department of natural resources and mines annual report 2015 … · 2016-09-30 · department of...

Department of Natural Resources and Mines

Department of Natural Resources and Mines Annual report 2015–2016

CS5751 09/16

ISSN 2201-2087

Interpreter statement

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

Public availability

Copies of the annual report are available online at www.dnrm.qld.gov.au. Limited printed copies are available by calling 13 QGOV (13 74 68).

This publication has been compiled by Business Planning and Achievement of Business and Corporate Partnership.

© State of Queensland, 2016.

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Department of Natural Resources and Mines Annual report 2015–2016 1

Contents

Letter of compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

About the department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3Who we are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Our vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Our values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Our guiding principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Our strategic risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Our performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Agency service areas and service standards . . . . . . . . . . . . . . . . . . . . . . . . 5Agency objectives and performance indicators . . . . . . . . . . . . . . . . . . . . . . 6Other whole-of-government plans and specific initiatives . . . . . . . . . . . . . . . . 17Looking forward: 2016–17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Financial performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23Financial overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Financial position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Administered activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Safety and health levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Governance—management and structure . . . . . . . . . . . . . . . . . . . . . . . . . .27DNRM board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Sub-committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Other boards and committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Organisational structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Public Sector Ethics Act 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Governance—risk management and accountability . . . . . . . . . . . . . . . . . . . .32Risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32External scrutiny . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Audit and Risk Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Internal audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Information systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Recordkeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Governance—human resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38Workforce profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Permanent separation rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Workforce planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Human resources strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Working for Queensland Employee Opinion Survey . . . . . . . . . . . . . . . . . . . . 40Industrial and employee relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40Early retirement, redundancy and retrenchment . . . . . . . . . . . . . . . . . . . . . . 41

Open data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42

Government bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42

Financial statements: 30 June 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43

Appendix 1: Legislation administered by DNRM . . . . . . . . . . . . . . . . . . . . . . .108

Appendix 2: Performance statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111

Appendix 3: Compliance checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .112

Abbreviations and glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115

Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .116


Letter of compliance

5 September 2016

The Honourable Dr Anthony Lynham MP Minister for State Development and Minister for Natural Resources and Mines PO Box 15216 City East Qld 4002

Dear Minister Lynham

I am pleased to submit for presentation to Parliament the Annual report 2015–2016 and financial statements for the Department of Natural Resources and Mines.

I certify that this annual report complies with:

• the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009

• the detailed requirements set out in the Annual report requirements for Queensland Government agencies.

A checklist outlining the annual reporting requirements can be found on page 112 of this annual report.

Yours sincerely

James Purtill Director-General Department of Natural Resources and Mines


About the department

Who we are

The Queensland Government established the Department of Natural Resources and Mines (DNRM) through a machinery-of-government announcement on 3 April 2012, under the Public Service Act 2008.

Our vision

During the year, the department progressed its vision for the responsible use of our natural resources—water, land, minerals and energy—to sustainably generate prosperity for current and future generations of Queenslanders.

Queensland has a rich endowment of natural resources. Our performance as a manager of land, water, minerals and energy resources is critical to the state’s prosperity.

The department contributes to the Queensland Government objectives for the community. We support the creation of jobs and a diverse economy by increasing investment confidence through security of rights to land, water, minerals, gas and petroleum.

We also play a significant role in protecting the environment and building connected communities. We manage rights to natural resources, which involves both legal ownership and security to exercise those rights. By boosting public confidence that resources are managed responsibly, we contribute to building community consent for the use of those resources. Our use of broad consultation, collaboration, evidence-based decision-making and monitoring helps to ensure resource access policies have the support of the community, our customers and our stakeholders.

Our values

DNRM embraces the Queensland public service values:

Customers first

Know your customers

Deliver what matters

Make decisions with empathy

Ideas into action

Challenge the norm and suggest solutions

Encourage and embrace new ideas

Work across boundaries

Unleash potential

Expect greatness

Lead and set clear expectations

Seek, provide and act on feedback

Be courageous

Own your actions, successes and mistakes

Take calculated risks

Act with transparency

Empower people

Lead, empower and trust

Play to everyone’s strengths

Develop yourself and those around you


Our guiding principles Building on the public service values, the department’s principles guide our actions and represent fundamental, positive leadership standards to which our people can aspire.

Safety and wellbeing

Safety is part of our core business and a zero harm philosophy is something we aspire to for ourselves. It’s a core principle for how we operate and conduct our daily business. What matters is that our actions towards each other, our customers and our stakeholders ensure we are all physically and emotionally healthy.

Professional excellence

Our professional excellence principle is about technical expertise as well as building excellence in the areas of communication, interpersonal skills, consultation, business acumen, customer service and anything that makes us responsive to customers and stakeholders. Our work is highly technical and it is important to pay attention to detail and apply a consistent level of completeness and timeliness. Customers and stakeholders rely on us to be a point of truth for information and knowledge. Our interactions at every counter, event, audit, inspection or meeting must build confidence that we are managing resources in a responsible way.

Customer focus To ensure we continue to meet the expectations of customers, we focus on the total customer experience—from the very first contact with our department through to the final transaction. Our services must be timely, efficient and effective. We are working progressively to review and enhance our services, taking advantage of new technologies and best practice solutions.

We deliver

Our commitment is to do what we say we will do and do it on time.

Respect

The way we interact with each other in the workplace is the cornerstone of this principle. It is important that we act with integrity and are accountable for our everyday interactions. An important role we play is consulting with stakeholders to understand their challenges. We also demonstrate our integrity through transparent and timely decision-making.

Our strategic risks

Our key strategic risks:

• departmental vision not supported by our strategic plan and operating/service delivery model for execution

• failure to achieve, optimise and/or leverage engagement to achieve the department’s objectives

• misalignment in workforce capability and culture (as distinct from technical skills) in the medium and long term to support achievement of the department’s objectives

• adequacy and effectiveness of safety governance practices

• impact of information and communications technology (ICT) systems on channelling service delivery to meet user, stakeholder and customer needs and expectations.


Our performance

During 2015–16, the department continued to focus efforts on implementing the government’s direction, priorities and commitments

Agency service areas and service standards

Land and Water Services

The objectives of this service area are to provide a robust framework for dealing with land and water resources that provides confidence and certainty to customers and the community, and enable sustainable allocation and use of the state’s land and water resources to create opportunity for current and future generations of Queenslanders.

The land and water service area:

• administers state land and water, including issuing licences, permits, leases and other dealings

• resolves native title claims

• allocates unallocated state land and water

• manages unallocated state land

• promotes water trading through market mechanisms

• administers the Titles Registry

• issues land valuations

• maintains Queensland’s spatial data.

Mining Services

The objectives of this service area are to provide a robust framework that encourages exploration, investment and development (thereby enabling sustainable use of the state’s resources), and enable safe and healthy resources industries by reducing safety and health risks, driving innovation and building industry awareness and skills.

The mining service area:

• provides geoscientific and resource information to enable exploration activities

• administers permits for mining, petroleum (including gas), geothermal and carbon sequestration and storage activities

• oversees the safety and health of workers in Queensland’s mining, explosives and petroleum and gas industries, and communities affected by mining, explosives, petroleum and gas

• licenses the use of explosives and gas.


Agency objectives and performance indicators

In 2015–16, the department focused on delivering the government’s objectives for the community through our departmental strategic objectives. The department’s objectives (as outlined in the department’s Strategic plan 2015–19) are detailed below.

Strategic objective 1: Sustainable management of Queensland’s land and water resources

Water monitoring

To enable the department to effectively manage the state’s water resources, over 700 water monitoring sites across Queensland record and report in excess of six million data points from river, rainfall and groundwater network sites by telemetry. Statewide, the department consistently met its target of 95 per cent of sites reporting within 24 hours. Manually measured water quantity and quality data was also collected at over 4000 water monitoring sites on the department’s surface water and groundwater networks.

The surface water and groundwater networks are managed within a certified quality management system, and made publically available on the department’s Water Monitoring Information Portal (https://water-monitoring.information.qld.gov.au) and on Queensland Globe under the government’s open data initiative.

The department’s Stream Gauging Station Network also supports the Bureau of Meteorology (BoM) Queensland flood warning. The Queensland flood warning network is made publicly available through the BoM website (www.bom.gov.au/qld/flood).

Early detection system

During 2015–16, the department trialled and implemented an early detection system (EDS) to support effective vegetation management and a proactive compliance program focused on early detection and early response to incidents of unexplained clearing.

The EDS builds on the technology used for the Statewide Landcover and Tree Study (SLATS), a vegetation change detection tool that has been used for the last 15 years to assist vegetation compliance efforts. While SLATS data was provided on an annual basis, EDS provides change detections on a regular, 16-day cycle. Since October 2015, approximately 89 per cent of the state has been assessed under the EDS.

The introduction of the EDS enabled early engagement with landholders, reducing the impact of unauthorised clearing.

For landholders, this means that compliance matters are kept at the lower end of the scale and, for the environment, the impact on Queensland’s regulated native vegetation is significantly reduced.

Water resource plans

The department implemented the Water Resource (Wet Tropics) Plan 2013 through a resource operations plan (released in July 2016) that:

• created 199 unsupplemented water allocations and amended over 1400 water licences with clearer access conditions and simpler terms

• established a trading framework for surface water and groundwater entitlements

• provided a process to facilitate sustainable releases of strategic, general and Indigenous reserves of unallocated water to support economic growth throughout the region

• protected the unique environmental values of the region by equitably sharing water amongst consumptive users and the environment

• managed water take in areas prone to experiencing periods of low water availability, providing water security for irrigators and major urban centres within the plan area.


The department commenced:

• a targeted amendment to the Water Resource (Burdekin Basin) Plan 2007, creating in excess of 200 water allocations and providing a trading framework so that under-utilised entitlements can be moved to the highest and most valuable use, ahead of any releases of unallocated water

• a new statutory water plan for Cape York (the last region of Queensland to undergo a water planning process)

• a competitive tender process in the Water Resource (Gulf) Plan 2007 area for up to 264 500 megalitres of unallocated water to support economic development in the region.

Paddock to reef programs

The department met federal Caring for our Country project commitments as part of the Reef water quality protection plan 2013 (developed as a joint Queensland and Australian government initiative) in response to a decline in water quality entering the Great Barrier Reef lagoon.

The department also implemented the regional component of the Paddock to Reef Monitoring and Modelling Program. This was achieved by undertaking the following activities:

• Paddock monitoring—Paddock-scale monitoring of management practices provided direct comparisons and observations of changes to water quality over time. Monitoring is ongoing at cane, grain and grazing sites.

• Brigalow catchment study—The study quantifies the effects of clearing native brigalow vegetation for the agricultural land uses of cropping and grazed pastures. The project consisted of studies relating to catchment hydrology, land productivity and resource condition of the brigalow lands.

• Rainfall simulation—This provided evidence and on-ground demonstration of the effectiveness of practices for managing sediment, nutrient and pesticides, examining parameters such as particular soil erodibility factors for grazing.

• Paddock and catchment modelling—This provided evaluation tools that aimed to quantify the reduction in loads due to the adoption of improved land management practices.

Flood management activities

In 2015–16, the department engaged Kellogg, Brown and Root to conduct a review of the Queensland flood warning gauge network. The review identified that BoM accesses data from approximately 3000 rainfall and stream flow gauges, which are owned and operated by more than 50 entities (including the department, councils and BoM). The findings of the review highlighted opportunities for improving the early flood warning network, including flood gauge operation and maintenance. Implementation of the review recommendations was led by the Queensland Reconstruction Authority in cooperation with the department and BoM, and in consultation with the Department of Infrastructure, Local Government and Planning, and Queensland Fire and Emergency Services.

The Queensland Reconstruction Authority consulted with 44 priority local governments across the state to identify where the flood warning gauge network can be improved, and to help councils develop investment plans for the future. The department engaged BoM to provide flood warning network design reports for each of the priority councils.

Vegetation Management (Reinstatement) and Other Legislation Amendment Bill 2016

The Vegetation Management (Reinstatement) and Other Legislation Amendment Bill 2016 proposes to protect the health of the Great Barrier Reef and reduce carbon emissions by:

• reinstating the protection of high-value regrowth on freehold and Indigenous land (category C)

• removing provisions permitting clearing for high-value agriculture and irrigated high-value agriculture

• broadening protection of regrowth vegetation in watercourse areas (category R) to cover all Great Barrier Reef catchments

https://www.dnrm.qld.gov.au/our-department/corporate-information/policies-initiatives/vegetation-management/new-laws/clearing-high-value


• reinstating compliance provisions

• reinstating provisions in the Water Act 2000 to regulate against the destruction of vegetation in a watercourse under a riverine protection permit

The Bill was introduced into Parliament on 17 March 2016. The Bill was considered by the Agriculture and Environment Parliamentary Committee, which released its report on 30 June 2016. The government is considering the report.

Stock Route and Other Land Legislation Amendment Bill 2016

The Stock Route and Other Land Legislation Amendment Bill 2016 proposes to introduce a single contemporary Act to better support the long-term management of the stock route network and make minor amendments to the Land Act 1994 and the Land Title Act 1994 to streamline processes.

Under the Bill, local governments will be given more flexibility to administer and maintain the stock route network, and manage stock travel and grazing on other roads and reserves in their region. The Queensland Government will continue to be responsible for ensuring the integrity and connectivity of Queensland’s stock route network for its main purpose of travelling stock. The Bill also establishes a mechanism to recognise the stock route network’s natural and cultural heritage values into the future.

The draft Bill is under development and consultation with key stakeholders and other government departments is underway. The Queensland Government will consider the Bill later in 2016.

Resolution of native title claims

The resolution of native title claims provides for the recognition in Australian law of native title rights and interests over land. This provides security for native title holders and other stakeholders who have pre-existing rights and interests in the land. It also facilitates the process for the resolution of future development, which provides opportunities for economic growth for all interested parties.

In the 2015–16 financial year, there were 12 claimant determinations made by the Federal Court covering various parts of Queensland:

1. Wulli Wulli people (13 August 2015)

2. Mithaka people (27 October 2015)

3. Birriah people, Part A (23 March 201)

4. Bar Barrum people, #2 (10 June 2016)




8. Darumbal people (21 June 2016)

9. Iman people, #2, Part A (23 June 2016)

10. Barada Barna people (29 June 2016)

11. Widi people, #2 (29 June 2016)

12. Barada Barna/Widi People’s shared country (29 June 2016).

A further 11 claims were filed with the Federal Court during 2015–16, bringing the total of active native title claims in Queensland to 81, covering just under half the area of Queensland.

To date, Queensland has resolved 117 consent determinations—the highest number for any state or territory. This is 37 per cent of all determinations of native title across Australia.


The negotiation and settlement of Indigenous land use agreements (ILUAs) were incorporated into the process for the settlement of four of these determinations. This included protected area ILUAs, which facilitate the ongoing public use and environmental protection values of conservation areas while providing a mechanism for incorporating native title rights and interests into the management of national parks. Tenure resolution ILUAs were negotiated as part of two of the determinations. Tenure resolution ILUAs provide opportunities for native title holders to obtain land in freehold or share in the net proceeds from the sale of freehold in exchange for the surrender of native title over selected areas. This process provides a platform for local and regional development, as well as economic opportunities for local Aboriginal and Torres Strait Islander people.

Indigenous land tenure

The department is the lead agency responsible for granting land as inalienable freehold title to Aboriginal and Torres Strait Islander people (primarily made to eligible Indigenous land trusts or corporations) under the Aboriginal Land Act 1991 and the Torres Strait Islander Land Act 1991.

The granting of land allows trustees to effectively manage their land to achieve the best outcomes for their community.

In 2015–16, approximately 69 700 hectares of land was transferred under the Aboriginal Land Act across Queensland, including land at Duaringa, Yarrabah, Charters Towers and Clarke Creek, and on the Cape York Peninsula.

To date, the total area of land transferred to Aboriginal and Torres Strait Islander people in Queensland is approximately 5.6 million hectares.

The department also continues to work in partnership with the Department of Aboriginal and Torres Strait Islander Partnerships and the Department of Housing and Public Works to implement leasing arrangements and home ownership through the Aboriginal and Torres Strait Islander Land Holding Act 2013.

In 2015–16, 10 of the 29 lease entitlements for Lockhart River were granted.

Indigenous community freehold

From 1 January 2015, Indigenous communities in Queensland have had the opportunity to make land available as ordinary freehold. A two-year pilot project is being undertaken in seven communities to road test the option of making freehold available.

The seven communities—the Aboriginal communities of Cherbourg, Hope Vale, Napranum and Mapoon, and the Torres Strait Islander communities of Hammond Island, Poruma Island and St Pauls—were selected through expressions of interest in the pilot project.

The extent to which freehold is made available is a matter for each community to decide, and implementation plans step out the consultation process to be followed to allow these decisions to be made. To date, no community has made freehold available.

Key performance indicators*

a. Greenhouse gas emissions from native vegetation clearing

b. Water catchments with sustainable water allocations

c. Sediment and nutrient levels in Great Barrier Reef catchment streams

d. Native title determinations achieved by consensus**

e. Percentage of state land allocated for use

* These are new measures and baseline data is being established. ** Result is reported in ‘Appendix 2: Performance statement’ on page 111.


Strategic objective 2: Responsible use of our minerals and energy resources

North West Minerals Province

The North West Minerals Province has delivered significant benefits to the region and the state over an extended period of time.

A number of the more significant operations in the region have reached, or are about to reach, the end of their mine lives, and a lack of renewal may have a significant structural impact on the region and wider Queensland economy.

A Queensland Government strategy to support future mining and to promote economic activity in the North West Minerals Province is being developed.

The Queensland Government—in partnership with the Queensland Resources Council—has established a taskforce for the North West Minerals Province. The taskforce is developing a set of recommendations on how to tackle challenges and respond to opportunities for the resources industry in the province. These recommendations will be considered by government in the development of the strategic blueprint for the region.

Extensive analysis has been undertaken during development of the strategic blueprint for consideration by government. Three taskforce meetings were held in Mount Isa on 1 March 2016, 1 June 2016 and 21 June 2016.

Annual exploration program

The inaugural Annual exploration program 2016–17 provides much needed strategic direction for exploration in Queensland. The department implemented a statewide annual exploration program to provide a more systematic process for releasing resource exploration tenders and much needed communication around the existing competitive tendering process.

It identified the exploration areas and timing of release, and the government’s priorities for the responsible development of our minerals, petroleum and gas, and coal resources. Publication of an annual exploration program will help resource companies plan their exploration programs and provide additional opportunities to promote Queensland on a global scale.

A key change is engagement with landowners, relevant traditional owners, local government, community groups and peak representative groups before the commencement of competitive tendering processes. The information provided through this engagement enables directly affected stakeholders to be better prepared for future exploration approval processes and negotiations.

The 2017–18 program is due to be released in the second half of 2016.

Resources Ministerial Roundtable and Resources Community Roundtable

The two roundtables provide a forum for strategic policy development in collaboration with the resources sector and resources communities. The department provides direct support through the progression of priority actions identified by the resource sector and resource community members.

Four ministerial and four community roundtable meetings were held. These meetings are instrumental in gaining feedback, testing strategic policy directions, progressing priority actions and collaboratively developing solutions with the resources sector and resources community stakeholders.

Mineral and Other Legislation Amendment Bill 2016

Legislation to restore community objection rights to mining projects and to reinstate protections for key agricultural infrastructure was passed by the Queensland Parliament on 24 May 2016. These amendments give effect to key government commitments and will contribute to restoring the balance between landholders and the resources sector in Queensland.

The Bill amends certain aspects of the Mineral and Energy Resources (Common Provisions) Act 2014 (yet to commence) to deliver on the Queensland Government’s commitment to restore community objection rights to proposed mining


projects. These amendments will ensure that the community will be able to have input into proposed mining projects that affect them on broad grounds.

In addition, the Bill contained amendments to deliver on the government’s commitment to reinstate protections for key agricultural infrastructure, such as principle stockyards, bores and artesian wells, dams and artificial water storages connected to a water supply. This critical infrastructure will be protected by a 50 metre restricted land area, and landholder consent will be required before any authorised activities can occur within that area. The restricted land framework will apply to all new resource authorities granted after the commencement of the legislation—including petroleum and natural gas tenures for the first time.

The legislation was passed by the Queensland Parliament on 24 May 2016 and received Royal Assent on 14 June 2016.

Innovative Resource Tenure Reform Project

This project is contributing to the department’s plan for a strong, internationally competitive minerals and energy sector. In August 2015, the Innovative resources tenures framework: policy position paper was released.

This was followed by extensive consultation sessions held across the state, with participants from 115 organisations representing the resources sector (from large-scale to small miners), local governments, native title groups, agricultural and environmental sectors, and law and consultancy firms. Feedback has generally been positive, with in-principle support provided for the key elements and the approach taken in the new framework. Work is continuing on refining the elements of the framework.

Coal workers’ pneumoconiosis

As of 30 June 2016, there were 10 confirmed cases of coal workers’ pneumoconiosis reported in the Queensland coalmining industry.

In response, the department engaged Professor Malcolm Sim from the Monash University Centre for Occupational and Environmental Health to conduct an independent review of the respiratory component of the Coal Mine Workers’ Health Scheme. This review is one of the key actions in the government’s five-point plan to help identify and prevent coal workers’ pneumoconiosis.

A reference group comprising representatives of mine workers, mine operators, medical professionals and regulators was formed to provide expert advice directly to the review team led by Professor Sim.

In parallel to the work of Professor Sim and the reference group, the department is working with industry and union stakeholders through the Coal Mining Safety and Health Advisory Committee to improve the regulation around monitoring, reporting and control of respirable dust in the industry. In addition to the proposed changes to the Coal Mining Safety and Health Regulation 2001, two recognised standards were developed to provide direction to industry on how to achieve the intent of the regulations. These standards cover respirable coal dust monitoring and controlling the generation of respirable dust in coal mines.

Compliance activities

During 2015–16, the Mines Safety and Health Inspectorate (which covers the coal, metalliferous, explosives and petroleum and gas inspectorates) received reports of around 780 incidents and complaints. Approximately 2230 inspections were conducted and 350 directives were issued.

The Mine Safety and Health Inspectorate continues to work proactively with industry, unions and key stakeholders, including participation in reference groups and committees.

Abandoned mines

The Abandoned Mine Lands Program continues to focus on public safety as its number one priority, as well as the minimisation of off-site impacts.


Activities in 2015–16 included:

• management of large abandoned mine sites, including Mount Morgan, Horn Island, Croydon Federation, Herberton Tailings Dam, Mount Oxide and Mary Kathleen—this involves maintaining safety barriers and signage, groundwater and seepage collection systems, run-off and erosion controls, and vegetation and fire management

• ground truthing of abandoned mine sites close to communities to accurately identify features at these sites and progressively close out public risks—this year, 582 features were inspected in the Ravenswood, Croydon, Gilberton and Cloncurry areas, and 190 open shafts were backfilled around Croydon

• managing the historic shaft repair programs in Gympie and Charters Towers—12 historic shafts were made safe after investigating 30 reports of subsidence, and the department completed 190 public search requests relating to historic shafts and undermining

• administration of the government’s ongoing commitment to address issues arising from the major subsidence events in Ipswich in 2008 and 1988 under the Collingwood Park State Guarantee

• incorporating government-owned land at Rainbow Beach, which was subject to historic mineral sand mining, into the program—the strategy for managing this site is being reviewed

• working with the lessee of Chidna Station to establish the best strategy for cattle exclusion fencing at the Mount Oxide abandoned mine.

The Abandoned Mines team worked closely with the Department of Environment and Heritage Protection, Mining and Petroleum Operations and the Mines Inspectorate to provide collaborative specialist support to address disclaimed mines and mines at risk of ceasing operation—including Texas Twin Hills, Collingwood Tin and Mount Chalmers.

Collaborative Drilling Initiative

The Collaborative Drilling Initiative provides grants of up to $150 000 to support innovative exploration projects in Queensland. In 2015–16, rounds 8 and 9 of this popular initiative supported 32 projects targeting gold, copper–gold, base metals, graphite and phosphate in various areas of Queensland. Eleven of these exploration projects were completed during the year, with six of these achieving technical success, including five related to the discovery of mineralisation.

Continued exploration is vital to unlock the resources that will support the mining projects and jobs of the future in the north-west and other areas of Queensland. The successes achieved through this program help identify new techniques and models that help attract this investment.

Funding to support the initiative was provided through the $30 million Future Resources Program, which will conclude in 2016–17.

Since the initiative commenced in 2006, more than $6.45 million in government grants has been paid to 55 companies for 78 completed exploration projects. These grants have leveraged a further $18.65 million in direct industry investment and provided the resources sector with access to considerable new and valuable information about Queensland’s mineral and energy potential, which has stimulated further ongoing exploration.

Industry Priorities Initiative

During 2015–16, work continued on the remaining eight geoscience research projects selected from the three rounds of the Industry Priorities Initiative. These projects were supported through grants provided under the government’s $30 million Future Resources Program.

Interim results released in 2015–16 included a study investigating potential hydrocarbon source rocks from several Queensland basins, a major magnetotelluric dataset covering the Boulia area (released to explorers seeking extensions of the Mount Isa ore body) and a major prospectivity study of the Charters Towers region.

Projects funded through this initiative were those proposals identified by the resources industry and the Geological Survey of Queensland as having the highest potential to promote further exploration in the state. As this research is


government funded, results are made publically available as soon as is practicable after project completion. All remaining projects will be completed in the 2016–17 financial year.

Exploration concession

The exploration concession allowed for a reduction in expenditure commitments to be considered for mineral and coal explorers to help them ride out the global mining downturn while continuing to explore. A holder of an exploration permit for both minerals and coal who is due for a milestone compliance assessment in 2016 and 2017 may now lodge a special application to vary their expenditure conditions by up to 50 per cent. The concession has the potential to provide up to approximately $270 million in expenditure relief to the exploration sector.


a. Industry injury frequency rates

b. Australian minerals and energy exploration occurring in Queensland

c. Minerals and energy resources outlook profiles for Queensland priority commodities developed

d. Geological knowledge expanded

e. Minerals and energy industry productivity

* These are new measures and baseline data is being established.

Strategic objective 3: Accurate, timely knowledge of our property and spatial information resources

Titling system

Accurate and timely registration of interests in land by the Titles Registry provides land owners and investors with certainty and security, and underpins the state’s $450 billion property market.

During 2015–16, more than 99.8 per cent of dealings were registered accurately (i.e. without the need for any subsequent corrective or remedial action) and more than 90 per cent of registrations were completed within an average of 5 business days.

Land valuations

On 2 March 2016, approximately 1.15 million land valuations were released to landowners in 24 of Queensland’s 62 rateable local governments. Of all the valuations released, over 99.7 per cent were accepted by landowners.

Valuations are produced by the Valuer-General, who is the independent statutory head of the State Valuation Service. Valuations are benchmarked, using internationally recognised quality standards defined in the Valuer-General’s mass appraisal performance standards.

The online objections process improved significantly in 2016. The increase of objections lodged online rose from 39 per cent last year to 69 per cent this year.

Spatial and information solutions

The department continued to deliver world-class spatial and information solutions in 2015–16, with a 66.59 per cent growth in use of online services. Our flagship application, Queensland Globe, has continued to grow—with a customer base throughout Queensland, across Australia and around the world.

The department continued to increase the availability of web services (direct computer-to-computer connections) and this was popular with customers. The number of web services grew by 138.5 per cent and more web services will be released in the next financial year.


The quality of foundation spatial datasets continues to improve, demonstrated this year by the completion of the drainage network data for Queensland and quality improvements to addressing data in comparison with other state jurisdictions.

Key performance indicators

a. Accuracy of titling system

b. Accuracy of land valuations*

c. Growth in spatial systems data usage

* This is a new measure and baseline data is being established.

Table 1 Targets and actuals of key performance indicators

Target 2015–16 Actual 2015–16 Comment

a) 99.5% 99.8% Target exceeded

c) 20% 68.3% Target exceeded

Strategic objective 4: Great services, great place to work

Safety and wellbeing

The department is committed to creating a workplace where safety and wellbeing is a guiding principle to keep everyone in DNRM safe and well. Through our Safety and Wellbeing strategy, we aim to:

• raise awareness of safety and wellbeing across the agency

• build our workforce’s capability in safety and wellbeing

• implement a best practice risk management framework and systems.

Through our workforce safety committee structures, we endeavor to lead best practice governance and risk management processes to manage hazards associated with activities. We strive to continually improve our culture, maintain oversight and transparency of business, and ensure the implementation of consistent and standardised systems and structures.

The department’s Health and Wellbeing program facilitated the delivery of a domestic and family violence awareness program, participation in the Queensland Corporate Games, provision of the flu vaccination program and delivery of mental health and resilience sessions—all in an effort to promote a positive, happy and healthy workforce.

Industry Reporting Reform Project

This project has been instrumental in delivering an estimated $4.1 million in savings to industry and government through:

• identification and removal of the need to submit unnecessary reports and reporting content

• reduction in the frequency of submission of some reports

• provision of a single point of entry online navigation page that enables industry to access their reporting obligations for 158 reports and notices

• completion of an exposure draft of detailed guidelines on reporting content and format requirements to help industry better prepare reporting for government


• release of an application program that enables companies to lodge petroleum production and reserves reports through MyMinesOnline

• definition of high-level reporting data standards for the submission of geoscientific data.

Working for Queensland

The department undertook a significant engagement and communication campaign in order to increase employee participation in the sector-wide annual Working for Queensland Employee Opinion Survey and, more importantly, provide meaningful and rich data. The department established staff representative teams within each division to workshop the survey results, identify critical on-the-ground issues in their workplace and empower staff to develop localised action plans to address some of these issues.

Annual Report to Staff event

This year, 508 staff across 4 locations attended the inaugural 2016 DNRM Annual Report to Staff event to celebrate the department’s achievements over the past year.

Professional excellence

The departments’ capability development is linked to our four core capabilities—leadership, management, core and technical. Each core capability has a specific enterprise program designed to achieve capability uplift across the department. Specifically, the leadership component focuses on three levels:

1. self-leadership

2. team leadership

3. business leadership.

To achieve the creation and progression of a leadership cohort with aligned leadership values and behaviours, the department provided initiatives including 360 executive feedback, workshops, executive coaching, mentoring, action learning and experiential learning opportunities.

Diversity and inclusion

Our Diversity and Inclusion strategy contributes to achieving a workplace in which individual differences are respected, diverse skills and knowledge are valued and utilised, opportunities are available for all, engagement with partners and stakeholders is effective, and the voice of the community is represented.

The specific strategies support the government’s commitment to providing opportunities for women, youth, seniors, Aboriginal and Torres Strait Islander people, and people with disabilities.

In addition, the department offers a family-friendly approach that contributes to the maintenance of a diverse, adaptive and high-performing workforce. Employees have access to accrued leave, job sharing, part-time employment, phased retirement and telecommuting arrangements. The department has developed a toolkit to help managers and employees understand and implement available flexible working options, while continuing to deliver quality products and services and maintaining business productivity. A breastfeeding policy and supporting program were implemented to support working mothers.

CSG groundwater monitoring

The Coal Seam Gas Compliance Unit continued implementing enhancements to the groundwater monitoring program for Queensland’s intensive and economically important coal seam gas (CSG) industry.

There are two sub-projects—CSG Net and CSG Online.


CSG Net is a community-based monitoring program in CSG areas. Landholders are engaged in groups, provided with information on the CSG industry and groundwater systems, and encouraged to measure groundwater levels in their private water bores on a monthly basis.

Fourteen CSG Net groups have now been established. They involve 480 members covering approximately 90 per cent of the CSG development area in the Surat Basin. The department and Landcare provide on-ground support to CSG Net group activities. The development of web-based software, My Groundwater Monitoring, enables landholders to input monitoring data into the groundwater database easily and efficiently.

CSG Online involved the installation of continuous monitoring loggers and telemetry at a minimum of 60 strategically located sites, with live data available to the community online. Data from 47 continuous loggers is currently available on CSG Globe, with another 15 sites scheduled for installation by July 2017.

The CSG groundwater monitoring initiative yielded multiple benefits:

• Landholders are empowered to monitor their own water bores in the knowledge that an improved and transparent monitoring framework is in place to protect their interests.

• Government has a more effective and efficient monitoring network, and improved accountability and relationships with landholders.

• Results are used to independently cross-reference and verify groundwater monitoring results from CSG companies, providing enhanced community confidence in industry data.

The success of this groundwater monitoring program in CSG development areas has led to the establishment of a pilot program in the Acland area, where the expansion of a mine has the potential to impact groundwater resources. The response from landholders in the Acland area has been very positive. Planning for implementation of groundwater monitoring programs involving landholders in other areas across Queensland is underway.

Customer complaints management

In line with the requirements of the Public Service Act 2008, the department tracked the complaints received in the 2015–16 financial year.

The department received 242 customer complaints in the past year. Complaints were classified as service delivery (52), statutory (85), staff conduct (13), administrative decision (65), policy/procedure (5) or unclassified (22).

The number of those complaints resulting in further action is unknown. The current complaints reporting arrangements do not capture the details of improvements made as a result of complaints. This is due to the relative infancy of the department’s complaints management process. This deficiency will be addressed as complaints management processes mature and during the formal rollout of the updated complaints management framework.

The department will launch and implement a customer complaints management framework in early August 2016. The framework was developed to ensure that customers who have concerns about a possible service failure are heard and responded to appropriately.

The data captured will be used to improve the department’s products and services for our customers.

To ensure consistent implementation of the framework, service staff within DNRM will receive specialist complaint handling training through the Office of the Queensland Ombudsman.

Service charter

A service charter is recognised as a critical element of an organisation’s service. In 2015–16, the department developed a service charter, which establishes the standards of service our customers and stakeholders can expect in their dealings with DNRM.

The service charter was developed based on international customer service standards and previously obtained feedback from customers and stakeholders captured in customer engagement surveys and other activities. Future reviews and iterations are expected to include consultation with our customers and stakeholders.


The key elements include:

• our vision

• what our customers and stakeholders have told us

• our commitment to customer-focused service design (including delivery), making it easier for our customers to access our services, and ensuring we are helpful and make clear and transparent decisions

• a mechanism for capturing complaints, compliments and feedback, and a privacy statement.


a. Wellness and injury rates of our people

b. On-time delivery

c. Performance and development agreements in place for our people

d. Working for Queensland survey

e. Workforce profile

f. 1 Enterprise (ICT) project implementation

g. Active consultation for policy development and service improvement

* These are new measures and baseline data is being established.

Other whole-of-government plans and specific initiatives

Great Artesian Basin Sustainability Initiative

The Great Artesian Basin Sustainability Initiative Phase 4 is a national program seeking to address declining pressure in the Great Artesian Basin through targeted government financial assistance. Under the initiative, the Queensland and Australian governments provide matching funding to landholders for the rehabilitation of eligible uncontrolled bores and the replacement of eligible bore drains with piped reticulation systems.

In 2015–16, $3.1 million of on-ground work was delivered, with 10 water-wasting, uncontrolled bores rehabilitated and 33 kilometres of inefficient, land-degrading bore drains replaced with piping. This work has delivered an estimated flow saving of 1744 megalitres per annum for the basin. The Queensland Government provided $1.2 million, with matching funding from the Australian Government and the remainder contributed by landholders.

At 30 June 2016 under the Phase 4 initiative and its predecessor programs, 686 uncontrolled bores have been rehabilitated, 14 090 kilometres of bore drains have been replaced with piping and an estimated flow saving of 200 972 megalitres per annum has been realised for the basin.

The department, in consultation with the Australian Government, is currently assessing new landholder submissions for government financial assistance in 2016–17.

Great Barrier Reef protection programs

The department managed $14.9 million of state funds for Great Barrier Reef protection programs in the 2015–16 financial year. The funded projects were delivered by regional NRM bodies and state agencies.

The department contributed more than $6 million through the Regional NRM Investment Program over 2015–16. This funding contributed to the Paddock to Reef Monitoring and Modelling Program, through delivery of water quality monitoring and modelling projects, and additional investment in strategic, regionally based reef-related projects.


Six regional NRM bodies—Burnett Mary Regional Group, Fitzroy Basin Association, Reef Catchments, North Queensland Dry Tropics, Cape York NRM and Terrain—support both the Paddock to Reef program and the Reef 2050 long-term sustainability plan to improve the quality of water entering the reef lagoon.

The Water Legislation Amendment Bill 2015, which was introduced by Minister Lynham in November 2015, aims to deliver on the Queensland Government’s policy and commitments for saving the Great Barrier Reef by repealing specific uncommenced provisions of the Water Reform and Other Legislation Amendment Act 2014. The Bill includes provisions to explicitly reinstate ecologically sustainable development principles to the Water Act 2000 and removes water development option provisions in their entirety. The Bill is currently before Queensland Parliament for consideration.

Murray–Darling Basin initiatives

The department continues to deliver on the commitments identified in the National partnership for implementing water reform in the Murray–Darling Basin between the Australian Government and the basin states. The reforms are in the national interest and will support a healthy working river system, strong communities and sustainable food and fibre production, while providing certainty for affected communities and water users. In February 2014, the agreement was signed, providing a total of $13.2 million for Queensland over seven years.

During the year, the department:

• completed the second generation water resource plan, and amended the resource operations plan for the Warrego, Paroo, Nebine and Bulloo catchments and submitted it to the federal Minister for accreditation under the Basin Plan 2012

• delivered the annual environmental watering priorities report, which specifies watering priorities for environmental assets and ecosystem functions in the Queensland Murray–Darling Basin in accordance with the principles and method included in the Basin Plan

• submitted two statements of assurance to the Murray–Darling Basin Authority and Australian Government confirming that Queensland had met its obligations under the National partnership for implementing water reform in the Murray–Darling Basin and the Murray–Darling Basin Plan 2012: implementation agreement.

A key activity over the year for the department involved working with the Murray–Darling Basin Authority, Australian Government and New South Wales on the Northern Basin Review, which aims to improve knowledge and understanding of the science and the social and economic impacts of the sustainable diversion limits in the northern basin. The department has provided considerable input to the review, which is due to be finalised by the Murray–Darling Basin Authority in 2016–17.

Murray–Darling Basin Regional Economic Diversification Program

The Basin Regional Economic Diversification Program aims to deliver economic development projects in regional communities likely to be impacted by a reduction in water available for agriculture. Under the program, the Australian Government allocated up to $15.055 million for Queensland to undertake eight projects in the Queensland Murray–Darling Basin, including projects to improve regional investment, irrigated agriculture, high-value horticulture development, support for the transitioning workforce, supply chain development in the resources sector, and tourism in the Western Downs and Goondiwindi regions.

The department established agreements to deliver the eight projects with three other Queensland Government agencies—the Department of Agriculture and Fisheries, the Department of Education and Training, and the Department of State Development.

The departments commenced the projects in early 2015 with a number of activities, including community consultation, funding rounds, feasibility studies and industry networking. The department paid approximately $1.8 million to the other agencies to deliver eight projects this financial year. The department expects all projects to be completed in the 2016–17 financial year.


National Framework for Compliance and Enforcement Systems for Water Resource Management

This project was a five-year, Australian Government–funded project that was finalised on 30 June 2016. Funding of $10.471 million was provided to Queensland over a period of five years, from 2011 to 2016.

It delivered proactive education and awareness activities and monitored compliance with water usage entitlements. In 2015–16, the project monitored 1660 properties with water entitlements—far exceeding the target of 1309.

In addition, the project led to the development and implementation of best practice tools that assist with the monitoring, compliance and enforcement of water matters, including the introduction of mobile technology in the field. Education programs have improved water resource management and increased the levels of compliance with water legislation within the regulated community.

Other outcomes of this project included the delivery of a comprehensive report detailing the drivers of, and barriers to, noncompliance with water resource legislation. The project also developed a risk management framework for all Queensland water catchments and resources. Risk assessments were developed in accordance with the framework, which helped identify the catchments needing on-ground activities.

Water management partnership agreement

The Healthy HeadWaters Water Use Efficiency project is a key component of the federally funded water recovery activities under the implementation of the Murray–Darling Basin Plan 2012. The department manages this project, which offers funding for on-farm irrigation infrastructure improvements. Queensland Murray–Darling Basin irrigators retain up to half of the water saved by the improvements, returning the remainder to the environment.

The department undertook two funding rounds in 2015–16, with applications being accepted at the end of each month. Round nine received nine applications proposing total water savings of 9.2 gigalitres, approved for funding of $25 million. Round 10 closed on 30 June 2016.

The department and the Australian Government continued to negotiate a number of changes to the project, including expanding eligibility to include certain Condamine River and Lower Warrego water entitlement holders. These changes were intended to make the project more accessible to the industry by including more water products, ultimately enabling approved applicants to start their projects sooner than under the previous six-monthly application periods.

Over the life of the project, approved applicants have offered 26.1 gigalitres of water to the environment, out of 42.9 gigalitres total water savings realised through infrastructure improvements. So far, the department has provided funding of $61.2 million to the Australian Government for the construction of irrigation infrastructure. During the 2016–17 financial year, the department paid irrigators approximately $17.8 million to undertake projects, including water storage upgrades, conversion to overhead watering and development of bankless channel fields.

Seamless National Economy—national electronic conveyancing intergovernmental agreement

From December 2015, the Titles Registry, in conjunction with the Office of State Revenue and Property Exchange Australia Ltd (PEXA), expanded the scope of transactions available through electronic conveyancing to include a range of land transfers.

Electronic conveyancing has been available for a limited range of transactions since 2013 and provides a single national online hub through which conveyancing documents can be digitally prepared, signed, lodged and, in most cases, automatically registered with the Titles Registry. The expansion of scope to include transfers of land significantly expanded the utility of electronic conveyancing by permitting financial settlement and exchange of funds to occur electronically.


The Queensland plan

The department’s policies, programs and services align with the Queensland Government response to The Queensland plan. The government response supports the government’s objectives for the community and identifies the priorities and key initiatives that will contribute towards implementing the vision of Queenslanders.

The department’s activities contributed to all four of the Queensland Government’s objectives for the community. As an agency committed to the sustainable management and use of natural resources, the department supported the creation of jobs and a diverse economy by enabling projects that contribute to responsible development and economic growth in the state. Additionally, the department increased the range of government data published as datasets and through our Queensland Globe platform, supporting increased economic diversity through development of the state’s digital economy.

As an integrated natural resources agency, the department worked cooperatively and collaboratively with other government agencies on initiatives to protect the environment, such as administering the vegetation management framework; providing an environmentally sustainable water resource management framework that includes water monitoring, licensing, management and planning; and partnering with the Office of the Great Barrier Reef to progress delivery of the government’s commitments for the reef.

The department supported the objective of building safe, caring and connected communities by delivering services throughout Queensland through its extensive regional office network. Specific activities supporting this objective included the provision of a wide range of spatial data, such as flood mapping and location addresses that inform people about their communities. As the lead Queensland Government agency for native title, the department facilitated consent determinations enabling traditional owners to use and enjoy their traditional lands. The State Valuation Service annual valuations are used by local governments when calculating the rates that support community activities and building programs.

The department supported the delivery of quality frontline services by pursuing our vision of customer-focused design and delivery of services. We engaged with customers to find out more about their needs and progressed projects to modernise our service channels and tailor our offerings to better respond to customers’ needs.

Looking forward: 2016–17

In accordance with DNRM’s 2016–17 Service Delivery Statements, the department’s key priorities are to:

• manage land within our control and responsibly allocate state land assets

• support traditional owners’ rights and interests in land and land management

• sustainably manage native vegetation

• sustainably manage Queensland’s water resources

• ensure an effective contemporary regulatory framework for safety and health in the resources sector

• support the minerals and energy resources industry

• maintain public confidence in the land valuation system and ensure security of property rights and interests

• maintain our world-class spatial and information solutions for Queensland.

The department is subject to changes in the external environment, which bring new challenges. Changing expectations about the protection and allocation of our natural resources are leading to conflicting aspirations in the community and decision-making challenges in the department.

The department has two service areas that were identified in the 2016–17 Service Delivery Statements—Natural Resource Management Services and Mining and Energy Resources Services.


The Natural Resource Management Services area will:

• amend Queensland’s native vegetation management framework to protect the Great Barrier Reef and reduce carbon emissions

• develop a new legislative management framework for managing travelling stock and grazing on Queensland’s stock route and roads network

• continue water planning activities

• set up a water allocation and management framework for Cape York

• establish secure, sustainable water entitlements in the Upper Burdekin River catchments through a targeted water plan amendment

• implement the Basin Plan 2012 for Queensland’s Murray–Darling Basin in the Moonie, Condamine–Balonne and Border Rivers catchments

• replace the Great Artesian Basin water planning instruments

• initiate release of unallocated water in the Fitzroy Basin to provide for regional economic growth in the agricultural sector

• grant water entitlements as a result of the Gulf, Great Artesian Basin and Whitsunday releases of unallocated water

• implement reforms and priority business improvements for water monitoring, licensing, management and planning to deliver better client services

• continue to enhance functionality to enable higher volumes of title transactions to be conducted online through electronic conveyancing

• release Queensland Globe 2.0

• release Qimagery, making approximately 800 000 historical aerial photographs available to the public in a simple online application, allowing users to discover, browse and download the state’s imagery.

The Mining and Energy Resources Services area will:

• continue to support the discovery of new minerals and energy resources through the Geological Survey of Queensland

• continue the development of an innovative resource tenure framework, common to the life cycle of resource development for all commodity types, that will provide industry with more flexible settings to underpin investment and the realisation of capital expenditure and generation of jobs

• appoint a Resources Investment Commissioner, tasked with developing new domestic and international business partnerships and alliances across government, industry and key client groups to identify, develop and deliver investment opportunities

• promote Queensland as a global resource destination of choice, in conjunction with the Resources Investment Commissioner, encouraging exploration and investment in the resource sector and actively supporting industry development

• develop an economic blueprint for the North-West Queensland Minerals Province

• develop a gas supply and demand action plan to ensure the long-term security of Queensland’s liquefied natural gas (LNG) supplies

• reduce the number of registered abandoned mines through on-ground assessment and close out of public safety risks

• appoint a dedicated Mine Safety and Health Commissioner


• engage with stakeholders to reduce risk in the mining, explosives and petroleum and gas industries

• consult with stakeholders to provide innovative solutions to reduce mine safety and health risks

• complete the review of the respiratory component of the Coal Mine Workers’ Health Scheme for managing the risk of coalmine workers contracting lung disease as a result of occupational exposure to respirable coalmine dust

• engage with the Council of Australian Governments to harmonise explosives laws and undertake Queensland legislative amendments to improve explosives security and safety.


Financial performance

Financial overview

The department recorded an operating deficit of $2.792 million for the 2015–16 financial year. The result was primarily driven by non-cash items, including increased depreciation of $1.378 million and a revaluation decrement of $1.835 million for land assets. Excluding these items, the operating surplus was $0.421 million. Table 2 below summarises the financial results of the controlled operations. For a more comprehensive set of financial statements covering all aspects of the department’s activities, see page 43.

Table 2 Summary of financial results of controlled operations

For the financial year

Department of Natural Resources and Mines2016

$’0002015

$’000

Income 456 270 443 426

Expenses 459 062 446 636

Operating surplus/(deficit) (2 792) (3 210)

Assets 289 734 270 664

Liabilities 57 328 41 888

Net assets 232 406 228 775

Capital expenditure 14 786 16 091

Income

The department’s income of $456.27 million included appropriation revenue for services from government of $329.365 million; user charges, fees and fines of $119.101 million; grants and other contributions of $6.619 million; and other revenue of $1.185 million. The majority of user charges, fees and fines revenue is earned through levies and fees on safety and health and petroleum and gas services provided to industry, cadastral and title search fees, storage of explosives, valuation services and other fee-for-service activities relating to safety in mines testing.

72.2% Appropriation revenue

26.1% User charges and fees

1.5% Grants and contributions

0.3% Other revenue

Figure 1 : Income earned by the department in 2015–16


Expenses

The primary expenses in 2015–16 were employee costs, supplies and services, grants and subsidies, and depreciation and amortisation of assets.

Employee costs totalling $242.083 million included salaries and wages, annual and long service leave entitlements, superannuation contributions and other employee-related expenses. Employee costs are higher in 2015–16 due to the effect of enterprise bargaining agreements.

Supplies and services totalled $147.064 million, with the major expenses including payments to consultants and contractors ($32.085 million), ICT costs ($45.085 million) and accommodation costs ($31.987 million, including operating leases). Contractor spend was predominately incurred for specialist/ technical skills in programs such as the Future Resources Program, One Enterprise Program (1EP) and the Murray–Darling Basin program, and for the Office of Groundwater Impact Assessment. Supplies and services overall increased in 2015–16 primarily due to a higher ICT costs ($8.769 million), partially offset by a decrease in consultants and contractors ($7.051 million).

Grants and subsidies totalling $41.731 million included payments to regional management bodies, including for activities relating to the protection, improvement and restoration of waterways and rangelands, and rural water-use efficiency programs.

A revaluation decrement of $1.835 million was recognised for land assets held by the department in 2015–16. The revaluation decrement for land was based on independent valuations of individual land parcels held by the department.

52.7% Employee expenses

32.0% Supplies and services

9.1%Grants and subsidies

0.4% Revaluation decrement

2.0% Other expenses

3.7% Depreciation and amortisation

Financial position

The net asset position reported in the financial statements shows the net worth of the department at 30 June 2016 to be $232.406 million. This consisted mainly of the assets the department held of $289.734 million, which includes $96.405 million in operational land and buildings to provide departmental services, $34.736 million in water network infrastructure assets and $37.285 million in software assets. In addition, the department had cash holdings of $70.380 million, receivables of $22.659 million and other assets worth $2.398 million. These were offset by liabilities of $57.328 million, which mainly consist of payables, accrued employee benefits and unearned revenue balances.

Figure 2 : Expenditure incurred by the department in 2015–16


Administered activities

The department administers, but does not control, certain resources on behalf of the government. In doing so, it is responsible and accountable for administering related transactions and items, but does not have the discretion to deploy these resources for the achievement of the department’s activities.

Major administered revenue included:

• fees from mineral and petroleum rentals, including annual rent collected on various permits, authorities, licences and leases

• resource tenure application processing fees

• titles lodgement revenue, including lodgement of documents to secure ownership and other interests in freehold and state leasehold land, water allocations and other resources, and to record related information

• revenue from state land, including sales of unallocated state land, issuing easement access, and annual rentals and instalments for state land leases, licences and permits.

In 2015–16, the administered surplus of $5.348 billion was driven by non-cash transactions. This included a revaluation increment of $5.105 billion for land under roads and land transferred from non–Queensland Government entities for public use at no charge, which mainly consists of land opened as roads and land dedicated as reserves of $298.823 million. This was partially offset by $51.001 million for land transfers outwards for land no longer required following the closure of a road and transferred to non–Queensland Government entities.

Administered net assets at 30 June 2016 were $62.289 billion. This is predominately as result of state land balances of $62.258 billion as per Table 3 below.

Table 3 Administered land

Administered land2016 $’000

2015 $’000

Land under roads 52 265 108 47 185 592

Reserves 7 310 456 7 017 239

Leasehold land 1 531 558 1 501 139

Unallocated state land 963 521 1 011 635

Other 187 121 195 618

Total 62 257 764 56 911 223

Safety and health levy

The safety and health levy funds the safety and health services provided by the Queensland Government to the mining, quarrying, explosives and fireworks industries. It is levied based on the number of employees in the mining and extractive industries (see Table 4).


Table 4 Safety and health levy

Safety and health levy 2016 $’000

2015 $’000

Income

Taxes, fees and fines 40 084 40 816

Appropriation (levy collected from previous years) – 4 414

Other revenue 324 398

Total income 40 408 45 628

Expenses

Employee expenses 17 645 17 360

Supplies and services 22 638 22 943

Grants and subsidies 27 154

Depreciation and amortisation 73 29

Losses on sale – 216

Other expenses 25 12

Total expenses 40 408 40 715

Operating surplus/(deficit)* – 4 913

* Utilised for capital expenditure.


Governance—management and structure

DNRM board

The DNRM board was created on 1 July 2014 and replaced the previous Executive Management Group.

Role

The board’s role is similar to boards that govern corporations. Its job is to direct and control the department so it can deliver on its priorities.

The members of the board are collectively responsible for the strategic operation, performance and culture of the department as a whole. They are appointed to further the interests of the whole department and ‘speak as one voice’ on board matters.

Membership

In 2015–16, the board membership comprised the following DNRM executives:

• Director-General (chair)

• Deputy Director-General, Natural Resources

• Deputy Director-General, Policy and Program Support

• Deputy Director-General, Minerals and Energy Resources

• Deputy Director-General, Business and Corporate Partnership

• Director, Office of the Director-General (secretariat).

Other officers were invited to attend meetings as required.

Profiles

James Purtill, Director-General

James is the Director-General of DNRM. He was appointed in July 2015.

He was formerly the Director-General of the Department of Aboriginal and Torres Strait Islander Partnerships, a role he held from 2013.

His private sector experience includes senior executive positions with multi-national company Santos, and he has been responsible for strategic project management services in the resources and development sectors.

James has consulted to industry and government on organisational design, and was Managing Director of environmental rehabilitation services company Landroc Pty Ltd.

He is a former Director-General of the Environmental Protection Agency (including the Queensland Parks and Wildlife Service) and was the Queensland Public Service Commissioner for two years from 2006.

James holds a Bachelor of Science (with honours) from the University of New South Wales, a Master of Business Administration from the University of Queensland and is a graduate of the Australian Institute of Company Directors.


Alan Feely, Deputy Director-General, Natural Resources

Alan has over 20 years’ experience with the New South Wales and Queensland governments and, more recently, the mining sector.

He has held a number of senior positions across government, generally in the regulatory, environment and natural resources sectors.

Those positions included Regional Director positions in New South Wales and Queensland, as well as a seven-year period as Executive Director of the Queensland Parks and Wildlife Service.

More recently he was heavily involved in the oil and gas sector, working for Santos on its Queensland Gladstone LNG and New South Wales CSG projects, prior to taking up a Deputy Director-General position promoting Indigenous economic development opportunities in Queensland.

Sue Ryan, Deputy Director-General, Policy and Program Support

As Deputy Director-General, Policy and Program Support, Sue is responsible for the provision of expert advice on policy matters regarding land, water, mines and native title.

Sue is currently the chair of the DNRM Audit and Risk Committee and the chair of the DNRM ICT Committee.

Sue holds a Bachelor of Business and has 24 years’ experience in the Queensland public service, holding a number of senior government roles during this time. Over the years, Sue has served on a number of statutory authority boards (Queensland Rural Adjustment Authority, Safefood Queensland and Australian Agriculture College Corporation) and has served as a state government representative on a number of federal committees.

Rachael Cronin, Deputy Director-General, Minerals and Energy Resources

Rachael commenced this role in January 2016, and provides strategic leadership and management to the divisions within Minerals and Energy Resources. She is responsible for the department’s delivery of a responsible resources and energy sector that is valued and a valuable contributor to Queensland.

Prior to this, Rachael led the former Service Delivery division within the department, providing delivery of mining, water, land, vegetation and property services (including titles, valuations and spatial data).

Rachael has a broad range of experience in both the public and private sectors. In her current and prior roles in government, Rachael has been actively driving regulatory and business process reform for the mining and petroleum sector. She has been instrumental in increasing the availability of online services within the department.

Rachael’s roles in the private sector predominantly focused on business improvement. Her experience ranges from operational management within a development unit in an underground coalmine in Central Queensland to magazine production and print management nationally and abroad (United Kingdom and Canada).

Brenda Parker, Deputy Director-General, Business and Corporate Partnership

In July 2013, Brenda commenced as Deputy Director-General, Business and Corporate Partnership.

Brenda is responsible for leading and managing effective and efficient corporate services within an evolving service delivery environment across multiple agencies.

Prior to this role, Brenda led the Corporate Services Renewal Taskforce at the Public Service Commission, which was responsible for identifying and implementing recommendations to improve the manner in which corporate services are delivered across all government agencies.

Brenda has over 20 years’ experience in the public sector, including key leadership roles in the provision of corporate services, and has a wealth of experience and professional qualifications in human resources, workplace health and safety, rehabilitation and risk management.


Sub-committees

The role of the sub-committees is to advise and make recommendations to the board and to undertake specific board-directed tasks.

Like the board, committee members are each responsible for bringing a whole-of-department perspective to the committee and for making recommendations in the interests of the agency as a whole.

Each committee member is expected to be visible to the department as a representative of their committee. They are a link between the committee and staff from any area or team of the department, and a champion for innovation, good ideas and reform.

Four committees support the work of the board—the committees are each chaired by a Deputy Director-General:

1. Customer and Stakeholder Subcommittee

2. Information and Communications Technology (ICT) Committee

3. Business Capability Committee

4. Catalyst (People and Innovation) Committee.

Other boards and committees• Program boards

• Work Health and Safety Committee

• Business and Corporate Partnership Board


Organisational structure

Figure 3 : DNRM’s organisational structure as at 30 June 2016

Director-GeneralJames Purtill

Office of the Director-General Commissioner Mine Safety and Health

Kate du Preez

NATURAL RESOURCESDeputy Director-General

Alan Feely

North RegionExecutive DirectorAndrew Buckley

Central RegionExecutive Director

Darren Moor

South RegionExecutive Director

Wally Kearnan

Operations SupportExecutive Director

Mandy Downes

State Valuation ServiceValuer-General

Neil Bray

Titles Registry Registrar of Titles

Registrar of Water Allocations Executive Director

Liz Dann

Land and Spatial Information

Executive DirectorSteven Jacoby

POLICY AND PROGRAM SUPPORT

Deputy Director-GeneralSue Ryan

Strategic PolicyExecutive Director

VacantA/Peter Burton

Land and Mines Policy Executive Director

Bernadette DitchfieldA/Lyall Hinrichsen

Water PolicyExecutive Director

Lyall HinrichsenA/Leanne Barbeler

Business Strategy and Performance

Executive DirectorNeil Chapman

ATSILSExecutive Director

Judith JensenA/Graham Nicholas

Tenure Reform Taskforce Executive Director

VacantA/Bernadette McNevin

MINERALS AND ENERGY RESOURCES

Deputy Director-GeneralRachael Cronin

Mine Safety and HealthChief Mine Safety and Health

OfficerPaul HarrisonA/Mark Stone

Statewide OperationsExecutive Director

Grahame Wise

SimtarsExecutive DirectorNicolai Ahlstrand

Geological Survey of Queensland

Chief Government GeologistTony Knight

CSG Compliance UnitExecutive Director

Bill Date

Office of Groundwater Impact Assessment

General ManagerRandall Cox

A/Keith Phillipson

Mining and Petroleum Operations

Executive DirectorVacant

A/Grahame Wise

Resource and Investment Commissioner *Todd Harrington

* Dual reporting relationship with the Department of State

Development

BUSINESS AND CORPORATE PARTNERSHIP

Deputy Director-GeneralBrenda Parker

Human Resources and CommunicationsExecutive Director

Celia Venables

Finance and Corporate Operations

Executive Director and Chief Finance Officer

Katrina Platt

In-House Legal and Business Planning and

AchievementChief Counsel and Executive

DirectorSinead McCarthy

Ministerial and Executive ServicesDirector

Martin Reside

RTI/Privacy/ProcurementExecutive Director

Ken Davis

Head of Internal AuditSimon Griffiths

ICT and Records Management

Chief Information OfficerTony Grant


Natural Resources

Natural Resources is the delivery arm of the department, providing customer-focused services and practical solutions to assist customers to achieve their business goals. Natural Resources has a strong regional presence and works closely with Policy and Program Support to achieve the department’s key reform initiatives. Natural Resources is made up of four business units (Operations Support, State Valuation Service, Titles Registry and Land and Spatial Information) and three regions (South, Central and North).

Policy and Program Support

Policy and Program Support delivers strategic policy, planning, assessment and compliance services in the department. As part of this service, it is responsible for the provision of expert advice on policy matters regarding land, water, minerals, mines and native title. In addition, Policy and Program Support plays a pivotal role in ensuring that the CSG industry complies with current laws and policies, and also provides an integrated, whole-of-government approach to managing CSG complaints and enquiries. Policy and Program Support also supports the continuing development and implementation of the department’s strategic plan, supports continuous business improvement and is charged with implementing program management.

Minerals and Energy Resources

Minerals and Energy Resources provides mines, explosives and petroleum and gas safety and health regulatory services throughout Queensland. In addition, the centre of mining research and technical excellence at the Safety in Mines Testing and Research Station (SIMTARS) provides mining research, training and consultancy services in mine safety and health—throughout the state, across Australia and internationally. The Abandoned Mines Unit manages the work of the statewide Abandoned Mine Lands Program to address issues, reduce risks to public safety and progress remediation on abandoned mine sites.

Business and Corporate Partnership

Business and Corporate Partnership provides corporate services support to the department, covering human resource management, finance management, communications, accommodation, web and creative services, ministerial and executive services, and legal services. It is also responsible for the corporate planning, reporting and risk and performance management functions of the department.

Business and Corporate Partnership is part of a three-hub partnership model embedded in DNRM, the Department of Agriculture and Fisheries and the Department of Environment and Heritage Protection. The group supports partnership agencies through the provision of the above services.

Public Sector Ethics Act 1994

In 2015–16, the department continued to provide comprehensive online training on the code of conduct and the ethics principles of the Public Sector Ethics Act for inductees. Training was also delivered to managers and supervisors surrounding implementation of the sector-wide Capability and Performance Excellence (CaPE) framework, providing mechanisms that support early intervention and local resolution of unsatisfactory conduct and performance.

The code of conduct remained accessible on the department’s intranet for staff completion on an annual basis, together with supporting policies and resources that form the basis for human resource management and decision-making. Clear roles and responsibilities to ensure accountability and transparency were further incorporated throughout the department’s strategic plan, with a particular focus on the department’s performance through its governance, people and service delivery. Role clarification was further addressed through performance and development discussions and agreements.

Further guidance on the code of conduct and everyday conduct matters was provided by the department’s Human Resources team.


Governance—risk management and accountability

Risk management

Effective risk management in the department ensures we can make informed decisions, meet our compliance obligations and ensure the safety and wellbeing of our people and the community. The department recognises that identifying and responding to key departmental risks is an important pillar of good corporate governance.

During 2015–16, the department adopted an enterprise risk approach that focused on achieving the department’s strategic objectives and helping to ensure projects and services were consistently delivered. An Enterprise Risk Management Framework was implemented, guided by a policy and a procedure, The policy sets out the objectives of the approach and key accountabilities, while the procedure details the methodology and provides tools for analysing risk within the department.

External scrutiny

Queensland Government agencies can be reviewed or audited by a number of different authorities and bodies, including the Queensland Audit Office (QAO), parliamentary committees, the Crime and Corruption Commission, the Queensland Ombudsman, the Information Commissioner Queensland and the Office of the State Coroner.

Queensland Audit Office

QAO report 1 to Parliament, Results of audit: internal control systems 2014–15—report 1: 2015–16, evaluated systems of financial control with specific emphasis on the effectiveness of internal financial management reporting, as well as disaster recovery planning in relation to computer systems after disruptive events such as floods and power outages. The department has taken a number of actions to implement the recommendations, including:

• updating and approving disaster recovery plans based on business impact

• monitoring periodic reports on disaster recovery testing

• establishing mechanisms to periodically report on infrastructure disaster recovery testing.

QAO report 13 to Parliament, Cloud computing—report 13: 2015–16, examined how well departments are adopting the Queensland cloud computing strategy in modernising their ICT assets and services to deliver business value while managing risks.

The department assessed the recommendations made by QAO for all departments and, during 2015–16, the department commenced work to improve cloud computing strategies.

QAO report 16, Flood resilience of river catchments—report 16: 2015–16, was tabled in Parliament on 19 April 2016. The department provided assistance and information to QAO in relation to their audit, which focused on the Bremer, Lockyer, Mid Brisbane and Upper Brisbane river catchments.

The information provided relates to the levee bank regulatory framework, vegetation management arrangements, the Regional Natural Resource Management Investment Program, river improvement trusts and the Brisbane River catchment flood study (hydrology and hydraulics).


Parliamentary committees

In 2015–16, the Agriculture and Environment Parliamentary Committee sought advice from the department on the following Bill:

• The Vegetation Management Reinstatement and Other Legislation Amendment Bill 2016 was introduced into Parliament on 17 March 2016. The Bill was considered by the Agriculture and Environment Parliamentary Committee. The committee accepted public submissions and undertook regional hearings on the Bill. The committee reported back to Parliament on 30 June 2016.

The Infrastructure, Planning and Natural Resources Committee sought advice from the department on the following Bills:

• The Mineral and Other Legislation Amendment Bill 2016 was introduced into Parliament on 23 February 2016. The Bill was subsequently referred to the Infrastructure, Planning and Natural Resources Committee. On 10 May 2016, the committee tabled its report (no. 26) in relation to the Bill. The committee made seven recommendations (one being that the Bill be passed) and raised three points for clarification. The Bill was debated and passed by Parliament on 24 May 2016. The Mineral and Other Legislation Amendment Act 2016 commenced on 14 June 2016, amending the Mineral and Energy Resources (Common Provisions) Act 2014.

• The Water Legislation Amendment Bill 2015 was referred to the Infrastructure, Planning and Natural Resources Parliamentary Committee for review following the Bill’s introduction on 10 November 2015. The committee made only one recommendation in its report tabled in Parliament on 1 March 2016—for the department to continue to investigate alternatives for securing water for large-scale projects while taking into account the impact on communities. As at 30 June 2016, the Bill had yet to be debated in Parliament.

The Grantham Floods Commission of Inquiry was established by the Queensland Government to investigate the 2011 flooding of Lockyer Creek between Helidon and Grantham:

• The inquiry looked into the possible role the Grantham quarry played in the flooding. The department provided all available information within its area of responsibility to inform the inquiry. The inquiry report was released on 8 October 2015. It is publicly available on the Grantham Floods Commission of Inquiry website.

Audit and Risk Committee

The Audit and Risk Committee was established in accordance with the Financial and Performance Management Standard 2009. The committee met five times in the period 1 July 2015 to 30 June 2016. The committee observed the terms of its charter having due regard to the Audit committee guidelines: improving accountability and performance, issued by Queensland Treasury (June 2012).

The committee is directly responsible to the Director-General and, in discharging its responsibilities, the committee has the authority to:

• conduct or authorise investigations into matters within its scope of responsibility

• access information, records and personnel of the department for such purpose

• request the attendance of any employee, including executive staff, at committee meetings

• conduct meetings with the department’s internal auditors and external auditors, as necessary

• seek advice from external parties, as necessary.

The committee acts as a forum for dialogue between the Director-General, senior management, Internal Audit and QAO.

The functions and role of the committee do not diminish the statutory and regulatory duties and responsibilities of the Director-General, nor do they detract from management’s responsibilities in relation to corporate governance, internal control, fraud prevention and risk management.

The committee provided governance oversight and advice to the Director-General in relation to all aspects of its responsibilities.


The committee’s membership is listed below:

• James Purtill, Director-General, DNRM (member)

• Sue Ryan, Deputy Director-General, Policy and Program Support (chair)

• Debbie Best, independent external member

• Graham Carpenter, independent external member.

Committee members were provided with recommendations arising from QAO reports to Parliament that relate to the department. During 2015–16, nine recommendations were actioned and closed. Six recommendations remain open as at 30 June 2016.

The committee’s two external members received a combined total remuneration of $5200 (excluding GST) for their role on the committee during 2015–16.

Internal audit

The formation of the Queensland Government Internal Audit Service (QGIAS) was approved on 12 June 2012. QGIAS is a business unit within the Department of Environment and Heritage Protection, and provides internal audit services to four other Queensland Government agencies as part of a co-sourced corporate services arrangement.

The role, operating environment and operating parameters of QGIAS are established in the 2015 internal audit charter (which has due regard to professional standards) and the Audit committee guidelines: improving accountability and performance issued by Queensland Treasury (June 2012).

Purpose

QGIAS provides independent assurance and advice to the Director-General, senior management and the Audit and Risk Committee. It enhances the department’s corporate governance environment through an objective, systematic approach to evaluating the effectiveness and efficiency of corporate governance processes, internal controls, risk assessment and management practices. This is in keeping with the role and responsibilities detailed in the Financial Accountability Act 2009.

QGIAS reports to the Audit and Risk Committee at scheduled meetings four times per year. Its function is independent of management and external auditors.

QGIAS activities also include financial, compliance and operational reviews; information system and data integrity reviews; and special review assignments as requested by management.

In 2015–16, QGIAS:

• discharged the responsibilities established in the 2015 internal audit charter by executing the internal audit program of work prepared as a result of risk assessments, materiality and contractual and statutory obligations

• provided reports on results of internal audits and assurance reviews undertaken to the Audit and Risk Committee and the Director-General

• monitored and reported on the implementation status of internal audit and external audit recommendations to the Audit and Risk Committee (management is responsible for implementation of audit recommendations)

• liaised with QAO to ensure there was no duplication of ‘audit effort’

• supported management by providing advice on corporate governance and related issues, including fraud and corruption prevention programs and risk management


• allocated internal audit resources to those areas considered to present the greatest risk and where the work of internal audit can be valuable in providing positive assurance or identifying opportunities for positive change

• reviewed the departmental annual financial statements and Chief Finance Officer assurance statements prior to them being presented to the Audit and Risk Committee.

Major achievements

QGIAS completed the following reviews under the DNRM Strategic internal audit plan—July 2015 to June 2016:

• administration of the underground water levy

• gas and explosives licensing

• assurance mapping

• Petroleum and Gas Inspectorate’s incident response management

• regional offices

– Beenleigh

– Georgetown

– Emerald

– Rockhampton

– Toowoomba

– Townsville

– Landcentre

• administration of financial assurances

• SAP S4 HANA Finance project—initial health assessment report

• Acquisition of Land Program

• explosive reserve management practices

• regulatory decision-making processes—Land Act 1994

• state land administration processes.

QGIAS commenced the following review under the DNRM Strategic internal audit plan—July 2015 to June 2016:

• grants management—Regional NRM Investment Program 2013–2018.

QGIAS employees are members of professional bodies, including the Institute of Internal Auditors, CPA Australia and the Information Systems Audit and Control Association.

QGIAS considers there are adequate controls in place to minimise the opportunity of fraud or mismanagement in those areas of the department that were subject to internal audit in terms of the program of work approved by the Director-General.


Information systems

The department continues to operate, maintain and develop a range of information systems to support services, initiatives and corporate operations. Highlights and major achievements include the following:

• Several software application enhancements were completed and released. These included enhancements and reference data changes for the electronic Land and Vegetation Administration System and updates to the Land Tenure and Ledger, Queensland Valuation and Sales, and the Water Management System.

• Improvements to Queensland Valuations and Sales included the release of a new broker service that gives landholders online access to property and sales reports, and the implementation of significant changes in functionality to record valuations of properties belonging to Indigenous Local Government Authorities.

• The Property Location Service (PLS) is the department’s application used to validate address information. The department has completed the development of PLS PLUS web services, providing a single new Australia-wide physical and virtual address validation service available for all government departments.

• A review of the management of groundwater data has commenced and will progress over the coming year. This review will seek to streamline processes and rationalise systems.

• The department has initiated a project to implement Queensland Globe 2.0. Queensland Globe is currently based on Google Earth Enterprise server software, which will no longer be supported from February 2017.

• The Client Valuations section within the State Valuation Service undertakes yearly asset valuations of a selection of schools for the Department of Education and Training (DET). DNRM has developed a new service to automate the transfer of school valuation information between DET and the State Valuation Service, reducing the need for future manual interventions and improving the quality of service the department provides to DET.

• The Abandoned Mines Historical Mines system is used by the Abandoned Mines Unit to manage and reduce impacts from abandoned mines. It is a consolidated abandoned mines solution that enables the capture, storage, risk assessment and management of data related to abandoned mines in Queensland.

• The Safety and Health Customer Portal is now available to safety and health levy and fee customers. Customers can view previously submitted information and, in future releases, will be able to view the outcomes of assessments based on information they have submitted. This portal will become a one-stop shop for accessing, completing and submitting all the department’s safety and health–related forms and information.

• The Finance Modernisation project is progressing and will be delivered in August 2016. The project is replacing the existing version of SAP Finance with the modernised financial system SAP S/4 HANA Finance.

• The mobile inspection application, QInspectIT, is now available to petroleum and gas inspectors. The application improves business productivity by reducing desk time, increasing inspection information uniformity and reducing elapsed time between infield inspections and the generation of inspection reports.

• The One Enterprise program is creating a set of capabilities to meet current and future needs of the department. The program has delivered capabilities for Geo Science QLD, a business intelligence/data warehouse solution for MyMinesOnline, and a modernised online notification system for self-accessible codes.

Recordkeeping

The department is operating a recordkeeping strategy to ensure that the department is compliant with the Public Records Act 2002, Public Service Act 1996 and Information standard 40—recordkeeping. Policies are in place for recordkeeping, email management, retention and disposal of records, managing information on shared network drives and information security.

The Recordkeeping Digital Transition Program supports and facilitates the move from the paper to a digital recordkeeping paradigm—Born Digital, Stay Digital. A new Digitisation disposal policy has been approved and is being implemented to support the new digital recordkeeping paradigm.


Records Management is responsible for providing a compliant recordkeeping framework for the department. Increasing numbers of records are being received, captured and managed electronically. Digital delivery of records has been introduced to provide key archival records to regional locations. Recordkeeping considerations are being formally addressed in both the development and decommissioning of business systems.

Electronic Document and Records Management System (eDRMS) training and recordkeeping support has been provided to departmental staff to support the location move to 1 William Street. A comprehensive retention and disposal schedule for water records has been developed and is being reviewed by State Archives prior to approval. New lands and mines schedules have been developed and are being reviewed prior to submission to State Archives for approval.

Time-expired records have been identified for disposal, 443 boxes of hardcopy files have been securely disposed of, and 2403 boxes of permanent hard-copy records have been transferred to Queensland State Archives.


Governance—human resources

Workforce profile

As at 30 June 2016, the department employed 2406 full-time equivalent staff.

Permanent separation rate

The permanent separation rate for the department for 2015–16 was 5.3 per cent.

Workforce planning

During 2015–16, Human Resources partnered with business units to manage our department’s key workforce risks in order to shape our workplace and workforce to deliver against our strategic objectives and commitments. The department ensures risks are identified and opportunities are capitalised by gathering information from a variety of business and workforce channels, including the Working for Queensland Employee Opinion Survey, workforce profiling and planning, strategic planning and operational planning, senior executive workshops and Yammer. Understanding critical risks and opportunities is pivotal to the development of strategies to support and enable our workforce to successfully deliver our services and priorities.

Strategic workforce planning ensures the department has a capable and high-performing workforce that delivers better services to Queenslanders. Integrating the workforce plan into the business, performance and financial planning processes ensures a clear focus on achieving the agency’s objective of ‘great services, great place to work’.

Human resources strategy

Human Resources has developed five three-year strategies designed to build a culture that’s reflective of the five guiding principles within the strategic plan (safety and wellbeing, professional excellence, customer focus, we deliver and respect).

The five key strategies are Safety and Wellbeing, Professional Excellence, Diversity and Inclusion, Managing Performance and Conduct, and Connected and Resilient Workforce.

Safety and Wellbeing strategy

The department is committed to creating a workplace where we keep everyone safe and well. Through our Safety and Wellbeing strategy we aim to:

• raise awareness of safety and wellbeing across the agency

• build our workforce’s capability in safety and wellbeing

• implement a best practice risk management framework and systems.

Through our workforce safety committee structures, we endeavor to lead best practice and continually improve culture, maintain oversight and transparency of business activities and the hazards and risks associated with those activities, and ensure the implementation of consistent and standardised systems, structures and governance.

The department’s Health and Wellbeing program facilitated the delivery of a domestic and family violence awareness program, participation in the Queensland Corporate Games, provision of the flu vaccination program and delivery of mental health and resilience sessions—all in an effort to promote a positive, happy and healthy workforce.


Professional Excellence strategy

Our Professional Excellence strategy has been developed to focus on two critical aspects of a high-performing workforce—capability development and talent management.

The capability development component is linked to our four core capabilities—leadership, management, core and technical. Each core capability has a specific enterprise program designed to achieve capability uplift across the department. Specifically, the leadership component is focused on three levels:

1. self-leadership

2. team leadership

3. business leadership.

To achieve the creation and progression of a leadership cohort with aligned leadership values and behaviours, the department provided initiatives including 360 executive feedback, workshops, executive coaching, mentoring, action learning and experiential learning opportunities.

The department’s leaders play a crucial role in actively supporting individuals and teams by encouraging a culture of empowerment and continuous improvement. This is underpinned by individual performance agreements and development opportunities. The department uses the sector-wide executive performance and development frameworks developed by the Public Service Commission to assist Senior Executive Service officers meet their responsibilities (in line with the government’s reform agenda and departmental commitments). In addition, performance leadership support is provided to managers and supervisors to begin changing the way we manage, recognise and measure performance.

The talent management component of the Professional Excellence strategy identifies our approach to strategic recruitment, engagement and retention, and succession planning. Each of these elements interlink to provide a collective approach to attract, retain and develop our high-performing workforce.

Diversity and Inclusion strategy

Our Diversity and Inclusion strategy contributes to achieving a workplace in which individual differences are respected, diverse skills and knowledge are valued and utilised, opportunities are available for all, engagement with partners and stakeholders is effective, and the voice of the community is represented.

The specific strategies to be implemented will support the government’s commitment to providing opportunities for women, youth, seniors, Aboriginal and Torres Strait Islander people, and people with disabilities.

In addition, the department offers a family-friendly approach that contributes to the maintenance of a diverse, adaptive and high-performing workforce. Employees have access to accrued leave, job sharing, part-time employment, phased retirement and telecommuting arrangements. The department has developed a toolkit to help managers and employees understand and implement available flexible working options, while continuing to deliver quality products and services and maintaining business productivity. A breastfeeding policy and supporting program was implemented to support working mothers.

Managing Performance and Conduct strategy

To attain a workplace culture of respect and a workplace that delivers results, existing resources such as performance and development agreements, code of conduct requirements, and Conduct and Performance Excellence (CaPE) training continue to be reinforced. All employees who commence with the department are required to participate in a comprehensive online and local induction training process to ensure that their obligations and responsibilities as public service employees are articulated and fulfilled. The department has also introduced a face-to-face onboarding event to provide greater clarity of the department’s operations and strategic objectives, and to showcase the varied nature of the department’s work and expertise.


Another integral part of the department’s performance and development approach is the DNRM capability framework and self-assessment tool. These have been designed specifically for the department to ensure we have a common framework that clearly defines consistent language and expected behaviours to complement our guiding principles and align with our overarching strategic objectives.

The department has made further commitment to employee development and performance management, focusing on building respect and enabling visible leadership by introducing an online reward and recognition system—CUDOS. The department is proud to be the first Queensland public sector agency to implement a system of this kind. It provides our staff with the ability to easily recognise the accomplishments and performance of their colleagues, as well as enable management to efficiently reward team and individual performance.

The Managing Performance and Conduct strategy aims to enhance the performance management capability of management and senior executives to empower our people and generate productivity. Linked to the Professional Excellence strategy, the emphasis will be on coaching for performance and educating our leaders on how to best manage disciplinary or performance-related matters.

Connected and Resilient Workforce strategy

Critical to any agency’s productivity is the engagement of its people through effective internal communication, quality relationships in the workplace and feedback from superiors. Our strategies are targeted at creating the optimal conditions in the department for our people to commit and contribute to the department’s objectives and principles. This year, 508 staff across 4 locations attended the inaugural 2016 DNRM Annual Report to Staff event to celebrate the department’s achievements over the past year.

A key strategy to enable the attraction and retention of an inclusive, diverse and capable workforce is driven through the management of strategic recruitment campaigns. These campaigns use innovative online solutions to attract and secure staff for the department’s hard-to-fill roles and for newly identified specialist skills and expertise. The department has increased the uptake of graduates across the department to 11 this year to further ensure an inclusive, diverse and capable workforce.

Working for Queensland Employee Opinion Survey

The department undertook a significant engagement and communication campaign in order to increase employee participation in the annual sector-wide Working for Queensland Employee Opinion Survey and, more importantly, provide meaningful and rich data. The department established staff representative teams within each division to workshop the survey results, identify critical on-the-ground issues in their workplace and empower staff to develop localised action plans to address some of the issues.

Industrial and employee relations

The department has a contemporary Human Resource Management Framework that includes a suite of resources and guidance on employee entitlements and resolving issues that may arise in the workplace. Information is proactively distributed and assistance is provided to managers and employees to ensure employees are receiving their correct entitlements.

Of note is the recent implementation of the State Government Entities Certified Agreement 2015 (the Core Agreement) and the modern award entitled Public Service Officers and Other Employees Award—State 2015, both of which apply to employees up to AO8 classification level.

Ongoing consultative discussions are held with Together Queensland, the Industrial Union of Employees and Professionals Australia through regular formalised meetings of the Agency Consultative Committee. Essentially, the role of the Agency Consultative Committee is to ensure that the department implements and complies with all relevant arrangements under the Industrial Relations Act 1999, the Public Service Act 2008 and the Core Agreement, with particular focus placed on current and emerging industrial issues, workforce strategy and organisational change issues.


Early retirement, redundancy and retrenchment

During the period, four employees received redundancy packages at a cost of $287 053. Employees who did not accept an offer of a redundancy were offered case management for a set period of time, during which reasonable attempts were made to find alternative employment placements.


Open data

The open data initiative is about making Queensland Government data and information more open, transparent and accessible. This will encourage the development of innovative new services and solutions in the private sector.

The department has now released 210 datasets comprising 956 individual data resources in total.

The department has completed a thorough audit of information assets held, associated data and information security classifications. The department is now at a point where all the data that can be published at this time has been published.

The department has a number of information assets that cannot be made available as open data at this time for a range of reasons, such as confidentiality and security (known as closed data).

The department will continue to review information assets annually to identify new datasets for inclusion and to capitalise on opportunities to publish datasets that are currently closed. The department is also working on delivering more of our data to customers as web services or application programming interfaces.

There are three annual reporting requirements for 2015–16 now available through the Queensland Government data website (www.data.qld.gov.au):

1. consultancies

2. overseas travel

3. Queensland language services policy.

Government bodies

The department has relationships with numerous government bodies—entities with decision-making powers established either by an Act of Parliament or by a decision of executive government.

A full list of the government bodies including their functions, achievements and member remuneration is available through the DNRM website (www.dnrm.qld.gov.au).

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Department of Natural Resources and MinesFinancial Statements

For the Year Ended 30 June 2016

TABLE OF CONTENTSFinancial Statements

Statement of Comprehensive Income Statement of Comprehensive Income including Major Departmental Services Page 46Statement of Financial Position Page 47Statement of Assets and Liabilities including Major Departmental Services Page 48Statement of Changes in Equity Page 49Statement of Cash Flows Page 50Administered Statement of Comprehensive Income Page 52Administered Statement of Comprehensive Income including Major Departmental Services Page 53Administered Statement of Financial Position Page 54Administered Statement of Assets and Liabilities including Major Departmental Services Page 55Administered Statement of Changes in Equity Page 56Administered Statement of Cash Flows Page 57

Notes to the Financial Statements

Preparation Information Basis of Financial Statement Preparation Page 59

Section 1How we Operate –Our Departmental Objectives and Activities

A1 Department Objectives Page 60

A2 Major Services Page 60

Section 2Notes about our Financial Performance

B1 Revenue Page 61B1-1 Appropriation Revenue Page 61B1-2 User charges and fees Page 61B1-3 Grants and contributions Page 61

B2 Expenses Page 62B2-1 Employee expenses Page 62B2-2 Supplies and services Page 63B2-3 Grants and subsidies Page 63B2-4 Other expenses Page 63

Section 3Notes about our Financial Position

C1 Cash and cash equivalents Page 64C2 Receivables Page 64

C2-1 Impairment of Receivables Page 65C3 Property, Plant, Equipment and Related Depreciation Page 66

C3-1 Balances and Reconciliation of Carrying Amount Page 66C3-2 Accounting Policies Page 68C3-3 Revaluation of non-current physical assets Page 69

C4 Intangible Assets Page 70C4-1 Balances and Reconciliation of Carrying Amount Page 70C4-2 Accounting Policies Page 71

C5 Payables Page 72C6 Accrued employee benefits Page 72C7 Other current liabilities Page 72C8 Equity Page 73

C8-1 Appropriations recognised in Equity Page 73C8-2 Asset Revaluation Surplus by Asset Class Page 73

Financial statements: 30 June 2016


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TABLE OF CONTENTS (continued)Notes to the Financial Statements (continued)

Section 4What we look after on behalf of whole-of-Government and third parties

D1 Administered Activities Page 74D2 Reconciliation of Payments from Consolidated Fund Page 74D3 Property and other Territorial Revenue Page 74D4 Grants and subsidies Page 74D5 Other expenses Page 75D6 Receivables Page 76

D6-1 Impairment of Receivables Page 76D7 Property, Plant, Equipment and Related Depreciation Page 77

D7-1 Balances and Reconciliation of Carrying Amount Page 77D7-2 Revaluation of non-current physical assets Page 78

D8 Payables Page 79D9 Other current liabilities Page 79D10 Asset Revaluation Surplus by Asset Class Page 80D11 Trust transactions and balances Page 80

Section 5Notes about Risks and Other Accounting Uncertainties

E1 Fair Value Measurement Page 81

E1-1 Level 3 Fair Value Measurement – Significant valuation inputs and impacts Page 82

E2 Financial Risk Disclosures Page 82E2-1 Financial Instruments Categories Page 82E2-2 Financial Risk Management Page 83

E3 Contingencies Page 84E4 Commitments Page 85E5 Events Occurring after the reporting date Page 86E6 Future Impact of Accounting Standards Not Yet Effective Page 87

Section 6Notes about our Performance compared to Budget

F1 Budgetary Reporting Disclosures Page 89

F2 Budget to Actual Comparison – Statement of Comprehensive Income Page 89

F2-1 Explanation of Major Variances – Comprehensive Income Page 90

F3 Budget to Actual Comparison – Statement of Financial Position Page 91

F3-1 Explanation of Major Variances – Financial Position Page 92

F4 Budget to Actual Comparison – Statement of Cash Flows Page 93F4-1 Explanation of Major Variances – Cash Flows Page 94

F5 Budget to Actual Comparison – Administered Statement of Comprehensive Income Page 95

F5-1 Explanation of Major Variances – Administered Comprehensive Income Page 96

F6 Budget to Actual Comparison – Administered Statement of Financial Position Page 97

F6-1 Explanation of Major Variances – Administered Financial Position Page 98

Section 7Other Information

G1 Key Management Personnel Remuneration Page 99G2 Prior year adjustments Page 103

G3 First Year Application of New Accounting Standards or Change in Policy Page 104

G4 Taxation Page 104

Certification Management Certificate Page 105


Department of Natural Resources and Mines Financial Statements for the year ended 30 June 2016

2 of 65



TABLE OF CONTENTS (continued)Notes to the Financial Statements (continued)

Section 4What we look after on behalf of whole-of-Government and third parties

D1 Administered Activities Page 74D2 Reconciliation of Payments from Consolidated Fund Page 74D3 Property and other Territorial Revenue Page 74D4 Grants and subsidies Page 74D5 Other expenses Page 75D6 Receivables Page 76

D6-1 Impairment of Receivables Page 76D7 Property, Plant, Equipment and Related Depreciation Page 77

D7-1 Balances and Reconciliation of Carrying Amount Page 77D7-2 Revaluation of non-current physical assets Page 78

D8 Payables Page 79D9 Other current liabilities Page 79D10 Asset Revaluation Surplus by Asset Class Page 80D11 Trust transactions and balances Page 80

Section 5Notes about Risks and Other Accounting Uncertainties

E1 Fair Value Measurement Page 81

E1-1 Level 3 Fair Value Measurement – Significant valuation inputs and impacts Page 82

E2 Financial Risk Disclosures Page 82E2-1 Financial Instruments Categories Page 82E2-2 Financial Risk Management Page 83

E3 Contingencies Page 84E4 Commitments Page 85E5 Events Occurring after the reporting date Page 86E6 Future Impact of Accounting Standards Not Yet Effective Page 87

Section 6Notes about our Performance compared to Budget

F1 Budgetary Reporting Disclosures Page 89

F2 Budget to Actual Comparison – Statement of Comprehensive Income Page 89

F2-1 Explanation of Major Variances – Comprehensive Income Page 90

F3 Budget to Actual Comparison – Statement of Financial Position Page 91

F3-1 Explanation of Major Variances – Financial Position Page 92

F4 Budget to Actual Comparison – Statement of Cash Flows Page 93F4-1 Explanation of Major Variances – Cash Flows Page 94

F5 Budget to Actual Comparison – Administered Statement of Comprehensive Income Page 95

F5-1 Explanation of Major Variances – Administered Comprehensive Income Page 96

F6 Budget to Actual Comparison – Administered Statement of Financial Position Page 97

F6-1 Explanation of Major Variances – Administered Financial Position Page 98

Section 7Other Information

G1 Key Management Personnel Remuneration Page 99G2 Prior year adjustments Page 103

G3 First Year Application of New Accounting Standards or Change in Policy Page 104

G4 Taxation Page 104

Certification Management Certificate Page 105

3 of 65

Department of Natural Resources and MinesStatement of Comprehensive Income

Year ended 30 June 2016

TOTAL

OPERATING RESULT Notes2016 2015$’000 $’000

Income from Continuing Operations

Appropriation revenue B1-1 329,365 314,913User charges and fees B1-2 119,101 119,053Grants and contributions B1-3 6,619 8,897Other revenue 1,185 563Total Income from Continuing Operations 456,270 443,426

Expenses from Continuing Operations

Employee expenses B2-1 242,083 229,903Supplies and services B2-2 147,064 146,180Grants and subsidies B2-3 41,731 41,650Depreciation and amortisation C3-1 16,939 16,627Revaluation decrement C3-1 1,835 2,145Other expenses B2-4 9,410 10,131Total Expenses from Continuing Operations 459,062 446,636

Operating Result from Continuing Operations (2,792) (3,210)

OTHER COMPREHENSIVE INCOME

Items not reclassified to Operating Result:

Increase/(decrease) in asset revaluation surplus C8-2 1,889 9,693

Total Other Comprehensive Income 1,889 9,693

TOTAL COMPREHENSIVE INCOME (903) 6,483

The accompanying notes form part of these statements.


Department of Natural Resources and Mines Statement of Comprehensive Income for the year ended 30 June 2016

4 of 65

Department of Natural Resources and Mines Statement of Comprehensive Income including Major Departmental Services

for the year ended 30 June 2016

Mining Land and Water Corporate Partnerships (1) TOTAL

OPERATING RESULT

2016 2015 2016 2015 2016 2015 2016 2015 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000


Appropriation revenue 66,641 62,128 253,880 243,998 8,843 8,787 329,365 314,913 User charges and fees 62,687 62,716 56,414 56,336 .. .. 119,101 119,053 Grants and contributions 840 1,275 5,779 7,622 .. .. 6,619 8,897 Other revenue 505 675 680 (113) .. .. 1,185 562 Total Income from Continuing Operations 130,673 126,794 316,753 307,843 8,843 8,787 456,270 443,424


Employee expenses 71,248 65,166 163,132 156,882 7,703 7,856 242,083 229,903 Supplies and services 52,436 51,810 93,487 93,440 1,141 931 147,064 146,180 Grants and subsidies 2,159 1,747 39,573 39,903 .. .. 41,731 41,650 Depreciation and amortisation 6,267 4,030 10,672 12,597 .. .. 16,939 16,627 Revaluation decrement 1,043 920 792 1,225 .. .. 1,835 2,145 Other expenses 1,265 803 8,146 9,326 .. .. 9,410 10,130

Total Expenses from Continuing Operations 134,417 124,476 315,801 313,373 8,843 8,787 459,062 446,636

Operating Result from Continuing Operations (3,744) 2,318 952 (5,530) .. .. (2,792) (3,210)

OTHER COMPREHENSIVE INCOME Items not reclassified to Operating Result:

Increase/(decrease) in asset revaluation surplus 1,181 4,770 709 4,923 .. .. 1,889 9,693

Total Other Comprehensive Income 1,181 4,770 709 4,923 .. .. 1,889 9,693 TOTAL COMPREHENSIVE INCOME (2,563) 7,088 1,661 (607) .. .. (903) 6,483

(1) Income and expenses attributed to other agencies through corporate partnership activities are shown separately and not

allocated across department services.



Department of Natural Resources and Mines Statement of Comprehensive Income including Major Departmental Services for the year ended 30 June 2016

4 of 65

Department of Natural Resources and Mines Statement of Comprehensive Income including Major Departmental Services


Mining Land and Water Corporate Partnerships (1) TOTAL

OPERATING RESULT

2016 2015 2016 2015 2016 2015 2016 2015 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000


Appropriation revenue 66,641 62,128 253,880 243,998 8,843 8,787 329,365 314,913 User charges and fees 62,687 62,716 56,414 56,336 .. .. 119,101 119,053 Grants and contributions 840 1,275 5,779 7,622 .. .. 6,619 8,897 Other revenue 505 675 680 (113) .. .. 1,185 562 Total Income from Continuing Operations 130,673 126,794 316,753 307,843 8,843 8,787 456,270 443,424


Employee expenses 71,248 65,166 163,132 156,882 7,703 7,856 242,083 229,903 Supplies and services 52,436 51,810 93,487 93,440 1,141 931 147,064 146,180 Grants and subsidies 2,159 1,747 39,573 39,903 .. .. 41,731 41,650 Depreciation and amortisation 6,267 4,030 10,672 12,597 .. .. 16,939 16,627 Revaluation decrement 1,043 920 792 1,225 .. .. 1,835 2,145 Other expenses 1,265 803 8,146 9,326 .. .. 9,410 10,130

Total Expenses from Continuing Operations 134,417 124,476 315,801 313,373 8,843 8,787 459,062 446,636

Operating Result from Continuing Operations (3,744) 2,318 952 (5,530) .. .. (2,792) (3,210)

OTHER COMPREHENSIVE INCOME Items not reclassified to Operating Result:

Increase/(decrease) in asset revaluation surplus 1,181 4,770 709 4,923 .. .. 1,889 9,693

Total Other Comprehensive Income 1,181 4,770 709 4,923 .. .. 1,889 9,693 TOTAL COMPREHENSIVE INCOME (2,563) 7,088 1,661 (607) .. .. (903) 6,483

(1) Income and expenses attributed to other agencies through corporate partnership activities are shown separately and not

allocated across department services.


5 of 65

Department of Natural Resources and Mines Statement of Financial Position

as at 30 June 2016

TOTAL

Notes

2016 2015 $’000 $’000

Current Assets Cash and cash equivalents C1 70,380 52,115 Receivables C2 22,659 19,214 Other current assets 2,398 3,866 Total Current Assets 95,437 75,195 Non-Current Assets

Property, plant and equipment C3 157,013 158,953 Intangible assets C4 37,284 36,517 Total Non-Current Assets 194,297 195,470

Total Assets 289,734 270,665 Current Liabilities

Payables C5 29,653 21,807 Accrued employee benefits C6 9,965 7,880 Other current liabilities C7 17,376 11,729 Total Current Liabilities 56,994 41,417 Non-Current Liabilities Other non-current liabilities 334 471 Total Non-Current Liabilities 334 471 Total Liabilities 57,328 41,888

Net Assets 232,406 228,777 Equity Contributed equity 239,572 235,040 Accumulated surplus/(deficit) (43,237) (40,445) Asset revaluation surplus C8-2 36,071 34,182 Total Equity 232,406 228,777 The accompanying notes form part of these statements.


Department of Natural Resources and Mines Statement of Financial Position as at 30 June 2016

6 of 65

Department of Natural Resources and Mines Statement of Assets and Liabilities including Major Departmental Services

as at 30 June 2016

Mining Land and Water TOTAL

2016 2015 2016 2015 2016 2015 $’000 $’000 $’000 $’000 $’000 $’000 Current Assets Cash and cash equivalents 26,423 16,970 43,957 35,144 70,380 52,115 Receivables 5,590 3,920 17,068 15,294 22,659 19,214 Other current assets 660 1,010 1,738 2,856 2,398 3,866 Total Current Assets 32,674 21,900 62,764 53,294 95,437 75,194 Non-Current Assets

Property, plant and equipment 81,137 68,677 75,876 90,276 157,013 158,953 Intangible assets 16,464 15,825 20,821 20,692 37,284 36,517 Total Non-Current Assets 97,600 84,502 96,696 110,968 194,297 195,470

Total Assets 130,274 106,402 159,460 164,262 289,734 270,664

Current Liabilities

Payables 8,451 6,770 21,201 15,037 29,653 21,807 Accrued employee benefits 3,029 2,366 6,936 5,515 9,965 7,880 Other current liabilities 1,509 1,417 15,867 10,312 17,376 11,729 Total Current Liabilities 12,989 10,553 44,005 30,864 56,994 41,417 Non-Current Liabilities Other non-current liabilities .. .. 334 471 334 471 Total Non-Current Liabilities .. .. 334 471 334 471 Total Liabilities 12,989 10,553 44,339 31,334 57,328 41,888

Net Assets 117,285 95,849 115,122 132,928 232,406 228,777 The department has systems in place to allocate assets and liabilities by departmental services. The accompanying notes form part of these statements.


Department of Natural Resources and Mines Statements of Assets and Liabilities including Major Departmental Services for the year ended 30 June 2016

6 of 65

Department of Natural Resources and Mines Statement of Assets and Liabilities including Major Departmental Services

as at 30 June 2016


2016 2015 2016 2015 2016 2015 $’000 $’000 $’000 $’000 $’000 $’000 Current Assets Cash and cash equivalents 26,423 16,970 43,957 35,144 70,380 52,115 Receivables 5,590 3,920 17,068 15,294 22,659 19,214 Other current assets 660 1,010 1,738 2,856 2,398 3,866 Total Current Assets 32,674 21,900 62,764 53,294 95,437 75,194 Non-Current Assets

Property, plant and equipment 81,137 68,677 75,876 90,276 157,013 158,953 Intangible assets 16,464 15,825 20,821 20,692 37,284 36,517 Total Non-Current Assets 97,600 84,502 96,696 110,968 194,297 195,470

Total Assets 130,274 106,402 159,460 164,262 289,734 270,664

Current Liabilities

Payables 8,451 6,770 21,201 15,037 29,653 21,807 Accrued employee benefits 3,029 2,366 6,936 5,515 9,965 7,880 Other current liabilities 1,509 1,417 15,867 10,312 17,376 11,729 Total Current Liabilities 12,989 10,553 44,005 30,864 56,994 41,417 Non-Current Liabilities Other non-current liabilities .. .. 334 471 334 471 Total Non-Current Liabilities .. .. 334 471 334 471 Total Liabilities 12,989 10,553 44,339 31,334 57,328 41,888

Net Assets 117,285 95,849 115,122 132,928 232,406 228,777 The department has systems in place to allocate assets and liabilities by departmental services. The accompanying notes form part of these statements.

7 of 65

Department of Natural Resources and Mines Statement of Changes in Equity


Notes 2016 2015

$’000 $’000 Contributed equity Balance as at 1 July 235,040 236,257 Transactions with owners as owners:

Appropriated equity injections/(withdrawals) C8-1 2,968 4,613 Net transfer in/(out) from other Queensland Government entities C3-1 1,561 (4,496) Non-appropriated equity injections/(withdrawals) 3 (1,334)

Balance at 30 June 239,572 235,040 Accumulated surplus Balance as at 1 July (40,445) (37,235) Operating result from continuing operations (2,792) (2,203) Net effect of prior year adjustments G2 .. (1,007) Balance at 30 June (43,237) (40,445) Asset revaluation surplus Balance as at 1 July 34,182 24,489 Revaluation increments/(decrements) C8-2 1,889 9,693 Balance at 30 June 36,071 34,182 Total balance at 30 June 232,406 228,777 The accompanying notes form part of these statements.


Department of Natural Resources and Mines Statement of Changes in Equity for the year ended 30 June 2016

8 of 65

Department of Natural Resources and Mines Statement of Cash Flows for the year ended 30 June 2016

Notes 2016 2015

CASH FLOWS FROM OPERATING ACTIVITIES $'000 $'000 Inflows:

Service appropriation receipts 327,612 320,126 User charges and fees 117,239 135,405 Grants and contributions 4,890 6,903 GST input tax credits from ATO 18,620 18,927 GST collected from customers 2,905 4,267 Other 11,493 2,658

Outflows:

Employee expenses (240,020) (229,187) Supplies and services (148,244) (146,918) Grants and subsidies (40,570) (44,744) GST paid to suppliers (18,779) (18,989) GST remitted to ATO (2,953) (4,051) Other (2,232) (11,334) Net cash provided by/(used in) operating activities CF-1 29,962 33,061 CASH FLOWS FROM INVESTING ACTIVITIES Inflows: Sales of property, plant and equipment 118 45

Outflows:

Payments for property, plant and equipment (7,956) (8,536) Payments for intangible assets (6,830) (7,560) Net cash provided by/(used in) investing activities (14,668) (16,051) CASH FLOWS FROM FINANCING ACTIVITIES

Inflows: Equity injections 6,674 10,949

Outflows:

Equity withdrawals (3,706) (3,586) Non appropriated equity withdrawals 3 (1,334) Net cash provided by/(used in) financing activities 2,971 6,029 Net increase/(decrease) in cash and cash equivalents 18,265 23,039 Cash and cash equivalents at beginning of financial year 52,115 29,075 Cash and cash equivalents at end of financial year C1 70,380 52,115




8 of 65


Notes 2016 2015

CASH FLOWS FROM OPERATING ACTIVITIES $'000 $'000 Inflows:

Service appropriation receipts 327,612 320,126 User charges and fees 117,239 135,405 Grants and contributions 4,890 6,903 GST input tax credits from ATO 18,620 18,927 GST collected from customers 2,905 4,267 Other 11,493 2,658

Outflows:

Employee expenses (240,020) (229,187) Supplies and services (148,244) (146,918) Grants and subsidies (40,570) (44,744) GST paid to suppliers (18,779) (18,989) GST remitted to ATO (2,953) (4,051) Other (2,232) (11,334) Net cash provided by/(used in) operating activities CF-1 29,962 33,061 CASH FLOWS FROM INVESTING ACTIVITIES Inflows: Sales of property, plant and equipment 118 45

Outflows:

Payments for property, plant and equipment (7,956) (8,536) Payments for intangible assets (6,830) (7,560) Net cash provided by/(used in) investing activities (14,668) (16,051) CASH FLOWS FROM FINANCING ACTIVITIES

Inflows: Equity injections 6,674 10,949

Outflows:

Equity withdrawals (3,706) (3,586) Non appropriated equity withdrawals 3 (1,334) Net cash provided by/(used in) financing activities 2,971 6,029 Net increase/(decrease) in cash and cash equivalents 18,265 23,039 Cash and cash equivalents at beginning of financial year 52,115 29,075 Cash and cash equivalents at end of financial year C1 70,380 52,115


9 of 65


NOTES TO THE STATEMENT OF CASH FLOWS

CF-1 Reconciliation of Operating Result to Net Cash Provided by Operating Activities 2016 2015 $'000 $'000

Operating result from continuing operations (2,792) (3,210) Non-cash items included in operating result: Asset revaluation decrement 1,835 2,145 Bad and impaired debts 275 416 Depreciation and amortisation expense 16,939 16,627 Goods and services (received)/provided below fair value 131 (1,995) Net loss on disposal of property, plant and equipment 353 285 Notional interest on loans (97) (128) Change in assets and liabilities (Increase)/decrease in appropriation receivable 101 5,112 Increase/(decrease) in deferred appropriation payable to Consolidated Fund 3,916 .. (Increase)/decrease in other receivables (3,406) 20,940 (Increase)/decrease in inventories 106 692 (Increase)/decrease in prepayments 1,361 6 Increase/(decrease) in payables 3,691 (9,378) Increase/(decrease) in accrued employee benefits 2,087 715 Increase/(decrease) in other liabilities 5,604 1,193 (Increase)/decrease in GST input tax credits receivables (388) (62) Increase/(decrease) in GST payables 248 (295) Net cash provided by operating activities 29,964 33,062



10 of 65

Department of Natural Resource and Mines Administered Statement of Comprehensive Income

Year ending 30 June 2016

TOTAL

Notes

2016 2015 OPERATING RESULT $’000 $’000 Income from Continuing Operations Administered appropriation revenue D2 1,100 1,220 User charges and fees 325,470 288,792 Property and other territorial revenue D3 154,694 157,882 Land transfers inwards 298,823 226,250 Revaluation increment D7-1 5,105,092 3,398,129 Other revenue 2,162 2,295 Total Revenue 5,887,342 4,074,568 Gain on disposal of land 11,120 8,879 Total Income from Continuing Operations 5,898,462 4,083,447


Grants and subsidies D4 9,560 25,192 Land transfers outwards 51,001 25,055 Other expenses D5 14,293 9,405 Total Expenses from Continuing Operations 74,854 59,652 Net Operating Result before transfers to government 5,823,607 4,023,795

Transfers of administered item revenue to government 475,862 435,240

Operating Result from Continuing Operations 5,347,747 3,588,556 OTHER COMPREHENSIVE INCOME Items not reclassified to Operating Result: Increase/(decrease) in asset revaluation surplus D10 321 1,184 Total Other Comprehensive Income 321 1,184 TOTAL COMPREHENSIVE INCOME 5,348,068 3,589,740



Department of Natural Resources and Mines Administered Statement of Comprehensive Income for the year ended 30 June 2016

10 of 65

Department of Natural Resource and Mines Administered Statement of Comprehensive Income

Year ending 30 June 2016

TOTAL

Notes

2016 2015 OPERATING RESULT $’000 $’000 Income from Continuing Operations Administered appropriation revenue D2 1,100 1,220 User charges and fees 325,470 288,792 Property and other territorial revenue D3 154,694 157,882 Land transfers inwards 298,823 226,250 Revaluation increment D7-1 5,105,092 3,398,129 Other revenue 2,162 2,295 Total Revenue 5,887,342 4,074,568 Gain on disposal of land 11,120 8,879 Total Income from Continuing Operations 5,898,462 4,083,447


Grants and subsidies D4 9,560 25,192 Land transfers outwards 51,001 25,055 Other expenses D5 14,293 9,405 Total Expenses from Continuing Operations 74,854 59,652 Net Operating Result before transfers to government 5,823,607 4,023,795

Transfers of administered item revenue to government 475,862 435,240

Operating Result from Continuing Operations 5,347,747 3,588,556 OTHER COMPREHENSIVE INCOME Items not reclassified to Operating Result: Increase/(decrease) in asset revaluation surplus D10 321 1,184 Total Other Comprehensive Income 321 1,184 TOTAL COMPREHENSIVE INCOME 5,348,068 3,589,740


11 of 65

Department of Natural Resource and Mines Administered Statement of Comprehensive Income including Major Departmental Services

for the year ending 30 June 2016


2016 2015 2016 2015 2016 2015

OPERATING RESULT $’000 $’000 $’000 $’000 $’000 $’000 Income from Continuing Operations Administered appropriation revenue .. 120 1,100 1,100 1,100 1,220 User charges and fees 3,127 2,637 322,343 286,155 325,470 288,792 Property and other territorial revenue 68,660 67,462 86,034 90,420 154,694 157,882 Land transfers inwards .. .. 298,823 226,250 298,823 226,250 Revaluation increment (2,623) .. 5,107,715 3,398,129 5,105,092 3,398,129 Other revenue .. .. 2,162 2,295 2,162 2,295 Total Revenue 69,164 70,219 5,818,178 4,004,349 5,887,342 4,074,568 Gain on disposal of land .. .. 11,120 8,879 11,120 8,879 Total Income from Continuing Operations 69,164 70,219 5,829,298 4,013,228 5,898,462 4,083,447


Grants and subsidies .. .. 9,560 25,192 9,560 25,192 Land transfers outwards .. .. 51,001 25,055 51,001 25,055 Other expenses 1,920 20 12,372 9,385 14,293 9,405 Total Expenses from Continuing Operations 1,920 20 72,934 59,632 74,854 59,652

Net Operating Result before transfers to government 67,244 70,199 5,756,364 3,953,596 5,823,607 4,023,795 Transfers of administered item revenue to government 69,164 70,199 406,698 365,041 475,862 435,240

Operating Result from Continuing Operations (1,920) .. 5,349,667 3,588,555 5,347,747 3,588,556

OTHER COMPREHENSIVE INCOME Items not reclassified to Operating Result: Increase/(decrease) in asset revaluation surplus .. .. 321 1,184 321 1,184

Total Other Comprehensive Income .. .. 321 1,184 321 1,184 TOTAL COMPREHENSIVE INCOME (1,920) .. 5,349,988 3,589,740 5,348,068 3,589,740



Department of Natural Resources and Mines Administered Statement of Comprehensive Income including Major Departmental Services for the year ended 30 June 2016

12 of 65

Department of Natural Resource and Mines Administered Statement of Financial Position

as at 30 June 2016

TOTAL

Notes

2016 2015 $’000 $’000

Current Assets Cash and cash equivalents 5,418 5,284 Receivables D6 70,619 80,680 Land held for sale 3,984 .. Total Current Assets 80,020 85,964 Non-Current Assets Receivables D6 33,086 36,516 Property, plant and equipment D7-1 62,264,017 56,917,303 Total Non-Current Assets 62,297,103 56,953,818 Total Assets 62,377,123 57,039,782

Current Liabilities

Payables D8 44,598 45,998 Proposals and deposits 22,895 33,128 Other current liabilities D9 19,978 18,462 Total Current Liabilities 87,471 97,587 Non-Current Liabilities Other non-current liabilities 277 267 Total Non-Current Liabilities 277 267 Total Liabilities 87,748 97,854 Net Assets 62,289,375 56,941,928

Equity Contributed equity 66,320,017 66,320,638 Accumulated surplus/(deficit) (4,032,272) (9,380,019) Asset revaluation surplus D10 1,630 1,309 Total Equity 62,289,375 56,941,928 The accompanying notes form part of these statements.


Department of Natural Resources and Mines Administered Statement of Financial Position for the year ended 30 June 2016

12 of 65

Department of Natural Resource and Mines Administered Statement of Financial Position

as at 30 June 2016

TOTAL

Notes

2016 2015 $’000 $’000

Current Assets Cash and cash equivalents 5,418 5,284 Receivables D6 70,619 80,680 Land held for sale 3,984 .. Total Current Assets 80,020 85,964 Non-Current Assets Receivables D6 33,086 36,516 Property, plant and equipment D7-1 62,264,017 56,917,303 Total Non-Current Assets 62,297,103 56,953,818 Total Assets 62,377,123 57,039,782

Current Liabilities

Payables D8 44,598 45,998 Proposals and deposits 22,895 33,128 Other current liabilities D9 19,978 18,462 Total Current Liabilities 87,471 97,587 Non-Current Liabilities Other non-current liabilities 277 267 Total Non-Current Liabilities 277 267 Total Liabilities 87,748 97,854 Net Assets 62,289,375 56,941,928

Equity Contributed equity 66,320,017 66,320,638 Accumulated surplus/(deficit) (4,032,272) (9,380,019) Asset revaluation surplus D10 1,630 1,309 Total Equity 62,289,375 56,941,928 The accompanying notes form part of these statements.

13 of 65

Department of Natural Resource and Mines Administered Statement of Assets and Liabilities including Major Departmental Services

as at 30 June 2016


2016 2015 2016 2015 2016 2015 $’000 $’000 $’000 $’000 $’000 $’000

Current Assets Cash and cash equivalents .. 3,211 5,418 2,073 5,418 5,284 Receivables 1,369 2,237 69,250 78,444 70,619 80,680 Land held for sale .. .. 3,984 .. 3,984 .. Total Current Assets 1,369 5,448 78,651 80,517 80,020 85,964 Non-Current Assets Receivables .. .. 33,086 36,516 33,086 36,516 Property, plant and equipment 17,013 19,635 62,247,004 56,897,667 62,264,017 56,917,303 Total Non-Current Assets 17,013 19,635 62,280,091 56,934,183 62,297,103 56,953,818 Total Assets 18,382 25,083 62,358,742 57,014,700 62,377,123 57,039,782

Current Liabilities

Payables 790 700 43,808 45,298 44,598 45,998 Proposals and deposits .. .. 22,895 33,128 22,895 33,128 Other current liabilities 17,179 17,549 2,799 912 19,978 18,462 Total Current Liabilities 17,968 18,249 69,502 79,338 87,471 97,587 Non-Current Liabilities Other non-current liabilities 277 267 .. .. 277 267 Total Non-Current Liabilities 277 267 .. .. 277 267 Total Liabilities 18,246 18,516 69,502 79,338 87,748 97,854 Net Assets 136 6,567 62,289,239 56,935,362 62,289,375 56,941,928 The accompanying notes form part of these statements.


Department of Natural Resources and Mines Administered Statement of Assets and Liabilities including Major Departmental Services for the year ended 30 June 2016

14 of 65

Department of Natural Resources and Mines Administered Statement of Changes in Equity


Notes 2016 2015

$’000 $’000

Contributed equity Balance as at 1 July 66,320,638 66,268,418 Transactions with owners as owners:

Appropriated equity injections/(withdrawals) D2 .. (120) Net asset adjustment to other agencies 75,757 101,654 Non-appropriated equity injections/(withdrawals) (76,378) (49,314)

Balance at 30 June 66,320,017 66,320,638 Accumulated surplus Balance as at 1 July (9,380,019) (12,968,575) Operating result from continuing operations 5,347,747 3,588,556 Balance at 30 June (4,032,272) (9,380,019) Asset revaluation surplus Balance as at 1 July 1,309 125 Revaluation increments/(decrements) D10 321 1,184 Balance at 30 June 1,630 1,309

Total Equity 62,289,375 56,941,927



Department of Natural Resources and Mines Administered Statement of Changes in Equity for the year ended 30 June 2016

14 of 65

Department of Natural Resources and Mines Administered Statement of Changes in Equity


Notes 2016 2015

$’000 $’000

Contributed equity Balance as at 1 July 66,320,638 66,268,418 Transactions with owners as owners:

Appropriated equity injections/(withdrawals) D2 .. (120) Net asset adjustment to other agencies 75,757 101,654 Non-appropriated equity injections/(withdrawals) (76,378) (49,314)

Balance at 30 June 66,320,017 66,320,638 Accumulated surplus Balance as at 1 July (9,380,019) (12,968,575) Operating result from continuing operations 5,347,747 3,588,556 Balance at 30 June (4,032,272) (9,380,019) Asset revaluation surplus Balance as at 1 July 1,309 125 Revaluation increments/(decrements) D10 321 1,184 Balance at 30 June 1,630 1,309

Total Equity 62,289,375 56,941,927


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Department of Natural Resources and Mines Administered Statement of Cash Flows


Notes

2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES $’000 $’000 Inflows: Administered appropriation receipts 1,100 1,220 User charges and fees 325,470 288,792 Property and other territorial receipts 152,557 151,953 GST input tax credits from ATO 492 342 GST collected from customers 6,460 6,208 Other 4,434 15,640 Outflows: Net transfers of Administered Income to Government (466,953) (448,155) Grants and subsidies (1,100) (1,100) GST paid to suppliers (440) (348) GST remitted to ATO (6,518) (6,277) Other (24,215) (5,466) Net cash provided by/(used in) operating activities CFA-1 (8,714) 2,809 CASH FLOWS FROM INVESTING ACTIVITIES Inflows: Sales of property, plant and equipment 80,806 42,875 Finance leases redeemed – state land 4,419 3,779 Net cash provided by/(used in) investing activities 85,225 46,654 CASH FLOWS FROM FINANCING ACTIVITIES Outflows: Equity withdrawals .. (120) Non-appropriated equity withdrawals (76,378) (49,314) Net cash provided by/(used in) financing activities (76,378) (49,434) Net increase/(decrease) in cash and cash equivalents 133 29 Cash and cash equivalents at beginning of financial year 5,284 5,256 Cash and cash equivalents at end of financial year 5,418 5,284



Department of Natural Resources and Mines Administered Statement of Cash Flows for the year ended 30 June 2016

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for the year ended 30 June 2016 NOTES TO THE STATEMENT OF CASH FLOWS

CFA-1 Reconciliation of Operating Result to Net Cash Provided by Operating Activities 2016 2015 $’000 $’000 Operating result from continuing operations 5,347,747 3,588,556 Non-cash items included in operating result: Depreciation and amortisation expense 149 116 Bad and impaired debts 10,327 4,721 Discounts on early settlement of finance leases 194 300 Rent remissions 97 74 Net (gain) on sale of property, plant and equipment (11,120) (8,879) Land transfers to other entities 59,462 49,147 Land transfers from other entities (298,823) (226,250) Revaluation increment (5,105,092) (3,398,129) Change in assets and liabilities (Increase)/decrease in other receivables (11,380) (9,600) Increase/(decrease) in accounts payable (76) (1,303) Increase/(decrease) in proposals and deposits (10,232) 18,616 Increase/(decrease) in transfers to government payables 8,908 (12,915) Increase/(decrease) in other liabilities 1,100 (1,472) (Increase)/decrease in GST input tax credits receivable (1) (6) Increase/(decrease) in GST payable 27 (167) Net cash provided by operating activities (8,714) 2,809


Department of Natural Resources and Mines Administered Statement of Cash Flows for the year ended 30 June 2016

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for the year ended 30 June 2016 NOTES TO THE STATEMENT OF CASH FLOWS

CFA-1 Reconciliation of Operating Result to Net Cash Provided by Operating Activities 2016 2015 $’000 $’000 Operating result from continuing operations 5,347,747 3,588,556 Non-cash items included in operating result: Depreciation and amortisation expense 149 116 Bad and impaired debts 10,327 4,721 Discounts on early settlement of finance leases 194 300 Rent remissions 97 74 Net (gain) on sale of property, plant and equipment (11,120) (8,879) Land transfers to other entities 59,462 49,147 Land transfers from other entities (298,823) (226,250) Revaluation increment (5,105,092) (3,398,129) Change in assets and liabilities (Increase)/decrease in other receivables (11,380) (9,600) Increase/(decrease) in accounts payable (76) (1,303) Increase/(decrease) in proposals and deposits (10,232) 18,616 Increase/(decrease) in transfers to government payables 8,908 (12,915) Increase/(decrease) in other liabilities 1,100 (1,472) (Increase)/decrease in GST input tax credits receivable (1) (6) Increase/(decrease) in GST payable 27 (167) Net cash provided by operating activities (8,714) 2,809

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Department of Natural Resources and Mines Basis of Financial Statement Preparation


GENERAL INFORMATION The Department of Natural Resources and Mines (“the department”) is a 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 61 Mary Street, BRISBANE QLD 4000. STATEMENT OF COMPLIANCE The department has prepared these financial statements in compliance with section 42 of the Financial and Performance Management Standard 2009. These financial statements are general purpose financial statements. They have been prepared on an accrual basis in accordance with Australian Accounting Standards and Interpretations. The financial statements comply with Queensland Treasury's Minimum Reporting Requirements for the reporting periods beginning on or after 1 July 2015 and other authoritative pronouncements. To comply with the Australian Accounting Standards and Interpretations, the department has applied those requirements applicable to not-for-profit entities, as the department is a not-for-profit government department. Except where stated, the historical cost convention is used. THE REPORTING ENTITY The financial statements include the value of all income, expenses, assets, liabilities and equity of the department. The department has no controlled entities. PRESENTATION MATTERS Currency and Rounding 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. Comparatives Comparative information reflects the audited 2014-15 financial statements except where restated as necessary to be consistent in disclosures in the current reporting period. Material changes to prior year comparatives includes:

Legal costs from Other Expenses to Supplies and Services ($7.129 million); Training expenses from Supplies and Services to Employee Expenses ($1.858 million).

Amounts shown in these financial statements may not add to the correct sub-totals or totals due to rounding Current/Non-Current Classification Assets and liabilities are classified as either ‘current’ or ‘non-current’ in the Statement of Financial Position and associated notes. 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. AUTHORISATION OF FINANCIAL STATEMENTS FOR ISSUE The financial statements are authorised for issue by the Acting Director-General and Acting Chief Finance Officer at the date of signing the Management Certificate.


Department of Natural Resources and Mines Basis of Financial Statement Preparation for the year ended 30 June 2016

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Department of Natural Resources and Mines Notes to the Financial Statements


SECTION 1 HOW WE OPERATE – OUR DEPARTMENTAL OBJECTIVES AND ACTIVITIES

A1 DEPARTMENT OBJECTIVES The department’s vision is: Prosperity for Queenslanders through the responsible and sustainable use of our natural resources. The department’s purpose, as an economic development agency, is to create opportunities as the champion for the responsible and sustainable use of our natural resources now and into the future. The department is principally funded for the services it delivers by parliamentary appropriations, with further funding sourced from: Cadastral and title searches, valuations, provision of mapping, aerial photography and related products and services; Levies and fees on safety and health and petroleum and gas services provided to industry, including mining,

quarrying and explosives operations; Storage of explosives and other fee for service activities relating to safety in mines testing; and Grants and contribution revenue from Commonwealth, State and local governments and external bodies for various

initiatives and programs. A2 MAJOR SERVICES The department's major services are: Mining services The objectives of this service is to provide a robust framework that encourage exploration, investment and development, thereby enabling sustainable use of the State’s resources; and enable safe and healthy resources industries by reducing safety and health risk, driving innovation and building industry awareness and skills. Land and Water services The objectives of this service is to provide a robust framework for dealing in land and water resources that provides confidence and certainty to customers and the community; and enabling sustainable allocation and use of the State’s land and water resources to create opportunity for current and future generations of Queenslanders. Corporate Partnerships The department participates in a corporate partnership arrangement where it 'hosts' a number of strategic and operational corporate services provided to other 'recipient' departments. This arrangement was developed with a focus on ensuring economies of scale, service integration, scalability and responsiveness. As a host agency of corporate service functions, the department receives appropriation of funds and reports full time equivalent positions for the services it provides. The model is multi-layered for different corporate services functions. That is, some functions are provided to two agencies, and some provided to six agencies with any combination in-between. As a 'host' agency, the department provides defined services to the following agencies: Department of Agriculture and Fisheries (Accommodation Services; Legal Services; Web and Creative Services;

Financial Policy and Assurance) Department of Tourism, Major Events, Small Business and the Commonwealth Games (Accommodation Services;

Legal Services; Web and Creative Services; Financial Policy and Assurance) Department of Environment and Heritage Protection (Accommodation Services; Legal Services) Department of Energy and Water Supply (Human Resources; Corporate Communications; Accommodation

Services; Legal Services; Web and Creative Services) Department of National Parks, Sport and Racing (Accommodation Services; Legal Services). As a ‘recipient’ agency, the department receives defined services from the following agencies: Department of Agriculture and Fisheries (Information Management; Fleet Management; Telecommunications,

Finance and Human Resources system support) Department of Environment and Heritage Protection (Internal Audit; Procurement; Right to Information). These functions (and allocation of revenue and expenses) are disclosed in the relevant department’s financial statements. Corporate services income and expenses attributable under the corporate partnership arrangements are separately disclosed in the Statement of Comprehensive Income including Major Departmental Services.

Corporate Services income and expenses attributable solely to the department's activities are apportioned across the major departmental services.


Department of Natural Resources and Mines Notes to the Financial Statements for the year ended 30 June 2016

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SECTION 1 HOW WE OPERATE – OUR DEPARTMENTAL OBJECTIVES AND ACTIVITIES

A1 DEPARTMENT OBJECTIVES The department’s vision is: Prosperity for Queenslanders through the responsible and sustainable use of our natural resources. The department’s purpose, as an economic development agency, is to create opportunities as the champion for the responsible and sustainable use of our natural resources now and into the future. The department is principally funded for the services it delivers by parliamentary appropriations, with further funding sourced from: Cadastral and title searches, valuations, provision of mapping, aerial photography and related products and services; Levies and fees on safety and health and petroleum and gas services provided to industry, including mining,

quarrying and explosives operations; Storage of explosives and other fee for service activities relating to safety in mines testing; and Grants and contribution revenue from Commonwealth, State and local governments and external bodies for various

initiatives and programs. A2 MAJOR SERVICES The department's major services are: Mining services The objectives of this service is to provide a robust framework that encourage exploration, investment and development, thereby enabling sustainable use of the State’s resources; and enable safe and healthy resources industries by reducing safety and health risk, driving innovation and building industry awareness and skills. Land and Water services The objectives of this service is to provide a robust framework for dealing in land and water resources that provides confidence and certainty to customers and the community; and enabling sustainable allocation and use of the State’s land and water resources to create opportunity for current and future generations of Queenslanders. Corporate Partnerships The department participates in a corporate partnership arrangement where it 'hosts' a number of strategic and operational corporate services provided to other 'recipient' departments. This arrangement was developed with a focus on ensuring economies of scale, service integration, scalability and responsiveness. As a host agency of corporate service functions, the department receives appropriation of funds and reports full time equivalent positions for the services it provides. The model is multi-layered for different corporate services functions. That is, some functions are provided to two agencies, and some provided to six agencies with any combination in-between. As a 'host' agency, the department provides defined services to the following agencies: Department of Agriculture and Fisheries (Accommodation Services; Legal Services; Web and Creative Services;

Financial Policy and Assurance) Department of Tourism, Major Events, Small Business and the Commonwealth Games (Accommodation Services;

Legal Services; Web and Creative Services; Financial Policy and Assurance) Department of Environment and Heritage Protection (Accommodation Services; Legal Services) Department of Energy and Water Supply (Human Resources; Corporate Communications; Accommodation

Services; Legal Services; Web and Creative Services) Department of National Parks, Sport and Racing (Accommodation Services; Legal Services). As a ‘recipient’ agency, the department receives defined services from the following agencies: Department of Agriculture and Fisheries (Information Management; Fleet Management; Telecommunications,

Finance and Human Resources system support) Department of Environment and Heritage Protection (Internal Audit; Procurement; Right to Information). These functions (and allocation of revenue and expenses) are disclosed in the relevant department’s financial statements. Corporate services income and expenses attributable under the corporate partnership arrangements are separately disclosed in the Statement of Comprehensive Income including Major Departmental Services.

Corporate Services income and expenses attributable solely to the department's activities are apportioned across the major departmental services.

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SECTION 2 NOTES ABOUT OUR FINANCIAL PERFORMANCE

B1 REVENUE B1-1 APPROPRIATION REVENUE

Reconciliation of Payments from Consolidated Fund to

2016 2015

Appropriated Revenue Recognised in Operating Result

$’000 $’000 Budgeted appropriation revenue 321,291 333,967 Transfers from/(to) other headings - Equity 6,321 (2,791) Lapsed appropriation revenue .. (11,050) Total Appropriation Receipts (cash) 327,612 320,126 Less: Opening balance of appropriation revenue receivable (101) (5,213) Plus: Closing balance of appropriation revenue receivable .. 101 Plus: Opening balance of deferred appropriation payable to Consolidated Fund 1,854 .. Less: Closing balance of deferred appropriation payable to Consolidated Fund (5,770) (1,854) Net Appropriation Revenue 323,595 313,160 Plus: Net deferred appropriation payable to Consolidated Fund (expense) 5,770 1,753

Appropriation revenue recognised in Statement of Comprehensive Income 329,365 314,913

Accounting Policy – Appropriation Revenue Appropriations provided under the annual Appropriation Act are recognised as revenue when received. Approval has been obtained from Queensland Treasury to recognise specific adjustments to departmental services revenue. Amounts appropriated to the department for transfer to other entities in accordance with legislative or other requirements are reported as ‘administered’ item appropriations – refer to Note D2.

B1-2 USER CHARGES AND FEES

2016 2015 $’000 $’000 Services rendered 20,507 21,156 Fees and permits 94,324 94,093 Other 4,270 3,805 Total 119,101 119,053

Accounting Policy – User Charges and Fees The department recognises user charges and fees as revenues when the revenue has been earned and can be measured reliably with a sufficient degree of certainty. This occurs upon delivery of the goods to the customer or completion of the requested services at which time the invoice is raised or payment is received. Accrued revenue is recognised if the revenue has been earned but not yet invoiced – refer to Note C2.

B1-3 GRANTS AND CONTRIBUTIONS

2016 2015 $’000 $’000 Commonwealth grants 3,148 3,352 Funding from external bodies, state governments 1,743 3,551 Goods and services received at below fair value 1,729 1,995 Total 6,619 8,897

Accounting Policy – Grants and Contributions The department recognises grants, contributions, donations and gifts that are non-reciprocal in nature as revenue in the year in which the department obtains control over them. Where grants are received that are reciprocal in nature, revenue is progressively recognised as it is earned according to the terms of the funding agreements.



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B2 EXPENSES B2-1 EMPLOYEE EXPENSES

2016 2015 $’000 $’000 Employee benefits Salaries and wages 188,848 178,099 Employer superannuation contributions 25,145 24,018 Annual leave levy 19,572 18,991 Long service leave levy 3,902 3,858 Other employee benefits 976 1,549 Employee related expenses Salary related taxes 741 947 Workers' compensation premium 438 584 Training and recruitment 2,461 1,858 Total 242,083 229,903 The number employees as at 30 June 2016, including both full time and part time employees, measured on a full time equivalent basis (reflecting Minimum Obligatory Human Resource Information (MOHRI)) is: 2016 2015 Number of employees: 2,406 2,369

Accounting Policy – Employee Benefits Employer superannuation contributions, annual leave levies and long service leave levies are regarded as employee benefits. The department pays premiums to WorkCover Queensland in respect of its obligations for employee compensation. Workers' compensation insurance is a consequence of employing employees, but is not counted in an employee's total remuneration package. It is not an employee benefit and is recognised separately as employee related expenses. Accounting Policy – Wages, salaries and sick leave Wages and salaries due but unpaid at the reporting date are recognised in the Statement of Financial Position at the current salary rates – refer to Note C6. As the department expects such liabilities to be wholly settled within 12 months of reporting date, the liabilities are recognised at undiscounted amounts. Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non-vesting, an expense is recognised for this leave as it is taken. Accounting Policy – 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 leave and long service leave are claimed from the scheme quarterly in arrears – refer to Note C6. No provision for annual leave and long service leave is recognised in the department's financial statements. The liability is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. Accounting Policy – Superannuation Employer superannuation contributions are paid to QSuper, the superannuation scheme for Queensland Government employees, at rates determined by the Treasurer on 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 pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. Key management personnel and remuneration disclosures are details in Note G1.



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B2 EXPENSES B2-1 EMPLOYEE EXPENSES

2016 2015 $’000 $’000 Employee benefits Salaries and wages 188,848 178,099 Employer superannuation contributions 25,145 24,018 Annual leave levy 19,572 18,991 Long service leave levy 3,902 3,858 Other employee benefits 976 1,549 Employee related expenses Salary related taxes 741 947 Workers' compensation premium 438 584 Training and recruitment 2,461 1,858 Total 242,083 229,903 The number employees as at 30 June 2016, including both full time and part time employees, measured on a full time equivalent basis (reflecting Minimum Obligatory Human Resource Information (MOHRI)) is: 2016 2015 Number of employees: 2,406 2,369

Accounting Policy – Employee Benefits Employer superannuation contributions, annual leave levies and long service leave levies are regarded as employee benefits. The department pays premiums to WorkCover Queensland in respect of its obligations for employee compensation. Workers' compensation insurance is a consequence of employing employees, but is not counted in an employee's total remuneration package. It is not an employee benefit and is recognised separately as employee related expenses. Accounting Policy – Wages, salaries and sick leave Wages and salaries due but unpaid at the reporting date are recognised in the Statement of Financial Position at the current salary rates – refer to Note C6. As the department expects such liabilities to be wholly settled within 12 months of reporting date, the liabilities are recognised at undiscounted amounts. Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non-vesting, an expense is recognised for this leave as it is taken. Accounting Policy – 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 leave and long service leave are claimed from the scheme quarterly in arrears – refer to Note C6. No provision for annual leave and long service leave is recognised in the department's financial statements. The liability is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. Accounting Policy – Superannuation Employer superannuation contributions are paid to QSuper, the superannuation scheme for Queensland Government employees, at rates determined by the Treasurer on 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 pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting. Key management personnel and remuneration disclosures are details in Note G1.

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B2 EXPENSES (continued) B2-2 SUPPLIES AND SERVICES

2016 2015 $’000 $’000 Accommodation costs 31,987 33,790 Consultants and contractors 32,085 39,136 Information and communication technology costs 45,085 36,316 Legal fees 6,937 7,129 Materials and consumables 3,837 2,526 Motor vehicles 6,738 7,561 Printing, postage and freight 4,769 5,100 Service costs to other government agencies and shared service providers 10,959 10,311 Travel 6,616 6,877 Capitalised supplies and services expenditure (11,736) (12,899) Other 9,786 10,332 Total 147,064 146,180

The supplies and services expenditure capitalised in the year was attributable to: Consultants & Contractors $5.819 million (2015: $7.263 million), Information and communication technology costs $3.793 million (2015: $2.156 million) and other categories $2.124 million (2015: $3.480 million).

B2-3 GRANTS AND SUBSIDIES

2016 2015 $’000 $’000

Grants to industry and external bodies 41,599 41,589 Sponsorships and Scholarships 132 62 Total 41,731 41,650

B2-4 OTHER EXPENSES

2016 2015 $’000 $’000 External audit fees (1) 435 402 Insurance premiums - Queensland Government Insurance Fund (QGIF) (2) 1,822 1,833 Special payments (3) Out-of-court settlement 379 3,449 Ex-gratia payments .. 1,162

Ex-gratia payments – payment to former Core Agreement employees 23 .. Deferred appropriation payable to Consolidated Fund 5,770 1,753 Other 981 1,530 Total 9,410 10,130 (1) Total audit fees paid to the Queensland Audit Office relating to the 2015-16 financial statements are estimated to be

$360,000 (2015: $350,000). There are no non-audit services included in this amount. (2) 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 the claims, revenue will be recognised for the agreed settlement amount and disclosed as 'Other Revenues - Insurance compensation from loss of property'.

(3) Special payments during 2015-16 below $5,000 include the following: 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 employee 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 payments attracted applicable salary on-costs.



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SECTION 3 NOTES ABOUT OUR FINANCIAL POSITION

B2-4 OTHER EXPENSES (continued)

Accounting Policy – Insurance Premiums The department’s non-current physical assets and other risks are insured through the Queensland Government Insurance Fund, premiums being paid on a risk assessment basis. Accounting Policy – Special Payments Special payments include ex gratia expenditure and other expenditure that the department is not contractually or legally obligated to make to other parties. In compliance with the Financial and Performance Management Standard 2009, the department maintains a register setting out details of all special payments greater than $5,000.

C1 CASH AND CASH EQUIVALENTS

2016 2015 $’000 $’000

Imprest accounts and cash on hand 17 26 Cash at bank 70,364 52,089 Total 70,380 52,115

Accounting Policy – Cash and cash equivalents Departmental bank accounts grouped within the Whole-of-Government set-off arrangement with the Queensland Treasury Corporation do not earn interest on surplus funds. Interest earned on the aggregate set-off arrangement balance accrues to the Consolidated Fund. For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash and cash equivalents include all cash on hand, cash at bank and cheques receipted but not banked at 30 June.

C2 RECEIVABLES

2016 2015 $’000 $’000 Current Trade debtors 9,039 7,653 Accrued revenue 4,995 4,517 14,034 12,170 Less: Allowance for impairment loss (1,132) (892) 12,902 11,278 GST input tax receivable 2,328 2,188 Annual leave claim receivable 3,952 4,082 Equity receivable from Consolidated Fund 2,186 .. Other 1,291 1,666 Total 22,659 19,213

Accounting Policy – Receivables Trade debtors are recognised at the amounts due at the time of sale or service delivery, i.e. the agreed purchase/contract price. Settlement of these amounts is required within ranged trading terms of 14 to 30 days from invoice date depending on the service provided. Other debtors generally arise from transactions outside the usual operating activities of the department and are recognised at their assessed values. Other than receivables from government, settlement terms of these debtors are between 14 to 30 days net, with the exception of finance lease receivables in the Administered Items that range from 2 to 60 years – refer to Note D6.



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SECTION 3 NOTES ABOUT OUR FINANCIAL POSITION

B2-4 OTHER EXPENSES (continued)

Accounting Policy – Insurance Premiums The department’s non-current physical assets and other risks are insured through the Queensland Government Insurance Fund, premiums being paid on a risk assessment basis. Accounting Policy – Special Payments Special payments include ex gratia expenditure and other expenditure that the department is not contractually or legally obligated to make to other parties. In compliance with the Financial and Performance Management Standard 2009, the department maintains a register setting out details of all special payments greater than $5,000.

C1 CASH AND CASH EQUIVALENTS

2016 2015 $’000 $’000

Imprest accounts and cash on hand 17 26 Cash at bank 70,364 52,089 Total 70,380 52,115

Accounting Policy – Cash and cash equivalents Departmental bank accounts grouped within the Whole-of-Government set-off arrangement with the Queensland Treasury Corporation do not earn interest on surplus funds. Interest earned on the aggregate set-off arrangement balance accrues to the Consolidated Fund. For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash and cash equivalents include all cash on hand, cash at bank and cheques receipted but not banked at 30 June.

C2 RECEIVABLES

2016 2015 $’000 $’000 Current Trade debtors 9,039 7,653 Accrued revenue 4,995 4,517 14,034 12,170 Less: Allowance for impairment loss (1,132) (892) 12,902 11,278 GST input tax receivable 2,328 2,188 Annual leave claim receivable 3,952 4,082 Equity receivable from Consolidated Fund 2,186 .. Other 1,291 1,666 Total 22,659 19,213

Accounting Policy – Receivables Trade debtors are recognised at the amounts due at the time of sale or service delivery, i.e. the agreed purchase/contract price. Settlement of these amounts is required within ranged trading terms of 14 to 30 days from invoice date depending on the service provided. Other debtors generally arise from transactions outside the usual operating activities of the department and are recognised at their assessed values. Other than receivables from government, settlement terms of these debtors are between 14 to 30 days net, with the exception of finance lease receivables in the Administered Items that range from 2 to 60 years – refer to Note D6.

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C2 RECEIVABLES (continued)

Accounting Policy – Accrued Revenue The department recognises accrued revenue for goods and services provided that have not been billed at the end of the period and can be reliably measured. Disclosure - Credit Risk Exposure of Receivables The maximum exposure to credit risk at balance date for receivables is the gross carrying amount of those assets inclusive of any provisions for impairment. No collateral is held as security and no credit enhancements relate to receivables held by the department. In terms of collectability, receivables will fall into one of the following three categories:

within terms and expected to be fully collectible past due but not impaired past due and impaired

The collectability of receivables is assessed periodically with provision being made where receivables are impaired. Note C2-1 details the accounting policies for impairment of receivables, including the loss events giving rise to impairment and the movements in the provision for impairment. All known bad debts were written-off as at 30 June.

C2-1 IMPAIRMENT OF RECEIVABLES

2016 2015 $’000 $’000 Movements in the allowance of provision for impairment Notes Balance at 1 July 892 567 Increase/(decrease) in allowance recognised in operating result 240 325 Balance at 30 June (1) C2 1,132 892 (1) Includes bad debts written off of $0.019 million (2015: $0.062 million) and previous impaired amounts collected.

Overdue 2016 Ageing of Past Due but Not Impaired Receivables

Less than 30 days

30-60 days

61-90 days

More than 90 days Total

$’000 $’000 $’000 $’000 $’000 Receivables 424 1,395 674 109 2,602 Total 424 1,395 674 109 2,602

2015 Ageing of Past Due but Not Impaired Receivables

Receivables 848 754 75 187 1,864 Total 848 754 75 187 1,864

Accounting Policy – Impairment of Receivables The allowance for impairment reflects the occurrence of loss events. The most readily identifiable loss event is where a debtor is overdue in paying a debt to the department, according to the due date. Economic changes impacting the department's debtors, and relevant industry data, also form part of the department's risk analysis. If the department determines that an amount owing by such a debtor does become uncollectible (after appropriate range of debt recovery actions), that amount is recognised as a Bad Debt expense and written-off directly against Receivables. Impairment loss expense for the current year regarding the department's receivables is $0.240 million. This is a decrease of $0.085 million from 2015 although the overall provision is increasing which is mainly due to a downturn in the mining industry.




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26 of 65



C3 PROPERTY, PLANT, EQUIPMENT AND RELATED DEPRECIATION (continued)

C3-2 ACCOUNTING POLICIES

Recognition thresholds for 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.

Asset Class Threshold Land $1 Buildings $10,000 Infrastructure $10,000 Plant and equipment $5,000

Items with a lesser value are expensed in the year of acquisition. Land improvements undertaken by the department are included with buildings or infrastructure based on the proximity of the asset to which they relate. Acquisition of assets Actual cost is used for the initial recording of all non-current physical asset acquisitions. Cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use. However, any training costs are expensed as incurred. Where assets are received free of charge from another Queensland Government entity (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 the date of acquisition in accordance with AASB 116 Property, Plant and Equipment. All costs relating to items of property, plant and equipment constructed in-house are recorded as work in progress until completion of the project using all direct and indirect costs, where the latter are reliably attributable. Work in progress performed under external contracts is recorded using the invoice amount supplied by the contractor. Depreciation of property, plant and equipment Land is not depreciated as it has an unlimited useful life. Key Judgement and Estimate: Property, plant and equipment is depreciated on a straight-line basis so as to allocate the net cost or revalued amount of each asset, less its estimated residual value, progressively over its estimated useful life to the department. Assets under construction (work in progress) are not depreciated or amortised until they reach 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 within property, plant and equipment. Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate and are depreciated accordingly. Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the department. The depreciable amount of an improvement to or on leasehold land is allocated progressively over the estimated useful life of the improvement or the unexpired period of the lease, whichever is the shorter. The unexpired period of a lease includes any option period where exercise of the option is probable.



26 of 65




C3-2 ACCOUNTING POLICIES

Recognition thresholds for 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.

Asset Class Threshold Land $1 Buildings $10,000 Infrastructure $10,000 Plant and equipment $5,000

Items with a lesser value are expensed in the year of acquisition. Land improvements undertaken by the department are included with buildings or infrastructure based on the proximity of the asset to which they relate. Acquisition of assets Actual cost is used for the initial recording of all non-current physical asset acquisitions. Cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use. However, any training costs are expensed as incurred. Where assets are received free of charge from another Queensland Government entity (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 the date of acquisition in accordance with AASB 116 Property, Plant and Equipment. All costs relating to items of property, plant and equipment constructed in-house are recorded as work in progress until completion of the project using all direct and indirect costs, where the latter are reliably attributable. Work in progress performed under external contracts is recorded using the invoice amount supplied by the contractor. Depreciation of property, plant and equipment Land is not depreciated as it has an unlimited useful life. Key Judgement and Estimate: Property, plant and equipment is depreciated on a straight-line basis so as to allocate the net cost or revalued amount of each asset, less its estimated residual value, progressively over its estimated useful life to the department. Assets under construction (work in progress) are not depreciated or amortised until they reach 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 within property, plant and equipment. Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate and are depreciated accordingly. Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the department. The depreciable amount of an improvement to or on leasehold land is allocated progressively over the estimated useful life of the improvement or the unexpired period of the lease, whichever is the shorter. The unexpired period of a lease includes any option period where exercise of the option is probable.

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C3-2 ACCOUNTING POLICIES (continued)

Key Estimate: For each class of depreciable asset, the following useful life ranges are used:

Physical asset class Useful life range Buildings 7 – 80 years Infrastructure 5 – 120 years Plant and equipment 3 – 40 years

C3-3 REVALUATIONS OF NON-CURRENT PHYSICAL ASSETS

Land, buildings and infrastructure are measured at fair value in accordance with AASB 116 Property, Plant and Equipment, AASB 13 Fair Value Measurement and Queensland Treasury’s Non-Current Asset Policies (NCAP) 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 impairment loss where applicable. In respect of the above mentioned asset classes, the cost of items acquired during the financial year has been judged by management of the department to materially represent their fair value at the end of the reporting period. Plant and equipment is measured at cost in accordance with the NCAP for the Queensland Public Sector. The carrying amounts for such plant and equipment at cost should not materially differ from their fair value. Property, plant and equipment classes measured at fair value are revalued on an annual basis either by appraisals undertaken by an independent professional valuer or by the use of an appropriate and relevant indices. For financial reporting purposes, the revaluation process is managed by a team in the department’s Finance and Corporate Operations Branch, which determines the specific revaluation practices and procedures and provides instructions to the valuer. Use of Specific Appraisals The department comprehensively values its land, building and infrastructure assets using a rolling revaluation program which ensures all material assets are valued by an independent professional valuer at least once every five years. The date of the last comprehensive valuation was 31 March 2016. If a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class of asset may have changed by 20% or more from one reporting period to the next), it is subject to independent valuation in the reporting period, where practicable, regardless of the timing of the previous revaluation. Use of Indices Where assets have not been specifically appraised in the reporting period, their previous valuations are materially kept up-to-date via the application of relevant indices. The index applied is based on market value movements for the current financial year. The department ensures that the application of such indices would result in a valid estimation of the asset’s fair value at reporting date. The State Valuation Service (SVS) supplies the indices and provides assurance of their robustness, validity and appropriateness for application to the relevant assets. SVS also test the indices for reasonableness by applying the indices to a sample of assets and comparing the results to similar assets that have been valued. At year end, management assess the relevance and suitability of indices provided by SVS based on the departments’ own particular circumstances. Accounting for Changes in Fair Value 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. The majority of the department's building and infrastructure assets are revalued using a cost valuation approach (that is depreciated replacement cost). Revaluations are recorded using the 'gross method' meaning accumulated depreciation is adjusted to equal the difference between the gross amount and the carrying amount, after taking into account accumulated impairment losses. A small number of assets are valued using a market based approach but are still recorded using the gross method as they are immaterial to the class of assets.



28 of 65





The valuation methodology for controlled assets is as follows:

Land The valuation of land has been undertaken using a direct comparison approach (market value approach) using observable data on recent property sales in the general location of the department’s land. Professional judgement (in accordance with professional valuation principles) is then applied in determining a reasonable fair value for each land parcel taking into consideration any restriction on the use of the land (for example, council zoning and tenure type) which may exist and any differences in topography or characteristic between the land being valued and the property sales used as the basis of valuation. For those parcels not comprehensively re-valued by an independent valuer within the year, the valuer’s provide an index for each land parcel based on market movements. Buildings and Infrastructure The majority of the value of the buildings and infrastructure asset classes is comprised of assets which would be considered specialised with limited alternative uses or are built on restricted land. It has been determined that as there is no active and liquid market available to determine the fair value of the assets, the fair value has been deemed to be its depreciated replacement cost. The valuation process included a physical inspection of the assets in which the valuer’s made an assessment of the current condition of the asset and its expected remaining useful life. While the gross replacement cost of the asset is determined by a schedule of building rates supplemented by industry cost publications, significant adjustments have been made based on the condition and remaining useful life assessment of the individual assets. For those buildings not comprehensively re-valued by an independent valuer within the year, the valuer’s provide an index that is most appropriate for the type of asset. Most commonly, general non-residential construction is indexed using the Queensland Treasury Office of Economic and Statistical Research Implicit Price Deflator.

C4 INTANGIBLE ASSETS C4-1 INTANGIBLE ASSETS – BALANCES AND RECONCILIATIONS OF CARRYING AMOUNT

Intangible Assets Reconciliation 30 June 2016

Internally Generated

Software Purchased

Software Software Work

in Progress Total

$’000 $’000 $’000 $’000 Gross 75,703 1,979 6,190 83,872 Less: accumulated amortisation (45,188) (1,401) .. (46,588) Total 30,516 578 6,190 37,284 Carrying amount at 1 July 2015 33,617 749 2,149 36,516 Acquisitions .. .. .. .. Acquisitions through internal development .. .. 6,831 6,831 Transfers between classes 2,790 .. (2,790) .. Disposals .. .. .. .. Amortisation (5,891) (171) .. (6,062) Carrying amount at 30 June 2016 30,516 578 6,190 37,284



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The valuation methodology for controlled assets is as follows:

Land The valuation of land has been undertaken using a direct comparison approach (market value approach) using observable data on recent property sales in the general location of the department’s land. Professional judgement (in accordance with professional valuation principles) is then applied in determining a reasonable fair value for each land parcel taking into consideration any restriction on the use of the land (for example, council zoning and tenure type) which may exist and any differences in topography or characteristic between the land being valued and the property sales used as the basis of valuation. For those parcels not comprehensively re-valued by an independent valuer within the year, the valuer’s provide an index for each land parcel based on market movements. Buildings and Infrastructure The majority of the value of the buildings and infrastructure asset classes is comprised of assets which would be considered specialised with limited alternative uses or are built on restricted land. It has been determined that as there is no active and liquid market available to determine the fair value of the assets, the fair value has been deemed to be its depreciated replacement cost. The valuation process included a physical inspection of the assets in which the valuer’s made an assessment of the current condition of the asset and its expected remaining useful life. While the gross replacement cost of the asset is determined by a schedule of building rates supplemented by industry cost publications, significant adjustments have been made based on the condition and remaining useful life assessment of the individual assets. For those buildings not comprehensively re-valued by an independent valuer within the year, the valuer’s provide an index that is most appropriate for the type of asset. Most commonly, general non-residential construction is indexed using the Queensland Treasury Office of Economic and Statistical Research Implicit Price Deflator.

C4 INTANGIBLE ASSETS C4-1 INTANGIBLE ASSETS – BALANCES AND RECONCILIATIONS OF CARRYING AMOUNT



Software Purchased


in Progress Total

$’000 $’000 $’000 $’000 Gross 75,703 1,979 6,190 83,872 Less: accumulated amortisation (45,188) (1,401) .. (46,588) Total 30,516 578 6,190 37,284 Carrying amount at 1 July 2015 33,617 749 2,149 36,516 Acquisitions .. .. .. .. Acquisitions through internal development .. .. 6,831 6,831 Transfers between classes 2,790 .. (2,790) .. Disposals .. .. .. .. Amortisation (5,891) (171) .. (6,062) Carrying amount at 30 June 2016 30,516 578 6,190 37,284

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C4 INTANGIBLE ASSETS (continued) C4-1 INTANGIBLE ASSETS – BALANCES AND RECONCILIATIONS OF CARRYING AMOUNT

(continued)



Software Purchased


in Progress Total

$’000 $’000 $’000 $’000 Gross 72,914 1,979 2,150 77,043 Less: accumulated amortisation (39,297) (1,229) .. (40,526) Total 33,617 749 2,150 36,516 Carrying amount at 1 July 2014 28,690 647 5,235 34,573 Acquisitions .. 46 .. 46 Acquisitions through internal development .. .. 7,514 7,514 Transfers between classes 10,399 201 (10,600) .. Disposals (63) .. .. (63) Amortisation (5,409) (145) .. (5,554) Carrying amount at 30 June 2015 33,617 749 2,149 36,516 C4-2 ACCOUNTING POLICIES

Recognition and measurement of Intangible Assets Intangible assets with a cost or other value equal to or greater than $100,000 are recognised in the financial statements. Items with a lesser value are expensed in the year of acquisition. Each intangible asset, less any anticipated residual value is amortised over its estimated useful life to the department. The residual value is zero for all of the department’s intangible assets. It has been determined that there is not an active market for any of the department’s intangible assets. As such, the assets are recognised and carried at cost less accumulated amortisation and accumulated impairment losses. Purchased software The purchase cost of software is capitalised and is amortised on a straight-line basis over the period of expected benefit to the department. Internally generated software Expenditure on research activities related to internally generated intangible assets is recognised as an expense in the period in which it is incurred. Costs associated with the development of computer software have been capitalised and are amortised on a straight-line basis over the period of expected benefit to the department. Amortisation of intangible Assets Key Judgement and Estimate All intangible assets of the department have finite useful lives and are amortised on a straight-line basis. For each class of intangible asset, the following useful life ranges are used:

Intangible asset class Useful life range Purchased software 4 – 10 years Internally generated software 5 – 16 years



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C5 PAYABLES

2016 2015 $’000 $’000 Current Trade creditors 370 3,367 Accrued expenses 14,512 11,252 Grants and subsidies payable 6,134 4,972 Deferred appropriation/equity payable to the Consolidated Fund 7,956 1,854 Other 681 362 Total 29,653 21,807

Accounting Policy - Payables Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the nominal amount i.e. agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled on 30 day terms.

C6 ACCRUED EMPLOYEE BENEFITS 2016 2015 $’000 $’000 Wages outstanding 3,311 1,572 Annual leave levy payable 5,635 5,354 Long service leave levy payable 1,016 954 Other 4 (1) Total 9,965 7,880

Accounting policy – Accrued employee benefits No provision for annual leave or long service leave is recognised in the department’s financial statements as the liability is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.

C7 OTHER CURRENT LIABILITIES 2016 2015 $’000 $’000 Current Unearned revenue 11,868 11,357 Deposits held for other agencies land purchases 5,318 228 Other 190 145 Total 17,376 11,730

Accounting policy – Unearned Revenue The department recognises unearned revenue or revenue received in advance of the delivery of the supply of goods and/or services. Revenue is then recognised as the goods and/or service is provided.



30 of 65



C5 PAYABLES

2016 2015 $’000 $’000 Current Trade creditors 370 3,367 Accrued expenses 14,512 11,252 Grants and subsidies payable 6,134 4,972 Deferred appropriation/equity payable to the Consolidated Fund 7,956 1,854 Other 681 362 Total 29,653 21,807

Accounting Policy - Payables Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the nominal amount i.e. agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled on 30 day terms.

C6 ACCRUED EMPLOYEE BENEFITS 2016 2015 $’000 $’000 Wages outstanding 3,311 1,572 Annual leave levy payable 5,635 5,354 Long service leave levy payable 1,016 954 Other 4 (1) Total 9,965 7,880

Accounting policy – Accrued employee benefits No provision for annual leave or long service leave is recognised in the department’s financial statements as the liability is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.

C7 OTHER CURRENT LIABILITIES 2016 2015 $’000 $’000 Current Unearned revenue 11,868 11,357 Deposits held for other agencies land purchases 5,318 228 Other 190 145 Total 17,376 11,730

Accounting policy – Unearned Revenue The department recognises unearned revenue or revenue received in advance of the delivery of the supply of goods and/or services. Revenue is then recognised as the goods and/or service is provided.

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C8 EQUITY C8-1 APPROPRIATIONS RECOGNISED IN EQUITY

2016 2015

$’000 $’000

Reconciliation of payments from Consolidated Fund to Equity Adjustment Budgeted equity adjustment appropriation 10,051 4,572 Transfers from/(to) other headings – Departmental Services (6,321) 2,791 Lapsed appropriation (762) .. Total equity adjustment receipts/(payments) 2,968 7,363 Less: Opening balance of equity adjustment receivable .. (2,750) Equity adjustment recognised in Contributed Equity 2,968 4,613

C8-2 ASSET REVALUATION SURPLUS BY CLASS

2016 2015 $’000 $’000 Buildings Balance at 1 July 20,417 11,040 Revaluation increments/(decrements) 1,368 9,377 Balance as at 30 June 21,785 20,417 Infrastructure Balance at 1 July 13,764 13,448 Revaluation increments/(decrements) 522 316 Balance as at 30 June 14,286 13,764 Total 36,071 34,181

Accounting Policy – Asset Revaluation Surplus by Class The asset revaluation surplus represents the net effect of upward and downward revaluations of assets to fair-value.



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SECTION 4

WHAT WE LOOK AFTER ON BEHALF OF WHOLE-OF-GOVERNMENT AND THIRD PARTIES

D1 ADMINISTERED ITEMS

The department administers, but does not control, certain resources on behalf of the Government. In doing so, it has responsibility and is accountable for administering related transactions and items, but does not have the discretion to deploy the resources for the achievement of the department’s objectives. All accounting policies apply to administered items unless otherwise stated in this note. Major administered revenues include fees from mineral and petroleum rentals, resource tenure applications, titles lodgement fees and revenue from state land. The principal resource administered by the department is state-owned land, which includes leasehold land, land under roads, unallocated state land and reserves.

D2 RECONCILIATION OF PAYMENTS FROM CONSOLIDATED FUND

2016 2015 $’000 $’000

Reconciliation of payments from Consolidated Fund to Administered Appropriated Revenue Recognised in Operating Result

Budgeted administered appropriation revenue 1,220 1,220 Transfers from/(to) other headings (120) ..

Total Appropriation Receipts (cash) 1,100 1,220 Administered appropriation revenue recognised in the Statement of Comprehensive Income 1,100 1,220

Reconciliation of payments from Consolidated Fund to Equity Adjustment Recognised in Contributed Equity

Budgeted equity adjustment appropriation (120) (120) Transfers from/(to) other headings 120 .. Total administered equity adjustment receipts/(payments) .. (120) Equity adjustment recognised in Contributed Equity .. (120)

D3 PROPERTY AND OTHER TERRITORAL REVENUE

2016 2015 $’000 $’000 Property and territorial revenue 153,726 156,756 Riverine quarry material royalties 968 1,125 Total 154,694 157,882

Accounting Policy – Property and other territorial revenue The department recognises property and other territorial revenue when the revenue has been earned and can be measured reliably with a sufficient degree of certainty. Unearned revenue is recognised if the revenue has been invoiced but not yet earned – refer to Note D9.

D4 GRANTS AND SUBSIDIES

2016 2015 $’000 $’000

Land grants to external bodies 8,460 24,092 Grants to Commissions 1,100 1,100 Total 9,560 25,192



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SECTION 4

WHAT WE LOOK AFTER ON BEHALF OF WHOLE-OF-GOVERNMENT AND THIRD PARTIES

D1 ADMINISTERED ITEMS

The department administers, but does not control, certain resources on behalf of the Government. In doing so, it has responsibility and is accountable for administering related transactions and items, but does not have the discretion to deploy the resources for the achievement of the department’s objectives. All accounting policies apply to administered items unless otherwise stated in this note. Major administered revenues include fees from mineral and petroleum rentals, resource tenure applications, titles lodgement fees and revenue from state land. The principal resource administered by the department is state-owned land, which includes leasehold land, land under roads, unallocated state land and reserves.

D2 RECONCILIATION OF PAYMENTS FROM CONSOLIDATED FUND

2016 2015 $’000 $’000

Reconciliation of payments from Consolidated Fund to Administered Appropriated Revenue Recognised in Operating Result

Budgeted administered appropriation revenue 1,220 1,220 Transfers from/(to) other headings (120) ..

Total Appropriation Receipts (cash) 1,100 1,220 Administered appropriation revenue recognised in the Statement of Comprehensive Income 1,100 1,220

Reconciliation of payments from Consolidated Fund to Equity Adjustment Recognised in Contributed Equity

Budgeted equity adjustment appropriation (120) (120) Transfers from/(to) other headings 120 .. Total administered equity adjustment receipts/(payments) .. (120) Equity adjustment recognised in Contributed Equity .. (120)

D3 PROPERTY AND OTHER TERRITORAL REVENUE

2016 2015 $’000 $’000 Property and territorial revenue 153,726 156,756 Riverine quarry material royalties 968 1,125 Total 154,694 157,882

Accounting Policy – Property and other territorial revenue The department recognises property and other territorial revenue when the revenue has been earned and can be measured reliably with a sufficient degree of certainty. Unearned revenue is recognised if the revenue has been invoiced but not yet earned – refer to Note D9.

D4 GRANTS AND SUBSIDIES

2016 2015 $’000 $’000

Land grants to external bodies 8,460 24,092 Grants to Commissions 1,100 1,100 Total 9,560 25,192

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D5 OTHER EXPENSES

2016 2015 $’000 $’000 Commissions 3,506 4,184 Discounts on early settlement of finance leases 194 300 Impairment losses 10,171 4,623 Other 421 298 Total 14,293 9,405

D6 RECEIVABLES

2016 2015 $’000 $’000 Current Trade debtors 618 637 Rent receivable 7,111 6,168 Operating leases (1) 43,076 35,144 Finance leases (2) 5,721 5,868 Interest receivable 575 646 57,102 48,464 Less: Allowance for impairment of receivables (3) (30,218) (20,047) 26,884 28,418 Prepayments to Consolidated Fund (4) 22,895 33,128 Valuation fees receivable 19,992 18,278 Other 848 857 Total 70,619 80,680

Non-current

Finance leases (2) One to five years 18,232 19,745 Greater than five years 14,854 16,771 Total 33,086 36,516 (1) The department issues operating leases, both term and perpetual, including permits and licences, as conditional contracts under the provision of the Land Act 1994. Rent is determined as a percentage of unimproved capital value, dependent on the purpose and category of the allocated asset. Revenue is recognised in the applicable accounting period and lease receipts are recognised as a reduction of the receivable. (2) The department issues finance leases under the provisions of the Land Act 1994 whereby the lessee elects to pay the purchase price over a number of years. At the inception of the lease, the assets are disposed and a receivable is raised for the present value of the minimum lease payments. (3) The allowance for impairment of receivables includes $23.750 million (2015: $15.339 million) for operating leases and $5.742 million (2015: $3.932 million) for rent receivables. (4) Represents remittances to the Consolidated Fund that relate to proposals and deposits on administered land sales before the transactions are legally finalised.

Various legislation on which some of these receivables are raised, contain hardship provisions enabling clients to apply for hardship relief in the payment of their debts. Collateral in the form of security over property is held for finance lease receivables. On full repayment of finance leases, the title for the relevant land is transferred to the purchaser.



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D6 RECEIVABLES (continued)

Leases A distinction is made in the financial statements between finance leases that effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership, and operating leases, under which the lessor retains substantially all risks and benefits. The department is not a party to any material finance lease agreements for the acquisition of non-current physical assets. Operating lease payments are representative of the pattern of benefits derived from the leased assets and are expensed in the periods in which they are incurred. Incentives received when entering into operating leases are recognised as liabilities. Lease payments are allocated between rental expense and reduction of the liability over the lease term on a straight-line basis. Where the department is the lessor, operating lease receipts are recognised as revenue in the applicable accounting period. Proposals and deposits Proposals and deposits are recognised upon receipt and represent funds paid by applicants in relation to prospective land dealings and are held by the department contingent upon the applicant progressing the dealing to finalisation. In the event dealings are not finalised, the department returns the defaulted monies to the original applicant.

D6-1 IMPAIRMENT OF RECEIVABLES

2016 2015 $’000 $’000 Movements in the allowance of provision for impairment Notes Balance at 1 July 20,047 15,217 Increase/(decrease) in allowance recognised in operating result 10,171 4,623 Other .. 205 Balance at 30 June (1) D6 30,218 20,047 (1) Includes bad debts written off of $0.155 million (2015: $0.097 million) and previous impaired amounts collected.

Overdue 2016 Ageing of Past Due but not Impaired Receivables

Less than 30 days

30-60 days

61-90 days



2015 Ageing of Past Due but not Impaired Receivables

Receivables 789 2,690 488 757 4,724 Total 789 2,690 488 757 4,724



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D6 RECEIVABLES (continued)

Leases A distinction is made in the financial statements between finance leases that effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership, and operating leases, under which the lessor retains substantially all risks and benefits. The department is not a party to any material finance lease agreements for the acquisition of non-current physical assets. Operating lease payments are representative of the pattern of benefits derived from the leased assets and are expensed in the periods in which they are incurred. Incentives received when entering into operating leases are recognised as liabilities. Lease payments are allocated between rental expense and reduction of the liability over the lease term on a straight-line basis. Where the department is the lessor, operating lease receipts are recognised as revenue in the applicable accounting period. Proposals and deposits Proposals and deposits are recognised upon receipt and represent funds paid by applicants in relation to prospective land dealings and are held by the department contingent upon the applicant progressing the dealing to finalisation. In the event dealings are not finalised, the department returns the defaulted monies to the original applicant.

D6-1 IMPAIRMENT OF RECEIVABLES

2016 2015 $’000 $’000 Movements in the allowance of provision for impairment Notes Balance at 1 July 20,047 15,217 Increase/(decrease) in allowance recognised in operating result 10,171 4,623 Other .. 205 Balance at 30 June (1) D6 30,218 20,047 (1) Includes bad debts written off of $0.155 million (2015: $0.097 million) and previous impaired amounts collected.

Overdue 2016 Ageing of Past Due but not Impaired Receivables

Less than 30 days

30-60 days

61-90 days



2015 Ageing of Past Due but not Impaired Receivables

Receivables 789 2,690 488 757 4,724 Total 789 2,690 488 757 4,724

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D7 PROPERTY, PLANT, EQUIPMENT AND RELATED DEPRECIATION

D7-1 PROPERTY, PLANT AND EQUIPMENT BALANCES AND RECONCILIATION OF CARRYING AMOUNT

Property, Plant and Equipment Reconciliation 30 June 2016 Land Buildings Infrastructure Total

$’000 $’000 $’000 $’000 Gross 62,257,764 13,813 117 62,271,694 Less: Accumulated depreciation .. (7,663) (14) (7,677) Carrying amount at 30 June 2016 62,257,764 6,150 103 62,264,017 Carrying amount at 1 July 2015 56,911,223 5,977 103 56,917,303 Disposals (69,686) .. .. (69,686) Assets reclassified as held for sale (3,984) .. .. (3,984) Transfers in from external entities 373,745 .. .. 373,745 Transfers out to external entities (58,626) .. .. (58,626) Revaluation increments/(decrements) 5,105,092 320 2 5,105,414 Depreciation .. (147) (2) (149) Carrying amount at 30 June 2016 62,257,764 6,150 103 62,264,017

Property, Plant and Equipment Reconciliation 30 June 2015 Land Buildings Infrastructure Total

$’000 $’000 $’000 $’000 Gross amount at 1 July 2014 56,911,223 13,346 115 56,924,684 Less: Accumulated depreciation .. (7,369) (12) (7,381) Carrying amount at 30 June 2015 56,911,223 5,977 103 56,917,303 Carrying amount at 1 July 2014 53,268,696 4,911 101 53,273,708 Disposals (33,730) .. .. (33,730) Transfers in from external entities 335,832 .. .. 335,832 Transfers out to external entities (57,704) .. .. (57,704) Revaluation increments/(decrements) 3,398,129 1,180 4 3,399,313 Depreciation .. (114) (2) (116) Carrying amount at 30 June 2015 56,911,223 5,977 103 56,917,303

All administered land, buildings and infrastructure is valued at fair value in accordance with AASB 13 Fair Value Measurement.

Administered land comprises: 2016 $’000

Land under roads 52,265,108 Reserves 7,310,456 Leasehold land 1,531,558 Unallocated state land 963,521 Other 187,121 Total 62,257,764



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D7 PROPERTY, PLANT, EQUIPMENT AND RELATED DEPRECIATION (continued) D7-2 REVALUATION OF NON-CURRENT PHYSICAL ASSETS

The valuation methodology for material administered assets is as follows: Land under roads In Queensland, land under roads not subject to freehold or leasehold title or reserve tenure vests in the State of Queensland as per the Land Act 1994. The department administers the Land Act 1994 on behalf of the state and land under roads is considered an administered asset of the department. Land under roads subject to freehold or leasehold title or reserve tenure is recorded by the entity that holds the freehold or leasehold title or trusteeship of a reserve. Transfers of land under roads from other agencies, such as the Department of Transport and Main Roads, are treated as a transaction with owners and are recorded in contributed equity. Transfers from and to other entities are treated as revenue and expenditure respectively, using fair value, at time of transfer. The englobo valuation method is used by the department to value land under roads. This method inherently reflects the characteristics that would be taken into account by a potential buyer of land under roads that is made available for sale (after having the legislative restriction removed). Englobo valuation is inclusive of all potential land uses and reflects that if removal of the legislative restriction occurred, land under roads would revert back to its original un-subdivided state. This methodology is appropriate for all land under roads, regardless of its location or whatever type of road infrastructure (if any) is currently on it. The starting point for the englobo valuation is the statutory land valuations determined by the Valuer-General for every rateable property in each local government area, which are reviewed annually. Key Judgement and Estimate The englobo valuation of land under roads in each local government area is calculated by first determining the aggregate statutory value of freehold and leasehold land in that local government area, dividing that aggregate statutory value by the corresponding land area, then applying that averaged rate (dollars per hectare or square metre) to the total area of land under roads in that local government area. The value for land under roads recognised by the department comprises the total of land under roads valuations across all local government areas. In terms of the AASB 13 fair value hierarchy (refer to note D1) the department categorises the land under roads valuation as being level 3. It will continue to be level 3 under the existing methodology. Sensitivity in the valuation is directly related to the unimproved values for land in each local government area. Reserves and unallocated state land Reserved land is land used for community purposes such as cemeteries, show grounds, parks, public halls and stock routes. Unallocated state land refers to the balance of all Queensland land not otherwise categorised. As there is no directly observable market for the valuation of these categories, the following method is used. Reserved and unallocated state land has been valued according to how a potential buyer would price it assuming it is in a state in which it could be sold. Each parcel of land is valued using professional judgement based on direct comparison to recent property sales in the general location of the department’s land. Particular consideration is given to those recent property sales where the land is of a similar topography, or in similar circumstances (e.g. limitations), to the department’s land. In terms of the AASB 13 fair value hierarchy (refer to note E1) the department categorises these valuations as being level 3. It will continue to be level 3 under the existing methodology. Sensitivity in the valuation relates to both the property sales values and the manner in which professional judgement is applied in determining the fair value of the department’s land.



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D7 PROPERTY, PLANT, EQUIPMENT AND RELATED DEPRECIATION (continued) D7-2 REVALUATION OF NON-CURRENT PHYSICAL ASSETS

The valuation methodology for material administered assets is as follows: Land under roads In Queensland, land under roads not subject to freehold or leasehold title or reserve tenure vests in the State of Queensland as per the Land Act 1994. The department administers the Land Act 1994 on behalf of the state and land under roads is considered an administered asset of the department. Land under roads subject to freehold or leasehold title or reserve tenure is recorded by the entity that holds the freehold or leasehold title or trusteeship of a reserve. Transfers of land under roads from other agencies, such as the Department of Transport and Main Roads, are treated as a transaction with owners and are recorded in contributed equity. Transfers from and to other entities are treated as revenue and expenditure respectively, using fair value, at time of transfer. The englobo valuation method is used by the department to value land under roads. This method inherently reflects the characteristics that would be taken into account by a potential buyer of land under roads that is made available for sale (after having the legislative restriction removed). Englobo valuation is inclusive of all potential land uses and reflects that if removal of the legislative restriction occurred, land under roads would revert back to its original un-subdivided state. This methodology is appropriate for all land under roads, regardless of its location or whatever type of road infrastructure (if any) is currently on it. The starting point for the englobo valuation is the statutory land valuations determined by the Valuer-General for every rateable property in each local government area, which are reviewed annually. Key Judgement and Estimate The englobo valuation of land under roads in each local government area is calculated by first determining the aggregate statutory value of freehold and leasehold land in that local government area, dividing that aggregate statutory value by the corresponding land area, then applying that averaged rate (dollars per hectare or square metre) to the total area of land under roads in that local government area. The value for land under roads recognised by the department comprises the total of land under roads valuations across all local government areas. In terms of the AASB 13 fair value hierarchy (refer to note D1) the department categorises the land under roads valuation as being level 3. It will continue to be level 3 under the existing methodology. Sensitivity in the valuation is directly related to the unimproved values for land in each local government area. Reserves and unallocated state land Reserved land is land used for community purposes such as cemeteries, show grounds, parks, public halls and stock routes. Unallocated state land refers to the balance of all Queensland land not otherwise categorised. As there is no directly observable market for the valuation of these categories, the following method is used. Reserved and unallocated state land has been valued according to how a potential buyer would price it assuming it is in a state in which it could be sold. Each parcel of land is valued using professional judgement based on direct comparison to recent property sales in the general location of the department’s land. Particular consideration is given to those recent property sales where the land is of a similar topography, or in similar circumstances (e.g. limitations), to the department’s land. In terms of the AASB 13 fair value hierarchy (refer to note E1) the department categorises these valuations as being level 3. It will continue to be level 3 under the existing methodology. Sensitivity in the valuation relates to both the property sales values and the manner in which professional judgement is applied in determining the fair value of the department’s land.

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D7 PROPERTY, PLANT, EQUIPMENT AND RELATED DEPRECIATION (continued) D7-2 REVALUATION OF NON-CURRENT PHYSICAL ASSETS (continued)

Leasehold land Leasehold land is land owned by the state and provided to lessees for varying terms or in perpetuity in return for regular payment. Leased land includes pastoral, residential, business, government, charitable, clubs and communication tenures. All leasehold land is now valued and reported using the present value of the future income of the leases. The department considers the present value method to better represent the fair value of the land in accordance with the income approach provided by AASB 13 Fair Value Measurement and market participant buying assumptions. Historically the leases to these properties are renewed for identical purposes. The department has therefore assumed, in the absence of factors suggesting a different use by market participants, that the current use is its highest and best use. Key Judgement and Estimate The present value of the leases is calculated by:

Determining the underlying unimproved value of each leased land parcel using a direct comparison market valuation approach which provides observable data on recent property sales;

Multiplying the unimproved value of the parcels by their relevant annual payment (“rental”) rates over a 30 year term with a residual. Payment rates are calculated at a commercial return rate. The 30 year term plus residual is considered the market participants’ expectation for a comparable ongoing or perpetual lease;

Discounting this result by a market-based cost of capital rate applicable to the land category, which has been provided by Queensland Treasury Corporation.

In terms of the AASB 13 fair value hierarchy (refer to note E1) the department categorises these valuations as being level 3. It will continue to be level 3 under the existing methodology. Sensitivity in the valuation of leasehold land is directly related to changes in the unimproved valuation of the land on which regulated lease payments are determined.

All administered land, buildings and infrastructure is classified within the level 3 fair value input hierarchy.

D8 PAYABLES

2016 2015 Current $’000 $’000 Transfer of administered item revenue to government payable 42,914 44,238 Accrued expenses 1,684 1,759 Total 44,598 45,998

D9 OTHER CURRENT LIABILITIES

2016 2015 $’000 $’000 Unearned revenue 17,172 17,544 Other 2,805 918 Total 19,978 18,462



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D10 ASSET REVALUATION SURPLUS BY CLASS

2016 2015 $’000 $’000 Buildings Balance at 1 July 1,293 113 Revaluation increments/(decrements) 320 1,180 Balance as at 30 June 1,613 1,293 Infrastructure Balance at 1 July 16 12 Revaluation increments/(decrements) 2 4 Balance as at 30 June 18 16 Total 1,631 1,309


D11 TRUST TRANSACTIONS AND BALANCES

The department holds in trust mining security deposits as required by the Environment Protection Act 1994 to cover the rehabilitation liability should a mining leaseholder fail to undertake rehabilitation – refer to Note E3. As the department performs only a custodial role in respect of these transactions and balances, they are not recognised in the financial statements but are disclosed in the notes for the information of users.

2016 2015 $’000 $’000 Revenues 18,233 4,826 Expenses 6,024 4,100 Net surplus/(deficit) 12,209 726 Total current assets 43,779 31,570 Total current liabilities 994 649 Total non-current liabilities 42,785 30,921 Net assets .. ..

The Queensland Audit Office has incorporated trust transactions within the audit undertaken for the period.



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D10 ASSET REVALUATION SURPLUS BY CLASS

2016 2015 $’000 $’000 Buildings Balance at 1 July 1,293 113 Revaluation increments/(decrements) 320 1,180 Balance as at 30 June 1,613 1,293 Infrastructure Balance at 1 July 16 12 Revaluation increments/(decrements) 2 4 Balance as at 30 June 18 16 Total 1,631 1,309


D11 TRUST TRANSACTIONS AND BALANCES

The department holds in trust mining security deposits as required by the Environment Protection Act 1994 to cover the rehabilitation liability should a mining leaseholder fail to undertake rehabilitation – refer to Note E3. As the department performs only a custodial role in respect of these transactions and balances, they are not recognised in the financial statements but are disclosed in the notes for the information of users.

2016 2015 $’000 $’000 Revenues 18,233 4,826 Expenses 6,024 4,100 Net surplus/(deficit) 12,209 726 Total current assets 43,779 31,570 Total current liabilities 994 649 Total non-current liabilities 42,785 30,921 Net assets .. ..

The Queensland Audit Office has incorporated trust transactions within the audit undertaken for the period.

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SECTION 5

NOTES ABOUT RISKS AND OTHER ACCOUNTING UNCERTAINTIES

E1 FAIR VALUE MEASUREMENT

Accounting Policy Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly derived from observable inputs or estimated using another valuation technique. Observable inputs are publicly available data that are relevant to the characteristics of the assets/liabilities being valued. Observable inputs used by the department include, but are not limited to, published sales data for land and general office buildings. Unobservable inputs are data, assumptions and judgements that are not available publicly, but are relevant to the characteristics of the assets/liabilities being valued. Significant unobservable inputs used by the department include, but are not limited to, subjective adjustments made to observable data to take account of the characteristics/functionality of the department assets/liabilities, internal records of recent construction costs (and/or estimates of such costs) and assessments of physical condition and remaining useful life. Unobservable inputs are used to the extent that sufficient relevant and reliable observable inputs are not available for similar assets/liabilities. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use. Fair Value Measurement Hierarchy All assets and liabilities of the department for which fair value is measured or disclosed in the financial statements are categorised within the following fair value hierarchy, based on the data and assumptions used in the most recent specific appraisals: level 1 – represents fair value measurements that reflect unadjusted quoted market prices in active markets for

identical assets and liabilities; level 2 – represents fair value measurements that are substantially derived from inputs (other than quoted prices

included within level 1) that are observable, either directly or indirectly; and level 3 – represents fair value measurements that are substantially derived from unobservable inputs. None of the department’s valuations of assets or liabilities are eligible for categorisation into level 1 of the fair value hierarchy. There were no transfers of assets between fair value hierarchy levels during the period. All land, building and infrastructure assets held by the department are categorised within level 3 of the fair value hierarchy. The department does not recognise any financial assets or financial liabilities at fair value.



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E1 FAIR VALUE MEASUREMENT (continued) E1-1 LEVEL 3 FAIR VALUE MEASUREMENT – SIGNIFICANT VALUATION INPUTS AND IMPACTS

The following table outlines the significant unobservable valuation inputs and their potential impact on the valuation outcome for income producing Administered leasehold land measured at fair value and classified as Level 3 under the fair value hierarchy:

Description

Fair value at Possible alternative range for

significant inputs

Possible alternative range for significant inputs Impact of alternative

amounts for significant level 3 inputs

30 June 2016

30 June 2015 2016 2015

$’000 $’000

Leasehold Land 1,531,558 1,501,139

In relation to leasehold land

the present value discount rate applied.

6.5%-10.5% 7.5%-11.5%

Increase in discount rate used would decrease the

fair value. Reduction in discount

rate used would increase the fair value.

In relation to leasehold land adjustments to the rental rate

applied depending on type of lease.

0.75%-7% of unimproved

value of land


value of land

Increase in rental return rate would increase the

fair value.

Reduction in rental return rate used would decrease the fair value.

E2 FINANCIAL RISK DISCLOSURES E2-1 FINANCIAL INSTRUMENTS CATEGORIES

Financial assets and financial liabilities are recognised in the statement of financial position when the department becomes party to the contractual provisions of the financial instrument. No financial assets and financial liabilities have been offset and presented net in the Statement of Financial Position.

The department has the following categories of financial assets and financial liabilities: Notes 2016 2015 Financial assets $’000 $’000 Cash and cash equivalents C1 70,380 52,115 Receivables at amortised cost C2 22,659 19,213 Total 93,039 71,328 Financial liabilities Payables at amortised cost C5 29,653 21,807 Total 29,653 21,807



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E1 FAIR VALUE MEASUREMENT (continued) E1-1 LEVEL 3 FAIR VALUE MEASUREMENT – SIGNIFICANT VALUATION INPUTS AND IMPACTS

The following table outlines the significant unobservable valuation inputs and their potential impact on the valuation outcome for income producing Administered leasehold land measured at fair value and classified as Level 3 under the fair value hierarchy:

Description

Fair value at Possible alternative range for

significant inputs

Possible alternative range for significant inputs Impact of alternative

amounts for significant level 3 inputs

30 June 2016

30 June 2015 2016 2015

$’000 $’000

Leasehold Land 1,531,558 1,501,139

In relation to leasehold land

the present value discount rate applied.

6.5%-10.5% 7.5%-11.5%

Increase in discount rate used would decrease the

fair value. Reduction in discount

rate used would increase the fair value.

In relation to leasehold land adjustments to the rental rate

applied depending on type of lease.


value of land


value of land

Increase in rental return rate would increase the

fair value.

Reduction in rental return rate used would decrease the fair value.

E2 FINANCIAL RISK DISCLOSURES E2-1 FINANCIAL INSTRUMENTS CATEGORIES

Financial assets and financial liabilities are recognised in the statement of financial position when the department becomes party to the contractual provisions of the financial instrument. No financial assets and financial liabilities have been offset and presented net in the Statement of Financial Position.

The department has the following categories of financial assets and financial liabilities: Notes 2016 2015 Financial assets $’000 $’000 Cash and cash equivalents C1 70,380 52,115 Receivables at amortised cost C2 22,659 19,213 Total 93,039 71,328 Financial liabilities Payables at amortised cost C5 29,653 21,807 Total 29,653 21,807

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E2 FINANCIAL RISK DISCLOSURES (continued) E2-1 FINANCIAL INSTRUMENTS CATEGORIES (continued)

The department Administers the following categories of financial assets and financial liabilities: Notes 2016 2015 Financial assets $’000 $’000 Cash and cash equivalents 5,418 5,284 Receivables at amortised cost

Current D6 70,619 80,680 Non-current D6 33,086 36,516

Total 109,123 122,480 Financial liabilities Payables at amortised cost D8 44,598 45,998 Total 44,598 45,998

E2-2 FINANCIAL RISK MANAGEMENT

(a) Risk Exposure The department’s activities expose it to a variety of financial risks – credit risk, liquidity risk and market risk (interest rate risk). Financial risk management is implemented pursuant to Government and departmental policy. These policies focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial performance of the department. All financial risk is managed under approved departmental financial management policies. The department utilises written principles for overall risk management, as well as policies covering specific areas. The department measures risk exposure using a variety of methods as follows:

Risk Exposure Definition Measurement Method

Credit risk – receivables

Credit risk exposure refers to the situation where the Department may incur financial loss as a result of another party to a financial instrument failing to discharge their obligation.

Ageing analysis, earnings at risk

Liquidity risk – payables

Liquidity risk refers to the situation where the Department may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

Sensitivity analysis

Market risk – Administered finance leases (interest rate risk)

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Interest rate sensitivity analysis

The department does not trade in foreign currency and is not materially exposed to commodity price changes or other market prices.

(b) Credit Risk The department manages credit risk through the use of a credit management strategy. This strategy aims to reduce the exposure to credit default by ensuring that the department invests in secure assets and monitors all funds owed on a timely basis. Exposure to credit risk is monitored on an ongoing basis. The carrying amount of receivables represents the maximum exposure to credit risk. No collateral is held as security and no credit enhancements relate to financial assets held by the department. (c) Liquidity Risk The department manages liquidity risk through the use of a liquidity management strategy. This strategy aims to reduce the exposure to liquidity risk by ensuring the department has sufficient funds available to meet employee and supplier obligations as they fall due. The department is exposed to liquidity risk through its payables and the risk by ensuring the department has sufficient funds available to meet employee and supplier obligations as they fall due. This is achieved by ensuring that minimum levels of cash are held within the various bank accounts so as to match the expected duration of the various employee and supplier liabilities.



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E2 FINANCIAL RISK DISCLOSURES (continued) E2-2 FINANCIAL RISK MANAGEMENT (continued)

The liquidity risk of financial liabilities relate to controlled payables of $29.653 million (2015: $21.807 million) and administered payables of $44.598 million (2015: $45.998 million) due in less than one year. The value of the financial liabilities is calculated based on undiscounted cash flows relating to the liabilities at reporting date. (d) Market Risk The department does not undertake any hedging in relation to interest risk and manages its risk as per the department's liquidity risk management strategy articulated in the department's Financial Management Practice Manual. The department performs an interest rate sensitivity analysis representing the outcome to the comprehensive income if interest rates would change by +/-1% from the year end rates applicable to the department’s financial assets. With all other variables held in constant, the Administered Activities would have a surplus and equity increase/(decrease) of $0.331 million (2015: $0.365 million). The impact of interest rate movement on the profit and equity has decreased in the current period due to a decrease in the value of finance leases.

E3 CONTINGENCIES

Litigation in progress As at 30 June the following claims against the department were filed in the courts or lodged with the department:

2016

Number of cases

2015 Number of cases

Supreme Court 9 11 Federal Court 5 1 District Court 2 1 Magistrates Court 9 2 Industrial Court 12 16 Land Court 3 4 Total 40 35

At reporting date, it is not possible to estimate any probable outcome of these claims or any financial effect. The department has received notification of 4 (2015: 5) claims which are not yet subject to court action. These cases may or may not result in subsequent litigation.

Native title claims over departmental land

At 30 June 2016, there remained 68 unresolved native title claims over lands (including offshore islands) either controlled or administered by the department. The claims cover an area of approximately 44% of the state. At reporting date it is not possible to make an estimate of any probable outcome of these claims, or of any financial effects.

Guarantees and undertakings

During 2015-16 the department has been party to an indemnity capped procurement arrangement. The contract is with a supplier of information technology infrastructure, software and related maintenance with liability and indemnity caps of various levels up to $10 million over the life of the contract. The contract is due to expire in June 2018 with a further option for extension. The provision of this guarantee is in accordance with contractual procedure and the likelihood of the guarantee being called upon is highly improbable.

Collingwood Park State Guarantee

The department is responsible for the administration of the Mineral Resources Act 1989. This Act provides a State Guarantee to owners of affected land at Collingwood Park:

To pay for any works necessary to stabilise the affected land if there is subsidence damage to the land; To repair any subsidence damage to the affected land if, in the Chief Executive's opinion, it is cost-effective for

the State to repair the damage; or To purchase the land at market value if the land is affected by subsidence damage and, in the Chief Executive's

opinion, it is not cost-effective for the State to repair the damage. At the reporting date it is not possible to determine the extent or timing of any potential financial effect of this State Guarantee.



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E2 FINANCIAL RISK DISCLOSURES (continued) E2-2 FINANCIAL RISK MANAGEMENT (continued)

The liquidity risk of financial liabilities relate to controlled payables of $29.653 million (2015: $21.807 million) and administered payables of $44.598 million (2015: $45.998 million) due in less than one year. The value of the financial liabilities is calculated based on undiscounted cash flows relating to the liabilities at reporting date. (d) Market Risk The department does not undertake any hedging in relation to interest risk and manages its risk as per the department's liquidity risk management strategy articulated in the department's Financial Management Practice Manual. The department performs an interest rate sensitivity analysis representing the outcome to the comprehensive income if interest rates would change by +/-1% from the year end rates applicable to the department’s financial assets. With all other variables held in constant, the Administered Activities would have a surplus and equity increase/(decrease) of $0.331 million (2015: $0.365 million). The impact of interest rate movement on the profit and equity has decreased in the current period due to a decrease in the value of finance leases.

E3 CONTINGENCIES

Litigation in progress As at 30 June the following claims against the department were filed in the courts or lodged with the department:

2016

Number of cases

2015 Number of cases

Supreme Court 9 11 Federal Court 5 1 District Court 2 1 Magistrates Court 9 2 Industrial Court 12 16 Land Court 3 4 Total 40 35

At reporting date, it is not possible to estimate any probable outcome of these claims or any financial effect. The department has received notification of 4 (2015: 5) claims which are not yet subject to court action. These cases may or may not result in subsequent litigation.

Native title claims over departmental land

At 30 June 2016, there remained 68 unresolved native title claims over lands (including offshore islands) either controlled or administered by the department. The claims cover an area of approximately 44% of the state. At reporting date it is not possible to make an estimate of any probable outcome of these claims, or of any financial effects.

Guarantees and undertakings

During 2015-16 the department has been party to an indemnity capped procurement arrangement. The contract is with a supplier of information technology infrastructure, software and related maintenance with liability and indemnity caps of various levels up to $10 million over the life of the contract. The contract is due to expire in June 2018 with a further option for extension. The provision of this guarantee is in accordance with contractual procedure and the likelihood of the guarantee being called upon is highly improbable.

Collingwood Park State Guarantee

The department is responsible for the administration of the Mineral Resources Act 1989. This Act provides a State Guarantee to owners of affected land at Collingwood Park:

To pay for any works necessary to stabilise the affected land if there is subsidence damage to the land; To repair any subsidence damage to the affected land if, in the Chief Executive's opinion, it is cost-effective for

the State to repair the damage; or To purchase the land at market value if the land is affected by subsidence damage and, in the Chief Executive's

opinion, it is not cost-effective for the State to repair the damage. At the reporting date it is not possible to determine the extent or timing of any potential financial effect of this State Guarantee.

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E3 CONTINGENCIES (continued) Financial Assurances for the rehabilitation of mine sites

Under the Environmental Protection Act 1994, financial assurances (security deposits and bank guarantees) are required for mining projects, to cover the rehabilitation liability should a mining leaseholder fail to undertake rehabilitation. The liability to undertake rehabilitation work remains the responsibility of the mining leaseholder. The state’s responsibility in regards to rehabilitation is limited to managing any potential public safety and health risks only. At reporting date, it is not possible to determine the extent or timing of any potential financial effect of this responsibility. At 30 June 2016, the department, on behalf of the State of Queensland, held bank guarantees totalling $5.665 billion (2015: $5.849 billion) and cash held in trust of $43.779 million (2015: $31.570 million) – refer to Note D11. Interest is recognised as a liability during the period the department has custody of the monies and paid out when the security deposit is returned. These assurances are in transition to the Department of Environment and Heritage Protection – refer to Note E5.

Volumetric Lease Bank Guarantees

Under the Land Act 1994, lessees of volumetric leases are required to provide a security in the form of a bank guarantee to be retained by the department to ensure compliance. The security together with the lease agreement commits the lessee to perform specific reparation conditions. As at 30 June the department holds bank guarantees of $24.829 million (2015: $25.772 million).

Vegetation Management Bank Guarantees

Under the Vegetation Management Act 1999 and Sustainable Planning Act 2009 (formerly Integrated Planning Act 1997), development applicants may be required to provide financial security as a means of meeting a particular aspect of a vegetation management code. The security together with the agreement commits the developer to providing a vegetation offset within 12 months. As at 30 June, the department holds bank guarantees of $1.877 million (2015: $1.877 million). Under the Regional Planning Interests Act 2014 bank guarantees are retained by the department to ensure compliance with specific requirements relating to protection decisions and compliance certificates for resource activities in strategic cropping areas. As at 30 June, the department holds bank guarantees of $2.369 million (2015: $2.369 million).

Contingent Assets

The department and Sunwater share a 8.827 hectare site at Rocklea. Various agreements have been entered into with Sunwater since 2001 regarding the future use and disposal of surplus land. A Deed of Variation to these agreements in 2009 established that, upon subdivision and sale of surplus land a freehold portion is to be transferred to the department at no cost; and proceeds arising from the sale of the surplus land are to go to Sunwater. The sale of surplus land is subject to various approvals from Brisbane City Council, leading to uncertainty about the timing of the sale and therefore the time at which the department would receive freehold title. For these reasons, it is not possible to provide a reliable estimate of the value of the land at balance date.

E4 COMMITMENTS

2016 2015 $’000 $’000 Non-Cancellable Operating Lease Commitments Commitments under operating leases at reporting date (inclusive of non-recoverable GST input tax credits) are payable: Not later than one year 13,618 18,981 Later than one year and not later than five years 14,002 45,721 Later than five years 20,713 45,995 Total 48,333 110,697

The decrease is due to the lease commitment relating to 1 William Street, which is disclosed as a contingent liability by Department of Housing and Public Works this year.



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E4 COMMITMENTS (continued)

Grants and Subsidies Commitments Grants and subsidies commitments (inclusive of non-recoverable GST input tax credits), committed to provide at reporting date, but not recognised in the accounts: Not later than one year 37,305 44,888 Later than one year and not later than five years 15,409 12,388 Total 52,714 57,276

Other Expenditure Commitments Other expenditure committed at the end of the period but not recognised in the accounts: Not later than one year 28,815 27,976 Later than one year and not later than five years 4,655 4,000

Total 33,470 31,976

E5 EVENTS AFTER THE BALANCE DATE

Financial Assurance on mining projects transfer to Department of Environment and Heritage Protection

The department is working towards transferring Financial Assurances on mining projects from the Department of Natural and Resources and Mines (NRM) to the Department of Environment and Heritage Protection (EHP) in 2016-17, to address recommendations raised in the Queensland Audit Office report to parliament, Report 15: 2013-14 Environmental regulation of the resources and waste industries (Financial Assurances). These assurances have historically been administered in the Mineral & Energy Resources Location and Information Network (MERLIN) which is on a pathway to be decommissioned. As per note E3 (c), under the Environmental Protection Act 1994, financial assurances (security deposits and bank guarantees) are required for mining projects, to cover the rehabilitation liability should a mining leaseholder fail to undertake rehabilitation. The liability to undertake rehabilitation work remains the responsibility of the mining leaseholder. The state’s responsibility in regards to rehabilitation is limited to managing any potential public safety and health risks only. At reporting date, it is not possible to determine the extent or timing of any potential financial effect of this responsibility. At 30 June 2016, the department, on behalf of the State of Queensland, held bank guarantees totalling $5.665 billion (2015: $5.849 billion) and cash held in trust of $43.779 million (2015: $31.570 million) – refer to Note D11. The department has been working with EHP throughout 2015-16 on the options and timing of this transfer and envisage it will begin in 2016-17.



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E4 COMMITMENTS (continued)

Grants and Subsidies Commitments Grants and subsidies commitments (inclusive of non-recoverable GST input tax credits), committed to provide at reporting date, but not recognised in the accounts: Not later than one year 37,305 44,888 Later than one year and not later than five years 15,409 12,388 Total 52,714 57,276

Other Expenditure Commitments Other expenditure committed at the end of the period but not recognised in the accounts: Not later than one year 28,815 27,976 Later than one year and not later than five years 4,655 4,000

Total 33,470 31,976

E5 EVENTS AFTER THE BALANCE DATE

Financial Assurance on mining projects transfer to Department of Environment and Heritage Protection

The department is working towards transferring Financial Assurances on mining projects from the Department of Natural and Resources and Mines (NRM) to the Department of Environment and Heritage Protection (EHP) in 2016-17, to address recommendations raised in the Queensland Audit Office report to parliament, Report 15: 2013-14 Environmental regulation of the resources and waste industries (Financial Assurances). These assurances have historically been administered in the Mineral & Energy Resources Location and Information Network (MERLIN) which is on a pathway to be decommissioned. As per note E3 (c), under the Environmental Protection Act 1994, financial assurances (security deposits and bank guarantees) are required for mining projects, to cover the rehabilitation liability should a mining leaseholder fail to undertake rehabilitation. The liability to undertake rehabilitation work remains the responsibility of the mining leaseholder. The state’s responsibility in regards to rehabilitation is limited to managing any potential public safety and health risks only. At reporting date, it is not possible to determine the extent or timing of any potential financial effect of this responsibility. At 30 June 2016, the department, on behalf of the State of Queensland, held bank guarantees totalling $5.665 billion (2015: $5.849 billion) and cash held in trust of $43.779 million (2015: $31.570 million) – refer to Note D11. The department has been working with EHP throughout 2015-16 on the options and timing of this transfer and envisage it will begin in 2016-17.

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E6 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 issued but with future commencement dates are 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.

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 be assessing whether its responsible Minister should be part of its KMP from 2016-17. If the responsible Minister is assessed as meeting the KMP definition, no associated remuneration figures will be disclosed by the department, as it does not provide the Minister’s remuneration. 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.

AASB 15 Revenue from Contracts with Customers This Standard will become effective from reporting periods beginning on or after 1 January 2018 and contains 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, such that 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. AASB 9 Financial Instruments and AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) These Standards will become effective from reporting periods beginning on or after 1 January 2018. The main impacts of these standards on the department are that they will change the requirements for the classification, measurement, impairment and disclosures associated with the department's financial assets. AASB 9 will introduce different criteria for whether financial assets can be measured at amortised cost or fair value. The department has commenced reviewing the measurement of its financial assets against the new AASB 9 classification and measurement requirements. However, as the classification of financial assets at the date of initial application of AASB 9 will depend on the facts and circumstances existing at that date, the department's conclusions will not be confirmed until closer to that time. At this stage, and assuming no change in the types of transactions the department enters into, all of the department's financial assets are expected to be required to be measured at fair value (instead of the measurement classifications presently used in Note C2-1). In the case of the department's current receivables, as they are short-term in nature, the carrying amount is expected to be a reasonable approximation of fair value. Changes in the fair value of those assets will be reflected in the department's operating result. Another impact of AASB 9 relates to calculating impairment losses for the department's receivables. Assuming no substantial change in the nature of the department's receivables, as they don't include a significant financing component, impairment losses will be determined according to the amount of lifetime expected credit losses. On initial adoption of AASB 9, the department will need to determine the expected credit losses for its receivables by comparing the credit risk at that time to the credit risk that existed when those receivables were initially recognised.



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E6 FUTURE IMPACT OF ACCOUNTING STANDARDS NOT YET EFFECTIVE (continued)

The department will not need to restate comparative figures for financial instruments on adopting AASB 9 as from 2018-19. However, changed disclosure requirements will apply from that time. A number of one-off disclosures will be required in the 2018-19 financial statements to explain the impact of adopting AASB 9. Assuming no change in the types of financial instruments that the department enters into, the most likely ongoing disclosure impacts are expected to relate to the credit risk of financial assets subject to impairment, and derecognition of these items. 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. AASB 2016-2 Amendments to Australian Accounting Standards - Disclosure Initiative: Amendments to AASB 107 From reporting periods beginning on or after 1 July 2017, this Standard amends AASB 107 Statement of Cash Flows and requires entities preparing financial statements in accordance with Tier 1 reporting requirements to provide additional disclosure that enable users of financial statements to evaluate changes in liabilities arising from financing activities. These disclosures will include both cash flows and non-cash changes between the opening and closing balance of the relevant liabilities and be disclosed by way of a reconciliation or roll forward as part of the notes to the statement of cash flows. The measurement of assets, liabilities, income and expenditure in the financial statements will be unaffected. AASB 16 Leases This Standard will become effective for reporting periods beginning on or after 1 January 2019. When applied, the standard supersedes AASB 117 Leases, AASB Interpretation 4 Determining whether an Arrangement contains a Lease, AASB Interpretation 115 Operating Leases – Incentives and AASB Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. Impact for Lessees Unlike AABS 117 Leases, AASB 16 introduces a single lease accounting model for lessees. Lessees will be required to recognise a right-of-use asset (representing rights to use the underlying leased asset) and a liability (representing the obligation to make lease payments) for all leases with a term of more than 12 months, unless the underlying assets are of low value. In effect, the majority of operating leases (as defined by the current AASB 117) will be reported on the statement of financial position under AASB 16. There will be a significant increase in assets and liabilities for agencies that lease assets. The impact on the reported assets and liabilities would be largely in proportion to the scale of the agency’s leasing activities. The right-of-use asset will be initially recognised at cost, consisting of the initial amount of the associated lease liability, plus any lease payments made to the lessor at or before the commencement date, less any lease incentive received, the initial estimate of restoration costs and any initial direct costs incurred by the lessee. The right-of-use asset will give rise to a depreciation expense. The lease liability will be initially recognised at an amount equal to the present value of the lease payments during the lease term that are not yet paid. Current operating lease rental payments will no longer be expensed in the Statement of Comprehensive Income. They will be apportioned between a reduction in the recognised lease liability and the implicit finance charge (the effective rate of interest) in the lease. The finance cost will also be recognised as an expense. AASB 16 allows a ‘cumulative approach’ rather than full retrospective application to recognising existing operating leases. If a lessee chooses to apply the ‘cumulative approach’, it does not need to restate comparative information. Instead, the cumulative effect of applying the standard is recognised as an adjustment to the opening balance of accumulated surplus (or other component of equity, as appropriate) at the date of initial application. The Department will await further guidance from Queensland Treasury on the transitional accounting method to be applied. The Department has not yet quantified the impact on the Statement of Comprehensive Income or the Statement of Financial Position of applying AASB 16 to its current operating leases, including the extent of additional disclosure required. Impact for Lessors Lessor accounting under AASB 16 remains largely unchanged from AASB 117. For finance leases, the lessor recognises a receivable equal to the net investment in the lease. Lease receipts from operating leases are recognised as income either on a straight-line basis or another systematic basis where appropriate.



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E6 FUTURE IMPACT OF ACCOUNTING STANDARDS NOT YET EFFECTIVE (continued)

The department will not need to restate comparative figures for financial instruments on adopting AASB 9 as from 2018-19. However, changed disclosure requirements will apply from that time. A number of one-off disclosures will be required in the 2018-19 financial statements to explain the impact of adopting AASB 9. Assuming no change in the types of financial instruments that the department enters into, the most likely ongoing disclosure impacts are expected to relate to the credit risk of financial assets subject to impairment, and derecognition of these items. 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. AASB 2016-2 Amendments to Australian Accounting Standards - Disclosure Initiative: Amendments to AASB 107 From reporting periods beginning on or after 1 July 2017, this Standard amends AASB 107 Statement of Cash Flows and requires entities preparing financial statements in accordance with Tier 1 reporting requirements to provide additional disclosure that enable users of financial statements to evaluate changes in liabilities arising from financing activities. These disclosures will include both cash flows and non-cash changes between the opening and closing balance of the relevant liabilities and be disclosed by way of a reconciliation or roll forward as part of the notes to the statement of cash flows. The measurement of assets, liabilities, income and expenditure in the financial statements will be unaffected. AASB 16 Leases This Standard will become effective for reporting periods beginning on or after 1 January 2019. When applied, the standard supersedes AASB 117 Leases, AASB Interpretation 4 Determining whether an Arrangement contains a Lease, AASB Interpretation 115 Operating Leases – Incentives and AASB Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. Impact for Lessees Unlike AABS 117 Leases, AASB 16 introduces a single lease accounting model for lessees. Lessees will be required to recognise a right-of-use asset (representing rights to use the underlying leased asset) and a liability (representing the obligation to make lease payments) for all leases with a term of more than 12 months, unless the underlying assets are of low value. In effect, the majority of operating leases (as defined by the current AASB 117) will be reported on the statement of financial position under AASB 16. There will be a significant increase in assets and liabilities for agencies that lease assets. The impact on the reported assets and liabilities would be largely in proportion to the scale of the agency’s leasing activities. The right-of-use asset will be initially recognised at cost, consisting of the initial amount of the associated lease liability, plus any lease payments made to the lessor at or before the commencement date, less any lease incentive received, the initial estimate of restoration costs and any initial direct costs incurred by the lessee. The right-of-use asset will give rise to a depreciation expense. The lease liability will be initially recognised at an amount equal to the present value of the lease payments during the lease term that are not yet paid. Current operating lease rental payments will no longer be expensed in the Statement of Comprehensive Income. They will be apportioned between a reduction in the recognised lease liability and the implicit finance charge (the effective rate of interest) in the lease. The finance cost will also be recognised as an expense. AASB 16 allows a ‘cumulative approach’ rather than full retrospective application to recognising existing operating leases. If a lessee chooses to apply the ‘cumulative approach’, it does not need to restate comparative information. Instead, the cumulative effect of applying the standard is recognised as an adjustment to the opening balance of accumulated surplus (or other component of equity, as appropriate) at the date of initial application. The Department will await further guidance from Queensland Treasury on the transitional accounting method to be applied. The Department has not yet quantified the impact on the Statement of Comprehensive Income or the Statement of Financial Position of applying AASB 16 to its current operating leases, including the extent of additional disclosure required. Impact for Lessors Lessor accounting under AASB 16 remains largely unchanged from AASB 117. For finance leases, the lessor recognises a receivable equal to the net investment in the lease. Lease receipts from operating leases are recognised as income either on a straight-line basis or another systematic basis where appropriate.

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SECTION 6 NOTES ABOUT OUR PERFORMANCE COMPARED TO BUDGET

F1 BUDGETARY REPORTING DISCLOSURES

This section discloses the department’s original published budgeted figures for 2015-16 compared to actual results, with explanations of major variances, in respect of the department’s Statement of Comprehensive Income, Statement of Financial Position and Statement of Cash Flows. The exception to this is where there is a classification difference of line items between the actual financial statements and the budgeted financial statements (as published in the 2015-16 department's Service Delivery Statements), the department has reclassified the budget figures accordingly.

F2 BUDGET TO ACTUAL COMPARISON – STATEMENT OF COMPREHENSIVE INCOME

Variance

Notes Original Budget

2016 $’000

Actual Result

2016 $’000

Variance $’000

Variance % of budget


Appropriation revenue 321,291 329,365 8,074 2.5% User charges and fees 118,783 119,101 318 0.3% Grants and contributions V1 7,600 6,619 (981) (12.9%) Other revenue 1,513 1,185 (328) (21.7%) Total Income from Continuing Operations 449,187 456,270 7,083 1.6% Expenses from Continuing Operations Employee expenses 236,879 242,083 5,204 2.2% Supplies and services 141,843 147,064 5,221 3.7% Grants and subsidies V2 46,803 41,731 (5,072) (10.8%) Depreciation and amortisation 15,561 16,939 1,378 8.9% Revaluation decrement .. 1,835 1,835 N/A Other expenses V3 8,101 9,410 1,309 16.2% Total Expenses from Continuing Operations 449,187 459,062 9,875 2.2% Operating Result from Continuing Operations .. (2,792) (2,792) N/A Operating Result for the Year Items not reclassified to Operating Result: Increase/(decrease) in asset revaluation surplus .. 1,889 1,889 N/A Total Other Comprehensive Income .. 1,889 1,889 N/A Total Comprehensive Income .. (903) (903) N/A



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(continued) F2-1 EXPLANATION OF MAJOR VARIANCES – COMPREHENSIVE INCOME V1. Grants and other contributions were lower than budgeted mainly due to a decrease of $4.5 million in Natural

Disaster Relief and Recovery Arrangements program as a result of a change in the funding arrangements with the Queensland Reconstruction Authority offset by an additional $2.048 million of Commonwealth Grant payments and an unbudgeted $1.729 million for Goods and services received at below fair value (Archiving services).

V2. Grants payments were lower than budgeted mainly due to a decrease of $4.5 million in Natural Disaster Relief and Recovery Arrangements program as a result of a change in the funding arrangements with the Queensland Reconstruction Authority.

V3. Other expenses is over budget mainly to do with $5.770 million deferred appropriation payable to the Consolidated Fund for various limited life funded programs offset by the remapping of $4.584 million (budget) $6.937 million (actual) of Legal expenditure to Supplies and Services.



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(continued) F2-1 EXPLANATION OF MAJOR VARIANCES – COMPREHENSIVE INCOME V1. Grants and other contributions were lower than budgeted mainly due to a decrease of $4.5 million in Natural

Disaster Relief and Recovery Arrangements program as a result of a change in the funding arrangements with the Queensland Reconstruction Authority offset by an additional $2.048 million of Commonwealth Grant payments and an unbudgeted $1.729 million for Goods and services received at below fair value (Archiving services).

V2. Grants payments were lower than budgeted mainly due to a decrease of $4.5 million in Natural Disaster Relief and Recovery Arrangements program as a result of a change in the funding arrangements with the Queensland Reconstruction Authority.

V3. Other expenses is over budget mainly to do with $5.770 million deferred appropriation payable to the Consolidated Fund for various limited life funded programs offset by the remapping of $4.584 million (budget) $6.937 million (actual) of Legal expenditure to Supplies and Services.

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F3 BUDGET TO ACTUAL COMPARISON – STATEMENT OF FINANCIAL POSITION

Variance


2016 $’000

Actual Result

2016 $’000

Variance $’000


Current Assets

Cash and cash equivalents V4 41,758 70,380 28,622 68.5% Receivables V5 37,635 22,659 (14,976) (39.8%) Other current assets V6 4,783 2,398 (2,385) (49.9%) Total Current Assets 84,176 95,437 11,261 13.4% Non-Current Assets Property, plant and equipment 171,587 157,013 (14,574) (8.5%) Intangible assets V7 51,147 37,284 (13,863) (27.1%) Total Non-Current Assets 222,734 194,297 (28,437) (12.8%) Total Assets 306,910 289,734 (17,176) (5.6%) Current Liabilities Payables 28,361 29,653 1,292 4.6% Accrued employee benefits V8 7,086 9,965 2,879 40.6% Other current liabilities V9 10,536 17,376 6,840 64.9% Total Current Liabilities 45,983 56,994 11,011 23.9% Non-current liabilities Other non-current liabilities .. 334 334 N/A Total Non-Current Liabilities .. 334 334 N/A Total Liabilities 45,983 57,328 11,345 24.7% Net Assets 260,927 232,406 (28,521) (10.9%) Total Equity 260,927 232,406 (28,521) (10.9%)



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for the year ended 30 June 2016 F3 BUDGET TO ACTUAL COMPARISON – STATEMENT OF FINANCIAL POSITION

(continued)

F3-1 EXPLANATION OF MAJOR VARIANCES – FINANCIAL POSITION V4. Part of the variance for Cash and Cash Equivalents ($10.357 million) is attributable to a higher opening balance,

compared to what was estimated in the budget, because of the difference between estimated and actual cash flows for the previous financial year. The remaining balance of $18.265 million is materially explained in the variances outlined in the Explanations of Major Variances for the Statement of Cash Flow.

V5. Most of the variance for Receivables is attributable to a lower actual opening balance, compared to what was estimated in the budget, because of the difference between estimated and actual receivables for the previous financial year. This previous year variance was mainly attributable to $13.179 million of unearned revenue for Natural Disaster Relief and Recovery Arrangements payments from the Queensland Reconstruction Authority associated with the on-farm productivity and riparian recovery program.

V6. The variance in Other Current Assets is due to less inventory ($0.799 million) on hand than originally anticipated and less prepayments at year end than budgeted ($1.368 million). The main variance in prepayments is as a result of budgeting for a prepayment for the 2016-17 Queensland Government Insurance Fund premium of $1.822 million and the payment not being made in the 2015-16 financial year.

V7. The variance for Intangible Assets is as a result of the One Enterprise Program (1EP) being predominately budgeted as a Capital program while actual expenditure is more of an operational nature and reflected mostly in Supplies and Services in the Statement of Comprehensive Income.

V8. The variance between the actual and budget figures for Accrued Employee Benefits relates to an underestimation of accrued year end salary balances by $2.638 million.

V9. The variance for Other Current Liabilities is mainly attributable to $5.3 million worth of Deposits held for the Department of Education and Training for the purchase of land for future school sites.



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for the year ended 30 June 2016 F3 BUDGET TO ACTUAL COMPARISON – STATEMENT OF FINANCIAL POSITION

(continued)

F3-1 EXPLANATION OF MAJOR VARIANCES – FINANCIAL POSITION V4. Part of the variance for Cash and Cash Equivalents ($10.357 million) is attributable to a higher opening balance,

compared to what was estimated in the budget, because of the difference between estimated and actual cash flows for the previous financial year. The remaining balance of $18.265 million is materially explained in the variances outlined in the Explanations of Major Variances for the Statement of Cash Flow.

V5. Most of the variance for Receivables is attributable to a lower actual opening balance, compared to what was estimated in the budget, because of the difference between estimated and actual receivables for the previous financial year. This previous year variance was mainly attributable to $13.179 million of unearned revenue for Natural Disaster Relief and Recovery Arrangements payments from the Queensland Reconstruction Authority associated with the on-farm productivity and riparian recovery program.

V6. The variance in Other Current Assets is due to less inventory ($0.799 million) on hand than originally anticipated and less prepayments at year end than budgeted ($1.368 million). The main variance in prepayments is as a result of budgeting for a prepayment for the 2016-17 Queensland Government Insurance Fund premium of $1.822 million and the payment not being made in the 2015-16 financial year.

V7. The variance for Intangible Assets is as a result of the One Enterprise Program (1EP) being predominately budgeted as a Capital program while actual expenditure is more of an operational nature and reflected mostly in Supplies and Services in the Statement of Comprehensive Income.

V8. The variance between the actual and budget figures for Accrued Employee Benefits relates to an underestimation of accrued year end salary balances by $2.638 million.

V9. The variance for Other Current Liabilities is mainly attributable to $5.3 million worth of Deposits held for the Department of Education and Training for the purchase of land for future school sites.

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F4 BUDGET TO ACTUAL COMPARISON – STATEMENT OF CASH FLOWS

Variance


2016 $’000

Actual Result

2016 $’000

Variance $’000


Cash flows from operating activities

Inflows: Service appropriation receipts 321,291 327,612

6,321 2.0% User charges and fees 118,539 117,239 (1,300) (1.1%) Grants and contributions V10 7,600 4,890 (2,710) (35.7%) GST input tax credits from ATO .. 18,620 18,620 N/A GST collected from customers .. 2,905 2,905 N/A Other V11 1,757 11,493 9,736 554.1% Outflows: Employee expenses (236,879) (240,020) (3,141) 1.3% Supplies and services (141,843) (148,244) (6,401) 4.5% Grants and subsidies V12 (47,803) (40,570) 7,233 (15.1%) GST paid to suppliers .. (18,779) (18,779) N/A GST remitted to ATO .. (2,953) (2,953) N/A Other V13 (8,064) (2,232) 5,832 (72.3%) Net cash provided by/(used in) operating activities 14,598 29,962 15,364 105.2% Cash flows from investing activities Inflows: Sales of property, plant and equipment .. 118 118 N/A Outflows: Payments for property, plant and equipment V14 (9,024) (7,956) 1,068 (11.8%) Payments for intangible assets V15 (12,765) (6,830) 5,935 (46.5%) Net cash provided by/(used in) investment activities (21,789) (14,668) 7,121 (32.7%) Cash flows from financing activities Inflows: Equity injections V16 13,637 6,674 (6,963) (51.1%) Outflows: Equity withdrawals (3,586) (3,706) (120) 3.3% Non-appropriated equity withdrawals .. 3 3 N/A Net cash provided by/(used in) financing activities 10,051 2,971 (7,080) (70.4%) Net increase (decrease) in cash and cash equivalents 2,860 18,265 15,404 538.6% Cash and cash equivalents at beginning of financial year 38,898 52,115 13,217 34.0% Cash and cash equivalents at end of financial year 41,758 70,380 28,621 68.5%



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F4 BUDGET TO ACTUAL COMPARISON – STATEMENT OF CASH FLOWS (continued)

F4-1 EXPLANATION OF MAJOR VARIANCES – CASH FLOWS

V10. The variance in Grants and Contributions predominately relates to a decrease of $4.5 million in Natural Disaster Relief and Recovery Arrangements program as a result of a change in the funding arrangements with the Queensland Reconstruction Authority offset by various Australian Government Grant programs payments.

V11. The variance in Other (Inflows) is predominately due to reasons outlined in variance note 9 (V9) above and an increase in various accrued expenses ($3.345 million) including $1.285 million for 1EP expenditure to modernise the department’s ICT platforms.

V12. The variance in Grants and Subsidies is predominately due to reasons outlined in variance note 2 (V2) above.

V13. The variance in Other Outflows is mainly as a result of realigning legal costs ($6.937 million) from Other Expenses to Supplies and Services in the Statement of Comprehensive Income.

V14. The variance for Payments for Property, Plant and Equipment is mainly a result of delays experienced in the acquisition of land for the extension of the Zillmere Core Library.

V15. The variance for Payments for Intangible Assets is due to reasons outlined in variance note 7 (V7) above.

V16. The variance for Equity Injections is due to reasons outlined in variance note 7 (V7) above.



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F4 BUDGET TO ACTUAL COMPARISON – STATEMENT OF CASH FLOWS (continued)

F4-1 EXPLANATION OF MAJOR VARIANCES – CASH FLOWS

V10. The variance in Grants and Contributions predominately relates to a decrease of $4.5 million in Natural Disaster Relief and Recovery Arrangements program as a result of a change in the funding arrangements with the Queensland Reconstruction Authority offset by various Australian Government Grant programs payments.

V11. The variance in Other (Inflows) is predominately due to reasons outlined in variance note 9 (V9) above and an increase in various accrued expenses ($3.345 million) including $1.285 million for 1EP expenditure to modernise the department’s ICT platforms.

V12. The variance in Grants and Subsidies is predominately due to reasons outlined in variance note 2 (V2) above.

V13. The variance in Other Outflows is mainly as a result of realigning legal costs ($6.937 million) from Other Expenses to Supplies and Services in the Statement of Comprehensive Income.

V14. The variance for Payments for Property, Plant and Equipment is mainly a result of delays experienced in the acquisition of land for the extension of the Zillmere Core Library.

V15. The variance for Payments for Intangible Assets is due to reasons outlined in variance note 7 (V7) above.

V16. The variance for Equity Injections is due to reasons outlined in variance note 7 (V7) above.

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F5 BUDGET TO ACTUAL COMPARISON – ADMINISTERED STATEMENT OF

COMPREHENSIVE INCOME

Variance Notes

Original Budget

2016 $’000

Actual Result

2016 $’000

Variance $’000


Income from continuing operations

Administered appropriation revenue 1,220 1,100 (120) (9.8%) User charges and fees 317,482 325,470 7,988 2.5% Property and other territorial revenue 158,886 154,694 (4,192) (2.6%) Land transfers inwards V17 225,185 298,823 73,638 32.7% Revaluation increment V18 .. 5,105,092 5,105,092 N/A Other revenue 2,484 2,162 (322) (12.9%) Total Revenue 705,257 5,887,343 5,182,086 734.8% Gain on disposal of land V19 14,000 11,120 (2,880) (20.6%) Total Income from Continuing Operations 719,257 5,898,463 5,179,206 720.1% Expenses from Continuing Operations Grants and subsidies 10,600 9,560 (1,040) (9.8%) Land transfers outwards V20 35,380 51,001 15,621 44.2% Other expenses V21 5,645 14,293 8,648 153.2% Total Expenses from Continuing Operations 51,625 74,854 23,229 45.0% Net Operating Result before transfers to government 667,632 5,823,608 5,155,976 772.3% Transfers of Administered item revenue to government 487,632 475,862 (11,770) (2.4%) Operating Result from Continuing Operations 180,000 5,347,747 5,167,747 2871.0% Other Comprehensive Income Items that will not be reclassified subsequently to Operating Result: Increase/(decrease) in asset revaluation surplus .. 321 321 N/A Total Other Comprehensive Income .. 321 321 N/A Total Comprehensive Income 180,000 5,348,068 5,168,068 2871.1%



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COMPREHENSIVE INCOME (continued)

F5-1 EXPLANATION OF MAJOR VARIANCES – ADMINISTERED COMPREHENSIVE INCOME V17. Land transfers inwards is from non-Queensland Government entities for public use at no charge in accordance with

certain planning and legislative requirements. A budget of $225.185 million had been established based on historical data however these amounts tend to fluctuate due to the unpredictability of the activity.

V18. Due to the nature of revaluations there is no reliable trend on which to develop a budget for these amounts. The variance is the revaluation increment which is as a result of increases in Englobo values due to market movements for land under roads.

V19. The $14 million budget estimate is based on historical trends. The amount fluctuates depending on land available for disposal, market activity and the cost of sales of the land. The variance between the actual and budget figures relates to fewer disposals of surplus government land and conversions of leasehold land to freehold and road closures where the land is sold back to the adjoining land holders or another party.

V20. Land transferred outwards is for land no longer required following the closure of a road that is transferred to non-Queensland Government entities in accordance with certain planning and legislative requirements. Due to the nature of these transfers there is no program of works to accurately base budget estimates on. The budget of $35.380 million had been established based on historical data. The amount fluctuates due to the unpredictability of the activity.

V21. The variance in Other Expenses is predominately due to a higher than expected impairment losses on finance leases ($10.171m) for which collection is uncertain.



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COMPREHENSIVE INCOME (continued)

F5-1 EXPLANATION OF MAJOR VARIANCES – ADMINISTERED COMPREHENSIVE INCOME V17. Land transfers inwards is from non-Queensland Government entities for public use at no charge in accordance with

certain planning and legislative requirements. A budget of $225.185 million had been established based on historical data however these amounts tend to fluctuate due to the unpredictability of the activity.

V18. Due to the nature of revaluations there is no reliable trend on which to develop a budget for these amounts. The variance is the revaluation increment which is as a result of increases in Englobo values due to market movements for land under roads.

V19. The $14 million budget estimate is based on historical trends. The amount fluctuates depending on land available for disposal, market activity and the cost of sales of the land. The variance between the actual and budget figures relates to fewer disposals of surplus government land and conversions of leasehold land to freehold and road closures where the land is sold back to the adjoining land holders or another party.

V20. Land transferred outwards is for land no longer required following the closure of a road that is transferred to non-Queensland Government entities in accordance with certain planning and legislative requirements. Due to the nature of these transfers there is no program of works to accurately base budget estimates on. The budget of $35.380 million had been established based on historical data. The amount fluctuates due to the unpredictability of the activity.

V21. The variance in Other Expenses is predominately due to a higher than expected impairment losses on finance leases ($10.171m) for which collection is uncertain.

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F6 BUDGET TO ACTUAL COMPARISON – ADMINISTERED STATEMENT OF FINANCIAL

POSITION

Variance Notes

Original Budget

2016 $’000

Actual Result

2016 $’000

Variance $’000


Current Assets

Cash and cash equivalents 5,256 5,418 162 3.1% Receivables V22 43,340 70,619 27,279 62.9% Land held for sale V23 267 3,984 3,717 1391.9% Total Current Assets 48,863 80,020 31,157 63.8% Non-Current Assets Receivables 30,130 33,086 2,956 9.8% Property, plant and equipment V24 53,605,866 62,264,017 8,658,151 16.2% Total Non-Current Assets 53,635,996 62,297,103 8,661,107 16.1% Total Assets 53,684,859 62,377,123 8,692,264 16.2% Current Liabilities Payables V25 27,101 44,598 17,497 64.6% Proposals and deposits V26 15,305 22,895 7,590 49.6% Other current liabilities 19,065 19,978 913 4.8% Total Current Liabilities 61,471 87,471 26,000 42.3% Non-Current liabilities Other non-current liabilities 267 277 10 3.9% Total Non-Current Liabilities 267 277 10 3.9% Total Liabilities 61,738 87,748 26,010 42.1% Net Assets 53,623,121 62,289,375 8,666,254 16.2% Total Equity 53,623,121 62,289,375 8,666,254 16.2%



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POSITION (continued)

F6-1 BUDGET TO ACTUAL COMPARISON – ADMINISTERED FINANCIAL POSITION (continued)

V22. The variance between the actual and budget figure for Receivables mainly relates to an unbudgeted prepayment of $22.895 million to the Consolidated Fund for proposals and deposits relating to funds held by the State from external parties for prospective land dealings, with further details provided in note V26 below.

V23. The variance between the actual and budget figure for Land Held for Sale is due to additional land assets identified as surplus to requirements as directed by the Queensland Government after an assessment to determine the most efficient use of the land has occurred.

V24. Part of the total Property, Plant and Equipment variance ($3.311 billion) is higher than budgeted due to a substantially higher opening balance, compared to what was estimated in the budget, as a result of significant unanticipated revaluation increments for land assets. Further to this there was another unanticipated revaluation increment as explained above in note V18.

V25. The variance between the actual and budget figures for Payables relates predominately to an unanticipated increase ($18.888 million) in transfers to government payable due to the timing and amounts of administered receipts returned to the Consolidated Fund at year end.

V26. The variance of $7.59 million for proposals and deposits relates to unanticipated deposits received for land sales and leases with the increase above budget mainly associated with a substantial increase in the number of rural lease holder’s applying to convert to freehold.



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POSITION (continued)

F6-1 BUDGET TO ACTUAL COMPARISON – ADMINISTERED FINANCIAL POSITION (continued)

V22. The variance between the actual and budget figure for Receivables mainly relates to an unbudgeted prepayment of $22.895 million to the Consolidated Fund for proposals and deposits relating to funds held by the State from external parties for prospective land dealings, with further details provided in note V26 below.

V23. The variance between the actual and budget figure for Land Held for Sale is due to additional land assets identified as surplus to requirements as directed by the Queensland Government after an assessment to determine the most efficient use of the land has occurred.

V24. Part of the total Property, Plant and Equipment variance ($3.311 billion) is higher than budgeted due to a substantially higher opening balance, compared to what was estimated in the budget, as a result of significant unanticipated revaluation increments for land assets. Further to this there was another unanticipated revaluation increment as explained above in note V18.

V25. The variance between the actual and budget figures for Payables relates predominately to an unanticipated increase ($18.888 million) in transfers to government payable due to the timing and amounts of administered receipts returned to the Consolidated Fund at year end.

V26. The variance of $7.59 million for proposals and deposits relates to unanticipated deposits received for land sales and leases with the increase above budget mainly associated with a substantial increase in the number of rural lease holder’s applying to convert to freehold.

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SECTION 7 OTHER INFORMATION

G1 KEY MANAGEMENT PERSONNEL DISCLOSURES

Details of Key Management Personnel 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. Director-General

The Director-General is responsible for the efficient, effective and economic administration of the department.

Incumbent Contract Classification and Appointment Authority

Date of Initial Appointment

Date of Resignation or

Cessation Current CEO Band 4 /s92 Public Service Act 2008 20 July 2015 - Former CEO 4.2 /s92 Public Service Act 2008 23 September 2013 18 August 2015

Deputy Director-General, Policy and Program Support

The Deputy Director-General provides strategic leadership and direction of the department’s policy and program support functions.




Cessation Current SES4.2 / s110 Public Service Act 2008 18 November 2013 -

Deputy Director-General, Service Delivery

The Deputy Director-General provides strategic leadership and direction in delivering the department’s services.




Cessation Former SES4.1 / s110 Public Service Act 2008 28 April 2014 27 October 2015

Deputy Director-General, Natural Resources

The Deputy Director-General provides strategic leadership and direction in delivering the department’s services.




Cessation Current SES4.2 / s110 Public Service Act 2008 22 March 2016 - Former SES4.1 / s110 Public Service Act 2008 28 October 2015 26 January 2016

Deputy Director-General, Mine Safety and Health

The Deputy Director-General provides strategic leadership and direction for the mine safety and health services and functions of the department.




Cessation Former SES4.1 / s110 Public Service Act 2008 24 October 2013 27 October 2015



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G1 KEY MANAGEMENT PERSONNEL DISCLOSURES (continued)

Details of Key Management Personnel (continued)

Deputy Director-General, Minerals and Energy Resources

The Deputy Director-General provides strategic leadership and direction to the department's minerals and energy resource functions and services.




Cessation Current SES4.1 / s110 Public Service Act 2008 27 January 2016 - Former SES4.1 / s110 Public Service Act 2008 28 October 2015 26 January 2016

Deputy Director-General, Business and Corporate Partnerships

The Deputy Director-General provides strategic leadership and direction of the department’s corporate and business support functions.




Cessation Current SES3.5 / s110 Public Service Act 2008 29 July 2013 -

Chief Finance Officer and Executive Director, Finance and Corporate Operations

The Chief Finance Officer and Executive Director, Finance and Corporate Operations is responsible for the efficient, effective and economic financial administration of the department.




Cessation Current SES2.5 / s110 Public Service Act 2008 9 April 2012 -

Temporary Relieving SES2.3 / s110 Public Service Act 2008

14 September 2015 29 September 2015 16 November 2015 26 January 2016

19 April 2016 3 June 2016

The Department had an organisational restructure effective from 28 October 2015 where it renamed Service Delivery to Natural Resources and Mine Safety and Health to Minerals and Energy Resources.

Remuneration Policies 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 and performance payments if applicable) are specified in employment contracts. Remuneration expenses for key management personnel comprise the following components: 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; and non-monetary benefits - consisting of provision of 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. 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.



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Details of Key Management Personnel (continued)

Deputy Director-General, Minerals and Energy Resources

The Deputy Director-General provides strategic leadership and direction to the department's minerals and energy resource functions and services.




Cessation Current SES4.1 / s110 Public Service Act 2008 27 January 2016 - Former SES4.1 / s110 Public Service Act 2008 28 October 2015 26 January 2016

Deputy Director-General, Business and Corporate Partnerships

The Deputy Director-General provides strategic leadership and direction of the department’s corporate and business support functions.




Cessation Current SES3.5 / s110 Public Service Act 2008 29 July 2013 -


The Chief Finance Officer and Executive Director, Finance and Corporate Operations is responsible for the efficient, effective and economic financial administration of the department.




Cessation Current SES2.5 / s110 Public Service Act 2008 9 April 2012 -

Temporary Relieving SES2.3 / s110 Public Service Act 2008

14 September 2015 29 September 2015 16 November 2015 26 January 2016

19 April 2016 3 June 2016

The Department had an organisational restructure effective from 28 October 2015 where it renamed Service Delivery to Natural Resources and Mine Safety and Health to Minerals and Energy Resources.

Remuneration Policies 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 and performance payments if applicable) are specified in employment contracts. Remuneration expenses for key management personnel comprise the following components: 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; and non-monetary benefits - consisting of provision of 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. 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.

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Remuneration Policies (continued)

Separation Payments for former Director-General The mutually agreed terms for separation of the former Director-General considered all relevant clauses of their contract. The payment for the former Director-General's separation was determined and paid in September 2015 and is included in KMP remuneration expenses for 2015-16. Performance Payments

Details of Performance Payment Entitlements by Key Management Person:

Position Summary of Basis for Entitlement and Assessment Expensed in 2015-16 Expensed in 2014-15

Current Director-General

The remuneration package for the current Director-General does not provide for any performance or bonus payments.

N/A N/A N/A N/A

Former Director-General

The September 2015 payment was made in accordance with contract of employment and mutually agreed terms of employment separation.

September2015 $39,659 October

2014 $29,926

Total Performance Payments $39,659 $29,926



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KMP Remuneration Expense The following disclosures focus on the expenses incurred by the department that is attributable to key management positions during the respective reporting periods. Therefore, the amounts disclosed reflect expenses recognised in the Statement of Comprehensive Income.

2015-16 Position

Short Term Employee Expenses

Long Term Employee

Post-Employment

Expenses

Termination Benefits

Total Expenses

Monetary Expenses

$’000

Non-Monetary Benefits

$’000 $’000 $’000 $’000 $’000

Director-General – Current 350 .. 8 34 .. 392 Director-General – Former 101 .. 1 6 161 269 Deputy Director-General, Policy and Program Support 215 .. 8 25 .. 248

Deputy Director-General, Service Delivery – Former 60 .. 3 8 .. 71

Deputy Director-General, Natural Resources - Current 70 .. 1 7 .. 78

Deputy Director-General, Natural Resources – Former 60 .. 1 6 .. 67

Deputy Director-General, Mine Safety and Health – Former 70 .. 4 8 .. 82

Deputy Director-General, Minerals and Energy Resources – Current 93 .. 2 11 .. 106

Deputy Director-General, Minerals and Energy Resources – Former 52 .. 1 6 .. 59

Deputy Director-General, Business and Corporate Partnerships 204 .. 4 19 .. 227


188 .. 5 20 .. 213

Acting Chief Finance Officer and Executive Director, Finance and Corporate Operations

61 .. 1 6 .. 68

2014-15 Position


Long Term Employee Expenses

Post-Employment

Expenses Termination

Benefits Total

Expenses

Monetary Expenses

$’000


$’000 $’000 $’000 $’000 $’000

Director-General – Former 411 .. 9 41 .. 461 Deputy Director-General, Policy and Program Support 216 .. 5 25 .. 245

Deputy Director-General, Service Delivery 223 .. 5 25 .. 253

Deputy Director-General, Mine Safety and Health – Former 224 5 5 22 .. 256



184 .. 4 19 .. 207



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KMP Remuneration Expense The following disclosures focus on the expenses incurred by the department that is attributable to key management positions during the respective reporting periods. Therefore, the amounts disclosed reflect expenses recognised in the Statement of Comprehensive Income.

2015-16 Position


Long Term Employee

Post-Employment

Expenses

Termination Benefits

Total Expenses

Monetary Expenses

$’000


$’000 $’000 $’000 $’000 $’000

Director-General – Current 350 .. 8 34 .. 392 Director-General – Former 101 .. 1 6 161 269 Deputy Director-General, Policy and Program Support 215 .. 8 25 .. 248

Deputy Director-General, Service Delivery – Former 60 .. 3 8 .. 71

Deputy Director-General, Natural Resources - Current 70 .. 1 7 .. 78

Deputy Director-General, Natural Resources – Former 60 .. 1 6 .. 67

Deputy Director-General, Mine Safety and Health – Former 70 .. 4 8 .. 82

Deputy Director-General, Minerals and Energy Resources – Current 93 .. 2 11 .. 106

Deputy Director-General, Minerals and Energy Resources – Former 52 .. 1 6 .. 59



188 .. 5 20 .. 213

Acting Chief Finance Officer and Executive Director, Finance and Corporate Operations

61 .. 1 6 .. 68

2014-15 Position


Long Term Employee Expenses

Post-Employment

Expenses Termination

Benefits Total

Expenses

Monetary Expenses

$’000


$’000 $’000 $’000 $’000 $’000

Director-General – Former 411 .. 9 41 .. 461 Deputy Director-General, Policy and Program Support 216 .. 5 25 .. 245

Deputy Director-General, Service Delivery 223 .. 5 25 .. 253

Deputy Director-General, Mine Safety and Health – Former 224 5 5 22 .. 256



184 .. 4 19 .. 207

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G2 PRIOR YEAR ADJUSTMENTS

In preparation of the 2015-16 financial statements, the department identified Accrued Employee Benefits was understated by $1.007 million at the end of the 2014-15 financial year. This was found to be as a result of an incorrect treatment of on costs associated with the Annual Leave Central Scheme payable from the effect of the exemption of payroll tax from 1 July 2014.

The department has restated comparatives. The affected notes and line items within the Statement of Comprehensive Income, Statement of Financial Position and the Statement of Changes in Equity is detailed in the table below.

Notes Reported

2015 $'000

Adjustments 2015 $'000

Restated 2015 $'000

Statement of Comprehensive Income (extract) Expenses from Continuing Operations Employee Expenses B2-1 227,038 1,007 *228,045 Total Expenses from Continuing Operations 445,344 1,007 *446,351 Operating Result from Continuing Operations

(2,203) (1,007) (3,210)

Other Comprehensive Income Increase/(decrease) in asset revaluation surplus C8-2 9,693 .. 9,693

Total Other Comprehensive Income 9,683 .. 9,693 Total Comprehensive Income 7,490 (1,007) 6,483

Statement of Financial Position (extract) Current Liabilities Accrued employee benefits C6 6,873 1,007 7,880 Total current liabilities 40,409 1,007 41,417 Total Liabilities 40,879 1,007 41,888 Net assets at 30 June 2015 229,784 (1,007) 228,775 Equity Contributed equity 235,040 .. 235,040 Retained surpluses (39,437) (1,007) (40,444) Asset revaluation reserve 34,181 .. 34,181 Balance at 30 June 2015 229,784 (1,007) 228,777 Statement of Changes in Equity (extract) Accumulated surplus Opening balance at 1 July 2014 (37,235) .. (37,235) Operating result from continuing operations (2,203) (1,007) (3,210) Balance at 30 June 2015 (39,437) (1,007) (40,445)

Total Equity 229,784 (1,007) 228,777 * For consistency purposes, comparative amounts in the Statement of Comprehensive Income have had further adjustments to reflect the remapping across categories which occurred in the current year (ie. Training has been remapped from Supplies and Services to Employee Expenses $1.858 million; Loss on disposal of Property, Plant & Equipment has been remapped from revenue to expenditure $0.285 million).



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for the year ended 30 June 2016 G3 FIRST YEAR APPLICATION OF NEW ACCOUNTING STANDARDS OR CHANGE IN

POLICY Changes in Accounting Policy The department did not voluntarily change any of its accounting policies during 2015-16. Accounting Standards Early Adopted for 2015-16 Two Australian Accounting Standards have been early adopted for the 2015-16 year as required by Queensland Treasury. These are:

AASB 2015-2

Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049] 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 3 of the fair value hierarchy – refer to Note E1. 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: disaggregation of certain gains/losses on assets reflected in the operating result; 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.

Accounting Standards Applied for the First Time in 2015-16 No new Australian Accounting Standards effective for the first time in 2015-16 had any material impact on this financial report. G4 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 benefit tax (FBT) and goods and services tax (GST). FBT and GST are the only taxes accounted for by the department. GST credits receivable from, and GST payable to the ATO are recognised – refer to Note C2.



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for the year ended 30 June 2016 G3 FIRST YEAR APPLICATION OF NEW ACCOUNTING STANDARDS OR CHANGE IN

POLICY Changes in Accounting Policy The department did not voluntarily change any of its accounting policies during 2015-16. Accounting Standards Early Adopted for 2015-16 Two Australian Accounting Standards have been early adopted for the 2015-16 year as required by Queensland Treasury. These are:

AASB 2015-2

Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049] 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 3 of the fair value hierarchy – refer to Note E1. 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: disaggregation of certain gains/losses on assets reflected in the operating result; 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.

Accounting Standards Applied for the First Time in 2015-16 No new Australian Accounting Standards effective for the first time in 2015-16 had any material impact on this financial report. G4 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 benefit tax (FBT) and goods and services tax (GST). FBT and GST are the only taxes accounted for by the department. GST credits receivable from, and GST payable to the ATO are recognised – refer to Note C2.

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Department of Natural Resources and Mines Management Certificate

for the year ended 30 June 2016 These general purpose financial statements have been prepared pursuant to section 62(1) of the Financial Accountability Act 2009 (the Act), section 42 of the Financial and Performance Management Standard 2009 and other prescribed requirements. In accordance with s.62(1)(b) of the Act we certify that in our opinion:

a) the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects; and

b) the statements have been drawn up to present a true and fair view, in accordance with prescribed financial

standards, of the transactions of the Department of Natural Resources and Mines for the financial year ended 30 June 2016 and of the financial position of the department at the end of that year; and

c) these assertions are based on an appropriate system of internal controls and risk management processes being

effective, in all material respects, with respect to financial reporting throughout the reporting period.

CORYNNE SCOTT BBus CPA Acting Chief Finance Officer

RACHAEL CRONIN Acting Director-General

24 August 2016 24 August 2016


Department of Natural Resources and Mines Management Certificate for the year ended 30 June 2016

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INDEPENDENT AUDITOR'S REPORT To the Accountable Officer of the Department of Natural Resources and Mines Report on the Financial Report I have audited the accompanying financial report of Department of Natural Resources and Mines, which comprises the statements of financial position and statements of assets and liabilities by major departmental services as at 30 June 2016, the statements of comprehensive income, statements of changes in equity, statements of cash flows and statements of comprehensive income by major departmental services for the year then ended, notes to the financial statements including significant accounting policies and other explanatory information, and the certificates given by the acting Director-General and the acting Chief Finance Officer. The Accountable Officer’s Responsibility for the Financial Report The Accountable Officer is responsible for the preparation of the financial report that gives a true and fair view in accordance with prescribed accounting requirements identified in the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, including compliance with Australian Accounting Standards. The Accountable Officer’s responsibility also includes such internal control as the Accountable Officer determines is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Accountable Officer, as well as evaluating the overall presentation of the financial report including any mandatory financial reporting requirements approved by the Treasurer for application in Queensland. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion. Independence The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can be removed only by Parliament. The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant.


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Opinion In accordance with s.40 of the Auditor-General Act 2009 –

(a) I have received all the information and explanations which I have required; and

(b) in my opinion –

(i) the prescribed requirements in relation to the establishment and keeping of accounts have been complied with in all material respects; and

(ii) the financial report presents a true and fair view, in accordance with the prescribed accounting standards, of the transactions of the Department of Natural Resources and Mines for the financial year 1 July 2015 to 30 June 2016 and of the financial position as at the end of that year.

Other Matters - Electronic Presentation of the Audited Financial Report Those viewing an electronic presentation of these financial statements should note that audit does not provide assurance on the integrity of the information presented electronically and does not provide an opinion on any information which may be hyperlinked to or from the financial statements. If users of the financial statements are concerned with the inherent risks arising from electronic presentation of information, they are advised to refer to the printed copy of the audited financial statements to confirm the accuracy of this electronically presented information. A M Greaves FCA FCPA Queensland Audit Office Auditor-General of Queensland Brisbane

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INDEPENDENT AUDITOR'S REPORT To the Accountable Officer of the Department of Natural Resources and Mines Report on the Financial Report I have audited the accompanying financial report of Department of Natural Resources and Mines, which comprises the statements of financial position and statements of assets and liabilities by major departmental services as at 30 June 2016, the statements of comprehensive income, statements of changes in equity, statements of cash flows and statements of comprehensive income by major departmental services for the year then ended, notes to the financial statements including significant accounting policies and other explanatory information, and the certificates given by the acting Director-General and the acting Chief Finance Officer. The Accountable Officer’s Responsibility for the Financial Report The Accountable Officer is responsible for the preparation of the financial report that gives a true and fair view in accordance with prescribed accounting requirements identified in the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, including compliance with Australian Accounting Standards. The Accountable Officer’s responsibility also includes such internal control as the Accountable Officer determines is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control, other than in expressing an opinion on compliance with prescribed requirements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Accountable Officer, as well as evaluating the overall presentation of the financial report including any mandatory financial reporting requirements approved by the Treasurer for application in Queensland. I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion. Independence The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all Queensland public sector entities and can be removed only by Parliament. The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant.



Appendix 1: Legislation administered by DNRM

Aboriginal Land Act 1991 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport; and the Attorney-General and Minister for Justice and Minister for Training and Skills)

Aboriginal and Torres Strait Islander Land Holding Act 2013

Acquisition of Land Act 1967

Alcan Queensland Pty. Limited Agreement Act 1965 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport) (Sch)

Allan and Stark Burnett Lane Subway Authorisation Act 1926

Building Units and Group Titles Act 1980 (except to the extent administered by the Attorney-General and Minister for Justice and Minister for Training and Skills; sections 5, 5A, 119, 133 and 134 jointly administered with the Attorney-General and Minister for Justice and Minister for Training and Skills)

Cape York Peninsula Heritage Act 2007 (except to the extent administered by the Minister for Environment and Heritage Protection and Minister for National Parks and the Great Barrier Reef)

Central Queensland Coal Associates Agreement Act 1968 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport) (Sch pt III) (Sch 1 pt III—to the extent that it is relevant to mining or resource management matters)

Central Queensland Coal Associates Agreement (Amendment) Act 1986 (to the extent that it is relevant to mining or resource management matters)

Central Queensland Coal Associates Agreement Amendment Act 1989 (to the extent that it is relevant to mining or resource management matters)

Central Queensland Coal Associates Agreement and Queensland Coal Trust Act 1984 (to the extent that it is relevant to mining or resource management matters)

Century Zinc Project Act 1997 (sections 9 and 10)

Coal Mining Safety and Health Act 1999

Commonwealth Aluminium Corporation Pty. Limited Agreement Act 1957 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport)

Electronic Conveyancing National Law (Queensland) Act 2013

Explosives Act 1999

Foreign Governments (Titles to Land) Act 1948

Foreign Ownership of Land Register Act 1988

Fossicking Act 1994 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport)

Geothermal Energy Act 2010 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport)

Greenhouse Gas Storage Act 2009

Ipswich Trades Hall Act 1986


Lake Eyre Basin Agreement Act 2001 (except to the extent administered by the Minister for Environment and Heritage Protection and Minister for National Parks and the Great Barrier Reef)

Land Act 1994 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport)

Land Protection (Pest and Stock Route Management) Act 2002 (to the extent that it is relevant to Stock Route Management) (jointly administered with the Minister for Agriculture and Fisheries)

Land Title Act 1994

Land Valuation Act 2010

Mineral and Energy Resources (Common Provisions) Act 2014

Mineral Resources Act 1989 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport)

Mining and Quarrying Safety and Health Act 1999

Mount Isa Mines Limited Agreement Act 1985 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport)

Native Title (Queensland) Act 1993

New South Wales Queensland Border Rivers Act 1946

Offshore Minerals Act 1998 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport)

Petroleum Act 1923 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport)

Petroleum and Gas (Production and Safety) Act 2004 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport)

Petroleum (Submerged Lands) Act 1982 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport)

Place Names Act 1994

Queensland Nickel Agreement Act 1970 (Sch pts II–III (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport), VI and VII) (to the extent that it is relevant to mining or resource management matters)

Queensland Nickel Agreement Act 1988 (to the extent that it is relevant to mining or resource management matters)

Registration of Plans (H.S.P. (Nominees) Pty. Limited) Enabling Act 1980

Registration of Plans (Stage 2) (H.S.P. (Nominees) Pty. Limited) Enabling Act 1984

River Improvement Trust Act 1940

Soil Conservation Act 1986

Soil Survey Act 1929

Starcke Pastoral Holdings Acquisition Act 1994

Survey and Mapping Infrastructure Act 2003

Surveyors Act 2003


Thiess Peabody Coal Pty. Ltd. Agreement Act 1962 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport)

Thiess Peabody Mitsui Coal Pty. Ltd. Agreements Act 1965 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport)

Torres Strait Islander Land Act 1991 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport; and the Attorney-General and Minister for Justice and Minister for Training and Skills)

Valuers Registration Act 1992

Vegetation Management Act 1999

Water Act 2000 (except to the extent administered by the Minister for Environment and Heritage Protection and Minister for National Parks and the Great Barrier Reef; and the Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply); chapter 8, section 999, part 4A (jointly administered with the Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply); chapter 8, part 5 (jointly administered with the Minister for Environment and Heritage Protection and Minister for National Parks and the Great Barrier Reef; and the Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply)

Water (Commonwealth Powers) Act 2008

Yeppoon Hospital Site Acquisition Act 2006


Appendix 2: Performance statement

Service standard Notes 2015–16 target/ estimate

2015–16 actual

Service area: Land and Water Services

Percentage of native title claims resolved without trial, with agreement by parties

1 > 50% 100%

Percentage of the state’s natural water resources with monitoring programs in place

2 70% 80%

Accuracy of title dealings registered 99.5% 99.8%

Percentage of Titles Registry dealings processed within 5 days 90% 94%

Percentage increase in the use of online spatial services 3 20% 68.3%

Average percentage adjustment to annual statutory land valuations that are objected to

4 ≤ 15% 5%

Percentage of properly made objections lodged against annual statutory land valuations for properties ≤ $5 million, decided within customer service standards

5 85% 87%

Service area: Mining Services

Lost time injury frequency rate (injuries per million hours) in the mining and quarrying industries

< 3.3 2.2

Percentage of scheduled audits and inspections completed within prescribed times

6 90% 100%

Percentage of mining exploration applications decided within 12 months 90% 91%

Notes:

1. This is a cumulative target. The target for 2015–16 has been exceeded. The department successfully resolved more native title claims through negotiations than trial.

2. This measure has been discontinued. In the 2016–17 Service Delivery Statement an alternative measure (reliability of the state’s water monitoring networks) more appropriately reflects a key strategic objective for the department to provide accurate and timely information relating to our surface and groundwater resources. This information underpins water planning and management activities, and also supports the Bureau of Meteorology to deliver a flood monitoring and warning network.

3. The target for 2015–16 was exceeded. The department successfully increased the use of online spatial services by increasing the available number and the awareness of the use/availability of services.

4. As at 29 September 2015, a total of 2137 annual objections were decided, with an average percentage change of 5%. As annual land valuations are issued once a year, this measure can only be reported in quarter 1.

5. As at 29 September 2015, a total of 2294 valid objections ≤ $5m were received to the 2015 annual statutory valuations, with 1992 or 87% completed within customer service standards.

6. The target for 2015–16 was exceeded. The department successfully completed all scheduled audits and inspections within prescribed times due to the effective targeting of resources and the enhancement of its structured risk-based audit and inspection program.


Appendix 3: Compliance checklist

Summary of requirement Basis for requirement Annual report reference

Letter of compliance

A letter of compliance from the accountable officer or statutory body to the relevant minister/s

ARRs—section 8 2

Accessibility Table of contents

Glossary

ARRs—section 10.1 1

115

Public availability ARRs—section 10.2 i

Interpreter service statement Queensland language services policy

ARRs—section 10.3

i

i

Copyright notice Copyright Act 1968

ARRs—section 10.4

i

i

Information licensing Queensland Government enterprise architecture—information licensing

ARRs—section 10.5

i

i

General information

Introductory information ARRs—section 11.1 3–4

Agency role and main functions ARRs—section 11.2 3–4

Operating environment ARRs—section 11.3 4

Machinery-of-government changes ARRs—section 11.4 Not applicable

Non-financial performance

Government’s objectives for the community ARRs—section 12.1 3

Other whole-of-government plans/specific initiatives

ARRs—section 12.2 17–19

The Queensland plan ARRs 20

Agency objectives and performance indicators

ARRs—section 12.3 6–16

Agency service areas and service standards ARRs—section 12.4 5, 111

Financial performance

Summary of financial performance ARRs—section 13.1 23–26



Governance—management and structure

Organisational structure ARRs—section 14.1 30

Executive management ARRs—section 14.2 27–28

Government bodies (statutory bodies and other entities)

ARRs—section 14.3

Public Sector Ethics Act 1994 Public Sector Ethics Act 1994

ARRs—section 14.4

31

Governance—risk management and accountability

Risk management ARRs—section 15.1 32

External scrutiny ARRs—section 15.2 32

Audit committee ARRs—section 15.3 33

Internal audit ARRs—section 15.4 34

Information systems and recordkeeping ARRs—section 15.5 36–37

Governance—human resources

Workforce planning and performance ARRs—section 16.1 38–40

Early retirement, redundancy and retrenchment

Directive no.11/12: early retirement, redundancy and retrenchment

ARRs—section 16.2

41

Open data Consultancies ARRs—section 17

ARRs—section 34.1

42

Overseas travel ARRs—section 17

ARRs—section 34.2

42

Queensland language services policy ARRs—section 17

ARRs—section 34.3

42

Government bodies

ARRs—section 17

ARRs—section 34.4

42



Financial statements

Certification of financial statements FAA—section 62

FPMS—sections 42, 43 and 50

ARRs—section 18.1

105

Independent auditors report FAA—section 62

FPMS—section 50

ARRs—section 18.2

106–107

Remuneration disclosures Financial reporting requirements for Queensland Government agencies

ARRs—section 18.3

102

Notes:

FAA Financial Accountability Act 2009 FPMS Financial and Performance Management Standard 2009 ARRs Annual report requirements for Queensland Government agencies


Abbreviations and glossary

ARRs Annual report requirements for Queensland Government agencies

BoM Bureau of Meteorology

CaPE Conduct and Performance Excellence

CSG coal seam gas

DET Department of Education and Training

DNRM Department of Natural Resources and Mines

eDRMS Electronic Document and Records Management System

EDS early detection system

FAA Financial Accountability Act 2009

FPMS Financial and Performance Management Standard 2009

Ground truthing Ground truthing is the activity of carrying out a physical site inspection of an abandoned mine. Normally two people inspect the site and record information on the mine features present and their current status. This allows the department to update its evaluation of site risks.

ILUAs Indigenous land use agreements

ICT information and communications technology

LNG liquefied natural gas

PEXA Property Exchange Australia Ltd

PLS Property Location Service

QAO Queensland Audit Office

QGIAS Queensland Government Internal Audit Service

SIMTARS Safety in Mines Testing and Research Station

SLATS Statewide Landcover and Tree Study


Contacts

Head office

61 Mary Street BRISBANE QLD 4000

Post

PO Box 15216 CITY EAST QLD 4002

Phone

13 QGOV (13 74 68)

Annual report enquiries

Director, Business Planning and Achievement Department of Natural Resources and Mines PO Box 15216 CITY EAST QLD 4002

Email: [email protected] Phone: 13 QGOV (13 74 68)

Feedback

Feedback on the annual report can be provided at www.qld.gov.au/annualreportfeedback

Social media and website

facebook.com/LandQueensland

facebook.com/MiningQld

twitter.com/landqueensland

twitter.com/MiningQLD

www.dnrm.qld.gov.au

http://www.qld.gov.au/annualreportfeedback

Department of Natural Resources and Mines 2015–2016 Annual Report www.dnrm.qld.gov.au

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