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Annual Report 2011-12 AnnuAl RepoRt 2011-12 6 September 2012 this Annual Report provides information about the financial and non-financial performance of the Queensland Bulk Water Supply the Hon Mark McArdle Mp Authority (trading as Seqwater) for 2011-12. Minister for energy and Water Supply PO Box 15216 It has been prepared in accordance with the Financial City east QlD 4002 Accountability Act 2009, the Financial and performance Management Standard 2009 and the Annual Report Guidelines the Hon tim nicholls Mp for Queensland government agencies. treasurer and Minister for trade level 9, executive Building the report records the significant achievements against the 100 George St strategies and activities detailed in the organisation’s Strategic Brisbane Qld 4000 and operational plans. this report has been prepared for the Minister for energy and Dear Ministers Water Supply, to submit to parliament. It has also been prepared 2011-12 Seqwater Annual Report to meet the needs of Seqwater’s customers and stakeholders, which include the Commonwealth and local governments, I am pleased to present the Annual Report 2011-12 and industry and business associations and the community. financial statements for the Queensland Bulk Water Supply Authority (QBWSA), trading as Seqwater. this report is publicly available and can be viewed and downloaded from Seqwater’s website at I certify that this Annual Report complies with: www.seqwater.com.au/public/news-publications/annual-reports. • the prescribed requirements of the Financial Accountability Act 2009 and the Financial and performance Management Standard 2009, and • the detailed requirements set out in the Annual Report requirements for Queensland government agencies. A checklist outlining the annual reporting requirements can be accessed at www.seqwater.com.au/public/news-publications/ annual-reports. Yours sincerely Phil Hennessy Chairman ConTEnts Report from the Chairman and the Chief Executive Officer 2 About Seqwater 6 Role and functions 6 our values 6 Strategic and operational planning 7 Summary of major assets 8 Seqwater as part of the SEQ Water Grid 9 Financial summary for 2011-12 The year in review 10 Achieving our goals 10 Key performance Indicator summary 11 Financial summary for 2011-12 21 looking forward 21 Governance 22 Responsible ministers 22 legislative and policy requirements 22 Related entities 22 organisational structure 22 the Seqwater Board 24 Contact Board role 26 Board committees 26 Queensland Bulk Water Authority, trading as Seqwater. Board attendance 27 ABn: 75450239876 Board remuneration 27 Board performance evaluation 27 Registered office organisational review 28 240 Margaret Street, Brisbane QlD 4000 Compliance 28 PO Box 16146, City east QlD 4002 Risk management 28 T 07 3035 5500 Internal audit 28 F 07 3229 7926 Workforce planning and retention 29 E [email protected] Industrial/employee Relations Framework 30 W www.seqwater.com.au Workplace Health and Safety 30 Conduct and ethics 31 Additional information 31 Seqwater Annual Report 2011-12 Financial Report 32 ISSn 1837-4549 Glossary 98 © (Queensland Bulk Water Supply Authority) 2012. 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, please contact us and we will arrange an interpreter to effectively communicate the report to you. QUEENSLAND BULK WATER SUPPLY AUTHORITY TRADING AS SEQWATER ANNUAL REPORT 2011-12 1 Report from the ChaiRmAn And the CHief ExecuTivE Officer Phil Hennessy CHAIRMAn Peter Borrows CEO the 2011-12 financial year was one of consolidation the announcement by the State Government in April 2012 to and recovery. further rationalise government-owned water entities, will create one of Australia’s largest and most diverse water While our key focus remained the ongoing supply of safe and authorities. reliable bulk drinking water for our region and ensuring we continued to plan for the future, the year was marked by five over 2012-13, Seqwater will merge with bulk water transport key bodies of diverse and significant work. these included authority linkWater and functions of the South east Queensland the successful Seqwater-WaterSecure merger into the new Water Grid Manager and Queensland Water Commission, to Seqwater, the ongoing recovery work undertaken following the form a single regional bulk water supply company. January 2011 flood and implementation of recommendations of As in previous years and in different iterations, the new the Queensland Floods Commission of Inquiry. It also included Seqwater strongly embraced the opportunities new assets, working closely with the Queensland Competition Authority on skills and ideas presented from driving innovation to identifying identifying business and cost efficiencies and, importantly, the operational efficiencies and cost savings. ongoing implementation of Seqwater’s asset management and planning framework for both catchment and built assets. the Seqwater-WaterSecure merger combined the traditional water sources of catchments and dams with desalination and purified recycled water into the same business for the first time in South east Queensland (SeQ). 2 FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2012 delivering South East Queensland’s Seqwater also moved forward on the planning and implementation of its Dam Safety upgrade program which saw water supply upgrade works commence at ewen Maddock Dam, the second on behalf of the SeQ Water Grid and working closely with SeQ largest dam supplying the Sunshine Coast. Construction on Water Grid partners, including the region’s distribution and water a new water treatment plant for Kilcoy and the surrounding retailers, Seqwater produced almost 260,000 million litres of community also got underway. safe drinking water for distribution to residents and businesses across the region. this included more than 3,400 million litres of Queensland Floods Commission of inquiry desalinated water and more than 5,600 million litres of purified recycled water to the region’s key power stations. Seqwater committed a significant amount of resources during the year to assist the work of the Commission of Inquiry. We As part of our overall management of water quality and, to have been diligent in implementing recommendations from both strengthen community confidence, we completed more than the interim and final reports, with the Commission adopting 300,000 water quality tests with the results again demonstrating many of the recommendations made by Seqwater in its various the high quality of drinking water provided continued to exceed submissions to the Inquiry. the Australian Drinking Water Guidelines (2011). the majority of the recommendations as they relate to Seqwater have already been completed, with the remainder Securing the region’s future water supply in progress. these undertakings have included finalising A regionally significant infrastructure project reached the establishment of a new Flood operations Centre (FoC), completion with the finalisation of the Hinze Dam Stage 3 which was already in the planning stages prior to the January upgrade project, with the dam’s recreational areas re-opened 2011 floods, and successfully implementing a region-wide, in December 2011. After three years of construction, Hinze Dam automated public notification service for dam releases using is now the region’s third largest water storage behind Wivenhoe the nationally recognised Australian early Warning network and Somerset dams and a critical asset in the water security service. In addition, and over and above recommendations in the of the region. the upgrade significantly increased the capacity Commission’s final report, Seqwater has significantly increased of the dam and now provides flood mitigation benefits for more the number of flood engineers and flood officers available to than 3000 additional homes below the dam wall. operate the FoC during future flood events. our manufactured water assets have now been successfully Seqwater had always taken the view that the operation of operating for more than two years with the Western Corridor Wivenhoe Dam during the January 2011 flood event and release Recycled Water Scheme progressing to project closeout over strategies adopted by its engineers significantly mitigated the past year. the Gold Coast Desalination plant is expected to the flood. our view was supported by the independent expert reach final project closeout in late 2012. retained by the Commission who concluded that, in light of the information available at the time and allowing for the limits the new Wyaralong Dam, the first dam constructed in South of the strategies in the Wivenhoe manual, our flood engineers east Queensland in 20 years, was handed over to Seqwater achieved close to the best possible flood mitigation result for on 1 July 2011, six months ahead of schedule. originally it the January event. was thought it would take between three and four years for Wyaralong Dam to fill, however the unprecedented rainfall In relation to flood management, over the 2011-12 wet season of early 2011 saw the dam fill almost immediately after Seqwater successfully managed a number of flood events from construction was completed and it remains close to capacity. Wivenhoe, Somerset, north pine and leslie Harrison dams. QUEENSLAND BULK WATER SUPPLY AUTHORITY TRADING AS SEQWATER ANNUAL REPORT 2011-12 3 Report from the ChaiRmAn And the CHief ExecuTivE Officer Working in partnership
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