Great Southern Development Commission Building partnerships for regional prosperity
CONTACT DETAILS:
Great Southern Development Commission Pyrmont House 110 Serpentine Road ALBANY WA 6330 Telephone: (08) 9842 4888 Facsimile: (08) 9842 4828 Email: [email protected] Website: www.gsdc.wa.gov.au
Great Southern Development Commission 10 Dore Street KATANNING WA 6317 Telephone: (08) 9821 3211 Facsimile: (08) 9821 3336 Email: [email protected]
Other Formats
This Annual Report is available in other formats on request. The GSDC encourages readers to access the Report online through the GSDC website and to use recycled paper if they print a copy. For convenience, and to minimise download times, the annual report has been presented in sections. The online Annual Report is in PDF format.
GSDC ANNUAL REPORT 2007-2008
Great Southern Development Commission Building partnerships for regional prosperity
STATEMENT OF COMPLIANCE
Hon Brendon Grylls MLA Minister for Regional Development; Lands; Minister Assisting the Minister for State Development; Minister Assisting the Minister on Country Transport.
Sir
In accordance with Section 61 of the Financial Management Act 2006, we hereby submit for your information and presentation to Parliament, the Annual Report of the Great Southern Development Commission for the financial year ended 30 June 2008.
In the performance of its functions, the GSDC complies with all relevant written laws including but not limited to:
• The Regional Development Commissions Act 1993 (as amended) • Financial Management Act 2006 • Public Service General Agreement 2004 • Public Sector Management Act 1994 • Industrial Relations Act 1979 • Minimum Conditions of Employment Act 1993 • State Supply Commission Act 1991 • State Records Act 2000 • Salaries and Allowances Act 1975 • Freedom of Information Act 1992 • Occupational Safety and Health Act 1984 • Official Corruption Commission Act 1998 • Disability Services Act 1993 • Public Disclosure Act 2003
In the financial administration of the GSDC, we have complied with the requirements of the Financial Management Act 2006 and every other relevant written law. We have exercised controls which provide reasonable assurance that the receipt and expenditure of moneys and the acquisition and disposal of public property and incurring of liabilities have been in accordance with legislative provisions.
At the date of signing, we are not aware of any circumstances which would render the particulars in this statement misleading or inaccurate.
GSDC ANNUAL REPORT 2007-2008
Great Southern Development Commission Building partnerships for regional prosperity
TABLE OF CONTENTS
CHAIRMAN'S FOREWORD 1
OVERVIEW OF AGENCY 4
EXECUTIVE SUMMARY 4
OPERATIONAL STRUCTURE 5 ESTABLISHMENT 5 ORGANISATION CHART 6 BOARD MEMBERSHIP 7 OPERATIONAL STAFF 9
PERFORMANCE MANAGEMENT FRAMEWORK 10 OUTCOME BASED MANAGEMENT FRAMEWORK 10 CHANGES TO OUTCOME BASED MANAGEMENT FRAMEWORK 11 SHARED RESPONSIBILITIES WITH OTHER AGENCIES 11 REPORTING ON BETTER PLANNING: BETTER SERVICES 11
AGENCY PERFORMANCE 14
SELECTED PROJECTS BY GOAL 14 GOAL 1 - REGIONAL LEADERSHIP 14 GOAL 2 - INDUSTRY DEVELOPMENT 18 GOAL 3 - IMPROVE INFRASTRUCTURE 23 GOAL 4 - NATURAL RESOURCE MANAGEMENT 27 GOAL 5 - EFFICIENT AGENCY PERFORMANCE 30
SIGNIFICANT ISSUES AND TRENDS 32
OTHER SIGNIFICANT ISSUES AND TRENDS 34
DISCLOSURES AND LEGAL COMPLIANCE 35
CERTIFICATION OF FINANCIAL STATEMENTS 35
INCOME STATEMENT 38
BALANCE SHEET 39
STATEMENT OF CHANGES IN EQUITY 40
CASH FLOW STATEMENT 41
NOTES TO THE FINANCIAL STATEMENTS 42
PERFORMANCE INDICATORS 2007/2008 65
GSDC ANNUAL REPORT 2007-2008
Great Southern Development Commission Building partnerships for regional prosperity
CERTIFICATION OF KEY PERFORMANCE INDICATORS 65 GOVERNMENT DESIRED OUTCOME 68 KEY PERFORMANCE INDICATORS 68 KEY EFFECTIVENESS INDICATOR 68 KEY EFFICIENCY INDICATOR 70
OTHER FINANCIAL DISCLOSURES 71 PRICING POLICY OF GOODS AND SERVICES PROVIDED 71 CAPITAL WORKS 71 EMPLOYMENT AND INDUSTRIAL RELATIONS 71 STAFF TRAINING, RECRUITMENT AND DEVELOPMENT 71 WORKERS COMPENSATION AND REHABILITATION ARRANGEMENT 72
GOVERNMENT DISCLOSURES 73 CONTRACTS WITH SENIOR OFFICERS 73
OTHER LEGAL REQUIREMENTS 73 COMPLIANCE WITH PUBLIC SECTOR MANAGEMENT ACT SECTION 31(1) 73 ELECTORAL ACT COMPLIANCE 74 ANNUAL ESTIMATES 74 DISABILITY ACCESS AND INCLUSION PLAN 74 OCCUPATIONAL SAFETY AND HEALTH 75 RECORDKEEPING PLAN 76
GOVERNMENT POLICY REQUIREMENTS 77 CORRUPTION PREVENTION 77 SUBSTANTIVE EQUALITY 77 SUSTAINABILITY ACTION PLAN 77
GSDC ANNUAL REPORT 2007-2008
Great Southern Development Commission Building partnerships for regional prosperity
CHAIRMAN'S FOREWORD
During 2007/08 the Great Southern Development Commission (GSDC) has again driven its vision for sustainable development of the region’s economy through our shared belief in ‘building partnerships for regional prosperity’.
It has been a strategic objective of the Commission’s to add value to the region’s substantial plantation timber industry. In this regard it was pleasing to see site works begin this year for Plantation Energy Pty Ltd’s 250,000 tonnes per year biomass pellet plant. The company will commence the manufacture of export fuel pellets from tree plantation harvest residue at the newly-created Mirambeena Timber Processing Precinct during 2008/09.
The Commission convened the first meeting to create the 80 hectare Precinct in January 2004 and chaired and provided executive services to the resulting Timber Processing Precinct Working Group, consisting of a number of State Government agencies and industry proponents, which met bi-monthly over some 4 years. This year the GSDC joined with the Department of Industry and Resources to progress the release of an $8.6 million Precinct infrastructure package that will facilitate the current and future growth of this regional asset.
A major milestone was achieved in 2008 in that environmental approval was secured for the proposed Southdown magnetite mine. The GSDC has also driven the agency Working Group for this project in support of Grange Resources’ efforts to bring this mineral deposit, located 90 kilometres east of Albany, on stream. Buoyant mineral prices, as a result of continuing strong demand for steel in the dynamic economies of Asia, have created favourable conditions for the development of the proposed $1bn operation. However, environmental approval is still pending on key aspects of work at the Port of Albany, including the necessary dredging to enable the loading of Cape- sized ships.
Pleasing as it is to see the prospect of major development in a range of new industries, agricultural production remains the mainstay of economic activity in the Great Southern. In 2007/08 the sector was responsible for producing a significant proportion of the region’s $2 billion gross product. In this regard, GSDC has provided financial and lobbying support to the Katanning Shire in its bid to Government for resources to replace the Katanning saleyards. However, the combined efforts of the Shire, the Commission and a number of others were unable to secure a firm funding commitment from Government to this important piece of regional infrastructure in 2007/8. Similarly, the GSDC has also been unsuccessful in its lobbying to support the Shire of Plantagenet’s bid for Government investment in its Great Southern Regional Cattle Saleyards.
Much of the work in which the Commission is engaged to facilitate regional development is not easily visible. This includes its efforts to influence policies affecting the region. 2007/8 provided two key examples of this in the Commission’s sustained work in the areas of power and water headworks charging policy.
Page 1 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Partial success was evident in regard to electricity, where (with the support of colleagues) the Commission was successful in drawing the Government’s attention to the significant disparities which could arise as a consequence of the introduction of the new Distributed Headworks Charge (DHC) within the South West Interconnected System (SWIS). The outcome was the introduction of a rebate for “edge of the grid” customers which has significantly lowered the cost of connection in many situations. However, in its current form, the DHC remains a disincentive to development in areas at a distance to existing electricity sub-stations.
More recently, the Commission has been focused on the outcome of the Economic Regulation Authority’s (ERA) 9 month inquiry into developer contributions to the Water Corporation. The ERA has recommended to Government that the current State-based Standard Headworks Charge (SHC) for water be abandoned in favour of a uniform scheme-based charging model. Preliminary analysis by both the Water Corp and the ERA has shown that adoption of the ERA model would lead to a wide range of charges across schemes. In submissions and presentations to the ERA on this issue, the Commission has pointed out that its proposed location-based charging approach is likely to disadvantage some regional towns and, if unmitigated, could act as a disincentive to development in many of these areas.
The Commission has provided advice to Government that the “locational signal” favoured by the ERA in regard to the cost of the provision of water and electricity headworks would appear to be at odds with the thrust of sound regional development policy and the intent of certain Government programs, such as Land Corp’s Small Town Development Program and the Dept. of Local Government and Regional Development’s regional headworks scheme. Moreover, it is also at odds with the ambitions of our local government stakeholders, many of which are seeking to respond to demand for urban land in towns where margins are already too low to attract professional developers.
The GSDC is playing a role in a number of initiatives to address essential services provision in the region, including chairing the Regional Infrastructure Group, providing resources to and driving the South East Shires Regional Power Group (SESRPG), participation in the South Coast Power Working Group and the Timber Industry Road Evaluation Strategy (TIRES) group. In a bid to gain an independent assessment of power issues in the region’s east, GSDC funded a report by Matricon Pty Ltd. which was completed in January 2008. This report has already been influential in encouraging Western Power to engage with relevant stakeholders in regard to addressing the issues flagged in the report.
Extensive mining activity in the north of Western Australia is one of a wide range of factors that have resulted in regional skills shortages. The GSDC has demonstrated a long term commitment to working with employers to attract suitably skilled personnel to the region and continues to do so in a changing regulatory environment. In its role as a Regional Certifying Body for the Commonwealth, the GSDC has been working closely with the Department of Immigration and Citizenship. Through this partnership, the GSDC has been able to ensure continuing service and support to individual employers and major businesses on skilled migration matters across a wide range of sectors.
Page 2 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Effective natural resource management (NRM) is the base on which the future of most of the region’s economic drivers rest. The GSDC’s engagement with natural resource management extends beyond regional boundaries through ongoing relationships with organisations and individuals, at all levels of industry, government and the community. This includes our close relationship with South Coast Natural Resource Management Inc (South Coast NRM) and the UWA Centre of Excellence in Natural Resource Management (CENRM).
CENRM continues to grow in terms of size, influence and reputation. As at June 2008, this NRM research and education organisation had 10 full-time staff and had been awarded approximately $1.5m in research grants in the first six months of this calendar year. With support from a number of other organisations, the formation of CENRM was an initiative of the GSDC which continues to chair the CENRM Board of Management.
All the above highlight just some of the many areas in which the Commission has been active in 2007/8. I encourage stakeholders and all those interested in the operations of the Commission in general, to read this Annual Report in depth and gain an understanding of the broad reach of the Commission into the region and elsewhere.
This is my sixth and final year as Chairman of the Commission. The year has been a testing, but as usual, ultimately satisfying one. It has been a privilege to lead the Commission in perhaps the most dynamic period of the region’s history. I wish to thank my fellow Board members, the CEO and staff of the GSDC. Their efforts in maintaining good governance and their contributions, along with our stakeholders and partners, to our many achievements in sustainable economic development in the Great Southern, have made the past 6 years of my chairmanship an extremely productive and enjoyable one.
Page 3 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
OVERVIEW OF AGENCY
EXECUTIVE SUMMARY
The Great Southern Development Commission (GSDC) operates under the Regional Development Commissions Act 1993 and reports to the Hon Brendon Grylls MLA, Minister for Regional Development; Lands; Minister Assisting the Minister for State Development; Minister Assisting the Minister on Country Transport.
The GSDC has complied with the requirements of the Financial Management Act 2006, the Public Sector Management Act 1994 and all other relevant law.
The GSDC’s Strategic Directions 2006-2010 provides the road map for all of the agency’s activities.
The GSDC addresses the goals and outcomes identified in the Government’s Better Planning: Better Services – A Framework for the Strategic Management of the Western Australian Public Sector through its strategic plan as explained in Strategic Directions 2006-2010.
The GSDC’s projects and achievements, outlined from page 14, are the activities that are guided by Strategic Directions 2006-2010. The relationship between selected projects and Better Planning: Better Services is described from page 11 of this report.
An independent survey of key performance indicators showed that 84 per cent of the GSDC’s clients were very satisfied with the agency’s contribution to regional development. This result is 4 per cent over the target of 80 per cent.
The GSDC achieved an efficiency indicator of $40,729 per project over 40 projects.
In 2007/08, the net cost of the GSDC’s services was $1,629,144.
At 30 June 2008, the GSDC employed 14 FTE, or full-time staff equivalents, to achieve regional social and economic development outcomes for the Great Southern.
The GSDC’s compliance with Government policy and law is reported in the ‘Disclosures and Legal Compliance’ section from page 35 of this report.
Page 4 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
OPERATIONAL STRUCTURE
ESTABLISHMENT
The Great Southern Development Commission was established by the Regional Development Commissions Act 1993.
MINISTERIAL RESPONSIBILITY
The GSDC reports to the Hon Brendon Grylls MLA, Minister for Regional Development; Lands; Minister Assisting the Minister for State Development; Minister Assisting the Minister on Country Transport.
PURPOSE
The purpose of the GSDC is to assist the Great Southern region in achieving its economic development potential.
ROLE
The role of the GSDC is to coordinate and promote the economic development of the Great Southern region of Western Australia.
OBJECTS AND FUNCTIONS (Based on the Regional Development Commissions Act 1993 and amendments)
The objects and functions of the GSDC are to:
• Maximise job creation and improve career opportunities in the region; • Develop and broaden the economic base of the region • Identify infrastructure services to promote economic and social development within the region • Provide information and advice to promote business development within the region • Seek to ensure that the general standard of government services and access to those services in the region is comparable to that which applies in the metropolitan area • Generally take steps to encourage, promote, facilitate and monitor the economic development of the region.
Page 5 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
ORGANISATION CHART
Minister
Board
Chief Executive Officer
Executive Assistant Administrative Assistant Deputy Chief Executive Officer
Finance Officer Administrative Assistant
Senior Development Officers
Development Officers
Manager Aboriginal Enterprise
Page 6 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
BOARD MEMBERSHIP
At 30 June 2008, Board members by nomination categories were:
Ministerially Nominated:
Russell Harrison (Chairman) Mr Harrison is a partner at Lincolns Accountants, one of the largest accounting firms in regional WA. With a strong background in community service, he is currently Deputy Chair of the Board of the Albany Port Authority and acts as financial advisor to the Albany Community Hospice. Mr Harrison’s Board term expiry date is 28 February 2009.
Denis Sawers (Deputy Chair) Mr Sawers is the former General Manager of the Albany Plantation Export Company (APEC). Mr Sawers currently offers consultancy services as a Forestry Production Advisor. Mr Sawers’ Board term expiry date is 30 November 2009.
Beverley Gilbert Mrs Gilbert manages the family vineyard and cafe, Gilberts, at Kendenup. She was a co-founder of the Great Southern Region Marketing Association, and is a strong advocate of the Great Southern Naturally brand. Mrs Gilbert’s Board term expiry date is 30 November 2008.
Community Nominated:
Ian Mayo Mr Mayo is the General Manager of Plantagenet Wines. He is active in the State’s wine industry and is currently a committee member of the Wine Industry Association of Australia and of the Great Southern Wine Producers’ Association. Mr Mayo’s Board expiry date is 30 November 2009.
Robert Lucas Mr Lucas manages the historic Camp Quaranup recreational facility and is the proprietor of a local mussel and abalone farm. He is a member of several industry and community groups, and is the President of the Great Southern Aquaculture Association. Mr Lucas’ Board term expiry date is 30 November 2010.
Ray Baxter Mr Baxter is a farmer at Woodanilling and is a former Chairman of the Great Southern Regional Road Group. He has a long record of active involvement in transport issues in the region. Mr Baxter’s Board term expiry date is 30 November 2008.
Nominated by Local Government:
Kerry Stone Mrs Stone is a Shire of Gnowangerup Councillor. She has held roles on a number of shire committees including health and building, finance, industrial relations and tourism and has a background in farm management. Mrs Stone’s Board term expiry date is 30 November 2009.
Page 7 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Nick Burges Mr Burges is President of the Shire of Cranbrook. He has been involved in local government, community organisations, farming and sporting activities in the Cranbrook region for many years. Mr Burges’ Board term expiry date is 30 November 2011.
Cathy Crosby Mrs Crosby is President of the Shire of Kent. She has held roles on a number of Shire and regional committees including bushfire, roads, employment, planning, agriculture and sport. She has a background in retailing and farm management. Mrs Crosby’s Board term expiry date is 30 November 2008.
By Virtue of Office:
Bruce Manning Mr Manning is the Chief Executive Officer of the GSDC.
Page 8 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
OPERATIONAL STAFF
As at 30 June 2008, the staff members were:
Bruce Manning, Chief Executive Officer
Russell Pritchard, Acting Deputy Chief Executive Officer
Duane Schouten, Senior Development Officer
Nicola Hemmings, Senior Development Officer
Dr Graham Townley, Manager Aboriginal Enterprise
Rowena Carnaby, Chief Finance Officer
Kate McKenzie, Tradestart Export Advisor
Pene Fewson, Development Officer
Dr John Gates, Communications Development Officer
Alison Carpenter, Executive Assistant
Toni Wheatcroft, Administrative Support Officer
Heidi Fischer, Administrative Support Officer
During the year, resignations were accepted from the following staff:
Maynard Rye, Deputy Chief Executive Officer
Bert Pardini, Manager Corporate Services
Debbie Johnston, Administrative Support Officer
Page 9 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
PERFORMANCE MANAGEMENT FRAMEWORK
OUTCOME BASED MANAGEMENT FRAMEWORK
The GSDC reports its operations under one Output: Regional Development.
Vision
The sustainable development of our region’s economy in harmony with our unique heritage and natural environment.
Goals
In accordance with the GSDC’s Strategic Directions 2006-2010, the agency delivers its projects by addressing the following goals:
Regional Leadership Support initiatives that build capacity of regional and rural communities to respond to the needs and opportunities for sustainable development Industry Development Support enterprise and industry development which diversifies and strengthens the regional economy Improved Infrastructure and Essential Services Achieve a coordinated approach to infrastructure development that facilitates business at all levels, industry and community development and improves service provision to the region Natural Resource Management Promote and support best practice natural resource management in the region Efficient Agency Performance Manage resources to achieve our core business of economic development with optimum efficiency
During 2007/08, the GSDC addressed its goals through the following activities:
• Supporting and developing industry projects • Co-ordinating approaches to government on strategic issues • Identifying and promoting investment opportunities • Providing support for existing and potential exporters • Accessing skilled people from overseas through the Australian Government’s migration program • Providing access to information on government programs and industry support services.
Page 10 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
CHANGES TO OUTCOME BASED MANAGEMENT FRAMEWORK
There have been no changes to the outcome based management framework during 2007/08.
SHARED RESPONSIBILITIES WITH OTHER AGENCIES
The GSDC has no shared responsibilities with other agencies but does work collaboratively with other agencies to achieve the Government’s desired outcomes in the Great Southern.
REPORTING ON BETTER PLANNING: BETTER SERVICES
Better Planning: Better Services – A Framework for the Strategic Management of the Western Australian Public Sector is a concise statement of the State Government’s intentions to improve the quality of life for all Western Australians.
It comprises five goal areas:
• People and Communities • The Economy • The Environment • The Regions • Governance
The GSDC implements the Government’s Better Planning: Better Services policy through the agency’s strategic planning document Strategic Directions 2006-2010. Selected GSDC activities, as they relate to this Government policy, are listed in the tables below.
For a description of each activity and outcomes, please refer to the page of this Annual Report indicated in the second column of each table.
People and Communities
To enhance the quality of life and wellbeing of all people throughout Western Australia.
GSDC Activity Page #
West Australian Community Foundation 16 Southern Regions Community Leadership 16 Runaway Beach Bus 16 Albany Aquatic and Leisure Centre Upgrade 17 UWA Perth International Arts Festival – Great Southern 20 Brig Amity Restoration and Amity Precinct Enhancement 24
Page 11 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
The Economy
To develop a strong economy that delivers more jobs, more opportunities and greater wealth to Western Australians by creating the conditions required for investment and growth.
GSDC Activity Page #
Regional Development Scheme 14 Tourism Development in the Northern Great Southern 16 Indigenous Economic Development 18 Mungart Boodja Art Centre 18 Western Australian Agribusiness Development Centre 18 TradeStart 20 Kodja Place 22 Gnowangerup Heritage Centre 25
The Environment
To ensure that Western Australia has an environment in which resources are managed, developed and used sustainably; biological diversity is preserved and habitats protected.
GSDC Activity Page #
Centre of Excellence in NRM 27 GSDC Medal for Excellence in NRM 27 South Coast Natural Resource Management Inc 27 Higher Education (Restoration Ecology) 28 Sandalwood Investment 28
Page 12 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
The Regions
To ensure that Western Australia is strong and vibrant.
GSDC Activity Page #
Great Southern Region Marketing Association 15 Migration Assistance 17 Tourism Industry Development and Promotion 19 Investment Attraction 20 Yongergnow Malleefowl Centre 21 Infrastructure Working Groups 23 Albany Waterfront Development 23 Albany Entertainment Centre 23 Timber Industry Road Evaluation Strategy 24 Stirling Range Mountain Discovery Centre 25 Energy Infrastructure 26 Katanning Saleyard Complex 26
Governance
To govern for all Western Australians in an open, effective and efficient manner that also ensures a sustainable future.
GSDC Activity Page #
Complaints Management Policy 30 Freedom of Information Statement 30 Risk Management 30 Compliance with Public Sector Standards 73 Disability Access and Inclusion Plan 74 Occupational Safety and Health 75 Recordkeeping Plan 76 Sustainability Action Plan 77
Page 13 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
AGENCY PERFORMANCE
SELECTED PROJECTS BY GOAL
GOAL 1 - REGIONAL LEADERSHIP
Regional Development Scheme
The Great Southern Regional Development Scheme is one of five funding schemes implemented through the State Government’s Regional Investment Fund. The aim of the Regional Development Scheme (RDS) is to provide financial assistance to a total of $500,000 to regional projects.
In August 2007, the GSDC received sixty expressions of interest for proposed regional projects to the value of $2.2 million. Twenty four were funded.
The projects approved for funding reflect the GSDC’s strategic goals and priorities. The Round Seven funding allocations were:
• $50,000 to the Clontarf Foundation to support the development of the Great Southern Football Academy at Katanning • $40,000 to the Shire of Katanning to assist in the redevelopment of the Katanning Aquatic Centre • $40,000 to the Shire of Gnowangerup to assist in the co-location of the town's medical and community resource centre • $25,000 to the Jaycees Community Foundation Inc to assist in the development of the STARS of WA Multi-Regional Tourism Attraction Marketing Program • $30,000 to Yongergnow Inc to provide marketing support to increase visitation to the Yongergnow Malleefowl Centre at Ongerup • $30,000 to the Great Southern Region Marketing Association and the Great Southern Wine Producers Association to support collaborative marketing of the region's food and wine • $30,000 to Dovercourt Pty Ltd to assist the commercialisation of specialist merino wool fabrics • $25,000 to the Great Southern Distilling Company Pty Ltd to construct a research laboratory to develop liquor flavourings from local plants • $25,000 to the Shire of Tambellup to assist in the development of independently living seniors accommodation • $24,000 to the Peaceful Bay Rescue Group Inc to assist in the acquisition of a dedicated offshore rescue vessel • $20,000 to Southern Renewable Fuels Pty Ltd to provide marketing and signage associated with the production of bio-diesel in Cranbrook • $20,000 to the Gnowangerup Aboriginal Corporation to support project management for the development and commissioning of the Gnowangerup Heritage Centre • $20,000 to the Shire of Cranbrook to assist with the construction of an ablution block at the Frankland River Caravan Park
Page 14 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
• $15,000 to Albany Gateway Inc to support the redevelopment of the regional internet portal • $15,000 to the Shire of Broomehill to assist the development and promotion of a Hidden Treasures Rural Tours project • $15,000 to the Albany Maritime Foundation Inc to support the development of the Kinjarling/Albany Stories: Walking 20,000 Years Strategic Pathway Master Plan • $12,000 to the Shire of Plantagenet to assist the Plantagenet Trail Development Program • $10,000 to the Mt Barker Wine Producers Association to support the Mt Barker Grapes and Gallops event, featuring the Mungrup Sprint • $10,000 to the Shire of Woodanilling to assist in establishing the Woodanilling Heritage Walk Trail and for Visitor Interpretation Centre planning • $10,000 to the Kojonup Tourism Association Inc to produce an integrated Kojonup Tourist Information Guide and Map • $9,000 to the City of Albany to assist in developing and implementing a collective community plan • $5,000 to the Jerramungup Sports Club Inc to assist in planning for the refurbishment of the Jerramungup Sports Club and its integration with other facilities • $5,000 to the Mt Barker Tourist Bureau Inc to assist in the development of a collaborative approach to tourism marketing in the region • $5,000 to the Western Australian Agribusiness Development Centre to provide capital equipment to support the Timbercrete project at Tambellup.
Great Southern Region Marketing Association
The Great Southern Region Marketing Association (GSRMA) was established in 2001 to support cross-regional marketing efforts. The GSRMA’s vision is to develop the synergy of food, wine, agriculture and tourism by creating a regional brand image.
Since 2001, an average of $72,000 per annum has been made available to the GSRMA and associated organisations to coordinate key events. These activities have been instrumental in giving the region access to avenues of promotion that would not otherwise have been possible for individual companies or organisations.
A unified point of contact that represents local producers sets the Great Southern apart from other regions within the State. As industry participation and contributions to the GSRMA have increased, the GSDC has been able to reduce its support accordingly.
Key activities under the GSRMA’s program include the promotion of the Great Southern Naturally brand, the Taste Great Southern festival and the Great Southern Food and Wine Touring Guide. The group has also co-ordinated a regional presence at a range of events and trade and consumer shows; organised media familiarisation visits to the region and press coverage for members; and maintained a website. In 2008, Taste Great Southern presented 24 events in seven towns across the region. An estimated 2,500 people attended these events.
Page 15 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Tourism Development in the Northern Great Southern
Tourism development in the northern shires of the Great Southern is being driven by the Hidden Treasures of the Great Southern working group. The seven Shires of Broomehill, Kent, Katanning, Gnowangerup, Jerramungup, Tambellup and Woodanilling work together to promote key tourist attractions and to develop visitor servicing within their towns.
The GSDC has provided financial support for a range of projects over the past four years including the development of drive trails and signage. In 2007/08 funding was granted through the RDS to hold AussieHost workshops in four of the shires.
The GDSC continues to work with the group on its program of developing tourism product. Currently the Hidden Treasures group is developing a rural touring tool kit and organising themed tours in participating communities.
Western Australian Community Foundation
In collaboration with the Western Australian Community Foundation (WACF), the GSDC has established a Challenge Grant program to initiate philanthropy in the Great Southern. The program works by challenging community groups or organisations to raise matching funds and in 2007/08 the project resulted in the distribution of a total of $36,500 to three communities.
The successful applicants selected were the Denmark Community Futures Fund, Albany Lions Community Care Centre – Community Project Development Fund and the Fellowship House Donation Account. The program was used to establish Donation Accounts within WACF’s Trust structures and to boost the size of the capital pool.
Lower Great Southern Strategy Technical Advisory Group
The Lower Great Southern Strategy was released in June 2007 to guide regional land use and infrastructure planning and development for the next 20 to 30 years. The focus is on matters of regional significance. The GSDC is a member of the Lower Great Southern Technical Advisory Group, which was convened by the Department of Planning and Infrastructure to implement the Strategy’s recommendations.
Southern Regions Community Leadership
The GSDC has continued its involvement with the Southern Region’s Community Leadership Group Inc. The association comprises the Great Southern, Peel and South West Development Commissions and key non-government representation. The third Southern Regions Community Leadership Forum was held in Pinjarra during September 2007 and attracted 200 participants.
Runaway Beach Bus
For the sixth successive year, the Runaway Beach Bus was organised and managed by the GSDC. The project was a funding partnership with the six Shires of the central Great Southern and several youth groups. As in previous years, the program offered two sponsored day-trips per week during January 2008 for 14-18 year old students
Page 16 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
from the central districts. The initiative again proved to be popular, with 150 participants taking the opportunity to visit Middleton Beach for the day.
Migration Assistance
The GSDC has continued to work closely with regional employers and the Department of Immigration and Citizenship (DIAC) to facilitate the granting of visas under the skilled sponsorship program.
As a DIAC Regional Certifying Body, the GSDC works with regional employers to coordinate sponsorships and nominations for the Regional Sponsored Migration Scheme, the Regional 457 temporary business entrant, and the Occupational Trainee visa subclasses. In 2007/08 the GSDC certified an average of four permanent and temporary skilled visa nominations per month.
The GSDC also responded to approximately forty requests for information per month from employers and from people already in Australia on visitor, temporary or working holiday visas.
The GSDC will continue to act as a point of contact for the State Government’s Skilled Migration Centre.
Albany Aquatic and Leisure Centre Upgrade
The GSDC has assisted in the City of Albany’s redevelopment of the Albany Leisure and Aquatic Centre through managing a State Government 2005 election commitment grant of $500,000. The final payment of $50,000 was made in 2007/08.
The project was a funding partnership between the City of Albany, the Department of Sport and Recreation, Lotterywest and the Department of Transport and Regional Services which aimed to expand the indoor recreation and aquatic facilities available to the Albany community.
The extensive redevelopment has significantly enhanced the utility of the Leisure and Aquatic Centre as a regional social infrastructure asset.
Page 17 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
GOAL 2 - INDUSTRY DEVELOPMENT
Indigenous Economic Development
The GSDC has facilitated a range of successful regional economic development projects for Indigenous clients in the Great Southern. The GSDC received $100,000 from State Treasury and $40,000 from the Commonwealth Department of Education, Employment and Work Place Relations in 2007/08 to progress priority projects in the region.
State and Commonwealth financial support enabled the GSDC to extend its enterprise development support and links to a range of programs.
Priority projects supported in 2007/08 include:
• Great Southern Football Academy (Clontarf Foundation at the North Albany Senior High School) • Regional Strategy for Indigenous training and employment in the Great Southern’s plantation timber industry • Indigenous Labour Survey to investigate Indigenous employment and training opportunities in the region’s building construction industry • Aboriginal heritage research in partnership with the University of Western Australia, Department of Indigenous Affairs and the Department of Environment and Conservation • Referral of Aboriginal small business proponents to the designated development agency.
Mungart Boodja Art Centre Inc
The GSDC supported the Mungart Boodja Art Centre with direct financial assistance for the facility’s exhibition and events program. The GSDC also assisted with the design and production of the Centre’s website, which is now fully integrated with an Artist Management System and online catalogue of artworks for sale.
Highlights this year included the hosting of 15 students from the United States on a regional study tour and presenting the Spirit of Carrolup exhibition and film screening in Albany and Katanning.
Through the study tour and other joint activities, Mungart Boodja has continued to build its exchange program with Colgate University in the United States and intends establishing a Donation Account through the GSDC’s Challenge Grant Program in 2008/09.
Western Australian Agribusiness Development Centre – Timbercrete Project
The Community Development Employment Program (CDEP) team involved in the project has undertaken intensive training in building block production and construction techniques during early 2008. One outcome of this work was the construction of a display area at the Tambellup agribusiness incubator.
Page 18 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
With support from the GSDC and the Southern Aboriginal Corporation, the Western Australian Agribusiness Development Centre (WAADC) Manager and the CDEP team also completed the business planning that will define the Centre’s operational model for 2008/09.
The project, which has attracted core funding from State and Commonwealth programs, will offer a steady transition to paid employment for the CDEP team and an independent contracting model for the WAADC. The outcome will be a patented brick and paving enterprise that will eventually generate small infrastructure and housing projects in the region.
Breaksea Island Heritage Restoration
The Breaksea Island Heritage Restoration project is a component of the GSDC’s maritime heritage tourism development strategy. The multi-staged project aims to fully restore the Breaksea Island lighthouse and heritage precinct and develop it as a conservation, community education and eco-tourism asset.
The Breaksea Island lighthouse and associated buildings appear on both the State and National Registers of Heritage Places and are considered ‘rare’ as a complex of structures. The Heritage Council of WA has recognised the importance of the initiative and has issued an emergency works permit in the absence of a heritage plan.
The project is following a staged work plan and, to date, the GSDC has committed $100,000 to Stages 1 and 2 through the Regional Development Scheme. Stage 1 of the project, which focused on the re-roofing of the 1902 and 1908 lighthouse keeper’s buildings and the stabilisation of the 1858 convict-built lighthouse, was completed during 2007/08.
The success of this initiative will rely on the strong working relationship between the GSDC, the Department of Environment and Conservation, the Albany Maritime Foundation and the local community volunteers who have generously contributed their expertise and over 800 hours of labour to this ambitious project.
Tourism Industry Development and Promotion
The GSDC continues to work in partnership with key stakeholders to further develop a sustainable tourism industry for the Great Southern.
Activities and supported projects in 2007/08 included:
• The development of tourism product and infrastructure at the Gnowangerup Heritage Centre, Mungart Boodja Art Centre, Yongergnow Malleefowl Centre, Kodja Place and Whale World • Support to communities to improve visitor servicing and information dispersal including the Hidden Treasures AussieHost training and partnerships with regional Visitor Centres • Regional marketing efforts to promote visitation including funding support for the STARS of WA (Southern Tourist Attraction Routes); Australia’s South West’s promotion of regional wine and food trails; and ongoing collaboration with the Great Southern Region Marketing Association
Page 19 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
• Support for events and conferences that were held in the region including the Mount Barker Grapes and Gallops; Frankland River Music Festival; Perth International Arts Festival Great Southern program; FACET (Forum Advocating Cultural and Eco Tourism) Annual Conference in Albany; the WA State Coastal Conference; and the State Regional Arts Conference.
UWA Perth International Arts Festival Great Southern Program 2008
The Perth International Arts Festival (PIAF) Great Southern Program 2008 was another outstanding success with a total audience of approximately 9,000 people. This was more than double the number who attended the first program in 2003. The program featured a diverse range of attractions including theatre, film, jazz, world music, chamber music, literature, visual arts, and culinary and community events.
The GSDC contributed $25,000 to the PIAF Great Southern Program through the Regional Development Scheme. Other funding partners included the City of Albany, the Water Corporation and the State Government through the WA Regional Initiatives Scheme.
The GSDC signed a Memorandum of Understanding with PIAF in May which should ensure programming in the region until at least 2011.
TradeStart
The GSDC’s TradeStart partnership with Austrade is an initiative to assist small- and medium-sized businesses to develop skills and knowledge about exporting.
In 2007/08, intensive coaching work was focused on companies that are new to exporting and on assisting established exporters to expand into new markets. Occasional workshops and group training programs supported these activities.
In February 2008, the TradeStart Export Advisor travelled to Japan and Korea to conduct meetings and to attend events on behalf of Great Southern producers. The industry sectors represented included wine, meat, skin care, timber, grain and pet food.
Investment Attraction
A key GSDC activity involves marketing the Great Southern to potential investors and to those seeking to relocate to the region. During 2007/08, the GSDC provided regional information to these client groups in order to assist them in making informed investment decisions. The information is often used in scoping and feasibility studies and for developing other business planning tools.
The GSDC’s investment clients during the period included proponents in pulp and paper production, mining, and biomass technology. The GSDC also liaised with Perth- based businesses from various industry sectors which were looking to expand operations to the Great Southern.
Page 20 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Major Projects Register
In 2007/08, the GSDC continued to maintain a major projects register in order to provide regular updates on significant industry, infrastructure and construction-related initiatives that were being undertaken in the region. The aim of the register is to inform the community of the status of major projects and to maximise local and regional business and employment involvement.
These developments are listed on the GSDC’s website and publicised through the GSDC Bulletin. Highlights for the year included expanded funding for the Albany Waterfront project, including the Albany Entertainment Centre; a number of important Water Corporation projects; the Albany Leisure and Aquatic Centre upgrade; and the Mt Barker Bypass.
Building Innovation and Sustainability Working Group
The GSDC convened and chaired a working group to facilitate and demonstrate building innovation and affordability in the Great Southern. The Building Innovation and Sustainability Working Group (BISWG) is made up of representatives from the GSDC, the building industry, the UWA Architecture Department and the Great Southern Area Consultative Committee.
The BISWG has set as an initial target the development of a demonstration house that would highlight affordability through the use of innovative design and materials. The display house has the potential to set design standards within the McKail subdivision at Albany. The Department of Housing and Works has agreed to provide a block for the demonstration house and UWA has run a special course involving a group of fifth year architecture students in the development of a range of house designs.
Yongergnow Malleefowl Centre
From its official opening in February 2007 the $1.2 million Centre has promised to be more than just the story of the malleefowl in the Western Australian landscape. The facility is strategically located in close proximity to the Stirling Range, Porongurup and Fitzgerald River National Parks and in a district which still contains significant numbers of malleefowl.
The exhibition area, cafe and research facilities will facilitate an expansion of educational and conservation activities and will be a substantial regional asset for many years to come.
The GSDC will continue to work with the organisation as it further develops its tourism product. In this, the GSDC will provide advice on State and Commonwealth Government grant programs and assist with any approaches to the corporate sector.
Albany Boat Shed
In 2007/08, extensions to the Boat Shed were completed, including the construction of a formal entry area, a viewing platform and a fully equipped space that will be used as a small function venue.
Page 21 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
The Boat Shed hosted the inaugural Festival of the Sea event on Easter Saturday. This was supported by a GSDC grant and was held to promote the local fishing industry and Albany’s maritime heritage. An estimated 6,000 people attended and the event is scheduled to be run again in 2009.
Kodja Place
The GSDC continued to support the Kojonup Tourism Association’s work at Kodja Place. In 2007/08 the focus was on improving signage and tourism information. Financial assistance for two projects was initiated during the year. The signage and banners along the highway was the first to be completed and this was followed by the development of a tourism information map. Further marketing work will be completed in the next financial year. The new retail café was completed, with support from Regional Partnerships funding.
In addition, Kodja Place participated in a number of regional initiatives that included hosting a slow food lunch as part of Taste Great Southern 2008, and a ROSS (Regional, Organic, Sustainable, Seasonal) produce market. These events, together with winning the GWN 2007 Top Tourism Town, all helped to further raise the profile of the Centre.
Page 22 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
GOAL 3 - IMPROVE INFRASTRUCTURE
Infrastructure Working Groups
In 2007/08, the GSDC and the Department of Industry and Resources were successful in securing a government commitment to invest $8.6 million in the Mirambeena Timber Processing Precinct near Albany for common user infrastructure. It is anticipated that this strategic initiative will facilitate the establishment of additional timber value-adding projects.
During the period the GSDC continued to chair the Southdown Magnetite Mine Working Group. This group is providing assistance to Grange Resources as it works through the planning and approvals processes relating to the establishment of its $1 billion magnetite mine at Wellstead, east of Albany.
The GSDC also chaired the Regional Infrastructure Group, which comprises those agencies most closely involved in providing infrastructure services. The aim of this working group is to improve the level of communication between the key agencies, to ensure a uniform understanding of infrastructure issues and to develop a unified approach in addressing investment and planning issues.
Albany Waterfront Development
The Albany Waterfront Development is a partnership between the City of Albany, the GSDC, the Department of Planning and Infrastructure and LandCorp. LandCorp is the overall manager of the project which will include a mix of commercial buildings, tourist accommodation and a multi purpose marina. The Stage 1 works, which included the subdivision infrastructure requirements for the Albany Entertainment Centre and two commercial sites, were completed during 2007/08. The Princess Royal Drive realignment was also substantially advanced, as were the environmental approvals and design work associated with the marina, boat harbour and hotel.
The fully designed Stage 2 works will be tendered in early 2008/09 and will include all of the other commercial sites and part of the jetty. The project will now advance through the stages of LandCorp-managed tendering to construction.
Albany Entertainment Centre
2007/08 was a significant year of development for the Albany Entertainment Centre (AEC) project. In September 2007 the State Government formalised its commitment as the principal funder of the integrated development by signing a Memorandum of Agreement with the City of Albany.
The concept and detailed design for the AEC was undertaken by the project architects and, after extensive consultation, these working drawings were accepted by the project partners. The GSDC has management responsibility for the project budget and is a member of the AEC Project Control Group, along with the City of Albany and the Department of Housing and Works, which is the project manager.
The tender process for the AEC was completed in June 2008, with the PCG receiving a range of competitive submissions in a very buoyant construction market. It is projected
Page 23 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
that works on the AEC site will start in late 2008 and that the City of Albany will assume ownership of the completed project in early 2011.
ANZAC Peace Park
The implementation of the Anzac Peace Park Masterplan was commenced during 2007/08 and, in this, a key task for the City of Albany was the confirmation of the project’s grant funding. The City has planned the staged development of the heritage infrastructure to be the centrepiece of the 100 year commemoration of the 1914 departure of Australian and New Zealand troops to the Gallipoli campaign.
A Regional Development Scheme grant assisted the planning stage for the Peace Park, while the majority of the funding was provided by the City of Albany, Lotterywest and the State Government under a 2005 election commitment.
While the project management committee has had to address a shortfall in funding from two major Commonwealth programs, it remains confident that the initiative will advance in 2008/09 and that all works included in the Masterplan will eventually be completed. This will involve a staged planning and construction program that will result in a strong thematic link between the Albany Waterfront and the Amity Heritage Precinct. The GSDC will continue to support the City of Albany with this significant infrastructure project.
Brig Amity Restoration and Amity Heritage Precinct Enhancement
Through a State Government election commitment and a Regional Development Scheme grant, the GSDC has directed $60,000 to design enhancements for the Heritage Precinct and to undertake restoration work on the Brig Amity replica. The Precinct Masterplan has provided an overall vision and detailed design components that will allow a staged approach to the works.
The Brig Amity refurbishment is a priority activity and the GSDC is represented on the reference group that was established by the City of Albany. The group provides coordinated stakeholder input to the project consultants.
The development of the Masterplan was the key element that enabled the City to secure additional funding from the Commonwealth’s Australian Tourism Development Program and from Lotterywest.
Timber Industry Road Evaluation Strategy
The Timber Industry Road Evaluation Strategy (TIRES) group has continued to work to secure the funding that will ensure that the regional road system is adequate for the timber transport task into the future. The GSDC has provided executive support to TIRES and, with Main Roads Western Australia, has also coordinated the planning process.
The State Government’s cumulative funding contribution for TIRES over the past five years has been welcomed by industry and local governments and has demonstrated the benefits that good planning and cooperation can deliver. The State Government
Page 24 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
has contributed $5.78 million to local government timber roads between 2004 and 2008.
Community Resource Centres
In 2007/08 the GSDC worked with the Shire of Jerramungup to complete the allocation of the State Government’s capital funding for its community centre. As with the earlier Frankland and Wellstead centres, the GSDC’s role was to facilitate grant transfers and to work with the communities involved in accessing State and Commonwealth funding programs.
During late 2007, the GSDC assisted the Shire of Gnowangerup in its funding application process to establish a multi-function community centre in the town. Key parts of the initial stage of the project were the development of a funding package and a successful application for $200,000 from the Regional Headworks Scheme.
As a result of the termination of the Regional Partnerships Program, the Shire of Gnowangerup will need to further consider the scale of the community centre project in 2008/09. The GSDC will continue to work with the Shire and with other local governments in the development of community centres.
Stirling Range Mountain Discovery Centre
In 2007/08 the GSDC continued to work with regional stakeholders on the development of a Mountain Discovery Centre near Bluff Knoll in the Stirling Range National Park. Based on a planning study completed in 2006, the interpretive and tourism facility will require an investment of $7 million.
A highly successful cultural heritage and natural resource management symposium was held at the Stirling Range Retreat in November 2007. Supported by the GSDC, the University of Western Australia, the Department of Indigenous Affairs and South Coast NRM, the one-day public event highlighted the outcomes of the Mountain Discovery Centre planning, the results of recent heritage surveys and also helped raised public awareness of the significance of the place to the area’s traditional owners.
Gnowangerup Heritage Centre
The Gnowangerup Aboriginal Corporation (GAC) Cultural Heritage Centre is a five year project which was significantly advanced in 2007/08. Upon completion, the facility will showcase Noongar heritage and significant aspects of the town’s history as part of an integrated cultural precinct.
It is also planned that the Heritage Centre will include a native tree farm nursery and bush products enterprise.
With financial support from the GSDC and Lotterywest, the GAC completed a feasibility study into future works at the Centre in 2007/08. With assistance from the Shire of Gnowangerup and the GSDC, local corporations will be seeking funding to commence Stage 2 of the project in 2008/09.
Page 25 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Energy Infrastructure
The GSDC has continued to work with the Shires of Jerramungup, Gnowangerup and Ravensthorpe to address long-standing power supply constraints in the South East subregion.
In 2007/08, a power supply options study was completed by Matricon on behalf of the South East Shires Regional Power Group (SESRPG). The engineering company’s report recommended strategies to improve the distribution of power to the eastern district. The report also discussed opportunities for leveraging power supply benefits from the proposed Grange Resources Southdown magnetite project. The study was funded through the Regional Development Scheme.
As part of the study process, the GSDC facilitated a meeting between SESRPG representatives and Western Power’s Board of Directors in order to discuss the findings of the report and the identified power supply issues.
Input from the GSDC and regional stakeholders into Western Power’s Distribution Headworks Policy has helped to ensure that future customers, who will have to meet sharply higher headworks costs, will be entitled to a partial rebate.
During the past year the GSDC was also represented on the South Coast Power Working Group. The group, which was convened by Western Power, is examining demand side management and embedded generation approaches for extending the capacity of the power supply network to Denmark and Walpole.
Katanning Saleyard Complex
The GSDC has been a partner with the Shire of Katanning over the past five years in the conceptualisation and financial planning associated with the development of a new stock selling facility for the central Great Southern. During 2007/08 the project’s business planning was advanced. In mid 2007, the GSDC initiated a review of the project’s business case in order to quantify capital cost escalations, environmental factors and the real economic benefits of the development to the industry and region. The GSDC contributed $40,000 towards the cost of the review.
The main outcome of the business case review was the confirmation that, while the development of a new saleyard at Katanning would generate a range of economic benefits, it would also place a massive cost on the Shire of Katanning under the existing business model. Another result of the investigation was that the proposed facility will remain a key part of the State Saleyard Strategy and that the Shire will now work more closely with the Western Australian Meat Industry Association.
The Shire and the GSDC also met with a private sector investment group that was interested in building, owning and operating saleyards in the Katanning and Plantagenet districts.
Page 26 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
GOAL 4 - NATURAL RESOURCE MANAGEMENT
Centre of Excellence in Natural Resource Management
The Centre of Excellence in Natural Resource Management (CENRM) was an initiative of the GSDC and is structured as a cooperative partnership between parties with a vested interest in natural resource management. The partners include the University of Western Australia, the Department of Agriculture and Food, the Department of Water and the Great Southern Area Consultative Committee. The GSDC continues to chair the CENRM Board of Management
CENRM focuses on the better management of natural resources in Australia. The Centre has also been highly successful in attracting research funding for a wide range of regional, national and international projects including the AusAID-funded Australian Water Research Facility. Funds from both the South Coast and the South West NRM organisations support a range of regional projects that are addressing biophysical and social issues.
In 2008, CENRM increased its consultancy capacity to undertake electro-fishing, research in estuarine locations and Indigenous community engagement. The funding was provided through the $3.7 million Tropical Rivers and Coasts Project.
CENRM employed the equivalent of twenty full-time teaching and research staff during 2007/08 and produced forty-three publications and reports that have been applied to the development and management of sustainability in the broader community.
CENRM has maintained a high standard of teaching and research and has the continued support of the community and the GSDC.
The GSDC Medal for Excellence
The GSDC Medal for Excellence in Natural Resource Management celebrated its seventh year in 2008 and attracted an exceptional field of candidates. The Medal gives public recognition and financial reward for outstanding individual achievement and innovation in natural resource management by people working in the Great Southern.
In June, the 2008 winner, Russel Thomson, was presented with a sterling silver medal by the Hon Kim Chance MLC, at a formal dinner for distinguished guests.
The 2007 medal winner, Geoff Bee, used part of his award money to travel to the eastern states to conduct research into carbon sequestration and how it could benefit Great Southern farmers.
South Coast Natural Resource Management Inc.
South Coast Natural Resource Management Inc (South Coast NRM) is the peak group for natural resource management on a significant part of the State’s southern coastal and adjoining inland region. The organisation is committed to sustainable long-term management of the natural environment in the Great Southern, South West and Goldfields-Esperance regions. The organisation has the community, industry and
Page 27 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
government support necessary to coordinate the planning, funding and delivery of integrated natural resource management over a wide range of environments.
The GSDC is represented on the South Coast NRM Council and the Regional Strategy Subcommittee and has worked closely with the organisation on the coordination of State and Commonwealth Government funding.
Over the past three years, investment guided by Southern Prospects; the South Coast Regional Strategy for NRM, has directed $47.5 million of public funding from the National Action Plan for Salinity and Natural Heritage Trust into projects. South Coast NRM has also leveraged over $80 million of co-investment from other sources, including private land managers.
In 2007/08, South Coast NRM regional delivery organisations achieved many successful outcomes including:
• Implementation of on-ground recovery plans for the Carnaby’s Black Cockatoo • Support to implement the Phytophthora Dieback Strategy • Post-fire environmental weed control surrounding the Porongurup National Park • Managing invasive species • Restoring connections between Noongar people and land in the South West • Conducting Cultural Awareness Training • Water source and allocation planning including implementing Water Resource Protection Plans • Marine Geographic Information Systems and Resource Compilation.
Higher Education
The GSDC was successful in securing $800,000 from the State Government for the University of Western Australia (UWA) Albany Centre between 2001 and 2006. This money has provided the infrastructure needed to increase the University’s capacity to deliver high quality tertiary education in the Great Southern region.
More recently, the UWA Albany Centre and CENRM secured funding commitments from the GSDC and the Jack Family Trust to provide six scholarships for undergraduate students studying towards a Bachelor of Science (Restoration Ecology) degree. The degree is offered exclusively at the UWA Albany Centre and is designed with specific reference to the South Coast’s unique and fragile environment.
The Bachelor of Science in Restoration Ecology course is complementary to the activities of CENRM and increases the region’s reputation as a centre of research excellence for NRM issues.
Sandalwood Investment
As a member of the Sandalwood Investment Steering Group, the GSDC has promoted the participation of stakeholders and investment groups in the sandalwood industry. The Steering Group is made up of CENRM, Mt Romance, Quechinup Forestry, South Coast NRM, South East Forest Foundation, and farmer representatives.
Page 28 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
During 2007/08, the GSDC also contributed $2,000 towards the development of an Industry Development Plan for a sandalwood (Santalum spicatum) plantation industry in Western Australia. This $30,000 project has identified the strategies and key actions required to ensure the growth of a sustainable and profitable plantation industry based on this species.
The plan sets out the following strategies, each with supporting key actions:
• Secure the position of Australian sandalwood in the market place • Develop and maintain a strong research program to underpin industry development • Improve the mechanisms for industry cooperation • Expand the sandalwood plantation estate • Promote a high standard of grower performance • Seek State Government support during the critical period to 2020 when the plantation resource will be phased in.
Page 29 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
GOAL 5 - EFFICIENT AGENCY PERFORMANCE
Capital Purchases
During the year, the GSDC purchased a new colour printer, upgraded mobiles phones to Next G, improved antivirus software and replaced window treatments in accordance with the Assets Replacement Program agreed with the Department of Treasury and Finance.
Total capital purchases during 2007/08 amounted to $13,170.
Complaints Management Policy
The GSDC values its working relationships and partnerships and is committed to providing its customers with high quality services.
A Complaints Management Policy (CMP) is in place to manage client criticisms. Through the CMP process any complaints received are investigated and, if necessary, improvements are made to the GSDC’s operational methodology.
The CMP accords with Government policy and its provisions are accessible through the GSDC website. The contact details of the Complaints Officer are:
Chief Executive Officer Great Southern Development Commission PO Box 280 ALBANY WA 6331
The GSDC received no complaints during 2007/08.
Risk Management
The GSDC has a Risk Management Policy and a Risk Management Plan. GSDC’s Risk Management Committee (RMC) undertakes reviews of the controls exercised by the GSDC against the risk categories identified in the Risk Management Plan and investigates emerging areas of risk for the agency.
The RMC provides reports to the CEO and an annual report to the Board of Management on all matters of risk management. The GSDC has expanded its audit program to include all areas of risk management practice.
Freedom of Information Statement
The GSDC holds information in hard copy and electronic form. Documents held include inward and outward correspondence, contracts, agreements, reports, administrative files, personnel records, project files, financial records, internal manuals, statistical information, minutes of meetings, promotional material, pamphlets and brochures, human resource information and asset records.
Page 30 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
The GSDC does not charge for brochures. With the exception of requests lodged under the Freedom of Information Act 1992, no charge is levied on requests for information or for access to files, although the agency does reserve the right to recoup costs.
The documents of the GSDC may be inspected if application for inspection is in accordance with the Freedom of Information Act 1992.
The contact details of the Freedom of Information Officer are:
Chief Executive Officer Great Southern Development Commission PO Box 280 ALBANY WA 6331
The GSDC received two requests for information under the Freedom of Information Act 1992 in 2007/08.
Page 31 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
SIGNIFICANT ISSUES AND TRENDS
Gross Regional Product
The Gross Regional Product (GRP) measures the economic wealth of the region. It represents the value of production within the region at market prices.
The chart below shows the annual percentage change in real GRP (adjusted for inflation) over the past five years. Real GRP increased by 9.1 per cent over the 2006/07 year (the latest available figures).
Real Gross Regional Product Percentage Change
24.0% 21.1% 20.0% 16.0% 12.2% 12.0% 9.1% 8.0% 4.0% Percentage 0.1% 0.0% -4.0% -1.4% 02/03 03/04 04/05 05/06 06/07 Source: Department of Local Government and Regional Development using ABS data
Unemployment
The unemployment rate in June 2007 was 3.6 per cent, the lowest in more than a decade and down from last year’s figure of 4.4 per cent. The graph below shows the unemployment rate since1997.
Great Southern Unemployment Rate 9.0%
8.0%
7.0%
6.0%
Percentage 5.0%
4.0%
3.0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Department of Education, Employment and Workplace Relations
Page 32 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Construction and Building
The graph below shows the value of construction approvals for the Great Southern as a whole and for the City of Albany. Construction approvals for the region in 2006/07 were valued at $174.8 million, up 12 per cent from the previous year. Construction activity in Albany made up 69 per cent of the value of approvals in the period.
Great Southern Value of Construction Approvals
$200.0 $180.0 $160.0 $140.0 $120.0 $100.0 $80.0
Million Million Dollars $60.0 $40.0 $20.0 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 Great Southern Albany
Source: Australian Bureau of Statistics
Population
The estimated resident population of the Great Southern as of June 2007 was 55,946, an increase of 0.9 per cent from 2006. The graph below shows that except for 2004 the region as a whole has experienced steady population growth.
Great Southern Population 58,000
56,000 55,112 55,448 55,946 54,000 54,526 52,981 53,941 54,387 53,598 52,000 50,912 52,400 51,691 50,000
48,000 46,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Department of Local Government and Regional Development using Australian Bureau of Statistics data
Page 33 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
OTHER SIGNIFICANT ISSUES AND TRENDS
Regional industry activity in 2007/08 was estimated at $2 billion, with agricultural production remaining a key driver. The plantation timber industry continued to have a significant impact in diversifying the region’s agricultural economic base.
In 2007/08, plantation timber woodchip exports through the Port of Albany surpassed 1.4 million tonnes. This output is expected to grow to 2.5 million tonnes during 2008/09.
Recent volatility in world financial markets has had an impact on the Lignor timber value-adding project that was proposed for the Mirambeena Timber Processing Precinct at Albany. The development is now expected to be delayed by at least a year. However, other timber value-adding projects have continued to progress, including the biomass fuel pellet project.
Infrastructure provision in the areas of power, water, transport and telecommunications remains a key ingredient in facilitating value adding industry.
Changing weather patterns which have affected average annual rainfall, and strong south coast population growth have placed increased pressure on water supply and on the capacity of related infrastructure.
Increased demand for electricity, as a result of population growth and through the adoption of energy intensive farming practices, continued to highlight inadequacies in the region’s power supply and infrastructure.
Tourism is a significant contributor to the Great Southern region’s economy. The majority of visitors to the region are either from within the State or from the rest of Australia. This is broadly in line with the trend in other parts of the State. The number of domestic and international visitors averaged 502,000 over 2005 and 2006, and they spent approximately $200 million in each year.
The strong investment and development trends in the region’s main industry sectors have impacted positively on the business, services and retail sectors.
Page 34 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
DISCLOSURES AND LEGAL COMPLIANCE
CERTIFICATION OF FINANCIAL STATEMENTS
The accompanying financial statements of the Great Southern Development Commission have been prepared in compliance with provisions of the Financial Management Act 2006 from proper accounts and records to present fairly the financial transactions for the financial year ending 30 June 2008 and the financial position as at 30 June 2008.
At the date of signing, we are not aware of any circumstances which would render any particulars included in the financial statements misleading or inaccurate.
Page 35 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Page 36 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Page 37 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
INCOME STATEMENT Note 2008 2007
For the year ended 30 June 2008
COST OF SERVICES
Expenses
Employee benefits expense 5 1,099,942 1,192,159 Supplies and services(a) 6 396,940 694,505 Depreciation expense 7 32,201 37,360 Accommodation expenses 8 91,177 87,730 Grants and subsidies 9 128,752 870,738 Capital user charge 10 - 53,000 Loss on disposal of non-current assets 16 - 1,223 Other expenses 11 8,884 15,040 1,757,896 2,951,755 Total cost of services
Income Revenue User charges and fees 12 57,159 43,077 Commonwealth grants and contributions 13 84,233 82,297 Interest revenue 14 - 3,036 Other revenue 15 1,100 1,415 Total Revenue 142,492 129,825
Total income other than income from State Government 142,492 129,825
NET COST OF SERVICES 1,615,404 2,821,930
INCOME FROM STATE GOVERNMENT Service appropriation 17 1,574,000 997,000 Liabilities assumed by the Treasurer(b) 17 3,215 3,797 Income received from state agencies 17 237,288 250,689 Total income from State Government 1,814,503 1,251,486
SURPLUS/(DEFICIT) FOR THE PERIOD 199,099 (1,570,444)
(a) Includes administrative expenses. (b) Notional income equivalent to the notional superannuation expense included in employee benefits expense.
The Income Statement should be read in conjunction with the accompanying notes.
Page 38 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
BALANCE SHEET Note 2008 2007
As at 30 June 2008
ASSETS Current Assets Cash and cash equivalents 28 610,771 296,619 Restricted cash and cash equivalents 18 1,405,545 1,172,929 Receivables 19 16,760 28,579 Amounts receivable for services 20 30,000 30,000 Prepayments 2,909 2,316 Total Current Assets 2,065,985 1,530,443
Non-Current Assets Amounts receivable for services 20 142,000 144,000 Plant and equipment 21 54,688 73,719 Infrastructure 22 2,501,271 992,486 Total Non-Current Assets 2,697,959 1,210,205
TOTAL ASSETS 4,763,944 2,740,648
LIABILITIES Current Liabilities Payables 24 27,599 33,657 Provisions 25 188,227 207,271 Other current liabilities 26 6,624 4,027 Total Current Liabilities 222,450 244,955
Non-Current Liabilities Provisions 25 146,465 157,249 Other non-current liabilities 26 922,280 809,794 Total Non-Current Liabilities 1,068,745 967,043
Total Liabilities 1,291,195 1,211,998
NET ASSETS 3,472,749 1,528,650
EQUITY Contributed equity 27 3,817,467 2,072,467 Accumulated surplus/(deficit) 27 (344,718) (543,817)
TOTAL EQUITY 3,472,749 1,528,650
The Balance Sheet should be read in conjunction with the accompanying notes.
Page 39 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
STATEMENT OF CHANGES Note 2008 2007
IN EQUITY For the year ended 30 June 2008
Balance of equity at start of period 1,528,650 2,876,094
CONTRIBUTED EQUITY Balance at start of period 27 2,072,467 1,849,467 Capital contribution 27 2,565,000 223,000 Distribution by owners 27 (820,000) - Balance at end of period 3,817,467 2,072,467
ACCUMULATED SURPLUS (Retained Earnings) Balance at start of period 27 (543,817) 1,026,627
Surplus/(deficit) for the period 27 199,099 (1,570,444)
Balance at end of period (344,718) (543,817)
Balance of equity at end of period 3,472,749 1,528,650
Total income and expense for the period 199,099 (1,570,444)
The Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Page 40 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
2008 2007 CASH FLOW STATEMENT Note For the year ended 30 June 2008 CASH FLOWS FROM STATE GOVERNMENT Service appropriation 1,531,000 954,000 Capital contributions 2,565,000 223,000 Holding account drawdown 45,000 30,000 Grants from State Government agencies 242,182 344,189 Net cash provided by State Government 4,383,182 1,551,189
Utilised as follows: CASH FLOWS FROM OPERATING ACTIVITIES Payments Employee benefits (1,125,733) (1,120,964) Supplies and services (401,815) (677,374) Capital User Charge - (53,000) Accommodation (91,177) (87,730) Grants and subsidies (16,265) (785,840) GST payments on purchases (311,314) (265,439) GST payments to taxation authority (85,256) (86,494) Other payments (8,884) (15,040)
Receipts User charges and fees 57,159 55,650 Commonwealth grants and contributions 84,233 82,297 Interest received - 3,036 GST receipts on sales 82,531 76,982 GST receipts from taxation authority 320,962 254,131 Other receipts 1,100 1,415 Net cash provided by/(used in) operating activities 28 (1,494,459) (2,618,370)
CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of non-current physical assets - 1,000
Purchase of non-current physical assets (13,170) (33,386) Purchase of Infrastructure Assets (2,328,785) (793,486) Net cash provided by/(used in) investing activities (2,341,955) (825,872)
Net increase/(decrease) in cash and cash equivalents 546,768 (1,893,053) Cash and cash equivalents at the beginning of period 1,469,548 3,362,601 CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 28 2,016,316 1,469,548
The Cash Flow Statement should be read in conjunction with the accompanying notes.
Page 41 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2008
Note 1. Australian Equivalents to International Financial Reporting Standards
General The Great Southern Development Commission (GSDC) financial statements for the year ended 30 June 2008 have been prepared in accordance with Australian equivalents to International Financial Reporting Standards (AIFRS), which comprise a Framework for the Preparation and Presentation of Financial Statements (the Framework) and Australian Accounting Standards (including the Australian Accounting Interpretations).
In preparing these financial statements the GSDC has adopted, where relevant to its operations, new and revised Standards and Interpretations from their operative dates as issued by the AASB and formerly the Urgent Issues Group (UIG).
Early Adoption of Standards The GSDC cannot early adopt an Australian Accounting Standard or Australian Accounting Interpretation unless specifically permitted by TI 1101 ‘Application of Australian Accounting Standards and Other Pronouncements’. No Standards and Interpretations that have been issued or amended but are not yet effective have been early adopted by the GSDC for the annual reporting period ended 30 June 2008.
Note 2. Summary of Significant Accounting Policies
(a) General Statement The financial statements constitute a general purpose financial report which has been prepared in accordance with the Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board as applied by the Treasurer’s instructions. Several of these are modified by the Treasurer’s instructions to vary application, disclosure, format and wording. For example, AASB 116 requires land and buildings to be measured at cost or fair value; TI 954 mandates the fair value option.
The Financial Management Act and the Treasurer’s instructions are legislative provisions governing the preparation of financial statements and take precedence over the Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the Australian Accounting Standards Board.
Where modification is required and has a material or significant financial effect upon the reported results, details of that modification and the resulting financial effect are disclosed in the notes to the financial statements.
(b) Basis of Preparation
The financial statements have been prepared on the accrual basis of accounting using the historical cost convention, except for certain assets and liabilities which, have been measured at fair value.
The accounting policies adopted in the preparation of the financial statements have been consistently applied throughout all periods presented unless otherwise stated.
Page 42 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
(c) Reporting Entity The reporting entity comprises the Board of Management of the Great Southern Development Commission.
(d) Income Revenue Recognition Revenue is measured at the fair value of consideration received or receivable. Revenue is recognised for the major business activities as follows:
Sale of goods Revenue is recognised from the sale of goods and disposal of other assets when the significant risks and rewards of ownership control transfer to the purchaser and can be measured reliably.
Rendering of services Revenue is recognised on delivery of the service to the client or by reference to the stage of completion of the transaction.
Interest Revenue is recognised as the interest accrues.
Service Appropriations Service Appropriations are recognised as revenues at nominal value in the period in which the GSDC gains control of the appropriated funds. The GSDC gains control of appropriated funds at the time those funds are deposited to the bank account or credited to the holding account held at Treasury.
Grants, donations, gifts and other non-reciprocal contributions Revenue is recognised at fair value when the GSDC obtains control over the assets comprising the contributions, usually when cash is received.
Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated.
Where contributions recognised as revenues during the reporting period were obtained on the condition that they be expended in a particular manner or used over a particular period, and those conditions were undischarged as at the balance sheet date, the nature of, and amounts pertaining to, those undischarged conditions are disclosed in the notes.
(e) Plant and Equipment Capitalisation/Expensing of assets Items of plant and equipment and infrastructure, costing $1,000 or more are recognised as assets and the cost of utilising assets is expensed (depreciated) over their useful lives. Items of plant and equipment and infrastructure costing less than $1,000 are immediately expensed direct to the Income Statement (other than where they form part of a group of similar items which are significant in total).
Initial recognition and measurement All items of plant and equipment and infrastructure are initially recognised at cost.
For items of plant and equipment and infrastructure acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition.
Page 43 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Subsequent measurement After recognition as an asset, the cost model is used for the measurement of plant, equipment and infrastructure. Plant, equipment and infrastructure are stated at historical cost less accumulated depreciation and accumulated impairment losses.
Depreciation All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner that reflects the consumption of their future economic benefits.
Depreciation is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are:
Furniture and fittings 10 years Office equipment 5 years Computer hardware 3 years Software 3 years
(f) Impairment of Assets Plant and equipment, infrastructure and intangible assets are tested for any indication of impairment at each balance sheet date. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written down to the recoverable amount and an impairment loss is recognised. As the GSDC is a not-for-profit entity, unless an asset has been identified as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost.
The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated, where the replacement cost is falling or where there is a significant change in useful life. Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption or expiration of asset’s future economic benefits and to evaluate any impairment risk from falling replacement costs.
(g) Leases The GSDC holds operating leases for its Albany office and for its motor vehicles. Lease payments are expensed on a straight line basis over the lease term as this represents the pattern of benefits derived from the lease.
(h) Financial Instruments The GSDC has two categories of financial instrument: • Receivables (cash and cash equivalents, receivables); and • Non-trading financial liabilities (payables). Initial recognition and measurement of financial instruments is at fair value which normally equates to the transaction cost or the face value. Subsequent measurement is at amortised cost using the effective interest method.
The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interest rate applicable and subsequent measurement is not required as the effect of discounting is not material.
(i) Cash and Cash Equivalents For the purpose of the Cash Flow Statement, cash and cash equivalent (and restricted cash and cash equivalent) assets comprise cash on hand and short-term deposits with original maturities
Page 44 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
of three months or less that are readily convertible to a known amount of cash and which are subject to insignificant risk of changes in value.
(j) Accrued Salaries Accrued salaries (see note 26 ‘Other liabilities’) represent the amount due to staff but unpaid at the end of the financial year, as the pay date for the last pay period for that financial year does not coincide with the end of the financial year. Accrued salaries are settled within a fortnight of the financial year end. The GSDC considers the carrying amount of accrued salaries to be equivalent to its net fair value.
(k) Amounts Receivable for Services (Holding Account) The GSDC receives funding on an accrual basis that recognises the full annual cash and non-cash cost of services. The appropriations are paid partly in cash and partly as an asset (Holding Account receivable) that is accessible on the emergence of the cash funding requirement to cover items such as leave entitlements and asset replacement.
(l) Receivables Receivables are recognised and carried at original invoice amount less an allowance for any uncollectible amounts (i.e. impairment). The collectability of receivables is reviewed on an ongoing basis and any receivables identified as uncollectible are written-off against the allowance account. The allowance for uncollectible amounts (doubtful debts) is raised when there is objective evidence that the GSDC will not be able to collect the debts. The carrying amount is equivalent to fair value as it is due for settlement within 30 days.
(m) Payables Payables are recognised at the amounts payable when the GSDC becomes obliged to make future payments as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as they are generally settled within 30 days.
(n) Provisions Provisions are liabilities of uncertain timing or amount and are recognised where there is a present legal or constructive obligation as a result of a past event and when the outflow of resources embodying economic benefits is probable and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each balance date.
(i) Provisions - Employee Benefits Annual Leave and Long Service Leave The liability for annual and long service leave expected to be settled within 12 months after the reporting date is recognised and measured at the undiscounted amounts expected to be paid when the liabilities are settled. Annual and long service leave expected to be settled more than 12 months after the balance sheet date is measured at the present value of amounts expected to be paid when the liabilities are settled. Leave liabilities are in respect of services provided by employees up to the reporting date.
When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions. In addition, the long service leave liability also considers the experience of employee departures and periods of service.
The expected future payments are discounted using market yields at the balance sheet date on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows.
Page 45 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
All annual leave and unconditional long service leave provisions are classified as current liabilities as the GSDC does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
Superannuation The Government Employees Superannuation Board (GESB) administers the following superannuation schemes.
Employees may contribute to the Pension Scheme, a defined benefit pension scheme now closed to new members or the Gold State Superannuation Scheme (GSS), a defined benefit lump sum scheme also closed to new members.
The Commission has no liabilities under the Pension or the GSS Schemes. The liabilities for the unfunded Pension Scheme and the unfunded GSS Scheme transfer benefits due to members, who transferred from the Pension Scheme, are assumed by the Treasurer. All other GSS Scheme obligations are funded by concurrent contributions made by the Commission to the GESB. The concurrently funded part of the GSS Scheme is a defined contribution scheme as these contributions extinguish all liabilities in respect of the concurrently funded GSS Scheme obligations.
Employees commencing employment prior to 16 April 2007 who were not members of either the Pension or the GSS Schemes became non-contributory members of the West State Superannuation Scheme (WSS). Employees commencing employment on or after 16 April 2007 became members of the GESB Super Scheme (GESBS). Both of these schemes are accumulation schemes. The Commission makes concurrent contributions to GESB on behalf of employees in compliance with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. These contributions extinguish the liability for superannuation charges in respect of the WSS and GESBS Schemes.
The GESB makes all benefit payments in respect of the Pension and GSS Schemes, and is recouped by the Treasurer for the employer’s share.
(ii) Provisions - Other Employment On-Costs Employment on-costs, including workers’ compensation insurance, are not employee benefits and are recognised separately as liabilities and expenses when the employment to which they relate has occurred. Employment on-costs are included as part of ‘Other expenses’ and are not included as part of the GSDC’s ‘Employee benefits expense’. The related liability is included in ‘Employment on-costs provision’.
(o) Superannuation Expense The following elements are included in calculating the superannuation expense in the Income Statement:
• Defined benefit plans - Change in the unfunded employer’s liability (i.e. current service cost and, actuarial gains and losses) assumed by the Treasurer in respect of current employees who are members of the Pension Scheme and current employees who accrued a benefit on transfer from that Scheme to the Gold State Superannuation Scheme (GSS); and
• Defined contribution plans - Employer contributions paid to the GSS (concurrent contributions), the West State Superannuation Scheme (WSS), and the GESB Super Scheme (GESBS).
Page 46 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Defined benefit plans - in order to reflect the true cost of services, the movements (i.e. current service cost and, actuarial gains and losses) in the liabilities in respect of the Pension Scheme and the GSS transfer benefits are recognised as expenses. As these liabilities are assumed by the Treasurer (refer note 17), a revenue titled ‘Liabilities assumed by the Treasurer’ equivalent to the expense is recognised under Income from State Government in the Income Statement.
The GSS Scheme is a defined benefit scheme for the purposes of employees and whole-of-government reporting. However, apart from the transfer benefit, it is a defined contribution plan for agency purposes because the concurrent contributions (defined contributions) made by the agency to GESB extinguishes the agency’s obligations to the related superannuation liability.
(p) Resources Received Free of Charge or for Nominal Cost
Resources received free of charge or for nominal cost that can be reliably measured are recognised as income and as assets or expenses as appropriate, at fair value.
(q) Comparative Figures
Comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the current financial year.
Note 3. Judgements made by Management in Applying Accounting Policies
Operating Lease Commitments The GSDC has entered into a commercial lease and has determined that the lessor retains all the significant risks and rewards of ownership of the property. Accordingly, the lease has been classified as an operating lease.
Note 4. Disclosure of Changes in Accounting Policy and Estimates
Initial application of an Australian Accounting Standard
The GSDC has applied the following Australian Accounting Standards and Australian Accounting Interpretations effective for annual reporting periods beginning on or after 1 July 2007.
AASB 7 ‘Financial Instruments: Disclosures’ (including consequential amendments in AASB 2005-10 ‘Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023 & AASB 1038]’). This Standard requires new disclosures in relation to financial instruments and while there is no financial impact, the changes have resulted in increased disclosures, both quantitative and qualitative, of the Commission’s exposure to risks, including enhanced disclosure regarding components of the Commission’s financial position and performance, and changes to the way of presenting certain items in the notes to the financial statements. The following Australian Accounting Standards and interpretations are not applicable to the GSDC as they have no impact or do not apply to not-for-profit entities.
AASB Standards and Interpretations
101 ‘Presentation of Financial Statements’ (relating to the changes made to the Standard issued in October 2006)
Page 47 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
2005-10 ‘Amendments to Australian Accounting Standards (AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023, & AASB 1038)’ 2007-1 ‘Amendments to Australian Accounting Standards ‘Amendments to Australian arising from AASB Interpretation 11 [AASB 2]’ Accounting Standards arising from AASB Interpretation 11 [AASB 2]’ 2007-4 ‘Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments (AASB 1, 2, 3, 4, 5, 6, 7, 102, 107, 108, 110, 112, 114, 116, 117, 118, 119, 120, 121, 127, 128, 129, 130, 131, 132, 133, 134, 136, 137, 138, 139, 141, 1023 & 1038)’. The amendments arise as a result of the AASB decision to make available all options that currently exist under IFRSs and that certain additional Australian disclosures should be eliminated. The Treasurer’s instructions have been amended to maintain the existing practice when the Standard was first applied and as a consequence there is no financial impact. 2007-5 ‘Amendments to Australian Accounting Standard – Inventories Held for Distribution by Not-for-Profit Entities [AASB 102]’ 2007-7 ‘Amendments to Australian Accounting Standards [AASB 1, AASB 2, AASB 4, AASB 5, AASB 107 & AASB 128]’ ERR Erratum ‘Proportionate Consolidation [AASB 101, AASB 107, AASB 121, AASB 127, Interpretation 113]’ Interpretation 10 ‘Interim Financial Reporting and Impairment’ Interpretation 11 ‘AASB 2 – Group and Treasury Share Transactions’ Interpretation 1003 ‘Australian Petroleum Resource Rent Tax’
Voluntary changes in Accounting Policy
The GSDC has not adopted any voluntary change in accounting policy which has an effect on the current period or any prior period, or would have an effect on that period, except that it is impracticable to determine the amount of the adjustment, or might have an effect on future periods.
Future impact of Australian Accounting Standards not yet operative
The GSDC cannot early adopt an Australian Accounting Standard or Australian Accounting Interpretation unless specifically permitted by TI 1101 ‘Application of Australian Accounting Standards and Other Pronouncements’. Consequently, the GSDC has not applied the following Australian Accounting Standards and Australian Accounting Interpretations that have been issued and which may impact the GSDC but are not yet effective. Where applicable, the GSDC plans to apply these Standards and Interpretations from their application date:
Page 48 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Title Operative for reporting periods beginning on/after
AASB 101 ‘Presentation of Financial Statements’ (September 1 January 2009 2007). This Standard has been revised and will change the structure of the financial statements. These changes will require that owner changes in equity are presented separately from non-owner changes in equity. The GSDC does not expect any financial impact when the Standard is first applied.
The following Australian Accounting Standards and Interpretations are not applicable to the GSDC as they will have no impact or do not apply to not-for-profit entities:-
AASB 3 ‘Business Combinations’ (March 2008) 1 January 2009
AASB 8 ‘Operating Segments’ 1 January 2009
AASB 123 ‘Borrowing Costs’ (June 2007). This Standard has 1 January 2009 been revised to mandate the capitalisation of all borrowing costs attributable to the acquisition, construction or production of qualifying assets. The Commission already capitalises borrowing costs directly attributable to buildings under construction, therefore, this will be no impact on the financial statements when the Standard is first applied. Agencies presently expensing such borrowing costs will need to report the impact.
AASB 127 ‘Consolidated and Separate Financial Statements’ 1 July 2009 (March 2008)
AASB 1049 ‘Whole of Government and General Government 1 July 2008 Sector Financial Reporting
AASB 2007-2 ‘Amendments to Australian Accounting Standards 1 January 2008 arising from AASB Interpretation 12 [AASB 1, AASB 117, AASB 118, AASB 120, AASB 121, AASB 127, AASB 131 & AASB 139]’ – paragraphs 1 to 8
AASB 2007-3 ‘Amendments to Australian Accounting Standards 1 January 2009 arising from AASB 8 [AASB 5, AASB 6, AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 & AASB 1038]’
AASB 2007-6 ‘Amendments to Australian Accounting Standards 1 January 2009 arising from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12]’
AASB 2007-8 ‘Amendments to Australian Accounting Standards 1 January 2009 arising from AASB 101’
Page 49 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
AASB 2008-1 ‘Amendments to Australian Accounting Standard 1 January 2009 - Share-based Payments: Vesting Conditions and Cancellations’
AASB 2008-2 ‘Amendments to Australian Accounting Standards 1 January 2009 – Puttable Financial Instruments and Obligations arising on Liquidation [AASB 7, AASB 101, AASB 132, AASB 139 & Interpretation 2]’
AASB 2008-3 ‘Amendments to Australian Accounting Standards 1 July 2009 arising from AASB 3 and AASB 127 [AASBs 1, 2, 4, 5, 7, 101, 107, 112, 114, 116, 121, 128, 131, 132, 133, 134, 136, 137, 138, 139 and Interpretations 9 & 107]’
Interpretation 4 ‘Determining whether an Arrangement contains 1 January 2008 a Lease’ (February 2007)
Interpretation 12 ‘Service Concession Arrangements’ 1 January 2008
Interpretation 13 ‘Customer Loyalty Programmes’ 1 July 2008
Interpretation 14 ’AASB 119 – The Limit on a Defined Benefit 1 January 2008 Asset, Minimum Funding Requirements and their Interaction’
Interpretation 129 ‘Service Concession Arrangements: 1 January 2008 Disclosures’
Note 5. Employee Benefits Expense 2008 2007
Wages and salaries(a) 1,031,389 998,009 Superannuation – defined contribution plans(b) 95,166 105,412 Superannuation – defined benefit plans(c) 3,215 3,797 Long service leave(d) 3,236 100,332 Annual Leave(d) (33,064) (15,391) 1,099,942 1,192,159
(a) Includes the value of the fringe benefit to the employee plus the fringe benefits tax component. (b) Defined contribution plans include West State, Gold State and GESB Super Scheme (contributions paid). (c) An equivalent notional income is also recognised (see note 17 ‘Income from State Government’). (d) Includes a superannuation contribution on-cost component.
Employment on-costs such as workers’ compensation insurance are included at note 11 ‘Other Expenses’. The employment on-costs liability is included at note 25 ‘Provisions’.
Page 50 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Note 6. Supplies and Services 2008 2007
Communications 30,693 38,943 Consultants and contractors 54,947 76,876 Consumables 56,312 68,598 Travel 40,615 51,740 Services and Contracts 198,239 423,519 Other (Staff Costs) 16,134 34,829 396,940 694,505
Note 7. Depreciation Expense
Depreciation Furniture and Fittings 3,597 2,986 Office Equipment 8,441 10,598 Computer Hardware 15,789 18,449 Computer Software 4,374 5,327 Total depreciation 32,201 37,360
Note 8. Accommodation Expenses
Lease rentals 72,221 74,665 Repairs and maintenance 7,261 2,866 Cleaning 11,695 10,199 91,177 87,730
Note 9 (a) Grants and Subsidies
Recurrent Grants paid via Income and Expenditure Statement Agribusiness Development Centre 10,000 Albany City Band 8,000 Albany Maritime Foundation 1,000 Breaksea Island Heritage Tourism - 14,800 Brig Amity Refurbishment - 30,000 Casuarina Obesa - 7,092 Central Great Southern BEC - 10,000 City of Albany 56,650 455,500 Clontarf Foundation - 15,000 Community Centres - 4,500 Country Arts WA - 15,000 Department of Conservation 5,000 - Duck Lake - 75,000 FACET 5,000 - Frankland River Wine Makers - 4,000 Great Southern Food and Wine Makers - 10,008 Great Southern Regional Marketing 2,500 - Greenskills - 12,000 Leadership Contingency - 2,000 Marketing of GSDC - 3,600 Mount Barker Wine Producers 5,000 - Nathan Drew Memorial Trust - 75,000 Mungart Boodja Art Centre - 25,500 Over the Moon Organics - 10,000 Shire of Broomehill 4,000 - Page 51 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Note 9(a) Grants and Subsidies - continued 2008 2007
Shire of Denmark 10,000 - Shire of Woodanilling 5,000 - The Jaycees Community Foundation 14,000 - University of Western Australia 2,000 50,000 Single Purpose Grants (Various) 8,602 43,738 128,752 870,738
Note 9 (b) Grants and Subsidies Recurrent Grants paid via Balance Sheet Agribusiness Development Centre 5,000 - Albany & South Coast Maritime Heritage - 2,400 Albany Surf Life Saving - 8,000 Anzacs to Albany - 5,000 AQ2 Ltd - 9,500 Artsouth WA 7,000 - CENRM Salinity - 4,581 City of Albany 12,000 23,600 Clontarf 35,000 35,000 Country Arts WA 5,000 - CSIRO Plantation Research - 15,000 CY O’Connor Erade Village Foundation 20,000 - Denmark Community Windfarm 3,636 3,030 Gnowangerup Heritage Museum - 6,000 Great Southern Food & Wine Makers - 4,000 Great Southern Nature Base Tourism - 10,200 Great Southern Regional Marketing Association 30,500 49,000 Great Southern Sport Development - 4,000 Integrated Resource Planning - 7,500 Miscellaneous minor projects - 19,604 Northern Great Southern Signage Drive Trails - 7,500 Over the Moon Organics 10,000 - Planning Study for Rural Lifestyle - 5,000 Plantagenet Tourism Development - 6,200 RDS Contingency - 42,745 Shire of Broomehill 4,336 - Shire of Denmark 68,000 - Shire of Gnowangerup 3,000 5,000 Shire of Jerramungup 22,500 - Shire of Katanning - 3,365 Shire of Tambellup - 9,140 Southern Region Arts and Crafts - 9,000 Stirling Range Visitor Centre - 7,231 Stud Merino Breeders Association - 7,500 Tangle Head Brewing Company 10,000 - The University of WA 25,000 - WACF – Albany Lions Community 10,500 - WACF – Denmark 16,000 - WACF – Schizophrenia Society 10,000 Whaleworld – Jaycees Community 37,500 - World Watch Media - 5,000 Yongernow 2,500 7,500 337,472 321,596
Page 52 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
2008 2007 Note 10. Capital User Charge
Capital user charge - 53,000 - 53,000
The charge was a levy applied by Government for the use of its capital. The final charge was levied in 2006-07. Note 11. Other Expenses
Employment on-costs(a) (see Note 5 ‘Employee benefits expense’) - 4,080 Equipment Repairs and Maintenance 8,884 10,960 8,884 15,040
(a) Includes workers’ compensation insurance and other employment on-costs. The on-costs liability associated with the recognition of annual and long service leave liability is included at note 25 ‘Provisions’. Superannuation contributions accrued as part of the provision for leave are employee benefits and are not included in employment on-costs.
Note 12. User Charges and Fees
Project Fees (services provided) 57,159 43,077 57,159 43,077
Note 13. Commonwealth Grants and Contributions
Austrade 84,233 82,297 84,233 82,297
Note 14. Interest Revenue
Interest revenue - 3,036 - 3,036
Note 15. User Charges and Fees
Rent Received - 615 Grants Received – Local Government 1,100 800 1,100 1,415
Note 16. Net Gain/(Loss) on Disposal of Non-Current Assets Costs of Disposal of Non-Current Assets Equipment , furniture and computers - (2,223)
Proceeds from Disposal of Non-Current Assets Equipment, furniture and computers - 1,000
Net gain/(loss) - (1,223)
Page 53 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
2008 2007 Note 17. Income from State Government
Appropriation received during the year: Service appropriation (a) 1,531,000 954,000 Amounts receivable for outputs 13,000 13,000 Drawdown from Holding Account 30,000 30,000 1,574,000 997,000
The following liabilities have been assumed by the Treasurer during the financial year: Superannuation (b) 3,215 3,797 Total liabilities assumed by the Treasurer 3,215 3,797
Income received from State Agencies:- Department for Community 800 - Department of Health and Human Services - 2,000 Department of Housing and Works 1,306 1,000 Department of Indigenous Affairs - 2,000 Department of Industry and Resources 18,182 58,181 Department of Justice - 2,000 DOLGRD – RDS Funding 28,000 93,508 LandCorp 189,000 92,000 237,288 250,689
1,814,503 1,251,486
(a) Service appropriations are accrual amounts reflecting the net cost of services delivered. The appropriation revenue comprises a cash component and a receivable (asset). The receivable (holding account) comprises the depreciation expense for the year and any agreed increase in leave liability during the year. The assumption of the superannuation liability by the Treasurer is a notional income to match the notional superannuation expense reported in respect of current employees who are members of the Pension Scheme and current employees who have a transfer benefit entitlement under the Gold State Superannuation Scheme (The notional superannuation expense is disclosed at note 5 ‘Employee Benefits Expense’).
Note 18. Restricted Cash and Equivalents
Current Cash held to be used only in accordance with grant conditions 483,265 363,138 Legally enforceable grants relating to contracts entered into by the Commission under the Regional Development Scheme 922,280 809,791
1,405,545 1,172,929 Refer Note 34 for review of the Commission’s exposure to financial instrument risk.
Note 19. Receivables
Current Sundry Debtors 296 5,190 GST receivable 16,464 23,389 16,760 28,579
Page 54 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
2008 2007
Note 20. Amounts Receivable for Services
Current 30,000 30,000
Non-current 142,000 144,000 172,000 174,000
Refer Note 34 for review of the Commission’s exposure to financial instrument risk. Represents the non-cash component of service appropriations. It is restricted in that it can only be used for asset replacement or payment of leave liability.
Note 21. Plant and Equipment
Furniture and fittings 64,563 62,915 Accumulated Depreciation (42,616) (39,078) 21,947 23,837
Office equipment 112,389 106,826 Accumulated depreciation (92,846) (84,405) 19,543 22,421
Computer Hardware 111,445 107,088 Accumulated Depreciation (100,062) (84,273) 11,383 22,815
Computer Software 82,611 81,068 Accumulated Depreciation (80,796) (76,422) 1,815 4,646
Total Plant and Equipment 54,688 73,719
Reconciliations Reconciliations of the carrying amounts of plant, equipment and vehicles at the beginning and end of the reporting period are set out below.
Furniture Office Computer Computer and Equipment Hardware Software Total Fittings
2008 $ $ $ $ $
Carrying amount at start of year 23,837 22,421 22,815 4,646 73,719 Additions 1,707 5,563 4,357 1,543 13,170 Other disposals (59) - - - (59)
Depreciation (3,538) (8,441) (15,789) (4374) (32,142) Carrying amount at end of year 21,947 19,543 11,383 1,815 54,688
Page 55 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Note 21. Plant and Equipment continued
Furniture Office Computer Computer and Equipment Hardware Software Total Fittings
2007 $ $ $ $ $
Carrying amount at start of year 17,858 20,671 31,416 9,970 79,915 Additions 8,965 14,571 9,848 - 33,384 Other disposals - (2,223) - - (2,223)
Depreciation (2,986) (10,598) (18,449) (5,324) (37,357) Carrying amount at end of year 23,837 22,421 22,815 4,646 73,719
2008 2007 Note 22. Infrastructure
At cost: Day Therapy Centre (a) - 820,000 Albany Entertainment Centre 2,501,271 172,486 2,501,271 992,486
(a) The GSDC has transferred this asset in accordance with initial agreement.
2008 Day Albany Therapy Entertainment Total Centre Centre Carrying amount at start of year 820,000 172,486 992,486 Additions - 2,328,785 2,328,785 Disposals (820,000) - (820,000) Depreciation - - - Carrying amount at end of year - 2,501,271 2,501,271
2007 Day Albany Therapy Entertainment Total Centre Centre Carrying amount at start of year 199,000 - 199,000 Additions 621,000 172,486 793,486 Disposals - - - Depreciation - - - Carrying amount at end of year 820,000 172,486 992,486
Note 23. Impairment of Assets
There were no indications of impairment to plant and equipment, infrastructure and intangible assets at 30 June 2008. The GSDC held no goodwill or intangible assets with an indefinite useful life during the reporting period and at balance date there were no intangible assets not yet available for use. All surplus assets at 30 June 2008 have either been classified as assets held for sale or written-off.
Page 56 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
2008 2007 Note 24. Payables
Current: Sundry creditors 12,280 16,563 PAYG Payable 15,319 17,094 Total current 27,599 33,657
Note 25. Provisions Current: Employee benefits provision Annual leave(a) 91,835 124,899 Long service leave(b) 96,392 82,372 188,227 207,271 Non-current: Employee benefits provision Long service leave(b) 146,465 157,249 146,465 157,249
(a) Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement for at least 12 months after balance sheet date. Assessments indicate that actual settlement of the liabilities will occur as follows:
Within 12 months of balance sheet date 14,518 15,280 More than 12 months after balance sheet date 77,317 109,619 91,835 124,899
(b) Long service leave liabilities have been classified as current where there is no unconditional right to defer settlement for at least 12 months after balance sheet date. Assessments indicate that actual settlement of the liabilities will occur as follows:
Within 12 months of balance sheet date 19,244 16,440 More than 12 months after balance sheet date 223,613 223,181 242,857 239,621
Note 26. Other Liabilities Current: Accrued salaries 6,624 4,027 Total current 6,624 4,027
Non-current: Grant Liabilities 922,280 809,794 Total non-current 922,280 809,794
Note 27. Equity
Equity represents the residual interest in the net assets of the GSDC. The Government holds the equity interest in the GSDC on behalf of the community. The asset revaluation reserve represents that portion of equity resulting from the revaluation of non-current assets.
Page 57 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
2008 2007
Contributed equity
Balance at start of year 2,072,467 1,849,467 Contributions by owners Capital contribution (a) (b)2,565,000 223,000
Balance at end of year 4,637,467 2,072,467
Distribution by owners Transfer of net assets to other agency (c) (820,000) - Balance at end of year 3,817,467 2,072,467
(a) Capital Contributions (appropriations) and non-discretionary (non-reciprocal) transfers of net assets from other State government agencies have been designated as contributions by owners in Treasurer’s Instruction TI 955 ‘Contributions by Owners Made to Wholly Owned Public Sector Entities’ and are credited directly to equity.
(b) The capital contribution is for capital works projects as follows:- Asset Replacement $ 8,000 Albany Entertainment Centre $2,557,000
Accumulated surplus/(deficit) Balance at start of year (543,817) 1,026,627
Result for the period 199,099 (1,570,444) Balance at end of year (344,718) (543,817)
Refer Note 34 for review of the Commission’s exposure to financial instruments risk.
Note 28. Notes to the Cash Flow Statement
Reconciliation of cash Cash at the end of the financial year as shown in the Cash Flow Statement is reconciled to the related items in the Balance Sheet as follows:
Cash and cash equivalents 610,771 296,619 Committed funds from external sources Note 18 483,265 363,138 Legally enforceable grants (Note 18) 922,280 809,791 2,016,316 1,469,548
Reconciliation of net cost of services to net cash flows provided by/(used in) operating activities
Net cost of services (1,615,404) (2,821,930) Non-cash items: Depreciation expense (Note 7) 32,201 37,360 Superannuation expense Net (gain)/loss on sale of plant and equipment (Note 21) - 1,223 Liability Assumed by The Treasurer 3,215 3,797
(Increase)/decrease in assets: Current receivables - 12,573 Page 58 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
2008 2007 Note 28. Notes to the Cash Flow Statement – cont’d Prepayments (592) 568 Net GST receipts/(payments) 6,923 (20,820) Change in GST in receivables/payables
Increase/(decrease) in liabilities: Current payables (4,283) 16,563 Current provisions (19,044) (20,033) Other Current Liabilities 822 (17,543) Non-current provisions (10,784) 104,973 Other non-current liabilities 112,487 84,899 Net cash used in operating activities (1,494,459) (2,618,370)
Note 29. Commitments Lease commitments
Commitments in relation to leases contracted for at the reporting date but not recognised in the financial statements are payable as follows:
Motor Vehicles Within 1 year 31,655 23,356 Later than 1 year and not later than 5 years 6,359 5,238 Later than 5 years - - 38,014 28,594 Office Accommodation Within 1 year 65,870 70,256 Later than 1 year and not later than 5 years 10,979 81,612 Later than 5 years - - 76,849 151,868
114,863 180,462 Representing: Cancellable operating leases 38,014 28,593 Non-cancellable operating leases 76,849 151,869 114,863 180,462
Note 30. Contingent Liabilities and Contingent Assets
Contingent Liabilities At reporting date, the GSDC had no contingent liabilities or contingent assets.
Note 31. Controlled Entities
At the reporting date GSDC had no controlled entities.
Note 32. Events Occurring after the Balance Date
No material events have occurred after 30 June 2008.
Page 59 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Note 33. Explanatory Statement
Significant variations between estimates and actual results for income and expense are shown below. Significant variations are considered to be those greater than 10% or $20,000.
Significant variances between estimated and actual result for 2008
2008 2008 Estimated Actual Variation $000 $000 $000 Income Grants and contributions 1,220 322 (898) Other Revenue 120 58 (62)
Expenses Employee Benefits expenses 1,326 1,112 214 Supplies and services 624 397 227 Accommodation Expenses 121 91 (30) Grants and subsidies 312 129 (183) Other expenses 81 9 (72)
Employee Benefits expenses Employee benefits expenses were lower than budgeted due to the retirement and resignation of two Senior Officers and one FTE utilising Parental Leave on half salary.
Supplies and Services The GSDC undertakes continuous improvement measures and assesses inputs/output on an ongoing basis. One of these initiatives In 2007-08 was the reduction in fleet of vehicles.
Accommodation expenses Anticipated repairs and maintenance were less than expected.
Grants and Subsidies The GSDC has carried forward funds for the Regional Development Scheme for works that had not been completed as at 30 June 2008.
Other Expenses The GSDC received a rebate from Risk cover in 2007-2008, resulting in premiums for Insurance not being required as budgeted.
Significant variances between actual results for 2007 and 2008 Actual Actual 2008 2007 Variance Income Service Appropriations 1,574,000 997,000 577,000
Expenses Employee benefits expense 1,099,943 1,192,159 (92,216) Supplies and Services 396,940 694,505 (297,565) Depreciation 32,201 37,360 (5,159) Grants and subsidies 128,752 870,738 (741,986) Capital User Charge - 53,000 (53,000)
Page 60 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Employee benefits expense The variance is due to the retirement and resignation of two Senior Officers, and one FTE utilising Parental Leave on half salary
Supplies and services The variance is due to general project costs in relation to Whaleworld, Breaksea Island and UWA.
Depreciation expenses Depreciation expenses were elevated in 2006-07 due to the purchase of a new photocopier and server.
Grants and subsidies The variance is due to payment of Election Commitments, including Albany Leisure and Aquatic Centre, Lake Wellard and UWA, Breaksea Island Heritage and Nathan Drew Memorial Trust being paid out in 2006/2007.
Capital user charge The variance is due to the final charge being levied in 2007.
Service Appropriations Service appropriations were reduced in 2006-07 due to re-cash flow of the Albany Entertainment Centre and the receipt of appropriation in advance in 2005-06.
34. Financial instruments
(a) Financial Risk Management Objectives and Policies
Financial instruments held by the GSDC are cash and cash equivalents, receivables and payables; The GSDC has limited exposure to financial risks. The GSDC’s overall risk management program focuses on managing the risks identified below.
Credit risk The GSDC trades only with recognised, creditworthy parties. To ensure its bad debt risk is minimal, the GSDC periodically monitors its exposure to bad debts. There are no significant concentrations of credit risk.
Liquidity risk The GSDC has appropriate procedures to manage cash flows including drawdown of appropriations by monitoring forecast cash flows to ensure that sufficient funds are available to meets its commitments.
Page 61 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
(b) Financial Instruments Disclosure
Interest Rate Risk Exposures The following table details the GSDC’s exposure to interest rate risk as at the reporting date:
Fixed Interest Rate Maturity Weighted Variable Less 1-5 More Non- Total Average Interest than Years than Interest Effective Rate 1 5 Bearing Interest year Years Rate 2008 % $000 $000 $000 $000 $000 $000
Financial Assets Cash and cash equivalents - - - - - 611 611 Restricted cash and cash equivalents - - - - - 1,405 1,405 Receivables - - - - - 0 0 - - - - - 2,016 2,016
Financial Liabilities Payables - - - - - 12 12
Fixed Interest Rate Maturity Weighted Variable Less 1-5 More Non- Total Average Interest than Years than Interest Effective Rate 1 5 Bearing Interest year Years Rate 2007 % $000 $000 $000 $000 $000 $000
Financial Assets Cash and cash equivalents - - - - - 297 297 Restricted cash and cash equivalents 5.25% 18 - - - 1,173 1,173 Receivables(a) - - - 5 5 18 - - - 3,456 3,474
Financial Liabilities Payables - - - - 17 17
Page 62 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Interest Rate Sensitivity Analysis The GSDC has no interest bearing investments.
Credit Risk Exposure All financial assets are unsecured.
Fair Values The carrying amount of financial assets and financial liabilities recorded in the financial statements are not materially different from their net fair values, determined in accordance with the accounting policies disclosed in the financial statements.
Note 35. Remuneration of Members of the Accountable Commission and Senior Officers
Remuneration on Members of the accountable Commission The number of members of the accountable Commission, whose total of fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year, fall within the following bands are: 2008 2007 $ Under $3,000 8 9 $3,000 - $10,000 1 1 $10,000 - $20,000 1 1
The total remuneration of members of the accountable Commission is: 34.871 31,187
The total remuneration includes the superannuation expense incurred by the GSDC in respect of members of the Accountable Commission.
No members of the Accountable Commission are members of the Pension Scheme.
Remuneration of Senior Officers The number of senior officers, other than senior officers reported as members of the Accountable Commission, whose total fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year, fall within the following bands are:
$ 2008 2007 $ 80,000 - $100,000 1 - $100,000 - $120,000 - - $120,000 - $130,000 - - $130,000 - $140,000 - - $140,000 - $150,000 1 - $150,000 - $160,000 - 1 $160,000 - $170,000 1 - The total remuneration of senior officers is: 395,329 159,322
The total remuneration includes the superannuation expense incurred by the GSDC in respect of senior officers other than senior officers reported as members of the Accountable Commission.
One Senior officer is contracted on behalf of Landcorp
No senior officers are members of the Pension Scheme.
Page 63 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
2008 2007
Note 36. Remuneration of Auditor
Remuneration payable to the Auditor General for the financial year is as follows:
Auditing the accounts, financial statements and performance indicators 22,000 21,000
Note 37. Related Bodies
A related body is a body that receives more than half of its funding and resources from an agency but is not subject to operational control by that agency.
The GSDC has no related bodies as defined by Treasurer’s Instruction 951.
Note 38. Affiliated Bodies
An affiliated body is a body that receives more than half its funding and resources from an agency but is not subject to operational control by that agency.
Write-offs
There was no public property written off by the Executive Council during the financial year.
Gifts of Public
Gifts of public provided by the Commission - 7,167
Note 39. Output Information
The GSDC has only one output being Regional Development.
Page 64 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
PERFORMANCE INDICATORS 2007/2008
CERTIFICATION OF KEY PERFORMANCE INDICATORS
I hereby certify that the Performance Indicators are based on proper records, are relevant and appropriate for assisting users to assess the Great Southern Development Commission’s performance, and fairly represent the performance of the Great Southern Development Commission for the financial year ended 30 June 2008.
Page 65 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Page 66 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
Page 67 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
GOVERNMENT DESIRED OUTCOME
To ensure that regional Western Australia is strong and vibrant.
The Great Southern Development Commission has one Output, being Regional Development and its legislative mandate is:
“The sustainable development of the Great Southern region’s natural and built environment for the well-being of all”
The Government’s Desired Outcome undertaken by the GSDC is measured below.
KEY PERFORMANCE INDICATORS
Treasurer’s Instruction 904 requires accountable authorities to submit Performance Indicators showing the efficiency with which they have used their resources and their effectiveness in achieving the objectives they have set.
KEY EFFECTIVENESS INDICATOR
Like most State Government agencies, the GSDC attempts to gauge its effectiveness through responses from its clients.
During the year the GSDC engaged Asset Research to conduct a client survey. The GSDC provided Asset Research with a list of 230 clients who had significant dealings with the Commission over the year. Asset Research was able to contact 165 of these clients, and completed 146 surveys, or a response rate of 88.5%. The response rate was achieved with a forecasting accuracy of +/- 5% at a 95% confidence level.
The results of the Client Survey and previous Client surveys are summarised below:
Effectiveness Indicator 1 – Regional Development
The clients of the GSDC rated the GSDC’s perceived performance in coordinating and promoting economic development in the Great Southern region as follows. The overall performance ratings from clients for the GSDC, for the respective years are reported below:
Very Effective or Extremely Effective Ineffective or Very Ineffective Effective or Very Effective 2008 2008 2007 2006 2005 2004 2008 2007 2006 2005 2004 2003 Actual Target Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual
84% 80% 85% 96%# 81% 77% 1% 1% 0% 3% 5% 4%
# Note that in the 2006 year the response options were altered upon professional advice from that year’s market research company which presented a possible skewed report. Possible positive responses have been altered from “extremely effective and very effective” to “very effective and effective”. The market research company in 2006 held that “very effective and effective” were more appropriate as opposites to the negative measures employed of “ineffective and very ineffective”. Page 68 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
The results of the independently conducted Client Survey, achieved by the GSDC from its clients against the various items below, are reported hereunder:
Effective or Very Effective Ineffective or Very Ineffective 2008 2007 2006 2005 2004 2003 2008 2007 2006 2005 2004 2003 Performance lobbying to 77% 79% 73% 78% 64% 64% 2% 3% 2% 6% 8% 5% improve infrastructure development n = 89 Performance in enhancing 73% 73% 79% 68% 61% 70% 2% 2% 5% 8% 5% 6% investment opportunities n = 90
Performance in providing 81% 82% 80% 76% 77% 70% 3% 3% 3% 5% 5% 9% business information and advice n = 102 Performance in creating 76% 72% 74% 63% 63% 60% 3% 1% 2% 7% 8% 7% economically sustainable development n = 86
Performance in improving 75% 73% 86% 67% 71% 69% 2% 1% 3% 6% 5% 2% access to services n = 98 Performance in improving 71% 69% 82% 70% 61% 63% 2% 2% 4% 9% 9% 5% quality of life n = 91
Performance in 74% 70% 82% 55% 55% 55% 3% 3% 3% 9% 13% 6% developing career opportunities n = 92
Page 69 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
KEY EFFICIENCY INDICATOR
The key performance indicator used by the GSDC to assess its performance and report its efficiency is cost per project.
This efficiency indicator, for this solitary Output is calculated by dividing the cost of services of the GSDC, as reported in the Income Statement, less the grants and subsidies processed, divided by the number of projects undertaken by the Commission in the year.
2005/06 2006/07 2007/08 2007/08 Actual Actual Target Actual
Cost $2,414,983 $2,081,017 $2,181,984 $1,629,144(a)
Projects 42 40 42 40 completed
Cost per project $57,500 $52,025 $51,952 $40,729(b)
Reasons for Significant Variation from Target for 2007/2008:
The 2007/08 target figure was budgeted with the expectation of a larger proportion of round seven Regional Development Scheme funding being expended prior to 30 June 2008.
(a) This figure has been adjusted to exclude grants and subsidies paid by the GSDC of $128,752.
(b) The cost per project is down on the previous years. In 2006/07 general project costs included several high value projects such as Breaksea Island Restoration work, the Whaleworld Breakwater and UWA Infrastructure support.
Ministerial Directives [TI 903(12)]
No Ministerial Directives were received during the financial year.
Page 70 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
OTHER FINANCIAL DISCLOSURES
PRICING POLICY OF GOODS AND SERVICES PROVIDED
GSDC provides no chargeable goods and services for its core business.
CAPITAL WORKS
Capital Works Incomplete
The construction of the 620 seat Albany Entertainment Centre is due for completion in March 2010. The GSDC has carriage of the State Government’s $46.3 million funding contribution (as at 30 June 2008) with the Department of Housing and Works operating as project manager. The City of Albany, under an agreement with the State Government, will own and operate the Centre. Western Australian architects Cox Howlett and Bailey Woodland were appointed to develop the detailed design.
Capital Works Completed
No capital projects were completed during 2007/08.
EMPLOYMENT AND INDUSTRIAL RELATIONS
Staff Profile 2007-08 2006-07 Full-time permanent 7 9 Full-time contract 4 4 Part-time measured on a FTE basis 3 2 14 15
STAFF TRAINING, RECRUITMENT AND DEVELOPMENT
In line with its Goal 5 objective, “to develop, manage and encourage its staff to realise their full potential”, the GSDC arranged for staff to attend a range of training activities during the year. The GSDC prefers to satisfy the training needs of staff either in-house or at the local level by bringing specialised training personnel to Albany. Staff undertook courses on a variety of subjects including:
• Cultural awareness training • Photoshop training • Business Continuity Planning • Risk Management training • Accounting and Finance training • Disability Access training
Over the year, the GSDC spent $5,744.78 on training activities for staff.
Page 71 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
The GSDC has developed Human Resource Management Standards for the recruitment and development of staff in accordance with Government Policy guidelines. Training needs are identified by the GSDC’s Staff Performance appraisal system. Short in-house training sessions are undertaken on a regular basis throughout the year. Multi-skilling and cross training is encouraged across the Commission, particularly in key functional positions.
WORKERS COMPENSATION AND REHABILITATION ARRANGEMENT
In compliance with Treasurer's Instruction 903, the GSDC has not been required to provide payments or extend assistance for workers compensation claims or rehabilitation of staff during the 2007/08 financial year.
Page 72 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
GOVERNMENT DISCLOSURES
CONTRACTS WITH SENIOR OFFICERS
At the date of reporting, other than normal contracts of employment of service, no Senior Officers, or firms of which Senior Officers are members, or entities in which Senior Officers have substantial interests had any interests in existing or proposed contracts with the GSDC and Senior Officers.
OTHER LEGAL REQUIREMENTS
COMPLIANCE WITH PUBLIC SECTOR MANAGEMENT ACT SECTION 31(1)
1. In the administration of the Great Southern Development Commission, I have complied with the Public Sector Standards in Human Resource Management, the Western Australian Public Sector Code of Ethics and our Code of Conduct. All GSDC staff have been made aware of the necessity to comply with Western Australian Public Sector Code of Ethics and our own Code of Conduct, and new staff are carefully inducted and given a copy of our Code and other control policies, on such topics as telephone, internet and email use and travel allowances.
2. I have put in place procedures designed to ensure such compliance by all staff of the Great Southern Development Commission and conducted appropriate internal assessments to satisfy myself that the statement made in 1 is correct. These assessments have included obtaining confirmatory advice from central agencies such as the Department of Premier and Cabinet, comparison of proposed activities to relevant public sector standards and reports by our Risk Management Committee.
3. With respect to the number of applications made against breach of standards review and corresponding outcomes for the 2007/2008 year, I advise the following:
Number lodged 0 Breaches found (including multiple breaches) 0 Applications still under review 0
Page 73 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
ELECTORAL ACT COMPLIANCE
In accordance with section 175ZE of the Electoral Act 1907 the GSDC incurred the following expenditure in advertising, market research, polling, direct mail and media advertising:
• Total expenditure for 2007/08 was $13,151. • Expenditure was incurred in the following areas:
EXPENDITURE CLASS TOTAL ($) ORGANISATION ($)
Advertising Agencies Nil Nil Nil Market Research Agencies 3,195 Asset Research 3,195 Polling Organisations Nil Nil Nil Direct Mail Organisations Nil Nil Nil Media advertising 9,956 Albany Advertiser 1,089 Great Southern Herald 320 Radio West 500 Plantagenet News 275 Kojonup News 183 Denmark Bulletin 175 Weekender 187 Tambellup Telecentre 46 Community Newspaper Group 4,546 Cranbrook Newsletter 23 Albany Gateway 70 The Franklander 41 Albany CCI 1433 Denmark CCI 1,068
ANNUAL ESTIMATES
The GSDC receives an appropriation as a separate Division of the Consolidated Account Expenditure Estimates and is excluded from reporting on Annual Estimates as per Treasurer’s Instruction 953 and Section 40 (1) of the Financial Management Act 2006.
DISABILITY ACCESS AND INCLUSION PLAN
The GSDC seeks to provide its services equally to all people interested in regional economic development.
The GSDC’s Disability Access and Inclusion Plan (DAIP) outlines 13 strategies under six outcomes. The six outcomes are:
Page 74 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
• All members of the public will be provided with access to the services of, and any events organised by the GSDC • Public access to the buildings and other facilities of the GSDC is available and easily accessible to all members of the public • All members of the public can access information from the GSDC in a format that meets their individual needs • The GSDC will offer non-discriminatory service of high quality to all members of the community regardless of their circumstances • All members of the community will be provided with equal opportunity to lodge complaints to the relevant public authority • All members of the community will be provided with equal opportunity to participate in any public consultation conducted by the GSDC.
The implementation of DAIP is ongoing, with an Action Plan to allow for continuous improvement. Staff members are encouraged to be aware of the varying needs of all people in the community in planning their work and to ensure that all people have access to our services.
Wheelchair access to Pyrmont House and the Katanning office is available. The GSDC has continued to work toward completion of items on its Action Plan and re-assess ongoing improvements that can be implemented to further improve the DAIP.
The GSDC is supportive of agencies and businesses which facilitate the employment of people with disabilities. The GSDC continues to engage the services of a local agency which employs people with disabilities for tasks such as car washing and detailing, and general administrative duties.
The GSDC will continue to use the personnel from this agency to ensure that people with disabilities can access a range of employment opportunities and gain confidence in an office workplace environment.
OCCUPATIONAL SAFETY AND HEALTH
The GSDC recognises its duty to ensure the safety and health of its employees, contractors and visitors and in meeting this duty will comply with the requirements of the Occupational Safety and Health Act 1984 and any other legislation and supporting documents that apply to its operations.
The GSDC is committed to achieving the highest standards of occupational safety and health in accordance with best practice. It is our policy:
• To establish safety as an organisational goal • To provide and maintain a workplace and systems of work, that do not expose employees, contractors and visitors to hazards • To ensure that all employees are provided with information, instruction, training and supervision appropriate to the scope of work being undertaken • To consult with employees on any issues that may affect their safety and health at work • To continuously review safety management systems in order to meet or exceed best practice.
Page 75 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
An Occupational Safety and Health Officer has been appointed and will receive formal training in November 2008.
The GSDC has a documented Injury Management System (IMS) in place which is in accordance with the Workers’ Compensation and Injury Management Act 1981. The IMS is implemented at the time a worker reports a work-related injury or illness and continues until a full return to work is achieved or is no longer a realistic goal as determined in consultation with the employee, the GSDC, the treating medical practitioner and RiskCover. All return to work programs are developed in accordance with the Act.
2007/08 OS&H ANNUAL PERFORMANCE Actual Target Indicator
Number of fatalities 0 0 Lost time injury/disease (LTI/D) incidence rate 0 0 Lost time injury severity rate 0 0
RECORDKEEPING PLAN
As required by the State Records Act (2000), the GSDC developed a Recordkeeping Plan (RKP) which was approved for a period of five years by the State Records Office (SRO) in January 2004.
Over the reporting period, the GSDC liaised with the SRO to build on and enhance its RKP in order to improve its internal records management controls and practices.
During the year, the GSDC provided further documentation to fulfil the requirements of the standards and principles of the State Records Act (2000). A full revised RKP is required by the SRO by 15 July 2009.
As in previous years, the GSDC provided regular ongoing in-house training on record- keeping to assist staff with clear procedures on records management functions and responsibilities.
The GSDC also evaluated its RKP by an internal survey and consulted with staff on the efficiency and effectiveness of its recordkeeping systems. This process is repeated annually.
The Chief Executive Officer ensures that all new staff members are aware of the importance that the State Government places on its public records and the need to comply with the GSDC’s RKP.
The GSDC has allocated responsibilities to all staff to maintain and protect public records and a specific officer has been charged with special records management functions.
Page 76 GSDC ANNUAL REPORT 2007-2008 Great Southern Development Commission Building partnerships for regional prosperity
GOVERNMENT POLICY REQUIREMENTS
CORRUPTION PREVENTION
The GSDC maintains a rigorous Risk Management Program (RMP) which has been operating since 2002.
The RMP has been expanded to include the detection and management of potential corruption following the development of a Fraud Corruption and Control Plan.
SUBSTANTIVE EQUALITY
In accordance with Premier’s Circular 2005/07 “Implementation of the Policy Framework for Substantive Equality”, the GSDC is committed to eliminating systemic racial discrimination in the provision of its services and is sensitive to the different needs of client groups.
The GSDC implements substantive equality by regularly reviewing structures and policies to ensure that the specific needs of Indigenous people and ethnic minorities are considered. This year the GSDC focused on grant funding promotion to Indigenous people, and undertook action to ensure adequate dissemination of information by specifically targeting Indigenous organisations.
The Guidelines for the Great Southern Regional Development Scheme include an assessable priority area of ‘Support for Indigenous groups in enterprise development’.
SUSTAINABILITY ACTION PLAN
In accord with the Premier’s Circular 2004/14 “Sustainability Code of Practice for Government Agencies”, the GSDC is committed to embracing sustainability as a fundamental driver towards a better future for the people of the Great Southern region.
This is evidenced in the GSDC’s Strategic Plan where its commitment to sustainability is clearly articulated in its Vision, Guiding Principles and Goals. In particular, Goal 4, Natural Resource Management, guides the GSDC’s work in sustaining the primary asset of the Great Southern region, its environment.
The GSDC continued to implement its Sustainability Action Plan, 2005-2007 and has implemented operational goals that support sustainability in relation to procurement, service delivery, waste, energy, and vehicles and travel. For example, there has been a reduction in electricity use this year; all waste paper and plastics are recycled; and a new initiative has led to the recycling of photocopier and print cartridges.
In all the GSDC’s project work, sustainability is regarded as an essential assessment criterion to ensure regional development activities will deliver benefits in an enduring manner.
Page 77 GSDC ANNUAL REPORT 2007-2008