Department of State Development

www.statedevelopment.sa.gov.au VISION South Australia – Globally Engaged.

DRIVING FORCE Creating Opportunities.

P 2 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 Department of State Development ANNUAL REPORT 2014-15

P 3 1 JULY 2014 – 30 JUNE 2015

Department of State Development

ABN: 83524915929

Level 4, 11 Waymouth Street Adelaide SA 5000

GPO Box 320 Adelaide SA 5001

DX 541

Telephone: +61 8 8226 3821 Email: [email protected] Website: www.statedevelopment.sa.gov.au

ISSN 2205-605X (print) 2205-6068 (electronic)

ISBN 987-0-9872018-4-3 (print) 987-0-9872018-5-0 (electronic)

P 4 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 HON GAIL GAGO MLC HON JACK SNELLING MP Minister for Employment, Higher Education and Skills Minister for the Arts Minister for Science and Information Economy Minister for Health Industries

Level 9 Level 9 Terrace Towers CitiCentre Building 178 North Terrace 11 Hindmarsh Square Adelaide SA 5000 Adelaide SA 5000

HON TOM KOUTSANTONIS MP HON IAN HUNTER MLC Minister for Mineral Resources and Energy Minister for Water and the River Murray Minister for Small Business Level 9 Minister for State Development Chesser House Level 8 91-97 Grenfell Street State Administration Centre Adelaide SA 5000 200 Victoria Square Adelaide SA 5000

HON MARTIN HAMILTON-SMITH MP HON KYAM MAHER MLC Minister for Investment and Trade Minister for Manufacturing and Innovation Minister for Automotive Transformation Level 13 Minister for Aboriginal Affairs and Reconciliation 200 Victoria Square State Administration Centre Level 6 Adelaide SA 5000 45 Pirie Street Adelaide SA 5000

Dear Ministers

I have the pleasure of submitting to you the Department of State Development Annual Report and financial statements for the year ended 30 June 2015. The report has been prepared in accordance with the requirements of the Public Sector Act 2009 and the Public Finance and Audit Act 1987.

Yours sincerely

Dr Don Russell Chief Executive Department of State Development

30 September 2015

P 5 CONTENTS

1 CHIEF EXECUTIVE’S FOREWORD 1

2 ABOUT THE DEPARTMENT 5

3 ACHIEVEMENTS BY PROGRAM 11 Program 1: Office of the Economic Development Board 11 Program 2: Employment and Skills Formation 11 Program 3: Science, Technology and Information Economy 12 Program 4: Arts 13 Program 5: Health Industries 14 Program 6: Mineral Resources and Energy 14 Program 7: Opportunities for Small Business 17 Program 8: Water Industry Technical and Safety Regulation 17 Program 9: Globally Integrating the SA Economy 18 Program 10: Industry and Innovation 19 Program 11: Aboriginal Affairs and Reconciliation 20

4 DELIVERING THE ECONOMIC PRIORITIES 23

5 ABBREVIATIONS 29

6 APPENDICES 31 6.1 Ministerial accountability 31 6.2 Legislation administered by the department 32 6.3 Management of human resources 34 6.3.1 Workforce diversity 34 6.3.2 Executives 35 6.3.3 Leave management 35 6.3.4 Performance development 35 6.3.5 Leadership management and development 36 6.3.6 Employment opportunity programs 36 6.3.7 Work health and safety and injury management 37 6.4 Reporting against Carers Recognition Act 2005 38 6.5 Disability access and inclusion plans 38 6.6 Urban Design Charter 38 6.7 Reporting against Whistleblowers Protection Act 1993 38

P 6 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 CONTENTS

6.8 Regional Impact Assessment 38 6.9 Public complaints 39 6.10 Sustainability reporting 39 6.11 Fraud 40 6.12 Consultants 40 6.13 Overseas travel 46 6.14 Freedom of Information 46 6.15 Reconciliation statement 46

7 FINANCIAL STATEMENTS 47

8 LIST OF FIGURES/LIST OF TABLES 119

P 7 CHIEF EXECUTIVE'S 1 FOREWORD

Twelve months ago, the Department of State Development (DSD) was formed with a very clear direction – to lead the economic transformation of South Australia and to help create jobs. We want to create and drive opportunities for people, for businesses, for industry and for the state as a whole.

The Department of State Development works hard to ensure its activities are efficient, effective and align with the Premier’s 10 economic priorities. We are continuing to build new capabilities in sectors where South Australia is already enjoying competitive strengths and which are expected to have above average growth in global demand.

By bringing together a collection of agencies under one umbrella, we have strengthened our capacity to link up important functions of government that need to work successfully together if we are to transform the South Australian economy and provide growth.

DSD’s mandate is to identify and explore opportunities for growth aligned to six of the ten economic priorities. With these priorities as a guide, we are committed to working with business and the community to ensure South Australia works to its strengths and prospers in the global economy. We need to build South Australia’s international connections and alliances and we are working with businesses to build our state’s reputation as a great place to live, work and do business. This department is supporting those who take risks, push boundaries and take their businesses and ideas to the world.

South Australia’s economic performance has been varied across its industry sectors. There have been positive signs through improved consumer spending and in the tourism and international education sectors. The state has seen improved competitiveness in other trade exposed sectors as a result of depreciation of the Australian dollar which will support further economic activity.

However, the state is currently experiencing a number of challenges including the significant structural adjustment required when car manufacturing stops in 2017, a slowdown in China’s economy and continued uncertainty, and a slow recovery in Europe. Further challenges include falling commodity prices which are affecting mineral production.

In a recent speech to the National Press Club, the Premier outlined that a response to the current impacts on the Australian economy is a national task to build a new economy that is open, high-growth, high- technology and clean-technology. Australian governments have a responsibility to assist Australian industries and communities to adjust to current and expected future global circumstances. We have to transform old industries and find new ones in order to compete on a global stage. This is something the Government of South Australia is working on and as the Premier stated "We're destined to shape our own future not to be beholden to others". Major economic transformation in South Australia depends on our state’s ability to find new ways of doing things through innovation, adapting quickly to new and emerging opportunities and through supporting and growing our existing industries.

As the South Australian Government’s principal economic development agency, DSD has accepted lead responsibility for implementing government actions to assist in the required structural transformation.

P 1 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 1 CHIEF EXECUTIVE'S FOREWORD

The six economic priorities DSD is aligned to include:

PRIORITY 1: Unlocking the full potential of South Australia’s resources, energy and renewable assets

PRIORITY 3: A globally recognised leader in health research, ageing and related services and products

PRIORITY 4: The Knowledge State – attracting a diverse student body and commercialising our research

PRIORITY 6: Growth through innovation

PRIORITY 9: Promoting South Australia’s international connections and engagement

PRIORITY 10: South Australia’s small businesses have access to capital and global markets.

DSD also actively contributes to the remaining four priorities:

PRIORITY 2: Premium food and wine produced in our clean environment and exported to the world

PRIORITY 5: South Australia – a growing destination choice for international and domestic travellers

PRIORITY 7: South Australia, the best place to do business

PRIORITY 8: Adelaide, the heart of a vibrant state

DSD is working to build capabilities in sectors where South Australia is already enjoying competitive strengths. The focus is on activity in resources and energy, industry and innovation, investment, trade and immigration, health industries, arts, renewable energy, and Aboriginal affairs and reconciliation. DSD also supports the Economic Development Board which brings together a wide range of business, research and promotional expertise to tackle the development challenges that are facing the state.

In May 2015 the department announced a new focus for skills development in South Australia that will bring under one umbrella all the publicly-funded initiatives in our skills, employment and training system. WorkReady changes how vocational education and training courses are subsidised and purchased to maximise the value the public receives from its investment. It was developed with industry to ensure skills training is targeted at the industries and professions that will lead to more jobs.

WorkReady repositions training, employment and skills policy, activity and investment. It ensures that people are getting the necessary support to start training at the right level, that they complete their training and that they are equipped to move into jobs. Building a skilled, capable and work ready workforce, able to fill current and emerging job opportunities, will be the hallmark of WorkReady’s success and is critical to achieving increased productivity and driving innovation to support economic growth and jobs.

The department played a leading role in the Premier’s successful trade and investment mission to China in May 2015 as part of the South Australia Shandong Cooperation and Development Forum. The department

P 2 1 CHIEF EXECUTIVE'S FOREWORD

coordinated the largest outbound mission in the state’s history, which included around 250 delegates from business, local government, research and education institutions, and State Government agencies.

In March we launched the Export Partnership Program to help South Australian businesses engage with key trading partners in targeted international markets. The program provides eligible companies with up to $50,000 over two years, on a 50:50 funding model, for activities such as training, market research and mentoring. The first round closed in April with 46 applications received.

Given that in 2012-13 an estimated 65,200 jobs were related to overseas exports, it is vital that we continue to provide opportunities and greater access to international markets for our exporters in order to generate future employment growth.

South Australia’s skilled migration numbers have continued to grow, with our target of 2,400 nominations by 2017 almost achieved and business and investment nominations continuing to increase. Just over 600 employer applications have been processed, and 173 new business migrants and around 2,307 skilled migrants been nominated to live, work or invest in South Australia.

The department continued to support South Australian manufacturers to increase their capabilities and competitiveness. Since its launch in October 2012, Manufacturing Works has generated significant outcomes for the 232 companies that participated in its programs, including 290 new jobs and $88 million of additional revenue for participants.

The South Australian Government’s $50 million Unlocking Capital for Jobs Program is an innovative new initiative to make it easier for business to secure commercially viable loans. The program supports jobs and business growth, particularly with an export focus. South Australia’s first successful applicant, Australian Fashion Label, was an ideal candidate. Through its involvement in the program, the company has unlocked additional capital to accelerate its growth and help bring forward plans to establish the business as an iconic and uniquely South Australian global fashion label with the creation of up to 50 new high-value jobs in the state.

At Tonsley South Australian advanced manufacturing is capitalising on innovative thinking and collaboration that is reaching a new level of industrial performance. It is fast becoming an ‘innovation district’ that brings together companies and institutions, as well as creating work spaces where companies can establish and grow.

To support the role innovation plays in our economy, we have invested heavily in new initiatives. For example, the SA Micro Finance Fund aims to make South Australia more internationally competitive by enhancing innovation capabilities through entrepreneurship. It supports businesses looking to take new ideas through to production and sales, with the aim of generating export revenue and growth. We are supporting businesses and workers affected by the closure of automotive manufacturing in South Australia. We are also working with local government, industry and the community to regenerate northern Adelaide’s economy by helping automotive supply chain businesses to build capabilities and diversify into non-automotive markets. We’re also providing $7.3 million to support workers through career advice, skills recognition, training and business start-up advice.

While the economic environment for the mineral and energy resources sector in South Australia has been challenging, combined production value for 2014 reached $7.1 billion, surpassing the record $7 billion for 2013. The latest mineral and petroleum exports figures totalled $3.9 billion for the 12 months to April 2015, accounting for 34 per cent of total state exports.

The Mining Industry Participation Office capitalises on emerging opportunities for South Australian companies to gain a greater share of local, national and international minerals and petroleum supply chains. Initiatives to date include oil and gas supplier tours to the United States, the PACE Supply Chain Development Program, a capability gap analysis for developing South Australia’s world class unconventional gas resources, and establishing the Mining and Petroleum Services Centre of Excellence. To date the Centre of Excellence has allocated $4.1 million towards 15 projects and has attracted a further $21 million in cash and in-kind support.

Further development at Tonsley includes the Innovyz co-working space Co-Hab Tonsley, which accommodates start-ups, entrepreneurs and small businesses. It opened in April. Construction is underway for the State Drill Core Reference Library, scheduled to open later in 2015.

P 3 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 1 CHIEF EXECUTIVE'S FOREWORD

Incorporating Aboriginal Affairs into the department will assist in our task to improve Aboriginal economic participation. We are now better placed to provide improved pathways to education, training and employment opportunities, and support business enterprise and investment. The Government is also committed to supporting regional Aboriginal governance through the Aboriginal Regional Authority Policy, which will establish a network of regional governance bodies to work with the government on important issues impacting Aboriginal South Australians.

Arts SA is creating new synergies and opportunities, with the State’s festivals and cultural events injecting millions of dollars into our economy. The recent trade mission to Shandong, which included 13 arts and cultural representatives, resulted in a memorandum of understanding signed by the State Library and the Shandong Library. We have experienced much success in the last year, with the opening of the Music Development Office, record ticket sales for the 2015 Adelaide Fringe, which fed almost $69 million into the state economy, and the South Australian screen industry contributing $77.2 million in the last financial year.

The department continues to invest in science and research through the Premier’s Research and Industry Fund, which will support projects that increase the state’s research capabilities and our reputation for research excellence. We have also been recognised by international digital networking company Cisco, which announced in September that it would establish Australia’s first Internet of Things Innovation Hub here in Adelaide, in partnership with the State Government and Adelaide City Council. This will make Adelaide Australia’s first Lighthouse City, joining cities such as Barcelona, Dallas and Dubai.

It has been a challenging year for our new department, but we have also made good progress.

We are building a new, inclusive DSD culture to take advantage of all the new linkages that exist within the new department.

I thank our dedicated staff for their hard work during 2014-15, and I look forward to building on our success.

Dr Don Russell Chief Executive

P 4 2 ABOUT THE DEPARTMENT

The Department of State Development was formed on 1 July 2014 through the merging of the former Department for Manufacturing, Innovation, Trade, Resources and Energy and the Department for Further Education, Employment, Science and Technology to provide stewardship of the state’s economic transformation in the context of rapidly changing international and national economic conditions. To reinforce the central role that the Department of State Development has in driving economic development, additional functions from the Department of the Premier and Cabinet were also brought into the department, including the Office of the Economic Development Board and Invest in SA; Arts SA; and Aboriginal Affairs and Reconciliation.

As the lead agency for six of the 10 South Australian Economic Priorities, the Department of State Development is charged with driving economic growth and creating jobs.

The Department of State Development is the engine room for South Australia’s economic transformation and the priorities are: • to unlock the full potential of SA’s resources, energy and renewable assets • to become a globally recognised leader in health research and ageing • to become the Knowledge State • to encourage growth through innovation • to promote our international connections and engagement, and • to ensure our small businesses have access to capital and global markets.

Our agency brings together responsibility for the state’s growing resources and energy portfolio, our transformation to high-value manufacturing and responsibility for skills formation, employment and science. The Department of State Development works in close partnership with business, the education sector, the community and key stakeholders to harness South Australia’s expertise in innovation, skills development and industry transformation.

It also provides leadership of cross-government policy development on Aboriginal affairs and a greater focus on Aboriginal economic participation. This includes skills development, job creation, business development and sustainable employment for Aboriginal people, including support for Aboriginal young people and those living in regional and remote South Australia.

The social and economic contribution made by the arts cultural institutions and the opportunities to grow the creative industries are also a priority.

Increasing the focus on innovation will be key, through assisting our manufacturing sector to move up the value chain through more advanced, value-creating techniques and services.

The department also has responsibility for implementing the automotive transformation strategy for South Australia, together with funding from the Australian Government’s Growth Fund. The Department of State Development, in conjunction with other agencies, drives South Australia’s high-growth and high-value sectors, including minerals and resources, information and communications technology, defence, agriculture, advanced manufacturing and renewable energy. It also coordinates the State Government's engagement with small-to-medium businesses ensuring local firms have access to growing supply chain opportunities in sectors such as oil and gas, defence and aerospace.

Additionally, the department develops trade opportunities and promotes the internationalisation of our economy. By working with the business and the higher education sectors, the agency will help build a smart future for South Australia.

P 5 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 2 ABOUT THE DEPARTMENT

DSD VISION South Australia – Globally Engaged.

DSD DRIVING FORCE Creating Opportunities.

DSD STRATEGIC GOALS • Building on strength • New and innovative industries • Skills and jobs for the future • A place where people want to do business

STRATEGIC ENABLER

High performing agency: We will offer responsive, efficient and imaginative services to the community, actively seeking and providing solutions. We make government work for people.

The department is working together to build a collective “No Wrong Door” culture. The “No Wrong Door” vision states the department is committed to collaboration and service excellence, ensuring that industry, business and the community can make best use of the wide range of services now on offer within the department. In 2015, a High Performing Agency Strategy was developed to ensure that everyone within the department feels a responsibility to deliver the best that the department has to offer. This is the department's "No Wrong Door" strategy.

HIGH PERFORMING AGENCY STRATEGY

The High Performing Agency Strategy (HPA Strategy) was launched in March 2015. The strategy is a business improvement plan that sets out critical short-term priorities for lifting the capability, performance and integrity of the department. The strategy outlines steps to be taken to fulfil the strategic enabler ‘High Performing Agency’ and our“No Wrong Door” culture. The strategy signals the introduction of new ways of working together and taking individual and collective responsibility for improving outcomes.

The strategy includes a number of cross-agency change teams and project teams consisting of knowledge experts from across the department to address critical business improvement initiatives. A High Performing Agency Reference Group (HPARG) was formed in May 2015. The HPARG supports the Executive Board through representing the collective views of each Division.

2014-15 HPA Strategy initiatives include:

BUSINESS PLANNING A new approach to strategic business planning was implemented which provides a means to translate our Strategic Directions 2015-18 into measurable activities that deliver results for industry, businesses and the community.

It is designed to establish effective management principles throughout the agency, define clear accountabilities, and monitor and report on performance. Business planning information will be used to report on performance to internal and external stakeholders, and will be used in the development of preventative initiatives.

PERFORMANCE MANAGEMENT AND DEVELOPMENT A revised Performance Management and Development Framework was launched. The framework facilitated performance partnerships between managers and employees to agree on priorities, understand values and behaviour expectations and identify development needs.

STAKEHOLDER ENGAGEMENT FRAMEWORK A principle based Stakeholder Engagement Framework was launched, which builds on the Premier’s Better Together Principles of Engagement. An online library has been developed for informing and coordinating activities to foster a culture of stakeholder engagement.

P 6 2 ABOUT THE DEPARTMENT

STAFF SURVEY DSD adopted the High Performing Workplace Index Survey (HPWI) as a tool to support continuous improvement. The major themes from the survey were supported by the Executive Board and are informing the development of local actions and departmental organisational change and improvement initiatives.

OTHER 2014-15 HPA STRATEGY ACHEIVEMENTS: • Implemented a new DSD General Ledger and Chart of Accounts. • Consolidated several ICT helpdesks. • Commenced a project to consolidate several records management systems. • Completed a 90 day project to build Stakeholder Information Management Capability, including developing the capacity of the supporting Customer Relationship Management System (CRM). • Completed a 90 day digital media services project to establish streamlined business processes supporting the department’s extensive digital footprint. • Commenced development of a centrally coordinated capacity building strategy, which aligns the departments learning and development opportunities to the department’s strategic direction. • Implemented a Policy Harmonisation Project to reviewed and consolidate a number of the department’s policies and procedures. • Established an Internet User Group to streamline internal communication through the DSD Intranet. • Commenced a review of business support services across DSD. The review will determine how DSD’s business services can and must operate to drive a ‘high performing agency’.

PUBLIC SECTOR VALUES

In a rapidly changing environment, the South Australian Public Sector Values are critical to shaping the culture of our agency and the outcomes we deliver. The following Public Sector Values provide a foundation for the way we do business, make decisions and interact with others: • Service • Professionalism • Trust • Respect • Collaboration and Engagement • Honesty and Integrity • Courage and Tenacity • Sustainability

STRATEGIC ALIGNMENT

ECONOMIC PRIORITIES South Australia’s 10 Economic Priorities were shaped by the Economic Development Board (EDB) and aim to unlock the full potential of South Australia as a place to do business, create jobs, develop industry and attract investment.

The Department of State Development has lead responsibility for six of the 10 Economic Priorities. This presents an enormous opportunity for the department to shape the future of South Australia.

The six lead Economic Priorities for the department are: Economic Priority 1 – Unlocking the full potential of South Australia’s resources, energy and renewable assets Economic Priority 3 – A globally recognised leader in health research, ageing and related services and products Economic Priority 4 – The Knowledge State – attracting a diverse student body and commercialising our research Economic Priority 6 – Growth through innovation Economic Priority 9 – Promoting South Australia’s international connections and engagement Economic Priority 10 – South Australia’s small businesses have access to capital and global markets

P 7 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 2 ABOUT THE DEPARTMENT

THE SOUTH AUSTRALIAN GOVERNMENT’S SEVEN STRATEGIC PRIORITIES In 2012 the State Government identified seven Strategic Priorities for South Australia’s future. These priorities are areas where we can make a difference to the future prosperity of our state: • Creating a vibrant city • An affordable place to live • Every chance for every child • Growing advanced manufacturing • Safe communities, healthy neighbourhoods • Realising the benefits of the mining boom for all • Premium food and wine form our clean environment.

These priorities recognise that South Australia works best when government works in partnership with business and community.

SOUTH AUSTRALIA’S STRATEGIC PLAN South Australia’s Strategic Plan (SASP) guides individuals, community organisations, governments and businesses to secure the wellbeing of South Australians over the medium to long term. SASP contains our community’s vision and goals; its 100 measurable targets reflect our priorities.

The Department of State Development is the lead agency for 35 SASP targets:

• T3: Cultural vibrancy – arts activities • T58: Online business • T6: Aboriginal wellbeing • T60: Energy efficiency – dwellings • T28: Aboriginal leadership • T61: Energy efficiency – government buildings • T36: Labour productivity • T64: Renewable energy • T37: Total exports • T65: Green Power • T38: Business investment • T66: Emissions intensity • T41: Minerals exploration • T90: Share of overseas students • T42: Minerals production and processing • T91: Non-school qualifications • T45: Total population • T92: STEM qualifications • T47: Jobs • T93: Tertiary education and training • T48: Ageing workforce participation • T94: Venture capital • T49: Unemployment • T95: Industry collaboration, research and development • T50: People with disability commercialisation • T51: Aboriginal unemployment • T96: Public research expenditure • T53: Aboriginal employees • T97: University research income • T54: Earning or learning • T98: Business research expenditure • T55: Apprentices • T99: Cultural engagement – institutions • T57: Broadband access • T100: Screen industry

P 8 2 ABOUT THE DEPARTMENT

BOARDS AND COMMITTEES

In July 2014 the Premier announced a large-scale reform of government’s boards and committees to abolish those that were no longer necessary and reform existing boards to create efficiencies, eliminate duplication and improve accountability. The following lists the DSD-supported boards that were in operation during 2014-15. • Aboriginal Lands Trust ¨ • Gas Technical Advisory Committee ¡ • Adelaide Festival Centre Trust ¡ • Health Industries South Australia Advisory Board • Adelaide Festival Corporation Board ¡ • History Trust of South Australia à • Adelaide Film Festival Board • Industries Development Committee • Advanced Manufacturing Council ✕ • Jam Factory Contemporary Craft and Design Inc Board • Art Gallery Board à • Libraries Board of South Australia à • Australian Children's Performing Arts Company • Minerals and Energy Advisory Council à (Windmill Performing Arts) • Power Line Environment Committee v • Bio Innovation SA Board • Roxby Downs Advisory Reference Group à ✕ • Board of Examiners for Mine Managers • Scope Global Pty Ltd Board ✕ • Brukunga Minesite Remediation Board • South Australian Aboriginal Advisory Council ✕ • Business Development Council • South Australian Country Arts Trust • Carclew Youth Arts Inc Board • South Australian Film Corporation à • Carrick Hill Trust • South Australian Museum Board à à • Construction Industry Training Board (CITB) • South Australian Science Council v • Consumer Advisory Committee • State Aboriginal Heritage Committee • Economic Development Board • State Opera of South Australia Board ¨ • Electrical Act 1996 Assessors Panel • State Theatre Company of South Australia Board ¡ • Electrical Technical Advisory Committee • Tandanya National Aboriginal Cultural Institute Inc Board • Energy Consumers Council ✕ of Management • Extractive Areas Rehabilitation Fund Project • Training and Skills Commission Assessment Panel ¨ • Gas Act 1997 Assessors Panel ✕

KEY ¡ Merge ✕ Abolish ¨ Other reform à Subject to further investigation v Reclassify

P 9 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 2 ABOUT THE DEPARTMENT

DEPARTMENT OF STATE DEVELOPMENT FUNCTIONAL STRUCTURE

The formation of the Department of State Development was largely based on the realignment and bringing together of functions and structures to enable a focus on driving economic growth and creating jobs.

Figure 1: DSD functional chart in 2014-15

Economic Development Cabinet Committee

Minister for Minister for State Manufacturing and Minister for Employment, Development Higher Education Minister for the Arts Innovation Minister for Mineral Premier of Minister for Investment and Skills Minister for Automotive Minister for Health Resources and Energy South Australia and Trade Minister for Science and Industries Transformation Minister for Information Economy Minister for Aboriginal Small Business Affairs and Reconciliation

Training Office of Health in SA Office for the Office of Office of Economic and Skills the Training Commissioner for the Small the Industry Development Board Commission Advocate Aboriginal Business Advocate Engagement Commissioner Office of the Economic Development Board

Chief Executive

Deputy Chief Executive Deputy Chief Executive

Aboriginal Affairs Arts SA Skills and Strategy and Industry and Resources and Investment, Trade and Reconciliation Employment Business Services Innovation Energy and Immigration

Carrick Hill*

Art Gallery of SA*

SA Museum*

State Library of SA*

* Statutory Bodies whose employees form part of DSD

Statutory Corporations within the Portfolio History SA, Country Arts SA, State Opera SA, Adelaide Festival Corporation, Adelaide Festival Centre Trust, SA Film Corporation, State Theatre Company SA, Adelaide Film Festival, Australian Children’s Performing Arts Company (Windmill)

P 10 3 ACHIEVEMENTS BY PROGRAM

PROGRAM 1 OFFICE OF THE ECONOMIC DEVELOPMENT BOARD

The Office of the Economic Development Board (OEDB) supports the Economic Development Board (EDB), providing a secretariat function as well as oversight and management of its assigned budget, including procurement and contracting management functions.

In 2014-15, Board members participated in key South Australian trade missions to both Singapore and China.

The OEDB assisted in accelerating timeframes and coordinating the process to achieve the proposed Food Park in the Northern Suburbs. There are potentially significant synergies in co-locating food processors and related suppliers, including a more competitive sector with considerable savings in freight and waste management, encouraging innovation, training and consolidating product for export.

Closely allied to the Food Park, The OEDB initiated an investigation into the establishment of a combined Food Innovation Centre that could seek to undertake a number of activities to underpin food value adding for the State, The Food Innovation Centre would aim to include a facility with equipment for continuous production of different food stuffs, a research & development facility, training, food testing and pilot scale commercial kitchen amenities and a unit with specialist expertise in Asian sensory and market insights.

The department put forward a recommendation for the establishment of a new Investment Attraction Agency, based on national and international best practice models, with a focus on investment and transformation that leads to new jobs. A significant achievement was the announcement of a new investment agency in June 2015 and subsequent funding for this agency was identified in the 2015-16 State Budget.

In addition, the department led the creation of the Value Chain Mapping manual which provides a simple way to understand the processes and pathways to production and sale, by illustrating in simple form, the complexities of the value chain of an industry sector or product. The EDB also commissioned a report by ThinkClimate on the nuclear value chain, which was submitted to the Nuclear Fuel Cycle Royal Commission.

The OEDB in partnership with the South Australian Financing Authority (SAFA) and the Industry and Innovation division within DSD co-created the Unlocking Capital for Jobs program in conjunction with several of the major banks.

The department, through the EDB, has brokered a deal between the three South Australian universities and the Australian Academy of Technological Science and Engineering (ATSE) to be the very first participants nationally of the newly created Research Engagement for Australian metric developed by ATSE. PROGRAM 2 EMPLOYMENT AND SKILLS FORMATION

The Skills and Employment division has responsibility for policy, funding and operation of the state’s vocational education and training (VET) system, employment projects and services as well as regulating and administering the apprenticeship and traineeship system, and providing policy advice and support for South Australia’s higher education institutions. This responsibility includes leading the implementation of the government’s WorkReady, and Jobs and Skills policies and the National Partnership Agreement on Skills Reform. The department’s strategic directions for skills and jobs for the future commits the agency to invest in skills, training, employment and higher education to underpin the economic transformation of South Australia.

Building internationally competitive skills and training through high levels of participation is critical to South Australia’s economic prosperity and social wellbeing. WorkReady aligns the department’s training, employment and skills programs with industry needs and economic priorities.

P 11 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 3 ACHIEVEMENTS BY PROGRAM

In 2014 an external evaluation of Skills for All and a review of red tape in the VET system, guided a repositioning of training, employment and skills policy, activity and investment through the new WorkReady policy. WorkReady brings together government subsidised training, employment and skills initiatives and investment. WorkReady is being phased in from 1 July 2015 and targets public investment in training, employment and skills to areas of strategic economic priority to support a transforming economy.

Also in 2014-15, over 26,100 people without a job or formal qualification were supported to commence a qualification to improve their likelihood of finding work. During 2014 there were 32.6 million hours of VET delivery1 aligned to the needs of industry as forecast by the Training and Skills Commission (TaSC) in its projected industry demand for qualifications. In addition, at 31 December 2014, there were approximately 23,100 apprentices and trainees employed under a training contract including approximately 640 Aboriginal and or Torres Strait Islander people.

There were over 17,000 course enrolments in publicly funded foundation skills qualifications, supporting working aged people with low levels of educational attainment and/or facing barriers to learning. Additionally, the Adult Community Education program funded over 14,500 enrolments in non-accredited and accredited training delivered through not-for-profit community-based organisations.

The quality of our training system in responding to the needs of our economy was increased through rigorous contract management which included reviewing 55 Skills for All training providers and surveying employers of graduates from 14 Skills for All courses to determine whether graduates can do the duties of their occupation to industry standards.

Employment programs have supported around 300 employers and enterprises in priority industries to develop their workforce including through critical need skills training. Assisted by the co-investment of $2 million from industry, over 2,700 qualifications and clusters of skills are being delivered to existing workers with over 1,300 completions in 2014-15. In addition, the opening of the Mining, Engineering and Transport Centre at Regency Park is helping deliver the 20,000 new workers projected by TaSC to be required to support the growth of the mining, transport, defence, engineering, and allied industries up to 2017-18.

Over 1,700 workers have been offered assistance to gain or maintain work throughout their working lives through the Retrenched Worker Program. Another 5,600 people, 22 per cent of which are mature aged people, have been placed in a job through employment projects and services. The Building Family Opportunities program has supported 175 families, including 100 families in Northern Adelaide, and over 570 participants experiencing intergenerational joblessness to overcome barriers to entering the workforce. In 2014-15 89 people gained a job as a result of the program.

The department continues to maintain the high quality standards of our publicly-funded training system through independent validation of assessments for selected skills and employment services to verify that participants can apply their skills and knowledge in the workplace to industry standards. This will include the ongoing reviews of contracted skills and employment service providers to assess their compliance with quality standards and contractual obligations.

In 2014-15, the department hosted a number of inbound delegations and supported the State Government’s overseas trade missions to encourage international student enrolments, as well as supporting the Premier’s Higher Education Committee and representing the state at a national level through membership on national committees and working groups. PROGRAM 3 SCIENCE, TECHNOLOGY AND INFORMATION ECONOMY

By providing the government with a strategic and coordinated focus in science, technology and information economy policy development and program delivery, the Office of Science, Technology and Research (OSTAR) supports state productivity and maximises economic benefit to the state. OSTAR develops strategy and facilitates programs promoting the information economy, implementing initiatives that support digital literacy across the community and fostering partnerships with global ICT companies. It also supports the creation of start-up technology companies to commercialise innovative products and services.

Investment of over $5.3 million from the Premier’s Research and Industry Fund in 35 research projects leveraged more than $9.3 million in partner funds and collectively supported the employment of 107 people across the duration of these projects. The Medical Research Commercialisation Fund (MRCF) was established in South Australia and in 2015 secured a $200 million dollar venture capital fund - the largest life-science fund ever raised in Australia. With South Australia now participating in the MRCF, our medical research institutes and universities will have access to this capital, on a competitive basis, to commercialise their innovative biomedical discoveries. The Venture Catalyst Program and the South Australian Micro Finance Fund were also launched this year to assist in the commercialisation of products and services emerging from South Australian start-up companies.

1 This data is representative of all VET delivered by TAFE and the government funded VET delivered by community education and other registered providers.”

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The Adelaide Wi-Fi project (AdelaideFree) was completed, to provide free wireless internet access across the CBD. This is the first project of its kind in Australia and provides the most extensive coverage of any major Australian city. AdelaideFree received a national Canstar Blue Innovation Excellence Award in Telecommunications.

The South Australian Government and the Adelaide City Council signed a Memorandum of Understanding with global technology company Cisco to establish the first Internet of Things (IoT) Innovation Hub in Australia. Two Smart City projects (Smart Parking and Smart Street Lighting) which will maximise the benefit from internet connected devices, services and infrastructure in the city were also announced. Adelaide was also accepted into Cisco’s international Smart and Connected Communities Lighthouse City Program, joining other major international cities such as Barcelona, Chicago, Hamburg and Dubai as a leading place to showcase information economy innovations. Adelaide’s strong and visionary leadership, innovation and our ability to embrace smart city technologies, particularly through the AdelaideFree WiFi network, brought this opportunity to reality.

Several Science, Technology, Engineering and Maths (STEM) awareness programs were launched in 2014-15, including the Inspiring South Australia Program which will leverage more than $1 million from the Australian Government and universities.

The BioSA Tech Hub opened on 1 October 2014 and together with the existing BioSA Incubator has doubled the business incubation space of the Thebarton Bioscience Precinct. Over 150 full-time equivalents are now employed by companies who fully occupy these two facilities. BioSA also supported bioscience and related companies with grants totalling $2 million to develop commercial technologies in agriculture/food/wine, biofuels, medical devices and pharmaceuticals.

The SA Science Council was formed in 2014-15, replacing the Premier’s Science and Industry Council. The SA Science Council is chaired by the state’s new Chief Scientist Dr Leanna Read and provides high-level, independent advice to the government on science policy issues and oversees implementation of the Investing in Science Action Plan. PROGRAM 4 ARTS

Arts SA ensures the state recognises and capitalises on economic opportunities arising from the diverse arts and cultural organisations, practitioners, events and physical assets in the state. Arts SA develops programs that build on cultural heritage and creativity, and provides financial support to the creative industries. Festivals and arts and cultural events inject millions of dollars into our economy. The presence of Arts in DSD ensures the contribution that Arts makes to the State is recognised and valued and that opportunities to build and capitalise on this sector’s appeal are maximised. It also ensures that Arts funding and grants continue to work efficiently in supporting worthy South Australian performers, visual artists and other creative talents, and in managing the 112 buildings for which it is responsible.

The 2014-15 year saw significant achievements in the cultural heritage sector where attendances remained strong across all the major cultural heritage organisations, including the Art Gallery of SA, the State Library, SA Museum, Carrick Hill and History SA.

As part of the State Government’s $206.7 million commitment to the redevelopment of the Adelaide Festival Centre Precinct, a significant investment has been made to upgrade areas of the Festival Centre complex. During 2015-16, work will commence on new entries and foyers on the Northern side of the Festival Centre and improved integration with Elder Park. In addition, over $11 million has been allocated towards the upgrade of technical equipment within the theatres, including lighting, sound and staging facilities. The Government has also committed over $4 million to the regional theatres in Mount Gambier, Renmark, Whyalla and Port Pirie. Included in the works will be new air-conditioning systems, upgrades to fire safety systems and replacement of staging equipment. 2015-16 will also see an expansion of the facilities at Adelaide Studios with the building of a set construction workshop which will allow the SA Film Corporation to attract larger budget film and television productions to South Australia.

Public Library Services completed the roll-out of the One Card system, which enables library users throughout South Australia to access over four million items from public libraries across the state. Over the October to February period, the Art Gallery of SA showcased iconic garments spanning eight decades of fashion when it mounted the major international exhibition Fashion Icons: Masterpieces from the collection of the Musée des Arts Décoratifs, Paris. Arts SA’s annual capital program funded the heritage restoration of the State Library’s Institute Building. The Museum also continued the entomology collection preservation project to ensure that this important collection is preserved for generations to come.

The State’s cultural institutions progressed initiatives to expand their digital content, offering improved engagement for online visitors. The State Library completed its South Australia’s Centenary of Anzac website and commenced the development of the South Australian Red Cross Information Bureau, a web resource detailing records of the searches for missing soldiers. The content of the free Adelaidia app was doubled, allowing users to explore Adelaide’s history through easy access to information, historical photographs and stories.

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The state’s arts and cultural events provide platforms for our artists and organisations to present their work and engage with broad audiences from diverse areas of the community, including from regional South Australia, interstate and overseas. The events contribute to a vibrant and liveable city and state, push the boundaries of innovation and creativity, and support the arts ecology with something for everyone. They include the highly successful ComeOut Festival for Young People and the OzAsia Festival, with its Shandong focus this year, presented by the Adelaide Festival Centre. The inclusion of the free Adelaide Festival projection project Blinc saw attendances at the Festival exceed 600,000 - the highest in five years. The Adelaide Fringe continues to break records with over 540,800 tickets sold, representing a 21 per cent increase on the 2014 event. Overall Fringe attendances are estimated at more than two million patrons. These events are just a snapshot of the many supported arts and cultural festivals and events across the state. In October 2015, staged with the support of BHP Billiton, TARNANTHI will present a series of exhibitions, public programs and community events showcasing the work of contemporary Aboriginal and Torres Strait Islanders from around the country. The festival will include exhibitions at 21 sites across Adelaide and South Australia, with the exhibition running at the Art Gallery of South Australia until January 2016. In addition to this activity, our organisations and arts companies continue to create and present impressive new work locally, nationally and internationally, including the Australian Dance Theatre’s two sold-out tours to Europe and the Windmill Children’s Theatre opening of Pinocchio on Broadway, in New York.

The Music Development Office at St Paul’s Creative Centre is a great example of the coming together of the arts and industry supported through the Department of State Development. A good mix of core tenants now reside at St Paul’s, with a strong focus on the music industry, with others expressing interest in joining the creative cohort of tenants and hot desk users in this co-working community. The delivery of the Robert Stigwood program has seen the acceleration of the musical careers of all participants as they have been nurtured through industry pathways and presented at significant events nationally and internationally, to great critical acclaim. JamFactory Craft and Design and Guildhouse continue to work with visual arts and craft practitioners on a range of initiatives aimed at increasing the profile and standing of this sector and enhancing its sustainability. JamFactory has established partnerships with furniture manufacturers to deliver bespoke commissions, and Guildhouse has successfully leveraged new funding to advance its marketing, development and residency programs, involving both local and international engagement.. PROGRAM 5 HEALTH INDUSTRIES

Health Industries South Australia works to increase investment and employment in South Australia’s health and biomedical sector. Its work is guided by the South Australian Government’s vision for the state to become a globally recognised leader in health research, ageing and related services and products.

The department undertook analysis of the state’s global competitive advantages in the life sciences sector, to identify key areas of potential health and biomedical investment opportunities.

Further to that analysis, Health Industries South Australia assessed major state-based health and biomedical goods and service exporters, as well as other stakeholders including research and academic organisations, government bodies, and consulting firms, to determine potential international investment and trade partners and included key markets in East Asia, North America and Europe.

A series of value propositions for twenty-first century medicine and mainstream life sciences industry were prepared. Local stakeholders, including financial organisations, were engaged to leverage their networks to attract investment and increase employment in the life sciences sector. Consequently, Health Industries South Australia has been in detailed negotiations and discussion with companies keen to establish and invest in South Australia. Participation in the Premier’s Shandong delegation in May 2015, and attendance in Philadelphia at the Bio International Convention, an annual global biotechnology event in June 2015, provided opportunity to further promote South Australia as an ideal location in which to invest, especially in the area of clinical trials. PROGRAM 6 MINERAL RESOURCES AND ENERGY

The Resources and Energy Group covers a range of functions and includes a number of divisions: Mineral Resources, Energy Resources, Energy Markets and Programs, RenewablesSA and the Olympic Dam Taskforce.

The Mineral Resources division is responsible for driving mineral exploration, development and production to maximise the community’s net benefit from the state’s ownership of the rights to mineral resources. Through best practice regulation it provides comprehensive, high-quality geoscientific data and advice and develops sustainable practices for exploration and development, as well as facilitating major mining projects through streamlined approval processes.

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With a focus on strengthening investment attraction to South Australia by delivering a targeted minerals exploration and investment attraction strategy, Mineral Resources facilitates the successful case management of mining development proposals by leading the delivery of a state multiple land use framework and policy to improve land access decision-making. The Department of State Development contributed to the continued development of South Australia’s mining industry through case management of final mining approvals for the Portia gold mine, the Hillside copper/gold mine and extensions to the Kanmantoo copper mine and further extensions to Arrium’s iron-ore mining operations in the Middleback Ranges.

The PACE Frontiers program, designed to stimulate new exploration in remote regions, introduced a new program of regional drilling, airborne surveying and mineral systems and geological mapping. Collaborative partnerships with the Deep Exploration Technologies Cooperative Research Centre and Geoscience Australia are focused on uncovering new opportunities in the Gawler Craton and in the unknown mineral domains in the far west of the state.

The Eyre Peninsula Land Use Support Program was delivered through facilitated community workshops and engagement programs designed to assist landholders, farming businesses and communities to more effectively engage and benefit from the opportunities provided by new investment across the Eyre Peninsula.

The 2014-15 year saw the commencement of construction of a new State Drill Core Reference Library at Tonsley. This new resources and geoscience centre will be the centrepiece of the emerging resources hub at Tonsley and will provide world-class facilities to underpin a strong mineral and energy resources exploration sector.

The Energy Resources division is responsible for driving petroleum, gas, greenhouse gas storage and geothermal exploration, development and production, by attracting investment to maximise potential economic return to the state. Energy Resources delivers an integrated investment and regulatory framework for industry which underpins efficiency and ensures the sustainable development of South Australia’s energy resources by attracting private sector exploration investment that will lead to new commercial petroleum, geothermal resource and geologic gas storage discoveries and developments. The division regulates exploration and development activities in a transparent manner acceptable to both the community and industry, preparing annual compliance reports on the performance of the industry and the regulator, and providing policy advice to all stakeholders. The division also aims to increase the amount of accessible land for extraction activities and manages the collection of both minerals and petroleum royalties with trustworthy compliance frameworks.

South Australia’s petroleum regulatory system was recognised nationally and referred to in two significant reviews. Dr Allan Hawke AC in his Report of the Inquiry into Hydraulic Fracturing in the Northern Territory, recommended the Northern Territory Government refine their assessment and approval process to use the South Australian system as a model to achieve ‘one-window to government’; and Dr Tina Hunter, Director of the Centre for International Minerals and Energy Law, University of Queensland, named South Australia as one of the top three regulators in the world for shale and tight gas.

The promotion of South Australia for petroleum investment opportunities was targeted at key international and national industry events including the North American Petroleum Expo in February 2015, American Chamber of Commerce Energy Conference in February 2015 and the Australian Petroleum Production and Exploration Association Conference in May 2015.

In 2014-15 progress continued on the high priority recommendations in the Roadmap for Unconventional Gas Projects in South Australia, with 90 of the 125 recommendations implemented or underway.

The Olympic Dam Taskforce provides specialised facilitation of resource projects that are significant in terms of size and complexity, and guides proposed projects through government policy, planning, technical, legal, financial and environmental requirements to enable approval and implementation. Ongoing projects during 2014-15 included BHP Billiton’s Olympic Dam expansion proposal; Nyrstar’s Port Pirie Smelter transformation and the Targeted Lead Abatement Program for Port Pirie; support for Arrium’s iron ore mining and export operations and steel manufacturing activities around Whyalla; and the continued facilitation of Ridley Corporation’s Dry Creek Salt Fields closure project.

New projects in 2014-15 included the establishment of the Resources Infrastructure Taskforce to provide strategic direction on infrastructure for mining, and planning for the development of a South Australian Copper Strategy. A formal partnership was agreed between South Australian copper producer, OZ Minerals and the South Australian Government. This work will conduct hydrometallurgical research that, if successful, will increase copper grades in South Australia and contribute to the development of a Copper Strategy, including collaboration on infrastructure development.

The Energy Markets and Programs directorate provides policy advice and co-ordination of energy market reforms, including national reforms, sustainability, energy efficiency and renewable energy policy as well as developing and delivering energy efficiency and demand management policies and programs. The directorate also manages energy programs for the delivery of services, including the provision of safe and reliable electricity services, across towns in off-grid remote areas of the state, including remote Aboriginal lands.

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During 2014-15 a $1.1 million expression of interest was released to install battery storage systems at high profile public buildings in the Adelaide City Council area to demonstrate how integrating battery storage with solar photovoltaics can deliver multiple benefits such as greenhouse gas reduction, energy load management and energy cost reductions.

A calculator was developed to estimate the lifetime costs of various water heater types and is available on the sa.gov.au website. It encourages consumers to take into account lifetime costs and energy efficiency when choosing a water heater. As part of the Tonsley development project, a public display was developed in collaboration with TAFE SA and local manufacturers of innovative building products, highlighting energy efficient building systems for design and building students and the public.

The department also continued its involvement in significant national energy market reform to improve outcomes for consumers. It delivered a number of legislative amendment packages for Parliament and participated in the development and submission of a number of rule change proposals to the Australian Energy Market Commission. Parliament passed amendments to national energy frameworks to provide for the establishment of Energy Consumers Australia on 30 January 2015, which is tasked with increasing consumer advocacy on national energy market matters of strategic importance and material consequence for energy consumers, in particular residential and small business consumers. To further improve outcomes for consumers, the department has also advised on SA Power Networks’ revenue proposal, identifying opportunities for further investigation by the Australian Energy Regulator with the goal of real decreases in electricity prices.

South Australia led the cross-jurisdictional National Energy Efficient Buildings Project to improve compliance with the energy efficiency requirements of the National Construction Code. The project engaged local government across Australia to trial an ‘electronic building passport’ system, and an as-built inspection and auditing compliance framework. The project also examined the current assessment approval processes for alterations and additions, and developed pathways to improve compliance. As a result of this work, the department was invited to become an observer member of the Australian Sustainable Built Environment Council.

The Department of State Development achieved electricity tariff equalisation in remote areas, thereby reducing cost of living and cost of doing business pressures associated with remote locations. The State Procurement Board also approved tenders for the procurement of long-term Remote Areas Energy Supply (RAES) operational and service contracts, which provide for innovative proposals that provide the potential for renewable energy options, alternate fuel supplies and new opportunities for South Australian companies and regional employees. The department also completed a comprehensive RAES specific Work Health Safety Management system, as an extension of the WHS Management system, to manage safety and risk for employees, contractors and customers at remote electricity generation and distribution sites.

Within the department, the Energy Markets and Programs directorate partnered with RenewablesSA to progress an innovative Integrated Renewable Energy - Diesel Hybrid Generation System to be located at Marree.

The department engaged with the District Council of Coober Pedy and Energy Developments Limited to establish the viability of a 5 MW Hybrid Power Generation facility designed and proposed for Coober Pedy, featuring a combination of diesel generation, solar photovoltaic and wind turbines.

The Office of the Technical Regulator (OTR) is responsible for the enforcement, compliance and promotion of technical and safety regulation and the monitoring and management of energy-related emergency events. The OTR maintained South Australia’s good safety record for electricity and gas-related incidents and has adopted a proactive approach to safety regulation through contributing to the prevention of safety issues before they occur. A review of relevant legislation will further promote this approach with emphasis given to working with industry to achieve safe outcomes. A review of the electrical product safety scheme is seeking to adopt a national approach to cater for the evolving international electrical equipment market.

The department undertook a key role in facilitating the government’s response to the gas outage that impacted Whyalla and Port Pirie. Working with a range of government agencies and private sector infrastructure owners, the concerns and needs of the community and industry were factored into recovery activities. Critical need customers such as the Whyalla and Port Pirie Hospitals were given priority to available gas.

RenewablesSA provides specialist support to enable renewable energy investment and industry development for the state, acting as an enabler of opportunities and removing barriers to investment in South Australia. The approach provides investors with Australia’s most supportive and expeditious regulatory regime to take advantage of our quality renewable energy resources, providing quality information to inform investment and working to maximise the opportunity to leverage national and other external funding and support mechanisms for South Australian-based projects. This approach has seen South Australia draw a major share of private investment in renewable energy in Australia, with $6.6 billion invested to date. In October 2014, RenewablesSA released a resource for potential solar developers and investors interested in understanding the general processes to develop commercial scale solar projects in South Australia. RenewablesSA provides coordination of the department’s economic development initiatives that will support the South Australian Government’s ambitions for Adelaide to become the world’s first carbon neutral city. The commitment was outlined by the Governor in the opening of the fifty-third Parliament in 2015. The development of a low carbon investment plan also supports the carbon neutral Adelaide commitment.

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The department supported the passage of the Pastoral Land Management and Conservation (Renewable Energy) Amendment Bill 2014 through Parliament in October 2014 to allow the coexistence of wind farm developments with pastoralism and fast-track access to pastoral land for commercial-scale solar development.

Using multiple land use principles, and working with the Department of Planning Transport and Infrastructure, RenewablesSA facilitated the resolution of multiple land access issues for a major wind farm development. Unity Housing Company, the largest non-government and not-for-profit housing provider in South Australia, was previously awarded $100,000 by the South Australian Government towards a pilot project using a new model for financing to enable people in low income regional housing to take advantage of solar power. The project, as part of the Australian Government’s National Affordable Rental Scheme initiative, was completed in late 2014, resulting in solar installations using locally manufactured Tindo Solar technology in 80 newly-constructed affordable houses in regional towns in the Mid-north and Upper Spencer Gulf.

The department also facilitated the government’s sponsorship of two renewable energy projects under section 49 of the Development Act 1993, enabling these projects to be assessed under the crown development pathway. PROGRAM 7 OPPORTUNITIES FOR SMALL BUSINESS

The Department of State Development contributes to shaping a business environment in which start-ups can establish and expand, and established businesses have the opportunity and capability to become globally competitive and grow. Economic Priority 10 – South Australia’s small businesses have access to capital and global markets – recognises the critical importance of small business to our state’s economic growth. The department supports small businesses to access the information, networks, expertise, markets and appropriate sources of capital to become globally competitive and achieve their growth aspirations. It also supports the roles of the Small Business Commissioner and the Industry Participation Advocate.

The Department of State Development launched the Unlocking Capital for Jobs Program to make it easier for business to secure commercially viable loans where firms would otherwise not have the balance sheet strength to access finance. The department also launched the South Australian Micro Finance Fund to encourage and support small firms to translate new ideas into business ventures. It supported 10 companies in accessing seed or early stage capital through the Unlocking Capital for Jobs and Venture Catalyst Programs and the Micro Finance Fund.

More than 100 small business owners and managers received advanced business skills development training and access to business mentors to support their growth through the Coaching and Mentoring and South Australian Young Entrepreneurs schemes delivered through Business SA.

The South Australian Small Business Innovation Research Pilot Program commenced a second challenge in 2014 in partnership with the State Emergency Service. PROGRAM 8 WATER INDUSTRY TECHNICAL AND SAFETY REGULATIONS

The Department of State Development, through the Office of the Technical Regulator (OTR), regulates the water industry for compliance with the Water Industry Act 2012. The OTR monitors on-site plumbing and equipment, and water and sewerage infrastructure of water industry entities through the enforcement, compliance and promotion of technical and safety regulation.

The department has significantly increased regulatory presence in regional areas through programmed audits of on-site plumbing and equipment. During regional visits OTR consults with industry and stakeholders, including providing plumbing presentation roadshows to provide information on the latest changes to the Plumbing Code of Australia and the AS/NZS 3500 plumbing and drainage standard suite. A plumbing installations inspector based full-time at Port Pirie audits the Mid North region and sections of the Eyre Peninsula.

In consultation with industry, the Department of State Development is working towards implementing an electronic Certificate of Compliance System for the plumbing, gas and electrical industry and stakeholders. The first two stages of the three-stage project were completed in 2014-15, including a review of OTR’s current processes, and validation of design and planning to accommodate process outcomes. The third stage, which includes construction and implementation of the Certificate of Compliance System, is due to be completed by June 2016.

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Backflow devices are installed on on-site property water services to manage the risk of contaminated water from commercial and industrial businesses from entering drinking water networks. OTR, through stakeholder and industry consultation, has undertaken new measures to enhance the management of risk associated with on-site water services. Property owners who have multiple properties with testable backflow prevention devices are now able to report annual test results in one report. The OTR has also increased on-site inspection of backflow devices to ensure compliance.

In December 2014, the department commenced the regulation of water and sewerage infrastructure through engagement and consultation with the water industry and other relevant government agencies.

The OTR released a guidance document to assist water industry entities in preparing a safety, reliability, maintenance, and technical management plan (SRMTMP). Information sessions were provided for water industry entities who were formally requested to provide an SRMTMP. The department continues to seek streamlined regulatory processes for the water industry, reflecting its commitment to providing effective regulatory frameworks and developing programs that improve the performance of businesses and key sectors. PROGRAM 9 GLOBALLY INTEGRATING THE SA ECONOMY

The Investment, Trade and Immigration (ITI) division supports sustainable economic growth by building on South Australia’s competitive advantages. It achieves this by attracting investment, managing accounts of key businesses and case managing major projects across the state as well as managing of trade, population and migration policies and programs.

The department contributed to the Australian Government’s free trade agreement (FTA) agenda, including agreements with Korea, Japan and China, by providing high level, expert advice. TradeStart Advisers also assisted 39 companies to achieve over $18.5 million worth of export sales for South Australia, and five new distribution agreements. Over 90 new companies were signed up to the TradeStart program during 2014-15, 58 per cent of which were first time exporters. The Export Partnership Program, designed to be of greater appeal to existing and intending exporters, was created following a review and reconfiguration of the Gateway Business Grant Program to facilitate more exports.

A current review of the China and India strategies is focused on opportunities that have emerged since the strategies were adopted in 2012. The South Australia-South East Asia Engagement Strategy was also launched this year. In 2014-15 the division developed a regular calendar of inbound and outbound trade missions, including the largest ever South Australian delegation to China and a delegation to India; both integral parts of the government’s China and India Engagement Strategies.

With regard to the South Australia-India Engagement Strategy, in August 2014 the Premier visited India and met with high profile companies to discuss opportunities for South Australia as part of their supply chains and also promote investment opportunities. In addition, as part of the Cricket World Cup, South Australia hosted a number of Indian business people, and convened a Business Forum to discuss trade and investment opportunities in South Australia. The State also participated in an ‘Australia Business Week’ in India in January 2015, with active participation from the Minister for Investment and Trade.

During 2014-15 the department hosted 23 inbound missions, including the Vice Governor of Shandong Province for the opening of the OzAsia Festival, the Vice Mayor of Qingdao, the Shandong Education Commission and the Vice Chairman of the Shandong People’s Congress.

A number of milestones in South Australia’s engagement with China were achieved, including signing Memoranda of Understanding with: • the Shandong Government and the China Development Bank to facilitate large project funding in South Australia; • the Shandong Department of Commerce to strengthen business cooperation through collaboration between various prefectures and South Australia’s local government; • the Shandong Foreign Affairs Office to collaborate on urbanisation training for county level mayors; and • the Shandong Geominerals Bureau to cooperate in geosciences.

The department also contributes directly to meeting the skills needs of the state’s employers by facilitating the nomination of skilled migrants and certification of employer-sponsored applications. The continued growth in skilled migration numbers has seen the government’s target of 2,400 nominations by 2017 achieved in 2014–15. In addition, there was a 44 per cent growth in business migrant numbers in 2014-15.

By assisting proponents to minimise risk, reducing the times taken to work through required approval processes and co-ordinating appropriate infrastructure needs, the Investment, Trade and Immigration division case-managed several major investment project proposals including:

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• the Iron Road mine project infrastructure corridor and deep-water sea port • Phoenix Energy’s proposed $400 million waste-to-energy facility • Sundrop Farms’ proposed 20-hectare greenhouse near Port Augusta with an indicative capital expenditure of $150 million and • Hornsdale Wind Farm, owned by Neoen (France), a project of approximately $900 million, of which stage 1 will commence construction in 2015.

The division also case managed the Midfield Group’s $60 million transformation of McCain Foods former potato chip manufacturing facility in Penola into a state-of-the-art dairy processing plant, with approximately 80 jobs to be created during the construction period, with the company giving preference to local suppliers and contractors. Hewlett Packard announced that it will look to expand its presence in South Australia with an additional 430 high-end technology jobs over four years. This will be achieved through working closely with the Department of State Development and the University of South Australia, to encourage further employment, training and investment in the ICT sector in South Australia. PROGRAM 10 INDUSTRY AND INNOVATION

The Industry and Innovation division delivers major projects, initiatives and programs that assist the economic transformation of South Australia and support job creation, increased revenue and build industry capability. Through our activities and programs including Manufacturing Works, Our Jobs Plan and the Tonsley Redevelopment we are actively improving local innovation capabilities and broadening the state’s industry base to ensure that it is balanced and globally competitive.

In 2014-15 the department helped 30 South Australian businesses develop new capabilities enabled by technologies, including medical technologies, additive manufacturing, photonics and nano-technology through collaborative partnerships with our universities. The Innovation Voucher Program helped 17 companies build new relationships with external research providers by reducing the financial risk of using researchers to solve problems with commercial outcomes.

We helped businesses innovate by developing a better understanding of their customers and creating new business offerings, revenue models and sources of competitive advantage, resulting in increased profits through our Business Model Innovation Programs. The Business Transformation Program helped 29 businesses create more value and employment through efficiency improvements, including operational, engineering, financial systems along with strategy and market development activities. Under the Micro Finance Fund 10 start-up or early stage companies were awarded matched funding grants of $50,000 to support their business growth plans.

The 2014-15 year saw the release of a Directions Paper ‘A shared vision for northern Adelaide’ as a precursor to community and industry consultation for the Northern Economic Plan, inviting input from key stakeholders and the community on the future directions of the Northern Region following on from the closure of the automotive manufacturing sector. The department is leading the development of the Northern Economic Plan in partnership with local government, industry and the community. Data collection on the make-up of industry and the community and subsequent modelling of future economic scenarios commenced. As a significant contributor to the State economy, major businesses operating in the north were also identified. Key aims for the Northern Economic Plan include: • new projects to generate jobs • strategies for industry diversification and community change • regional promotion and marketing to attract investment and build confidence in the future of the region.

New projects are being identified in industry sectors which are likely to be strong future jobs generators in the northern metropolitan region such as: • food production and food processing • construction, urban development and urban renewal • healthcare and aging related services • education and training • defence • advanced manufacturing • small business.

In its first year, the Automotive Transformation Taskforce conducted over 120 industry visits and provided $1.23 million to five South Australian companies for six projects to help them diversify into new opportunities. The Taskforce proactively leveraged 61 per cent of

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Commonwealth funding available under Round 1 of the Automotive Supplier Diversification Program. In December 2014 the Automotive Workers in Transition Program was launched, providing information sessions to affected car component manufacturing workers.

The cluster initiative continued to support the development of industry-led clusters in water, creative industries, defence vehicles and medical devices sectors. South Australia became a member of the Global Cluster observatory which will assist these industry clusters to strengthen global networks and benchmark against international best practice.

The Industry Capability Network South Australia facilitated over $70.44 million value of contracts for local suppliers across the manufacturing, resources, and defence and infrastructure sectors.

The department continued to lead the Tonsley redevelopment project in partnership with RenewalSA. Flinders at Tonsley was formally opened in January 2015, as was the Onshore Petroleum Centre of Excellence training facility ( a collaboration between Santos Ltd, Beach Energy Ltd, Senex Energy Ltd, the South Australian Government and TAFE SA). Siemens’ Turbo Machinery facility has been operational since April 2015, and the CoHAB co working space was fully occupied within four months of opening and is looking to expand. In addition to these milestones, the Precinct’s international ties have been strengthened notably with the signing of a Memorandum of Understanding with Californian based Prospect SV.

The Mining Industry Participation Office (MIPO) continued to support South Australian businesses to build capability and gain access to minerals and energy resources supply chain opportunities through the Pace Manufacturing program. MIPO also facilitated collaboration between industry and researchers to commercialise technology and innovations through the Mining and Petroleum Services Centre of Excellence. To date the initiative has leveraged $5 from industry (and the Australian Government) for every $1 contributed by the South Australian Government. A number of these projects are now approaching commercial outcomes, resulting in new capabilities for South Australia. PR O G R A M 11 ABORIGINAL AFFAIRS AND RECONCILIATION

The Aboriginal Affairs and Reconciliation division leads the State Government’s Aboriginal affairs policy agenda, providing government- wide strategic advice on a range of key matters relating to the co-ordination and implementation of Aboriginal affairs policies. The division is responsible for jointly leading the state’s participation in the COAG Working Group on Indigenous Affairs in conjunction with the Department of the Premier and Cabinet, co-ordinating related reporting and managing the state’s participation in related bilateral negotiations.

Responsible for the across-government leadership of the state’s Reconciliation agenda, the division also works with communities to strengthen the leadership, capability and accountability of Aboriginal governance structures, and works across sectors to provide the strategic framework through which the state will support Aboriginal South Australians to capitalise on opportunities for job creation and economic growth. It also has responsibility for the management and administration of Aboriginal heritage legislation and supports the state’s three statutory landholding authorities in their oversight and management of over 20 per cent of South Australia’s land mass.

The division provides high level policy advice and leadership across government. It leads the across agency Taskforce charged with developing the state’s first Aboriginal Economic Participation Strategy to deliver increased opportunities for economic participation and improved outcomes for Aboriginal South Australians. Capitalising on the strengths of the agency, the Strategy will focus on increasing employment opportunities, strengthening pathways from education and training to employment, and supporting Aboriginal business. Working across DSD divisions and linking into the State Government’s broader economic strategic agenda, the Strategy recognises economic participation as a key driver of prosperity and wellbeing. The division is currently coordinating a range of DSD projects that will contribute to one or more of the Strategy’s objectives including, for example, a project to develop a whole of government Aboriginal procurement policy and the development of a package of Aboriginal business supports.

The division is also leading a range of related activity including collaboration with Supply Nation, support for the Aboriginal Foundation of South Australia and the engagement of Jawun to commence operations in South Australia to create secondment opportunities for employees from the private sector and for government employees to be seconded to work with Aboriginal communities and organisations. The division led the bilateral negotiations which resulted in agreement on the continued provision of Municipal and Essential Services funding in Aboriginal communities and continues to provide expert advice to agencies on a range of discrete policy initiatives across portfolios. In 2014-15 the division engaged Flinders University to develop the Nations Rebuilding Curriculum which has been tailored for delivery to both Aboriginal community groups and to senior public servants in 2015-16.

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The department led the implementation of the new Aboriginal Lands Trust Act 2013 following the completion of the Act’s review in 2013-14, worked with the Anangu Pitjantjatjara Yankunytjatjara (APY) Executive to build more capable and accountable governance on the APY Lands, and completed a review of Division 1B of the Maralinga Tjarutja Land Rights Act 1984. In 2015-16 the division aims to implement legislative changes to the Anangu Pitjantjatjara Yankunytjatjara Land Rights Act 1981, in response to the review of the Act which was undertaken. The division continues to administer the Aboriginal Heritage Act 1988, manages applications under the Act and supports stakeholder engagement, as well as delivering education programs for governments to raise legislative awareness. It also provides heritage site training for Aboriginal South Australians.

P 21 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 P 22 DELIVERING THE 4 ECONOMIC PRIORITIES

The Government launched the 10 Economic Priorities in 2014 and aims to develop and build our economy and build a strong partnership with industry, government and the community.

• The department is actively assisting in the delivery of a globally significant and competitive minerals and energy resources sector, which is critical to delivering jobs, growth and prosperity for South Australia’s PRIORITY economy. • In order to unlock the full potential of South Australia’s resources, energy and renewable assets, the 1 department is actively supporting improving trade, strengthening linkages between business, universities, research institutions and Government to drive innovation, commercialising more intellectual property and creating roundtables for South Australia’s strategic growth industries. • The department is delivering key strategies to progress the priority objectives which include: -- The Plan for Accelerating Exploration (PACE), which has brought forward new discoveries and additional state mineral production and is widely, recognised as the benchmark for government exploration initiatives -- Delivering on the high priority recommendations of the Roadmap for Unconventional Gas Projects in South Australia -- Leading the innovative South Australian Copper Strategy which will aim to build our future exports of copper to one million tonnes -- Delivering a Low Carbon Investment Plan to further grow investment in renewable energy -- Leading the delivery of innovation projects through the Mining and Petroleum Services Centre of Excellence -- A focus on developing export readiness and business development capabilities for the local and international resources supply chain through the Mining Industry Participation Office renewable assets -- Opening of the Onshore Petroleum Centre of Excellence Training Facility at Tonsley which will train hundreds of industry workers in a fully immersive, simulated oil and gas production environment -- Lead development of the new State Drill Core Reference Library as the resources and geoscience centrepiece of the emerging resources hub at Tonsley.

DELIVERING A LOW CARBON INVESTMENT PLAN TO FURTHER GROW INVESTMENT IN RENEWABLE ENERGY. Australia’s resources, energy and Australia’s Unlocking the full potential of South

P 23 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 4 DELIVERING THE ECONOMIC PRIORITIES

• South Australia is well placed to develop innovative solutions, research, teaching, training and clinical services to accelerate the development and delivery of world-class healthcare and ageing products PRIORITY and services. • The department, through Health Industries SA, is working with international companies in support of 3 attracting investment and jobs into South Australia. • Health Industries SA has developed a theme-based strategy for attracting cutting-edge research and investment to South Australia, utilising international promotional campaigns aimed at raising the profile

of South Australia as the target destination in the Asia Pacific for life sciences. • The department is delivering key strategies that progress priority objectives which include: -- Facilitating investment of $20 million from a US pharma company to convert its research and development operations in Adelaide to a new manufacturing facility of high added-value biological drugs -- Identifying companies with opportunities for investing in and exporting from South Australia. Work continues with these companies to map areas of South Australia’s competitive advantage -- Participating in overseas trade missions, which have provided leads in both clinical trials and in aged care service provision -- Continuing working to attract key companies in China, the US and Europe to establish a business presence in South Australia.

SOUTH AUSTRALIA IS WELL PLACED TO DEVELOP INNOVATIVE SOLUTIONS, RESEARCH, TEACHING, TRAINING AND CLINICAL SERVICES TO ACCELERATE THE DEVELOPMENT AND DELIVERY OF WORLD-CLASS HEALTHCARE AND AGEING PRODUCTS AND SERVICES. ageing and related services and products A globally recognised leader in health research,

P 24 4 DELIVERING THE ECONOMIC PRIORITIES

• South Australia will build a reputation as a state of knowledge creation and innovation - particularly in our areas of excellence such as mining, resources, and defence - via collaboration and co-investment between PRIORITY global and local industry and our research institutions. • South Australian businesses will need to diversify to compete in global marketplaces by improving 4 collaboration between our world-class technology research and local industry. • A key aspect of this strategy is to grow the number of local and international students studying Science, Technology, Engineering and Mathematics (STEM) and position Adelaide as one of the world’s ‘Smart

Digital Cities’. • The department is delivering key strategies to progress the priority objectives which include: -- Securing the participation of South Australia’s three public universities in an initiative created by the Australian Academy of Technological Science and Engineering (ATSE) to measure research engagement -- Completing the Adelaide Wi-Fi project and having signed an MoU with the Adelaide City Council and CISCO to establish an Internet of Things Innovation Hub in Australia -- Establishing an Innovation and Collaboration Centre in conjunction with Hewlett Packard and the University of South Australia -- Leveraging our partnership with CISCO and other global technology companies to develop Adelaide as a Smart Digital City -- Implementing a State-wide framework for STEM Based School Industry Links -- Developing an International Student Strategy -- Reviewing the Premier’s Research and Industry Fund to further develop and better align the state’s science and research capability and capacity -- Implementing the Investing in Science Action Plan to guide our investment in commercialising our research, and developing our current and future research leaders, strategic research infrastructure, and international collaborations.

COMPLETING THE ADELAIDE WI-FI PROJECT AND HAVING SIGNED AN MOU WITH THE ADELAIDE CITY COUNCIL AND CISCO TO ESTABLISH AN INTERNET OF THINGS INNOVATION HUB IN AUSTRALIA. The Knowledge State – attracting a diverse a diverse – attracting State Knowledge The student body and commercialising our research

P 25 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 4 DELIVERING THE ECONOMIC PRIORITIES

• Innovation is one of the strongest enablers of economic growth in an increasingly globalised world, and involves both business and government investing in exploring and developing new ideas. Through PRIORITY innovation, businesses can develop new products and services, establish new markets and increase productivity and profitability, ultimately building a more sustainable economy and driving job creation. 6 • Tonsley is a high-value industry, education and residential precinct which provides transformational infrastructure to allow businesses to innovate and includes a new Co-HAB co-working space, with 24 organisations now on-site at Tonsley. The department will continue to build the global profile of Tonsley and attract additional investment in the targeted industry sectors of mining, resources, clean technologies and renewable energy, health and medical technologies and sustainable construction. • The department is delivering key strategies to achieve the priority objectives, including: -- Supporting and developing roadmaps to identify future industry opportunities in key sectors such as food and assistive technologies. In addition, there has been further implementation of opportunities identified in the ICT Roadmap for Minerals and Energy Resources, through the Mining and Petroleum Services Centre of Excellence. The Roadmap seeks to increase the number of South Australian ICT companies that deliver high-value, innovative solutions to the global resources sector -- Launching the Smart Workplaces Online tool, assisting businesses to identify and implement high performance work systems, recognising the importance of skill development, leadership, communication and creativity in the workplace -- Establishing industry clusters in a range of key sectors including water, defence, medical devices, the internet of things for mining and energy resources, and the creative industries, to increase collaboration and global competitiveness -- The Manufacturing Works strategy, which has seen the further growth of the Photonics Catalyst Program, the Medical Technologies Program and the NanoConnect program, to support the increased adoption of these new technologies by manufacturers -- The Innovation Voucher program, to stimulate innovation in small to medium enterprises through collaboration with private and public research providers -- Continuing support to increase business capability and competitiveness, and accelerate industry growth by delivering programs and services under Our Jobs Plan, Manufacturing Works and a range

Growth through innovation of small business support programs -- Leading the development the Northern Economic Plan, in partnership with local government, industry and the community; the Plan will identify what northern Adelaide can look like, focus on building on existing strengths as well as new areas for growth, and identify the actions and projects to achieve this.

ESTABLISHING INDUSTRY CLUSTERS IN A RANGE OF KEY SECTORS INCLUDING WATER, DEFENCE, MEDICAL DEVICES, THE INTERNET OF THINGS FOR MINING AND ENERGY RESOURCES, AND THE CREATIVE INDUSTRIES, TO INCREASE COLLABORATION AND GLOBAL COMPETITIVENESS.

P 26 4 DELIVERING THE ECONOMIC PRIORITIES

• DSD promotes South Australia’s international connections and engagement, to generate more jobs from trade, foreign direct investment and immigration and to contribute to productivity growth. PRIORITY • The department is delivering key strategies to progress the priority objectives which include: -- Delivering inbound and outbound trade missions including the largest ever South Australian 9 delegations to China and to India -- Developing and commencing implementation of a comprehensive South Australia-South East Asia Engagement Strategy, and beginning development of strategies for the North Atlantic and North Asia -- Preparing the case for the establishment of a new Investment Attraction Agency with a focus on investment and transformation that leads to job creation -- Assisting 39 companies to achieve over $18.5 million worth of export sales together with facilitating five new distribution agreements through the TradeStart program’s Export Advisers -- Providing advice that facilitated the Australian Government’s signing of Free Trade Agreements with Korea, Japan and China, all of which are significant trade partners of South Australia, and on other FTAs still under negotiation, including with India -- Continuing to drive growth in skilled and business migration numbers, achieving the government’s target of 2,400 skilled nominations by 2017 in 2014-15 and also achieving business migrant targets with 187 nominations in 2014-15 -- Successfully launching the Export Partnership Program which provides funding to eligible companies to undertake international market development -- Providing case management services for high value projects undertaken by business migrants and other international investors.

DSD PROMOTES SOUTH AUSTRALIA’S INTERNATIONAL CONNECTIONS AND ENGAGEMENT, TO GENERATE MORE JOBS FROM TRADE, FOREIGN DIRECT INVESTMENT AND IMMIGRATION

connections and engagement AND TO CONTRIBUTE TO PRODUCTIVITY GROWTH. Promoting South Australia’s international Promoting South Australia’s

P 27 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 4 DELIVERING THE ECONOMIC PRIORITIES

• South Australia’s small businesses, are an engine for job creation and vital to a strong economy. • To help our State’s small businesses thrive on the global stage and capitalise on opportunities for growth, PRIORITY the department is delivering key strategies and programs to achieve the priority objectives, including: -- The Micro Finance Fund which provides co-funding to entrepreneurs, to support the translation of 10 good ideas and business plans into new high value businesses -- Venture Catalyst, which provides seed funding to university based entrepreneurial businesses to further develop their product concepts and take them to market -- Supporting more than 90 South Australian businesses to increase innovation, create jobs and increase productivity, profitability and exports through Manufacturing Works programs -- The Unlocking Capital for Jobs Program, which helps businesses secure bank funding to bring forward their growth plans and accelerate job creation in the State -- Assisting small and medium businesses to access new markets and business opportunities through our inbound and outbound trade missions, and by building long-term economic partnerships with our key trading partners.

SUPPORTING MORE THAN 90 SOUTH AUSTRALIAN BUSINESSES TO

INCREASE INNOVATION CREATE JOBS AND INCREASE PRODUCTIVITY, PROFITABILITY AND EXPORTS THROUGH MANUFACTURING WORKS PROGRAMS. access to capitalaccess and global markets South Australia’s small businesses have small businesses have South Australia’s

P 28 5 ABBREVIATIONS

APY Anangu Pitjantjatjara Yankunytjatjara (Lands)

ATSE Academy of Technical Science and Engineering

BMS Building Management System

CITB Construction Industry Training Board

COAG Council of Australian Governments

DFEEST Department of Further Education, Employment, Science and Technology

DMITRE Department for Manufacturing, Innovation, Trade, Resources and Energy

DPC Department of the Premier and Cabinet

FTA Free Trade Agreement

ICAC Independent Commissioner Against Corruption

ICT Information and Communications Technologies

IoT Internet of Things

MRCF Medical Research Commercialisation Fund

NAIDOC National Aborigines and Islanders Day Observance Committee

OEDB Office of the Economic Development Board

OTR Office of the Technical Regulator

PACE Plan for Accelerating Exploration

PIRSA Department of Primary Industries and Regions South Australia

RAES Remote Areas Energy Supply

RIAS Regional Impact Assessment Statement

SIEC Sustainable Industries Education Centre (TAFE SA)

STEM Science, Technology, Engineering and Maths

TAFE SA Tertiary and Further Education South Australia

VET Vocational Education and Training

WHS Workplace Health and Safety

P 29 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 Our agency brings together responsibility for the state’s growing resources and energy portfolio, our transformation to high-value manufacturing and responsibility for skills formation, employment and science. The Department of State Development works in close partnership with business, the education sector, the community and key stakeholders to harness South Australia’s expertise in innovation, skills development and industry transformation.

P 30 6 APPENDICES

6.1 MINISTERIAL ACCOUNTABILITY

The Department of State Development is accountable to the Premier and six ministers in its role in positioning South Australia to capitalise on our high growth, high-value sectors, including minerals and resources, information and communications technology, defence, agribusiness, advanced manufacturing and renewable energy.

Combining industry and workforce functions into a single department harnesses the full range of government services, delivery functions and support activities to drive economic transformation and wealth.

The department is accountable to:

HON JAY WEATHERILL MP Premier

HON GAIL GAGO MLC (Lead Minister for the Department of State Development) Minister for Employment, Higher Education and Skills Minister for Science and Information Economy

HON JACK SNELLING MP Minister for the Arts Minister Health Industries

HON TOM KOUSTANTONIS MP Minister for State Development Minister for Mineral Resources and Energy Minister for Small Business

HON IAN HUNTER MLC Minister for Water and the River Murray

HON MARTIN HAMILTON-SMITH MP Minister for Investment and Trade

HON KYAM MAHER MLC Minister for Manufacturing and Innovation Minister for Automotive Transformation Minister for Aboriginal Affairs and Reconciliation

P 31 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 6 APPENDICES

6.2 LEGISLATION ADMINISTERED BY THE DEPARTMENT

Table 1: Legislation administered by the Department of State Development

Minister Acts

Construction Industry Training Fund Act 1993

The Flinders University of South Australia Act 1966

TAFE SA Act 2012

Technical and Further Education Act 1975

Minister for Employment, Higher Education and Skills Torrens University Australia Act 2013

Training and Skills Development Act 2008

University of Adelaide Act 1971

University of South Australia Act 1990

Vocational Education and Training (Commonwealth Powers) Act 2012

Adelaide Festival Centre Trust Act 1971

Adelaide Festival Corporation Act 1998

Adelaide Festival Theatre Act 1964

Art Gallery Act 1939

Carrick Hill Trust Act 1985

History Trust of South Australia Act 1981 Minister for the Arts Libraries Act 1982

South Australian Country Arts Trust Act 1992

South Australian Film Corporation Act 1972

South Australian Museum Act 1976

State Opera of South Australia Act 1976

State Theatre Company of South Australia Act 1972

Australian Energy Market Commission Establishment Act 2004

Broken Hill Proprietary Company’s Indenture Act 1937

Cooper Basin (Ratification) Act 1975

Electricity Act 1996

The Electricity Trust of South Australia (Torrens Island Power Station) Act 1962 Minister for Mineral Resources and Energy Energy Products (Safety and Efficiency) Act 2000

Gas Act 1997

Mines and Works Inspection Act 1920

Mining Act 1971

National Electricity (South Australia) Act 1996

P 32 6 APPENDICES

Table 1: Legislation administered by the Department of State Development continued

Minister Acts

National Energy Retail Law (South Australia) Act 2011

National Gas (South Australia) Act 2008

Offshore Minerals Act 2000

Opal Mining Act 1995

Minister for Mineral Resources and Energy Petroleum and Geothermal Energy Act 2000

Petroleum (Submerged Lands) Act 1982

Roxby Downs (Indenture Ratification) Act 1982

Stony Point (Liquids Project) Ratification Act 1981

Whyalla Steel Works Act 1958

Building and Construction Industry Security of Payment Act 2009

Minister for Small Business Retail and Commercial Leases Act 1995

Small Business Commissioner Act 2011

Minister for State Development Economic Development Act 1993

Minister for Water and the River Murray Water Industry Act 2012

Industries Development Act 1941 Minister for Manufacturing & Innovation Port Pirie Smelting Facility (Lead-In-Air-Concentrations) Act 2013

Aboriginal Heritage Act 1988

Aboriginal Lands Parliamentary Standing Committee Act 2003

Minister for Aboriginal Affairs and Reconciliation Aboriginal Lands Trust Act 2013

Anangu Pitjantjatjara Yankunytjatjara Land Rights Act 1981

Maralinga Tjarutja Land Rights Act 1984

P 33 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 6 APPENDICES

6.3 MANAGEMENT OF HUMAN RESOURCES

6.3.1 WORKFORCE DIVERSITY

AGE AND GENDER PROFILE

Table 2: Number of employees by age bracket by gender

Age Bracket Male Female Total % of Total 2014 Workforce benchmark (%)

15-19 0 1 1 0.1 5.7

20-24 7 20 27 2.6 9.5

25-29 36 51 87 8.3 10.4

30-34 65 76 141 13.5 9.8

35-39 93 92 185 17.7 10.6

40-44 51 81 132 12.7 11.7

45-49 52 58 110 10.6 11.9

50-54 54 66 120 11.5 11.5

55-59 66 64 130 12.5 9.4

60-64 47 34 81 7.8 6.3

65+ 19 10 29 2.8 3.2

TOTAL 490 553 1043 100 100

DISABILITY

Table 3: Total number of employees with disabilities (according to Commonwealth Disability and Discrimination Act 1992 definition)

Male Female Total % of agency

5 8 13 1.2

Table 4: Types of disability (where specified)

Disability Male Female Total % of agency

Disability requiring workplace adaptation 5 8 13 1.2

Physical 2 4 6 0.6

Intellectual 2 0 2 0.2

Sensory 2 0 2 0.2

Psychological/Psychiatric 0 0 0 0

The department has 2.8 per cent representation of Aboriginal employees (29 employees), exceeding South Australia’s Strategic Plan Target of 2 per cent. This number is based on active employees as at the last pay cycle in June 2015.

P 34 6 APPENDICES

6.3.2 EXECUTIVES

Table 5: Executives by gender, classification and status

Ongoing Term Tenured Term Other Total Untenured (Casual)

Classification Male Female Male Female Male Female Male Female Male % Female % Total

SAES1 - - - - 38 15 - - 38 72 15 28 53

SAES2 - - - - 9 3 - - 9 75 3 25 12

EXEC0A - - - - 0 1 - - - - 1 100 1

CONAGD - - - - 0 1 - - - - 1 100 1

EXEC0F - - - - 1 0 - - 1 100 - - 1

EXEC0E - - - - 1 0 - - 1 100 - - 1

Total - - - - 49 20 - - 49 71 20 29 69

6.3.3 LEAVE MANAGEMENT

Table 6: Average days leave per full time equivalent employee

Leave Type 2014-15

Sick Leave 8.1

Family Carer’s Leave 0.8

Special Leave with Pay 3.7

6.3.4 PERFORMANCE DEVELOPMENT

The department implemented a new performance management and development framework in June 2015. The framework aims to facilitate performance partnerships between managers and employees to agree on priorities, understand values and behaviour expectations and identify development needs. The approach includes regular performance conversations between managers and employees, with at least one formal plan and review conversation annually. The Policy is built on a number of principles, that include strategic alignment, coaching for success, collaboration and teamwork, and leadership based on the public sector values.

The department implemented a series of skill development workshops for managers and staff, to support the implementation of the new framework. To enhance skills and confidence in conducting performance conversations, the following topics were covered: how to make the most of performance management for employees; and for managers, how to manage great performance conversations. A separate workshop also focussed on managing unsatisfactory performance.

Table 7: Documented review of individual performance management

Employee reviews % Total workforce

A review within the past 12 months 35

A review older than 12 months 26

No review 39

ORGANISATIONAL CAPACITY BUILDING PROGRAM The DSD Organisational Capacity Building Program has been derived from the former DMITRE, DFEEST and DPC High Performance Framework Staff Perception Survey results, in consultation with senior leadership and evaluation of previous development programs.

The 2014-15 program of development was further informed by the High Performing Agency initiatives and aspirations outlined in the Strategic Directions 2015-18. This ensures alignment with the planning of development activities and staff skill building priorities required across the agency, to deliver responsive and efficient services to meet the strategic goals.

P 35 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 6 APPENDICES

Skill development identified as priorities for staff included: • project management • project governance • contract management • performance management and development • ethical decision-making • leadership development • redeployment management • stakeholder engagement • mature age workers • building positive teams • resilience and wellbeing • coaching • mentoring • work, health and safety.

The program is centrally funded in the department by Strategy and Business Services and individual directorates. Funds are allocated to the program with activities negotiated annually, based on business need and future directions of the department.

A total of 458 staff participated in the program which comprised of: • ethical decision-making • personal resilience and working through uncertain times • leading through uncertain times • mental health awareness • building resilient teams • performance coaching • project governance • project management • work health and safety • coaching • graduate development and Aboriginal traineeship.

The program offerings incorporated a number of leadership and management topics and included some specific programs targeted at the senior leader and manager cohorts. The program also included the sponsorship of three leaders on the Public Sector Management Program.

6.3.5 LEADERSHIP MANAGEMENT AND DEVELOPMENT

Table 8: Leadership and management training expenditure

Training and development Total cost ($'000) % of Total salary expenditure

Total training and development expenditure 1,166 1.01

Total leadership and management development expenditure 41 0.04

6.3.6 EMPLOYMENT OPPORTUNITY PROGRAMS

GRADUATE PROGRAM The department’s Graduate Employment Strategy 2010-2015 is an innovative program designed to address and refresh the department’s ageing workforce. This annual program provided four skilled graduates with a career pathway into the department and the South Australian public sector.

Graduates participate in a structured program that includes rotational placements across the department’s business units and completion of a tailored development program. It has been designed to prepare graduates to secure further employment within the public sector at the end of their 12-month graduate employment experience.

P 36 6 APPENDICES

In 2015-2016, the DSD Graduate Program will increase in size and new discipline areas will be explored to recruit graduates across the department. Improvements to the future program will incorporate features such as broader networking, placement and development opportunities both internally and across government.

Table 9: Graduate numbers by gender

Male Female

1 3

Table 10: Employment opportunity programs

Male Female

Apprentices, trainees and cadets 0 2

Aboriginal recruitment programs (includes Aboriginal traineeship programs) 0 1

Disability Employment Registers recruitment 1 0

Total 1 3

JOBS4YOUTH SA TRAINEESHIP PROGRAM The Department of State Development participated in the South Australian Government Jobs4Youth SA traineeship program, which aims to employ young people aged between 17 and 24 in the public sector. The department has recruited 12 trainees over the past two years, with three trainees commencing their traineeship during 2014-15. This included the recruitment of one Aboriginal trainee to work across the department.

6.3.7 WORK HEALTH AND SAFETY AND INJURY MANAGEMENT

Table 11: Work health and safety prosecutions, notices and corrective action taken

Number of notifiable incidents pursuant to WHS Act Part 3 5

Number of notices served pursuant to WHS Act Section 90, Section 191 and Section 195 0 (Provisional improvement, improvement and prohibition notices)

Number of prosecutions pursuant to WHS Act Part 2 Division 5 0

Number of enforceable undertakings pursuant to WHS Act Part 11 0

Table 12: Agency gross workers compensation expenditure for 2014-15 compared with 2013-14

Expenditure 2014-15 2013-14 Variation ($) % Change $'000 $'000 + (-) + (-)

Hospital 3 7 (3903) (54.9)

Income maintenance 279 282 (2251) (0.8)

Investigations 13 13 +608 +4.8

Legal expenses 15 31 (16,538) (52.7)

Lump sum 316 214 +101,352 +47.3

Other 5 6 (784) (13.6)

Registered medical 102 123 (21,220) (17.2)

Rehabilitation^ N/A N/A N/A N/A

Travel 2 3 (1152) (33.6)

Total Claim Expenditure 735,852 679,743 +56,109 +8.25

^ Relates to rehabilitation costs incurred outside the costs of Department of the Premier and Cabinet Injury Management Services.

P 37 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 6 APPENDICES

6.4 REPORTING AGAINST CARERS RECOGNITION ACT 2005

The department promoted the Carers Recognition Act 2005 on its intranet site to ensure all employees had an awareness and understanding of this information.

Carer information was also incorporated in the department’s online induction package and occurred through corporate services units across the department.

6.5 DISABILITY ACCESS AND INCLUSION PLANS

The department has commenced work on the development of a new Disability Access and Inclusion Plan in consultation with employees and members of the community. The new plan will outline the department’s commitment to improved physical accessibility, genuine inclusion and strategies to meet the service needs of people with disability.

Other initiatives included workplace modification to enable employees with disability to perform their work, inviting workers with disability to apply for department positions through employment vacancy advertisements and promoting opportunity for people with disabilities.

6.6 URBAN DESIGN CHARTER

The Urban Design Charter promotes the benefits of good urban design, embeds its principles of into government processes and records the South Australian Government’s commitment. The Department of State Development supports measures that ensure the state’s urban environment is internationally competitive, to attract and retain population and business investment.

The department contributes to good urban design through its work in developing the mixed-use precinct for innovative industries, research and development, and education and training at Tonsley. Initiatives are designed to attract investment to the state, help new businesses grow and to support employment growth in line with the 30-Year Plan for Greater Adelaide.

The Tonsley Innovation District was officially launched in February 2015. The adaptive reuse of the Main Assembly Building is illustrative of the state's commitment to building value through a commitment to sustainable development and high quality urban design. Tonsley is committed to achieving excellence in sustainable design and in June 2015 was awarded Green Building Council of Australia's 6-star rating as a sustainable community - a first in Australia.

Application of urban design protocols throughout the precinct coupled with regular design review through the Office of Design and Architecture ensures Tonsley will fulfil its promise of becoming a nationally and globally recognised innovation district.

6.7 REPORTING AGAINST WHISTLEBLOWERS PROTECTION ACT 1993

The Department of State Development has responsible officers for the purposes of theWhistleblowers Protection Act 1993 pursuant to Section 7 of the Public Sector Act 2009. The policy and procedures were reviewed as a result of the introduction of the ICAC Act 2012.

The Department of State Development received no whistleblower related allegations during the year.

6.8 REGIONAL IMPACT ASSESSMENT

The Regional Impact Assessment Statement Policy is part of the South Australian Government’s commitment to ensuring effective consultation and communication with rural and regional South Australia.

Introduced on 1 July 2003, the policy requires all government departments, agencies and statutory authorities to prepare and publish Regional Impact Assessment Statements (RIAS) before introducing significant changes to government services in rural and regional areas. RIAS policy is administered by the Department of Primary Industries and Regions South Australia.

While the Department of State Development did consider the potential regional impacts associated with any of its recommended changes to government services in rural and regional areas, it did not submit any RIAS during 2014-15.

P 38 6 APPENDICES

6.9 PUBLIC COMPLAINTS

The development of a complaints management policy and procedure has commenced within DSD. As a newly established agency, the Department of State Development has focused on setting the strategic direction, which has included a strong emphasis on being a high performing agency and demonstrating a culture of service excellence. In January 2015, the Executive Board approved a High Performing Agency Strategy (HPA Strategy) as a strategic enabler to delivering the DSD Strategic Directions 2015-18. As part of the HPA strategy, a cross- agency Service Excellence Change Team has been established.

Under its terms of reference, the Service Excellence Change Team will: • Implement strategies to address recommendations from the Ombudsman SA's Audit of State Government Complaint Handling. • Develop and implement a DSD complaint management policy and procedure aligned to the Australian Standard for Complaints Handling (AS IOS 10002-2006). • Identify and assess systems and staff management approaches to service recovery that are currently in place. • Consider complaint handling tools to support fair and consistent complaint handling expertise. • Contribute to the design of technical solutions to support complaint handling and escalation. • Engage with staff to build a “no wrong doors” service excellence culture. • Contribute to the design of staff professional development to build service excellence capability. • Contribute to a communications plan to launch the Charter of Public Service Guarantee.

Table 13 : Public complaints received by the Department of State Development

Category of Complaints Number

Service delivery 4

Regulatory/decision-making process of agency 4

Other 1

Total complaints 9

6.10 SUSTAINABILITY REPORTING

The Department of State Development has undertaken a number of sustainability activities and initiatives throughout the year.

The State Government’s Tonsley redevelopment has been recognised as a world leader in environmentally sustainable design and building practices. It is Australia’s only urban renewal development to achieve 6 Star Green Star - Communities certification and is testament to the world-class sustainable design that has guided the redevelopment of the former Mitsubishi site. Launched by the Green Building Council of Australia in 2012, Green Star - Communities is Australia's only national, voluntary, rating system for community and precinct-wide developments.

The TAFE SA Sustainable Industries Education Centre (SIEC) located within the Tonsley precinct incorporates various sustainable practices in the design and construction, and uses these as an educational tool. The mechanical services design has achieved a 25 per cent reduction in energy consumption compared to the divested TAFE SA facilities.

Current and planned environmentally sustainable design principles are featured across the Tonsley precinct, including: • The adaptive re-use of the Main Assembly Building (MAB) which reused approximately 90,000 tonnes of carbon embodied in its original construction. Its rejuvenation has reused 90 per cent of the steel structure and over 70 per cent of the concrete slab, avoiding carbon emissions of a scale equivalent to the average annual emissions of 25,000 cars. • A potential 3 MW solar array on the MAB roof to produce affordable and sustainable energy for Tonsley MAB tenants. • Communications infrastructure which provides the basis for a Smart Grid Energy system to further reduce energy costs and therefore reduce carbon emissions.

P 39 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 6 APPENDICES

• A Building Management System (BMS) at the SIEC to: -- co-ordinate energy efficient lighting when the harvested daylight is insufficient -- control radiant in-slab heating -- feed information on evaporation in cooling towers to maximise energy savings through free cooling. • A public place where water sensitive urban design principles will support sustainability and reduce running costs. • Capacity for 660,000 litres of reclaimed rainwater for non-potable demand and its collection, re-use and filtration controlled through the BMS for use by TAFE SA. • Connected walking and cycling paths providing easy access to public transport. • Spatial and energy efficiency which is achieved by using shared spaces to minimise recurrent costs. • Use of standard dimensions and reusable materials in the construction and education processes to reduce waste.

Initiatives to reduce DSD's carbon footprint are in place throughout the department, including paper and digital recycling, powering off computers when not in use, the selection of electrical goods with a high energy star rating and the promotion of bike-friendly facilities.

DSD leads the implementation of the Government Buildings Energy Strategy which aims to improve the energy efficiency of government buildings and reduce greenhouse gas emissions associated with their operation. This includes a commitment to a life cycle assessment methodology to ensure that sustainability features are factored into the evaluation of projects.

6.11 FRAUD

As part of its risk management framework, the department has implemented processes for identifying and responding to the risks of fraud, including any specific risks, account balances, classes of transactions or disclosures for which a risk of fraud is likely to exist.

The department has established an internal audit and risk management function through its Audit and Risk Management Committee. Further development of these functions will continue to assist the department in meeting its strategic objectives.

The Internal Audit Plan, which is reviewed by the Audit and Risk Management Committee and approved by the Chief Executive, addresses a number of potential risk areas including internal controls over revenue, information and asset security and expenditure activity.

Complementing this work, the Director, Finance is responsible for ongoing internal reconciling controls over department revenue and expenditure, and liaises with the Manager of the Internal Audit function where abnormal variances are detected. The Finance section also works closely with the Internal Audit function to oversee the implementation and monitoring of DSD’s Financial Management Compliance Program.

6.12 CONSULTANTS

Table 14: Consultants for the Department of State Development

Consultancies below $10,000

Consulting firm Purpose of consultancy Number Amount

ABFA PTY LTD DSD programs evaluation meetings and workshops

ACMS PTY LTD Specialist advice in drilling and well operations

Acoustic Force Pty Ltd Future submarine project analysis and advice

Adelaide Research Draft and final report for the evaluation for the pilot Servitisation and & Innovation Innovation in Manufacturing Firms applied learning program

Adelaide Research Evaluation of pilot Servitisation and Applied Learning program & Innovation

Advanced Focus Pty Ltd Provision for a detailed report for the Manufacturing Technologies program

Aurecon Australasia Sewer and Stormwater investigation at the Adelaide Festival Centre and Engineering advice associated with the State Theatre Company Wardrobe relocation to Adelaide Festival Centre

P 40 6 APPENDICES

Table 14: Consultants for the Department of State Development continued

Consultancies below $10,000

Consulting firm Purpose of consultancy Number Amount

Barry O'Leary To design a structure for a proposed new standalone investment attraction agency to inform Economic Development Board recommendations to government

BDO Advisory (SA) Protective Security Policy Framework Protective Security gap analysis Pty Ltd

Core Energy Group To present a high level analysis of the viability of providing additional capacity in the Whyte Yarcowie to Port Pirie Pipeline

Daly PJ & LM Mapping of the Innovation Ecosystem and research into the utilisation of the innovation services by SA companies

Donald Cant Watts Corke Cost estimate for building works associated with the State Theatre (SA) Company Wardrobe relocation to Adelaide Festival Centre

Donna Feretti and Review of the Development Act 1993 Associates

Geoff Nash & Associates Independent Auditing of Ernabella Power Station for Work Health and Safety compliance to accepted industry codes and standards

Gould Thorpe Planning WorkReady planning and coordination Pty Ltd

Grieve Gillett Pty Ltd Preparation of Tandanya Visual Arts Workshop concept

John Freebairn Literature review of modelling in the Neoclassical Economic Paradigm

Lamont Connections Review of the Anangu Pitjantjatjara Yankunytjatjara (APY) Procurement Strategy

Lamont Connections Understanding exploration in protected areas in South Australia

Lean Enterprise Australia To assess whether acceptable environmental outcomes can be achieved and recommend approval of environmental outcomes that meet stakeholder expectation

Manufacturing Focus Project management including coordination of meeting itinerary and Pty Ltd interaction with New Zealand partners

PHIDU Consulting Preparation and online publication of interactive atlas for Regional Development Authorities Far North, Yorke and Mid North, Whyalla and Eyre Peninsula

Professor Peter J Sutton Lake Torrens and Andamooka Island Aboriginal heritage report

Rawtech Pty Ltd Preparation of an expression of interest to Supply Recycled Paper to Kimberly Clark Australia

Reseval Consulting Petrophysical analysis of selected onshore wells of the Otway Basin to determine formation water

SA Centre for Economic Assessment of potential new employment impact of new major projects Studies for the Major Developments Directory 2014/15

SA Radiation Pty Ltd Review of radiation management procedure to ensure legislative compliance

P 41 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 6 APPENDICES

Table 14: Consultants for the Department of State Development continued

Consultancies below $10,000

Consulting firm Purpose of consultancy Number Amount

SGS Economics Develop financial modelling and analysis of property values associated & Planning with suburbs around the Tonsley redevelopment

Tonkin Consulting Option and costing for Brukunga acid holding dam

Venture Catalysts Market research into the current landscape of the aged care, bio- analytics/precision medicine, and advanced manufacturing sectors in South Australia

Wallbridge & Gilbert Geotechnical investigation

Wallmans Lawyers Tonsley Precinct governance model

Subtotal - Value of Consultancies (below $10,000) 32 $147,597.72

Consultancies above $10,000

Consulting firm Purpose of consultancy Number Amount

Acil Allen Consulting Evaluation of Skills for All

Adelaide Research Identify the demand and opportunities in the assistive technologies & Innovation industry

Adelaide Research A multi-sectoral analysis of the impact of the Australia-China Free Trade & Innovation Agreement on the South Australian economy

Adelaide Research Innovation economics awareness and capability project & Innovation

Adelaide Research Assessment of the outcomes of Skilled and Business Migration Programs & Innovation

Adelaide Research To assist with the Graphite feasibility study & Innovation

AMC Consultants Provide financial modelling services for the Resource Infrastructure Taskforce

Australia Academy of Research engagement for Australia Metrics pilot Technological Sciences and Engineering (ATSE)

Australia and New Provide advice and recommendations on the options available for Zealand Banking Group Government to support future operations from the Whyalla Port Limited

Australia Trade Identify potential importers/buyers of South Australian wine Commission

Axessindia Consultancy Assist with the implementation of the South Australian Government's Group India Engagement Strategy

B&PM Jensen - Schmidt Geophysical mapping and data recovery

Barry O'Leary To lead a knowledge transfer session with the Economic Development Board on the Industrial Development Agency Ireland

Becky Hurst Consulting Preparation of a community engagement strategy for the time zone project

P 42 6 APPENDICES

Table 14: Consultants for the Department of State Development continued

Consultancies above $10,000

Consulting firm Purpose of consultancy Number Amount

Brian Hayes QC Assist in the ongoing development, refinement and implementation of the India Trade, Investment and Migration Strategy

Brubrior Investments Assist the government in achieving the best possible outcome for the Pty Ltd state from the development of the Olympic Dam, the Nyrstar Port Pirie Smelter Transformation Project

Cata Brand Partners Develop a name, logo and positioning line to launch the organisation Pty Ltd globally

CMGRP Pty Ltd Specialist communication advice relating to the Economic Development Board's defence projects

Core Energy Group Linking (through pipeline construction) the northern and eastern Australian gas markets

Deloitte Touché Conduct a sector capability and capacity analysis and provide a strategic Tohmatsu analytics report identifying and outlining various sector opportunities

Ernst & Young Victoria Park activation workshop facilitation

Ernst & Young Review of business support services across the department

Executive Boards 3D printing workshop, development of business planning toolkit Australia

Fenix Performance Consultancy services for Port Pirie Smelter transformation Solutions

Frost & Sullivan Assessment of Manufacturing Works strategy

Frost & Sullivan Review of Future Industries for South Australia

Futureye Pty Ltd Strategic communications services for proposed mining operations

Fyfe Pty Ltd Implementation of the Tonsley Precinct governance model

Fyfe Pty Ltd Provide expert water industry engineering advice in formulating standards, safety management plans and auditing

Glaeba Pty Ltd Brukunga Mine remediation program - environmental audit

Golder Associates Pty Ltd Brukunga Mine remediation program - groundwater flow and solute transport modelling

Golder Associates Pty Ltd Conduct review of Kanmantoo Copper Mine dust management

Golder Associates Pty Ltd Professional services related to the Cooper-Eromanga Basins Water Balance

Greg Combet Pty Ltd Professional services and advice to the Automotive Transformation Taskforce

Innovation Performance Development of key messages and acting as an expert spokesperson on Australia Pty Ltd advocacy campaign for the Economic Development Board

Innovation Performance Specialist Adviser on Industry Policy, including Advanced Manufacturing Australia Pty Ltd and Innovation, including advice on industrial transformation of SA and achievement of the Government’s 10 Economic Priorities.

P 43 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 6 APPENDICES

Table 14: Consultants for the Department of State Development continued

Consultancies above $10,000

Consulting firm Purpose of consultancy Number Amount

Intellectual Capital For specialist advice on advanced manufacturing and innovation Services Ltd

Investec Australia Ltd Advisory services for the Strzelecki track sealing project

Jacobs Group (Australia) Brukunga Mine remediation program - agreement for geotechnical, Pty Ltd hydrogeological and geomorphological investigations, design services and associated works

Kennedy Company Assessment of background material for the refresh of Manufacturing Pty Ltd Works strategy

KPMG Australia Workshops for Economic Priorities 6 &10

KPMG Australia Exporters database and survey engagement

KPMG Australia Delivery of a feasibility program report on the Innovation for Growth Pilot Program

KPMG Australia To assist the Economic Development Board in the design of the unlocking capital for jobs program

Making Sense Research and writing of specialist communication materials Communication

Manufacturing Focus Provision for a detailed report for the Manufacturing Technologies Pty Ltd Program

Manufacturing Focus Titanium roadmap project Pty Ltd

Michelle Tabet Coordination for the Adelaide bid to be the World Design Capital

National Institute of The benefits of local submarine construction including spill over Economic and Industry impacts Research Pty Ltd

Norman Waterhouse Assist in the continual refinement and implementation of initiatives contained within the China Strategy

O'Kane Consultants Angas Zinc mine closure peer review plan Pty Ltd

Phassion Corporation Strategic review for the South Australian India Engagement Strategy

Phillips KPA National foundation skills strategy for adults framework review

Pitt & Sherry National Energy Efficient Buildings Project - Communications Plan (Operations) Pty Ltd

PPS Global Pty Ltd Support the automotive transformation "Our Jobs Plan" strategy

Price Waterhouse Mapping exercises of investment attraction framework Coopers

Price Waterhouse Financial options for the Resources Infrastructure Taskforce Coopers

Price Waterhouse India Trade and Investment strategy Coopers

P 44 6 APPENDICES

Table 14: Consultants for the Department of State Development continued

Consultancies above $10,000

Consulting firm Purpose of consultancy Number Amount

Professor Alfred Huang Provide assistance and advice on cultural and other requirements to AM properly engage with Shandong government

Rodeo Creative Pty Ltd Contractor service to assist with concept development and art direction for Adelaide Bid to the World Design Capital

SA Centre for Economic Cost benefit analysis of changes to South Australian time zone Studies

SA Centre for Economic SA Skills Survey - including the provision of a 'help desk', analysis Studies of the survey data by region and industry and report of the survey results including the preparation of infographics

Shannon Architects Design and documentation of office accommodation for the State Theatre Company

The Thomas Family Trust To provide expert mining and infrastructure advice on the development of business cases identified by the Resources Infrastructure Taskforce

Thinc Projects Australia Strategic project management services for the Tonsley Park Pty Ltd development

Thinkclimate Consulting Discussion paper on new industry opportunities in South Australia

Titanium Industry Conduct a workshop with SA companies to introduce those Development companies to additive manufacturing for metals

University of South An Economic Complexity Analysis of Australia’s States Australia

University of South Review of current structure, size capacity and effectiveness of the Australia State Government across agency approach to state promotion

URS Australia Pty Ltd Prepare a response to Auditor Comments on the deliverable final report for Brukunga Phase 2

UXC Consulting Pty Ltd Adelaide Gig city feasibility report

Winborne Pty Ltd Develop a supply scorecard for the Mineral and Energy sector

Pps Global Pty Ltd Support the automotive transformation "Our Jobs Plan" strategy

Price Waterhouse Coopers Mapping exercises of investment attraction framework

Price Waterhouse Coopers Port funding seven financial options for the Resources Infrastructure Taskforce

Price Waterhouse Coopers SA - India Trade and Investment strategy

SA Centre for Economic SA Skills survey Studies

ThinkClimate Consulting Preparation of a discussion on new industry opportunities in SA

Winborne Pty Ltd Develop a supply scorecard for the Mineral and Energy sector

Subtotal - Value of Consultancies (above $10,000) 72 $4,434,646.52

TOTAL 104 $4,582,244.24

P 45 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 6 APPENDICES

6.13 OVERSEAS TRAVEL

Details of overseas travel undertaken by Department of State Development staff during 2014-15 are listed on the department's website. This information is published annually and can be accessed at: www.statedevelopment.sa.gov.au/about-us/proactive-disclosure

6.14 FREEDOM OF INFORMATION

The Freedom of Information Act 1991 (the Act) provides the public and Members of Parliament a legally enforceable right of access to documents held by South Australian Government agencies, subject to certain restrictions that are prescribed within the Act.

In accordance with Section 9 of the Freedom of Information Act 1991, agencies must publish a current Information Statement every 12 months, with the preferred method being on the agency’s website.

The Information Statement for 2014-15 is available at: www.statedevelopment.sa.gov.au/about-us/freedom-of-information

6.15 RECONCILIATION STATEMENT

The department’s Strategic Directions acknowledge Aboriginal people as the state’s first peoples and nations of South Australia.

The department has continued to work closely with Reconciliation SA and other State Government departments to achieve the government’s commitment to reconciliation.

RECONCILIATION ACTION PLAN The department has focused on developing a new Reconciliation Action Plan which will strengthen our capability to respond to the targets set by the government and enable us to provide the best opportunities to Aboriginal people through our programs and services. All targets, activities and outcomes of the department’s plan will aim at building on the good work already underway, with a focus on achieving tangible and measurable outcomes and rigorously monitoring longer-term strategies. The plan will further strengthen relationships, respect Aboriginal culture, improve training, employment and procurement opportunities, and recruitment and retention of Aboriginal employees.

This plan will reflect the diversity of our agency in leading Aboriginal economic participation and reconciliation in South Australia.

RECONCILIATION WEEK The department facilitated a variety of cultural activities and events enriched by both Aboriginal and non-Aboriginal employee participation to celebrate Aboriginal culture during 2014-15.

In keeping with the National Reconciliation Week It’s time to change it up theme, the department hosted some key events during Reconciliation Week: • Internal staffHave your say on our RAP engagement workshops. • An Aboriginal Movie day in partnership with other government agencies which offered two film screenings,Bran Nue Dae and The Kings Seal, followed by a Reconciliation SA facilitated panel discussion. This event was promoted to all staff within the five host departments and was well attended by staff members. • A number of informal ‘tea and talk’ events held across the department.

ANNIVERSARY OF APOLOGY DAY The department continued to recognise the importance of the Anniversary of the Apology Day breakfast. This event was attended by internal staff, key industry partners and members of the department’s Reconciliation Action Committee.

NAIDOC WEEK Employees were encouraged to attend NAIDOC Week activities and events.

P 46 7 FINANCIAL STATEMENTS

INDEPENDENT AUDIT REPORT

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015

DISAGGREGATED DISCLOSURES - EXPENSES AND INCOME FOR THE YEAR ENDED 30 JUNE 2015

DISAGGREGATED DISCLOSURES - ASSETS AND LIABILITIES AS AT 30 JUNE 2015

STATEMENT OF ADMINISTERED COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015

STATEMENT OF ADMINISTERED FINANCIAL POSITION AS AT 30 JUNE 2015

STATEMENT OF ADMINISTERED CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015

STATEMENT OF ADMINISTERED CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015

SCHEDULE OF EXPENSES AND INCOME ATTRIBUTABLE TO ADMINISTERED ACTIVITIES FOR THE PERIOD ENDED 30 JUNE 2015

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

P 47 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

P 48 7 FINANCIAL STATEMENTS

P 49 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

P 50 7 FINANCIAL STATEMENTS

P 51 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

P 52 7 FINANCIAL STATEMENTS

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2015

Note 2015 2014 $’000 $’000

Expenses Employee benefit expense 5 117,504 58,680 Supplies and services 6 84,264 50,839 Vocational Education Training funding 7 240,775 - Depreciation and amortisation expense 8 31,682 2,059 Grants and subsidies 9 288,991 24,846 Net loss from disposal of non-current assets 19 1,656 12 Other expenses 10 8,853 1,342

Total expenses 773,725 137,778

Income Revenues from fees and charges 13 61,155 21,585 Technical regulation 14 6,667 6,384 Sale of electricity 15 4,126 4,630 Commonwealth revenues 16 36,045 1,425 Interest and investment revenues 17 428 6 Resources received free of charge 18 1,021 - Other revenues 20 14,775 7,186

Total income 124,217 41,216

Net cost of providing services (649,508) (96,562)

Revenues from / payments to SA Government Revenues from SA Government 21 686,720 96,064 Payments to SA Government 21 (14,861) (1,109)

Net result 22,351 (1,607)

Other comprehensive income Items that will not be reclassified to net result: Changes in revaluation surplus 26 430 1,679 Changes in financial assets available for sale reserve 28 381 -

Total comprehensive result 23,162 72

The net result and comprehensive result are attributable to the SA Government as owner.

The above statement should be read in conjunction with the accompanying notes.

P 53 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2015

Note 2015 2014 $’000 $’000

Current assets Cash and cash equivalents 22 172,225 22,493 Receivables 23 33,050 4,966 Financial assistance debtors 24 1 16 Non-current assets classified as held for sale 25 30,011 7,500

Total current assets 235,287 34,975

Non-current assets Property, plant and equipment 26 961,873 24,381 Intangibles 27 14,360 707 Investments 28 6,484 -

Total non-current assets 982,717 25,088

Total assets 1,218,004 60,063

Current liabilities Payables 30 121,589 12,592 Employee benefits 31 10,527 6,906 Provisions 32 314 134 Other liabilities 33 6,526 7,170

Total current liabilities 138,956 26,802

Non-current liabilities Payables 30 2,121 595 Employee benefits 31 23,744 9,431 Provisions 32 953 466 Other liabilities 33 818 1,058

Total non-current liabilities 27,636 11,550

Total liabilities 166,592 38,352

Net assets 1,051,412 21,711

Equity Retained Earnings 34 1,031,280 16,152 Financial asset available for-sale revaluation surplus 34 3,880 - Revaluation surplus 34 5,989 5,559 Contributed capital 34 10,263 -

Total equity 1,051,412 21,711

Total equity is attributable to the SA Government as owner. Unrecognised contractual commitments 35 Contingent assets and liabilities 36

The above statement should be read in conjunction with the accompanying notes.

P 54 7 FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2015

Note Retained Financial Revaluation Contributed Total earnings asset surplus capital $’000 $’000 available $’000 $’000 for-sale revaluation surplus $'000

Balance at 30 June 2013 17,125 - 3,880 - 21,005 Prior period adjustments 607 - - - 607

Restated balance at 30 June 2013 17,732 - 3,880 - 21,612

Net result for 2013-14 (1,607) - - - (1,607) Revaluation of plant and equipment - - 1,679 - 1,679

Total comprehensive result 2013-14 (1,607) - 1,679 - 72

Net assets transferred as a result of an 27 - - - 27 administrative restructure

Balance at 30 June 2014 16,152 - 5,559 - 21,711 Prior period adjustments - - - - -

Restated balance at 30 June 2014 16,152 - 5,559 - 21,711

Net result for 2014-15 22,351 - - - 22,351 Revaluation of land 26 - - 430 - 430 Change in financial assets available for sale 28 - 381 - - 381 revaluation surplus

Total comprehensive result 2014-15 22,351 381 430 - 23,162

Contributed capital increases - - - 10,263 10,263 Net assets received as a result of an 37 991,057 3,499 - - 994,556 administrative restructure Net assets transferred as a result of an 37 1,720 - - - 1,720 administrative restructure

Balance at 30 June 2015 1,031,280 3,880 5,989 10,263 1,051,412

All changes in equity are attributable to the SA Government as owner.

The above statement should be read in conjunction with the accompanying notes.

P 55 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2015

Note 2015 Inflows (Outflows) 2014 Inflows (Outflows) $’000 $’000

Cash flows from operating activities

Cash outflows Employee benefit payments (116,493) (58,045) Payments to Vocational Education Training providers (216,857) - Payments for supplies and services (114,654) (57,740) Payments for security deposits (1,504) (214) Payments for grants and subsidies (275,455) (24,492) Payments for paid parental leave scheme (202) (101) Other payments (3,445) - Cash used in operations (728,610) (140,592) Cash inflows Fees and charges 78,258 20,652 Receipts from technical regulation 6,667 6,384 Sale of electricity 4,396 4,683 Receipts from Commonwealth 36,247 1,569 Interest and dividends received 428 8 Net GST recovered from ATO 12,740 5,772 Receipts for security deposits 34 73 Receipts from paid parental leave scheme 212 101 Proceeds from the repayment of financial assistance 15 2 Other receipts 15,561 9,288 Cash generated from operations 154,558 48,532 Cash flows from SA Government Receipts from SA Government 686,720 96,064 Payments to SA Government (14,861) (1,109) Cash generated from SA Government 671,859 94,955 Net cash provided by operating activities 39 97,807 2,895 Cash flows from investing activities

Cash outflows Purchase of property, plant and equipment (23,033) (1,787) Cash used in investing activities (23,033) (1,787) Cash inflows Proceeds from sale of property, plant and equipment 16,035 6 Cash generated from investing activities 16,035 6 Net cash used in investing activities (6,998) (1,781) Cash flows from financing activities

Cash inflows Capital contributions from Government 10,263 - Receipts from restructure activities 48,660 - Net cash generated by financing activities 58,923 - Net cash provided by / (used in) financing activities 58,923 (1,781) Net increase in cash 149,732 1,114 Cash as at the beginning of the period 22,493 21,379 Cash as at the end of the period 22 172,225 22,493

The above statement should be read in conjunction with the accompanying notes.

P 56 7 FINANCIAL STATEMENTS

- - - -

------2014 $’000 ACTIVITY 4:

------12 22 219 879 364 Access to Art, Museum 2015 2,416 4,519 3,329 $’000 2,842 2,506 31,196 38,317 38,804 and Heritage Services Heritage and and (35,475) Preservation of State Collections

- - - -

------2014 $’000 Servicess ACTIVITY 3:

------7

12 22 327 542 2015 1,921 1,673 1,677 $’000 2,244 35,760 39,697 23,264 (14,189) (37,453) Library and Information Information and Library

- - - -

------2014 $’000 ACTIVITY 2:

------9 753 106 658 344 844 2015 1,011 2,612 $’000 Information Economy Information 12,163 16,478 (15,467) (15,467)

Science, Technology and and Technology Science,

- - - -

------2014 $’000 Formation ACTIVITY 1:

- - - - - 979 228 2015 3,931 3,931 1,659 1,659 $’000 6,403 6,403 19,841 59,051 40,419 40,419 18,973 30,773 30,773 34,940 Employment and SkillsEmployment and 112,617 240,775 240,775 452,487 (393,436) (393,436) DISAGGREGATED DISCLOSURESDISAGGREGATED - EXPENSES AND INCOME FOR THE YEAR ENDED JUNE30 2015 The should above statement be conjunction in activity read For notes. with the accompanying 4. note to detail refer Expenses Employee benefit expense Supplies and services Depreciation and amortisation expense Grants and subsidies funding Training Education Vocational Net loss from disposal of non-current assets Other expenses expenses Total Net cost of providing services providing of cost Net Income Revenues from fees and charges regulation Technical Sale of electricity revenues Commonwealth revenues and investment Interest received freeResources of charge Net from gain disposal of non-current assets Other revenues income Total Revenues from / payments to Government SA Revenues Government from SA Government SA Payments to result Net

P 57 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

1 ------13 35 36 40 728 284 489 2014 1,554 $’000 (1,518) (1,518) ACTIVITY 8: Small Business Small

------8 1 1 Opportunities for 53 55 60 617 273 402 2015 1,360 $’000 (1,305) (1,305)

9 4 - - - - - 760 2014 1,251 1,007 4,630 3,662 3,662 $’000 6,384 12,911 37,532 37,025 42,165 21,585 94,875 (57,850) (57,850) and Energy and ACTIVITY 7:

- - - - - Mineral Resources Resources Mineral 48 476 (16) 583 2015 4,126 6,667 $’000 3,005 2,562

39,211 86,197 31,472 15,387 36,209 24,889 (46,986) (46,986)

- - - -

------2014 $’000

ACTIVITY 6:

------2 24 102 169 148 594 444 444 2015 1,750 1,750 1,641 $’000 3,686 (3,092) (3,092) Economic Development Economic CONTINUED

- - - -

------2014 $’000 ACTIVITY 5:

- - - - - 13 43 23 671 251 2015 1,766 $’000 5,254 6,226 4,239 12,138 77,381 10,022 10,055 10,055 75,265 60,978 60,978 (65,243) Arts Industry Development IndustryArts Development and Access to Artistic to Product Access and DISAGGREGATED DISCLOSURESDISAGGREGATED - EXPENSES AND INCOME FOR THE YEAR ENDED JUNE30 2015 Expenses Employee benefit expense Supplies and services Depreciation and amortisation expense Grants and subsidies funding Training Education Vocational Net loss from disposal of non-current assets Other expenses expenses Total Income Revenues from fees and charges regulation Technical Sale of electricity revenues Commonwealth revenues and investment Interest received freeResources of charge Net from gain disposal of non-current assets Other revenues income Total services providing of cost Net Revenues from / payments to Government SA Revenues Government from SA Government SA Payments to result Net The should above statement be conjunction in activity read For notes. with the accompanying 4. note to detail refer

P 58 7 FINANCIAL STATEMENTS

2 1 ------175 327 802 404 2014 5,114 1,130 7, 884 $’000 24,523 10,944 (23,393) (23,393) ACTIVITY 12: Manufacturing and Innovation and

------9 45 114 769 672 108 840 2015 6,128 2,199 $’000 8,499 17,703 (16,863) (16,863)

1 1 ------147 337 577 239 364 666 666 2014 5,026 6,645 $’000 12,849 (12,272) (12,272) ACTIVIT Y 11: the SA Economy SA the

------10 127 794 264 204 908 Globally Integrating Integrating Globally 2015 5,941 1,272 8,278 $’000 4,499

19,753 (18,481) (18,481)

- - - -

------2014 $’000

ACTIVITY 10:

------Aboriginal Affairs Affairs Aboriginal and Reconciliation and 82 30 512 2015 1,116 1,658 1,556 5,365 $’000 5,399 12,402 (10,744) (10,744) CONTINUED

------380 380 809 2014 1,258 2,447 2,447 2,067 $’000 ACTIVITY 9:

------5 1 16 157 157 102 941 2015 1,463 2,479 $’000 2,425 2,582 and Safetyand Regulation Water Industry Technical Industry Technical Water DISAGGREGATED DISCLOSURESDISAGGREGATED - EXPENSES AND INCOME FOR THE YEAR ENDED JUNE30 2015 Expenses Employee benefit expense Supplies and services Depreciation and amortisation expense Grants and subsidies funding Training Education Vocational Net loss from disposal of non-current assets Other expenses Income Revenues from fees and charges regulation Technical Sale of electricity revenues Commonwealth revenues and investment Interest received freeResources of charge Net from gain disposal of non-current assets Other revenues income Total services providing of cost Net Revenues from / payments to Government SA Revenues Government from SA Government SA Payments to result Net Total expenses Total The should above statement be conjunction in activity read For notes. with the accompanying 4. note to detail refer

P 59 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

6 - - 12 2014 7,186 1,425 1,342 1,342 2,059 4,630 $’000 6,384 41,216 (1,109) 21,585 (1,607) 50,839 24,846 58,680 96,064 137,778 (96,562) Activity Total -

428 2015 4,126 1,021 1,021 1,656 6,667 $’000 8,853 61,155 14,775 31,682 22,351 36,045 84,264 117,504 117,504 124,217 (14,861) 240,775 240,775 773,725 288,991 288,991 686,720 (649,508)

- - -

------2014 $’000 (1,109) 94,955 96,064 General / / General Not Attributable Not - - -

------2015 $’000

535,013 (14,861) 549,874 549,874

- - - -

------2014 $’000

ACTIVITY 14:

------1 11 17 13 67 85 641 929 Health Industries SA 2015 1,594 $’000 (1,509) (1,509) CONTINUED

1 1 ------40 2014 1,909 1,869 $’000 (1,908) (1,908) ACTIVITY 13:

------2 2 23 147 143 163 563 894 2015 2,115 3,758 $’000 (3,611) (3,611) Automotive Transformation Automotive DISAGGREGATED DISCLOSURESDISAGGREGATED - EXPENSES AND INCOME FOR THE YEAR ENDED JUNE30 2015 Expenses Employee benefit expense Supplies and services Depreciation and amortisation expense Grants and subsidies funding Training Education Vocational Net loss from disposal of non-current assets Other expenses expenses Total Income Revenues from fees and charges regulation Technical Sale of electricity revenues Commonwealth revenues and investment Interest received freeResources of charge Net from gain disposal of non-current assets Other revenues income Total services providing of cost Net Revenues from / payments to Government SA Revenues Government from SA Government SA Payments to The should above statement be conjunction in activity read For notes. with the accompanying 4. note to detail refer Net result Net

P 60 7 FINANCIAL STATEMENTS

- - -

------2014 $’000 ACTIVITY 4:

- - - 32 58 271 109 Access to Art, Museum 2015 6,117 7,073 7,073 2,018 2,018 9,394 3,277 $’000 3,345 2,605 and Heritage Services Heritage and and Preservation of State Collections

- - -

------2014 $’000 Servicess ACTIVITY 3:

- - - -

43 89 419 167 2015 3,166 3,166 1,790 3,476 3,476 5,507 1,864 $’000 5,088 Library and Information Information and Library

- - -

------2014 $’000 ACTIVITY 2:

------18 30 681 681 700 2015 1,974 1,226 $’000 Information Economy Information (1,293)

Science, Technology and and Technology Science,

- - -

------

2014 $’000 Formation ACTIVITY 1:

- - 787 950 950 2015 $’000 6,484 6,484 18,515 18,515 29,519 98,100 13,091 13,091 18,083 18,083 Employment and SkillsEmployment and 715,118 118,352 833,470 766,293 DISAGGREGATED DISCLOSURESDISAGGREGATED - ASSETS AND LIABILITIES AS AT 30 JUNE 30 2015 AS AT Assets Cash The should above statement be conjunction in read notes. with the accompanying activityFor 4. note to detail refer Receivables Financial assistance debtors Non-current assetsas classified forheld sale Property, and equipment plant Intangibles Investments assets Total Liabilities Payables Employee benefits Provisions Other liabilities liabilities Total assets Net

P 61 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

------16 16 39 271 232 2014 (255) $’000 ACTIVITY 8: Small Business Small

- - - - - 1 4 2 Opportunities for 91 55 54 127 224 2015 (169) $’000

- - - - 2014 7,500 3,624 8,375 $’000 6,843 8,380 11,797 19,021 11,500 26,723 38,520 and Energy and ACTIVITY 7:

- - - - Mineral Resources Resources Mineral 96 875 2015 6,111 6,153 4,028 4,028 $’000 3,364 37,011 37,011 41,914 26,190 15,724

3 3 3 ------2014 $’000

ACTIVITY 6:

------6 4 414 153 153 143 261 2015 (261) $’000 Economic Development Economic CONTINUED

- - -

------2014 $’000

ACTIVITY 5:

- - - 54 84 199 362 2015 3,720 3,720 6,455 $’000 3,688 10,458 139,744 150,202 146,098 146,098 Arts Industry Development IndustryArts Development and Access to Artistic to Product Access and DISAGGREGATED DISCLOSURESDISAGGREGATED - ASSETS AND LIABILITIES AS AT 30 JUNE 30 2015 AS AT Assets Cash Receivables Financial assistance debtors Non-current assetsas classified forheld sale Property, and equipment plant Intangibles Investments assets Total Liabilities Payables Employee benefits Provisions Other liabilities liabilities Total assets Net The should above statement be conjunction in read notes. with the accompanying activityFor 4. note to detail refer

P 62 7 FINANCIAL STATEMENTS

------60 120 120 2014 2,169 2,028 4,257 $’000 (4,137) ACTIVITY 12: Manufacturing and Innovation and

------61 27 696 696 2015 1,791 1,424 3,303 $’000 (2,607)

------60 281 527 567 226 2014 2,146 2,673 $’000 (2,106) ACTIVIT Y 11: the SA Economy SA the

------21 26 821 821 764 Globally Integrating Integrating Globally 2015 2,190 1,379 $’000 (1,369)

- - -

------2014 $’000

ACTIVITY 10:

- - - - - Aboriginal Affairs Affairs Aboriginal 15 and Reconciliation and 641 989 690 2015 (160) 1,574 1,922 1,029 1,029 $’000 2,563 CONTINUED

------44 471 427 (471) 2014 $’000

ACTIVITY 9:

------3 4 98 180 106 106 285 2015 (179) $’000 and Safetyand Regulation Water Industry Technical Industry Technical Water DISAGGREGATED DISCLOSURESDISAGGREGATED - ASSETS AND LIABILITIES AS AT 30 JUNE 30 2015 AS AT Other liabilities liabilities Total assets Net Employee benefits Provisions Assets Cash Receivables Financial assistance debtors Non-current assetsas classified forheld sale Property, and equipment plant Intangibles Investments assets Total Liabilities Payables The should above statement be conjunction in read notes. with the accompanying activityFor 4. note to detail refer

P 63 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

- - 16 600 2014 7,500 4,966 8,228 $’000 21,711 13,187 16,337 22,493 38,352 25,088 60,063 Activity Total

1 2015 1,267 7,344 7,344 $’000 6,484 6,484 30,011 30,011 14,360 33,050 33,050 34,271 34,271 123,710 123,710 961,873 961,873 172,225 166,592 1,051,412 1,218,004

4 - - - - 600 2014 1,159 1,325 1,964 5,841 3,893 $’000 13,837 13,837 20,837 16,944 General / / General Not Attributable Not -

------2015 $’000 172,225 172,225 172,225

------64 64 (64) 2014 $’000

ACTIVITY 14:

------3 2 65 69 69 118 188 Health Industries SA (119) 2015 $’000 CONTINUED

------64 64 (64) 2014 $’000

ACTIVITY 13:

------6 13 701 148 148 302 380 2015 (553) $’000 Automotive Transformation Automotive DISAGGREGATED DISCLOSURESDISAGGREGATED - ASSETS AND LIABILITIES AS AT 30 JUNE 30 2015 AS AT Assets Cash Receivables Financial assistance debtors Non-current assetsas classified forheld sale Property, and equipment plant Intangibles Investments assets Total Liabilities Payables Employee benefits Provisions Other liabilities liabilities Total assets Net The should above statement be conjunction in read notes. with the accompanying activityFor 4. note to detail refer

P 64 7 FINANCIAL STATEMENTS

STATEMENT OF ADMINISTERED COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2015

2015 2014 $’000 $’000

Expenses Employee benefit expenses 908 319 Supplies and services 1,131 35 Grants and subsidies 7,534 1,422 Payment of royalties to the Consolidated Account 237,452 291,331 Other expenses 6,379 10,160

Total expenses 253,404 303,267

Income Royalties 237,460 291,331 Interest 821 - Other revenues 6,454 10,104

Total income 244,735 301,435

Net cost of providing services (8,669) (1,832)

Revenues from / payments to SA Government Revenues from SA Government 8,649 1,713

Net result (20) (119)

Total comprehensive result (20) (119)

The net result and comprehensive result are attributable to the SA Government as owner.

The above statement should be read in conjunction with the accompanying notes.

P 65 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

STATEMENT OF ADMINISTERED FINANCIAL POSITION

AS AT 30 JUNE 2015

2015 2014 $’000 $’000

Current assets Cash 49,329 17,768 Receivables 3,834 1,492

Total current assets 53,163 19,260

Total assets 53,163 19,260

Current liabilities Payables 18,597 19,092 Other 3 -

Total current liabilities 18,600 19,092

Total liabilities 18,600 19,092

Net assets 34,563 168

Equity Retained earnings 34,563 168

Total equity 34,563 168

Total equity is attributable to the SA Government as owner.

The above statement should be read in conjunction with the accompanying notes.

P 66 7 FINANCIAL STATEMENTS

STATEMENT OF ADMINISTERED CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2015

Retained Total Earnings $’000 $’000

Balance at 30 June 2013 287 287

Net result for 2013-14 (119) (119)

Total comprehensive result for 2013-14 (119) (119)

Balance at 30 June 2014 168 168

Net result for 2014-15 (20) (20)

Total comprehensive result for 2014-15 (20) (20)

Equity acquired on restructure 34,415 34,415

Balance at 30 June 2015 34,563 34,563

All changes in equity are attributable to the SA Government as owner.

The above statement should be read in conjunction with the accompanying notes.

P 67 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

STATEMENT OF ADMINISTERED CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2015

2015 2014 Inflows (Outflows) Inflows (Outflows) $’000 $’000

Cash flows from operating activities

Cash outflows Employee benefit payments (908) (319) Payments to suppliers (1,627) - Payments for grant and subsidies (7,534) (1,422) Payments for royalties to Consolidated Account (240,652) (295,756) Other payments (6,379) (9,584)

Total cash outflows (257,100) (307,081)

Cash inflows Revenues from SA Government 9,725 1,713 Other receipts 8,767 10,352 Royalties receipts 233,629 312,274

Total cash inflows 252,121 324,339

Net cash (used in) / provided by operating activities (4,979) 17,258

Cash flows from financing activities

Cash inflows Receipts on restructure 36,540 468

Total cash inflows 36,540 468

Net cash (used in) / provided by financing activities 36,540 468

Net increase / (decrease) in cash 31,561 17,726 Cash as at the beginning of the period 17,768 42

Cash as at 30 June 49,329 17,768

The above statement should be read in conjunction with the accompanying notes.

P 68 7 FINANCIAL STATEMENTS

------17 17 35 35 (18) (18) (18) 2014 $’000 Mintabie

------12 12 75 75 Administration (63) (63) (63) 2015 $’000

------73 (73) (73) (73) 2014 $’000 291,331 291,331 291,331 291,404 Royalties

- - - - - 71 71 71 (13) (76) 2015 $’000 237,376 237,452 237,447 237,460 -

------319 319 291 (28) (28) (319) 2014 $’000 -

------789 908 908 Ministers' SalaryMinisters' (119) (119) 2015 (908) $’000

- - -

------2014 1,422 1,422 1,422 $’000 (1,422) - - -

------Commissioner Small Business Business Small 2015 1,686 1,686 1,686 $’000 (1,686) - - - - -

------2014 $’000

- - - - - Reconciliation 91 91 821 821 2015 6,174 1,056 1,056 $’000 6,904 5,848 5,848 (6,083) Aboriginal Affairs and and Affairs Aboriginal SCHEDULE OF EXPENSES ADMINISTERED TO AND INCOME ATTRIBUTABLE ACTIVITIES FOR THE PERIOD ENDED JUNE30 2015 Expenses Employee benefit expenses Supplies and services Grants and subsidies Account the Consolidated of royalties to Payment Other expenses Total expenses Total Income Interest Royalties Other revenues income Total services providing of cost Net Revenues from / payments to Government SA Revenues from Government / payments SA to result Net result comprehensive Total

P 69 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS . Whyalla Steel Steel Whyalla , Petroleum and Geothermal Act 2000Petroleum and the Roxby Downs (Indenture Ratification) Act 1982 Act Ratification) (Indenture Downs Roxby Mining Act 1971 , ABORIGINAL AND RECONCILIATION AFFAIRS COMMISSIONER BUSINESS SMALL ROYALTIES NATIVE TITLE AGREEMENT TITLE NATIVE The Anangu Pitjantjatjara Yankunytjatjara (APY) Lands Task Force is funded is The Force Anangu Yankunytjatjara (APY) Pitjantjatjara Lands Task for Finance and Treasury Department of the from appropriation through and deliverythe coordination of diversionary programs the APY across Land communities. The department Commonwealth administers also Government funding for projects Lands on the and APY other Aboriginal communities. Appropriation funding Commissioner for the OfficeBusiness Small of the the department. paid to the by is Department and Finance The of Treasury funding then Commissioner provided the is OfficeBusiness to Small of the a separate reportingwhich is The entity. amounts transferred the Office to of and only funding appropriation represent Commissioner Business Small the budget thenot for the entire operations. The department royalties levied receives on and minerals petroleum production on Government. behalf Royalty of the State collected are receipts the to pursuant Works Act Works 1958 the in monthRoyalty Account returned the are receipts Consolidated to collection. following The department collects of the total via a levy revenue equivalent1% to royalty payable royalty for relevant payers. offset This is by paymentsmade twoto Lands the Aboriginal in APY Councils

- - 319 (119) (119) 2014 1,713 1,422 $’000 Total 10,195 10,104 (1,832) 291,331 291,331 301,435 303,267

821 908 (20) (20) 2015 1,131 7,534 7,534 6,379 $’000 6,454 8,649 (8,669) 237,452 237,460 244,735 253,404

- - -

------2014 $’000 10,087 10,087 10,087 10,087 Agreement Agreement Native Title Native - - -

------2015 6,455 6,455 6,455 6,455 $’000 CONTINUED SCHEDULE OF EXPENSES TO AND INCOME ATTRIBUTABLE ADMINISTERED ACTIVITIES FOR THE PERIOD ENDED JUNE30 2015 Expenses Employee benefit expenses Supplies and services Grants and subsidies Account the Consolidated of royalties to Payment Other expenses expenses Total Income Interest Royalties Other revenues income Total services providing of cost Net Revenues from / payments to Government SA Revenues from Government / payments SA to result Net result comprehensive Total

P 70 7 FINANCIAL STATEMENTS

TRANSFERRED FUNCTIONS

The effective date of the transfer was 1 July 2014.

Under the Public Sector (Reorganisation of Public Sector Operations) Notice 2014, from 1 July 2014 the Administered operational units of; Aboriginal Affairs and Reconciliation (AARD), and APY Lands, were transferred from the Department of the Premier and Cabinet to the Department of State Development.

The effective date of the transfer was 1 July 2014.

On transfer, the department recognised the following assets and liabilities:

DFEEST Funds AAR APY Lands Total $’000 Administered Funds $’000 $’000 $’000

Assets Cash - 16,568 19,972 36,540 Receivables 72 32 39 143

Total assets 72 16,600 20,011 36,683

Liabilities Payables - 143 2,125 2,268

Total liabilities - 143 2,125 2,268

Total net assets transferred 72 16,457 17,886 34,415

Net assets assumed by the department as a result of the administrative restructure are the carrying amount of those assets in the transferor’s Statement of Financial Position immediately prior to transfer. The net assets transferred were treated as a contribution by the Government as owner.

P 71 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

BUDGETARY REPORTING AND EXPLANATIONS OF MAJOR VARIANCES BETWEEN BUDGET AND ACTUAL AMOUNTS

The following are brief explanations of variances between original budget and actual budget amounts.

Explanations are provided for variances where the variance exceeds the greater of 10% of the budgeted amounts and 5% of budgeted total expenses.

Variance Original DSD Actual 2015 Variance Ref Administered $’000 $'000 Budget 2015 $’000

Statement of Comprehensive Income Expenses Employee benefit expenses 892 908 16 Supplies and services 92 1,131 1,039 Grants and subsidies 7,573 7,534 (39) Payment of royalties to the Consolidated Account (a) 323,062 237,452 (85,610) Other expenses 7,231 6,379 (852)

Total expenses 338,850 253,404 (85,446)

Income Royalties (a) 323,062 237,460 (85,602) Interest - 821 821 Other revenues 7,231 6,454 (777)

Total income 330,293 244,735 (85,558)

Net cost of providing services (8,557) (8,669) (112)

Revenues from / payments to SA Government Revenues from SA Government 8,557 8,649 92

Net result - (20) (20)

Total comprehensive result - (20) (20)

The budget process is not subject to audit. Budget information refers to the amounts presented to Parliament in the original budgeted financial statements in respect of the reporting period (2014-15 Budget paper 4). These original budgeted amounts have been presented and classified on a basis that is consistent with line items in the financial statements. However, these amounts have not been adjusted to reflect revised budgets or administrative restructures/machinery of government changes.

EXPLANATION OF MAJOR VARIANCES FROM BUDGET - ADMINISTERED a. Royalties are recognised as administered revenue and then paid to DTF’s Consolidated Account. Royalties are significantly lower than original budget due to lower than expected petroleum prices and lower than expected mineral prices and production.

P 72 7 FINANCIAL STATEMENTS

NOTE INDEX

Note 1 Objectives of the Department of State Development 74 Note 2 Summary of significant accounting policies 74 Note 3 New and revised accounting standards and policies 82 Note 4 Activities of the department 83 Note 5 Employee benefits expense 84 Note 6 Supplies and services 86 Note 7 Vocational Education Training funding 86 Note 8 Depreciation and amortisation expenses 87 Note 9 Grants and subsidies 87 Note 10 Other expenses 88 Note 11 Auditor's remuneration 88 Note 12 Overseas representative offices 88 Note 13 Revenues from fees and charges 89 Note 14 Technical regulation 89 Note 15 Sale of electricity 89 Note 16 Commonwealth revenues 90 Note 17 Interest and investment revenues 90 Note 18 Resources received free of charge 90 Note 19 Net gain / Loss from the disposal of non-current assets 91 Note 20 Other revenues 91 Note 21 Revenues from / Payments to SA Government 91 Note 22 Cash and cash equivalents 92 Note 23 Receivables 93 Note 24 Financial assistance debtors 94 Note 25 Non-current assets classified as held for sale 94 Note 26 Property, plant and equipment 95 Note 27 Intangible assets 97 Note 28 Investments 98 Note 29 Fair value measurement 98 Note 30 Payables 100 Note 31 Employee benefits 100 Note 32 Provisions 101 Note 33 Other liabilities 101 Note 34 Equity 102 Note 35 Unrecognised contractual commitments 102 Note 36 Contingent assets and liabilities 104 Note 37 Transferred functions 104 Note 38 Remuneration of board and committee members 106 Note 39 Cash flow reconciliation 111 Note 40 Trust funds 112 Note 41 Events after the reporting period 113 Note 42 Transactions with SA Government 113 Note 43 Budgetary reporting and explanations of major variances between budget and actual amounts 115 Note 44 Financial risk management / Financial instruments 117

P 73 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

NOTE 1 OBJECTIVES OF THE DEPARTMENT OF STATE DEVELOPMENT

The Department of State Development came into operation on 1 July 2014 bringing together the former Department for Manufacturing, Innovation, Trade, Resources and Energy, Department for Further Education, Employment, Science & Technology and a number of functions from the Department of the Premier and Cabinet.

As the lead agency for six of the ten South Australian economic priorities, the Department of State Development is responsible for driving economic growth and creating jobs.

The department supports South Australia’s economic transformation under priorities of: • unlocking the full potential of South Australia’s resources, energy and renewable assets • a globally recognised leader in health research and ageing • the Knowledge State – attracting a diverse student body and commercialising our research • growth through innovation • promoting our international connections and engagement • ensuring our small businesses have access to capital and global markets.

The department brings together responsibility for the state’s growing resources and energy portfolio, the transformation to high-value manufacturing and responsibility for training, employment and skills initiatives and science. The department works in close partnership with business, the education sector, community and key stakeholders to harness South Australia’s expertise in innovation, skills development and industry transformation.

The department also provides leadership for cross-government policy development on Aboriginal affairs, reconciliation and Aboriginal economic development. This includes skills development, job creation, business development and sustainable employment for Aboriginal people, including support for Aboriginal young people and those living in regional and remote South Australia.

The department is also responsible for maximising the social and economic contribution made by the arts and driving opportunities to grow creative industries through innovation, as well as high-value technology sectors, including medical research and biotechnology.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A) STATEMENT OF COMPLIANCE These financial statements have been prepared in compliance with section 23 of the Public Finance and Audit Act 1987.

The financial statements are general purpose financial statements. The accounts have been prepared in accordance with relevant Australian Accounting Standards and comply with Treasurer’s Instructions and Accounting Policy Statements promulgated under the provisions of the Public Finance and Audit Act 1987.

The department has applied Australian Accounting Standards that are applicable to not-for-profit entities, as the department is a not-for- profit entity.

B) BASIS OF PREPARATION The preparation of the financial statements requires: • the use of certain accounting estimates and requires management to exercise its judgement in the process of applying the department's accounting policies. The areas involving a higher degree of judgement or where assumptions and estimates are significant to the financial statements are outlined in the applicable notes; • accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events are reported; and • compliance with Accounting Policy Statements issued pursuant to section 41 of the Public Finance and Audit Act 1987. In the interest of public accountability and transparency the accounting policy statements require the following note disclosures, which have been included in this financial report:

P 74 7 FINANCIAL STATEMENTS

a. revenues, expenses, financial assets and liabilities where the counterparty / transaction is with an entity within the SA Government as at reporting date, classified according to their nature. The threshold of $100 000 for separate identification of these items has not been applied; b. expenses incurred as a result of engaging consultants (as reported in the Statement of Comprehensive Income); c. employee targeted voluntary separation package information; d. employees whose normal remuneration is equal or greater than the base executive remuneration level (within $10 000 bandwidths) and the aggregate of the remuneration paid or payable or otherwise made available, directly or indirectly by the entity to those employees; and e. board / committee member and remuneration information, where a board / committee member is entitled to receive income from membership other than a direct out-of-pocket reimbursement.

The department's Statement of Comprehensive Income, Statement of Financial Position and Statement of Changes in Equity have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets that were valued in accordance with the valuation policy applicable.

The Statement of Cash Flows has been prepared on a cash basis.

The financial statements have been prepared based on a twelve month period and presented in Australian currency.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2015 and the comparative information presented.

C) REPORTING ENTITY The department is a government department of the State of South Australia, established pursuant to the Public Sector Act 2009.

The department is an administrative unit acting on behalf of the Crown.

The financial statements and accompanying notes include all the controlled activities of the department. As administered items are insignificant (on a net basis) in relation to the department’s overall financial performance and position, they are disclosed in the administered financial statements at the end of the controlled General Purpose Financial Statements. Except as otherwise disclosed, administered items are accounted for on the same basis and using the same accounting policies as for departmental items.

D) PRINCIPLES OF CONSOLIDATION Scope Global Pty Ltd (formerly Austraining International Pty Ltd), which has a reporting date of 30 June, is controlled by the Minister for Employment, Higher Education and Skills. Its principal activity is to secure international contracts for work in vocational education and training.

Although the Minister has control over Scope Global Pty Ltd it is not considered part of the department’s operations. The department could not influence the decisions of Scope Global Pty Ltd, nor could the department dominate the financial and operational policies of Scope Global Pty Ltd. Consequently, Scope Global Pty Ltd was not consolidated in the accounts nor disclosed as an Associate. The value of Scope Global Pty Ltd is shown in the Statement of Financial Position under Investments.

Details of the investment in Scope Global is set out in Note 28.

The Minister for Employment, Higher Education and Skills has a 25% interest in SABRENet. SABRENet was registered on 28 September 2005 as a non-profit company limited by guarantee and has been recognised by the ATO as a tax exempt entity. The founding members are the three South Australian Universities and the South Australian Government. The objects for which the company was established are to be a non-profit institution to further the use of advanced data networking for the conduct of research and education in South Australia for the benefit of South Australia and for the purposes of economic and social advancement in Australia generally. While the Minister has significant influence over SABRENet, the Minister’s interest in SABRENet is limited to the Minister’s use of SABRENet’s asset (the network). That is, the Minister receives no return for its interest in SABRENet. SABRENet is not accounted for using the equity method as the Minister does not have access to the residual assets of the entity.

E) TRANSFERRED FUNCTIONS A major restructure resulted in the former Department for Manufacturing, Innovation, Trade, Resources and Energy being retitled the Department of State Development from 1 July 2014. Certain assets and liabilities were transferred to the Department of State Development as detailed in the next three paragraphs; The Public Sector (Reorganisation of Public Sector Operations) Notice 2014, (dated 15 June 2014) declared that the operations of the Department of Further Education, Employment, Science and Technology (DFEEST) were transferred to the Department of State Development effective 1 July 2014 (refer note 37).

P 75 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

The Public Sector (Reorganisation of Public Sector Operations) Notice 2014, (dated 15 June 2014) declared that the operational units of; Arts SA, Aboriginal Affairs and Reconciliation (AAR), Office of the Economic Development Board (OEDB) and Invest in SA, were transferred from the Department of the Premier and Cabinet (DPC) to the Department of State Development, effective 1 July 2014 (refer note 37). Under the Public Sector (Reorganisation of Public Sector Operations) Notice 2014, (dated 15 June 2014) declared that the operational unit of Health Industries South Australia was transferred from the Department of SA Health to the Department of State Development, effective 1 July 2014 (refer note 37).

Effective 8 September 2014, 80 staff transferred to TAFE SA as agreed between Chief Executives, pursuant to section 9 of the Public Sector Act 2009. The transfer of staff was to allow TAFE SA to establish its own ICT services (refer note 37).

F) BUDGETED AMOUNTS Budget information refers to the amounts presented to Parliament in the original budgeted financial statements in respect of the reporting period (2014-15 Budget Paper 4). These original budgeted amounts have been presented and classified on a basis that is consistent with line items in the financial statements. However, these amounts have not been adjusted to reflect revised budgets or administrative restructures / machinery of government changes. The budget process is not subject to audit.

G) COMPARATIVE INFORMATION The presentation and classification of items in the financial statements are consistent with prior periods except where specific accounting standards and / or accounting policy statements has required a change and only reflect the former Department for Manufacturing, Innovation, Trade, Resources and Energy as at 30 June 2014.

Where presentation or classification of items in the financial statements have been amended, comparative figures have been adjusted to conform to changes in presentation or classification in these financial statements unless impracticable.

The restated comparative amounts do not replace the original financial statements for the preceding period.

H) ROUNDING All amounts in the financial statements and accompanying notes have been rounded to the nearest thousand dollars ($’000).

I) TAXATION The department is not subject to income tax. The department is liable for payroll tax, fringe benefits tax, goods and services tax (GST), emergency services levy, land tax equivalents and local government rate equivalents.

Income, expenses and assets are recognised net of the amount of GST except: • when the GST incurred on a purchase of goods or services is not recoverable from the Australian Taxation Office, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item applicable; and • receivables and payables, which are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the Australian Taxation Office is included as part of receivables or payables in the Statement of Financial Position.

Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the Australian Taxation Office is classified as part of operating cash flows.

Unrecognised contractual commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to the Australian Taxation Office. If GST is not payable to, or recoverable from the Australian Taxation Office, the commitments and contingencies are disclosed on a gross basis.

J) EVENTS AFTER THE REPORTING PERIOD

Adjustments are made to amounts recognised in the financial statements, where an event occurs after 30 June and before the date the financial statements are authorised for issue, where those events provide information about conditions that existed at 30 June.

Note disclosure is made about events between 30 June and the date the financial statements are authorised for issue where the events relate to a condition which arose after 30 June and which may have a material impact on the results of subsequent years. Refer to Note 41.

K) INCOME Income is recognised to the extent that it is probable that the flow of economic benefits to the department will occur and can be reliably measured.

P 76 7 FINANCIAL STATEMENTS

Income has been aggregated according to its nature and has not been offset unless required or permitted by a specific accounting standard, or where offsetting reflects the substance of the transaction or other event.

The following are specific recognition criteria:

Revenues from SA Government Appropriations from program funding are recognised as revenues when the department obtains control over the funding. Control over appropriations is normally obtained upon receipt.

Fees and Charges Fees and charges are recognised as revenues upon invoice and mainly relate to mining and petroleum application fees, rentals, licences, and recharges to TAFE SA.

Commonwealth Revenues Commonwealth grants are recognised as revenues when the department obtains control over the funding. Control over grants is normally obtained upon receipt.

Recoveries The department recognises other revenues from the partial and full recovery of costs associated with the delivery of programs.

Administered - royalty receipts Royalty revenue relates to minerals and petroleum production and is collected pursuant to the Roxby Downs (Indenture Ratification) Act 1982, Whyalla Steel Works Act 1958, Mining Act 1971 and the Petroleum & Geothermal Energy Act 2000. Royalty revenue is recognised as income in the period the revenue relates to when the timing and value of the receipt is certain.

Net gain on non-current assets Income from the disposal of non-current assets is recognised when the control of the asset has passed to the buyer and has been determined by comparing proceeds with the carrying amount. When revalued assets are sold, the revaluation surplus is transferred to retained earnings.

Any gain / loss on disposal of non-current assets is recognised at the date control of the asset is passed to the buyer and is determined after deduction from proceeds of the asset at that time.

L) EXPENSES Expenses are recognised to the extent that it is probable that the flow of economic benefits from the department will occur and can be reliably measured.

Expenses have been aggregated according to their nature and have not been offset unless required or permitted by a specific accounting standard, or where offsetting reflects the substance of the transaction or other event.

The following are specific recognition criteria:

Employee benefit expenses Employee benefit expenses include all costs related to employment including wages and salaries, non-monetary benefits and leave entitlements. These are recognised when incurred.

Superannuation The amount charged to the Statement of Comprehensive Income represents the contributions made by the department to the superannuation plan in respect of current services of current departmental staff. The Department of Treasury and Finance centrally recognises the superannuation liability in the whole of government financial statements.

Depreciation and amortisation All non-current assets, having a limited useful life, are systematically depreciated / amortised over their useful lives in a manner that reflects the consumption of their service potential. Amortisation is used in relation to intangible assets such as software, while depreciation is applied to tangible assets such as property, plant and equipment.

Assets' residual values, useful lives and amortisation methods are reviewed and adjusted if appropriate, on an annual basis.

Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for prospectively by changing the time period or method, as appropriate, which is a change in accounting estimate.

P 77 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

Works of art controlled by the department have very long and indeterminate useful lives. Their service potential has not, in any material sense been consumed during the reporting period. Consequently, no depreciation has been recognised.

The value of leasehold improvements is amortised over the estimated useful life of each improvement, or the unexpired period of the relevant lease, whichever is shorter.

Land and non-current assets held for sale are not depreciated.

Depreciation / amortisation is calculated on a straight line basis over the estimated useful life of the following classes of assets as follows:

Class of asset Useful life (years)

Buildings 25-80

Leasehold Improvements Life of lease

Plant and Equipment 2-60

Intangibles/Software 3-10

Grants and subsidies Financial assistance is provided from State and Commonwealth funds. Proposals and applications for funding under various support programs and schemes are subject to specific guidelines and procedures issued by the department and the Commonwealth. There are several approval delegations dependent upon the level and nature of assistance provided.

For contributions payable, the contribution will be recognised as a liability and expense when the entity has a present obligation to pay the contribution and the expense criteria are met.

Payments to SA Government Payments to the SA Government relate to the return of surplus cash pursuant to the cash alignment policy and payments to the consolidated account for proceeds received from the sale of property.

M) CURRENT AND NON-CURRENT CLASSIFICATION Assets and liabilities are characterised as either current or non-current in nature. Assets and liabilities that are sold, consumed or realised as part of the normal operating cycle even when they are not expected to be realised within twelve months after the reporting date have been classified as current assets or current liabilities. All other assets and liabilities are classified as non-current.

Where asset and liability line items combine amounts expected to be realised within twelve months and more than twelve months, the department has separately disclosed the amounts expected to be recovered or settled after more than twelve months.

N) FINANCIAL ASSETS (INVESTMENTS) In accordance with AASB 139 other financial assets are classified into the following specified categories: financial assets 'at fair value through profit or loss', 'held-to-maturity' investments, 'available-for-sale' financial assets, and 'loans and receivables'. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

Available-for-sale financial assets Certain shares held are classified as being available-for-sale and are stated at fair value less impairment. In accordance with Accounting Policy Framework IV – Financial Assets and Liabilities, Treasury and Finance has approved the measurement of Scope Global Pty Ltd (formerly Austraining International Pty Ltd) by reference to the Equity Method prescribed by AASB 128 Investments in Associates, rather than measuring at historical cost. Gains and losses arising from changes in fair value are recognised directly in the financial assets available- for-sale revaluation surplus, until the investment is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in the financial assets available-for-sale revaluation surplus is included in profit or loss for the period. This category includes investments classified as ‘available-for-sale’ and any investments that do not fit the definitions for inclusion in any of the categories contained in AASB 139.

O) ASSETS Assets have been classified according to their nature and have not been offset unless required or permitted by a specific accounting standard, or where offsetting reflects the substance of the transaction or other event.

P 78 7 FINANCIAL STATEMENTS

Cash and cash equivalents Cash and cash equivalents in the Statement of Financial Position includes cash at bank and on hand. For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above. Cash is measured at its nominal value for Australian accounts while overseas accounts are measured using the exchange rate as per OANDA.com as at 30 June.

Receivables Receivables include amounts receivable from goods and services, GST input tax credits recoverable, prepayments and other accruals.

Receivables arise from the partial or full recovery of costs associated with the department's delivery of programs. Receivables are generally settled within 30 days after the issue of an invoice or the goods / services have been provided under a contractual arrangement.

Collectability of receivables is reviewed on an ongoing basis. An allowance for doubtful debts is raised when there is objective evidence that the department will not be able to collect the debt. Bad debts are written off when identified.

Financial assistance debtors Amounts outstanding with respect to financial assistance advances by way of loans are brought to account at their face value. A provision is made where recoverability of amounts is considered doubtful. Conditions relating to some forms of assistance provide that in certain circumstances, loans can be reduced, forgiven or converted to grants.

Non-current assets held for sale Non-current assets are classified as held for sale and stated at the lower of their carrying amount and fair value less costs to sell if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. The condition is regarded as met only when the sale is highly probable and the asset's sale is expected to be completed one year from the date of classification.

Non-current assets classified as held for sale are presented separately from the other assets in the Statement of Financial Position.

Non-current assets

Acquisition and recognition Non-current assets are initially recorded at cost, plus any incidental cost involved with the acquisition. Non-current assets are subsequently measured at fair value less accumulated depreciation.

Where assets are acquired at no value, or minimal value, they are recorded at fair value in the Statement of Financial Position.

However, if the assets are acquired at no or nominal value as part of a restructure of administrative arrangements then the assets are recognised at book value i.e. the amount recorded by the transferor public authority immediately prior to the restructure.

All non-current tangible assets with a value equal to or in excess of $10,000 are capitalised, with the exception of works of art. All works of art are capitalised irrespective of their value.

Revaluation of non-current assets All non-current tangible assets are valued at fair value and revaluation of non-current assets or group of assets is only performed when its fair value at the time of acquisition is greater than $1 million and estimated useful life is greater than three years.

Every five years, the department revalues its land, buildings, leasehold improvements, works of art, core library and energy distribution and generation assets via an independent Certified Practicing Valuer or internal estimates based on indices or recent transactions. A valuation appraisal by an independent Certified Practicing Valuer is performed at least every 6 years.

If at any time, management considers that the carrying amount of an asset materially differs from its fair value, then the asset will be revalued regardless of when the last valuation took place.

Any revaluation increment is credited to the asset revaluation surplus, except to the extent that it reverses a revaluation decrease of the same asset class previously recognised as an expense, in which case the increase is recognised as income. Any revaluation decrease is recognised as an expense, except to the extent that it offsets a previous revaluation increase for the same asset class, in which case the decrease is debited directly to the asset revaluation surplus to the extent of the credit balance existing in revaluations reserve for that asset class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amounts of the assets and the net amounts are restated to the revalued amounts of the asset.

Upon disposal or derecognition, any revaluation surplus relating to that asset is transferred to retained earnings.

Impairment All non-current tangible and intangible assets are tested for indication of impairment at each reporting date. Where there is an

P 79 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

indication of impairment, the recoverable amount is estimated. The recoverable amount is recognised as the higher of the asset’s fair value less costs of disposal or depreciated replacement cost. An amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss.

For revalued assets, an impairment loss is offset against the respective asset revaluation surplus.

Intangible assets An intangible asset is an identifiable non-monetary asset without physical substance. Intangible assets are measured at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.

The useful lives of intangible assets are assessed to be either definite or indefinite. The department only has intangible assets with definite lives. The amortisation period and the amortisation method for intangible assets is reviewed on an annual basis.

The acquisition of or internal development of software is capitalised only when the expenditure meets the definition criteria (identifiability, control and the existence of future economic benefits) and recognition criteria (probability of future economic benefits and cost can be reliably measured) and when the amount of expenditure is greater than or equal to $10 000.

All research and development costs that do not meet the capitalisation criteria outlined in AASB 138 are expensed.

Subsequent expenditure on intangible assets has not been capitalised. This is because the department has been unable to attribute this expenditure to the intangible asset rather than to the department as a whole.

Fair value measurement AASB 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, in the principal or most advantageous market, at the measurement date.

The department classifies fair value measurement using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements, based on the data and assumptions used in the most recent revaluation: • Level 1 - traded in active markets and is based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at measurement date. • Level 2 - not traded in an active market and are derived from inputs (inputs other than quoted prices included within level 1) that are observable for the asset, either directly or indirectly. • Level 3 - not traded in an active market and are derived from unobservable inputs.

Non-financial assets In determining fair value, the department has taken into account the characteristic of the asset (eg condition and location of the asset and any restrictions on the sale or use of the asset); and the asset's highest and best use (that is physically possible, legally permissible, financially feasible).

The department's current use is the highest and best use of the asset unless other factors suggest an alternative use is feasible. As the department did not identify any factors to suggest an alternative use, fair value measure was based on current use.

The carrying amount of non-financial assets with fair value at the time of acquisition that was less than $1 million or had an estimated useful life that was less than three year are deemed to approximate fair value.

Refer to Note 26, 27 and 29 for disclosure regarding fair value measurement techniques and inputs used to develop fair value measurements for non-financial assets.

P) LIABILITIES Liabilities have been classified according to their nature and have not been offset unless required or permitted by a specific accounting standard, or where offsetting reflects the substance of the transaction or other event.

Payables Payables include creditors, accrued expenses, GST payable, employment on-costs and the Paid Parental Leave Scheme payable.

Creditors represent the amounts owing for goods and services received prior to the end of the reporting period that are unpaid at the end of the reporting period. Creditors include all unpaid invoices received relating to the normal operations of the department.

Accrued expenses represent goods and services provided by other parties during the period that are unpaid at the end of the reporting period and where an invoice has not been received.

The Paid Parental Leave Scheme payable represents amounts which the department has received from the Commonwealth Government

P 80 7 FINANCIAL STATEMENTS

to forward on to eligible employees via the department's standard payroll processes. That is, the department is acting as a conduit through which the payment to eligible employees is made on behalf of the Family Assistance Office. All payables are measured at their nominal amount, are unsecured and are normally settled within 30 days from the date of the invoice or date the invoice is first received. Employee benefits on-costs include payroll tax, workers compensation and superannuation contributions in respect of outstanding liabilities for salaries and wages, long service leave, annual leave and skills and experience retention leave. The department makes contributions to several State Government and externally managed superannuation schemes. These contributions are treated as an expense when they occur. There is no liability for payments to beneficiaries as they have been assumed by the respective superannuation schemes. The only liability outstanding at reporting date relates to any contributions due but not yet paid to the South Australian Superannuation Board.

Leases The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement. The department has assessed whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset. The department has entered into operating leases in relation to office accommodation and motor vehicles for its administrative and operating activities. Operating lease payments are recognised as an expense in the Statement of Comprehensive Income on a straight-line basis over the lease term. The straight-line basis is representative of the pattern of benefits derived from the leased assets.

Financial guarantees At the time a financial guarantee contract is issued, it is recognised as a contingent liability as it is not expected that the guarantee will be called upon. If there is a material increase in the likelihood that the guanrantee may have to be exercised, the financial guarantee is measured at the highter of the amount determined by AASB 137 and the amount initially recognised less cumulative amortisation, where appropriate. In determination of fair value, consideration is given to the following factors: • the overall capital management/prudential supervision framework in operation • the protection provided by the State Government by way of funding should the probability of default increase • the probability of default by the guaranteed party • the likely loss to the department in the event of default

The department has reviewed its financial guarantees and determined that there is no material liability to be recognised for financial guarantee contracts as at 30 June 2015 (there was no material liability recognised for financial guarantee contracts in 2014). Whilst no liability has been recognised for financial guarantee contracts, further note disclosures relating to financial guarantees are contained at note 36.

Employee Benefits These benefits accrue for employees as a result of services provided up to the reporting date that remain unpaid. Long-term employee benefits are measured at present value and short-term employee benefits are measured at their nominal amounts.

Salaries and wages, annual leave, skills and experience retention leave and sick leave The liability for salaries and wages is measured as the amount unpaid at the reporting date at remuneration rates current at reporting date. The annual leave liability and the skills and experience retention leave liability is expected to be payable within twelve months and is measured at the undiscounted amount expected to be paid. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees is estimated to be less than the annual entitlement for sick leave.

Long service leave The liability for long service leave is measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The estimated liability for long service leave is based on actuarial assumptions over expected future salary and wage levels, experience of employee departures and periods of service. These assumptions are based on employee data over SA government entities.

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Expected future payments are discounted using market yields at the end of the reporting period on government bonds with durations that match, as closely as possible, the estimated future cash outflows.

The current portion of long service leave reflects the amount of long service leave expected to be taken in the next 12 months, based on historical data.

Provisions Provisions are recognised when the department has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

When the department expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the Statement of Comprehensive Income net of any reimbursement.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the reporting date. If the effect of the time value of money is material, provisions are discounted for the time value of money and the risks specific to the liability.

The workers compensation provision is an actuarial estimate of the outstanding liability as at 30 June 2015 provided by a consulting actuary engaged through the Office for the Public Sector of the Department of the Premier and Cabinet. The provision is for the estimated cost of ongoing payments to employees as required under current legislation.

The department is responsible for the payment of workers compensation claims.

Q) UNRECOGNISED CONTRACTUAL COMMITMENTS AND CONTINGENT ASSETS AND LIABILITIES Commitments include operating, capital and outsourcing arrangements arising from contractual or statutory sources and are disclosed at their nominal value.

Contingent assets and contingent liabilities are not recognised in the Statement of Financial Position, but are disclosed by way of a note and, if quantifiable, are measured at nominal value.

Unrecognised contractual commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to the Australian Taxation Office. If GST is not payable to, or recoverable from, the Australian Taxation Office, the commitments and contingencies are disclosed on a gross basis.

NOTE 3 NEW AND REVISED ACCOUNTING STANDARDS AND POLICIES

In accordance with the new AASB 1055 Budgetary Reporting, which became effective for the first time in 2014-15, the department has: • included a comprehensive new note ‘Budgetary reporting and explanations of major variances between budget and actual amounts’ (note 43). This note discloses, in respect of the Statement of Comprehensive Income and Investing Expenditure Summary for both controlled and administered amounts: -- the department’s original budget as published in Budget Paper 4 -- a comparison of the original budget information to actual results -- explanations of major variances.

In accordance with the new AASB 10 Consolidated Financial Statements and AASB 11 Joint Arrangements, which became effective for the first time in 2014-15, the department has reviewed its control assessments (ie the department’s involvement with the entity; protective and substantive rights; ability to direct major relevant activities etc) in accordance with AASB 10 and its classification assessments in accordance with AASB 11 and has concluded that there is no impact. The department does not currently control another entity and does not have any joint arrangements within the scope of AASB 11.

The department will continue to review its involvement and arrangements with entities it is connected with to determine the impact of AASB 10 and 11 for future years.

Except for AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit Public Sector Entities: which the department has early adopted, Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective, have not been adopted by the department for the period ending 30 June 2015. The department has assessed the impact of the new and amended standards and interpretations and considers there will be no impact on the accounting policies or the financial statements of the department.

P 82 7 FINANCIAL STATEMENTS

NOTE 4 ACTIVITIES OF THE DEPARTMENT

The department has identified 14 broad activities that reflect the nature of the services delivered to the South Australian community. The activities and their objectives of the department are:

ACTIVITY 1: EMPLOYMENT AND SKILLS FORMATION This activity is to strengthen the economic prosperity and social wellbeing of South Australians through: • strategic employment, skills formation and workforce development • implementing the Jobs and Skills Policy.

ACTIVITY 2: SCIENCE, TECHNOLOGY AND INFORMATION ECONOMY This activity is to provide the government with a strategic and coordinated focus in science, technology and information economy policy development and program delivery, supporting better linkages between research institutions and industry, to support state productivity.

ACTIVITY 3: LIBRARY AND INFORMATION SERVICES This activity is for the provision of information from library and resource centres to the public, industry and government agencies, and funding of services provided by Public Library Services to public libraries.

ACTIVITY 4: ACCESS TO ART, MUSEUM AND HERITAGE SERVICES AND PRESERVATION OF STATE COLLECTIONS This activity is for the provision of museum, visual arts and preservation services that enable the state’s cultural, heritage and arts assets to be maintained and kept accessible to the community.

ACTIVITY 5: ARTS INDUSTRY DEVELOPMENT AND ACCESS TO ARTISTIC PRODUCT This activity is for the provision of services that enhance opportunities for artists, cultural tourism, festivals and events and provide for productions, exhibitions, tours and events to the community.

ACTIVITY 6: ECONOMIC DEVELOPMENT This activity supports the development and implementation of the state's economic strategy.

ACTIVITY 7: MINERAL RESOURCES AND ENERGY This activity supports the vision of the mineral resources and energy development program to continue South Australia's reputation as a leading mineral investment destination. It includes managing the state's mineral and energy resources, delivering the Plan for Accelerating Exploration (PACE 2020) programs, facilitating the South Australian and Commonwealth Governments' interaction with BHP Billiton for the approval of the Olympic Dam expansion, providing policy advice and coordination of energy market reforms and enforcement of energy related technical and safety regulation.

ACTIVITY 8: OPPORTUNITIES FOR SMALL BUSINESS This activity supports small businesses to establish, grow and be sustainable, complemented by the role of the Small Business Commissioner. It includes provision of online self-help tools, resources and information, along with targeted business development training and workshops. It also includes a telephone support and referral service and advice and support for business licensing.

ACTIVITY 9: WATER INDUSTRY TECHNICAL AND SAFETY REGULATION This activity supports the enforcement, compliance and protection of technical and safety regulation of plumbing and equipment.

ACTIVITY 10: ABORIGINAL AFFAIRS AND RECONCILIATION This activity is to empower Aboriginal people to have a stronger voice in decisions that affect their lives and provides leadership in the promotion of effective governance arrangements. The department provides whole of government policy advice and leadership; supports engagement with Aboriginal stakeholders including through the provision of culturally appropriate advice to government; facilitates the protection and preservation of Aboriginal heritage and culture; and supports the state’s Aboriginal land holding authorities.

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ACTIVITY 11: GLOBALLY INTEGRATING THE SA ECONOMY This activity supports sustainable economic growth by building on South Australia’s competitive advantages. It includes facilitating investment, account management of key businesses, case management of major projects across the state, trade and population and migration.

ACTIVITY 12: MANUFACTURING AND INNOVATION This activity will assist the development and improve the efficiency and international competitiveness of South Australian manufacturers, by driving and encouraging research and development, investment in innovation and capability development.

ACTIVITY 13: AUTOMOTIVE TRANSFORMATION This activity will support companies operating within the supply chain to successfully diversify and secure alternate revenue streams to drive sustainable growth, long-term employment and potential for export revenues.

ACTIVITY 14: HEALTH INDUSTRIES SA This activity increases investment and employment in South Australia’s health and biomedical sector to achieve the government’s vision for the state to become a globally recognised leader in health research, ageing and related services and products.

The disaggregated disclosure schedules present expenses, income, assets and liabilities information attributable to each of these activities for the years ended 30 June 2015 and 30 June 2014. The activities of the department are consistent with those reported in the 2014-15 Budget papers.

NOTE 5 EMPLOYEE BENEFITS EXPENSE

Note 2015 2014 $’000 $’000

Salaries and wages 83,601 42,112 TVSPs (refer below) 4,332 2,958 Long service leave 4,655 1,951 Annual leave 7,281 3,668 Skills and experience retention leave 647 188 Employment on-costs - superannuation 10,043 4,782 Employment on-costs - other 5,619 2,777 Board fees 38 1,326 244

Total employee benefits expense 117,504 58,680

Targeted voluntary separation packages (TVSPs) and early terminations 2015 2014 $’000 $’000

Amount paid during the reporting period to these employees:

TVSPs 4,332 2,958 Early terminations - 501 Annual leave, LSL and SERL paid to those employees 1,305 1,181 Employment on-costs (payroll tax and Shared Services SA processing fees) 134 123 5,771 4,763

Recovery from the Department of Treasury and Finance (3,861) (3,636)

Net cost to the department 1,910 1,127

The number of employees who received a TVSP or early termination payment during 2014-15 was 36 (28).

The recovery from the Department of Treasury and Finance of $3.861 million ($3.636 million) is reflected in the financial statements as Revenues from SA Government.

P 84 7 FINANCIAL STATEMENTS

REMUNERATION OF EMPLOYEES The number of employees whose remuneration received or receivable falls within the following bands:

2015 2014 Number of employees Number of employees

$141,500 - $151,499 10 12 $151,500 - $161,499 10 6 $161,500 - $171,499 6 3 $171,500 - $181,499 12 4 $181,500 - $191,499 11 8 $191,500 - $201,499 5 7 $201,500 - $211,499Δ 6 3 $211,500 - $221,499Δ 5 1 $221,500 - $231,499 6 1 $231,500 - $241,499 2 - $241,500 - $251,499 2 - $251,500 - $261,499 1 1 $261,500 - $271,499 2 1 $271,500 - $281,499 1 - $281,500 - $291,499 - 1 $291,500 - $301,499 2 1 $301,500 - $311,499 2 2 $311,500 - $321,499 1 - $321,500 - $331,499 ΔO 2 2 $341,500 - $351,499 - 1 $371,500 - $381,499 2 - $381,500 - $391,499 Δ 1 1 $451,500 - $461,499 O - 2 $461,500 - $471,499 O - 1 $571,500 - $581,499 Δ 1 -

Total number of employees 90 58

Δ This bandwidth includes employees that have received TVSP and (or) termination payments in 2014-15.

O This bandwidth includes employees that have received TVSP and (or) termination payments in 2013-14.

The table includes all employees who received remuneration equal to or greater than the base executive remuneration level during the year. Remuneration of employees reflects all costs of employment including salaries and wages, TVSPs / early terminations, superannuation contributions, fringe benefits tax and any other salary sacrifice benefits. The total remuneration received by these employees for the year was $18.757 million ($12.265 million).

The TRVP is inclusive of superannuation, salary and other non-monetary benefits and does not necessarily represent the actual monetary payments made to the employee.

The increase in employees is mainly due to employees transferring to the department as a result of the restructures occurring.

P 85 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

NOTE 6 SUPPLIES AND SERVICES

Note 2015 2014 $’000 $’000

Accommodation and service costs 17,808 6,036 Accounting and audit fees 11 405 314 Communications and information technology 12,162 4,726 Contractors 13,569 7,224 Consultancies (refer below) 4,583 5,864 Corporate Services recharges to TAFE SA 530 - Energy supply fuel and lubricants 6,488 7, 851 Lease incentive amortisation 33 (240) (240) Marketing 1,858 1,300 Office administration expenses 9,086 6,099 Overseas trade representation (1) 676 360 Remote areas energy supplies (RAES) 1,945 3,997 Shared service fees (2) 3,830 2,443 Staff related expenses 2,266 1,575 Travel and related expenses 4,945 3,290 Trainee & apprenticeship reimbursements 4,353 -

Total supplies and services 84,264 50,839

The total supplies and services amount disclosed includes GST amounts not recoverable from the ATO due to the department not holding a tax invoice or payments related to third party arrangements.

(1) Represents payments made to trade organisations relating to activities promoting South Australia.

(2) Represents payments to the Department of Planning, Transport and Infrastructure, Department of Primary Industries and Regions SA and the Department of the Premier and Cabinet for the provision of corporate support and project management services.

The number and dollar amount of consultancies paid / payable (included in supplies and services expense) that fell within the following bands:

Number 2015 Number 2014 $’000 $’000

Below $10,000 32 148 27 157 Equal or above $10,000 72 4,435 72 5,707

Total paid / payable to the consultants engaged 104 4,583 99 5,864

NOTE 7 VOCATIONAL EDUCATION TRAINING FUNDING

2015 2014 $’000 $’000

Funding to TAFE SA for Vocational Education Training 161,188 - Funding to other providers for Vocational Education Training 79,587 -

Total Vocational Education Training funding 240,775 -

The Vocational Education Training Program transferred from the former DFEEST to DSD as at 1 July 2014.

P 86 7 FINANCIAL STATEMENTS

NOTE 8 DEPRECIATION AND AMORTISATION EXPENSES

2015 2014 $’000 $’000

Depreciation Plant and equipment 2,864 929 Buildings and leasehold improvements 26,755 853

Total depreciation 29,619 1,782

Amortisation Intangible / software 2,063 277

Total amortisation 2,063 277

Total depreciation and amortisation expense 31,682 2,059

NOTE 9 GRANTS AND SUBSIDIES

2015 2014 $’000 $’000

Class of assistance Arts and Cultural 127,625 - TAFE SA 67,676 - Skills and Employment 56,994 - Resources and Energy 15,195 12,391 Industry and Innovation 9,513 11,163 Investment, Trade and Immigration 5,905 128 Aboriginal Affairs and Reconciliation 5,165 - Other 918 1,164

Total grants and subsidies 288,991 24,846

Further details of the Arts and Cultural grant recipients are as follows:

2015 2014 $’000 $’000

Libraries Board of South Australia 33,888 - Adelaide Festival Centre Trust 17,098 - Art Gallery Board 12,349 - Museum Board 11,071 - Arts industry assistance 10,429 - Adelaide Festival Corporation 8,207 - History Trust of South Australia 5,327 - Country Arts SA 5,054 - South Australian Film Corporation 4,760 - Arts Project assistance 2,772 - State Theatre Company of South Australia 2,507 - Adelaide Symphony Orchestra 2,501 - Adelaide Fringe 1,685 - State Opera of South Australia 1,551 - Australian Dance Theatre 1,226 - Jam Factory of Contemporary Craft and Design 1,204 -

P 87 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

NOTE 9 GRANTS AND SUBSIDIES CONTINUED

2015 2014 $’000 $’000

Adelaide Film Festival 1,129 - The Australian Children’s Performing Arts Company 1,102 - Tandanya 1,092 - Carrick Hill Trust 925 - Disability Information & Resource Centre (DIRC) 100 - Other grants and subsidies 1,648 -

Total Arts and Cultural grants 127,625 -

NOTE 10 OTHER EXPENSES

2015 2014 $’000 $’000

TVSP reimbursement to TAFE SA 3,445 - Bad and doubtful debts 479 1,232 Asset write-down - 110 Donated assets 2,197 - Revaluation decrement - Land and buildings held for sale 2,690 - Other 42 -

Total other expenses 8,853 1,342

The donated assets include $1.335 million of plant and equipment assets transferred to TAFE SA.

NOTE 11 AUDITOR’S REMUNERATION

2015 2014 $’000 $’000

Audit fees paid / payable to the Auditor-General's Department relating to the audit of the 401 172 financial statements

Total audit fees 401 172

No other services were provided by the Auditor-General’s Department.

Auditor’s remuneration costs are recognised in the Statement of Comprehensive Income and included in the balance of accounting and audit fees (refer note 6).

NOTE 12 OVERSEAS REPRESENTATIVE OFFICES

The following table provides a summary of the financial transactions for the reporting period for overseas offices, where the department funds their operations. The transactions relating to operating expenses and operating revenues have been included in the financial statements.

The costs relating to overseas representation provided through Austrade are not included in the table below. These costs are included in the balance of Overseas trade representation (refer note 6).

P 88 7 FINANCIAL STATEMENTS

China 2015 Total 2014 Total $’000 $’000 $’000

Operating expenses 386 386 492 Operating revenues - - 30 Funds advanced to overseas offices towards operating expenses 396 396 437

Shanghai office in China was officially closed on 30 June 2013 and post-closure activities have been finalised and funds repatriated to the department in July 2014.

The financial year ended 30 June 2015 includes residual costs relating to the Shanghai office closure and full year costs for the Jinan office.

NOTE 13 REVENUES FROM FEES AND CHARGES

2015 2014 $’000 $’000

Infrastructure recharge to TAFE SA 23,753 - Corporate services recharge to TAFE SA 2,341 - Mining and petroleum application fees, rentals and licences 21,497 21,585 Rental income 6,421 - Arts industry related fees 1,835 - Fees for services 4,213 - Contract administration 776 - Other 319 -

Total revenues from fees and charges 61,155 21,585

NOTE 14 TECHNICAL REGULATION

2015 2014 $’000 $’000

Technical regulation - gas and electricity technical regulation and electricity 6,667 6,384 emergency management

Total technical regulation 6,667 6,384

Fees for technical regulation includes license fees on energy industry bodies, which are determined by the Minister for Mineral Resources and Energy and levied by the Essential Services Commission of South Australia.

NOTE 15 SALE OF ELECTRICITY

2015 2014 $’000 $’000

Sale of electricity - remote areas 4,126 4,630

Total sale of electricity 4,126 4,630

The sale of electricity revenue is electricity tariff charges to customers within the Remote Areas Energy Supplies (RAES) scheme.

P 89 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

NOTE 16 COMMONWEALTH REVENUES

2015 2014 $’000 $’000

Grants National Partnership Agreement on Skills Reform 32,020 - TAFE Fee Waivers for Childcare Qualifications 1,841 - Joint Group Training Program 919 - National Energy Efficiency Buildings 278 424 Tradestart 264 321 Community Education Partnerships - Artists in Residence Initiative 2015 250 - Municipal and Essential Services - Murputja and Watarru Power Station Fuel Contribution 181 181 Remote Indigenous Public Internet Access 155 - Supplier Access to Major Projects Program - Domain Specialist - Water 114 204 Street Lighting Energy Efficiency Program 16 48 Anangu Pitjantjatjara Yankunytjatjara (APY) Lands Regional Procurement Strategy 7 72 Supplier Access to Major Projects Program - Australian Water Access to USA - California - 105 High Performance Workplaces - 70

Total Commonwealth revenues 36,045 1,425

2014-15 COMMITMENTS $32.0 million in Commonwealth revenue was received for the National Partnership Agreement on Skills Reform in 2014-15. All revenue was fully spent in 2014-15 as part of the Skills for All initiative.

$0.9 million in Commonwealth revenue was received for the Joint Group Training Program in 2014-15. An acquittal will be undertaken in August 2015 and it is possible that a carry-over will be sought to fund 2015-16 commitments.

$0.2 million in Commonwealth revenue was received for the Remote Indigenous Public Internet Access program in 2014-15. Of this amount, $0.1 million was not spent and a carry-over will be sought to fund 2015-16 commitments.

$1.8 million in Commonwealth revenue was received for the National Partnership Agreement on Child Care Fee Waiver Qualifications in 2014-15. An acquittal will be undertaken in August 2015 and it is possible that a carry-over will be sought to fund 2015-16 commitments.

NOTE 17 INTEREST AND INVESTMENT REVENUES

2015 2014 $’000 $’000

Interest revenues 23 6 Dividends received 405 -

Total interest and investment revenues 428 6

NOTE 18 RESOURCES RECEIVED FREE OF CHARGE

2015 2014 $’000 $’000

Donated assets 1,021 -

Total resources received free of charge 1,021 -

Resources received free of charge includes land and buildings at Croydon Park of $0.980 million.

P 90 7 FINANCIAL STATEMENTS

NOTE 19 NET GAIN / LOSS FROM THE DISPOSAL OF NON-CURRENT ASSETS

2015 2014 $’000 $’000

Land and buildings Proceeds from disposal 16,019 - Less: net book value of assets disposed (17,361) -

Total land and buildings (1,342) -

Plant and equipment: Proceeds from disposal 16 6 Less: net book value of assets disposed (330) (18)

Total plant and equipment (314) (12)

Total net loss from disposal of non-current assets (1,656) (12)

Land and building assets disposed during 2014-15 include land and buildings that were sold from the sustainable infrastructure project.

The net loss on the disposal of land and buildings relates to assets that were held for sale in the former DFEEST as at 30 June 2014.

NOTE 20 OTHER REVENUES

2015 2014 $’000 $’000

Fuel tax credits 1,487 1,623 Management of Extractive Areas Rehabilitation Fund 558 449 Sponsorship revenues 1,451 21 Recoveries 8,082 5,093 Community Development Fund 1,250 - Other revenues 1,947 -

Total other revenues 14,775 7,186

NOTE 21 REVENUES FROM / PAYMENTS TO SA GOVERNMENT

2015 2014 $’000 $’000

Revenues from SA Government: Appropriations from Consolidated Account pursuant to the Appropriation Act 627,978 92,031 Appropriations from the Governer Appropriation Fund pursuant to the Public Finance and Audit Act 36,360 - Appropriations under other Acts 16,325 4,033 Accrual Appropriation 6,057 -

Total revenues from SA Government 686,720 96,064

Payments to SA Government: Return of surplus cash pursuant to cash alignment policy 6,379 1,109 Payments to consolidated account for sale of property 8,482 -

Total payments to SA Government 14,861 1,109

P 91 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

Total revenues from Government consists of $633.925 million ($87.056 million) for operational funding and $30.413 million ($4.975 million) for capital projects.

In addition, an advance of $16.325 million ($4.033 million) was received pursuant to Treasurer's contingency. Contingency appropriation in 2014-15 included $3.228 million for Remote Areas Energy scheme-fuel cost adjustment, $3.417 million for Netley commercial park sale and lease back, $7.306 million for TVSP reimbursement (including $3.445 million for TAFE SA). The remaining $2.374 million are related to additional expenditure approved during 2014-15 including enterprise bargaining supplementation.

Payments were made to SA Government in relation to the sale of property for the sustainable infrastructure projects.

NOTE 22 CASH AND CASH EQUIVALENTS

2015 2014 $’000 $’000

Deposits with the Treasurer – Operating Account 161,982 18,189 Deposits with the Treasurer – Accrual Appropriation 10,034 4,021 Deposits at call - overseas offices 205 281 Other 4 2

Total cash and cash equivalents 172,225 22,493

DEPOSITS WITH TREASURER – OPERATING ACCOUNT Includes cash securities held for mining remediation of $4.407 million ($5.877 million). The department only has claims to these funds if the licensee fails to perform its legislative requirements (refer note 33).

DEPOSITS WITH TREASURER – ACCRUAL APPROPRIATION This balance relates to funds held in the Accrual Appropriation Excess Funds Account. The balance of these funds is not available for general use, i.e. funds can only be used in accordance with the Treasurer's / Under Treasurer's approval.

INTEREST RATE RISK Cash on hand is non-interest bearing. Deposits at call and with the Treasurer earn a floating interest rate, based on daily bank deposit rates. The carrying amount of cash represents nominal value.

P 92 7 FINANCIAL STATEMENTS

NOTE 23 RECEIVABLES

2015 2014 $’000 $’000

Current Receivables 9,217 2,213 Allowance for doubtful debts (657) (103) GST input tax recoverable 3,667 859 Prepayments 473 276 Accrued revenue 20,182 1,721 Other receivables 168 -

Total current receivables 33,050 4,966

Total receivables 33,050 4,966

MOVEMENT IN THE ALLOWANCE FOR DOUBTFUL DEBTS The allowance for doubtful debts (allowance for impairment losses) is recognised when there is objective evidence (i.e. calculated on past experience and current and expected changes in client credit rating) that a receivable is impaired.

An allowance for impairment loss has been recognised in 'Other expenses' in the Statement of Comprehensive Income for specific debtors and debtors assessed on a collective basis for which such evidence exists.

2015 2014 $’000 $’000

Movements in the allowance for doubtful debts (impairment loss): Carrying amount at the beginning of the period (103) (56) Increase/(decrease) in allowance due to restructure activities (104) - Increase in the allowance (476) (88) Amounts written off 26 41

Carrying amount at the end of the period (657) (103)

INTEREST RATE AND CREDIT RISK

Receivables are raised for all goods and services provided for which payment has not been received. Receivables are normally settled within 30 days. Trade receivables and accrued revenues are non-interest bearing.

Other than as recognised in the allowance for doubtful debts, it is not anticipated that counterparties will fail to discharge their obligations. The carrying amount of receivables approximates net fair value due to being receivable on demand. There is no concentration of credit risk. a. Maturity analysis of receivables - refer to table in Note 44. b. Categorisation of financial instruments and risk exposure information- refer to Note 44.

P 93 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

NOTE 24 FINANCIAL ASSISTANCE DEBTORS

2015 2014 $’000 $’000

Current Financial assistance debtors 1,199 1,225 Less allowance for doubtful debts (1,198) (1,209)

Total current financial assistance debtors 1 16

Total financial assistance debtors 1 16

2015 2014 $’000 $’000

Movements in the allowance for doubtful debts (impairment loss): Carrying amount at the beginning of the period (1,209) (24) Increase in the allowance - (1,187) Amounts recovered during the year - 2 Amounts written off 11 -

Carrying amount at the end of the period (1,198) (1,209)

INTEREST RATE AND CREDIT RISK Receivables are raised for all goods and services provided for which payment has not been received. Receivables are normally settled within 30 days. Trade receivables and accrued revenues are non-interest bearing.

Other than as recognised in the allowance for doubtful debts, it is not anticipated that counterparties will fail to discharge their obligations. The carrying amount of receivables approximates net fair value due to being receivable on demand. There is no concentration of credit risk. a. Maturity analysis of receivables - refer to the table in Note 44. b. Categorisation of financial instruments and risk exposure information- refer to Note 44.

NOTE 25 NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE

2015 2014 $’000 $’000

Land and buildings 30,011 7,500

Total non-current assets classified as held for sale 30,011 7,500

VALUATION OF ASSETS HELD FOR SALE Properties classified as held for sale, transferred on restructure, were valued in accordance with the principles outlined in the note 2(O).

2015 2014 $’000 $’000

Movements in the non-current assets classified as held for sale: Carrying amount at the beginning of the financial year 7,500 - Net assets transferred as a result of an administrative restructure 41,090 - Assets reclassified to assets held for sale 1,472 7,500 Disposals/transfers (17,361) - Revaluation increment / decrement (2,690) -

Carrying amount at the end of the financial year 30,011 7,500

P 94 7 FINANCIAL STATEMENTS

NOTE 26 PROPERTY, PLANT AND EQUIPMENT

2015 2014 $’000 $’000

Plant and equipment Plant and equipment at cost (deemed fair value) 7,289 4,306 Plant and equipment at fair value 10,391 10,391 Accumulated depreciation (5,632) (3,070)

Total plant and equipment 12,048 11,627

Building and leasehold improvements Buildings and leasehold improvements at fair value 786,502 8,292 Accumulated depreciation (26,755) (1)

Total buildings and leasehold improvements 759,747 8,291

Land Land at fair value 172,226 2,562

Total land 172,226 2,562

Works of art Works of art at fair value 5,240 105

Total works of art 5,240 105

Capital works in progress Works in progress at cost 12,612 1,796

Total capital works in progress 12,612 1,796

Total property, plant and equipment 961,873 24,381

VALUATION OF WORKS OF ART The valuation of works of art for the former DMITRE only, was performed by Theodore Bruce, an independent valuer, as at 9 May 2013. The valuer arrived at fair value based on recent market transaction for similar items.

The value of assets transferred on restructure are held at fair value based on the book value recorded by the transferor agency immediately prior to the transfer.

VALUATION OF LAND AND BUILDINGS The valuation of land and buildings for the former DMITRE only, was performed by a independent Certified Practicing Valuer from Liquid Pacific Pty Ltd, as at 30 June 2014.

The valuer arrived at fair value using the market approach. The valuation was based on recent market transactions for similar land and buildings (non-specialised) in the area and includes adjustments for factors specific to the land and building being valued such as size, location and current use.

The valuer used depreciated replacement cost for specialised buildings, due to there not being an active market for such buildings. The depreciated replacement cost considered the need for ongoing provision of government services; specialised nature of the assets, including the restricted use of assets; size, condition, location and current use of the assets. The valuation was based on a combination of internal records, specialised knowledge and the acquisition / transfer costs.

The value of assets transferred on restructure are held at fair value based on the book value recorded by the transferor agency immediately prior to the transfer.

P 95 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

RECONCILIATION OF PROPERTY, PLANT AND EQUIPMENT The following table shows the movement of property, plant and equipment assets during 2014-15

Plant and Building / Land Works Work in Total equipment leasehold $’000 of art progress $’000 $’000 improvements $’000 $’000 $’000

Carrying amount at the beginning of the financial year 11,627 8,291 2,562 105 1,796 24,381 Additions 374 43 8,654 4 20,537 29,612 Capitalisation - 30,135 - - (30,135) - Disposals (330) - - - - (330) Donated Assets (1,336) (599) - - (262) (2,197) Revaluation increment / (decrement) - - 430 - - 430 Depreciation and amortisation (2,864) (26,755) - - - (29,619) Net assets transferred as a result of an 4,563 748,605 161,072 5,131 20,676 940,047 administrative restructure Assets received free of charge 14 419 588 - - 1,021 Assets reclassified to assets held for sale - (392) (1,080) - - (1,472)

Carrying amount at the end of the 12,048 759,747 172,226 5,240 12,612 961,873 financial year

RECONCILIATION OF PROPERTY, PLANT AND EQUIPMENT ASSETS The following table shows the movement of property, plant and equipment assets during 2013-14

Plant and Building / Land Works Work in Total equipment leasehold $’000 of art progress $’000 $’000 improvements $’000 $’000 $’000

Carrying amount at the beginning of the financial year 10,344 10,150 9,023 105 103 29,725 Additions 313 - - - 2,074 2,387 Capitalisation - 381 - - (381) - Disposals/transfers (18) - - - - (18) Revaluation increment/(decrement) 1,917 1,198 (1,436) - - 1,679 Asset write-down - (110) - - - (110) Depreciation and amortisation (929) (853) - - - (1,782) Assets reclassified to assets held for sale - (2,475) (5,025) - - (7,500)

Carrying amount at the end of the 11,627 8,291 2,562 105 1,796 24,381 financial year

P 96 7 FINANCIAL STATEMENTS

NOTE 27 INTANGIBLE ASSETS

2015 2014 $’000 $’000

Internally developed computer software 16,308 1,993 Accumulated amortisation (3,418) (1,850) Other computer software 1,792 1,548 Accumulated amortisation (1,392) (984) Intangibles work in progress 1,070 -

Total intangible assets 14,360 707

The department has no contractual commitments for the acquisition of intangible assets.

IMPAIRMENT There were no indications of impairment of intangible assets at 30 June 2015.

RECONCILIATION OF INTANGIBLE ASSETS The following table shows the movement of intangible assets during 2014-15

Intangibles / Intangibles Total Software Work in progress $’000 $’000 $’000

Carrying amount at the beginning of the financial year 707 - 707 Additions - 3,034 3,034 Capitalisation 2,749 (2,749) - Transfers - (148) (148) Depreciation and amortisation (2,063) - (2,063) Net assets transferred as a result of an administrative restructure 11,897 933 12,830

Carrying amount at the end of the financial year 13,290 1,070 14,360

The following table shows the movement of intangible assets during 2013-14

Intangibles / Intangibles Total Software Work in progress $’000 $’000 $’000

Carrying amount at the beginning of the financial year 936 - 936 Additions 48 - 48 Depreciation and amortisation (277) - (277)

Carrying amount at the end of the financial year 707 - 707

P 97 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

NOTE 28 INVESTMENTS

2015 2014 $’000 $’000

Contributed capital in subsidiary company 400 - Share of retained profit 100% -

Retained profits attributable to subsidiary company: Net assets transferred as a result of an administrative restructure 6,103 - Share of operating profit/(loss) after income tax 381 -

Total investments as at 30 June 6,484 -

SCOPE GLOBAL PTY LTD Scope Global Pty Ltd (formerly Austraining International Pty Ltd), which has a reporting date of 30 June, is controlled by the Minister for Employment, Higher Education and Skills. Its principal activity is to secure international contracts for work in vocational education and training.

The current investment value is an estimate of fair value and is based on unaudited financial statements as at 30 June 2015.

NOTE 29 FAIR VALUE MEASUREMENT

The fair value of non-financial assets must be estimated for recognition and measurement or for disclosure purposes. The department categorises non-financial assets measured at fair value into hierarchy based on the level of inputs used in measurement.

Fair value measurements recognised in the Statement of Financial Position are categorised into the following levels at 30 June 2015.

The department had no valuations categorised into level 1.

Fair value measurements at 30 June 2015

Note Level 2 Level 3 Total $’000 $’000 $’000

Recurring fair value measurements Land 26 161,508 10,718 172,226 Plant and equipment 26 - 12,048 12,048 Buildings and leasehold improvements 26 2,297 757,450 759,747 Works of art 26 5,083 157 5,240

Total recurring fair value measurements 168,888 780,373 949,261

Non-recurring fair value measurements Land and buildings held for sale* 25 30,011 - 30,011

Total non-recurring fair value measurements 30,011 - 30,011

Total fair value measurements 198,899 780,373 979,272

P 98 7 FINANCIAL STATEMENTS

Fair value measurements at 30 June 2014

Note Level 2 Level 3 Total $’000 $’000 $’000

Recurring fair value measurements Land 26 2,562 - 2,562 Plant and equipment 26 - 11,627 11,627 Buildings and leasehold improvements 26 667 7,624 8,291 Works of art 26 - 105 105

Total recurring fair value measurements 3,229 19,356 22,585

Non-recurring fair value measurements Land and buildings held for sale* 25 7,500 - 7,500

Total non-recurring fair value measurements 7,500 - 7,500

Total fair value measurements 10,729 19,356 30,085

* Land and buildings held for sale are recorded at market value based on the sales contract.

There were no transfers of assets between level 1 and 2 fair value hierarchy levels in 2015. The department's policy is to recognise transfers into and out of fair value hierarchy levels as at the end of the reporting period.

VALUATION TECHNIQUES AND INPUTS Valuation techniques used to derive level 2 and 3 fair values are at note 26 and 27. There were no changes in valuation techniques during 2015. The following table is a reconciliation of fair value measurements using significant unobservable inputs (level 3).

Reconciliation of fair value measurements – Level 3

Plant and Building and Land Works of Total equipment leasehold $’000 art $’000 $’000 improvements $’000 $’000

Opening balance at 1 July 2014 11,627 7,624 - 105 19,356 Acquisitions 374 43 - 3 420 Capitalised subsequent expenditure - 30,135 - - 30,135 Disposals (330) - - - (330) Donated assets (1,336) (599) - - (1,935) Acquisitions/(disposal) through administrative restructure 4,563 747,328 10,718 49 762,658 Assets received free of charge 14 27 - - 41 Transfer out of level 3 - (392) - - (392)

Closing balance at 30 June 2015 14,912 784,166 10,718 157 809,953

Gains/(losses) for the period recognised in net result: Depreciation and amortisation (2,864) (26,716) - - (29,580)

(2,864) (26,716) - - (29,580)

Gains/(losses) for the period recognised in other comprehensive income: Revaluation increment/decrement - - - - -

- - - - -

Carrying amount at 30 June 2015 12,048 757,450 10,718 157 780,373

The reconciliation of movements for the level 3 assets is provided in Note 26. The impact on 2013-14 net result was the depreciation and amortisation expense as disclosed.

P 99 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

NOTE 30 PAYABLES

2015 2014 $’000 $’000

Current Creditors and accrued expenses 118,991 11,562 Employee on-costs 2,598 1,030

Total current payables 121,589 12,592

Non-Current Employee on-costs 2,121 595

Total non-current payables 2,121 595

Total payables 123,710 13,187

As a result of an actuarial assessment performed by the Department of Treasury and Finance, the proportion of long service leave taken as leave has decreased to 37% from the 2014 rate of 40% and the average factor for the calculation of employer superannuation cost on-cost has remained at the 2014 rate of 10.3%. These rates are used in the employment on-cost calculation. The change results in a decrease of $0.081 million on the employee on-costs. The impact on 2016 and future years cannot be reliably estimated.

INTEREST RATE AND CREDIT RISK Creditors and accruals are raised for all amounts due but unpaid. Sundry creditors are normally settled within 30 days.

Employment on-costs are settled when the respective employee benefit that they relate to is discharged. All payables are non-interest bearing. The carrying amount of payables represents fair value due to the amounts being payable on demand.

NOTE 31 EMPLOYEE BENEFITS

2015 2014 $’000 $’000

Current Accrued salaries and wages 666 174 Annual leave 7,718 3,960 Long service leave 1,536 2,711 Skills and experience retention leave 607 61

Total current employee benefits 10,527 6,906

Non-current Long service leave 23,535 9,222 Skills and experience retention leave 209 209

Total non-current employee benefits 23,744 9,431

Total employee benefits 34,271 16,337

AASB 119 contains the calculation methodology for the long service leave liability. The actuarial assessment performed by the Department of Treasury and Finance has provided a basis for the measurement of long service leave.

AASB 119 requires the use of the yield on long-term Commonwealth Government bonds as the discount rate in the measurement of long service leave liability. The yield on long-term Commonwealth Government bonds has decreased from 2014 (3.50%) to 2015 (3.00%). The decrease in the bond yield, which is used as the rate to discount future long service leave cash flows, results in an increase in the reported long service leave liability.

P 100 7 FINANCIAL STATEMENTS

The net financial effect of the changes in the current financial year is an increase in the long service leave liability of $0.787 million. The impact on future periods is impracticable to estimate as the long service leave liability is calculated using a number of assumptions – a key assumption is the long-term discount rate.

The actuarial assessment performed by the Department of Treasury and Finance left the salary inflation rate at 4% for long service leave liability and revised the salary inflation rate down by 1% from 2014 (4%) to 2015 (3%) for annual leave and skills, experience and retention leave liability.

The net financial effect of the changes in the current financial year is a decrease in the annual leave and skills, experience and retention leave liability of $0.090 million.

NOTE 32 PROVISIONS

2015 2014 $’000 $’000

Current Provision for workers compensation 314 134

Total current provisions 314 134

Non-current Provision for workers compensation 953 466

Total non-current provisions 953 466

Total provisions 1,267 600

Carrying amount at the beginning of the period 600 614 Additional provisions recognised as a result of restructure activities 1,097 - Increase/(decrease) in provisions recognised (123) 123 Reductions resulting from payments (307) (137)

Carrying amount at 30 June 1,267 600

A liability has been reported to reflect unsettled workers compensation claims. The workers compensation provision is based on an actuarial assessment performed by the Office of the Public Sector.

NOTE 33 OTHER LIABILITIES

2015 2014 $’000 $’000

Current Lease incentive 240 240 Security deposits 4,407 5,877 Unearned revenue 1,879 1,053

Total current other liabilities 6,526 7,170

Non-current Lease incentive 2,156 2,156 Accumulated amortisation - lease incentive (1,338) (1,098)

Total non-current other liabilities 818 1,058

Total other liabilities 7,344 8,228

P 101 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

Lease incentive received from the building owner applied as a contribution towards fit-out costs (as per agreement) and amortised over the period of the lease (10 years), commencing December 2009.

Security deposits are received to ensure mine operators rehabilitate sites and comply with all statutory requirements on cessation of licences. Cash deposits are classified as security deposits. The value of securities held in the form of bank guarantees are reflected as a contingent asset (refer note 36) as the department only has a claim on these funds if the licensee fails to meet its legislative requirements.

Unearned revenue mainly includes payments of rent received for the grant or renewal of exploration licences and mining leases which are held as unearned revenue until the Minister officially approves the grant or renewal of the tenement or lease. Once the grants or renewals have been instrumented, amounts are then recognised as revenue, or transferred to the landowners refund account for those freehold landowners who are entitled to a refund of rent.

NOTE 34 EQUITY

2015 2014 $’000 $’000

Retained earnings 1,031,280 16,152 Assets Available for Sale Reserve 3,499 - Revaluation surplus 5,989 5,559 Contributed Capital 10,263 -

Carrying amount at 30 June 1,051,031 21,711

The revaluation surplus increased by $0.430 million, during 2014-15, to reflect the market value of land at the Queens Theatre. The asset forms part of assets held for sale balance as at 30 June 2015.

NOTE 35 UNRECOGNISED CONTRACTUAL COMMITMENTS

CAPITAL COMMITMENTS Capital expenditure contracted for at the reporting date but not recognised as liabilities in the financial statements are payable as follows:

2015 2014 $’000 $’000

Within one year 15,551 851

Total capital commitments 15,551 851

Capital commitments at 30 June 2015 relate to the State Drill Core Reference Library.

REMUNERATION COMMITMENTS Commitments for the payment of salaries and other remuneration under fixed-term employment contracts in existence at the reporting date but not recognised as liabilities are payable as follows:

2015 2014 $’000 $’000

Within one year 12,571 10,518 Later than one year but not later than five years 22,388 16,798 Later than five years 112 -

Total remuneration commitments 35,071 27,316

Amounts disclosed include commitments arising from executive and other service contracts. The department does not offer fixed-term remuneration contracts greater than five years

P 102 7 FINANCIAL STATEMENTS

OTHER COMMITMENTS Commitments for the payment of other contracts and grant agreements in existence at the reporting date but not recognised as liabilities are payable as follows:

2015 2014 $’000 $’000

Within one year 32,505 15,742 Later than one year but not later than five years 19,427 8,860 Later than five years 320 -

Total other commitments 52,252 24,602

Amounts disclosed include commitments arising from agreements with contractors, consultants, ICT contracts and grant recipients

OPERATING LEASE COMMITMENTS Commitments in relation to operating leases contracted for at the reporting date but not recognised as liabilities are payable as follows:

2015 2014 $’000 $’000

Department as lessee:

Within one year 13,096 5,605 Later than one year but not later than five years 19,093 14,047 Later than five years - 1,094

Total operating lease commitments 32,189 20,746

Representing: Cancellable operating leases 3,417 1,058 Non-cancellable operating leases 28,772 19,688

Total operating lease commitments 32,189 20,746

The department's operating leases relate to office accommodation and motor vehicles. Office accommodation is leased from the Department of Planning, Transport and Infrastructure - Building Management Accommodation and Property Services. The leases are non- cancellable with terms ranging up to ten years with some leases having the right of renewal. Motor vehicles are leased from SAFA through their agent LeasePlan Australia with lease periods of up to three years. These are cancellable without notice.

2015 2014 $’000 $’000

Department as lessor:

Within one year 5,786 - Later than one year but not later than five years 24,628 - Later than five years 57,191 -

Total operating lease commitments 87,605 -

Representing: Non-cancellable operating leases 87,605 -

Total operating lease commitments 87,605 -

The department’s lease as lessor relates to the Adelaide Festival Centre and Her Majesty’s Theatre leased to the Adelaide Festival Centre Trust. The lease is non-cancellable for 20 years with the right of renewal.

P 103 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

NOTE 36 CONTINGENT ASSETS AND LIABILITIES

CONTINGENT ASSETS Where specific conditions relating to a financial assistance grant are not met, the department may request the amount granted be repaid by the grantee. There are no known contingent assets arising from these present obligations as at 30 June 2015.

The department receives securities in accordance with Acts administered by the department for mining and petroleum. These are obtained to ensure that a mine operator rehabilitates a site and complies with all statutory requirements on cessation of a licence. The amount held as bank guarantees at 30 June 2015 is approximately $127 million ($126 million). The department only has a claim on these funds if the licensee fails to perform its legislative requirements.

CONTINGENT LIABILITIES

Guarantees and Indemnities The department has provided an indemnity relating to an industry package. As at 30 June 2015 the value of the indemnity could not be reliably measured (the value reported in last financial year was nil).

The nature of activities that the department is involved in can create potential exposure to mining matters, which the department may be required to remedy in the future. The department has some potential outstanding litigation specifically resulting from interpretation of past mining practices and petroleum exploration.

Certain matters associated with contaminants such as contaminated land and hazardous materials have been identified and are managed in accordance with recognised standards. This includes the environmental liabilities of past mining practices where there is no longer an active licence. For new activities, it is a lease condition that rehabilitation be undertaken by the leaseholder before a lease is surrendered. The department's responsibility is to ensure that a lease is not surrendered before appropriate rehabilitation has occurred, thus minimising the likelihood of future environmental risks to government. At this time, the financial impact, if any, cannot be reliably estimated.

The Minister for Employment, Higher Education and Skills has provided a $3.0 million guarantee to Scope Global Pty Ltd which has not been invoked as at 30 June 2015.

The Minister for Employment, Higher Education and Skills has entered an agreement to provide Le Cordon Bleu with a 10 year interest free loan of $7.0 million conditional upon Le Cordon Bleu entering into a building contract for the development of Le Cordon Bleu's city training facility

NOTE 37 TRANSFERRED FUNCTIONS

TRANSFERRED IN Under the Public Sector (Reorganisation of Public Sector Operations) Notice 2014, from 1 July 2014 the Department of Further Education, Employment, Science and Technology (DFEEST) was transferred to the Department of State Development. This included the transfer of 533 employees and expenditure budget funding of $470.866 million for controlled activities.

The effective date of the transfer was 1 July 2014.

Under the Public Sector (Reorganisation of Public Sector Operations) Notice 2014, from 1 July 2014 the operational units of; Arts SA, Aboriginal Affairs and Reconciliation (AARD), Office of the Economic Development Board (OEDB) and Invest in SA, were transferred from the Department of the Premier and Cabinet (DPC) to the Department of State Development. This included the transfer of 182 employees and expenditure budget funding of $154.251 million for controlled activities.

The effective date of the transfer was 1 July 2014.

Under the Public Sector (Reorganisation of Public Sector Operations) Notice 2014, from 1 July 2014 the operational unit of Health Industries South Australia was transferred from the Department of SA Health to the Department of State Development. This included the transfer of 3 employees and expenditure budget funding of $2.600 million for controlled activities.

The effective date of the transfer was 1 July 2014.

P 104 7 FINANCIAL STATEMENTS

On transfer, the department recognised the following assets and liabilities:

DFEEST Arts SA AAR OEDB Invest in SA SA Health $’000 $’000 $’000 $’000 $’000 $’000

Assets Cash and cash equivalents 41,543 6,077 1,040 - - - Receivables 18,142 4,451 126 - 10 - Assets held for sale 41,090 - - - - - Property, plant and equipment 790,124 160,691 2,062 - - - Other assets 6,103 - - - - -

Total Assets 897,002 171,219 3,228 - 10 -

Liabilities Payables 50,816 2,713 1,194 31 27 5 Provisions 1,141 122 10 1 1 - Employee benefits 15,120 1,775 1,603 98 109 51 Other liabilities 658 1,428 - - - -

Total liabilities 67,735 6,038 2,807 130 137 56

Total net assets transferred 829,267 165,181 421 (130) (127) (56)

Transferred from Transferred from Transferred from Total DFEEST DPC SA Health $’000 $’000 $’000 $’000

Assets Cash and cash equivalents 41,543 7,117 - 48,660 Receivables 18,142 4,587 - 22,729 Assets held for sale 41,090 - - 41,090 Property, plant and equipment 790,124 162,753 - 952,877 Other assets 6,103 - - 6,103

Total Assets 897,002 174,457 - 1,071,459

Liabilities Payables 50,816 3,965 5 54,786 Provisions 1,141 134 - 1,275 Employee benefits 15,120 3,585 51 18,756 Other liabilities 658 1,428 - 2,086

Total liabilities 67,735 9,112 56 76,903

Total net assets transferred 829,267 165,345 (56) 994,556

P 105 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

TRANSFERRED OUT

Total $’000

Liabilities Payables 170 Employee benefits 1,550

Total liabilities 1,720

Total net assets transferred 1,720

NOTE 38 REMUNERATION OF BOARD AND COMMITTEE MEMBERS

* In accordance with the Department of the Premier and Cabinet Circular No. 016, government employees did not receive any remuneration for board / committee duties during the financial year. In addition, members of Parliament who are members of boards or committees did not receive any remuneration. ^ Indicates a member entitled to remuneration but has elected not to receive payment.

Advanced Manufacturing Council (abolished October 2014)

D McGurk T Monro S Myatt G Combet G Roos (Chair) M Beer J Law G Knight*

Members due to expire on 30 June 2014 were extended by the Chair to wind up the work of the council, until it’s abolishment on 30 October 2014.

Business Development Council (abolished October 2014)

All members expired 30 June 2014, no members were appointed during 1 July 2014-30 June 2015.

Board of Examiners for Mine Managers (abolished October 2014)

G Marshall* (Chair) M Van Leuven J Coker A Ward

Brukunga Minesite Remediation Board (abolished October 2014)

H MacDonald (Chair) E Tyne* R MacDonald A Stuart S Skibinski H Seager

Electrical Technical Advisory Committee

A Baehnisch* (appointed May 2015) P Morris* (retired May 2015) G Cox* S O'Loughlin R Donnelly T Tran R Faunt* (Chair) J Corbett* J Gater S Cottell* (retired May 2015) B Jackson R Struve* (appointed May 2015) L Moore For the Electricity Technical Advisory Committee, no members received remuneration. This committee is due to merge with the Gas Technical Advisory Committee late in 2015.

P 106 7 FINANCIAL STATEMENTS

Energy Consumers Council (abolished October 2014)

M Baldock (Chairperson) J Pike C Eardley (Deputy Chair) R Williams H I’Anson D Crabb (Deputy Member) N Long M Creswell (Deputy Member) A McKenna J De Silva (Proxy Member) A Moore L Stoll (Proxy Member) The Energy Consumers Council has a number of proxy members representing various organisations. Only paid proxy members have been included above.

Extractive Areas Rehabilitation Fund Project Assessment Panel

C Miller (Independent Chair - resigned November 2014) M Harvey (Alternate Member - resigned November 2014) S Falland (resigned November 2014) S Linou (Alternate Member - resigned November 2014) H O'Neil (resigned August 2014) G Marshall* (Alternate Member - resigned November 2014) E Tyne* (resigned November 2014) T McDonald (Alternate Member - resigned November 2014) E Young* (resigned November 2014) This panel had no members as at 30 June 2015, and is due to be reformed following a review.

Gas Technical Advisory Committee

D Buchanan G Michael (appointed May 2015) A Clarke A Szacinski* R Faunt* (Chair) T Tucker* A Baehnisch* (appointed May 2015) T Sika* (appointed August 2014) R Mignone D Santinon For the Gas Technical Advisory Committee, no members received remuneration. This committee is due to merge with the Electricity Technical Advisory Committee late in 2015.

Resources and Energy Sector Infrastructure Council

B Carter P Heithersay* G Guglielmo (Chair) L Worrall* J Kuchel* D Cuzzubbo L Owens T White J Roberts D Cruickshanks-Boyd For the Resources and Energy Sector Infrastructure Council, no members received remuneration.

Minerals and Energy Advisory Council (formerly Resources Industry Development Board)

K Yates (Chair – expired June 2015) P Holloway (expired June 2015) D Carter (expired June 2015) G McKenzie (expired June 2015) B Goldstein* (Observer) A McCleary (expired June 2015) R Goldsworthy (resigned May 2015) J Roberts (expired June 2015) I Gould (expired June 2015) E Tyne* (Observer) G Guglielmo^ (expired June 2015) J White (expired June 2015) P Heithersay* (Observer – expired June 2015) R Yeeles^ (resigned June 2015) P Carr

Resources Industry Development Board was merged with RESIC to form Minerals and Advisory Council approved by the Minister 7 May 2015.

Roxby Downs Advisory Reference Group

W Cossey (Chair) N Jones^ M Gall* P Holloway^ P Heithersay*

For the Roxby Downs Advisory Reference Group, only the Chair received remuneration.

P 107 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

Consumer Advisory Committee

S Canale^ P Walsh^ (Chair) M Henley J Whittaker D Hossen I Yates^ H I'Anson T Kelly Members of the Consumer Advisory Committee are remunerated by the Essential Services Commission of South Australia.

Electricity Act 1996 Assessors Panel

T Blackburn (expired April 2015) D Round C Cooper H Sandstrom B Rajkowska E Woodley This panel will transition to South Australian Civil and Administrative Tribunal.

Gas Act 1997 Assessors Panel

O Clark (expired October 2014) B Rajkowska (expired October 2014) C Cooper (expired October 2014) W Ryan (expired October 2014) This panel had no members as at 30 June 2015, and is due to be reformed following a review. This panel will transition to South Australian Civil and Administrative Tribunal.

Powerline Environment Committee

I Brooks M Magin R Crowley (Chair) L Clyne K Hamilton G O'Neill* D Harvey T Wilson* M Lee Members of the Powerline Environment Committee were entitled to remuneration, which was paid by the Essential Services Commission of South Australia.

Boards transferred in to the department as a result of restructuring arrangements as at 1 July 2014:

Economic Development Board

R J Spencer (Chair – appointed July 2014) T M Monro R I Chapman (Deputy Chair – appointed July 2014) B A Pocock (appointed July 2014) T Burgess (appointed January 2015) L C Read (appointed July 2014) D W Garrard N G Roos (appointed July 2014) L Jacobs D E Russell (Ex Officio)* R G Kerin D S Thomas (appointed July 2014) D G Lloyd

Audit and Risk Management Committee

C Dunsford (Chair) W Einarson G Giannopoulos* J Hill P Heithersay* A Reid*

South Australian Science Council (formerly Premier’s Science & Industry Council)

D Evans G Fincher C Plewa L Read (Chair) M Verma K Reynolds K Scott M Westwell P Sandercock (resigned December 2014) R Popella-Filcoff (resigned December 2014) G Young (resigned December 2014) D Mutton (resigned December 2014) M Heard (resigned December 2014) A Lopez (resigned December 2014) C Priest (resigned December 2014) P Tharenou (resigned December 2014)

P 108 7 FINANCIAL STATEMENTS

Training and Skills Commission

A L Smith (Chair) J D Buchanan (Deputy Member) A Kittel (Deputy Chair – appointed January 2015) I W Curry (Deputy Member) S K Myatt L Inglis (Deputy Member - appointed January 2015) K Heneker A Downs (Deputy Member – resigned December 2014) J Newlyn P Dowd (resigned December 2014) A L Nieuwenhuis M Keating (resigned December 2014) M A O'Leary (appointed January 2015) N McBride (resigned December 2014) L A Palmer C Haythorpe (resigned December 2014) D A Black (Deputy Member - appointed January 2015)

Training and Skills Commission Access and Participation Reference Group (Abolished 31 December 2014)

K Heneker (Chair) M Lobbon* G McFadyen M G Thompson P Wright

Training and Skills Commission Quality Reference Group (Abolished 31 December 2014)

A Coker A Nieuwenhuis (Chair) S Forrest E Sckrabei* S Holden

Training and Skills Development Act 2008 Assessor Panel

J Adler^ S Frazer^ (resigned December 2014) R Buckler^ D Jeffries^ A Cartledge^ P Staley^ (appointed January 2015) I Curry^

Aboriginal & Torres Strait Islander Development Program Peer Assessment Panel

M Blackman P Herzich* F Blanch S Meagher* A Cobby-Eckermann H Shearer M Collard

Contemporary Music Peer Assessment Panel

A Fraser (Chair - expired February 2015) R L Kradolfer (expired February 2015) T T Boakes M H Mayo (expired February 2015) L D Godson D H Rankine N Bates (expired February 2015)

Organisations Assessment Panel

A Beare (Chair) R Myers J Covernton (appointed May 2015) L Newton (expired December 2014) R Hervey E Pak Poy (expired December 2014) L Kroetsch (expired December 2014) C Reid B MacQueen (appointed May 2015) J Sweeney (expired December 2014)

Art for Public Places

L Simeoni (expired June 2015)

P 109 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

Community Arts Peer Assessment Panel

T C Hopprich J T Pierce M Rankin O E Allen J Pike F Mantelli (expired June 2015)

Disability Arts Peer Assessment Panel

L Beasley (Chair - reappointed July 2014) S Lush* (reappointed July 2014) T Doyle (appointed July 2014) K Martinsen (appointed July 2014) C Harris (appointed July 2014) C Pickering (reappointed July 2014) S Tooth (expired December 2014)

Literature Peer Assessment Panel

A Solding (appointed February 2015) P R Butterss (retired May 2015) C A Lefevre (Chair - appointed February 2015) R E Starke J Owen (appointed February 2015) S M Sheridan (Chair - retired May 2015) P R Graham (retired May 2015) S N Franzway

Performing Arts Peer Assessment Panel (PAPAP)

A J Currie (expired March 2015) M D Gray C N Anderson (Chair) P J Sheedy C N Broad (expired March 2015) S Bleby (expired March 2015) C Wellman Kelly (appointed February 2015) S L Collins (expired March 2015) C N Williams (appointed February 2015) T Booth-Remmers (appointed February 2015) D P Vacirca T M Crawford H Kleinig (appointed February 2015) S Emery (expired March 2015)

Visual Arts, Craft and Design Peer Assessment Panel (VACD)

B S French (expired March 2015) J A Clutterbuck (appointed February 2015) C De Rosa (appointed February 2015) J D Dodd (expired March 2015) C G Belfrage (appointed February 2015) L Slade* C J Taylor (appointed February 2015) M F Nikou C R Orchard P Kruger D Paauwe (expired March 2015) S Humphreys (appointed February 2015) H Freeman (expired March 2015) A Hughes (expired March 2015)

State Aboriginal Heritage Committee

S R Sparrow (Chair) H L Richards L Wright (Deputy Chair - appointed October 2014) K M Richards (appointed October 2014) Q L Agius H F Smith (appointed October 2014) Y D Agius A C Stuart R H Campbell* (appointed October 2014) V G Sumner C Waye (resigned July 2014)

South Australian Aboriginal Advisory Council

S Williams (Chair –appointed April 2015) T L Ritchie* (appointed April 2015) C Rigney (Deputy Chair - appointed April 2014) M Robyn-Hopkins* (appointed August 2014) S Blake* (appointed April 2015) S Waters (appointed April 2015) R King* (appointed August 2014) T Larkin (appointed April 2015) T Lloyd* (appointed April 2015)

P 110 7 FINANCIAL STATEMENTS

Health Industries South Australia Advisory Board

C M Butcher (Chair) R J Spencer N S Brooksby J Weatherill* W M Castell S L Wesselingh S Solomon B Hewitt* T J Soon D E Russell* J M White J J Snelling*

REMUNERATION OF BOARD MEMBERS The number of members whose remuneration received or receivable falls within the following bands is:

2015 2014 Number Number

$1 - $9,999 117 47 $10,000 - $19,999 2 4 $20,000 - $29,999 4 2 $30,000 - $39,999 8 - $40,000 - $49,999 3 - $50,000 - $59,999 6 - $60,000 - $69,999 1 - $70,000 - $79,999 - 1 $80,000 - $89,999 1 - $100,000 - $109,999 1 - $140,000 - $149,999 1 -

Total number of members 144 54

Remuneration of members reflects all costs of performing board / committee member duties including sitting fees, superannuation contributions, fringe benefits tax and any other salary sacrifice arrangements. The total remuneration received or receivable by members was $1.396 million ($0.245 million).

Unless otherwise disclosed, transactions between members are on conditions no more favourable than those that it is reasonable to expect the entity would have adopted if dealing with the related party at arm's length in the same circumstances.

For the purpose of this table, the travel allowance paid to members has not been included as remuneration as it is considered to be a reimbursement of direct out-of-pocket expenses incurred by the relevant members.

NOTE 39 CASH FLOW RECONCILIATIONS

For the purposes of the Statement of Cash Flows, cash on hand and on deposit includes cash deposits which are used in the cash management function on a day-to-day basis.

2015 2014 $’000 $’000

Reconciliation of cash and cash equivalents at 30 June Cash and cash equivalents disclosed in the Statement of Financial Position 172,225 22,493

Balance as per the Statement of Cash Flows 172,225 22,493

P 111 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

NOTE 39 CASH FLOW RECONCILIATIONS CONTINUED

2015 2014 $’000 $’000

Reconciliation of net cash provided by (used in) operating activities to net cost of providing services Net cash provided by (used in) operating activities 97,806 2,895 Less revenues from SA Government (686,720) (96,064) Add payments to SA Government 14,861 1,109

Add / (less) non-cash items: Depreciation and amortisation expense of non-current assets (31,682) (2,059) Amortisation of lease incentive 240 240 Assets held for sale write down (2,690) - Doubtful debts expense (479) (1,225) Resources received free of charge 1,021 - Donated Assets (2,197) - Prior period adjustments - (175) Transfer in for administrative restructure 54,174 (27) Transfer out for administrative restructure (1,720) - Loss from disposal and write down of non-current assets (1,656) (122)

Movements in assets and liabilities: (Decrease) increase in receivables 28,084 (1,421) Increase (decrease) in other assets (15) 166 Decrease (increase) in payables (100,818) (264) Decrease in other liabilities 884 983 (Increase) Decrease in provisions (667) 14 Increase in employee benefits (17,934) (612)

Net cost of providing services (649,508) (96,562)

NOTE 40 TRUST FUNDS

EXTRACTIVE AREAS REHABILITATION FUND The Extractive Areas Rehabilitation Fund is credited with amounts by way of royalty on extractive minerals and is used for the rehabilitation of land disturbed by mining operations. The funds collected are used to limit damage to any aspect of the environment by such mining operations in addition to the promotion of research into methods of mining engineering and practice by which environmental damage might be reduced.

Aggregate details of the transactions and balances relating to this trust fund to year ended 30 June are as follows:

2015 2014 $’000 $’000

Operations Revenue 2,415 3,441 Expenditure 1,702 1,760

Net operating surplus 713 1,681

Assets: Cash at bank 19,799 19,052 Receivables 8 -

Total assets 19,807 19,052

P 112 7 FINANCIAL STATEMENTS

NOTE 40 TRUST FUNDS CONTINUED

2015 2014 $’000 $’000

Liabilities: Liabilities 43 -

Total liabilities 43 -

Net assets 19,764 -

Funds: Balance of funds at beginning of period 19,052 17,371 Net receipts 713 1,681

Fund balance at 30 June 19,765 19,052

Commitments in place at 30 June 670 1,627

NOTE 41 EVENTS AFTER THE REPORTING PERIOD

The Public Sector (Reorganisation of Public Sector Organisations) Notice 2015 (dated 21 May 2015) proclaimed that effective from 1 July 2015 the Office of the Industry Participation Advocate will be transferred from the Department of the Premier and Cabinet to the Department of State Development

NOTE 42 TRANSACTIONS WITH SA GOVERNMENT

SA Government Non-SA Total Government

2015 2014 2015 2014 2015 2014 Note $’000 $’000 $’000 $’000 $’000 $’000

Expenses Employee benefits expenses 5 5,953 2,717 111,551 55,963 117,504 58,680 Supplies and services: 6 Accommodation and service costs 13,921 5,577 3,887 459 17,808 6,036 Accounting and audit fees 401 172 4 142 405 314 Communications and information technology 3,185 1,766 8,977 2,960 12,162 4,726 Contractors 779 46 12,790 7,178 13,569 7,224 Consultancies - - 4,583 5,864 4,583 5,864 Corporate Services recharges to TAFE SA 530 - - - 530 - Energy supply, fuel and lubricants - 75 6,488 7,776 6,488 7, 851 Lease incentive amortisation - - (240) (240) (240) (240) Marketing 1 5 1,857 1,295 1,858 1,300 Overseas trade representation 38 16 638 344 676 360 RAES Aboriginal Communities infrastructure - 2,120 1,945 1,877 1,945 3,997 Shared service fees - other 3,830 2,443 - - 3,830 2,443 Staff related expenses 187 82 2,079 1,493 2,266 1,575 Travel and related expenses 1,528 1,153 3,417 2,137 4,945 3,290 Repairs and maintenance ------Office administration expenses 3,133 1,867 5,953 4,232 9,086 6,099 Trainee & apprenticeship reimbursements - - 4,353 - 4,353 -

P 113 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

NOTE 42 TRANSACTIONS WITH SA GOVERNMENT CONTINUED

SA Government Non-SA Total Government

2015 2014 2015 2014 2015 2014 Note $’000 $’000 $’000 $’000 $’000 $’000

Vocational Education Training funding 7 161,188 - 79,587 - 240,775 - Depreciation and amortisation expense 8 - - 31,682 2,059 31,682 2,059 Grants and subsidies: 9 Arts and Cultural 107,608 - 20,017 - 127,625 - TAFE SA 67,676 - - - 67,676 - Skills and Employment 19,944 - 37,050 - 56,994 - Resources and Energy - 4,049 15,195 8,342 15,195 12,391 Industry and Innovation - 513 9,513 10,650 9,513 11,163 Investment, Trade and Immigration - - 5,905 128 5,905 128 Aboriginal Affairs and Reconciliation - - 5,165 - 5,165 - Other 498 795 420 369 918 1,164 Other expenses: 10 TVSP reimbursement to TAFE SA 3,445 - - - 3,445 - Bad and doubtful debts - - 479 1,232 479 1,232 Asset write-down - - - 110 - 110 Donated assets - - 2,197 - 2,197 - Revaluation decrement - Land and buildings - - 2,690 - 2,690 - held for sale Other 42 - - - 42 -

Net loss from the disposal of non-current assets 19 13 - 1,643 12 1,656 12

Total expenses 393,912 23,396 379,813 114,382 773,725 137,778

Income Revenues from fees and charges 13 38,211 - 22,944 21,585 61,155 21,585 Technical regulation 14 6,667 6,384 - - 6,667 6,384 Sale of electricity 15 2,114 2,745 2,012 1,885 4,126 4,630 Commonwealth revenues 16 - - 36,045 1,425 36,045 1,425 Interest and investment revenues 17 23 - 405 6 428 6 Resources received free of charge 18 41 - 980 - 1,021 - Other revenues: 20 Fuel tax credits - - 1,487 1,623 1,487 1,623 Management of Extractive Areas Rehabilitation Fund 558 449 - - 558 449 Sponsorship revenues 1,376 - 75 21 1,451 21 Recoveries 5,415 3,787 2,667 1,306 8,082 5,093 Sundry income - - 1,250 - 1,250 - Other revenues 1,502 - 445 - 1,947 -

Total income 55,907 13,365 68,310 27, 851 124,217 41,216

P 114 7 FINANCIAL STATEMENTS

NOTE 42 TRANSACTIONS WITH SA GOVERNMENT CONTINUED

SA Government Non-SA Total Government

2015 2014 2015 2014 2015 2014 Note $’000 $’000 $’000 $’000 $’000 $’000

Financial assets Receivables: 23 Receivables 2,259 305 6,301 1,805 8,560 2,110 GST input tax recoverable - - 3,667 859 3,667 859 Prepayments - - 473 276 473 276 Accrued revenue 19,260 716 922 1,005 20,182 1,721 Other receivables - - 168 - 168 - Financial assistance debtors 24 - - 1 16 1 16 Investments 28 - - 6,484 - 6,484 -

Total financial assets 21,519 1,021 18,016 3,961 39,535 4,982

Financial liabilities Payables: 30 Creditors and accrued expenses 94,180 2,954 24,811 8,608 118,991 11,562 Employee on-costs 2,212 557 2,507 1,068 4,719 1,625 Other liabilities: 33 Lease incentive 1,058 1,298 - - 1,058 1,298 Security deposits - - 4,407 5,877 4,407 5,877 Unearned revenue - 1,879 1,053 1,879 1,053

Total financial liabilities 97,450 4,809 33,604 16,606 131,054 21,415

NOTE 43 BUDGETARY REPORTING AND EXPLANATIONS OF MAJOR VARIANCES BETWEEN BUDGET AND ACTUAL AMOUNTS

The following are brief explanations of variances between original budget and actual budget amounts.

Explanations are provided for variances where variances exceeds the greater of 10% of the original budgeted amount and 5% of original budgeted expenses.

Note Variance Original Eliminate Revised Actual Variance Ref DSD TafeSA DSD 2015 $'000 Budget 2015 Budget $’000 2015 $’000 2015 $’000 $’000

Statement of Comprehensive Income Expenses Employee benefit expense 5 316,560 (205,662) 110,898 117,504 6,606 Supplies and services 6 243,550 (159,658) 83,892 84,264 372 Vocational Education Training funding 7 (a) - 274,542 274,542 240,775 (33,767) Depreciation and amortisation expense 8 37,073 (5,070) 32,003 31,682 (321) Grants and subsidies 9 (b) 205,580 39,831 245,411 288,991 43,580 Net loss from disposal of non-current assets 19 - - - 1,656 1,656 Other expenses 10 4,184 (3,982) 202 8,853 8,651

Total expenses 806,947 (59,999) 746,948 773,725 26,777

P 115 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

NOTE 43 BUDGETARY REPORTING AND EXPLANATIONS OF MAJOR VARIANCES BETWEEN BUDGET AND ACTUAL AMOUNTS CONTINUED

Note Variance Original Eliminate Revised Actual Variance Ref DSD TafeSA DSD 2015 $'000 Budget 2015 Budget $’000 2015 $’000 2015 $’000 $’000

Income Revenues from fees and charges 13 121,557 (51,543) 70,014 61,155 (8,859) Technical regulation 14 - 6,567 6,567 6,667 100 Sale of electricity 15 - 4,974 4,974 4,126 (848) Commonwealth revenues 16 42,837 (12,157) 30,680 36,045 5,365 Other grants & contributions 14,812 (14,812) - - - Interest and investment revenues 17 600 - 600 428 (172) Resources received free of charge 18 - - - 1,021 1,021 Other revenues 20 6,290 5,207 11,497 14,775 3,278

Total income 186,096 (61,764) 124,332 124,217 (115)

Net cost of providing services (620,851) (1,765) (622,616) (649,508) (26,892)

Revenues from / payments to SA Government Revenues from SA Government 21 634,035 - 634,035 686,720 52,685 Payments to SA Government 21 - - - (14,861) (14,861)

Net result 13,184 (1,765) 11,419 22,351 10,932

Other comprehensive income Items that will not be reclassified to net result Changes in revaluation surplus 34 - - - 430 430

Total comprehensive result 13,184 (1,765) 11,419 22,781 11,362

EXPLANATION OF MAJOR VARIANCES FROM BUDGET - OPERATING (a) VET Funding lower than budget primarily due to the implementation of budget containment measures including reduced subsidy prices, capping courses and restricting eligibility for new students resulting in need for structural adjustment funding to TAFE SA.

(b) Grants and Subsidies higher than budget primarily due to structural adjustment funding and other approved variations to grant payments.

Variance Original Adjusted Original Actual Variance Ref DSD for DSD 2015 $'000 Portfolio Tafe SA & Budget $’000 Budget Reclasses 2015 2015 2015 $’000 $’000 $’000

Investing Expenditure Summary Total new projects (c) 21,934 - 21,934 15,078 (6,856) Total existing projects (d) 11,955 - 11,955 9,138 (2,817) Total annual programs 9,830 (1,800) 8,030 8,454 424

Total investing expenditure 43,719 (1,800) 41,919 32,670 (9,249)

P 116 7 FINANCIAL STATEMENTS

EXPLANATION OF MAJOR VARIANCES FROM BUDGET - INVESTING (c) Minor start-up delays in Drill Core Library Project. Project remains on target for completion in 2015-16.

(d) Variance relates primarily to the Brukunga remediation project which is due for completion in 2015-16.

NOTE 44 FINANCIAL RISK MANAGEMENT / FINANCIAL INSTRUMENTS

FINANCIAL RISK MANAGEMENT Risk management facilitation is undertaken by the department’s Strategy and Business Services division. The departments risk management policy and procedures are drafted in accordance with the Risk Management Policy Statement issued by the Premier and Treasurer, relevant Treasurers Instructions and the Australian Risk Management Standard (AS/NZS ISO 31000:2009).

The department is exposed to financial risk – liquidity risk, credit risk and market risk. The department’s exposure to risk is insignificant based on past experience and current assessment of risk.

CATEGORISATION OF FINANCIAL INSTRUMENTS Details of significant accounting policies and methods adopted including the criteria for recognition, the basis of measurement, and the basis on which income and expenses are recognised with respect to each class of financial asset, financial liability and equity instrument are disclosed in Note 2 Summary of Significant Accounting Policies.

Refer to the table below for the carrying amounts of each of the following categories of financial assets and liabilities: Held-to-maturity investments; loan and receivables; and financial liabilities measured at cost.

LIQUIDITY RISK Liquidity risk arises where the department is unable to meet its financial obligations as they fall due. The department is funded principally from appropriation by the SA Government. The department works with the Department of Treasury and Finance to determine the cash flows associated with its Government approved program of work and to ensure funding is provided through SA Government budgetary processes to meet the expected cash flows. The department settles undisputed accounts within 30 days from the date of the invoice or date the invoice is first received. In the event of a dispute, payment is made 30 days from resolution. The department’s exposure to liquidity risk is insignificant based on past experience and current assessment of risk.

The carrying amount of financial liabilities recorded in table below represent the department’s maximum exposure to financial liabilities.

The following table discloses the maturity analysis of financial assets and financial liabilities.

2015 Contractual maturities

Category of financial asset and Note Carrying Current Within 1-5 years More than financial liability amount / $'000 1 year 5 years Fair value $'000 $'000 $'000

Financial assets Cash and cash equivalents 22 172,225 - 172,225 - - Loans and receivable (1)(2) 23 28,910 - 28,910 - - Investments 28 6,484 - 6,484 - -

Total assets 207,619 - 207,619 - -

Financial liabilities Financial liabilities at cost (1) 30 118,431 - 118,431 - -

Total 118,431 - 118,431 - -

P 117 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 7 FINANCIAL STATEMENTS

2014 Contractual maturities

Category of financial asset Note Carrying amount Current Within 1-5 years More than and financial liability / Fair value $'000 1 year 5 years $'000 $'000 $'000

Financial assets Cash and cash equivalents 22 22,493 - 22,493 - - Loans and receivable (1)(2) 23 3,845 - 3,845 - -

Total assets 26,338 - 26,338 - -

Financial liabilities Financial liabilities at cost (1) 30 11,409 - 11,409 - -

Total 11,409 - 11,409 - -

(1) Receivable and payable amounts disclosed here exclude amounts relating to statutory receivables and payables. In government, certain rights to receive or pay cash may not be contractual and therefore in these situations, the requirements will not apply. Where rights or obligations have their source in legislation such as levy receivables / payables, tax equivalents, Commonwealth tax etc they would be excluded from the disclosure. The standard defines contract as enforceable by law.

(2) Receivable amount disclosed here excludes prepayments. Prepayments are not financial assets as defined in AASB 132 as the future economic benefit of these assets is the receipt of goods and services rather than the right to receive cash or another financial asset.

CREDIT RISK Credit risk arises when there is the possibility of the department’s debtors defaulting on their contractual obligations resulting in financial loss to the department. The department measures credit risk on a fair value basis and monitors risk on a regular basis.

The department has minimal concentration of credit risk. The department has policies and procedures in place to ensure that transactions occur with customers with appropriate credit history. The Commissioner does not engage in high risk hedging for its financial assets.

Allowances for impairment of financial assets are calculated on past experience and current and expected changes in client credit rating. Currently the department does not hold any collateral as security for any of its financial assets. Other than receivables, there is no evidence to indicate that financial assets are impaired. Refer note 23 for information on the allowance for impairment in relation to receivables.

The following table discloses the ageing of financial assets that are past due but not impaired and impaired financial assets.

Past due but not impaired

Carrying Not past due Overdue for Overdue for Overdue for Impaired amount and not less than 30-60 days more than financial $'000 impaired 30 days $'000 60 days assets $'000 $'000 $'000 $'000

2015 Cash and cash equivalents 172,225 172,225 - - - - Loans and receivables (1) 28,910 24,212 569 621 1,653 1,855 Investments 6,484 6,484 - - - -

2014 Cash and cash equivalents 22,493 22,493 - - - - Loans and receivables (1) 3,845 901 1,406 97 129 1,312

(1) Receivable amounts disclosed here exclude amounts relating to statutory receivables. They are carried at cost.

MARKET RISK Market risk through interest rate or price fluctuations is immaterial.

SENSITIVITY DISCLOSURE ANALYSIS A sensitivity analysis has not been undertaken for the interest risk of the department as it has been determined that the possible impact on profit and loss and total equity from fluctuations in interest rates is immaterial.

P 118 LIST OF FIGURES/ 8 LIST OF TABLES

LIST OF FIGURES

Figure 1: DSD functional chart in 2014-15 10

LIST OF TABLES

Table 1: Legislation administered by the Department of State Development 32 Table 2: Number of employees by age bracket by gender 34 Table 3: Total number of employees with disabilities 34 Table 4: Types of disability 34 Table 5: Executives by gender, classification and status 35 Table 6: Average days leave per full time equivalent employee 35 Table 7: Documented review of individual performance management 35 Table 8: Leadership and management training expenditure 36 Table 9: Graduate numbers by gender 37 Table 10: Employment opportunity programs 37 Table 11: Work health and safety prosecutions, notices and corrective action taken 37 Table 12: Agency gross workers compensation expenditure for 2014-15 compared with 2013-14 37 Table 13: Public complaints received by the Department of State Development 39 Table 14: Consultants for the Department of State Development 40

P 119 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15 PUBLIC SECTOR VALUES • Service • Professionalism • Trust • Respect • Collaboration and Engagement • Honesty and Integrity • Courage and Tenacity • Sustainability

P 120 Department of State Development

Level 4, 11 Waymouth Street Adelaide SA 5000

GPO Box 320 Adelaide SA 5001

T: +61 8 8226 3821 E: [email protected]

Published September 2015. No responsibility for any loss or damage caused by reliance on any of the information or advice provided by or on behalf of the State of South Australia, or for any loss or damage arising from acts or omissions made, is accepted by the State of South Australia, their officers, servants or agents. Produced by the Department of State Development © September 2015. Content correct at time of printing.

www.statedevelopment.sa.gov.au P 121 DEPARTMENT OF STATE DEVELOPMENT ANNUAL REPORT 2014-15