338 8,180User charges 90 62Other 28 38Total administered revenues 3,456 8,280

Administered expensesSupplies and services 3,338 6,432Grants and subsidies* - 1,759Transfer of administered revenue to government 115 95Total administered expenses 3,453 8,286

Operating result 3 (6)

Administered assetsCurrentCash 1 1,068Receivables - 130Total current assets 1 1,198

Administered liabilitiesCurrentPayables - 222Other - (24)Total current liabilities - 198

Net administered assets 1 1,000

Reconciliation of payments from consolidated fund to administered income

Budgeted appropriation 3,468 3,452Transfers from/to other headings - 7,293Lapsed appropriation revenue (11) -Total administered receipts 3,457 10,745

Opening balance of administered appropriation revenue payable/(receivable) (119) (2,684)Closing balance of administered appropriation revenue receivable/(payable) - 119Administered income 3,338 8,180

Amounts appropriated to the department for transfer to other entities in accordance with legislative or other requirements are reported as administered appropriation revenue.

Accounting policies applicable to administered items are consistent with the equivalent policies for controlled items.

The department administers, but does not control, certain resources on behalf of the Queensland Government. In doing so, it has responsibility and is accountable for administering related transactions and balances, but does not have the discretion to deploy the resources for the achievement of the department’s objectives.

Administered transactions and balances are not significant in comparison to the department’s overall financial performance/financial position.

* Grants and subsidies are provided by Building and Asset Services and include community service obligations for apprenticeships, Aboriginal and Torres Strait Islander training and State Government Security employment retention arrangements (2015).



2016 2015$'000 $'000

9.7 Agency transactions and balances

(a) Building and Asset Services

Agency revenuesReceipts for goods and services 334,570 445,171

Agency expensesSupplies and services 334,570 445,171

Agency current assetsReceivables 48,299 37,957Total 48,299 37,957

Agency current liabilitiesBank overdraft 31,677 18,073Payables 13,874 15,726Other 2,748 4,158Total 48,299 37,957

(b) Resource management services

Agency revenuesReceipts for goods and services 153,260 116,344

Agency expensesSupplies and services 144,922 114,231

Agency current assetsCash and cash equivalents 11,862 3,680

The department acts as an agent on behalf of other Queensland Government agencies and Allegis Global Solutions in relation to the provision of resource management services for ICT contractors. The department does not receive any fees for providing agent services but is entitled to the interest earned from a bank account associated with this agency arrangement.

As the department performs only a custodial role in respect of agency transactions and balances, they are not recognised in the financial statements but are disclosed in these notes for the information of users.


Summary of requirement Basis for requirement

Annual report

reference

Page No.

Letter of compliance • A letter of compliance from the accountable offi cer or statutory body to the relevant Minister/s

ARRs – section 8 2

Accessibility • Table of contents

• Glossary

ARRs – section 10.1 4

55

• Public availability ARRs – section 10.2 3

• Interpreter service statement Queensland Government Language Services Policy

ARRs – section 10.3

3

• Copyright notice Copyright Act 1968


3

• Information Licensing QGEA – Information Licensing


3

General information • Introductory Information ARRs – section 11.1 7

• Agency role and main functions ARRs – section 11.2 7, 46, 51

• Operating environment ARRs – section 11.3 7

Non-fi nancial performance • Government’s objectives for the community


• Other whole-of-government plans / specifi c initiatives

ARRs – section 12.2 7, 41

• Agency objectives and performance indicators

ARRs – section 12.3 7, 10-12

• Agency service areas and service standards

ARRs – section 12.4 14–31

Financial performance • Summary of fi nancial performance ARRs – section 13.1 57

Governance – management and structure

• Organisational structure ARRs – section 14.1 8

• Executive management ARRs – section 14.2 33-36

• Government bodies (statutory bodies and other entities)


• Public Sector Ethics Act 1994 Public Sector Ethics Act 1994


33, 45

• Queensland public service values ARRS – section 14.5 7

Appendix A Compliance Checklist


Summary of requirement Basis for requirement

Annual report

reference

Page No.

Governance – risk management and accountability

Risk management ARRs – section 15.1 7, 30, 33, 37-40

Audit committee ARRs – section 15.2 37, 40

Internal audit ARRs – section 15.3 40

External scrutiny ARRs– section 15.4 41

Information systems and recordkeeping ARRs – section 15.5 40

Governance – human resources

Workforce planning and performance ARRs – section 16.1 44

Early retirement, redundancy and retrenchment

Directive No.11/12 Early Retirement, Redundancy and Retrenchment

Directive No. 16/6 Early Retirement, Redundancy and Retrenchment (from 20 May 2016)


45

Open Data Consultancies ARRs – section 17 ARRs – section 34.1

49

Overseas travel ARRs – section 17 ARRs – section 34.2

49

Queensland Language Services Policy ARRs – section 17 ARRs – section 34.3

49

Financial statements Certifi cation of fi nancial statements FAA – section 62

FPMS – sections 42, 43 and 50


111

Independent Auditors Report FAA – section 62

FPMS – section 50


112

FAA Financial Accountability Act 2009

FPMS Financial and Performance Management Standard 2009

ARRs Annual report requirements for Queensland Government agencies

Department of Housing and Public Works2015–2016 Annual Reportwww.hpw.qld.gov.au

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