Sydney Catchment Authority | Annual Report 0607 I Healthy catchments Quality water Always
Sydney Catchment Authority | Annual Report 2006–07 Figure 1: SCA drinking water catchments
Sydney Catchment Authority | Annual Report 2006–07 Sydney Catchment Authority 1 Annual Report 2006–07
Contents Letter to the Minister 2 About the SCA 4 Our key areas of performance 7 Report from the Chairman 8 Report from the Chief Executive 10 Corporate governance 14 Our organisation 16
KRA 01 Threats to water quality minimised 19 KRA 02 Sustainable and reliable water supply 29 KRA 03 Commercial success 41 KRA 04 Building and sharing knowledge 49 KRA 05 Results through relationships 59 KRA 06 Dynamic, supportive workplace 67 KRA 07 Quality systems and processes 69
Financial reporting 76 Appendices 135
SCA Division Report 157
Glossary 200 Acronyms 201 Annual Report 2006–07 compliance checklist 202
Sydney SydneyCatchment Catchment Authority Authority | Annual | ReportAnnual 2006Report–07 2006–07 2
Sydney Catchment Authority | Annual Report 2006–07 Healthy catchments, quality water – always 3
Above: The Nepean/Avon deep water access project involved constructing a new pumping station at the base of Nepean Dam and a two kilometre pipeline to deliver water to Avon Dam, which supplies the Illawarra.
Sydney Catchment Authority | Annual Report 2006–07 About the SCA
The Sydney Catchment Authority SCA business plan principles 4 Annual Report 2006–07 Our vision The 2006–07 annual reports for the Sydney Catchment Healthy catchments, quality water – always Authority (SCA) and Sydney Catchment Authority Division of the Government Service (SCA Division) Our key values provide details of organisational performance over the past year. Changes to the NSW Government’s • Being accountable employment legislation in early 2006 resulted in the • Caring for the environment SCA being provided with personnel services pursuant • Behaving ethically to a contract with the SCA Division of the Government • Working together Service. As a consequence of the Pubic Sector • Acting professionally Employment Legislation Amendment Act 2006, which amended the Public Sector Employment Management • Being respectful Act 2000, the SCA has additional reporting • Ensuring safety requirements. The SCA Division’s annual report for 2006–07 begins on page 157. Our key result areas The SCA and the SCA Division reports are organised Threats to water quality minimised against the key result areas of the SCA Business Plan • Sustainable and reliable water supply 2002–2007 (as outlined on page 11). From 30 June • Commercial success 2007, the business plan will be replaced by the SCA • Building and sharing knowledge Corporate Plan 2007–2012. • Results through relationships Each year, the SCA also produces reports on water quality monitoring, and catchment management • Quality systems and processes and protection activities that cover these aspects of • A dynamic and supportive workplace the SCA’s operations in detail. The SCA’s annual report, along with these other reports, is available The SCA at a glance on our website – www.sca.nsw.gov.au. Who we are The Sydney Catchment Authority (SCA) is a statutory corporation established in 1999, pursuant to the Sydney Water Catchment Management Act 1998 (the SWCM Act), by the New South Wales Government. The SCA Division currently employs about 300 staff. The SWCM Act is the legislation that defines the roles, functions and objectives of the SCA.
Sydney Catchment Authority | Annual Report 2006–07 What we do The SCA’s performance against the terms of its operating licence is subject to annual audit by The role of the SCA is to: 5 IPART. • manage and protect the catchment areas and catchment infrastructure works The operating licence may be reviewed mid-term and is required to be reviewed at the end of the • be a supplier of bulk water term. • regulate certain activities within or affecting catchment areas. How we are funded Our objectives and functions SCA activities are funded by the sale of bulk raw water to customers at prices determined by IPART. The SWCM Act sets out the principal objectives of the SCA as being to: • ensure that the catchment areas and catchment Principal legislation infrastructure works are managed and protected The Sydney Catchment Authority is constituted so as to promote water quality, the protection under the SWCM Act. The Act sets out the SCA’s of public health and safety and the protection of functions and the role of the SCA Board. It provides the environment for financial accountability by the SCA Board to the Minister and the Treasurer through the Statement of • ensure that water supplied by the SCA complies Financial Framework. The statement includes the with appropriate standards of quality SCA’s financial purposes, payment of dividends, tax • conduct its activities in compliance with the equivalents and guarantee fees. principles of ecologically sustainable development where the SCA’s activities affect We are also required to comply with a water the environment management licence administered by the Department of Water and Energy (DWE). The licence • manage the SCA’s catchment infrastructure places conditions on the SCA’s management of works efficiently and economically and in water, including access to water resources within accordance with sound commercial principles. our area of operations, extraction, and the release The role, objectives and functions of the SCA are of water to rivers. performed subject to an operating licence which is The SCA is required to enter into arrangements with granted by the Governor under section 25 of the Sydney Water Corporation (Sydney Water) regarding SWCM Act. The purpose of the licence is to set out our supply of water to Sydney Water, and to enter the terms and conditions under which the SCA into memoranda of understanding with certain undertakes its statutory functions. The licence regulatory agencies. expires on 30 June 2010. The licence also requires us to comply with quality and performance The lands adjacent to Sydney’s water storages are standards in the licence or to be developed through defined as ‘Special Areas’. The SWCM Act provides the licence. Compliance under the terms and for the SCA’s joint management of the Special Area conditions of the licence is regulated by the lands with the Department of Environment and Independent Pricing and Regulatory Tribunal Climate Change (DECC). This involves preparing (IPART). The Governor is able to renew the licence plans of management for all Special Areas to for a maximum of five years at a time. maintain ecological integrity and protect water quality. The plans guide the SCA’s programs of works in the Special Areas.
Sydney Catchment Authority | Annual Report 2006–07 Principal regulations Consultation during development of the plan highlighted community expectation that the 6 The SCA regulates activities that impact on catchment government act to provide a secure supply of water. lands and water quality. It uses regulations made The NSW Government’s aim is to ensure that reliable under the SWCM Act and planning instruments made supplies remain available and affordable while under the Environmental Planning and Assessment Act populations grow and conditions change. In 1979 (EPA Act). addition, the government aims for this supply to be The Sydney Water Catchment Management delivered in the most cost efficient and sustainable (General) Regulation 2000 allows the SCA to way. Secure supplies of quality water are needed for regulate access and activities in its controlled and drinking, farming, industry and residential use, and Special Areas. The Sydney Water Catchment for sustaining the health of our rivers and wetlands. Management (Environment Protection) Regulation The 2006 Metropolitan Water Plan, already in place, 2001 allows us to protect water quality and manage identifies actions to secure water for Sydney’s the catchments by exercising certain regulatory future, by increasing recycling, reducing demand, functions under the Protection of the Environment and increasing supply. For the SCA, this involves: Operations Act 1997 with regard to non-scheduled premises and activities. • accessing deep water in our dams Under Section 117 of the EPA Act, the SCA is able to • developing options for increasing water influence development in the catchments and transfers from the Shoalhaven council amendments to local environmental plans • preparing to tap into groundwater reserves if (LEPs). The purpose is to ensure the plans contain needed to respond to worsening drought adequate measures to protect the catchments and conditions water quality. • researching the impact of climate change on The SCA is managed by the Chief Executive in water supplies accordance with policies and directions as • implementing new environmental water releases determined by the Board who is also subject to any from dams to improve river health which require direction of the Minister for Climate Change, building new outlet works at several dams and Environment and Water given in accordance with identifying works that may be required to weirs the SWCM Act. downstream of these water supply dams to allow the passage of the flows and fish past Our responsibilities under these barriers. the State Plan The State Plan, A New Direction for NSW, was launched by the Premier, the Hon Morris Iemma, on 14 November 2006. The State Plan sets out five areas of activity, including ‘Environment for living’ in which the government commits to protect the environment while delivering practical solutions that maintain reliable supplies of water and energy for both city and country.
Sydney Catchment Authority | Annual Report 2006–07 Our key areas of performance
The SCA’s Business Plan 2002 – 2007 sets direction and guides development of annual work plans and associated budgets. Performance for 2006–07 is highlighted below. 7 Table 1: Key performance indicators 2006–07
Key performance indicators KRA Actual Actual Actual Actual Actual Target 2002–03 2003–04 2004–05 2005–06 2006–07
Operational
Compliance with Bulk Water Supply 02 98.5 94.1 95.8 99.14 99.6 >95 Agreement with Sydney Water (%)
Health-related compliance with 01 100 100 100 100 100 100 Australian Drinking Water Guidelines (%)
Interruption to water supply (hours) 02 Nil Nil Nil Nil Nil Nil
Compliance with Dams Safety 02 100 100 100 100 100 100 Committee (DSC) requirements and Australian National Committee on Large Dams (ANCOLD) guidelines (%)
Operating licence clauses for which 07 90 83 73 88 Audit not 100 there is full to high compliance (%) completed
Environmental
Environmental release compliance 01 99.8 98.6 99.9 100 100 100 with water management licence (%) 02
Catchment management expense ($) 02 34.7 35.2 42.6 44.3 49.8 No target per megalitre of water supplied 03
Water use by SCA 07 Not Not 7,114 2,938 3,599 No target (billed KL head office)* applicable applicable
Social
Hours lost to industrial disputes 06 0 0 0 0 0 Nil per employee
Lost time injuries (number) 06 4 8 10 6 2 Nil
Lost time days (number) 06 140.5 79 216.5 286 161 Nil
Complaints (water supply) 05 Nil Nil Nil Nil Nil Nil from wholesale customers
Economic
Earnings before interest and tax ($m) 03 40.3 37.9 34.0 44.0 48.0 No target
Return on total assets (%) 03 5.6 5.1 4.5 5.3 5.2 No target
Credit rating 03 A A A- Investment Investment Investment grade** grade grade
* Water usage for SCA leased areas is calculated as a proportion of the building’s total water use. ** In 2005–06, with a change of the NSW Government appointed credit rating agency, the mode of reporting the SCA credit rating grade also changed.
Sydney Catchment Authority | Annual Report 2006–07 Report from the Chairman
I am pleased to report that against a backdrop of As testimony to the Board’s driving focus for improved continuing drought the SCA has delivered strong management of the SCA’s capital works program, 8 results during 2006–07. significant engineering projects have been delivered The Board led development of the new Corporate Plan during the year. Through our mature and productive 2007–2012 during the year, as the SCA’s strategic partnerships with the Department of Commerce, as Business Plan 2002–2007 was due to reach the end of our project managers, and our contractors, we its term in June 2007. The Business Plan 2002–2007 successfully completed all works for the deep water was the SCA’s first strategic business plan and has projects at Warragamba and Nepean/Avon dams. provided sound guidance for the organisation over These projects are critical elements of the NSW the past five years. It has provided a springboard for Government’s 2006 Metropolitan Water Plan, which developing the new corporate plan. aims to meet the challenge of securing Sydney’s water supply in the long term and in drought conditions. The Board was ably supported in this work by the Chief Executive together with the Executive and Our Warragamba Dam deep water access project has senior management teams. Staff and external been entered for consideration in the 2007 stakeholders also played significant roles in the new Engineering Excellence Awards (Sydney Division) in plan’s development. the infrastructure project category. This project is a major engineering achievement. It is highly The process for developing the new corporate plan innovative in providing an environmentally began with an extensive examination of the sustainable and very cost effective solution within a potential challenges and opportunities facing us very tight project timeframe while overcoming a over the next five years. Through a wide ranging number of unique engineering design and consultation process the Board established the construction challenges. SCA’s strategic direction for the next five years, validated our vision, role and values and established The Prospect Raw Water Pumping Station was also four corporate goals. The new corporate plan completed during the year. This represents another represents a refinement of the earlier plan and significant engineering success. The pumping continues the overall direction previously set. station will provide an alternative water supply in the event With the guidance of our new plan, and by building of interruption to supply or poor water quality from our culture to achieve greater efficiency and good Warragamba for up to 30 days. outcomes through our strategic partnerships, over the next five years we will continue working towards The SCA continued to play a leading role, in achieving our vision – Healthy catchments, quality partnership with other agencies, in a range of other water – always. Metropolitan Water Plan projects. These included consulting extensively with the community on a new In working towards our vision we continued to approach to operating Tallowa Dam, transferring successfully manage the bulk water supply system water from the Shoalhaven system to Sydney and new and provide a sustainable and reliable supply of environmental flows. bulk raw water to our customers throughout the year.
We continued to respond to key areas of risk in the catchment through our strategic catchment relationships and the activities carried out within the scope of our Healthy Catchments Program (HCP).
Sydney Catchment Authority | Annual Report 2006–07 Our groundwater pumping trials at Kangaloon also At the March 2007 New South Wales state elections, continued during the year. The trials are being the Minister responsible for the SCA, the Hon Bob 9 carried out to monitor groundwater levels, stream Debus, MP, retired as Member for the Blue flow, water quality and the condition of surrounding Mountains. Following the elections the Hon Phil ecosystems and to provide a better estimate of how Koperberg, MP, became the Minister responsible for much water a borefield at Kangaloon is able to the SCA. I wish to thank former Minister Debus for sustainably provide during severe droughts. his efforts and commitment to the work of the SCA The SCA has performed exceptionally well over the and look forward to assisting Minister Koperberg. year, with the Board and the executive continuing On behalf of the Board, I would like to thank the Chief to work effectively together to lead and guide the Executive, Graeme Head, and all of the SCA staff for organisation. their commitment, enthusiasm and hard work during The ongoing severe drought affecting New South the year. Wales continued to place significant strains on the I think it important I acknowledge that Graeme SCA’s storages. On 1 July 2006 the SCA’s storages Head resigned from the role of Chief Executive, on were 41.7 percent of total capacity, while on 30 June 31 August 2007. I wish to thank Graeme for his 2007 they stood at 54.4 percent. During the year significant and valuable contribution to the SCA 175,532 million litres were pumped from the and recognise the strong leadership he provided Shoalhaven system (Tallowa Dam) into the during his term as Chief Executive. We wish him well Metropolitan dams and Warragamba Dam. Water for the future. pumped from the Shoalhaven contributed around 35 percent of total water consumption for the year. This reinforces the critical importance of the Shoalhaven system in augmenting Sydney’s water supply. During the year, water consumption in the Sydney supply area remained constrained, down from a high John Whitehouse point of 626,672 million litres per annum in 2000–01 Chairman to 502,692 million litres in the current year. The efforts of Sydney’s population in complying with water restrictions and reducing water demand are to be highly commended. I wish to thank my Board colleagues for their efforts during the year. They have all made a valuable and significant contribution to the SCA’s success.
Sydney Catchment Authority | Annual Report 2006–07 Report from the Chief Executive
Our achievements during 2006–07 Our focus on protecting and promoting catchment health continued during the year largely through 10 The SCA has achieved significant outcomes during our ongoing partnerships with landholders and the past year, given the challenges posed by the other stakeholders in the catchments. We also unbroken drought. We have continued to work developed the Raw Drinking Water Quality successfully and cooperatively with other NSW Management Framework 2007–2012 which Government agencies to address those challenges. provides guidance about the tools and systems we We have delivered on significant elements of the use to deliver water quality outcomes and to NSW Government’s Metropolitan Water Plan, sustainably manage the catchments. including completing the deep water access On 1 January 2007 the Drinking Water Catchments projects at Warragamba Dam and at Nepean and Regional Environmental Plan No 1 (REP) was Avon dams. Completion of these projects means implemented and the SCA developed and delivered a that approximately six months of water supply has comprehensive training program for councils on the been added to the system and about 40 billion litres REP during the year. This has been another major step a year to the available supply over the long term. in implementing tools to help better manage our Our capacity to significantly input to processes and catchments. deliver projects as part of the Metropolitan Water We have continued to build a better and more Plan has been a major achievement for the SCA. structured scientific capability with the results of Our reputation as a ‘can do’ organisation has been scientific research being used to inform our enhanced both within and outside government. catchment management initiatives and make Also noteworthy was the completion of the Prospect decisions about the supply of quality bulk raw water Raw Water Pumping Station on time and within to our customers. budget. Delivery of this project means that we have an We achieved another major milestone during the year alternative water supply for up to 30 days in the event when around 40 staff from the SCA’s Kenny Hill and of interruption to supply or poor water quality from Cordeaux Dam offices moved into new office Warragamba Dam. accommodation at Campbelltown, continuing almost We also continued our investigations into the 100 years of Water Board, Sydney Water, and more possible use of groundwater to supplement supply recently, SCA staff occupying offices in the Macarthur during severe drought with positive results. Our region. investigations will continue into 2007–08. The following achievements, which are grouped under the key result areas of the Business Plan 2002–2007, demonstrate some of the highlights of the past year. Highlights for the SCA Division of the Crown are reflected within our key result area – dynamic, supportive workplace. Details about these achievements can be found throughout the body of this report.
Sydney Catchment Authority | Annual Report 2006–07 Table 2: Highlights for 2006–07
Key result areas Achievements 11
Threats to water • Released the SCA’s Raw Drinking Water Quality Management Framework quality minimised • Continued major roll out of catchment works through the Healthy Catchments Program including delivering new Special Areas plans of management, and achieving excellent results under the riparian grants programs and the Catchment Protection Scheme • Delivered the first phase of the Drinking Water Catchments Regional Environmental Plan No 1 (REP) including preparing REP development assessment tools, developing a decision support system for rectification planning, and delivering comprehensive training and education programs to councils
Sustainable and • Monitored and reconfigured the water supply system to maximise supply reliable water supply and minimise spillage during drought • Finalised supply agreement with Shoalhaven City Council • Delivered Warragamba and Nepean/Avon deep water access projects specified in the Metropolitan Water Plan • Continued detailed investigations into groundwater • Delivered Prospect Raw Water Pumping Station on time and on budget • Continued on schedule with major upgrade projects at Warragamba Dam • Hosted the Australian National Committee on Large Dams 2006 Conference
Commercial success • Met key commercial targets for the year • Maintained investment-grade credit rating • Improved overall management of capital expenditure program and developed effective relationships to support capital projects • Successfully developed the Corporate Plan 2007–2012
Building and • Designed unique program to monitor movements between surface and groundwater sharing knowledge to study impacts of longwall mining in Special Areas • Hosted a Cooperative Research Centre for Water Quality and Treatment technology transfer workshop on cyanobacteria research • Established baseline monitoring program to inform design of environmental releases from Avon Dam • Began partnership with Department of Primary Industries to deliver education programs to graziers • Supported NSW Government’s Water for Life Education Program
Sydney Catchment Authority | Annual Report 2006–07 Key result areas Achievements 12 Results through • Sustained major focus on engaging with the community on Metropolitan Water Plan relationships projects • Developed Rural Living Handbook in partnership with Goulburn Mulwaree Council • Kept the community informed through media, website and publications on issues that affected them • Continued our leadership role on various strategic inter-agency forums that focus on long term reliability of Sydney’s water supply and environmental planning
Quality systems • Achieved 88 percent full to high compliance with audited operating licence conditions and processes (34 full and five high of 44 conditions audited) • Achieved 100 percent compliance with water management licence conditions • Achieved 100 percent compliance with dam safety requirements • Refined project management methodology to meet business needs • Began stage two of leasing Braidwood properties • Relocated staff from Cordeaux and Kenny Hill to new office accommodation in Campbelltown • Focused efforts to reduce impact of SCA activities on the environment through minimising waste, saving water, and energy consumption strategies
Dynamic, supportive • Established new occupational health and safety management system workplace • Sustained no new lost time injuries at work during the year • Began review of performance management system to include a team based rewards and recognition scheme • Introduced new employee assistance program that provides greater access for all employees • Delivered a comprehensive range of training programs to support skill and capability development for current and future needs
Sydney Catchment Authority | Annual Report 2006–07 Our focus for 2007–08 During the year ahead we will also focus our efforts to further improve our business management During the year ahead, we will be working towards 13 processes and systems in order to gain both achieving the strategic direction set by our new efficiency and effectiveness in operations. Corporate Plan 2007–2012. Our efforts will be directed to delivering the four new corporate goals The SCA has made significant achievements over and associated intended outcomes as articulated in the past five years in our quest to achieve our vision the corporate plan. – Healthy catchments, quality water – always. Our Business Plan 2002–2007, which reached the end of We will continue to work collaboratively with other its term in June 2007, has provided solid guidance government agencies to bring the NSW for our efforts during this time. Our people have Government’s Metropolitan Water Plan projects to gained very high levels of expertise and consistently fruition including finalising options for the demonstrate extraordinary levels of commitment to Shoalhaven transfer system, investigations into the the organisation. These characteristics together with potential use of ground water and preparing for the guidance provided by our new Corporate Plan new environmental water releases from the Upper 2007–2012 place us well to meet the challenges of Nepean dams. the years ahead. Significant effort will be channelled into longer The SCA has had a very successful year during term water supply system planning, including 2006–07. I would like to take this opportunity of developing options for the future of the Upper recognising our former Chief Executive Graeme Canal and the Blue Mountains’ water supply. Head, who resigned from the SCA in August 2007. The SCA will commence preparing for the Under Graeme’s leadership the SCA has made Independent Pricing and Regulatory Tribunal’s next significant achievements and he inspired our efforts price review which will establish our prices to apply during his six years as the SCA’s Chief Executive. from 1 July 2009. This will require a solid and focused I would also like to take this opportunity of effort from all parts of the organisation. acknowledging the support of the Board and to We will continue to focus on protecting and thank our staff for their ongoing dedication to the improving catchment health through our Healthy SCA and the realisation of our goals. Catchments Program and the ongoing roll out of tools and programs to support the successful implementation of the REP. An area of attention in the coming year will be our ongoing research into the actual and potential impacts of underground coalmining on the SCA Special Areas, Ian Tanner and water supply infrastructure and yield. We will also Acting Chief Executive continue to work with other agencies towards a more effective risk-based approach to assessing impacts of mining. Two major 2007–08 projects that will have positive impacts for our staff are the completion of the Warragamba Dam visitor and operations building and the relocation of the Penrith head office to the new Penrith Government Office Building. We are anticipating completing both of these projects in the coming year.
Sydney Catchment Authority | Annual Report 2006–07 Corporate governance
Our Board As at 30 June 2007, the SCA Board members were: 14 The SCA Board: John Whitehouse – Chairman Graeme Head – Deputy Chairman and • determines the policies and long-term strategic Chief Executive (ex-officio) plans of the SCA John Asquith • endeavours to ensure the SCA meets all public Kerry Chant health and environmental requirements set out Maggie Deahm in the operating licence and any relevant Andrew Fletcher instrument John Landau • oversees the effective, efficient and economical Sara Murray management of the SCA Kenneth Wheelwright • prepares the annual report of the SCA required For full details of Board members and their under the Annual Reports (Statutory Bodies) Act qualifications see Appendix 4 (page 138). 1984, and such reports as the SCA is required to furnish under the Sydney Water Catchment Management Act 1998 (SWCM Act) Attendances at Board meetings • prepares a statement of financial framework for The Board usually meets 11 times a year – from adoption by the Minister and the Treasurer. February to December. When necessary, the Board also considers matters out of session. In 2006–07, the Board met 12 times, and it met once with the In exercising its functions the Board has a duty to Board of Sydney Water Corporation. Details of endeavour to ensure that the water supplied by the attendance at Board meetings are found in SCA complies with appropriate standards of quality. Appendix 5 (page 141). The Board is appointed by the Minister in accordance with section 7 of the SWCM Act. Standing committees Collectively, members must have expertise in the Over part of 2006–07, the Board continued to areas of environmental protection, public health, operate through three standing committees: the and any other areas the Minister considers Business Planning Working Group, the Audit necessary to enable the SCA to realise its objectives. Committee and the Prosecutions Committee. The Board includes the Chief Executive, an elected councillor from a local government area within the The Business Planning Working Group continued catchments, a nominee from the Nature its work in developing the SCA Corporate Plan Conservation Council of NSW, and a nominee from 2007–2012 which was approved in May 2007. the NSW Farmers’ Association. The Audit Committee consists of five Board The SCA Board protocols set out the framework of members and ensures the effectiveness of the SCA’s responsibilities under which the Board operates. internal and external audit processes and considers Board members are obliged to adhere to these issues raised by the auditors. protocols. Further responsibilities of the Audit Committee were to ensure the SCA’s accounting policies and principles are in accordance with the stated financial reporting framework and that the Board is kept informed of significant issues raised by the auditors, management or committee members.
Sydney Catchment Authority | Annual Report 2006–07 The Board also has a Prosecutions Committee The Board recognises that growing urban, rural and comprising four members which meets as matters industrial development is increasing the risks to 15 arise. Its role is to consider decisions to prosecute water quality and catchment health. Meeting the under the SCA’s Act and regulations. The committee growing demand for clean, reliable water across was not required to meet during 2006–07. Sydney requires long-term planning and a focused Board members’ record of attendance at standing catchment management program. In April 2007 the committee meetings is contained in Appendix 5 (page Board established the Catchments and Water 141). Quality Committee. Comprising five members, the objective of the committee is to help the Board do its work in relation to catchment operations, Significant committees management and protection, science and planning. established or abolished In April 2007, the Board reviewed the Audit Significant committees are defined as those Committee’s function. In keeping with contemporary established by the SCA Board or under memoranda corporate governance, the Board agreed to broaden of understanding between the SCA and other the committee’s functions to that of an Audit and agencies. Risk Committee. The objective of the committee is to provide independent assurance and assistance to the The Business Planning Working Group completed its Board on the SCA’s risk, control and compliance work when the Board approved the SCA Corporate framework, and its external accountability Plan 2007–2012 in May 2007. responsibilities.
Above: The SCA Board. Back row – John Landau, Andrew Fletcher, John Asquith Mid row – Sara Murry, Kerry Chant, Kenneth Wheelright Front row – Graeme Head, John Whitehouse, Maggie Deahm
Sydney Catchment Authority | Annual Report 2006–07 Our organisation
SCA Executive 16 The qualifications and experience of the Board and Executive combine to provide the SCA with sound governance and management. Details of Executive members’ qualifications are located at Appendix 6 (page 141).
Minister for Climate Change, Environment and Water
Graeme Head* SCA Board Chief Executive
General Manager General Manager General Manager Catchment General Manager General Manager General Manager Environment and Policy and Operations and Corporate Services Bulk Water Dam Safety Planning Governance Major Projects
• Environment • Catchment • Corporate • Bulk Water • Government • Dam and Planning Operations and Services Management and Community Surveillance Management Major Project Management • Asset Relations • Compliance Management • Education and • Human Performance • Policy and Services Visitor Services • Catchment Resources • Water Supply Regulatory • Geotechnical Operations Affairs • Science and • Information • Business • Survey North West Management • Economics and Research Improvement • Energy • Catchment and Performance • Stakeholder Management • Statutory Operations Technology Relations and • Strategy Planning South East • Property and Compliance Planning • Compliance Administration and Risk • Metropolitan Management • Information • Finance Water Plan and Incentives • Procurement • Corporate Program Office • Programs • Legal
Barrie Turner George Dodds Lea Rosser Ian Tanner Andrew Bryan Ian Landon-Jones
Figure 2: SCA organisational structure as at 30 June 2007
*Graeme Head resigned from the role of Chief Executive, effective 31 August 2007.
Sydney Catchment Authority | Annual Report 2006–07 Code of conduct committee (the Risk and Incident Management Committee) to improve efficiency and exploit the The SCA’s code of conduct is modelled on that of 17 synergies of these two functional areas. The the Premier’s Department (2005) and contains the Business Resilience Executive Steering Committee following principles: oversees direction in managing risk, including • responsibility to the government of the day security, incident and continuity management and to the Sydney Catchment Authority issues. • respect for people In 2006–07, we began a full review of our corporate • integrity, professionalism and the public interest risk register to realign it with the SCA’s new • responsive service corporate plan. It includes re-identifying and assessing the level of corporate risk. This process • economy and efficiency allows for the development of new risk treatment • care for the environment. plans. Work also began on implementing a more The code of conduct is available to staff on the reliable and efficient process for monitoring and intranet. reporting on risk treatment actions through the use of a new compliance database. Managing risk The SCA defines risk as the chance of something Managing security happening that will have an impact on the A wide spectrum of security threats poses varying achievement of the SCA’s corporate goals. Risks are levels of risk to the SCA’s assets, staff, information measured in terms of likelihood and consequences, and business processes. We continued to manage and generally expressed in terms of a possible these risks through continual improvement in event. physical, logical and procedural security. The SCA Risks are managed through a corporate framework Security Management Framework has been updated that is consistent with Australian New Zealand to reflect the new Standards Australia Security Risk Standard AS/NZS 4360:2004, which is recognised as Management Handbook, HB 167:2006. A range of a best-practice risk management process. Risks to security plans and operations were also produced as water quality, water supply infrastructure, people required to ensure adequate protection of and business processes are the key risk areas for the infrastructure, catchments and people. SCA. We maintained and improved our relationships with Throughout 2006–07, we used a range of tools and NSW Police at all levels throughout the year. The guidelines within the framework to address specific SCA also consolidated its security guarding services risks. Risk monitoring has been broadened with the to improve efficiencies and the consistency of establishment of the Board Audit and Risk service provided across the SCA. Committee. An internal review of committees and The SCA was successfully certified under International staff working groups was also carried out. The Standard ISO 27001 Information Security Corporate Risk and Incident Management Management. committees were amalgamated into a single
Sydney Catchment Authority | Annual Report 2006–07 Managing incidents Internal audit 18 and continuity Findings of internal audit reviews help us strengthen our business by improving our practices The SCA responded to operational, environmental, and procedures. Competitive tendering resulted in safety and security-related incidents during 2006–07. the appointment of Deloitte Touche Tohmatsu as The incidents were successfully managed using the the SCA’s internal auditor from July 2006. In 2006– SCA’s corporate incident management processes and 07 the auditor completed a comprehensive suite of plans. audit reviews of the following business areas: Incident reporting processes were progressively • accounts payable improved during the year to provide greater understanding of risk and improved remedial • contractor performance management (under actions. A range of incident management plans and way) procedures, including a pandemic influenza • fleet management response plan, were reviewed and developed. The • governance awareness SCA also began a review of its business continuity • occupational health and safety (OHS) arrangements to ensure that in the event of a management significant incident, any disruption to critical processes is minimised. • payroll • processes surrounding debt draw-downs and A successful inter-agency exercise was held between general ledger budget allocations the SCA, NSW Health and Sydney Water to test response arrangements for a serious water quality • purchases and payables incident. An exercise was also held to test the • SCA access to DRIVES (Roads and Traffic Wingecarribee Dam Safety Emergency Plan, which Authority database) highlighted required improvements to both the • software asset management review procedures and the manual. • redundancy process Working with Sydney Water and NSW Health, • workers compensation. the SCA responded successfully to a turbidity incident in Warragamba Dam in June 2007. Audit recommendations continue to be addressed with progress monitored and reported to the The SCA continued to be an active member of the Board’s Audit and Risk Committee. Commonwealth Trusted Information Sharing Network for Critical Infrastructure Protection and the Water Services Infrastructure Assurance Advisory Group.
Sydney Catchment Authority | Annual Report 2006–07 key result area Threats to water 19 01 quality minimised
Above: SCA officers work closely with farmers to protect water quality in the catchments.
Sydney Catchment Authority | Annual Report 2006–07 Key result area 01 – Threats to water quality minimised 20 So that we continue to meet agreed water quality criteria in the short and long terms, the SCA will achieve the following outcomes over the period 2002–07: • threats to water quality will be identified and mitigated according to risk • sewage discharges to catchment waters will be reduced • the quality of stormwater and other urban run-off will be improved • the sediment load on catchment waters will be reduced • the risk of adverse impact of fires on water quality will be reduced • new development will have a neutral or beneficial impact on water quality • storages and infrastructure will be operated to deliver water to agreed quality criteria • catchment health will be improved through sustainable land use and vegetation management.
Throughout 2006–07 we continued to protect and Raw drinking water quality promote catchment health and minimise threats to water supplies through productive partnerships management framework with landowners and managers, responsible land The Raw Drinking Water Quality Management use, and sound catchment management. Framework 2007–2012 provides a comprehensive Sydney’s drinking water catchments are home to overview of the tools and systems SCA uses to farming, industry, business, recreation and housing. manage water quality. It shows the links between They also provide significant transport corridors. how we identify, plan and deliver water quality Protecting the health of these catchments is outcomes. The framework was publicly exhibited in essential to maintaining sustainable, quality raw mid 2007, and has since been submitted to the water supplies. The SCA’s Healthy Catchments Independent Pricing and Regulatory Tribunal (IPART) Program (HCP) and the Drinking Water Catchments as required by the operating licence. It is available on Regional Environmental Plan No 1 (REP) are the the SCA website. chief means through which we achieve this. The framework has been structured to reflect the The lands immediately surrounding drinking water decision-making processes the SCA undertakes sources are called Special Areas and are the most before implementing actions to address water actively protected lands in the catchments. These quality. SCA has followed the approach set out in lands are managed, in conjunction with the the Australian Drinking Water Guidelines and the Department of Environment and Climate Change Australian and New Zealand Standard 4360: 2004 (DECC), through Special Area plans of management Risk Management and has categorised its systems to protect quality water and ecological values. and processes into four key functions – identify and assess, plan, implement, and review (see Figure 3). In 2006–07 we continued to upgrade and develop remote-sensing data gathering and operational programs to enhance catchment health.
KRA 01 Sydney Catchment Authority | Annual Report 2006–07 1 Identify 2 plan 3 Implement 4 review and assess 21 Risk to water quality Managing SCA Catchment actions Operating and water resources management licence Catchment-to-tap Development and catchment audits risk assessment Corporate planning assessment Catchment management Corporate Risk Service Delivery Strategy Current recommended reviews Management Framework practices Asset Strategy Review of Drinking Water quality Healthy Catchments Water Catchments risk assessment Dam and delivery Program network planning Regional Environmental Drinking Water Education Plan No 1 Catchments Regional Water supply and strategic operations Optimising operation Grants Evaluation and Environmental Monitoring Program Plan No 1 planning of the supply system Review of Water Quality Incident planning In-lake treatment Monitoring Monitoring Program Water quality monitoring Catchment planning Water source and off-lake selection Risk reviews Drinking Water Hydrometric monitoring Science reviews Catchments Regional Standard operating Real-time monitoring Environment Plan No 1 procedures (SOPs) Project evaluation and review Catchment monitoring Rectification action Site response plans Science and research planning Environmental flows Corporate planning review Strategic land and water Groundwater capability assessments Community involvement in SCA program reviews Catchment Information System SCA Education Program review Strategic Plan for Science
SCA Education Program
Feedback
Figure 3: SCA raw drinking water quality risk planning and monitoring cycle
KRA 01 Sydney Catchment Authority | Annual Report 2006-07 Guiding development In 2006–07 we prepared a refined and simplified SLWCA methodology (following a review of 22 and rectification previous methodologies piloted in the Wingecarribee and Nattai sub-catchments). We The Drinking Water Catchments have prepared initial SLWCA maps for a number of Regional Environmental Plan No 1 (REP) LEP zones for councils to use in reviewing their LEPs. The REP commenced on 1 January 2007 and We will finalise the SLWCA methodology in 2007–08 replaced State Environmental Planning Policy No 58 and provide detailed SLWCA maps to councils. We (SEPP 58) as the legal instrument that controls are also developing a guideline to help councils development and activities in the catchments. review the written provisions of their LEPs to reflect the SLWCA requirements. The REP has the following key elements: • setting water quality objectives in line with the Rectification action plans NSW Government’s priorities for water supplies The REP requires the SCA to prepare rectification • requiring new developments to have a neutral or action plans (RAPs) to rectify the negative impacts beneficial effect (NorBE) on water quality of existing development and activities in the • introducing strategic land and water capability drinking water catchments. assessments (SLWCAs) We have developed a decision support system for • developing rectification action plans (RAPs). developing a RAP covering the entire catchment. The system maps and ranks the sources of four Requirements for a neutral or beneficial priority pollutants (pathogens, total phosphorous, effect on water quality total nitrogen and suspended solids). It The SCA has developed tools and guidelines and incorporates 12 modules, each dealing with a delivered comprehensive training to help local different type of land use. We have already councils and government agencies assess whether comprehensively analysed relevant input data developments and activities would have a neutral for all 12 RAP modules. or beneficial effect (NorBE) on water quality. For We will consult with councils, agencies and other more information see case study on page 57. stakeholders on the decision support system and input data. Once feedback has been received, the Water quality objectives modules will be fine-tuned and the RAP will be The REP sets water quality objectives based on the exhibited for public comment. recommendations of the former Healthy Rivers Commission and updates those to reflect changes in Current recommended practices the national water quality guidelines. The values apply The SCA developed an endorsed list of current to both surface water and groundwater within the recommended practices (CRPs) for a wide range of catchments. The SCA reports against the achievement activities including agriculture, stormwater, roads, of these water quality objectives six months after each composting, farming animals and keeping horses, catchment audit. which is available on the SCA website. Copies of the CRPs are available at our head office. The Strategic land and water capability application of these CRPs will help minimise the assessments impact of developments and activities on water The SCA is developing SLWCAs to help councils quality. and to ensure that future land use in the In 2007–08, we will further refine the list of CRPs and catchments is consistent with the REP. The SLWCAs develop new CRPs as needed. The SCA is currently will help councils review their local environmental developing a rural residential design guide to help plans (LEPs). developers and councils ensure new sub-divisions in rural areas have a neutral or beneficial effect on water quality.
KRA 01 Sydney Catchment Authority | Annual Report 2006–07 Assessing development applications Improving priority setting for While both SEPP 58 and the REP include the catchment actions 23 concept of NorBE, under the REP there are no During 2006–07 the SCA established and trailed a new schedules that identify which developments should priority setting process for future catchment actions. be referred to the SCA. Councils must undertake the The process built on the interim outputs from the initial NorBE assessment and identify which high- rectification action planning (RAP) decision support risk developments require referral (see case study system by overlaying a range of other considerations page 57). including priorities set by the SCA’s partners such as In 2006–07 the SCA received 674 development the catchment management authorities (CMAs), and proposals, of which 553 were development the extensive knowledge and experience of SCA staff. applications under Part IV of the Environmental The result was a priority list of issues and actions. Planning and Assessment Act 1979 and 121 were The draft process will be further refined in development activities under Part V of the Act. Of conjunction with preparation of the RAPs required the Part IV development applications assessed, 69.2 by the regional plan. percent were assessed within statutory timeframes. The outcomes of these assessments are conditions Improving sewage management of concurrence that are rolled into council The SCA helps councils manage sewage in the conditions of development consent to ensure a catchments to reduce the risk of pollution to water sustainable NorBE outcome. supplies. In two instances during the year SCA refused concurrence to development applications where it Improving sewage treatment was not possible to modify the developments to The SCA is providing $21.34 million over seven achieve NorBE. There have only been eight years under its Accelerated Sewerage Program. The concurrence refusals by the SCA since 1999. program is managed by the Department of Water and Energy (DWE) under the NSW Government’s Healthy Catchments Program Country Towns Water Supply and Sewerage Scheme. In 2006–07 the SCA provided $1.6 million to fund All major catchment works are rolled out as part of eight council projects to upgrade sewage treatment the SCA’s Healthy Catchments Program, grouped plants and provide sewerage to unsewered villages. under water quality management areas: The following milestones were reached: • sewage • Bowral sewage treatment plant (STP) • riparian areas upgrade was completed in 2006 • rural lands • first stage of the Lithgow STP upgrade • SCA lands was completed in 2006 • stormwater • Goulburn STP upgrade under way • compliance (regulation) and will be completed late in 2007 • catchment information. • Bundanoon STP upgrade and Lithgow STP (Stage 2) approved in 2007 and construction will We deliver these programs by way of incentives, begin at both in 2008 sharing information, education and collaboration. Major stakeholders are CMAs, other government • environmental assessments for Robertson, Taralga agencies including councils, community groups and and Kangaroo Valley sewage schemes will be industry groups (see KRA 04). finalised in 2007 and construction will start in 2008–09 • ultraviolet disinfection was included in the Bowral STP upgrade and is proposed for future upgrades at Goulburn, Berrima, Robertson, Taralga and Kangaroo Valley.
KRA 01 Sydney Catchment Authority | Annual Report 2006–07 Improving sewage reticulation along Brogers and Barrengarry Creeks in Kangaroo Valley have responded positively. 24 We continued our work with councils to identify the causes and relative risks of overflows from reticulated sewage schemes. As a result we will be Catchment Protection Scheme able to prioritise sewer rectification actions in The Catchment Protection Scheme primarily helps 2007–08 on the basis of risks to water quality. landholders repair historic, large-scale erosion to reduce sediment and other pollutants entering The upgrade of the Goulburn central business district waterways. The long-running grants program is (CBD) sewer system continued during the year, with a managed by the Hawkesbury Nepean and Southern further 2.3 kilometres of sewer main refurbished at a Rivers catchment management authorities with a cost of $175,000. In 2007–08, Stage 5 of the program contribution of $780,000 from the SCA in 2006–07. will complete the CBD sewer refurbishment. Landholders also contribute to the works on their land. Helping councils manage onsite sewage The scheme achieved an exceptional amount of There are an estimated 18,000 onsite sewerage work in 2006–07, with the repair of more than 5,000 systems in the drinking water catchments. The SCA hectares of medium to large scale erosion. established the Onsite Sewage Management Grants program in 2005 to fund councils up to half the cost Other riparian projects of inspecting and regulating septic systems. Those A section of Brogers Creek in the Kangaroo Valley participating are Wollondilly, Palerang, was eroding up to seven metres in high flows. Large Wingecarribee, Goulburn Mulwaree, Shoalhaven amounts of sediment were being washed into the and Upper Lachlan councils. creek and the nearby Kangaroo River. The SCA has provided $200,000 funding over two years to About 10 percent of the 4,075 onsite sewerage stabilise the site. The project, managed by the systems inspected during the year had serious failures. Southern Rivers CMA, used an innovative engineered Councils first negotiate with the owners and, where log jam approach. Construction was completed in repairs have not subsequently occurred, take 2006 and two major rainfall events in 2007 regulatory action. Before this program was established demonstrated the structure’s ability to withstand councils had limited capacity to undertake onsite high flows and prevent future erosion. inspections. The full impact of the program, which began in 2006, will be evident in coming years. In June 2007, the SCA completed a riparian project on a severely degraded section of Farmers Creek at Managing riparian lands Lithgow. The project involved treating and disposing The SCA riparian strategy reduces stock access to of willows and woody weeds, building 2.2 kilometres waterways, revegetates degraded riparian zones, and of riparian fencing, revegetating the riparian zone, controls erosion to reduce the risk of pathogens, and providing alternative water supply for livestock nutrients and sediment entering the water storages. by extending the town water supply. The SCA continued to help community groups Riparian Management Assistance Program undertake projects and develop knowledge and In 2006–07, the Riparian Management Assistance skills that contribute to water quality. During Program approved funding for 20 projects with a total 2006–07, we funded six grants totalling $43,309. value of $719,193. The program focuses on excluding Funded activities included stream bank stock and restoring riparian zones. The program began rehabilitation and minor erosion control. An in 2006 and is available in high priority sub- educational resource for over 50 Blue Mountains catchments. It aims to achieve healthy stream lengths bushcare groups was supported. by encouraging work on adjoining properties. The SCA has continued to develop its riparian Projects take many months to prepare and complete grants evaluation and monitoring project, with data and it is expected cumulative results will become collected now integrated into a graphic map evident in the coming two years. Together with work database. By recording the condition of the site committed to in 2005–06, over 45 kilometres of before and after the project, and tracking over time, streambank are now being restored. Landholders the results of riparian restoration along waterways will be readily identified.
KRA 01 Sydney Catchment Authority | Annual Report 2006–07 Special Areas Managing fire in Special Areas Special Areas surrounding our water storages help Effective fire management is crucial to maintaining 25 protect water quality by providing a filter for water good water quality and healthy ecosystems. The flowing into the dams. Some Special Area lands seasonal fire team for Special Areas is operated by have been protected for water supply purposes for the DECC and funded by the SCA to the sum of over 100 years and contain significant pristine $1 million per year. The program aims to control 80 native ecosystems. Around 65 percent of the 3,700 percent of wildfires to less than 10 hectares and kilometres of Special Area lands have been gazetted respond to 100 percent of fires within 30 minutes as national parks under the National Parks and on high fire-danger days. In 2006–07, the crews Wildlife Act 1974. responded to 28 fires in the Special Areas and 25 A further 25,235 hectares of Metropolitan Special Area (89 percent) were contained to less than 10 lands in the Upper Nepean Catchment were hectares. All fires on high fire-danger days were transferred to the Department of the Environment and attended within 30 minutes. Conservation (now the Department of Environment In 2006, the SCA released our draft policy on fire and Climate Change (DECC)) in November 2006 (see management for water quality and quantity in KRA 07). A draft plan of management has been natural areas for external peer review. The policy is developed for the lands. The transfer is part of the our first major effort at documenting the significant NSW Government’s commitment to creating an expertise of our staff in managing fire for water unbroken chain of reserves from the Victorian to quality outcomes in natural areas. Results of the Queensland borders. review are expected to be available in late 2007. Managing the Special Areas Using satellite imagery, the SCA has mapped the estimated fuel loads, in tonnes per hectare, within The Special Areas Strategic Plan of Management the Special Areas. Understanding the distribution of guides the management of Special Areas. The work fuel enables better response to wildfires and of the SCA and DECC, as joint sponsors, protects planning of hazard reduction burns. The SCA will catchment health and water quality. The plans are produce a fuel map each summer. implemented through the agencies’ joint management agreement. Mining in the Special Areas The SCA funds DECC’s activities in the Special Areas, A review was conducted on the future management under a service contract valued at over $3 million of impacts of mining in the Special Areas to ensure per year for land management programs and the sustainability of water resources. seasonal fire-fighting teams. The key issues identified in the review relate to how Following broad consultation, the review of the the SCA can: Special Areas Strategic Plan of Management and the Wingecarribee Swamp and Special Area Plan • provide sound advice to government that of Management was finalised and approved in adequately articulates the risks and probability February 2007, as required by the SCA’s operating of impacts on our ability to supply water licence. The plans were endorsed by the Minister to • contribute to government approvals and the run for 10 years, pending the outcomes of a five- regulation of mining operations in the Special year review in 2012. The revised plans are targeted Areas over the next three years and under the more closely on managing the Special Areas, and on new Part 3A planning approval process. the information required to implement targeted The immediate areas of focus for the SCA are: adaptive management. • undertaking an immediate and extensive Wingecarribee Swamp and Special Area science and research program to determine long-term impacts of mining on water resources Wingecarribee Swamp in the Southern Highlands is a and related environments unique peat swamp and home to several endangered • compiling comprehensive baseline information species. Severe infestations of pussy willow and on surface and groundwater to determine the blackberry in and around the swamp prompted the attributes and therefore the environmental development of a four-year weed control program with sensitivities of areas proposed for mining a total budget of $3.8 million. After two years just over half the swamp has been treated. Monitoring of results to date shows major improvements to swamp ecology. KRA 01 Sydney Catchment Authority | Annual Report 2006–07 • contributing to the whole of government review In 2006–07, SCA contributed $36,400 to a joint to improve the assessment and conditioning of project with the Department of Primary Industries 26 mining approvals – developing a risk (DPI) to rehabilitate Black Bobs Creek, in the management approach and implementing water Belangalo State Forest. The project removed coal monitoring guidelines for the mining industry stockpiles and mining infrastructure, concealed • doing further research into adequacy and exposed coal seams and generally rehabilitated the long-term effectiveness of remediation site. Half-yearly inspections are carried out to techniques. ensure rehabilitation is successful. The SCA also contributed $100,000 to a joint DPI Southern Coalfields Inquiry project to remove arsenic-rich tailings at the Silver In November 2006 the NSW Government and Colon Peaks sites in the Yerranderie silver announced the independent inquiry into mining field. Over 100 tonnes of arsenic rich tailings underground coalmining in the Southern Coalfields were removed, encapsulated into an inert mixture, (stretching from Sydney to the Southern Highlands). and disposed of in a licensed treatment facility The SCA began preparing a formal submission to outside SCA catchment areas. the inquiry around key issues it has identified: • known impacts of mining to surface waters and Land use mapping groundwater, consequent loss of flows to The SCA engaged DECC to update the DPI’s draft sections of water courses, and localised changes land use mapping layer. We now have land use to water quality mapped for 99.3 percent of the SCA area of • unknown impacts of mining to long-term water operations. The SCA also contracted the DECC to supply operations and yield analyse land-use change from 2001–06 for urban and peri-urban areas within the SCA area of • the effectiveness and appropriateness of operations. remediation within Special Areas Farm dams are an indicator of the pressures on • capacity and capability across agencies to water quality and quantity. During the year, the SCA manage and regulate mining operations in terms mapped the distribution, surface area and of resources and expertise estimated volume (at full storage) of farm dams • processes for identifying and managing risks in within the catchments. A report of baseline data has the absence of scientific certainty been compiled which will enable trend analysis in • the need to focus on the avoidance of impacts the future. rather than reliance on rehabilitation/ remediation as the principal mitigation strategy Managing SCA lands at Braidwood • the need for much improved monitoring The SCA owns 67 rural properties in the Braidwood particularly relating to managing water area. Our land management activities help sustain resources (surface and groundwater) before, the lands for better water quality. during and post-mining. We reviewed our management of the land and, as a The inquiry is expected to provide a foundation for result, are in the process of leasing the land. Stage 1 assessing and managing underground coalmining (of four stages) of the Braidwood Land Leasing in the Southern Coalfields. Program was implemented in 2005–07. Of 11 properties offered, eight were successfully leased. Managing rural lands Lessees have begun activities in line with their approved five-year property management plans. Rehabilitating derelict mines Quarterly inspections will ensure lessees are The SCA works with other agencies to rehabilitate managing their land in accordance with the plans. abandoned mine sites to stabilise and control Special leases have also been agreed with the sediment and minimise run-off from the mines Braidwood Central School, which uses one property which impact on water quality. as part of its agricultural education program, and Wildcare Queanbeyan Inc, which uses a property as a release site for injured native animals. Stage 2 of the program began in April 2007 with KRA 01 17 properties offered for lease. Sydney Catchment Authority | Annual Report 2006–07 27
Above: The SCA chemical collection program collected 38,200 kilograms of hazardous chemicals for safe disposal and recycling
Case study 2006–07 SCA Household Hazardous Chemical Collection Program The SCA completed the 2006–07 Household Chemical Collection Program in coordination with the larger DECC Household Hazardous Waste Program. One-day collection events were held in Braidwood, Crookwell, Goulburn, Picton, Moss Vale and Lithgow. Collections in these centres are important as inappropriate waste disposal from regional population centres and surrounding rural areas can impact on water quality. Without SCA involvement these areas would not be served by hazardous waste collections. Expenditure in 2006–07 was approximately $92,000. A total of 38,200 kilograms of hazardous chemicals was collected from 848 participants in six events. The result for 2006–07 exceeds the previous year when a total of 555 people attended five events and 26,523.6 kilograms of chemicals were collected. A report is being prepared on the collection outcomes and trends. We promoted the program through articles in specialist catchment publications, newspaper advertisements, media releases, and delivering brochures to householders. These mechanisms have been very successful in encouraging people to take part in the collections. Surveyed participants in 2006–07 reported that brochures and newspaper advertisements were the most effective promotional tools. The project has demonstrated positive benefits to catchment health and will continue in 2007–08.
KRA 01 Sydney Catchment Authority | Annual Report 2006–07 Preventing water pollution through Catchment Management (General) Regulation 2000. These included weekend and out-of-hours patrols 28 compliance using vehicle, boat and aerial surveillance, covert The SCA has a regulatory role to protect the surveillance cameras, and joint operations with the catchments from water pollution through the Sydney NSW Police, DPI and DECC. These measures Water Catchment Management (Environment detected numerous incidents of trespass and other Protection) Regulation 2001. Compliance continued illegal activity, which were responded to by issuing to focus on activities with a significant potential for warnings, penalty infringement notices, or taking impact on water quality, including unlicensed court actions. sewage treatment plants, illegal dumping of waste, and illegal land clearing. In addition to enforcement, the SCA installed new gates, barriers and warning signs to prevent illegal To implement the regulation, the SCA builds access to Special Areas. The SCA also continues to partnerships and carries out compliance with other provide educational resources to inform the regulators, including DECC and councils. In 2006– community about restrictions to activities within the 07, the SCA trained over 40 council staff to use the Special Areas. These measures have resulted in a tools and powers available under the Protection of downward trend in the number of trespassing the Environment Operations Act 1997. incidents in the Special Areas over the past two years. The SCA continued funding the operations of the Greater Southern Regional Illegal Dumping (RID) Squad through a $35,000 grant. In April 2007 the Catchment audit 2007 SCA supported the joint SCA/DECC/RID Squad aerial The Sydney Water Catchment Management Act 1998 surveillance program by providing a helicopter to (SWCM Act) requires independent audits of the target illegal dumping in the Southern Highlands. state of the lands that constitute the catchment area of the SCA. The audits are conducted every two The SCA sponsored the Australian Environmental years. The fifth catchment audit will be undertaken Law Enforcement and Regulators Network by the DECC and is due for completion in December Conference in Sydney in November 2006 and 2007. presented a paper at the conference. The 16 indicators used in both the 2003 and 2005 Compliance in the Special Areas audits will again be examined to provide a snapshot To protect the Special Areas from potentially of the condition of the catchments for the period 1 harmful activities, the SCA continued its July 2005 to 30 June 2007. enforcement programs under the Sydney Water The SCA continues to address the 2005 catchment audit recommendations that relate to its operations.
Table 3: Compliance activity over five years Sydney Water Catchment Management (Environment Protection) Regulation 2001 Type 2002–03 2003–04 2004–05 2005–06 2006–07 Clean-up notices 5 8 19 17 6 Notices (s192) requiring information/documents 2 4 2 1 2 Penalty infringement notices 10 7 7 8 1 Pollution prevention notices 1 – – – 3 Littering reports referred to DECC 28 190 154 45 12 Sydney Water Catchment Management (General) Regulation 2000 Type 2002–03 2003–04 2004–05 2005–06 2006–07 Penalty infringement notices 69 79 118 61 30 Warning letters 41 69 105 79 39 Prosecution – 1 4 5 2
KRA 01 Sydney Catchment Authority | Annual Report 2006–07 key result area Sustainable and 02 reliable water supply
29
Above: With the completion of the new Prospect Raw Water Pumping Station, the SCA has boosted security of supply to Sydney.
Sydney Catchment Authority | Annual Report 2006–07 Key result area 02 – Sustainable and reliable water supply 30 So that the security of supply is assured now and in the long term, we will achieve the following outcomes over the period 2002–07: • catchment strategies will be informed by an understanding of the relationship between catchment activities and yield • environmental flows specified in the SCA water management licence will be achieved agreed water deliveries will be met • an agreed long-term demand management strategy will be in place • our dams and delivery systems will be efficient, safe and well maintained.
The year 2006–07 saw a continuation of the Very simply, these storage draw-down rules are used management and upgrade programs for the water to ‘balance’ the air space in our storages to minimise supply network. These programs ensure we are able spills, maximise water supply system yield, and give all to meet our supply obligations to customers and supply points an equal standard of service. The SCA protect and improve river health. The 2006 also uses WATHNET to help predict possible water Metropolitan Water Plan has been reviewed and the supply scenarios. associated projects have progressed well The SCA is a member of the Drought Executive throughout the year. Committee, advising the government and During 2006–07 we worked with other government overseeing the implementation of drought agencies to address the challenges of the drought. management plans for the greater Sydney area. The SCA has 11 main water storages, and in non- The committee’s work is supported by the SCA’s drought times about 95 percent of Sydney’s water joint Drought Management Plan with Sydney Water. supply comes from the five Hawkesbury-Nepean dams: Warragamba, Avon, Cataract, Cordeaux and Nepean. The balance comes from Woronora and Supply of bulk raw water Blue Mountains dams, with supplementation from the Shoalhaven during drought. During the year a to customers total of 176 billion litres was transferred from the The SCA supplied 507,258 million litres of raw water Shoalhaven system. to its customers during 2006–07. Sydney Water’s total consumption was 502,692 million litres. The SCA monitors the rainfall and inflows into the Mandatory water restrictions continued throughout storages, assesses customer needs, and estimates the year. Of the water supplied by the SCA, 99.1 losses to the supply (eg evaporation). Then, using a percent went to Sydney Water, 0.85 percent to group of draw-down rules contained within a complex Shoalhaven City and Wingecarribee Shire councils, computer model (WATHNET), we operate the storages and the balance to our retail customers as shown in to maximise storage and the ability to capture inflows. table 4.
KRA 02 Sydney Catchment Authority | Annual Report 2006–07 Changing dam levels Throughout 2006–07 we met our environmental flow release requirements 100 percent of the time. Available storage in SCA dams on 30 June 2007 was 31 54.4 percent (see figure 4). This was an increase of The continuing drought and associated water 12.7 percent since 30 June 2006 and due mainly to a restrictions meant the Department of Water and wetter than average June. Environment (DWE) agreed to suspend the water management licence condition requiring high-flow Releasing water to the environment contingency release (800 million litres per day for three The SCA’s water management licence sets out the days) from Woronora Dam. Reduced environmental and minimum environmental and riparian flows we are riparian flow releases from the dams in the Hawkesbury required to release from our dams. Nepean River catchment continued. Table 5 shows the water released from SCA dams for all purposes during the year.
Table 4: Bulk raw water supplied over five years
2002–03 2003–04 2004–05 2005–06 2006–07
Customers Millions of litres of water supplied
Sydney Water 631,395 555,649 518,771 522,464 502,692
Wingecarribee Shire Council 4,186 3,442 3,337 3,594 4,221
Shoalhaven City Council 91 85 74 78 77
Direct users - Upper Canal 218 209 179 174 163
Direct users - Warragamba Pipeline 74 78 70 74.5 61
Others 50 106 42 29.5 44
Total 636,014 559,569 522,473 526,414 507,258
2,600,000 Full operating storage 2,400,000 2,200,000 2,000,000 Current available storage 1,800,000 54.4% 1,600,000
es 55% of operating storage 1,400,000 1,200,000 Megalitr 1,000,000
800,000 Available storage 600,000 400,000 200,000 0 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08
Figure 4: Available storage as at 30 June 2007
KRA 02 Sydney Catchment Authority | Annual Report 2006–07 Table 5: Water released from SCA storages for all purposes in 2006–07
32 Purpose of release
Source Customer Environmental Other Uncontrolled Total extractions and ** releases*
Cataract Dam 20,086 237 0 0 20,323
Cordeaux Dam 18,772 347 0 0 19,119
Avon Dam 34,945 0 0 0 34,945
Nepean Dam 100,743 803 0 29,789 131,335
Woronora Dam 9,120 3,563 0 0 12,683
Warragamba Dam 367,471 6,077 2,232 0 375,780
Prospect Reservoir 3,055 0 0 0 3,055
Wingecarribee 180,154 548 183 0 180,884 Reservoir
Fitzroy Falls Reservoir 175,115 12,079 0 604 187,798
Tallowa Dam 164,252 29,270 12,440 492,840 698,802
Medlow Dam, Greaves 4,788 0 0 534 5,322 Creek Dam, Cascades dams
Pheasants Nest Weir 0 2,008 0 47,700 49,708
Broughton Pass Weir 96,449 369 0 31,200 128,018
* Includes all water extracted, released or transferred for immediate or future use by customers. Excludes releases from Pheasants Nest via Nepean Tunnel and releases to retail customers except Wingecarribee Shire Council. ** ‘Other’ includes riparian releases and the portion of environmental water released in excess of licence requirements. Due to operational limitations of the outlets at Warragamba, Fitzroy Falls, Tallowa, Pheasants Nest and Broughton Pass storages, total releases were in excess of requirements.
KRA 02 Sydney Catchment Authority | Annual Report 2006–07 Rainfall Table 6 shows the rainfall received in the SCA’s catchments in 2006–07. Figure 5 compares actual rainfall 33 against average rainfall over the past five years, and against the long-term average.
Table 6: Monthly rainfall in the catchments (millimetres) 2006–07*
Upper Warragamba Nepean Woronora Shoalhaven Prospect Blue Mts
Jul-06 43 52 73 75 39 92
Aug-06 10 17 23 26 46 33
Sep-06 33 122 201 52 114 79
Oct-06 1 4 7 8 6 25
Nov-06 20 37 40 42 27 44
Dec-06 41 64 93 67 52 55
Jan-07 35 45 77 41 45 111
Feb-07 147 219 237 192 151 261
Mar-07 91 141 129 78 71 154
Apr-07 28 61 172 54 65 102
May-07 45 40 30 25 20 57
Jun-07 206 378 351 313 283 370
Total 701 1,180 1,432 973 917 1,383
* All figures rounded to the nearest millimetre
1,600 Actual rainfall (mm) Last 5 years average rainfall (mm) Long-term average rainfall (mm)
1,400
1,200
1,000
800
s Megalit re 600
400 200
0 Warragamba Upper NepeanWoronora ShoalhavenProspect Blue Mountains
* Last five years average rainfall for Blue Mountains is unavailable
Figure 5: Actual, average and typical (median) rainfall in Sydney’s water supply catchments
KRA 02 Sydney Catchment Authority | Annual Report 2006–07 Working with other water supply Securing Sydney’s water supply 34 agencies to secure supply The SCA entered into new water supply agreements 2006 Metropolitan Water Plan with Sydney Water and Shoalhaven City Council The SCA made excellent progress on all its projects during the year. These agreements have clearer and under the NSW Government’s Metropolitan Water more streamlined arrangements, and accompanying Plan. The plan outlines the government’s response protocols that provide specific operating details. to the current drought, river health initiatives, and The agreement with Shoalhaven City Council will measures to secure a balance between water help council better manage water supply to its demand and supply for the future. customers. Amendments to Shoalhaven and SCA’s The SCA’s WATHNET water supply system model was water management licences, which accompanied used extensively to estimate the amount of water the signing of the agreement, make sure the that could be obtained from the various major Shoalhaven community will have water to support supply augmentation projects under consideration its future growth but ensure that water is also used and the resulting impacts on the water security of wisely. The SCA is currently negotiating a water the system. supply agreement with Wingecarribee Shire Council. Deep storage projects The SCA has an agreement with the Fish River Scheme The Nepean and Avon dams’ deep storage access under which the SCA receives an allocation of up to project was completed in March 2007 within the 3,650 million litres of water each year (10 million litres budget of $54 million. Since then, the pumping per day). station has been used to transfer water from During periods of drought this allocation may be Nepean Dam to Avon Dam during the current reduced and the SCA is permitted to ‘bank’ any drought. This further secures supply to the Illawarra unused portion of its quota. With the worsening and minimises losses through spills from Nepean drought and the continuing decline in Oberon Dam Dam. storage levels during 2006–07, the Fish River The Warragamba deep water access project was Scheme progressively introduced restrictions and completed in April 2007. Some minor testing of the the SCA’s quota was reduced to 2,660 million litres. pumps is continuing. The forecast cost for these The SCA drew 3,115 million litres of water (including projects is within the approved budget (see case study water previously ‘banked’) from the Fish River KRA 03 page 46). Scheme during the year. As Blue Mountains’ dam An extra 200 billion litres of water is now available, storage levels recovered, the SCA reduced its draw extending greater Sydney’s water supply in drought from the Fish River Scheme from February 2007. by an additional six to seven months. This is more Nothing was drawn for the greater part of June than the amount of water held in our second largest 2007 to avoid spills from the dams. As a result, the dam and has increased water supply yield by about SCA will carry over a ‘bank’ of 315 million litres into eight percent. 2007–08.
KRA 02 Sydney Catchment Authority | Annual Report 2006–07 Shoalhaven transfers and Tallowa Dam Environmental flows from operating rules Upper Nepean dams 35 The SCA and the DWE consulted extensively with The Metropolitan Water Plan requires the SCA to the community on a new approach to operating modify the environmental flow releases from the Tallowa Dam, transferring water from the four Upper Nepean dams by 2010. Works to allow Shoalhaven system to Sydney, and new these releases from Avon Dam were completed in environmental flows. A joint discussion paper was late 2006. The new flows from Avon will be released in August 2006 that generated significant implemented when current drought water interest. Consultation included local information restrictions are eased. sessions, newsletters, a mobile shopfront, Project management and specialist technical advertisements, media releases, posters, services are assessing the current infrastructure at stakeholder briefings, and a community Nepean, Cordeaux and Cataract dams and consultation group (see KRA 05). developing options for any additional works The government considered the outcomes of the required to allow the release of the required range community consultation and technical and of environmental flows. environmental findings and in March 2007 The plan noted that work would be required on announced that: weirs on the Upper Nepean River to allow the • new environmental flow rules for the lower passage of new environmental flows and fish past Shoalhaven River will be implemented when these barriers. The SCA is undertaking this work as Sydney Water lifts water restrictions part of the Upper Nepean dams project. • a changed operating regime for Tallowa Dam will begin when the new environmental flow Groundwater rules are implemented The SCA is investigating the use of groundwater to • new infrastructure will be built at Tallowa Dam supplement water supply during severe drought. to allow native fish passage and improve the Seven sites were investigated and only three quality of water releases downstream of the (Wallacia and Leonay in Western Sydney, and environment Kangaloon in the Upper Nepean catchment in the Southern Highlands) were considered feasible for • three options for possible future increased water further investigation. supply transfers for Sydney and the Illawarra will be investigated in more detail by the SCA. On 1 November 2006, when SCA dam storage levels The major focus for the project over the next 12 fell below 40 percent, the government announced months will be investigations to address the three that borefield development would proceed at transfer infrastructure options through the Upper Nepean and potentially at Leonay and Southern Highlands. Wallacia, pending further testing, engineering design and planning approvals. Tallowa Dam environmental flows All borefield projects will be assessed under Part 3A and fish passage of the Environmental Planning and Assessment Act The new environmental flow rules protect 1979 and have been declared as critical Shoalhaven River’s critical low river flows below the infrastructure. In December 2006, the SCA referred dam. Medium flows will be partially protected, the permanent borefield project to the federal while a large proportion of high flows, which flush Department of Environment and Water Resources the river, will continue to flow over the dam wall. for consideration under the Environment Protection and Biodiversity Conservation Act 1999. To support the environmental flows, the SCA is building new infrastructure at Tallowa Dam to allow native fish passage and to improve the temperature of water released from the dam. The project is due for completion by March 2009.
KRA 02 Sydney Catchment Authority | Annual Report 2006–07 The SCA began trial pumping investigations from Managing water supply assets seven bores in the Upper Nepean borefield in late 36 February 2007. The trial and subsequent rainfall Improving asset maintenance was suspended on 20 June 2007 after extensive rain The SCA has developed tools and procedures that across the catchment, which caused local flooding have greatly improved access to asset data for and a spill from Nepean Dam. This provided the maintenance purposes during the year: opportunity to observe groundwater level recoveries as a result of a large rainfall recharge event. Pumping • digitising technical drawings for greater had continued uninterrupted for just over 100 days accessibility and to ensure the most up-to-date and about 450 megalitres had been pumped from information is available the seven production bores during this period. • introducing electronic operations and Within 48 hours of suspension of pumping, maintenance manuals for new assets, which are groundwater levels in two bores had recovered to easily accessible onsite via computers within two metres of the original standing water • building capability to bulk-load asset information levels observed in February 2007. In the remaining into the SCA’s computerised asset management five production bores, water levels had recovered system. more than 40 metres. These observations exceeded expected recovery rates. Investing in improvements Observations of local groundwater conditions in Asset renewal program March, May and June 2007 continued to reveal no Long-term plans are being developed for the renewal impact on the shallow perched levels associated of civil, mechanical and electrical assets which form a with Butlers Swamp. Also, stream gauging data major element of the SCA’s asset strategy and life- suggested that the four megalitres per day was cycle planning. delivered along the river to Nepean Dam. Drilling at Leonay was completed by the end of the Warragamba Dam financial year. The program will finish with a 45–60 Major upgrades to Warragamba Dam continue on a day pumping test involving three of the four main number of fronts. test production bores in 2007–08. The pilot drilling program in Wallacia was delayed by rain. Further An upgrade of the dam’s electrical systems will investigations will continue in 2007–08. increase reliability and contribute to safe operations of the dam. System redesign and improved The groundwater project has been subject to component selection have resulted in a $5 million extensive community engagement (see KRA 05 saving for 2006–07. The project will be completed in page 60). 2007–08 for an estimated total cost of $23 million. The drum and radial gates upgrade project will mean the dam will be capable of withstanding a probable maximum flood. The upgrade will also enhance the reliability and efficiency of gate operation. The complex tender process began in 2006–07 and we expect to let the contract in early 2007–08. Spare pipes and fittings are being procured for the Warragamba pipelines. The ready availability of parts will ensure the pipelines are only out of service for repairs and maintenance for the shortest time. This project will be completed in late 2007 at a forecast cost of $5 million.
KRA 02 Sydney Catchment Authority | Annual Report 2006–07 37
Above: The Prospect Raw Water Pumping Station increases the reservoir’s accessible water supply from eight billion to 28 billion litres.
Case study Prospect Raw Water Pumping Station The SCA has boosted security of Sydney’s water supply with the completion of the Prospect Raw Water Pumping Station on time and at a budget of $56 million. Completion of the project satisfies one of the major recommendations of the McClellan inquiry which followed the 1998 Sydney water quality incident. The pumping station gives the existing water supply system additional flexibility by providing a back up source should supply from the other dams be unexpectedly interrupted, and allowing the Warragamba pipelines to be taken out of service for maintenance. Fitted with nine of the largest submersible pumps available, the new pumping station increases the reservoir’s accessible water supply from eight billion to 28 billion litres, which represents up to 30 days supply for Sydney. During a period of elevated turbidity in Warragamba Dam’s storage in mid 2007, the new pumping station supplied raw water to the Prospect Water Filtration Plant for the first time. The SCA has since completed remaining minor works and the last stages of site restoration.
KRA 02 Sydney Catchment Authority | Annual Report 2006–07 The Warragamba Dam surge tank received new Burrawang Pumping Station valves and pipe work in 2006–07 at a cost of 38 Transformers 1 and 2 at Burrawang Pumping Station $240,000. These valves will ensure the dam galleries were refurbished at a cost of $500,000, extending their are well drained during flood events. estimated life by 30 years. The pumping station cooling system was replaced within the budget of Upper Nepean dams $200,000. The new system allows the pumps to In addition to the deep water access project, the operate continuously over 24 hours. This has resulted augmentation of the hydrometric inflow stations in in efficiency gains for the SCA in both costs and staff the Upper Nepean Catchment was completed on hours. time and within budget in 2006–07. The new stations provide real-time flow rate and water Prospect Raw Water Pumping Station quality data. This information greatly helps the SCA A raw water pumping station was built at Prospect manage and monitor water quality in our dams. to increase the reservoir’s accessible supply from The post-tension anchors at Nepean and Avon dams eight billion to 28 billion litres. This enables the were re-tested in 2006–07. Improved procurement reservoir to meet Sydney’s water supply needs for methods used in delivering this project have saved up to 30 days should Warragamba services be the SCA over $100,000 and four months. No anchors interrupted. The project was completed on time at a required re-stressing. budget of $56 million (see case study on page 37). The installation of the Upper Avon turbidity meter was completed in 2006–07 on time and within Cascade Deep Water Pumping Station budget for a cost of $160,000. The turbidity meter In 2006–07, work was completed and commissioned provides Sydney Water with early warning of poor on a new raw water pumping station to access deep quality water. water storage in Upper Cascade Dam. An additional 600 million litres, representing 22 percent of the total Upper Canal storage in Blue Mountains dams, is now accessible. In Maintenance of the chlorination equipment facility times of drought this deep water will provide at Broughton Pass to improve reliability and safety additional security of supply to Blue Mountains systems was completed in May 2007. The project communities. The total project cost included replacing and upgrading pipework, was approximately $2 million. installing leak detection and emergency shutdown equipment, and upgrading signage and safety Dam safety equipment. The SCA owns 21 water storage facilities that are The Upper Canal aqueduct scour valves were prescribed by the NSW Dams Safety Committee upgraded in 2006–07 at a cost of $200,000 and the (DSC) under the Dams Safety Act 1978. Our five-year canal fencing project began in 2006–07. Dam Safety Management Program ensures our dams are managed in compliance with the DSC requirements and the Australian National Committee on Large Dams (ANCOLD) guidelines. We continue to manage all our dams to a high standard of safety with ongoing programs to ensure all operating licence and regulatory requirements are met. All the dams were inspected and monitored throughout 2006–07 and found to be performing satisfactorily with no significant safety issues or unusual behavioural trends identified.
KRA 02 Sydney Catchment Authority | Annual Report 2006–07 The five-yearly surveillance report for Wingecarribee Surveying Dam was prepared and submitted to the DSC. The SCA carries out deformation surveys at our 39 The committee endorsed the report. There were no dams and other structures to ensure the water deficiencies identified from the comprehensive storage and transfer assets continue to perform as safety review assessments completed during the predicted. year on Avon and Nepean dams. The SCA drafted specifications for comprehensive safety These structures are surveyed either annually or assessments of Cataract and Cordeaux dams. bi-annually, depending on their consequence rating Assessments will be undertaken in the next and surveyed movements. The Upper Cordeaux No financial year. 2 Dam, Cataract Dam and Upper Canal system are monitored more frequently because of mining Dam safety emergency plans are available for all the activities. dams. A successful emergency simulation exercise centred around Wingecarribee Dam, involving SCA In February 2007, the SCA began surveying and staff and key representatives of external emergency identifying all overhead and underground utility management organisations, was conducted in order services (such as communication and power) at to test dam safety emergency planning within the Upper Nepean dam sites. The asset and spatial Shoalhaven system. information collected will be imported into the SCA geographical information system database as a We continued to provide dam safety surveillance basis for asset and maintenance management services to Sydney Water which owns 18 prescribed systems. ‘dams’, and satisfactorily completed their annual program of dam safety activities to DSC Australian National Committee requirements. on Large Dams conference The SCA is represented on the DSC, ANCOLD and two A record number of delegates (271) attended the working groups of the International Commission on 2006 ANCOLD Conference, held in Sydney. The Large Dams. By these means we are able to ensure success of the conference was enhanced by the our dam safety management practices are in line large number of international speakers, enabling with world best practice. Australian delegates to gain an important insight into overseas practices. Wingecarribee Reservoir – dam safety review The General Manager Dam Safety convened the conference, and many other SCA staff contributed Over the past three years the SCA has carried out a to its success. The pre-conference tour included an detailed safety review on Wingecarribee Reservoir. inspection of Warragamba Dam by almost 100 Investigations included piping options concept participants. An instrumentation and survey design, peat management options, and spillway gate seminar, attended by about 140 delegates, followed reliability assessment. A dam safety risk assessment, the conference. taking all dam safety criteria into account, was then undertaken with the outcomes used to select a preferred overall upgrade option. The preferred upgrade option was endorsed in-principle by the SCA’s Board in May 2007. When works are completed this will bring dam safety for Wingecarribee Reservoir in line with other SCA dams. The preferred option is yet to be endorsed by the DSC.
KRA 02 Sydney Catchment Authority | Annual Report 2006–07 Mining beneath SCA Monitoring and protective works due 40 infrastructure to impacts of underground mining During 2006–07, underground coalmining The SCA is a major stakeholder with respect to continued in the Southern Coalfields. Subsidence coalmining and associated activities in the Southern prediction and monitoring during the year Coalfields. indicated that no unexpected impacts requiring Coalmining activities have resulted in, and have the protective works occurred at most sites. Minor potential for future, adverse impacts upon the mining-related damage that occurred to ecological integrity of the Special Areas. The SCA is Broughtons Pass Weir in 2000 will be repaired also alert to potential damage to surface following cessation of mining in the area. infrastructure, eg, damage to the dams; potential Ongoing review and monitoring of the subsidence leakage and loss of water from water storages into impacts and detailed engineering assessments of coal mines; and damage to the Upper Canal, mining in the Appin and Westcliff areas beneath tunnels, pipelines, roads, and buildings, many of Cataract Tunnel and alongside the Upper Canal which are heritage items. system identified potential risks to these important The SCA is represented on the Subsidence components of the water supply system. As a result, Management Plan Review Committee, an inter- additional protective and preventative measures agency committee convened by the Department of were put in place. These measures aim to maintain Primary Industries (DPI). The committee reviews and the stability and heritage value of the canal, endorses subsidence and environmental aqueducts and bridges against potential mining management plans and asset protection plans to impacts. mitigate the impacts of mining and ensure the All costs incurred by the SCA associated with integrity and ongoing serviceability of assets. mining activities are reimbursed by the mining Conditions protecting infrastructure assets are companies in accordance with master agreements attached to mining approvals. Mining companies between SCA and mining companies. These use these conditions as a framework for developing agreements ensure that works are undertaken to mining management plans. Such plans aim to protect SCA infrastructure from the potential ensure all necessary preventative measures and impacts of mining and that the SCA does not incur ongoing monitoring are undertaken so that mining any cost or liability as a result of mining impacts. can take place without any significant impact on surface assets. The SCA Corporate Risk Management Framework is being used to identify, analyse, devise and implement responses to the potential risk of impact of mining on SCA assets, with the aim of reducing the risk to a level acceptable to the SCA.
KRA 02 Sydney Catchment Authority | Annual Report 2006–07 key result area 03 Commercial success 41
Above: In 2006, the SCA worked with the Department of Commerce to complete new infrastructure at Avon Dam to release environmental flows for downstream river health.
Sydney Catchment Authority | Annual Report 2006–07 Key results area 03 – Commercial success 42 So that we fulfil our statutory, commercial and contractual obligations we will achieve the following outcomes over the period 2002–07: • targets outlined in the Statement of Financial Framework will be met • statutory and commercial obligations will be reflected in the actions of all staff • asset investments will be based on a sound economic and risk framework • risks will be systematically identified, addressed and managed.
Performance against financial targets Statement of Financial Framework Under section 34 of the Sydney Water Catchment Management Act 1998 (SWCM Act), the SCA Board prepares the Statement of Financial Framework for adoption by the Minister and the Treasurer. The 2006–07 statement was prepared to satisfy section 34 of the Act.
Commercial success outcomes The SCA Business Plan 2002–2007 and the 2006–07 Statement of Financial Framework identify the SCA’s financial targets. Table 7 shows the agency’s commercial achievements for 2006–07.
Table 7: Performance in relation to commercial success 2006–07 2006–07 BUDGET ACTUAL VARIANCE VARIANCE REASON FOR VARIANCE $million $million $million (%) Revenue 156.8 156.2 -0.6 -0.4 Close to target Operations/ 87.0 93.2 6.2 7.1 Higher than target due to cost of services pumping water from the expenditure Shoalhaven System during drought Other areas of 37.4 36.7 -0.7 -1.9 Close to target expenditure Dividend and tax 31.6 24.2 -7.4 -23.4 Lower than target due to higher equivalent operations costs expense Debt to total 40.1% 33.0% -7.1% -17.7% Better than target due to value revaluation of assets
KRA 03 Sydney Catchment Authority | Annual Report 2006–07 Table 8: Capital works projects and expenditure in 2006–07
Project 2006–07 $ 43 Environmental Flows Nepean, Warragamba, Woronora 30,522 Groundwater drilling 1,577,304 Avon Dam deep storage access 1,846,209 Increased Shoalhaven transfers 2,337,921 Nepean Dam deep storage access 4,124,382 Groundwater pilot test and bore field development 6,823,076 Warragamba Dam deep storage access 14,882,812 Warragamba Dam spillway gates and visitors’ centre 3,241,004 Warragamba Dam picnic area upgrade water supply 197 Warragamba Dam stopboard storage racks 267 Warragamba Dam crest crane upgrade 3,969 Warragamba Dam upgrade major outlet valve 7,593 Warragamba Dam replace valves and ancillary equipment with surge tank 237,942 Groundwater investigation 302,274 Warragamba Dam electrical upgrade 5,350,315 Warragamba Dam pipeline fencing 1,162 Warragamba Dam spare pipes and fittings 286,955 Fish River water supply transformer 145 Blue Mountains trunnion system replacements 4,882 Blue Mountains replace 600mm scour value on Lower Cascade Dam 36,080 Upper Cascade Dam modifications to outlet 42,454 Upper Avon turbidity meter installation 2,279 Overhead cranes at Nepean and Woronora dams 8,960 Woronora and Nepean dams, lifting and storage of stopboards and screens 81,389 Upper Canal refurbish aqueduct 2 2,266 Upper Canal chlorination upgrade 5,687
KRA 03 Sydney Catchment Authority | Annual Report 2006–07 Project 2006–07 $ 44 Upper Canal upgrade fish biomonitoring stations 135,350 Upper Canal drainage upgrade 175,199 Upper Canal fencing 1,132,806 Prospect Reservoir upgrade spillway 2,238 Prospect Reservoir clay core water supply 8,594 Prospect Reservoir embankment stabilisation 74,460 Prospect Reservoir upgrade scours 167,497 Prospect Reservoir Raw Water Pumping Station 26,905,261 Bendeela control structures stopboards 11,624 Shoalhaven batteries 36,639 Wingecarribee Dam safety upgrade 65,849 Burrawang pump cooling system 195,427 Shoalhaven System upgrade SCADA 381,106 Tallowa Dam fishway/offtake 2,212,530 Special Area fencing 33,967 Braidwood fencing 140,005 Land acquisition 2,792,700 Boat and trailer - Environmental Control Group 935 Playgrounds upgrade at SCA sites 1,011 Upgrade Braidwood cottages 2,569 Upgrade dam cottages 2,844 Site office fitouts 6,384 Upgrade components of Narrow Neck Fire Tower 11,867 Upgrade reticulation and fire hydrants 46,244 Dam access roads upgrade 233,508 Upgrade conference facilities 92,561
KRA 03 Sydney Catchment Authority | Annual Report 2006–07 Project 2006–07 $ Augmentation of hydrometric and water quality monitoring systems 195,079 45 Replacement of water supply assets 297,731 Hydrometric network renewals program 379,386 Infrastructure and regulatory signage 389,291 Office fitouts 790,264 IT system upgrades 1,217,567 WPE - mobile water quality monitoring 2,422 Autosampler Wingecarribee water quality management 20,177 Upgrade of spillage equipment 49,596 Category 7 fire tanker 56,142 Photocopiers 75,060 Upgrade and replace access equipment for undertaking dam surveys 78,498 Working plant and equipment 142,907 Motor vehicle fleet for SCA 6,028,063 Total 85,829,402
KRA 03 Sydney Catchment Authority | Annual Report 2006–07 46
Above: The Warragamba deep water project has provided access to another 200 billion litres of water, extending greater Sydney’s water supply during drought.
Case study Deep water access projects Commercial success depends on good relationships and effective project management. In late 2004, with the severe drought continuing, the deep water access projects at Warragamba and Nepean/Avon dams were identified as the most cost-effective and timely way to augment Sydney’s water supply. The SCA engaged the Department of Commerce as project managers, and aggressive delivery programs were set with tight schedules. The sites presented challenges, including: • ensuring full environmental and heritage protection requirements were met • managing site access and working limitations, eg deep underwater work, underground caverns space, tunnelling and pipeline routes • ensuring safety in a high-risk environment – working over water, underground and on slopes • working around and connecting to existing infrastructure while maintaining greater Sydney’s water supply • technical complexities requiring innovation, collaboration and adapative management in all phases of the project. The concept for the Warragamba project involved enlarging an emergency scheme pumping station cavern de-commissioned in 1960 and installing a new 1000-megalitres per day pumping station, providing new access to an existing low-level outlet in the dam, and connecting to the existing pipelines to Prospect Reservoir. The concept for the Nepean project entailed constructing a new pumping station at the base of Nepean Dam and building a two-kilometre pipeline to deliver water into the existing tunnel between Nepean and Avon dams. The project also included new infrastructure to allow environmental flows to be released downstream. Contracts were let for the Warragamba project in July 2005 and Nepean in September 2005. Both contracts were awarded to Baulderstone Hornibrook. The Nepean component was physically completed in August 2006 and Warragamba pumping station was physically completed in September 2006. Their predicted end costs are both within budget, and the projects fully meet their functional objectives. The success of the project can in large part be attributed to the excellent working relationships between the SCA, Department of Commerce and the contractor.
KRA 03 Sydney Catchment Authority | Annual Report 2006–07 Improving capital expenditure volumetric charge increased to $174.67 per thousand litres in 2006–07 and will further increase 47 and management to $203.27 per thousand litres (plus CPI) by 2008–09. The SCA again delivered a major program of capital During the coming year the SCA will prepare for IPART’s expenditure in 2006–07. Actual capital expenditure for the next review of SCA prices, to apply from 1 July 2009. year was $85.8 million against a budget of $133.9 million. A substantial proportion of the expenditure related to projects under the 2006 Metropolitan Water Plan – the Updated credit rating deep water storage access projects at Warragamba Each year, the NSW Government requires statutory and Nepean dams, and further investigations of authorities, such as the SCA, to be reviewed by a groundwater supplies in the Upper Nepean. credit rating agency as part of an overall assessment of the agencies’ financial positions. The process is Noteworthy progress was also achieved with other designed to improve the financial and economic projects within our capital expenditure program (see performances of government businesses. In its 2006 table 8). These included completion of the Prospect review the SCA again achieved an investment-grade Raw Water Pumping Station on time and within budget. credit rating. These outcomes have been assisted through improvements in the SCA’s total asset management framework, project management methodologies and Financial reporting processes, together with enhanced asset and service Projected 2007–08 total revenue delivery strategies. The SCA’s projected total revenue for 2007–08 is $167.9 million. Of this, the sale of raw water Review of water prices accounts for $166.0 million, with Sydney Water The SCA supplies bulk raw water as a government accounting for 98 percent of supply. Other income monopoly service under the Independent Pricing and is derived from the supply of SCA services. Regulatory Tribunal Act 1992. The Independent Pricing and Regulatory Tribunal (IPART) determines prices the 2007–08 budget SCA charges for water. Specifically, the price path sets our In its budget for the 2007–08 financial year, the SCA prices for water supplied to Sydney Water, Shoalhaven does not expect any major change in total revenue City Council, Wingecarribee Shire Council and our other and expenditure. The drought may continue to have customers for the period 1 October to 30 June 2009. two significant effects on financial performance – The SCA’s fixed availability charge to Sydney Water lower than projected water sales, and higher than is $5.124 million per annum (plus CPI). The expected operating costs due to the need to pump from Tallowa Dam. These matters will continue to be monitored closely.
35 30 25 Budget 2006-07 Budget 2007-08 20 15 $ MILLION 10 5 0 t y ty ee fees claims oper Energ Grants lated re Licence charges eciatio n Pr Material s Financing Insurance Insurance Empl oy anspor Tr Information Contractors Maintenance management Depr Consultancies Administration EXPENDITURE CATEGORY
Figure 6: Expenditure budget comparison 2006-07 to 2007-08 KRA 03 Sydney Catchment Authority | Annual Report 2006–07 Procurement Working with consultants 48 The SCA continues to use interagency service level For reporting purposes, a consultant is a person or agreements and the panel system of procurement to organisation engaged under contract, on a continuously improve our management of contracts temporary basis, to recommend or provide higher- and accounts. In accordance with the Premier’s level specialist or professional advice to help Memorandum 2006–11 NSW Procurement Reforms, management make decisions. Generally it is the the SCA also makes greater use of existing NSW State advisory nature of the work that differentiates a Contracts Control Board period agreements for consultant from other contractors. goods and services. In 2006–07, the SCA engaged the following consultants. Managing service level agreements 1. Engagements > $30,000 Our service level agreements with other agencies • Morrison Low Consultants Pty Ltd continue to promote better business practices and Review of the Corporate Services Division a whole-of-government approach. Current service level agreements include our agreements with the Phase 1: $73,452 including GST Department of Commerce, Roads and Traffic Category: Organisational review Authority, Sydney Water, and the Department of Environment and Climate Change (DECC). 2. Engagements < $30,000 • Nil. The agreement with Department of Lands to provide electronic mapping services has been Upgrade of finance and reviewed. We also signed a new agreement with a finance-related systems non-government organisation, Conservation Volunteers Australia. The SCA operates an integrated financial system which incorporates the SUN financial system, Managing panel contracts Maximo for asset and contract management and procurement, and COGNOS for budgeting, The SCA has panel contracts to streamline forecasting and management accounting. procurement. The legal services panel continues its current operation. The panel for minor works (up to The three systems, SUN, Maximo and COGNOS, are $10,000) has been re-established, with the new linked electronically by an integration process panel commencing in November 2006. which allows single data entry, on-screen authorisations, paperless transmissions and Two additional panels have been established: execution of transactions. surveying services, and development assessment. The surveying services panel helps the SCA’s existing The SUN system, recently upgraded to a Windows- survey teams with increased levels of survey work. based version, was further improved during the The panel includes dam monitoring and surveillance, year by adding a module to manage the new mining subsidence, global positioning system (GPS) employment arrangements under the SCA Division control network, detail and contouring (with or of the NSW Government Service. without GPS), and cadastral surveys. Considerable progress was made in bringing the The development assessment panel helps the Maximo asset register up to date, while in the development control group assess development operational areas locations, preventative applications by providing specialist services and maintenance tasks, and work plans were all refined. advice. The panel includes water-cycle management Work has started on the COGNOS system to further studies, water-sensitive urban design, modelling of improve management accounting functionality and water quality impacts, review and/or preparation of the reporting capability. A project to upgrade to review of environmental factors, soil and water COGNOS Version 8 has begun and will address a management plans, review of effluent disposal wide range of issues including enhanced measures, and reviews of salinity modelling. forecasting and reporting and training for all users.
KRA 03 Sydney Catchment Authority | Annual Report 2006–07 key result area building and 49 04 sharing knowledge
Above: The SCA provided professional development opportunities for science teachers with the launch of the new Water Quality: HSC Chemistry website.
Sydney Catchment Authority | Annual Report 2006–07 Key result area 04 – Building and sharing knowledge 50 50 So that decision making by the SCA, other public authorities and the community is based on robust scientific, ecological, socio-economic and financial knowledge and information, we will achieve the following outcomes over the period 2002–07: • we will put key data sets in place relevant to the SCA’s role • our decisions and advocacy will reflect the use of available information and knowledge • stakeholders will be able to readily access relevant information and its interpretation • communities will be able to access and provide input to our capacity building initiatives.
Science and research Working with external researchers Our collaborative research program focuses on key Using science to underpin decision science questions that are best answered through making one-on-one collaboration with external providers. The SCA’s science program underpins management The projects, which are generally for three years, of catchment health and decision-making about the are continually reviewed by the SCA to ensure the supply of quality bulk raw water to our customers. research objectives are being met. We conduct most of our strategic, long-term The first round of 14 collaborative research projects research in collaboration with government began in July 2003. Several of these projects have agencies, universities, cooperative research centres attracted additional funding through the Australian (CRCs), the CSIRO and other national and Research Council’s (ARC) Linkage Grant scheme. international research providers. Operational Twenty-two are with researchers from universities, (short-term) research is usually delivered using two are with the CSIRO, and two were awarded to in-house resources and external contractors. specialist consultants. Expenditure on the program in 2006–07 was Tailoring science to SCA needs $770,000. Several of these projects were completed The SCA’s Strategic Plan for Science aligns with our in 2006–07 and a number of follow-on projects business needs and government priorities. The plan advertised. is organised around five science disciplines that Collaborative research projects and ARC linkage help protect water quality and support the delivery projects current during the year are identified in of the business plan’s intended outcomes. The Table 9. The outcomes of these projects benefit themes are: outcomes discussed in other sections of this report, • pathogens particularly in relation to KRAs 01 and 02. • nutrients, sediments and pollutants • climate variability and extreme events • ecology • hydrology. The strategic plan ensures that research projects exchange knowledge using appropriate tools such as models, workshops, publications and expert advice.
KRA 04 Sydney Catchment Authority | Annual Report 2006–07 Table 9: Collaborative science programs Project Research provider Time Project SCA 51 frame budget funding (SCA) 2006–07 ($’000) ($’000) Pathogens Pathogen budgeting for prioritisation of land uses University of 2003–06 162 0 and rectification actions to reduce public health New South Wales risks from pathogens Molecular methods for tracing faecal bacteria University of 2003–06 189 0 and bacteriophages in the catchment New South Wales Molecular methods for tracing faecal viruses University of 2003–06 189 0 in the catchment New South Wales Native animals as potential sources of human Macquarie University 2003–06 164 0 pathogens in SCA catchments. Prevalence of Cryptosporidium oocysts and Macquarie University 2003–06 178 0 anti-Crytosporidium antibodies in animals in SCA catchments. Cryptosporidium in the Warragamba catchment: Macquarie University 2003–06 238 0 genotypes and cell culture infectivity Using molecular tools to understand and control Murdoch University 2005–08 60 20 the transmission of Cryptosporidium* Novel molecular markers for the historical source University of 2005–07 40 20 tracing of faecal contamination in urban water New South Wales catchments * Cryptosporidium in feral animals Macquarie University 2006–09 387 141 Riparian and water quality protection by University of 2006–08 188 94 influencing animal movements New South Wales Estimating the relative pathogen risk from sewage University of 2006–09 300 114 treatment plant effluent New South Wales Total 2,095 389
KRA 04 Sydney Catchment Authority | Annual Report 2006–07 Project Research provider Time Project SCA 52 frame budget funding (SCA) 2006–07 ($’000) ($’000) Nutrients, sediments and pollutants Integrated water quality planning – least cost University of 2003–07 145 36 pollution control Technology Sydney Sediment budgeting: Metropolitan catchments University of Wollongong 2003–07 200 0 Evaluation and enhancement of tools for nutrient University of 2003–06 240 0 budget construction and prioritisation of land uses Western Sydney and abatement actions to reduce nutrient loadings Identification of major sediment and nutrient CSIRO 2003–07 340 0 sources in Sydney’s drinking water catchments Cover crops to decrease phosphorus transport Australian National 2003–07 30 0 from agricultural soils * University Nutrient generation from rural land and delivery to University of Western 2005–08 173 53 streams in the Sydney drinking water catchments * Sydney/Australian National University Conceptualisation and modelling of surface water Parsons Brinckerhoff 2006–08 1024 84 – groundwater interaction in the Upper Nepean fractured aquifer system Statistical analysis of water quality data University of 2007–08 140 30 New South Wales Impact of longwall mining on subsidence, flow and Parsons Brinckerhoff 2007–10 569 111 water quality in the Waratah Rivulet Total 2,861 314 Climate variability and extreme events Impact on water quality by post-wildfire erosion CSIRO 2003–07 180 0 and nutrient release Catastrophic events and Holocene sedimentation Macquarie University 2003–07 176 15 through the Special Areas Climate forecasting – multi-site probabilistic University of 2003–06 173 0 forecasting for the SCA water supply catchments New South Wales and its use in reservoir operations Methods of forecasting SCA inflows on multiple University of Newcastle 2003–06 180 0 timescales using simple indices of climate Multi-site probabilistic streamflow forecasting for University of 2004–06 61 0 water management applications * New South Wales A stochastic down-scaling framework for University of 2006–08 63 22 catchment scale climate change impact assessment New South Wales * Derivation for long-term hydroclimatic sequences University of Newcastle 2005–08 60 34 for water resources engineering, management and planning * Total 893 71
* Projects with additional funding through Australian Research Council’s Linkage Grant Scheme.
KRA 04 Sydney Catchment Authority | Annual Report 2006–07 Building research alliances The eWater Cooperative Research Centre The SCA is a participant in the eWater CRC, 53 National and international alliances which aims to be a national and international leader The SCA is a member of the Water Services in the development, application and sale of Association of Australia and the American Water products for integrated water-cycle management. Works Association Research Foundation (AwwaRF). The SCA takes part in a range of eWater projects, This enables the SCA to keep abreast of the latest including regional-scale urban assessment, developments in science and research, and to watch restoration planning, surface-groundwater emerging water quality issues internationally. The interactions and integrated monitoring and relationships also allow the SCA to collaborate with assessment. national and international water industries on significant research projects. Research alliance programs The SCA’s membership of the Cooperative Research Table 10 shows the areas of focus for each research Centre (CRC) for Water Quality and Treatment provides alliance and the SCA’s annual contribution. Project links to the Global Water Research Coalition, an outcomes benefit many of the programs discussed international research alliance including major under KRAs 01 and 02 of this report. research agencies in the USA and Europe.
The Cooperative Research Centre for Water Quality and Treatment The SCA has a lead role for the following projects under the Cooperative Research Centre (CRC) for Water Quality and Treatment’s Catchment Program: Catchments as business assets This project, scoped in 2006 with the CRC, explores ways to better measure and value the contribution of catchments to providing quality drinking water. The project will capitalise upon prior research from the CRC, such as measuring the ‘treatment equivalent’ of catchment management. Catchment risk management – a tool to structure source-water protection This CRC project forms one basis of SCA’s Raw Drinking Water Risk Management Framework (see KRA 01). The CRC is reviewing the project report Risk Assessment Manual for Drinking Water Catchments, with the goal of producing national guidelines suitable for small, medium and large source-water organisations. In addition, during 2006–07 the SCA hosted the CRC’s technology transfer workshop on cyanobacteria research, which included detection methods for cyanobacteria and their toxins, understanding cyanobacterial growth, sampling and monitoring, reservoir management and water treatment options for toxins and taste and odour compounds.
KRA 04 Sydney Catchment Authority | Annual Report 2006–07 Table 10: Research alliance programs 54 Organisation Area of focus for research Financial FTE (full-time alliance contribution equivalent) staff per year contribution per year Water Services • Drinking water $50,000 Nil Association of Australia • Wastewater • Catchment management • Asset management and regulation American Water Works • Drinking water quality and $30,000 Nil Association Research treatment Foundation (AwwaRF) • Public health • Catchment management Cooperative Research • Water treatment and distribution $200,000 0.6 Centre (CRC) for Water • Catchments and reservoirs Quality and Treatment • Public health • Water quality frameworks and management eWater Cooperative • Catchment management $350,000 1.6 Research Centre (CRC) • Management of surface and groundwater resources • Management of ecosystems
Groundwater hydrology – the link Understanding climate change and between surface and subsurface flows variability Two otherwise distinct project areas in the SCA’s The SCA supports research into both short-term science program – the impact of longwall mining, rainfall and inflow forecasting, and longer-term and groundwater extraction for drought relief – climate modelling to help understand the likelihood have emphasised the importance of cross- of extended droughts or flood events in the disciplinary and specialised knowledge in catchments, and help manage the water storages. A understanding the complex connections and forecasting tool, based on research at the University interactions between earth and aquatic systems. of Newcastle, has been delivered to the SCA and will The SCA has initiated an extensive monitoring be tested to see whether seasonal forecasting of rain program to assess the impact of longwall mining in and inflow can be further improved. the Southern Coalfields. Through detailed surface and Working with the University of Newcastle, the SCA subsurface monitoring of water quality and quantity, a has begun research into the rainfall history of the conceptual model of a mining-impacted catchment Warragamba Catchment with two studies: has been developed to explain the observed impacts • growth of limestone stalagmites at Wombeyan of mining. This will be used to predict impacts of Caves proposed mining on water resources in adjacent areas. The techniques will also be used to assess the • reconstructing major flood events through effectiveness of remediation options. sampling of sediments in the Warragamba and Nepean catchments. Collaborative research projects are under way to To date, work has focused on finding suitable apply advanced tools to build more accurate models sampling sites and validating research methods. for both mining and groundwater extraction, and to Findings are expected to be available in 2009. better understand the connection between surface and subsurface flow in catchment management.
KRA 04 Sydney Catchment Authority | Annual Report 2006–07 The study into the rainfall history of the The Avon monitoring program is also informing the Warragamba Catchment, based on the growth of SCA’s development of a monitoring and assessment limestone deposits at Wombeyan Caves, is yielding program in the Upper Nepean system downstream 55 some interesting results. The 20th-century rainfall of other SCA storages and weirs. record has been reconstructed and shows a good The SCA completed the infrastructure necessary to correlation with the instrumental record. A release the new environmental flows from Avon Dam complementary study into flood events in the in late 2006. The NSW Government has announced Warragamba and Nepean catchments has identified the new flows will be implemented when drought five sites for detailed sediment sampling and water restrictions in greater Sydney are eased. reconstruction of past floods. A feasibility study has been undertaken by the Pathogen research Bureau of Meteorology to see whether real-time New pathogens projects begun in July 2006 are rainfall sequences can be used to better estimate filling knowledge gaps identified in reviews of catchment-wide rainfall amounts and to get a better earlier work. An estimate will be made of the levels spatial distribution of rainfall in the catchments. and types of the parasite Cryptosporidium in feral A workshop on cloud seeding (with DECC) was held animals in the catchments, initially focusing on feral in February 2007 to showcase current rusa deer in the Cordeaux Catchment. understanding and shortcomings of the science The risk of pathogens from sewage treatment plants underpinning the principles of cloud seeding. will be compared with that from other pathogens sources in the same sub-catchments using Environmental flows quantitative microbial risk assessment. In addition to The SCA’s water management licence requires these new projects, we are continuing a number of environmental flow releases from SCA dams. Baseline pathogen studies and some previous studies have biological data has been collected downstream of been further developed. Woronora Dam every spring and autumn since 2002 The SCA’s pathogen contaminant budget model is and changes are assessed annually. undergoing continuing development in a CRC Under the Metropolitan Water Plan, environmental Water Quality and Treatment project funded by the water releases with variable flow rates are American Water Works Association Research scheduled from the Avon, Nepean, Cataract, Foundation (AwwaRF). The improved model will be Cordeaux and Warragamba dams. available on the AwwaRF website in early 2008.
Avon Dam environmental flow monitoring How we build and share In October 2004, the NSW Government announced that water will be released from the Avon Dam to catchment knowledge improve the general health of the Avon River. SCA-DPI Grazier Education Partnership The Independent Expert Panel on environmental flows provided detailed recommendations for In 2007, the SCA and Department of Primary monitoring downstream of Avon Dam before and Industries (DPI) commenced a seven-year partnership after the release of the flows. to deliver education programs to graziers. The education focuses on changing management In 2006, the SCA began an integrated biological, practices to improve farm productivity and water quality and hydrological monitoring program sustainability while protecting water quality. These in preparation for implementing the new flows. aims will be delivered through the DPI’s existing We also began building the infrastructure needed LANDSCAN, PROGRAZE and Pasture Identification to release flows from the dam of the necessary courses run in the SCA area of operations. quantity, quality, and variability. The SCA expects the program will be delivered to The monitoring collects data on the physical, approximately 25 percent of graziers within the life hydrological, physio-chemical and biological of the project, with a focus on SCA priority areas. character of the Avon River downstream of the dam. The program will also help establish ongoing This data will be used to test hypotheses about the relationships between the SCA, DPI and the grazier effects of environmental flows and will ultimately community in the catchments. help the SCA understand how aquatic ecosystems respond to changes in stream flow. The cost for the project to the SCA will be $3.012 million over seven years. KRA 04 Sydney Catchment Authority | Annual Report 2006–07 Catchment and spatial information The SCA grants committee is operated to achieve transparent, equitable grant allocations. Grant 56 systems programs are effectively and efficiently The SCA’s catchment and spatial information systems administered and supported. During 2006–07, provide the main source of information on the location, approximately $1.5 million in grants was awarded condition and nature of our catchment environments under the following programs: and assets. We make this information available to our staff and stakeholders via online mapping systems, • Catchment Protection Scheme high-quality cartographic products and spatial datasets. • Riparian Management Assistance Program We are developing a spatial information and systems • Onsite Sewage Management Grants strategic plan in consultation with stakeholders that • Catchment Protection and Improvement Grants aims to describe its role and outline a high-level technical implementation path for the next three years. • Collaborative Research Program. During 2006–07, we undertook a number of projects See KRA 01 for more information on catchment to collect information on the nature and condition of grants; see KRA 4 for details of collaborative our catchments, eg, mapping farm dams, and research grants; see Appendix 12 (page 148), for measuring and monitoring riparian condition. The SCA schedule of Catchment Protection and and our stakeholders use this information when Improvements Grants. making decisions on improving catchment health. In addition, various systems have been launched that Special purpose grants integrate information sources from across the SCA into This category of grants considers projects that one interface: our online intranet mapping system, contribute to the priorities of the SCA and are not ActiveMap. The integration of systems throughout the eligible for other SCA grant programs. In 2006–07 SCA will flow into 2007–08 with the development of a four projects were awarded grants. They included land information system and a mapping interface to sewer reticulation and refurbishment, mine the SCA’s overhead and underground assets. rehabilitation, community nurseries, and the purchase of two trail bikes for NSW Police to Mike FLOODWATCH and ActiveMap support SCA compliance activities. (See KRA 01 for Mike FLOODWATCH is a complete decision support more information.) system for flood and flow forecasting. Installed in late 2006, the system retrieves real-time data on Sponsorships rainfall, water levels and flows at SCA gauging Relevant events and activities that further the SCA’s stations. It then uses models to predict catchment vision, values and goals are eligible for SCA inflows over 24 hours. Predictions are uploaded to sponsorship. Sponsored activities are mainly for the SCA intranet every six hours. If rainfall exceeds a water industry events, such as conferences. Other trigger level programmed for each gauging station, sponsored activities produce educational outcomes Mike FLOODWATCH automatically sends an email or benefit water quality. warning to staff designated for response. In early 2007 the system was connected to the SCA’s Education to protect the intranet mapping system ActiveMap to improve useability and access. catchments and save water The SCA influences the knowledge, skills and behaviour of individuals and organisations as these Grants and incentives relate to water issues and catchment health. During 2006–07 we conducted 27 education activities. Our SCA grants programs education activities interact with other SCA catchment The majority of gains in catchment health are achieved management strategies such as compliance, through working in partnerships with landowners and on-ground works, incentives, and regulation. other stakeholders. The SCA’s grants and incentives The Warragamba School Education Program schemes are directed towards improving the condition engages with school students and teachers, mainly of the 91 percent of land and waterways within the onsite at Warragamba Dam. We increasingly reach catchments that are not owned by the SCA. this audience online at the SCA website and through a partnership with the Department of KRA 04 Education and Training (DET). Sydney Catchment Authority | Annual Report 2006–07 57
Above: SCA staff are developing a comprehensive range of tools and training to support councils working with the regional plan.
Case Study REP development assessment tools and training The neutral or beneficial effects (NorBE) test is a key component of the Drinking Water Catchments Regional Environmental Plan No 1 (REP) development assessment and approvals process. The SCA developed the NorBE Assessment Tool in 2006. The tool aims to help councils and government agencies assess whether proposed development would have a neutral or beneficial effect on water quality. It incorporates: • current recommended practices • standard conditions in process, onsite system choice and placement, and subdivisions • computer-based stormwater and wastewater modelling programs.
The NorBE Assessment Tool integrates with web-based software available to council staff. This software guides users through the assessment and records the decision process for each development application. The software also allows quarterly reporting by councils to the SCA, as required by the REP. We have completed the first phase of our Development Assessment Education Program in 2006–07, with 28 workshops for council staff and other stakeholders. The training focused on the requirements of the REP, when and how to use the NorBE Assessment Guidelines and Tool, when to refer proposals to the SCA for concurrence, and understanding reporting requirements. The SCA trained councillors, senior local government managers and consultants who work in the catchments. Further workshops trained council staff to use the web-based software and the NorBE assessment template. The education program has been supplemented by in-house mentoring of council officers by SCA staff. The SCA also developed a brochure for councils to provide to members of the public explaining the REP and how it may apply to them. The benefits of the SCA training and tools are already evident, with significant improvement in assessment of water quality impacts, reduced risk of detrimental development, and reduced costs to councils. Over 300 participants from 14 of the 15 catchment councils attended the training workshops. An independent evaluation of the training concluded, ‘Staff across all councils are well versed in their understanding of NorBE and related tools, and can use them effectively’. Almost all participants (97 percent) reported confidence in meeting their obligations in assessing NorBE, and 94 percent reported being ‘confident’ or ‘very confident’ of maintaining a good relationship with the SCA.
KRA 04 Sydney Catchment Authority | Annual Report 2006–07 The program informs visitors, media and water • contributing to the inter-agency Metropolitan users about important current water storage levels, Water Plan Education Group, which manages 58 outlines what the government is doing, provides the Water for Life Education Program practical water saving tips and responds to • responding to over 225 telephone and email enquiries about recreational facilities and enquiries from the community about water opportunities at SCA dams. quality and quantity matters In 2006–07, we achieved the following results • managing the Streamwatch program to support working with the education sector, visitors and the water quality monitoring in local waterways by community. community groups and schools. Education sector Visitor education A new website resource developed specifically for Working with approximately 16,000 visitors plus Higher School Certificate Chemistry students and special interest groups and the media, the teachers was released during the year. The site Warragamba Visitor Education Program included: incorporates multimedia resources including text and • new exhibition resources including an updated video files, as well as virtual experiments and interactive photographic display of dam storage levels, quizzes. The resource was developed in partnership graphic information on water storage status and a with the Department of Education and Training (DET) display and DVD outlining the SCA’s deep water and the Science Teachers Association of NSW, and has access projects received very positive feedback from users. • facilitating access and escorting media onsite as We continued our partnership with the DET to part of the SCA’s response to media enquiries and develop the Water Quality: Higher School Certificate requests. (HSC) Biology electronic professional development resource for science teachers to be launched in Education to save water March 2008. We also hosted over 6,000 primary and The NSW Government’s 2006 Metropolitan Water Plan secondary school students on excursions at outlines a range of strategies to ensure Sydney’s water Warragamba Dam to study water quality issues. supplies are secure, during drought and for the long term. Community education Education is an essential part of sustainable water The Community Education Program works with management, and the government’s Water for Life adults in local communities and includes work with Education Program is an integrated part of the plan. farmers, industry groups, householders and other The SCA supports the program, both financially government agencies, including local councils. All ($250,000 per annum) and as part of the inter- SCA education programs are informed by best- agency group that oversees the program. practice environmental education principles and practice, and targeted research. The SCA also provided $150,000 to fund the radio component of Sydney Water’s multimedia water The program is an area of growth for the SCA. conservation education campaign in 2006–07. An Work with the community included: analysis of the campaign’s effectiveness indicated • developing and delivering 28 training that it achieved an awareness level of 63 percent workshops for council development control staff, during the period January to June 2007. The councillors and private consultants relating to campaign also demonstrated a positive impact on development assessment under the Drinking voluntary water-saving behaviours. Radio was Water Catchments Regional Environmental Plan particularly effective at extending the campaign No 1 (REP) as part of an ongoing regional plan message in a cost effective way. education program (see case study previous page) • developing the Rural Living Handbook (see case study on page 62) in partnership with Goulburn Mulwaree Council
KRA 04 Sydney Catchment Authority | Annual Report 2006–07 key result area Results through 59 05 relationships
Above: The SCA works in partnership with landowners to achieve its vision of healthy catchments and quality water.
Sydney Catchment Authority | Annual Report 2006–07 Key result area 05 – Results through relationships 60 60 So that we collaborate effectively and creatively with our partners, customers and the wider community we will achieve the following outcomes over the period 2002–07: • agreed outcomes and targets of joint projects will be achieved • customer service agreements will be to the satisfaction of the SCA and our customers • relevant decisions and work planning will be informed by community views • SCA and government partners will have agreed priorities and responsibilities for delivering outcomes.
Consulting to make Consulting on SCA Metropolitan the best decisions Water Plan projects Progress on our Metropolitan Water Plan activities Engaging with the community to understand their continued to be a focus for consultation with views is an important part of our work and helps community groups, industry bodies, local councils inform our decisions. and other government agencies. Important documents about SCA activities were exhibited during 2006–07. Table 11 on page 63 Groundwater investigations summarises the SCA’s formal stakeholder and A community reference group for our groundwater community consultation processes and outcomes on investigations in the Southern Highlands these key corporate documents. (Kangaloon) was established by the then Minister for the Environment in June 2006 and continued to Local Government Reference Panel meet in 2006–07. The SCA provided scientific and The SCA established the Local Government technical information and organised site visits and Reference Panel in 2000. It continues to be a briefings. Other consultation activities around the valuable forum for sharing information with groundwater project at Kangaloon included councils. Most of the 15 councils in the catchments doorknocks and letterbox drops to nearby residents, are represented on the panel, which is chaired by and stakeholder briefings as requested. Newsletters the SCA. about the project were also distributed to residents In 2006–07 the panel met in August, November, of the Southern Highlands. February and May and considered reports on the Residents in Western Sydney also received a following: newsletter about the Western Sydney groundwater • updates on the SCA’s Metropolitan Water Plan project and nearby residents were doorknocked and projects letterboxed. We also provided targeted stakeholder briefings about the project. • updates on the regional plan • SCA Corporate Plan 2007–2012 The Metropolitan Water Plan Groundwater Investigation Report and supporting technical • Special Areas plans of management studies were publicly exhibited from 3 July 2006 to • SCA sewerage program 18 September 2006. Nearly 500 people visited the • SCA regulatory program displays during the exhibition period and 1,330 • determination times for development summary reports were distributed. The exhibition applications referred to the SCA included information on both the Kangaloon and Western Sydney groundwater projects. • SCA Science Pathogen Program • Rural Living Handbook The SCA received 71 submissions. These were developed into a submissions report, which was • Raw Water Quality Management Framework presented to the NSW Government and sent to all • SCA input to review of local environmental community members who made submissions. The plans. government decided to proceed with planning approval for permanent borefield development. KRA 05 Sydney Catchment Authority | Annual Report 2006–07 Shoalhaven water supply transfers and Following the public exhibition, 129 submissions were received. These submissions, together with comments environmental flows 61 received by our community relations team at the Community consultation continued in 2006–07 in mobile shopfront, over the phone and at the displays, relation to the Shoalhaven water supply transfers were developed into a community consultation and and environmental flows project (with the submissions report which was presented to the Department of Water and Energy). The community government. The government subsequently adopted reference group established in 2005 continued to several proposals and a way forward and reported meet. these back to the community in March 2007 (see KRA A discussion paper and 18 technical reports for the 02 page 35). project were placed on exhibition for public comment from 28 August 2006 to 6 October 2006. The Warragamba deep storage access project discussion paper included two environmental flow Consultation with the Warragamba community options, six transfer options and various options for continued around the SCA project to access deep operating Tallowa Dam. A series of three values water at the bottom of Warragamba Dam. The workshops helped inform the discussion paper. Nearly consultation focused on minimising the impact of 3,000 discussion papers were distributed during the the project on the local community. Site visits were public exhibition. carried out to discuss issues with the community. During the exhibition period a mobile shopfront, visited by nearly 2,000 people, operated for five days a week. Three static displays, three community information and feedback sessions and over 20 stakeholder briefings also formed part of the consultation to support the exhibition. Supporting communications activities included newsletters, advertisements, media releases and signage.
KRA 05 Sydney Catchment Authority | Annual Report 2006–07 62
Above: The SCA worked with Goulburn Mulwaree Council to produce the Rural Living Handbook as a practical guide to catchment issues for rural landholders. Case study Rural Living Handbook The Rural Living Handbook – a Guide for Rural Residential Landholders is a joint project between Goulburn Mulwaree Council and the SCA. The handbook provides practical guidance about catchment issues for new and existing landholders in rural subdivisions. An initiative of Goulburn Mulwaree Council, the handbook covers topics such as purchasing a property, natural resources, property management and local information. A targeted distribution process transforms the publication into a meaningful community education program. SCA involvement was prompted by increasing fragmentation of large rural landholdings into rural residential subdivisions within the catchments, particularly in areas such as Goulburn. The probability of intensified land use and increased residential development is likely to provide challenges for the SCA, Goulburn Mulwaree Council and for those people taking up landholdings. Like council, the SCA is keen to see these social and economic trends played out in the context of sustainability and respect for the environment, catchment health, and water quality. As Goulburn Mulwaree Mayor Paul Stephenson says, ‘Becoming a rural resident – even a part-time one – can bring much enjoyment. But equally it creates many responsibilities… even the smallest of rural blocks can provide a challenge if you have never before encountered noxious weeds, prepared for bushfire season or managed an effluent system’. The SCA helped develop the handbook by coordinating government and non-government agency contributions, funding a writer, designing and publishing the handbook, and funding development of a distribution strategy. The handbook has been a great success, with over 1000 hard and electronic copies distributed. It also won the council the R H Dougherty Award for Excellence in Communication (part of the 2007 Local Government Awards). The judges described it as ‘an outstanding project, clever idea, clearly expressed and well produced’. The SCA is currently working with Wollondilly, Upper Lachlan and Lithgow councils to produce their own versions of the handbook. KRA 05 Sydney Catchment Authority | Annual Report 2006–07 Statutory stakeholder and community consultation processes and outcomes on key documents 63 The SCA sought formal stakeholder and community feedback on strategic issues in 2006–07, which are set out in Table 11.
Table 11: Formal consultation process and outcomes Issue Date Mode of consultation SCA response Raw Drinking December Draft framework provided to Independent Pricing Agency comments considered Water Quality 2006 and Regulatory Tribunal (IPART), NSW Health, and incorporated into Management Department of Environment and Climate Change framework. Framework (DECC), Department of Water and Energy (DWE). January 2007 Revised draft for comment – Sydney Water, Comments considered and Metro Water Directorate Cabinet Office. incorporated into framework. April 2007 Briefing – Local Government Reference Panel. Three submissions received in April 2007 Letters to stakeholders – catchment councils, response to public exhibition catchment management authorities (CMAs). period. Representations report prepared and forwarded to May – Public exhibition – notice in The Sydney IPART. Once finalised, a copy of June 2007 Morning Herald and catchment newspapers. the framework will be Notice of draft plan on SCA website. provided to submission makers. Pesticides Use December – Public exhibition – notice in the Sydney No submissions were Notification Plan January 2007 Morning Herald and catchment newspapers. received. The plan was Notice of draft plan on SCA website. finalised in May 2007. Special Areas May 2006 Draft plans peer reviewed by Melbourne Water Draft plans modified to adopt Strategic Plan of and eWater Cooperative Research Centre. recommendations by peers. Management August – Public exhibition – notice in the Sydney Thirty-one submissions (SASPoM) October 2006 Morning Herald and catchment newspapers received on the SASPoM and Wingecarribee from 21 August 2006 to 20 October 2006. six submissions received on Swamp and Notice of draft plan on SCA and DECC websites. the WSSAPoM. Special Area Plan Plans on display at Campbelltown, Representations report of Management Wingecarribee, Goulburn Mulwaree, Upper prepared and individual (WSSAPoM) Lachlan, Oberon, Shoalhaven, Sutherland, Blue letters issued to all those who Mountains and Wollondilly council offices and made submissions. libraries. The Minister adopted the August 2006 Letters to stakeholders – catchment councils, plans on 28 February 2007. Nature Conservation Council, National Parks Association, Total Environment Centre, Colong Foundation, Aboriginal community groups and land councils, recreational user groups, Planning NSW, Department of Primary Industries (DPI), Sydney Water, CMAs, Natural Resources Commission, Rural Fire Service and members of parliament. August 2006 Face-to-face meetings – Wollondilly, Wingecarribee, Blue Mountains and Goulburn councils; Rural Fire Service; NPWS Regional Advisory Committees (Blue Mountains, Sydney South and South Coast) and Local Government Reference Panel. August – Consultative forums – Aboriginal community September groups; recreational user groups and 2006 environmental groups. KRA 05 Sydney Catchment Authority | Annual Report 2006–07 Working across government These groups enhance the SCA’s partnerships with the Department of Water and Energy (Accelerated 64 and the water industry Sewerage Program and Shoalhaven River environmental flows), Department of Environment and Interagency consultation Climate Change (Special Area Strategic Plan of Management and Integrated Monitoring for the Metropolitan Water Chief Executive Hawkesbury Nepean River), Department of Primary Officers’ Committee Industries (Grazier Education Partnership), and the The SCA’s Chief Executive is a member of the Hawkesbury Nepean and Southern Rivers catchment Metropolitan Water Chief Executive Officers’ management authorities (Catchment Protection Committee chaired by the Department of Premier Scheme). The SCA contributes financially and in kind to and Cabinet. The committee oversees urban water the success of these partnership programs. Many of management issues including the development and these partnerships are detailed throughout this report. delivery of the Metropolitan Water Plan. Subsidence Management Plan Review Memoranda of understanding Committee During the year the SCA revised its memorandum of As a major stakeholder, the SCA is represented on understanding (MoU) with NSW Health and a new the Subsidence Management Plan Review MoU began in September 2006. The SCA also has a Committee, an inter-agency committee convened current and long-standing MoU with the EPA (DECC). by the Department of Primary Industries (DPI). The The agencies meet to consider issues of common committee is involved in reviewing and endorsing interest, coordinate policy and achieve business plan subsidence and environmental management plans outcomes. and asset protection plans to mitigate the impacts The SCA has also entered into MoUs with the of mining and ensure the integrity and ongoing Hawkesbury Nepean and Southern Rivers serviceability of assets. catchment management authorities to help share information and coordinate catchment Dams Safety Committee management initiatives. The NSW Dams Safety Committee (DSC) is a government committee established under the Dam Working together to deliver the Metropolitan Safety Act 1978. Its role is to formulate measures to Water Plan ensure the safety of dams and to maintain surveillance A whole-of-government approach to delivering of prescribed dams. The SCA’s nominee, the General projects in relation to the Metropolitan Water Plan Manager Dam Safety, has been appointed as a has required working in partnership with a number committee member until December 2008. The SCA of agencies, in particular the Department of also supplies resources for several sub-committees. Commerce, Department of Environment and Climate Change (DECC), DWE, NSW Treasury and Australian National Committee Sydney Water. on Large Dams Australian National Committee on Large Dams Inter-agency partnerships for catchment (ANCOLD) is a voluntary association of local, state improvement and river health and federal agencies, dam owners and operators, The SCA has executive steering groups for its major contractors, consultants and academics. The SCA inter-agency partnership programs in support of General Manager Dam Safety was appointed to the catchment protection and river health. An Executive of ANCOLD in 2006 for three years. executive member from each partner agency monitors progress and reports on achievements. Water Services Association of Australia The SCA is an active member of the Water Services Association of Australia (WSAA). WSAA is a focal point for communicating views on issues of importance to the urban water industry. The association also commissions research and brokers information on behalf of the industry. KRA 05 Sydney Catchment Authority | Annual Report 2006–07 Australian Water Association We also worked with the media to help educate the community about water quality and Continued membership of the Australian Water 65 65 Association provides the SCA with important catchment management issues. Several corporate skills and abilities across a range of water important metropolitan newspaper articles industry activities. helped improve people’s awareness of the SCA’s role in managing the drinking water catchments. WaterAid Australia The SCA also worked closely with Sydney Water WaterAid Australia is an international aid agency and NSW Health to refine protocols and dedicated to empowering poorer communities to communication plans for managing incidents. secure and create long-term sustainable access to These were tested in scenarios and were clean water and effective sanitation. WaterAid is a successfully used in a water quality event in partnership between the Australian water industry late June 2007. and the aid sector. WaterAid Australia currently works directly in Timor-Leste and Papua New Publishing information Guinea and supports the work of WaterAid in South Our many publications help inform the Asia and Africa. community about our activities, The SCA WaterAid committee was formed in 2007. responsibilities and the qualities of the An SCA representative attends monthly meetings catchments we protect. with other water industry representatives. As well, The SCA produced the following key SCA staff members are invited to make regular publications in 2006–07: donations to WaterAid through payroll deductions. • Annual Report 2005–06 • Annual Water Quality Monitoring Report Keeping stakeholders informed 2005–06 • Annual Report on Catchment Management Communicating through the media and Protection Activities 2005–06 We continue to use the media to communicate our • Neutral or Beneficial Effect on Water Quality role and objectives to the broader community. With Assessment Guidelines the drought still of strong interest, media focus on the SCA and our projects remained high. We • Guide for Agricultural Development responded to over 600 media enquiries in 2006–07, • SCA Environmental Plan 2006–10 an increase on the numbers seen in 2005–06. • Special Areas Strategic Plan of Management Progress on Metropolitan Water Plan activities, • Wingecarribee Swamp and Special Area rainfall and dam levels continued to be the key SCA Plan of Management issues discussed in the media. • Rural Living Handbook (in partnership with Important media announcements during 2006–07 the Goulburn Mulwaree Council). included the government’s decision to introduce new Exhibition documents environmental flows for the Shoalhaven River and improve fish passage at Tallowa Dam. Key milestones • Shoalhaven Water Supply Transfer for our groundwater investigation program were also and Environmental Flows project announced through the media and received particular • Groundwater Investigations Project focus in Southern Highlands, Illawarra and Western • Environmental Plan Sydney media. • Special Areas Strategic Plan of Management We continued to work with our partner agencies to • Wingecarribee Swamp and Special Area deliver the important water conservation messages in Plan of Management the government’s Water for Life Education Program. This included key multimedia advertising campaigns • Raw Drinking Water Quality in 2006–07. Management Framework.
KRA 05 Sydney Catchment Authority | Annual Report 2006–07 SCA publications are available in electronic form Complaints on our website and on CD-ROM. This reduces 66 Twenty-four complaints to the SCA were resolved printing costs, paper use and storage requirements. during 2006–07, eight of which were carried over It also allows internet users, including educational from the previous year. Of the 22 complaints institutions and other government agencies, fast received in 2006–07, 16 were resolved and six will and easy access to our information. continue into 2007–08. Two of the unresolved The SCA continues to make all its publications, complaints relate to the works being undertaken as including those on the website, available in printed part of the Metropolitan Water Plan, specifically form on request. A full list of publications is deep water access at Warragamba Dam. One relates featured in Appendix 17. to concerns about the implementation of the Drinking Water Catchments Regional Environmental SCA website Plan No 1 (REP), one relates to tenancy issues, one The SCA website (www.sca.nsw.gov.au) provides relates to picnic area facilities, and the remainder information about our activities, the assets we relate to a property matter. (See Appendix 12 for 66 manage, and the catchments we protect. Visitors to details.) the website in 2006–07 increased by 40 percent, Where appropriate the SCA has undertaken the mainly due to increased interest in dam levels and following improvement activities in relation to our extensive public exhibition and community some of the complaints lodged in the year. consultation activities over the reporting year. • Signage at public facilities has been improved to The website features weekly dam levels, daily more clearly reflect opening and closing times rainfall information (working days) and weekly and an incident notification number. information on water transfers from the Shoalhaven. • The process for closing the picnic areas has been The community can access all available SCA discussed with security contractors. publications including reports, community consultation material, brochures and fact sheets. • Awareness has been raised about our obligations as ‘good neighbours’ for the property A new website resource developed specifically for we own and manage. Higher School Certificate Chemistry students and teachers was released this year (see KRA 04 page 58).
Table 12: Number of visits to the SCA website Year Visits 2002–03 64,427 2003–04 164,331 2004–05 367,163 2005–06 462,284 2006–07 648,335
Photography In 2006–07 we commissioned photographic assignments to document progress on the SCA’s major infrastructure works. The photography informs the community about our work and provides a technical and historical archive of our activities.
KRA 05 Sydney Catchment Authority | Annual Report 2006–07 key result area Dynamic, 67 67 supportive workplace 06 See Sydney Catchment Authority Division of the Government Service Annual Report
Above: SCA staff with appropriate skills and training supported the Rural Fire Service response to the Barkers Creek fire in the Warragamba Special Area in November 2006.
Sydney Catchment Authority | Annual Report 2006–072006–07 Key result area 06 – Dynamic supportive workplace 68 68 So that we are able to meet the challenges facing the organisation both now and in the future, we will achieve the following outcomes over the period 2002–07: • the SCA will provide a safe, healthy workplace and facilities • comprehensive workforce planning and management will support the SCA • SCA staff will contribute to and work within the business planning framework • the SCA will be a fair and equitable workplace that reflects our values.
The SCA Division of the Government Service (SCA Division) provides personnel services to the SCA. 68 These services reflect our sixth key result area – Dynamic, supportive workplace. For all personnel services details see the annual report of the SCA Division of the Government Service (page 157).
KRA 06 Sydney Catchment Authority | Annual Report 2006–07 key result area Quality systems 69 07 and processes
Above: An incident briefing during Exercise Olive – a successful scenario exercise between the SCA, Sydney Water and NSW Health to test responses to a serious water quality incident.
Sydney Catchment Authority | Annual Report 2006–072006–07 Key result area 07 – Quality systems and processes 70 70 So that we get it right the first time, we will achieve the following outcomes over the period 2002–07: • the SCA will comply with relevant statutory and regulatory requirements • an agreed corporate governance framework will inform decision making within the SCA • the SCA will consistently apply standardised business processes.
Achievements in Visitor Centre and Operations Building will have rainwater tanks (which have been installed), dual- environmental performance flush toilets, and other water conserving devices to minimise water usage. The building is due for Environment Plan completion in the middle of 2008. The SCA 2006–10 Environment Plan was exhibited Considerable work has been done to meet the target in draft in June 2006 and finalised in September of more than 90 percent of SCA leased buildings 2006. The plan addresses the environmental having water conserving devices installed by 31 impacts of the SCA’s business activities and uses December 2008. Dual-flush toilets and water-saving environmental performance indicators from the taps have been installed in the SCA’s new Macarthur SCA operating licence. office. The SCA’s new head office building in Penrith, The five objectives in the plan relate to: water due for completion in the middle of 2008, will have a conservation, energy use, waste, heritage, and 100,000-litre rainwater tank, water-saving taps in the environmental impact assessment of SCA activities. bathrooms and kitchens, and dual-flush toilets. Each objective has actions, targets, timeframes and In April 2007 a leakage and loss report was provided performance indicators. These are reported on in to the Independent Pricing and Regulatory Tribunal the following sections. (IPART) detailing the SCA’s actions to address water leakages and losses. The SCA has considered the Water conservation recommendations in the report and continues to The SCA is committed to conserving water and address them. The report, including actions and minimising water losses. We report annually on the timeframes, can be found on the SCA’s website at total water we consume as a key performance www.sca.nsw.gov.au. indicator in table 1 (page 7). In 2006–07 the SCA The SCA has offered free DIY water-saving kits to used an estimated 3,599 kilolitres of water at its all staff as part of Sydney Water’s WaterFix Program. Penrith head office (determined by percentage floor space occupied), compared to 2,938 kilolitres in Sydney Water is the SCA’s principal customer, 2005–06. This increase is likely to be as a result of accounting for over 99 percent of raw water the increased number of staff at its Penrith head supplied. The SCA collaborates with Sydney Water office and fewer other tenants in the building in the and its other customers to ensure consistent period. approaches to demand management and water conservation. Both Sydney Water and the SCA’s More than 90 percent of SCA-owned buildings had billing notices are a means of delivering water water conserving devices installed by 31 December conservation messages to customers. The SCA also 2006, as required by the environment plan. The provided financial and in-kind support water conserving devices included water-efficient to the Water for Life and Sydney Water community showers and toilets in the Warragamba conference education campaigns. centre, and spring-loaded taps and dual-flush toilets in the picnic grounds. The new Warragamba
KRA 07 Sydney Catchment Authority | Annual Report 2006–07 Energy management • an electronic monitoring system has been installed at the new pumping stations allowing a The SCA is committed to using energy efficiently 71 throughout its operations. The new five-year SCA reduction in energy costs by using off-peak Energy Management Plan 2006–10 was launched on power when pumping 1 September 2006. A database will monitor progress • to comply with the Premier’s Memorandum No and compliance with the requirements of the plan. 2004–4 , all leased buildings achieved a minimum 4-star Australian Building Greenhouse Rating The SCA’s energy performance continues to compare (AGBR) and all buildings owned by the SCA rated favourably against average benchmarks for other over the 3-star minimum. The new Macarthur government agencies. The SCA reports annually on its building has 4.5 stars as will the new head office energy usage to the Department of Water and Energy building at Penrith when completed in 2008 and to the Water Services Association of Australia. • a review of the energy management clauses in Summary of energy-related achievements during the SCA’s contract template was undertaken and 2006–07: 100 percent of appropriate contract documents • operational vehicles have been re-signed to the contained energy management clauses. Greenfleet Australia program • purchase of green power remains at 10 percent Energy consumption of total consumption (excluding Shoalhaven Total energy (electricity, fuel and gas) consumed pumping). The SCA now has the right to use the in 2006–07 was 1,241,980 gigajoules, 13.5 percent Green Power Customer logo more than for the previous year (1,093,579 • power factor correction equipment has been gigajoules in 2005–06). The increase in usage was installed to manage demand at Tallowa Dam in a primarily due to increased volumes of water being bid to reduce energy cost pumped from the Tallowa Dam to Warragamba and Nepean dams as a result of the drought. Total • the SCA has negotiated the best commercially energy used for water supply infrastructure was available energy tariff for 2006 Metropolitan 339,730,740 kilowatt hours. Pumping from the Water Plan projects and continually negotiates Shoalhaven Scheme accounted for 98 percent of best prices for all energy agreements those hours. Table 13 compares energy consumption figures for the past five years.
Table 13: Electricity consumption for the past five years Electricity use kilowatt hours 2002–03 2003–04 2004–05 2005–06 2006–07 Office buildings 704,206 778,841 713,742 934,985 1,030,153 Public buildings 201,103 152,428 167,748 147,115 135,808 Other facilities 129,831 145,722 142,302 124,136 99,468 Water supply infrastructure 4,428,809 3,977,518 3,898,908 4,973,585 8,206,532 Shoalhaven drought transfers 55,959,821 220,015,892 242,111,812 294,246,232 331,524,208 Infrastructure roadways 21,395 21,587 21,629 22,128 20,167 Total 61,445,166 225,091,988 247,056,141 300,448,181 341,016,335
Pumping from the Shoalhaven Scheme consumed 331.5 gigawatt hours of electricity in 2006–07, approximately 294 gigawatt hours in 2005–06, and 242 gigawatt hours in 2004–05. During the year, our vehicle fuel use decreased by 1.32 percent and the number of our vehicles fell by six percent. The SCA has two electric hybrid vehicles in the vehicle fleet, reducing greenhouse emissions and improving environmental performance. In both 2005–06 and 2006–07 the SCA generated 960 kilowatt hours of green energy from solar cells.
KRA 07 Sydney Catchment Authority | Annual Report 2006–07 Table 14: Energy comparisons for the past two financial years 72 Energy type Total energy (GJ) Change in Costs of energy ($) GJ 2005–06* 2006–07 2006–07 2005–06* 2006–07 Electricity 1,081,613 1,227,659 13.50% 8,753,421 10,096,620 Petrol 4,570 4,351 -4.78% 144,009 141,079 Auto distillate (diesel) 6,630 6,716 -1.30% 193,219 198,616 Bio fuel (B20) 0 3,227 100% 0 128,251 Wood 713 0 -100% 1,600 0 Gas 53 27 -49.65% 1,486 986 Total 1,093,579 1,241,980 13.57% $9,093,734 $10,565,552
* Figures for 2005–06 and 2006–07 rounded to nearest whole numbers
Table 15: Greenhouse emissions comparisons Energy type GHGE* GHGE % % Change in GHGE 2005–06 2006–07 2005–06 2006–07 2006–07 Electricity 286,667 325,359 99.71 99.71 13.50 Petrol 302 287 0.10 0.09 -4.78 Auto distillate (diesel) 462 468 0.16 0.14 -1.30 Bio Fuel (B20) 0 177 0 0.05 100 Wood 67 0 0.02 0.00 -100 Gas 3 1.6 0.00 0.00 -49.65 Total 287,501 326,293 100 100 13.49
* GHGE – Greenhouse gas emissions rounded to nearest whole numbers
Minimising waste More information about the SCA’s waste The environment plan commits the SCA to minimisation activities, including performance managing and minimising resource use and waste indicators, purchasing information and a response generation and reducing the environmental impacts to the NSW Government’s WRAPP, can be found in of our operations. These obligations are reflected in Appendix 15. the SCA’s corporate, divisional and team plans. Heritage management To manage its waste minimisation commitments, the The SCA manages its heritage assets in accordance SCA undertakes annual waste audits. The 2006–07 with the principles of ecologically sustainable waste audit was conducted in November and development. December 2006 with a report finalised in March 2007. All actions from the audit are being addressed. This The SCA is developing its heritage and conservation will include a review of the SCA’s Waste Reduction and register, which is due for completion in 2008. The SCA Purchasing Policy (WRAPP) implementation. prepares conservation management plans (CMPs) for national and state significant heritage items. In The SCA buys and uses recycled or environmentally 2006–07, the SCA had CMPs endorsed by the responsible materials. We encourage the use of Heritage Council for 25 percent of listed items (the electronic rather than printed documents, double- same as in 2005–06). We have forwarded two CMPs sided printing and email. (one for the Warragamba Supply System, the other for Woronora Dam) to the Heritage Council for endorsement with a further CMP being finalised. KRA 07 Sydney Catchment Authority | Annual Report 2006–07 Heritage maintenance schedules will be prepared The report found that the SCA achieved a very high for state heritage items once the CMPs are level of compliance with the operating licence. Of 73 complete. those conditions assessed, 88 percent achieved full to The SCA’s heritage assets, as listed on the SCA’s draft high compliance (35 full, four high of 44 conditions Heritage and Conservation Register, are included in audited). Only two licence conditions were assessed as table 24 in Appendix 17. having low levels of compliance. One of these related to a memorandum of understanding (MoU) with the Assessing environmental impacts Department of Water and Energy and the other was a of SCA projects technical non-compliance relating to reporting on leakage and loss actions. To minimise the environmental impacts of its infrastructure projects, the SCA undertakes an Water management licence annual review of a selection of projects. The The SCA holds a water management licence issued findings of the review are used to improve the by the DWE under the Water Act 1912. The licence environmental performance of SCA projects and regulates our access to water resources by activities. authorising us to take and use water from water In 2006–07, 75 percent of the projects reviewed met sources and water management works and to the SCA’s environmental impact assessment policy extract and release water to rivers. The licence, as required by the environment plan. The which has a 20-year term, must be reviewed within improvements identified related to the processing six months of being issued and before the end of of documentation under the policy. every five-year period. A five-year review was The plan also requires reviewed projects to meet finalised in 2006–07 and the SCA was issued a the environmental assessment conditions imposed. revised licence on 1 December 2006. Of the projects reviewed, 71 percent complied with the conditions. The improvements identified related Improving our processes to implementing contractor management processes. Intranet Of the projects reviewed 100 percent contained the The SCA intranet receives a high rate of usage by relevant environmental performance provisions and staff as it is the key resource for SCA procedures and 71 percent met the environmental contract policies contained within the business management conditions. Improvements identified relate to system. By June 2007, the intranet held about 3,000 implementing contract management processes. documents and had been enhanced by including a All of the findings of the 2005–06 reviews have search engine. It brings a consistent approach to been addressed. The issues identified include a many common functions across the organisation review of the contract shells, training in and is continuously updated and improved in line environmental impact awareness, and with changes to the business management system. improvements to the review process. Planning has begun to adopt a new content management system for the intranet to support improvements to the business management system. Developing our regulatory framework Enhancing project management In 2006–07 we continued refining our approach to Operating licence audit project management to better meet the needs of our The Sydney Water Catchment Management Act 1998 diverse projects. The majority of projects conducted are (SWCM Act) requires IPART to report annually to now documented and reported in a consistent manner. the Minister on its audit of the SCA operating Staff involved with managing projects have licence. The 2005–06 report was tabled in undertaken initial project management training to Parliament on 30 May 2007. help them use the established project management processes. Coaching and mentoring is available for project managers to help them adopt best practice in delivering SCA projects. KRA 07 Sydney Catchment Authority | Annual Report 2006–07 Grants manual Managing information 74 During the year, the SCA prepared a grants manual and technology to help staff develop, assess, deliver and manage grant and incentive programs in accordance with In 2006–07, the SCA’s management of information our grants and incentives framework. The manual and technology encompassed records and library provides clear and concise guidance, procedures, along with information technology. template documents and reference material. Records The SCA implemented the initial phases of Managing SCA property electronic document management during the Braidwood land management reporting period. This included an upgrade of the existing TRIM system, a new ministerial reporting In 2006–07, the SCA began the second stage of and management system, and management of the leasing 17 of its properties in the Braidwood area drawings database. The SCA also received approval for agricultural purposes (see KRA 01 page 26). from State Records for its functional records disposal authority. Land acquisition In 2007, the SCA purchased two properties located SCA library within the Special Area at Upper Cordeaux as part In 2006–07 the library upgraded the information of its policy to reduce threats to water quality. The management system, streamlining administrative total price paid was $3.2 million. processes while providing a user-friendly web browser interface for users. Work is also continuing Land disposal on upgrading the library intranet site and adding No lands were disposed of during the year. e-journals access. However, the SCA began the process of transferring land at Warragamba known as Picnic Ground No 1 Information technology to Wollondilly Shire Council by agreement under During the year, and in compliance with Premier’s the Land Acquisition (Just Terms Compensation) Act Circular on Electronic Information Security, the 1991. SCA’s Information Management and Technology Section was formally certified to the internationally Land information system recognised Information Security Management The SCA purchased land information software to Standard ISO/IEC 27001:2005. This certification provide an integrated land information system that covers data and information the SCA processes, meets the functional needs of the organisation in transmits or stores on SCA information technology 2007–08. infrastructure, systems or applications. The first stage of the project supports the SCA During 2006–07, major information technology statutory planning function (see KRA 01 page 22). The projects included providing the new Goulburn and second stage of the project will involve creating a base Macarthur offices with hardware and communications land information system with separate modules to network infrastructure. Other activities included meet the business needs of the SCA and integration upgrades and support to hardware and software with existing geographical information system and infrastructure for a range of core application and records management systems. business systems. These included the Maximo procurement and asset management system, the SUN Fleet management Systems general ledger and the Complete Human The SCA purchases its vehicles under a contract Resources Information System (CHRIS). signed in 2005. The return on vehicles sold at During the year, the SCA’s data network and office auction during 2006-07 has averaged a residual system platforms were available more than 90 percent value of 88 percent, with some vehicles returning as of the time. The SCA also continued developing the high as 103 percent. capacity to recover and backup data stored on its network.
KRA 07 Sydney Catchment Authority | Annual Report 2006–07 75
Above: The new SCA Macarthur office was officially opened in July 2007. It brings together catchment and bulk water teams who deliver programs and services in the south eastern areas of the catchments. Case study Upgrading SCA accommodation Penrith head office Commenced in 2007 and due for completion midway through next year, the Penrith Government Office Building will become the new home of the SCA. The site is located on the corner of Station and Belmore Streets, opposite Penrith railway station. At present, the SCA’s Penrith office staff are housed in three different buildings separated by busy streets. Moving to a single building will greatly improve staff communication and boost efficiency. The fit-out is based on ecologically sustainable design principles including recycling of rainwater, water saving devices, low-energy lighting and the use of ‘green’ fabrics in workstations and chairs. The SCA’s office will contain 17 small to medium-sized meeting rooms in addition to an interview room, an incident room and a board room. Each of the 17 meeting rooms will be named after an SCA dam, river or catchment. Latest information from Department of Commerce indicates that construction is running to schedule, with staff expected to move into the new office in 2008.
Macarthur office Staff from the Cordeaux and Kenny Hill offices relocated to the new Macarthur Office in Campbelltown in March 2007. The relocation enhances service delivery to stakeholders, and vastly improves working conditions for staff including upgraded information technology capacity. The site is also the first SCA office to be fitted out applying the new SCA Accommodation Standards, based on NSW Government Workplace Guidelines. Staff from the Goulburn office also relocated to new premises in early 2007.
Warragamba Visitor Centre and Operations Building Construction of the new Warragamba Visitor Centre and Operations Building began in March 2007 with completion expected in 2008. The new building will provide visitors with an enriched educational experience. Staff currently housed in three separate demountable and antiquated buildings will come together in modern accommodation equipped with the facilities necessary to effectively manage the dam, catchments, and visitor and education services.
KRA 07 Sydney Catchment Authority | Annual Report 2006–07 76 76 SCA financial reporting
Contents Independent auditor’s report – SCA 77 Letters from the Chairman and Chief Executive 79 Income statements 81 Statements of changes in equity 82 Balance sheets 83 Cash flow statements 84 Notes accompanying and forming part 85 of the financial statements
SCA Division financial reporting 169
Sydney Catchment Authority | Annual Report 2006–07 77
Sydney Catchment Authority | Annual Report 2006–07 78
Sydney Catchment Authority | Annual Report 2006–07 79
Sydney Catchment Authority | Annual Report 2006–07 SYDNEY CATCHMENT AUTHORITY INCOME STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007
Consolidated Entity Sydney Catchment Authority 2007 2006 2007 2006 80 Note $’000 $’000 $’000 $’000
Revenues 2 156,160 140,690 156,160 140,690
Expenses, excluding finance costs 3 (107,568) (101,754) (107,568) (101,754) and actuarial superannuation gains / losses Finance costs 4 (24,440) (16,786) (24,440) (16,786)
Profit before income tax, actuarial 24,152 22,150 24,152 22,150 superannuation gains / losses
Income tax on profit before actuarial 5a(i) (3,796) (9,351) (3,796) (9,351) superannuation gains / losses Profit before actuarial superannuation gains / losses & 20,356 12,799 20,356 12,799 fair value movements Superannuation actuarial gains 15 2,078 6,134 - - Personnel expenses associated with - - 2,078 6,134 actuarial gains Income tax on superannuation 5a(i) (623) (1,840) (623) (1,840) actuarial gains
Profit is attributable to: Equity holders of Sydney 21,811 17,093 21,811 17,093 Catchment Authority
The accompanying notes form part of these financial statements
Page 1 of 53
Sydney Catchment Authority | Annual Report 2006–07 SYDNEY CATCHMENT AUTHORITY INCOME STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007
Consolidated Entity Sydney Catchment Authority 2007 2006 2007 2006 Note $’000 $’000 $’000 $’000 81
Revenues 2 156,160 140,690 156,160 140,690
Expenses, excluding finance costs 3 (107,568) (101,754) (107,568) (101,754) and actuarial superannuation gains / losses Finance costs 4 (24,440) (16,786) (24,440) (16,786)
Profit before income tax, actuarial 24,152 22,150 24,152 22,150 superannuation gains / losses
Income tax on profit before actuarial 5a(i) (3,796) (9,351) (3,796) (9,351) superannuation gains / losses Profit before actuarial superannuation gains / losses & 20,356 12,799 20,356 12,799 fair value movements Superannuation actuarial gains 15 2,078 6,134 - - Personnel expenses associated with - - 2,078 6,134 actuarial gains Income tax on superannuation 5a(i) (623) (1,840) (623) (1,840) actuarial gains
Profit is attributable to: Equity holders of Sydney 21,811 17,093 21,811 17,093 Catchment Authority
The accompanying notes form part of these financial statements
Page 1 of 53
Sydney Catchment Authority | Annual Report 2006–07 SYDNEY CATCHMENT AUTHORITY SYDNEY CATCHMENT AUTHORITY STATEMENTS OF CHANGES IN EQUITY BALANCE SHEETS FOR THE YEAR ENDED 30 JUNE 2007 AS AT 30 JUNE 2007
Consolidated entity Consolidated Entity Sydney Catchment Authority Accumulated Funds Asset Total Equity 2007 2006 2007 2006 Revaluation Note $’000 $’000 $’000 $’000 82 Reserve Current assets 2007 2006 2007 2006 2007 2006 $’000 $’000 $’000 $’000 $’000 $’000 Cash and cash equivalents 6 13,837 9,235 13,837 9,235 Trade and other receivables 7 16,873 19,829 16,733 19,365 Balance at the beginning of the Financial Year 496,532 496,020 17,686 17,686 514,218 513,706 Other assets 8 801 366 737 366
Total current assets 31,511 29,430 31,307 28,966 Profit for the year 21,811 17,093 - - 21,811 17,093 Dividends (19,745) (16,581) - - (19,745) (16,581) Non current assets Disposal of land taken Property, plant and 9 1,117,400 868,308 1,117,400 868,308 directly to equity (18,708) - - - (18,708) - equipment Transfer to/(from) retained Total non current assets 1,117,400 868,308 1,117,400 868,308 earnings 9,453 - (9,453) - - - Gain/(loss) on property TOTAL ASSETS 1,148,911 897,738 1,148,707 897,274 revaluation - - 196,851 - 196,851 - Related income tax on items taken directly to Current liabilities equity (1,791) - (54,428) - (56,219) - Trade and other payables 10 39,607 35,592 50,235 47,785 Total (8,980) 512 132,970 - 123,990 512 Borrowings 11a 86,071 45,060 86,071 45,060 Provisions 12a 30,850 26,637 20,134 16,983 Balance at the end of the Current tax payable 5b (2,418) (1,494) (2,418) (1,494) Financial Year 487,552 496,532 150,656 17,686 638,208 514,218 Total current liabilities 154,110 105,795 154,022 108,334 Sydney Catchment Authority Accumulated Funds Asset Total Equity Revaluation Non current liabilities Reserve Borrowings 11b 293,101 270,308 293,101 270,308 2007 2006 2007 2006 2007 2006 Provisions 12b 116 3,003 - - $’000 $’000 $’000 $’000 $’000 $’000 Deferred tax liabilities 5c 63,376 4,414 63,376 4,414 Balance at the beginning of the Financial Year 496,532 496,020 17,686 17,686 514,218 513,706 Total non current liabilities 356,593 277,725 356,477 274,722
TOTAL LIABILITIES 510,703 383,520 510,499 383,056 Profit for the year 21,811 17,093 - - 21,811 17,093
Dividends (19,745) (16,581) - - (19,745) (16,581) NET ASSETS 638,208 514,218 638,208 514,218 Disposal of land taken directly to equity (18,708) - - - (18,708) - Transfer to/(from) retained EQUITY earnings 9,453 - (9,453) - - - Accumulated funds 487,552 496,532 487,552 496,532 Gain/(loss) on property Asset revaluation reserve 150,656 17,686 150,656 17,686 revaluation - - 196,851 - 196,851 - Related income tax on TOTAL EQUITY 638,208 514,218 638,208 514,218 items taken directly to equity (1,791) - (54,428) - (56,219) - Total (8,980) 512 132,970 - 123,990 512 The accompanying notes form part of these financial statements Balance at the end of the Financial Year 487,552 496,532 150,656 17,686 638,208 514,218
The accompanying notes form part of these financial statements
Page 2 of 53 Page 3 of 53
Sydney Catchment Authority | Annual Report 2006–07 SYDNEY CATCHMENT AUTHORITY BALANCE SHEETS AS AT 30 JUNE 2007
Consolidated Entity Sydney Catchment Authority 2007 2006 2007 2006 Note $’000 $’000 $’000 $’000 83 Current assets Cash and cash equivalents 6 13,837 9,235 13,837 9,235 Trade and other receivables 7 16,873 19,829 16,733 19,365 Other assets 8 801 366 737 366
Total current assets 31,511 29,430 31,307 28,966
Non current assets Property, plant and 9 1,117,400 868,308 1,117,400 868,308 equipment Total non current assets 1,117,400 868,308 1,117,400 868,308
TOTAL ASSETS 1,148,911 897,738 1,148,707 897,274
Current liabilities Trade and other payables 10 39,607 35,592 50,235 47,785 Borrowings 11a 86,071 45,060 86,071 45,060 Provisions 12a 30,850 26,637 20,134 16,983 Current tax payable 5b (2,418) (1,494) (2,418) (1,494)
Total current liabilities 154,110 105,795 154,022 108,334
Non current liabilities Borrowings 11b 293,101 270,308 293,101 270,308 Provisions 12b 116 3,003 - - Deferred tax liabilities 5c 63,376 4,414 63,376 4,414
Total non current liabilities 356,593 277,725 356,477 274,722
TOTAL LIABILITIES 510,703 383,520 510,499 383,056
NET ASSETS 638,208 514,218 638,208 514,218
EQUITY Accumulated funds 487,552 496,532 487,552 496,532 Asset revaluation reserve 150,656 17,686 150,656 17,686
TOTAL EQUITY 638,208 514,218 638,208 514,218
The accompanying notes form part of these financial statements
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Sydney Catchment Authority | Annual Report 2006–07 SYDNEY CATCHMENT AUTHORITY SYDNEY CATCHMENT AUTHORITY CASH FLOW STATEMENTS NOTES ACCOMPANYING AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007 FOR THE YEAR ENDED 30 JUNE 2007 Consolidated Entity Sydney Catchment Authority PRINCIPAL ACTIVITIES 2007 2006 2007 2006 Sydney Catchment Authority (SCA) is a NSW statutory body constituted under the Sydney Water Note $’000 $’000 $’000 $’000 Catchment Management Act 1998 (the Act). 84 CASH FLOWS FROM OPERATING ACTIVITIES The Act conferred and imposed upon the SCA certain functions with respect to the protection and management of certain catchment areas, with respect to the supply of water to Sydney Water Corporation Inflows (SWC) and other bodies, and with respect to other matters; it made provision for the protection of public Cash receipts Sydney Water Corp. 150,490 135,669 150,490 135,669 health and public safety and for the protection of the environment; it made consequential amendments to Cash receipts insurance claims 1,145 165 1,145 165 the Water Board (Corporatisation) Act 1994 and certain other acts. It was assented to on 14 December 1998. GST receipts 13,962 19,949 13,962 19,949 Cash receipts other 6,624 82 6,624 82 As required under s75 of the Act, a full review of the Act must be undertaken five years after the inception Interest received 934 827 934 827 of the Act. This review was undertaken in 2004, a report of this review was tabled in Parliament by the Minister for the Environment on 9 December 2004. Negotiation is currently being prepared to give effect 173,155 156,692 173,155 156,692 to the outcomes of the review. The SCA has considered draft amendments submitted by the Outflows Parliamentary Counsel and is currently in a process of liaising with the Parliamentary Counsel as to the Payments to suppliers and employees (105,959) (110,754) (105,959) (110,754) form of the proposed amendments. Borrowing costs (22,313) (14,264) (22,313) (14,264) Insurance claims expenditure (1,282) - (1,282) - Income tax paid (2,602) (11,023) (2,602) (11,023) (132,156) (136,041) (132,156) (136,041)
Net cash provided by operating activities 18b 40,999 20,651 40,999 20,651
CASH FLOWS FROM INVESTING ACTIVITIES Inflows Proceeds from sale of PP&E 4,504 388 4,504 388 Outflows Purchases of property, plant and (88,111) (138,108) (88,111) (138,108) equipment
Net cash used in investing activities (83,607) (137,720) (83,607) (137,720)
CASH FLOWS FROM FINANCING ACTIVITIES Inflows Proceeds from borrowings 110,571 165,211 110,571 165,211 Outflows Dividends (16,581) (15,387) (16,581) (15,387) Repayment of borrowings (46,523) (36,114) (46,523) (36,114) Payments of finance lease liabilities (257) (948) (257) (948)
Net cash used in financing activities 47,210 112,762 47,210 112,762 Net increase/(decrease) in cash held 4,602 (4,307) 4,602 (4,307) Opening cash and cash equivalents 9,235 13,542 9,235 13,542
CLOSING CASH AND CASH EQUIVALENTS 18a 13,837 9,235 13,837 9,235
The accompanying notes form part of these financial statements
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Sydney Catchment Authority | Annual Report 2006–07 SYDNEY CATCHMENT AUTHORITY NOTES ACCOMPANYING AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007
PRINCIPAL ACTIVITIES Sydney Catchment Authority (SCA) is a NSW statutory body constituted under the Sydney Water Catchment Management Act 1998 (the Act). 85 The Act conferred and imposed upon the SCA certain functions with respect to the protection and management of certain catchment areas, with respect to the supply of water to Sydney Water Corporation (SWC) and other bodies, and with respect to other matters; it made provision for the protection of public health and public safety and for the protection of the environment; it made consequential amendments to the Water Board (Corporatisation) Act 1994 and certain other acts. It was assented to on 14 December 1998.
As required under s75 of the Act, a full review of the Act must be undertaken five years after the inception of the Act. This review was undertaken in 2004, a report of this review was tabled in Parliament by the Minister for the Environment on 9 December 2004. Negotiation is currently being prepared to give effect to the outcomes of the review. The SCA has considered draft amendments submitted by the Parliamentary Counsel and is currently in a process of liaising with the Parliamentary Counsel as to the form of the proposed amendments.
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
a) Reporting Entity d) Principles of consolidation
The SCA is a reporting entity. These financial statements have been authorised for issue by the Chief Subsidiaries (Continued) Executive on 19 October 2007 and endorsed by the Board. this date. The prior year consolidated financial statements comprise the results of SCA (the parent b) Compliance with IFRS entity) for the entire year and the results of SCA Division from the date control commenced. In the company’s financials statements, investments in subsidiaries are carried at cost. 86 The SCA’s financial statements are a general financial report which has been prepared on an accrual basis and in accordance with: e) Employee Benefits x Australian Accounting Standards and other authoritative pronouncements of the Australian (i) Wages and salaries, compensated absences and on costs Accounting Standards Board (AASB); and x the requirements of the Public Finance and Audit Act 1983 as amended and the Public Finance and Audit Regulation, 2005. Liabilities for wages & salaries (including non monetary benefits) and annual leave that are expected to be settled wholly within 12 months of the reporting date are recognised and measured in respect of Where there are inconsistencies between the above requirements the legislative provisions have employees’ services up to the reporting date at undiscounted amounts based on the amounts expected prevailed. to be paid when the liabilities are settled. The SCA has long-term annual leave benefits and will measure these benefits at present value in c) Basis of Preparation accordance with the requirements of AASB 119 Employee Benefits. Market yields on 10 year government bonds of 6.26% (2006: 5.88%) are used to discount long-term annual leave.
Australian Accounting Standards include Australian equivalents to International Financial Reporting Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick Standards (AEIFRS). Compliance with AEIFRS ensures that the consolidated financial statements and leave taken in the future will be greater than the entitlements accrued in the future. notes of the SCA comply with International Financial Reporting Standards IFRS and interpretations adopted by the International Accounting Standards Board. The outstanding amounts of payroll tax, workers’ compensation insurance premiums and superannuation, which are consequential to employment, are recognised as liabilities and expenses In the absence of a specific Accounting Standard, or other authoritative pronouncement of the AASB the where the employee benefits to which they relate have been recognised. hierarchy of other pronouncements as outlined in AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors is considered. Property, plant and equipment, assets (or disposal groups) held for (ii) Long service leave sale and financial assets held for trading and available for sale are measured at fair value. Other financial statements items are prepared in accordance with the historical cost convention. The accounting policies The SCA’s net obligation in respect of long-term service benefits, other than pension plans, is the have been consistently applied, except where stated. amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using the projected unit credit method and is discounted to its The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting present value and the fair value of any related assets is deducted. The discount rate of 6.26% (2006: estimates are recognised in the period in which the estimate is revised if the revision affects only that 5.88%) is the yield at the balance sheet date on Commonwealth government bonds that have maturity period, or in the period of the revision and future periods if the revision affects both current and future dates approximating to the terms of the SCA’s obligations. periods. This obligation includes applicable payroll tax workers compensation insurance premiums and Judgements, key assumptions and estimations that management has made are disclosed in the relevant superannuation. notes to the financial statements. (iii) Superannuation All amounts are rounded to the nearest one thousand dollars and are presented in Australian currency.
d) Principles of consolidation The SCA’s net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in Subsidiaries the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted. Subsidiaries are entities controlled by the SCA. Control exists when SCA has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its The discount rate is the yield at the balance sheet date on Commonwealth government bonds that activities. have maturity dates approximating to the terms of the SCA’s obligations.
The financial statements of subsidiaries are included in the consolidated financial statements from the Where the present value of the defined benefit obligation in respect of a scheme exceeds the fair value date that control commences until the date that control ceases. All inter-entity transactions are of the scheme’s assets, a liability for the difference is recognised in the Balance Sheet. Where the fair eliminated upon consolidation. value of a scheme’s assets exceeds the present value of the defined benefit obligation for that scheme, an asset is recognised in the Balance Sheet. The subsidiary of the SCA is SCA Division, a special purpose entity established under the PSELAA. SCA Division was established on 17 March 2006. SCA exercised control over the SCA Division from Actuarial gains and losses are recognised in the Income Statement in the year in which they occur. When the calculation results in a benefit to the SCA, the recognised asset is limited to the net total of
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d) Principles of consolidation
Subsidiaries (Continued)
this date. The prior year consolidated financial statements comprise the results of SCA (the parent entity) for the entire year and the results of SCA Division from the date control commenced.
In the company’s financials statements, investments in subsidiaries are carried at cost. 87 e) Employee Benefits
(i) Wages and salaries, compensated absences and on costs
Liabilities for wages & salaries (including non monetary benefits) and annual leave that are expected to be settled wholly within 12 months of the reporting date are recognised and measured in respect of employees’ services up to the reporting date at undiscounted amounts based on the amounts expected to be paid when the liabilities are settled.
The SCA has long-term annual leave benefits and will measure these benefits at present value in accordance with the requirements of AASB 119 Employee Benefits. Market yields on 10 year government bonds of 6.26% (2006: 5.88%) are used to discount long-term annual leave.
Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater than the entitlements accrued in the future.
The outstanding amounts of payroll tax, workers’ compensation insurance premiums and superannuation, which are consequential to employment, are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised.
(ii) Long service leave
The SCA’s net obligation in respect of long-term service benefits, other than pension plans, is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using the projected unit credit method and is discounted to its present value and the fair value of any related assets is deducted. The discount rate of 6.26% (2006: 5.88%) is the yield at the balance sheet date on Commonwealth government bonds that have maturity dates approximating to the terms of the SCA’s obligations.
This obligation includes applicable payroll tax workers compensation insurance premiums and superannuation.
(iii) Superannuation
The SCA’s net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.
The discount rate is the yield at the balance sheet date on Commonwealth government bonds that have maturity dates approximating to the terms of the SCA’s obligations.
Where the present value of the defined benefit obligation in respect of a scheme exceeds the fair value of the scheme’s assets, a liability for the difference is recognised in the Balance Sheet. Where the fair value of a scheme’s assets exceeds the present value of the defined benefit obligation for that scheme, an asset is recognised in the Balance Sheet.
Actuarial gains and losses are recognised in the Income Statement in the year in which they occur. When the calculation results in a benefit to the SCA, the recognised asset is limited to the net total of
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) i) Inventories (continued) (iii) Superannuation (Continued) the conference centre at Warragamba Dam. High volume chemicals used in the preliminary treatment any unrecognised past service costs and the present value of any future refunds from the plan or of water are also expensed. reductions in future contributions to the plan. j) Property, Plant and Equipment When the benefits of a plan are improved, the portion of the increased benefit relating to past service by employees is recognised as an expense in the income statement on a straight-line basis over the (i) Acquisition and capitalisation 88 average period until the benefits become vested. To the extent that the benefits vest immediately, the expense is recognised immediately in the income statement. All items of property, plant and equipment are recorded initially at the cost of acquisition. Cost is determined as the amount of cash or cash equivalents paid or the fair value of the consideration given The determination of the present value of defined benefit obligations was performed by an independent to acquire the asset at the time of its acquisition or construction or, where applicable, the amount actuary using the Projected unit credit method. This valuation requires judgement and estimation of a attributed to that asset when initially recognised in accordance with the specific requirements of other number of assumptions. These assumptions have been set out in Note 15. Australian Accounting Standards.
f) Derivative Financial Instruments The SCA has adopted a policy to capitalise physical non-current assets with a value of less than $5,000 based on the substantive evidence provided by the SCA’s financial management information SCA uses derivative financial instruments managed by NSW Treasury Corporation (TCorp) to hedge system. Physical non-current assets where the initial cost is $5,000 or more are only capitalised where its exposure to interest rate risks arising from operational, financing and investment activities. SCA the initial costs are supported by primary documentation. does not hold or issue derivative financial instruments for trading purposes. Currently SCA’s derivatives do not qualify for hedge accounting and are accounted for as trading instruments. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition. Fair value means the amount for which an asset Derivative financial instruments are recognised initially at cost. Subsequent to initial recognition, could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an derivative financial instruments are stated at fair value. The gain or loss on re-measurement to fair arm's length transaction. value is recognised immediately in profit or loss. Where payment for an item is deferred beyond normal credit terms, its cost is the cash price g) Borrowing Costs equivalent, i.e. the deferred payment amount is effectively discounted at an asset-specific rate.
Borrowing costs are recognised as expenses in the period in which they are incurred, in accordance In respect of system assets constructed by the SCA, cost includes materials used in construction, with Treasury’s mandate to general government sector agencies. direct labour and directly attributable overheads. These assets are capitalised as completed assets as they become operational and available for use. h) Insurance (ii) Asset valuation The Insurance Brokers, Marsh Pty. Limited who were appointed in March 2004, have placed the SCA’s insurance coverage with various domestic, London, European and North American Underwriters. The SCA has two classes of physical non current assets. These are Specialised Assets comprising of facility assets, work in progress, land & buildings, and Non-Specialised Assets comprising of All of the SCA’s insurances were renewed by Marsh Pty Limited as at 31 May 2007 for the year to 31 operational equipment, furniture & fittings, motor vehicles, office equipment, computer hardware, office May 2008, except for workers’ compensation, and provide insurance coverage in relation to the amenities and leasehold improvements. When measuring assets at fair value, all the assets in a class following matters: of asset (as defined above) are considered to be one asset for the purposes of offsetting revaluation increments and decrements in the asset revaluation reserve. x Industrial Special Risks (Property); Each class of physical non current asset is revalued at least every five years and with sufficient x Public & Product and Professional Indemnity Liability; regularity to ensure that the carrying value of each asset in the class does not differ materially from its x Motor vehicle; fair value at reporting date. x Group personal accident and travel; x Personal Accident: Employees, Trustees and voluntary workers; The fair value of specialised assets where a market value could not be established was attributed to x Aircraft Non-Owned Liability; facility assets, work in progress, land and buildings in accordance with the requirements of Treasury x Fine arts insurance; Policy Paper TPP 07-1. This policy adopts fair value in accordance with AASB 116 Property, Plant & x Directors and Officers Liability and Company Reimbursement; Equipment. The class of assets was then tested for impairment to determine the fair value and x Statutory liability; and recorded at their recoverable amount of $1,117.4 million. The SCA revalued its specialised assets on x Directors and Officers Supplementary Legal Expenses. 30 June 2007 resulting in an increase in the asset revaluation reserve of $181.4 million. In accordance with accounting standards, the tax effect of the increase in the revaluation of $54.4 million is netted The SCA’s Workers Compensation Insurance has been placed with QBE and was renewed as at 28 against the reserve yielding a net increase to the reserve of $127.0 million. March 2007 for a period of one year. The fair value of facility assets was determined by a specialist independent valuer in conjunction with i) Inventories the Department of Commerce and SCA. The valuation was performed using the Optimised Depreciated Replacement Cost (ODRC) method. This involved establishing the cost of constructing The SCA does not hold any inventories. Supplies used by the SCA are expensed as acquired. The the existing SCA facility assets using current construction costs and yielded a replacement cost of SCA has adopted the policy of expensing low value items used in maintenance and the operation of
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) i) Inventories (continued)
the conference centre at Warragamba Dam. High volume chemicals used in the preliminary treatment of water are also expensed. j) Property, Plant and Equipment
(i) Acquisition and capitalisation 89 All items of property, plant and equipment are recorded initially at the cost of acquisition. Cost is determined as the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other Australian Accounting Standards.
The SCA has adopted a policy to capitalise physical non-current assets with a value of less than $5,000 based on the substantive evidence provided by the SCA’s financial management information system. Physical non-current assets where the initial cost is $5,000 or more are only capitalised where the initial costs are supported by primary documentation.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition. Fair value means the amount for which an asset could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm's length transaction.
Where payment for an item is deferred beyond normal credit terms, its cost is the cash price equivalent, i.e. the deferred payment amount is effectively discounted at an asset-specific rate.
In respect of system assets constructed by the SCA, cost includes materials used in construction, direct labour and directly attributable overheads. These assets are capitalised as completed assets as they become operational and available for use.
(ii) Asset valuation
The SCA has two classes of physical non current assets. These are Specialised Assets comprising of facility assets, work in progress, land & buildings, and Non-Specialised Assets comprising of operational equipment, furniture & fittings, motor vehicles, office equipment, computer hardware, office amenities and leasehold improvements. When measuring assets at fair value, all the assets in a class of asset (as defined above) are considered to be one asset for the purposes of offsetting revaluation increments and decrements in the asset revaluation reserve.
Each class of physical non current asset is revalued at least every five years and with sufficient regularity to ensure that the carrying value of each asset in the class does not differ materially from its fair value at reporting date.
The fair value of specialised assets where a market value could not be established was attributed to facility assets, work in progress, land and buildings in accordance with the requirements of Treasury Policy Paper TPP 07-1. This policy adopts fair value in accordance with AASB 116 Property, Plant & Equipment. The class of assets was then tested for impairment to determine the fair value and recorded at their recoverable amount of $1,117.4 million. The SCA revalued its specialised assets on 30 June 2007 resulting in an increase in the asset revaluation reserve of $181.4 million. In accordance with accounting standards, the tax effect of the increase in the revaluation of $54.4 million is netted against the reserve yielding a net increase to the reserve of $127.0 million.
The fair value of facility assets was determined by a specialist independent valuer in conjunction with the Department of Commerce and SCA. The valuation was performed using the Optimised Depreciated Replacement Cost (ODRC) method. This involved establishing the cost of constructing the existing SCA facility assets using current construction costs and yielded a replacement cost of
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
j) Property, Plant and Equipment (continued) j) Property, Plant and Equipment (continued)
(ii) Asset valuation (Continued) (iii) Asset valuation under the historic cost principle
$4,520.4 million (refer Note 9a). This value was then depreciated back to the date the existing asset In accordance with AASB116 paragraph 77(e), the written down value (WDV) based on the historic was originally constructed. The accumulated depreciation was $2,140.6 million. This resulted in a cost principle of the SCA’s property, plant and equipment as at 30 June 2007 is shown in the table total value for specialised assets of $2,379.8 million. below: 90 A recoverable amount assessment was then performed on the total specialised assets using Property, Plant and Equipment Class Historic Cost WDV Historic Cost WDV discounted cash flow methodology. A pre tax weighted average cost of capital was used to discount @ 30/6/2007 @ 30/6/2006 the pre-tax cash flows of SCA over the remaining estimated useful life of the facility assets. $’000 $’000 a) Facility assets 618,492 573,322 In respect of facility assets, this resulted in a reduction in the ODRC value, known as an impairment, of $1,436.1 million. The fair value net of impairment after the revaluation on 30 June 2007 was b) Work in progress at cost 87,826 154,631 determined to be $943.7 million. c) Land 98,173 104,257 d) Buildings 3,854 4,078 The fair value of Land assets was determined initially by reference to the market value of nearby similar parcels of land. This was then adjusted as a percentage of the total value of specialised assets e) Operational equipment 2,569 2,545 and attributing that percentage to the recoverable amount of $1,117.4 million. This resulted in Land f) Motor vehicles 4,180 3,691 assets being impaired by $94.8 million (refer Note 9). g) Office equipment 492 972 The fair value of Building assets was determined as a percentage of the total value of specialised h) Computer equipment 1,466 1,495 assets and attributing that percentage to the recoverable amount of $1,117.4 million. This resulted in i) Office amenities 59 69 Building assets being impaired by $3.6 million (refer Note 9). j) Furniture & fittings 307 64 All remaining non-specialised assets with relatively short useful lives are measured at depreciated k) Leasehold improvements 550 44 historical cost, as a surrogate for fair value. Total Property, Plant and Equipment Historic Cost WDV When revaluing physical non current assets by reference to current prices for assets newer than those 817,968 845,168 being revalued (adjusted to reflect the present condition of the assets), the gross amount and the related accumulated depreciation are separately restated. (iv) Impairment of property, plant and equipment
Revaluation increments are credited directly to the asset revaluation reserve, except to the extent that The carrying amount of the SCA’s assets are reviewed at each balance sheet date to determine an increment reverses a revaluation decrement in respect of that asset previously recognised as an whether there is any indication of impairment. If any such indication exists, the asset’s recoverable expense in the surplus/deficit, the increment is recognised immediately as revenue in the amount is estimated. surplus/deficit. An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit Revaluation decrements are recognised immediately as expenses in the surplus/deficit, except to the exceeds its recoverable amount. Impairment losses are recognised in the income statement, unless an extent that a credit balance exists in the asset revaluation reserve in respect of the same asset, they asset has previously been revalued, in which case the impairment loss is recognised as a reversal to are debited directly to the asset revaluation reserve. the extent of the previous revaluation with any excess recognised through profit or loss.
Revaluation increments and decrements are only offset against one another within total specialised The recoverable amount of other assets is the greater of their fair value less costs to sell and value in assets. Increments and decrements in respect of other assets are not offset. use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and Where an asset that has been previously revalued is disposed of, any balance remaining in the asset the risks specific to the asset. For an asset that does not generate largely independent cash inflows, revaluation reserve in respect of that asset is transferred to accumulated funds. the recoverable amount is determined for the cash-generating unit to which the asset belongs.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment is reversed if there has been a change in the estimates used to determine the recoverable amount.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(v) Assets under construction
Under AASB 123 Borrowing Costs interest costs on borrowings specifically financing assets under construction can be capitalised up to the date of completion of each asset to the extent
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) j) Property, Plant and Equipment (continued)
(iii) Asset valuation under the historic cost principle
In accordance with AASB116 paragraph 77(e), the written down value (WDV) based on the historic cost principle of the SCA’s property, plant and equipment as at 30 June 2007 is shown in the table below: 91 Property, Plant and Equipment Class Historic Cost WDV Historic Cost WDV @ 30/6/2007 @ 30/6/2006 $’000 $’000 a) Facility assets 618,492 573,322 b) Work in progress at cost 87,826 154,631 c) Land 98,173 104,257 d) Buildings 3,854 4,078 e) Operational equipment 2,569 2,545 f) Motor vehicles 4,180 3,691 g) Office equipment 492 972 h) Computer equipment 1,466 1,495 i) Office amenities 59 69 j) Furniture & fittings 307 64 k) Leasehold improvements 550 44 Total Property, Plant and Equipment Historic Cost WDV 817,968 845,168
(iv) Impairment of property, plant and equipment
The carrying amount of the SCA’s assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.
An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement, unless an asset has previously been revalued, in which case the impairment loss is recognised as a reversal to the extent of the previous revaluation with any excess recognised through profit or loss.
The recoverable amount of other assets is the greater of their fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment is reversed if there has been a change in the estimates used to determine the recoverable amount.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(v) Assets under construction
Under AASB 123 Borrowing Costs interest costs on borrowings specifically financing assets under construction can be capitalised up to the date of completion of each asset to the extent
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) k) Interest Bearing Liabilities j) Property, Plant and Equipment (continued) The SCA borrows through the TCorp in the form of liquid and marketable TCorp stocks. (v) Assets under construction (continued) Interest bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost with any those costs are recoverable. However NSW Treasury mandates that these borrowing costs are to be difference between cost and redemption value being recognised in the income statement over the expensed rather than capitalised. 92 period of the borrowings on an effective interest basis.
(vi) Major inspection costs l) Leased Assets
The labour costs of performing major inspections for faults is recognised in the carrying amount of an A distinction is made between finance leases which effectively transfer from the lessor to the lessee asset as a replacement of a part, if the recognition criteria are satisfied. AASB 116 requires that major substantially all the risks and benefits incidental to ownership of the leased assets, and operating inspection costs are to be capitalised. However the SCA considers that its inspection costs of major leases under which the lessor effectively retains all such risks and benefits. assets to be insignificant and they are expensed as incurred. Where a non current asset is acquired by means of a finance lease, the asset is recognised at its fair (vii) Restoration costs value at the inception of the lease. The corresponding liability is established at the same amount. Lease payments are allocated between the principal component and the interest expense. The fair AASB 116 requires the cost and fair value of property, plant and equipment to be increased to include value of the asset is depreciated over the term of the lease. the present value of the estimated dismantling obligations under lease obligations, where a provision for dismantling costs are recognised under AASB 137 Provisions, Contingent Liabilities and Contingent Operating lease payments are charged to the Income statement on a straight line basis in the periods Assets. These dismantling costs must be depreciated and the unwinding of the provision for in which they are incurred. dismantling costs must be recognised as a finance expense. The provision for restoration is reviewed at least annually and any change is adjusted against the carrying value of the restoration cost asset. AASB137 requires restoration obligations under lease obligations to be provided for over the life of the lease.
(viii) Depreciation of non current assets m) Maintenance and Repairs
Depreciation is provided for on a straight-line basis against all depreciable assets so as to write off the The costs of maintenance and repairs are charged as expenses as incurred except where they relate depreciable amount of each asset as it is consumed over its useful life to the SCA. The useful lives of to the replacement of a component of an asset in which case the costs are capitalised and depreciated. SCA assets in the current year and prior years are set out below. n) Financial Assets Non current Asset Classification Life in years Dams 100 to 150 Financial instruments held for trading are classified as current assets and are stated at fair value, with any resultant gain or loss recognised in the income statement. The SCA held no such assets during the Reservoirs 75 to 100 financial year. Canals & tunnels 100 Major pipelines (above ground) 150 Other than the TCorp Hour-glass investment facilities discussed below, the SCA has no financial assets that have been designated as being “designated at fair value through the income statement at Weirs 100 inception”. Water mains 50 System buildings 40 to 100 Other financial instruments held by the SCA are classified as being available-for-sale and are stated at fair value, with any resultant gain or loss recognised directly in equity, except for any impairment Water pumping stations 45 losses. Where these investments are derecognised, the cumulative gain or loss previously recognised Water treatment plants 45 directly in equity is transferred to profit or loss. Where these investments are interest bearing, interest calculated using the effective interest method is recognised in the income statement. The fair value of Working plant & equipment 2 to 14 financial instruments classified as held for trading and available-for-sale is their quoted bid price at the Operating equipment 3 to 20 balance sheet date. Motor vehicles 7 Financial assets include Cash, Hour Glass Investment Facilities, and Receivables. Office equipment 4 to 10 Computer equipment 5 Furniture and fittings 5 (i) Cash Office amenities 7 to 20 Cash comprises cash on hand and bank balances with a commercial bank. Interest has been earned Leasehold improvements Over the remaining period of the lease or life of the at the prevailing rates. improvements whichever is shorter.
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) k) Interest Bearing Liabilities
The SCA borrows through the TCorp in the form of liquid and marketable TCorp stocks.
Interest bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost with any difference between cost and redemption value being recognised in the income statement over the period of the borrowings on an effective interest basis. 93 l) Leased Assets
A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of the leased assets, and operating leases under which the lessor effectively retains all such risks and benefits.
Where a non current asset is acquired by means of a finance lease, the asset is recognised at its fair value at the inception of the lease. The corresponding liability is established at the same amount. Lease payments are allocated between the principal component and the interest expense. The fair value of the asset is depreciated over the term of the lease.
Operating lease payments are charged to the Income statement on a straight line basis in the periods in which they are incurred.
AASB137 requires restoration obligations under lease obligations to be provided for over the life of the lease. m) Maintenance and Repairs
The costs of maintenance and repairs are charged as expenses as incurred except where they relate to the replacement of a component of an asset in which case the costs are capitalised and depreciated. n) Financial Assets
Financial instruments held for trading are classified as current assets and are stated at fair value, with any resultant gain or loss recognised in the income statement. The SCA held no such assets during the financial year.
Other than the TCorp Hour-glass investment facilities discussed below, the SCA has no financial assets that have been designated as being “designated at fair value through the income statement at inception”.
Other financial instruments held by the SCA are classified as being available-for-sale and are stated at fair value, with any resultant gain or loss recognised directly in equity, except for any impairment losses. Where these investments are derecognised, the cumulative gain or loss previously recognised directly in equity is transferred to profit or loss. Where these investments are interest bearing, interest calculated using the effective interest method is recognised in the income statement. The fair value of financial instruments classified as held for trading and available-for-sale is their quoted bid price at the balance sheet date.
Financial assets include Cash, Hour Glass Investment Facilities, and Receivables.
(i) Cash
Cash comprises cash on hand and bank balances with a commercial bank. Interest has been earned at the prevailing rates.
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
n) Financial Assets (continued) o) Income Recognition (continued)
(ii) Hour-glass investment facilities (iv) Rendering of services
The SCA has investments in TCorp's Hour-Glass facilities. The SCA's investments are represented by Revenue is recognised when the service is provided or by reference to the stage of completion (based a number of units of a managed investment pool, with each particular pool having different investment on labour hours incurred to date). horizons and being comprised of a mix of asset classes appropriate to that investment horizon. TCorp 94 appoints and monitors fund managers and establishes and monitors the application of appropriate p) Payables investment guidelines. Liabilities are recognised for amounts due to be paid in the future for goods and services received, The TCorp Hour-Glass Investment facilities are unit trust investment funds, catering for NSW public whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance sector agencies’ investment needs from short term working funds to long term growth investments. In with the policy set out by Treasury. If trade terms are not specified, payment is made no later than the accordance with Treasury mandate, the TCorp Hour-Glass Investment Facilities are recognised at ‘fair end of the month following the month in which an invoice or a statement is received. Government value through profit or loss’, based on the second leg of the AASB 139 Financial Instruments: guidelines allow for the Chief Executive or delegate to award interest for late payment. Recognition and Measurement fair value option of AASB 139.9(b)(ii). Changes in the fair value are included in finance income. q) Taxation
(iii) Receivables An equivalent or notional income tax is payable to the NSW Government through the Office of State Revenue. Taxation liability is assessed according to the National Tax Equivalent Regime of the NSW Receivables are recognised initially at fair value, usually based on the transaction cost or face value. Treasury, which proposes as far as practicable the adoption of the Commonwealth Income Tax Subsequent measurement is at amortised cost using the effective interest method, less an allowance Assessment Act 1936 (as amended) as the basis for determining taxation liability and, therefore, the for any impairment of receivables. Short term receivables with no stated interest rate are measured at adoption of tax-effect accounting, refer Note 5. By virtue of Treasury Circulars TC 06/13 and TC the original invoice amount where the effect of discounting is immaterial. An allowance for impairment 06/17, the SCA Division is not permitted to mark-up the employment services provided to the SCA and of receivables is established when there is objective evidence that the SCA will not be able to collect all therefore no tax liability will accrue against the SCA Division. amounts due. The amount of the allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. Bad debts Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is are written off as incurred. recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Trade debtors are ordinarily settled within 21 days from the end of the month of billing and trade creditors are ordinarily settled within 30 days from the end of the month in which the debt is incurred. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of o) Income Recognition previous years.
Income is measured at the fair value of the consideration or contribution received or receivable. Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the (i) Bulk water sales and ancillary services amounts used for taxation purposes. The following temporary differences are not provided for: goodwill not deductible for tax purposes, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that Revenue from the sale of goods (bulk water) is recognised as revenue when SCA transfers the they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based significant risks and rewards of ownership of the assets. This ordinarily occurs at the point when water on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, is transferred from the Prospect Pumping Station. using tax rates enacted or substantively enacted at the balance sheet date.
Revenue from ancillary services is recognised when SCA’s right to receive payment is established. From 1 July 2001, the State Tax Equivalent Regime was replaced by the National Tax Equivalent Regime (NTER). During the current financial year, the requirements of the NTER prevailed. (ii) Investment income The SCA Division has been grouped with the Department of Environment and Conservation for the Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial purposes of Fringe Benefits Tax as required by Treasury Circular TC 06/07. The SCA Division is Instruments: Recognition and Measurement. required to assess its Fringe Benefits Tax obligations in accordance with the directions issued by NSW Treasury from time to time. (iii) Rent revenue As required by Treasury Circulars TC 06/13 and TC 06/17, the SCA Division is the reporting entity of the Group for the Payroll Tax purposes. Rent revenue is recognised in accordance with AASB 117 Leases on a straight line basis over the lease term.
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) o) Income Recognition (continued)
(iv) Rendering of services
Revenue is recognised when the service is provided or by reference to the stage of completion (based on labour hours incurred to date). p) Payables 95
Liabilities are recognised for amounts due to be paid in the future for goods and services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out by Treasury. If trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or a statement is received. Government guidelines allow for the Chief Executive or delegate to award interest for late payment. q) Taxation
An equivalent or notional income tax is payable to the NSW Government through the Office of State Revenue. Taxation liability is assessed according to the National Tax Equivalent Regime of the NSW Treasury, which proposes as far as practicable the adoption of the Commonwealth Income Tax Assessment Act 1936 (as amended) as the basis for determining taxation liability and, therefore, the adoption of tax-effect accounting, refer Note 5. By virtue of Treasury Circulars TC 06/13 and TC 06/17, the SCA Division is not permitted to mark-up the employment services provided to the SCA and therefore no tax liability will accrue against the SCA Division.
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill not deductible for tax purposes, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.
From 1 July 2001, the State Tax Equivalent Regime was replaced by the National Tax Equivalent Regime (NTER). During the current financial year, the requirements of the NTER prevailed.
The SCA Division has been grouped with the Department of Environment and Conservation for the purposes of Fringe Benefits Tax as required by Treasury Circular TC 06/07. The SCA Division is required to assess its Fringe Benefits Tax obligations in accordance with the directions issued by NSW Treasury from time to time.
As required by Treasury Circulars TC 06/13 and TC 06/17, the SCA Division is the reporting entity of the Group for the Payroll Tax purposes.
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
r) Dividend payable to State Government w) Accounting estimates and judgments
The Dividend payable to the State Government is established in the SCA’s Statement of Financial The preparation of a financial report in conformity with Australian Accounting Standards requires Framework. The dividend payable to the State Government is negotiated by reference to the after tax management to make judgements, estimates and assumptions that affect the application of policies earnings of the SCA in the context of the financial health of the SCA and capital expenditure and reported amounts of assets and liabilities, income and expenses. The estimates and associated requirements. assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements 96 The dividend has been calculated on the basis of 97% of profit after tax but before actuarial about carrying values of assets and liabilities that are not readily apparent from other sources. Actual superannuation gains/(losses) and financial instrument fair value movements (2006: 97%), refer Note results may differ from these estimates. The estimates and underlying assumptions are reviewed on 12(a). The dividend payable is recognised after a resolution is passed by the Board. an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future s) Accounting for Goods and Services Tax periods if the revision affects both current and future periods.
In relation to the Goods and Services Tax (GST), revenues, expenses and assets are recognised net Judgements made by management in the application of Australian Accounting Standards that have of GST, except where the amount of GST incurred by the SCA as a purchaser is not recoverable from significant effect on the financial report and estimates with a significant risk of material adjustment in the Australian Taxation Office. In such cases, the GST is recognised as part of the acquisition of an the next year are discussed below. asset or as part of an item of expense. Accrued receivables and payables are stated inclusive of GST. The SCA and SCA Division are grouped for GST purposes and therefore any inter-entity (i) Key sources of estimation uncertainty charges do not include an amount in respect of GST. Determination of fair values of property, plant and equipment t) Bushfire Insurance Claim The basis of determining fair values determined under the Optimised depreciated replacement cost The SCA suffered losses predominantly to its Warragamba site, during the bushfire incident which (ODRC) approach is set out in Note 1(j) (ii). The ODRC valuation used to determine the fair value of occurred in the December 2001/January 2002 period. the property, plant and equipment was performed by an independent expert. This valuation involves judgment and estimation in determining the replacement cost, using engineering estimates of the Whilst insurance coverage was sufficient to cover the loss of both assets and equipment, additional current construction cost of existing SCA assets and assessing their remaining useful life for the operating expenditure mainly in the area of additional employee-related and incident management purpose of determining depreciation from the previous acquisition date up to the date of the valuation. costs which occurred as a result of the declaration of a s 44 Incident by the Rural Fire Service, were recovered under the provisions of the Rural Fires Act, 1997. Further, the SCA's assets are carried at their recoverable amount where this is lower than the ODRC A summary of the identified financial losses, additional operational costs, plans for reinstatement or value. The recoverable amount involved estimating the present value of the cash flows the assets replacement of assets and recoverable amounts from both insurance and legislative provisions are would generate from its use. In this calculation, estimates are made of both future cash flows and the shown in Note 13. discount rate of the business.
u) Intangibles Leasehold property
(i) Research & development The cost of leasehold property includes a provision for the estimated cost of make good of the property. This requires estimation of the future costs expected to be incurred and an appropriate Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical discount rate. knowledge and understanding, is recognised in the income statement as an expense as it is incurred. Superannuation plan assumptions Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalised if the product The SCA has used actuarial assumptions in the determination of its defined benefits obligation in or process is technically and commercially feasible and SCA has sufficient resources to complete relation to the superannuation plans for which it accounts on behalf of the Crown. The assumptions as development. The expenditure capitalised includes the cost of materials, direct labour and directly provided by the actuary are set out in Note 15. attributable overheads. Capitalised development expenditure is stated at cost less accumulated amortisation and impairment losses. (ii) Critical accounting judgements in applying the accounting policies
v) Grants Determination of for profit or not for profit
SCA has not received revenue grants. Grants are paid by the SCA as part of its business operations. SCA management has applied its judgement in assessing whether it meets the definition of a for profit AASB 120 Accounting for Government Grants and Disclosure of Government Assistance requires for- or not for profit entity for the purposes of the accounting standards. SCA has concluded that the profit entities to recognise grant expense proportionally over a period consistent with the grantee business is a for profit entity. incurring expenditure associated with the grant. Any cash paid prior to this is recognised as a prepayment. Determination of provisions Accounting judgement has been applied in the determination of the provision for doubtful trade debtors, provisions for employee entitlements and other provisions. Judgement has been applied by management in estimating the likely loss and/or obligation in relation to each provision. Judgement
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) w) Accounting estimates and judgments
The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual 97 results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements made by management in the application of Australian Accounting Standards that have significant effect on the financial report and estimates with a significant risk of material adjustment in the next year are discussed below.
(i) Key sources of estimation uncertainty
Determination of fair values of property, plant and equipment The basis of determining fair values determined under the Optimised depreciated replacement cost (ODRC) approach is set out in Note 1(j) (ii). The ODRC valuation used to determine the fair value of the property, plant and equipment was performed by an independent expert. This valuation involves judgment and estimation in determining the replacement cost, using engineering estimates of the current construction cost of existing SCA assets and assessing their remaining useful life for the purpose of determining depreciation from the previous acquisition date up to the date of the valuation.
Further, the SCA's assets are carried at their recoverable amount where this is lower than the ODRC value. The recoverable amount involved estimating the present value of the cash flows the assets would generate from its use. In this calculation, estimates are made of both future cash flows and the discount rate of the business.
Leasehold property The cost of leasehold property includes a provision for the estimated cost of make good of the property. This requires estimation of the future costs expected to be incurred and an appropriate discount rate.
Superannuation plan assumptions The SCA has used actuarial assumptions in the determination of its defined benefits obligation in relation to the superannuation plans for which it accounts on behalf of the Crown. The assumptions as provided by the actuary are set out in Note 15.
(ii) Critical accounting judgements in applying the accounting policies
Determination of for profit or not for profit SCA management has applied its judgement in assessing whether it meets the definition of a for profit or not for profit entity for the purposes of the accounting standards. SCA has concluded that the business is a for profit entity.
Determination of provisions Accounting judgement has been applied in the determination of the provision for doubtful trade debtors, provisions for employee entitlements and other provisions. Judgement has been applied by management in estimating the likely loss and/or obligation in relation to each provision. Judgement
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
w) Accounting estimates and judgments (continued) x) New standards and interpretations not yet adopted (continued) has been based on past experience adjusted for current circumstances. The accounting policies associated with the measurement of these balances are set out in the significant accounting policies. annual reporting periods beginning on or after 1 July 2007 and must therefore be applied in the financial statements for the year ending 29 June 2008. x) New standards and interpretations not yet adopted x AASB 2007-5 Amendments to Australian Accounting Standard – Inventories Held for Distribution The following standards and amendments were available for early adoption at 30 June 2007 but have by Not-for-Profit Entities. This is not expected to impact SCA which is considered a for profit 98 not been applied in these financial statements: entity. AASB2007-5 is applicable from 1 July 2007 (SCA financial year ending 30 June 2008). x AASB 7 Financial instruments: Disclosure (August 2005) replacing the presentation requirements x AASB 2007-6 Amendments to Australian Accounting Standards arising from AASB 123 making of financial instruments in AASB 132. AASB 7 is applicable for annual reporting periods beginning consequential amendments to AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB on or after 1 January 2007 (SCA financial year ending 30 June 2008), and will require extensive 138 and Interpretations 1 & 12. AASB2007-6 is applicable from 1 January 2009 (SCA financial additional disclosures with respect to SCA’s financial instruments & share capital. year ending 30 June 2010). x AASB 2005-10 Amendments to Australian Accounting Standards (September 2005) makes x AASB 2007-7 Amendments to Australian Accounting Standards AASB 1, AASB 2, AASB 4, AASB consequential amendments to AASB 132 Financial Instruments: Disclosures and Presentation, 5, AASB 107 & AASB 128. AASB2007-7 is applicable from 1 July 2007 (SCA financial year AASB 101 Presentation of Financial Statements, AASB 114 Segment Reporting, AASB 117 ending 30 June 2008). Leases, AASB 133 Earnings per Share, AASB 139 Financial Instruments: Recognition and Measurement, AASB 1 First-time Adoption of Australian Equivalents to International Financial x Interpretation 11 AASB 2 Group and Treasury Share Transactions which is not expected to Reporting Standards, AASB 4 Insurance Contracts, AASB 1023 General Insurance Contracts and impact SCA’s financial report. Interpretation 11 is applicable from 1 March 2007 (SCA financial AASB 1038 Life Insurance Contracts, arising from the release of AASB 7. AASB 2005-10 is year ending 30 June 2008). applicable for annual reporting periods beginning on or after 1 January 2007 (SCA financial year ending 30 June 2008), and is expected to only impact disclosures contained within the SCA is finalising its analysis of the impacts of each new standard in preparation for their respective first consolidated financial report. time application date. x AASB 8 Operating Segments replaces the presentation requirements of segment reporting in AASB 114 Segment Reporting. AASB 8 is applicable for annual reporting periods beginning on or after 1 January 2009 (SCA financial year ending 30 June 2010), and is not expected to have an impact on the financial results of the SCA and the SCA consolidated group as the standard is only concerned with disclosures. x AASB 101 Presentation of Financial Statements (October 2006) makes various disclosure amendments. AASB 101 (revised October 2006) is applicable from 1 July 2007 (SCA financial year ending 30 June 2008). x AASB 2007-1 Amendments to Australian Accounting Standards arising from AASB Interpretation II amends AASB 2 Share-based Payments to insert the transitional provisions of IFRS 2, previously contained in AASB 1 First-time Adoption of Australian Equivalents to international Financial; Reporting Standards. AASB 2007-1 is applicable for annual reporting periods beginning on or after 1 March 2007 (SCA financial year ending 30 June 2008) and is not expected to have any impact on the consolidated financial report. x AASB 2007-2 Amendments to Australian Accounting Standards arising from AASB Interpretation 12 makes amendments to AASB 1 First –time Adoption of Australian Equivalents to International Financial Reporting Standards, AASB 117 Leases, AASB 118 Revenue, AASB 120 Accounting for Government Grants and Disclosure of Government Assistance, AASB 121 The Effects of Changes in Foreign Exchange Rates, AASB 127 Consolidated and Separate Financial Statement, AASB 131 Interest in Joint Ventures, and AASB 139 Financial Instruments: Recognition and Measurement. AASB 2007-2 is applicable for annual reporting periods beginning on or after 1 January 2008 and must be applied at the same time as Interpretation 12 Service Concession Arrangements. x AASB 2007-2 Amendments to Australian Accounting Standards also amends references to “UIG Interpretation” to interpretations. This amending standard is applicable to annual reporting periods ending on or after 28 February 2007. x AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8 makes amendments to certain Standards and must be adopted in conjunction with AASB 8 Operating Segments. AASB 2007-3 is applicable for annual reporting periods beginning on or after 1 January 2009. (SCA financial year ending 30 June 2010) x AASB 2007-4 Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments in May 2007. AASB 2007-4 makes amendments to a number of Australian Accounting Standards to introduce various accounting policy options, delete various disclosures presently required, and to make a number of editorial amendments. AASB 2007-4 is applicable to
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) x) New standards and interpretations not yet adopted (continued)
annual reporting periods beginning on or after 1 July 2007 and must therefore be applied in the financial statements for the year ending 29 June 2008. x AASB 2007-5 Amendments to Australian Accounting Standard – Inventories Held for Distribution by Not-for-Profit Entities. This is not expected to impact SCA which is considered a for profit entity. AASB2007-5 is applicable from 1 July 2007 (SCA financial year ending 30 June 2008). 99 x AASB 2007-6 Amendments to Australian Accounting Standards arising from AASB 123 making consequential amendments to AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12. AASB2007-6 is applicable from 1 January 2009 (SCA financial year ending 30 June 2010). x AASB 2007-7 Amendments to Australian Accounting Standards AASB 1, AASB 2, AASB 4, AASB 5, AASB 107 & AASB 128. AASB2007-7 is applicable from 1 July 2007 (SCA financial year ending 30 June 2008). x Interpretation 11 AASB 2 Group and Treasury Share Transactions which is not expected to impact SCA’s financial report. Interpretation 11 is applicable from 1 March 2007 (SCA financial year ending 30 June 2008).
SCA is finalising its analysis of the impacts of each new standard in preparation for their respective first time application date.
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Sydney Catchment Authority | Annual Report 2006–07 2. REVENUES 3. EXPENSES EXCLUDING FINANCE COSTS Consolidated Entity Sydney Catchment Authority Consolidated Entity Sydney Catchment 2007 2006 2007 2006 Authority $’000 $’000 $’000 $’000 2007 2006 2007 2006 a) Revenue from Core Activities $’000 $’000 $’000 $’000 Bulk water sales to Sydney Water a) Employee Related Expenses (excluding actuarial superannuation (gains)/losses) Corporation at fixed prices 63,210 62,214 63,210 62,214 100 Salary and wages (including recreation leave Rebate of operating costs allowed to Sydney - (300) - (300) and redundancies) Water Corporation 25,832 23,849 - 16,814 Bulk water sales to Sydney Water 87,805 76,268 87,805 76,268 Superannuation – defined contribution plans 2,226 1,883 - 451 Corporation at variable prices Superannuation – defined benefit plans (873) 106 - (3,173) Sydney Water Corporation – water quality - (800) - (800) Long service leave 862 1,252 - 984 rebate Workers compensation insurance 497 670 - 477 Other bulk water sales 856 675 856 675 Payroll tax and fringe benefits tax 1,853 1,788 - 1,301 Revenue from Core Activities 151,871 138,057 151,871 138,057 Board remuneration 267 267 Employee Related Expenses (excluding b) Revenue from other than Core Activities actuarial superannuation (gains)/losses) 30,664 29,548 267 16,854 Contracting out 208 193 208 193 Rental income 274 273 274 273 b) Contractors Expenses Conference centre hire 43 66 43 66 Agency hire of staff 2,205 2,526 2,205 2,526 Gross insurance recoveries 1,222 165 1,222 165 Employment specialist services 80 223 80 223 Interest income 1,029 1,084 1,029 1,084 Payments to SCA Division for employment (2) Other 1,513 852 1,513 852 services - - 30,397 12,694 Revenue from other than Core Activities 4,289 2,633 4,289 2,633 Water quality and monitoring 6,327 6,051 6,327 6,051 Total revenues 156,160 140,690 156,160 140,690 Environmental planning and management 3,774 3,397 3,774 3,397 (1) Dam safety and mining protection 1,927 733 1,927 733 Operating licence compliance - 190 - 190 Bulk water purchases 1,583 1,246 1,583 1,246 Integrated management systems 44 411 44 411 Contractors – general 665 796 665 796 Contractors Expenses 16,605 15,573 47,002 28,267
c) Property and Materials Expenses Repairs and maintenance – buildings 1,595 1,027 1,595 1,027 Grounds maintenance 4,670 4,308 4,670 4,308 Security 2,114 2,172 2,114 2,172 Materials 367 552 367 552 Rent & rates 127 150 127 150 Other 11 81 11 81 Property and Materials Expenses 8,884 8,290 8,884 8,290
(1) This includes $2,074,134 (2006: $957,582) of cost recoveries billed by SCA for reimbursement of costs incurred conducting maintenance activities on behalf of other entities.
(2) The difference between the amount recorded against Payments made to SCA Division for employment services and the income recognised in the SCA Division account relate to the capitalisation of certain salary and wages costs in the accounts of Sydney Catchment Authority.
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Sydney Catchment Authority | Annual Report 2006–07 3. EXPENSES EXCLUDING FINANCE COSTS
Consolidated Entity Sydney Catchment Authority 2007 2006 2007 2006 $’000 $’000 $’000 $’000 a) Employee Related Expenses (excluding actuarial superannuation (gains)/losses) Salary and wages (including recreation leave 101 and redundancies) 25,832 23,849 - 16,814 Superannuation – defined contribution plans 2,226 1,883 - 451 Superannuation – defined benefit plans (873) 106 - (3,173) Long service leave 862 1,252 - 984 Workers compensation insurance 497 670 - 477 Payroll tax and fringe benefits tax 1,853 1,788 - 1,301 Board remuneration 267 267 Employee Related Expenses (excluding actuarial superannuation (gains)/losses) 30,664 29,548 267 16,854
b) Contractors Expenses Agency hire of staff 2,205 2,526 2,205 2,526 Employment specialist services 80 223 80 223 Payments to SCA Division for employment (2) services - - 30,397 12,694 Water quality and monitoring 6,327 6,051 6,327 6,051 Environmental planning and management 3,774 3,397 3,774 3,397 (1) Dam safety and mining protection 1,927 733 1,927 733 Operating licence compliance - 190 - 190 Bulk water purchases 1,583 1,246 1,583 1,246 Integrated management systems 44 411 44 411 Contractors – general 665 796 665 796 Contractors Expenses 16,605 15,573 47,002 28,267
c) Property and Materials Expenses Repairs and maintenance – buildings 1,595 1,027 1,595 1,027 Grounds maintenance 4,670 4,308 4,670 4,308 Security 2,114 2,172 2,114 2,172 Materials 367 552 367 552 Rent & rates 127 150 127 150 Other 11 81 11 81 Property and Materials Expenses 8,884 8,290 8,884 8,290
(1) This includes $2,074,134 (2006: $957,582) of cost recoveries billed by SCA for reimbursement of costs incurred conducting maintenance activities on behalf of other entities.
(2) The difference between the amount recorded against Payments made to SCA Division for employment services and the income recognised in the SCA Division account relate to the capitalisation of certain salary and wages costs in the accounts of Sydney Catchment Authority.
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Sydney Catchment Authority | Annual Report 2006–07 3. EXPENSES EXCLUDING FINANCE COSTS (Continued) 3. EXPENSES EXCLUDING FINANCE COSTS (Continued) Consolidated Entity Sydney Catchment Consolidated Entity Sydney Catchment Authority Authority 2007 2006 2007 2006 2007 2006 2007 2006 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 f) Depreciation Expense d) Rental expense relating to operating leases Facility assets 10,301 9,743 10,301 9,743 102 Minimum lease payments 1,395 1,194 1,395 1,194 Buildings 43 38 43 38 Total rental expense relating to operating Operational equipment 523 383 523 383 leases 1,395 1,194 1,395 1,194 Furniture & fittings 54 158 54 158 e) Other Operating Expenses Motor vehicles 648 334 648 334 Advertising 370 254 370 254 Office equipment 46 117 46 117 Auditor’s remuneration 169 173 169 173 Computer hardware 481 234 481 234 Internal & other audit fees 388 415 388 415 Office amenities 13 14 13 14 Insurance claims expenditure – gross 1,282 - 1,282 - Leasehold improvements (12) 129 (12) 129 Board & Committee fees and expenses - 5 - 5 Finance lease assets 196 687 196 687 Consultancies 73 - 73 - Depreciation Expense 12,293 11,837 12,293 11,837 Research and development 1,010 1,065 1,010 1,065 Energy 755 527 755 527 g) Licence Fees 1,549 1,639 1,549 1,639 Energy – drought pumping 9,483 8,480 9,483 8,480 Maintenance on assets and equipment 5,491 9,396 5,491 9,396 h) (Profit)/Loss on sale/write off on Non 368 (37) 368 (37) Grants and sponsorships 1,932 997 1,932 997 current Assets Information management 2,779 2,602 2,779 2,602 Insurance premiums 4,838 4,766 4,838 4,766 Total Expenses excluding Finance Costs 107,568 101,754 107,568 101,754 Memberships and subscriptions 735 714 735 714 Telephone and fax 547 496 547 496 4. FINANCE COSTS Transport 922 1,300 922 1,300 Preparation of plans and reports 2,896 723 2,896 723 Interest expense 23,382 15,992 23,382 15,992 Printing and stationery 483 393 483 393 Interest differential – government guarantee fee 1,918 1,355 1,918 1,355 Training courses 484 477 484 477 Amortisation of premium/discount on interest bearing liabilities Other 1,173 927 1,173 927 (858) (646) (858) (646) Other Operating Expenses 35,810 33,710 35,810 33,710 24,442 16,701 24,442 16,701
Finance leases interest charges 13 72 13 72 Unwinding of discount of provisions (15) 13 (15) 13 Net Finance Costs 24,440 16,786 24,440 16,786
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Sydney Catchment Authority | Annual Report 2006–07 3. EXPENSES EXCLUDING FINANCE COSTS (Continued) Consolidated Entity Sydney Catchment Authority 2007 2006 2007 2006 $’000 $’000 $’000 $’000 f) Depreciation Expense Facility assets 10,301 9,743 10,301 9,743 Buildings 43 38 43 38 103 Operational equipment 523 383 523 383 Furniture & fittings 54 158 54 158 Motor vehicles 648 334 648 334 Office equipment 46 117 46 117 Computer hardware 481 234 481 234 Office amenities 13 14 13 14 Leasehold improvements (12) 129 (12) 129 Finance lease assets 196 687 196 687 Depreciation Expense 12,293 11,837 12,293 11,837 g) Licence Fees 1,549 1,639 1,549 1,639 h) (Profit)/Loss on sale/write off on Non 368 (37) 368 (37) current Assets
Total Expenses excluding Finance Costs 107,568 101,754 107,568 101,754
4. FINANCE COSTS
Interest expense 23,382 15,992 23,382 15,992 Interest differential – government guarantee fee 1,918 1,355 1,918 1,355 Amortisation of premium/discount on interest bearing liabilities (858) (646) (858) (646) 24,442 16,701 24,442 16,701
Finance leases interest charges 13 72 13 72 Unwinding of discount of provisions (15) 13 (15) 13 Net Finance Costs 24,440 16,786 24,440 16,786
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Sydney Catchment Authority | Annual Report 2006–07 5. INCOME TAX 5. INCOME TAX (Continued) Consolidated Entity Sydney Catchment Authority (c) Deferred tax assets and liabilities 2007 2006 2007 2006 Recognised deferred tax assets and liabilities $’000 $’000 $’000 $’000 Deferred tax assets and liabilities are attributable to the following: Consolidated entity Sydney Catchment (a) Income tax expense Authority 104 2007 2006 2007 2006 $’000 $’000 $’000 $’000 (i) Recognised in the income statement Property, plant and equipment (8,914) (7,948) (8,914) (7,948) Current tax expense Prepaid grants - (401) - (401) Current year 3,861 6,198 3,861 6,198 Doubtful debts provision 7 7 7 7 Adjustments for prior years (2,184) (2,184) 2,487 2,487 Accelerated sewerage program 1,681 3,600 1,681 3,600 1,677 1,677 8,685 8,685 Employee entitlements - - - - Deferred tax expense Asset revaluations (54,428) - (54,428) - Origination and reversal of temporary Unfunded superannuation - - - - differences 2,742 2,742 2,506 2,506 Other items (1,722) 328 (1,722) 328 Total income tax expense in income Net tax assets / liabilities (63,376) (4,414) (63,376) (4,414) statement 4,419 11,191 4,419 11,191 (ii) Numerical reconciliation between tax Deferred tax assets are recognised when it is probable that future taxable profit will be available against which expense and pre-tax net profit the consolidated entity can utilise the benefits. Prima facie tax expense at 30% of surplus from continuing operations (2006: 30%) 7,869 8,485 7,869 8,485 There are no deferred tax assets that have not been recognised (2006: Nil). Increase in income tax expense due to: Non-deductible expenses 11 - 11 - Consolidated entity Decrease in income tax expense due to: Movement in temporary differences during the year: Research and development concession (2,183) (1,370) (2,183) (1,370) Balance Recognised in Recognised Balance Recognition of temporary differences 906 1,589 906 1,589 1 Jul 06 income in equity 30 Jun 07 Under / (over) provided in prior years (1,396) 87 (1,396) 87 $’000 $’000 $’000 $’000 Adjustments for prior years (788) 2,400 (788) 2,400 Property, plant and equipment (7,948) 825 (1,791) (8,914) Income tax expense on pre-tax net profit 4,419 11,191 4,419 11,191 Prepaid grants (401) 401 - - (iii) Amounts recognised directly in equity Doubtful debts provision 7- -7 Aggregate current and deferred tax arising Accelerated sewerage program 3,600 (1,919) - 1,681 in the reporting period and not recognised (56,219) - (56,219) - Employee entitlements -- -- in net profit or loss but directly debited or Asset revaluations - - (54,428) (54,428) credited to equity Unfunded superannuation -- -- b) Current Tax payable Other items 328 (2,050) - (1,722) Opening Balance of Tax Provision (1,494) 844 (1,494) 844 (4,414) (2,743) (56,219) (63,376)
Income Tax Provided for during the Year 3,862 6,198 3,862 6,198 Balance Recognised in Recognised Balance Tax Refunds 3,980 154 3,980 154 1 Jul 05 income in equity 30 Jun 06 Prior year adjustments (2,184) 2,487 (2,184) 2,487 Property, plant and equipment (8,020) 72 - (7,948) Payment – Instalments (6,582) (11,177) (6,582) (11,177) Prepaid grants (319) (82) - (401) Current Tax payable at year end (2,418) (1,494) (2,418) (1,494) Doubtful debts provision 7- -7 Accelerated sewerage program 1,200 2,550 - 3,600 Employee entitlements 2,557 (2,557) - - Unfunded superannuation 2,710 (2,710) - - Other items (43) 221 - 328 (1,908) (2,506) - (4,414)
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Sydney Catchment Authority | Annual Report 2006–07 5. INCOME TAX (Continued)
(c) Deferred tax assets and liabilities Recognised deferred tax assets and liabilities Deferred tax assets and liabilities are attributable to the following: Consolidated entity Sydney Catchment Authority 2007 2006 2007 2006 105 $’000 $’000 $’000 $’000 Property, plant and equipment (8,914) (7,948) (8,914) (7,948) Prepaid grants - (401) - (401) Doubtful debts provision 7 7 7 7 Accelerated sewerage program 1,681 3,600 1,681 3,600 Employee entitlements - - - - Asset revaluations (54,428) - (54,428) - Unfunded superannuation - - - - Other items (1,722) 328 (1,722) 328 Net tax assets / liabilities (63,376) (4,414) (63,376) (4,414)
Deferred tax assets are recognised when it is probable that future taxable profit will be available against which the consolidated entity can utilise the benefits.
There are no deferred tax assets that have not been recognised (2006: Nil).
Consolidated entity Movement in temporary differences during the year: Balance Recognised in Recognised Balance 1 Jul 06 income in equity 30 Jun 07 $’000 $’000 $’000 $’000 Property, plant and equipment (7,948) 825 (1,791) (8,914) Prepaid grants (401) 401 - - Doubtful debts provision 7- -7 Accelerated sewerage program 3,600 (1,919) - 1,681 Employee entitlements -- -- Asset revaluations - - (54,428) (54,428) Unfunded superannuation -- -- Other items 328 (2,050) - (1,722) (4,414) (2,743) (56,219) (63,376)
Balance Recognised in Recognised Balance 1 Jul 05 income in equity 30 Jun 06 Property, plant and equipment (8,020) 72 - (7,948) Prepaid grants (319) (82) - (401) Doubtful debts provision 7- -7 Accelerated sewerage program 1,200 2,550 - 3,600 Employee entitlements 2,557 (2,557) - - Unfunded superannuation 2,710 (2,710) - - Other items (43) 221 - 328 (1,908) (2,506) - (4,414)
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Sydney Catchment Authority | Annual Report 2006–07 5. INCOME TAX (Continued) 7. TRADE AND OTHER RECEIVABLES
(c) Deferred tax assets and liabilities (continued) Consolidated Entity Sydney Catchment Authority Sydney Catchment Authority 2007 2006 2007 2006 Movement in temporary differences during the year: $’000 $’000 $’000 $’000 Trade debtors 12,627 12,043 12,627 12,043 Balance Recognised in Recognised Balance Provision for doubtful debts (24) (24) (24) (24) 106 1 Jul 06 income in equity 30 Jun 07 $’000 $’000 $’000 $’000 Other debtors 3,305 5,503 3,303 5,503 Property, plant and equipment (7,948) 825 (1,791) (8,914) Prepaid insurance premiums 138 56 - - Prepaid grants (401) 401 - - Prepaid grants 220 1,338 220 1,338 Doubtful debts provision 7- -7 Accelerated sewerage program 3,600 (1,919) - 1,681 Prepaid other 607 505 607 505 Employee entitlements -- -- Prepaid salaries, wages and on-costs - 408 - - Asset revaluations - - (54,428) (54,428) Receivables 16,873 19,829 16,733 19,365 Unfunded superannuation -- -- Other items 328 (2,050) - (1,722) (4,414) (2,743) (56,219) (63,376) 8. OTHER ASSETS
Balance Recognised in Recognised Balance 1 Jul 05 income in equity 30 Jun 06 Insurance claims 138 366 138 366 $’000 $’000 $’000 $’000 Superannuation asset (Note 16, 13(b)) 64 - - - Property, plant and equipment (8,020) 72 - (7,948) Property lease - contributions in Kind 599 - 599 - Prepaid grants (319) (82) - (401) Doubtful debts provision 7- -7 Other Assets 801 366 737 366 Accelerated sewerage program 1,200 2,550 - 3,600 Employee entitlements 2,557 (2,557) - - Unfunded superannuation 2,710 (2,710) - - Other items (43) 221 - 328 (1,908) (2,506) - (4,414)
6. CASH AND CASH EQUIVALENTS
Consolidated Entity Sydney Catchment Authority 2007 2006 2007 2006 $’000 $’000 $’000 $’000 Cash 7,784 484 7,784 484 TCorp hour-glass facility 6,053 8,751 6,053 8,751 Cash and Cash Equivalents 13,837 9,235 13,837 9,235
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Sydney Catchment Authority | Annual Report 2006–07 7. TRADE AND OTHER RECEIVABLES
Consolidated Entity Sydney Catchment Authority 2007 2006 2007 2006 $’000 $’000 $’000 $’000 Trade debtors 12,627 12,043 12,627 12,043 Provision for doubtful debts (24) (24) (24) (24) 107 Other debtors 3,305 5,503 3,303 5,503 Prepaid insurance premiums 138 56 - - Prepaid grants 220 1,338 220 1,338 Prepaid other 607 505 607 505 Prepaid salaries, wages and on-costs - 408 - - Receivables 16,873 19,829 16,733 19,365
8. OTHER ASSETS
Insurance claims 138 366 138 366 Superannuation asset (Note 16, 13(b)) 64 - - - Property lease - contributions in Kind 599 - 599 - Other Assets 801 366 737 366
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Sydney Catchment Authority | Annual Report 2006–07 9. PROPERTY, PLANT & EQUIPMENT 9. PROPERTY, PLANT & EQUIPMENT (continued)
Consolidated Entity Sydney Catchment Consolidated Entity Sydney Catchment Authority Authority 2007 2006 2007 2006 2007 2006 2007 2006 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 a) Facility Assets d) Land Opening balance at cost 3,583,691 2,935,595 3,583,691 2,935,595 Opening balance at cost 104,256 102,456 104,256 102,456 108 Additions 132,292 21,960 132,292 21,960 Additions 3,170 1,800 3,170 1,800 Disposals - - - - Disposals (1) (9,255) - (9,255) - Closing balance at cost 3,715,983 2,957,555 3,715,983 2,957,555 Closing balance at cost 98,171 104,256 98,171 104,256 Fair value adjustment 804,450 627,337 804,450 627,337 Fair value adjustment 58,903 - 58,903 - Optimised replacement cost 4,520,433 3,584,892 4,520,433 3,584,892 Optimised replacement cost 157,074 - 157,074 - Impairment (1,436,097) - (1,436,097) - Impairment (94,787) (66,100) (94,787) (66,100) 3,084,336 3,584,892 3,084,336 3,584,892 Land at Fair Value 62,287 38,156 62,287 38,156
Opening accumulated depreciation (1,682,497) (1,682,497) (1,682,497) (1,682,497) e) Buildings Depreciation charge (10,301) (1,218,529) (10,301) (1,218,529) Opening balance at cost 4,782 4,782 4,782 4,782 Optimised replacement cost depreciation Transfers from Office amenities 5 - 5 - adjustment (447,843) - (447,843) - Additions 6 - 6 - Closing accumulated depreciation (2,140,641) (2,901,026) (2,140,641) (2,901,026) Closing balance at cost 4,793 4,782 4,793 4,782 Facility Assets at Fair Value 943,695 683,866 943,695 683,866 Impairment (3,606) (2,750) (3,606) (2,750) Optimised replacement cost 1,187 2,032 1,187 2,032 b) Groundwater Exploration Groundwater exploration capitalised 13,329 - 13,329 - Opening accumulated depreciation (582) (544) (582) (544) Groundwater Exploration Fair Value 13,329 - 13,329 - Depreciation charge (43) (39) (43) (39) Closing accumulated depreciation (625) (583) (625) (583) Buildings Fair Value 562 1,449 562 1,449 c) Work in Progress Metropolitan water plan 8,717 102,384 8,717 102,384 f) Operational Equipment Warragamba dam spillway upgrade 6,062 2,821 6,062 2,821 Opening balance at cost 3,577 2,802 3,577 2,802 Warragamba dam general upgrade 6,950 4,869 6,950 4,869 Additions 900 1,133 900 1,133 Warragamba pipelines upgrade 621 311 621 311 Closing balance at cost 4,477 3,935 4,477 3,935 Blue Mountains system upgrade 81 1,957 81 1,957 Metropolitan dams upgrade 106 217 106 217 Opening accumulated depreciation (1,389) (1,007) (1,389) (1,007) Upper canal upgrade 1,808 325 1,808 325 Disposals 4 - 4 - Prospect reservoir upgrade 54,784 27,223 54,784 27,223 Depreciation charge (523) (383) (523) (383) Shoalhaven system upgrade 3,243 3,092 3,243 3,092 Closing accumulated depreciation (1,908) (1,390) (1,908) (1,390) Catchments upgrade 1,255 1,399 1,255 1,399 Operational Equipment at Fair Value 2,569 2,545 2,569 2,545 General upgrades 4,199 10,033 4,199 10,033 Impairment - (18,997) - (18,997)
Work in Progress Fair Value 87,826 135,634 87,826 135,634 (1) Disposal of land to Department of Environment and Conservation was made at a revalued amount of $18.8M. The land was originally acquired by the SCA at a cost of $9.2M and was impaired down to $3.2M on 1 July 2005. The land transferred was taken directly to equity in line with Interpretation 1038 Contributions by Owners Made to Wholly-owned Public Sector Entities and Treasury Policy TPP 06-7 Accounting Policy - Contributions by Owners Made to Wholly-owned Public Sector Entities
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Sydney Catchment Authority | Annual Report 2006–07 9. PROPERTY, PLANT & EQUIPMENT (continued)
Consolidated Entity Sydney Catchment Authority 2007 2006 2007 2006 $’000 $’000 $’000 $’000 d) Land Opening balance at cost 104,256 102,456 104,256 102,456 Additions 3,170 1,800 3,170 1,800 109 Disposals (1) (9,255) - (9,255) - Closing balance at cost 98,171 104,256 98,171 104,256 Fair value adjustment 58,903 - 58,903 - Optimised replacement cost 157,074 - 157,074 - Impairment (94,787) (66,100) (94,787) (66,100) Land at Fair Value 62,287 38,156 62,287 38,156 e) Buildings Opening balance at cost 4,782 4,782 4,782 4,782 Transfers from Office amenities 5 - 5 - Additions 6 - 6 - Closing balance at cost 4,793 4,782 4,793 4,782 Impairment (3,606) (2,750) (3,606) (2,750) Optimised replacement cost 1,187 2,032 1,187 2,032
Opening accumulated depreciation (582) (544) (582) (544) Depreciation charge (43) (39) (43) (39) Closing accumulated depreciation (625) (583) (625) (583) Buildings Fair Value 562 1,449 562 1,449 f) Operational Equipment Opening balance at cost 3,577 2,802 3,577 2,802 Additions 900 1,133 900 1,133 Closing balance at cost 4,477 3,935 4,477 3,935
Opening accumulated depreciation (1,389) (1,007) (1,389) (1,007) Disposals 4 - 4 - Depreciation charge (523) (383) (523) (383) Closing accumulated depreciation (1,908) (1,390) (1,908) (1,390) Operational Equipment at Fair Value 2,569 2,545 2,569 2,545
(1) Disposal of land to Department of Environment and Conservation was made at a revalued amount of $18.8M. The land was originally acquired by the SCA at a cost of $9.2M and was impaired down to $3.2M on 1 July 2005. The land transferred was taken directly to equity in line with Interpretation 1038 Contributions by Owners Made to Wholly-owned Public Sector Entities and Treasury Policy TPP 06-7 Accounting Policy - Contributions by Owners Made to Wholly-owned Public Sector Entities
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Sydney Catchment Authority | Annual Report 2006–07 9. PROPERTY, PLANT & EQUIPMENT (continued) 9. PROPERTY, PLANT & EQUIPMENT (continued)
Consolidated Entity Sydney Catchment Consolidated Entity Sydney Catchment Authority Authority 2007 2006 2007 2006 2007 2006 2007 2006 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 g) Motor Vehicles (ii) Under Finance Leases (i) Owned Office equipment at present value at 110 Opening balance at cost 4,460 535 4,460 535 inception 231 277 231 277 Additions 5,800 3,802 5,800 3,802 Finance leases expired during period (165) (46) (165) (46) Disposals (5,366) - (5,366) - Closing balance at present value 66 231 66 231 Closing balance at cost 4,894 4,337 4,894 4,337 Opening accumulated depreciation (175) (689) (175) (689) Opening accumulated depreciation (580) (246) (580) (246) Finance leases expired during period 165 514 165 514 Disposals 515 - 515 - Depreciation charge (40) - (40) - Depreciation charge (648) (334) (648) (334) Accumulated depreciation (50) (175) (50) (175) Closing accumulated depreciation (713) (580) (713) (580) Office Equipment under Finance Leases Fair Value Motor Vehicles Owned at Fair Value 4,181 3,757 4,181 3,757 16 56 16 56 i) Computer Equipment (ii) Under Finance Leases (i) Owned Motor vehicles at present value at inception 38 988 38 988 Opening balance at cost 1,829 639 1,829 639 Additions under new finance leases - - - - Additions 673 1,706 673 1,706 Finance leases expired during period (36) (950) (36) (950) Disposals - (258) - (258) Depreciation charge (2) (32) (2) (32) Closing balance at cost 2,502 2,087 2,502 2,087 Motor Vehicles under Finance Leases Fair Value -6 - 6 Opening accumulated depreciation (592) (358) (592) (358) Disposals 37 - 37 - h) Office Equipment Depreciation charge (481) (234) (481) (234) (i) Owned Closing accumulated depreciation (1,036) (592) (1,036) (592) Opening balance at cost 693 603 693 603 Computer Equipment Owned Fair Value 1,466 1,495 1,466 1,495 Additions 211 743 211 743 Disposals (1) - (1) - (ii) Under Finance Leases Closing balance at cost 903 1,346 903 1,346 Computer equipment at present value at inception 883 1,428 883 1,428 Opening accumulated depreciation (374) (257) (374) (257) Finance leases expired during period. (553) (545) (553) (545) Disposals 8 - 8 - Closing balance at cost 330 883 330 883 Depreciation charge (46) (117) (46) (117) Accumulated depreciation (412) (374) (412) (374) Opening accumulated depreciation (689) (868) (689) (868) Office Equipment Owned Fair Value 491 972 491 972 Disposals 534 179 534 179 Depreciation charge (154) - (154) - Closing accumulated depreciation (309) (689) (309) (689) Under Finance leases Fair Value 21 194 21 194
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Sydney Catchment Authority | Annual Report 2006–07 9. PROPERTY, PLANT & EQUIPMENT (continued)
Consolidated Entity Sydney Catchment Authority 2007 2006 2007 2006 $’000 $’000 $’000 $’000 (ii) Under Finance Leases Office equipment at present value at inception 231 277 231 277 111 Finance leases expired during period (165) (46) (165) (46) Closing balance at present value 66 231 66 231
Opening accumulated depreciation (175) (689) (175) (689) Finance leases expired during period 165 514 165 514 Depreciation charge (40) - (40) - Accumulated depreciation (50) (175) (50) (175) Office Equipment under Finance Leases Fair Value 16 56 16 56 i) Computer Equipment (i) Owned Opening balance at cost 1,829 639 1,829 639 Additions 673 1,706 673 1,706 Disposals - (258) - (258) Closing balance at cost 2,502 2,087 2,502 2,087
Opening accumulated depreciation (592) (358) (592) (358) Disposals 37 - 37 - Depreciation charge (481) (234) (481) (234) Closing accumulated depreciation (1,036) (592) (1,036) (592) Computer Equipment Owned Fair Value 1,466 1,495 1,466 1,495
(ii) Under Finance Leases Computer equipment at present value at inception 883 1,428 883 1,428 Finance leases expired during period. (553) (545) (553) (545) Closing balance at cost 330 883 330 883
Opening accumulated depreciation (689) (868) (689) (868) Disposals 534 179 534 179 Depreciation charge (154) - (154) - Closing accumulated depreciation (309) (689) (309) (689) Under Finance leases Fair Value 21 194 21 194
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Sydney Catchment Authority | Annual Report 2006–07 9. PROPERTY, PLANT & EQUIPMENT (continued) 9. PROPERTY, PLANT & EQUIPMENT (continued)
Consolidated Entity Sydney Catchment Consolidated Entity Sydney Catchment Authority Authority 2007 2006 2007 2006 2007 2006 2007 2006 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 j) Office Amenities m) Leasehold Restoration Opening balance at cost 125 125 125 125 Opening balance at cost 204 204 204 204 112 Transferred to buildings (5) - (5) - Additions 6 - 6 - Disposals (1) - (1) - Closing balance at cost 210 204 210 204 Additions 8 - 8 -
Closing balance at cost 127 125 127 125 Opening accumulated depreciation (159) (159) (159) (159) Depreciation charge (9) - (9) - Opening accumulated depreciation (56) (42) (56) (42) Closing accumulated depreciation (168) (159) (168) (159) Disposal 1 - 1 - Leasehold Improvements Fair Value 42 45 42 45 Depreciation charge (13) (14) (13) (14) Closing accumulated depreciation (68) (56) (68) (56) n) Intangible Assets Office Amenities Fair Value 59 69 59 69 Computer software at cost 772 772 772 772 Accumulated depreciation (772) (772) (772) (772) Intangible Assets Fair Value - - - - k) Furniture and Fittings Opening balance at cost 1,276 1,214 1,276 1,214 Property, Plant and Equipment 1,117,400 868,308 1,117,400 868,308 Additions 234 - 234 - Closing balance at cost 1,510 1,214 1,510 1,214 10. TRADE AND OTHER PAYABLES Opening accumulated depreciation (1,150) (992) (1,150) (992) Trade creditors and other payables 2,978 4,473 2,978 4,350 Disposal 1 - 1 - Accrued expenses 35,994 31,119 35,994 31,119 Depreciation charge (54) (158) (54) (158) Accrued salaries, wages and on costs 635 - 3 - Closing accumulated depreciation (1,203) (1,150) (1,203) (1,150) Amount owed to other group companies - - 11,260 12,316 Furniture and Fittings Fair Value 307 64 307 64 Payables 39,607 35,592 50,235 47,785
l) Leasehold Improvements Opening balance at cost 1,899 1,811 1,899 1,811 11. BORROWINGS Additions 422 - 422 - a) Current Closing balance at cost 2,321 1,811 2,321 1,811 Call loans 25,912 45,516 25,912 45,516 Fixed interest loans (TCorp) 60,416 - 60,416 - Opening accumulated depreciation (1,811) (1,811) (1,811) (1,811) Premium / (discount) on loans 538 - 538 - Adjustment to opening balance 18 - 18 - Loans at amortised cost 86,866 45,516 86,866 45,416 Depreciation charge 21 - 21 - Closing accumulated depreciation (1,772) (1,811) (1,772) (1,811) Futures (836) (741) (836) (741) Leasehold Improvements Fair Value 549 - 549 - Finance leases liability 41 285 41 285 Current borrowings 86,071 45,060 86,071 45,060
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Sydney Catchment Authority | Annual Report 2006–07 9. PROPERTY, PLANT & EQUIPMENT (continued)
Consolidated Entity Sydney Catchment Authority 2007 2006 2007 2006 $’000 $’000 $’000 $’000 m) Leasehold Restoration Opening balance at cost 204 204 204 204 113 Additions 6 - 6 - Closing balance at cost 210 204 210 204
Opening accumulated depreciation (159) (159) (159) (159) Depreciation charge (9) - (9) - Closing accumulated depreciation (168) (159) (168) (159) Leasehold Improvements Fair Value 42 45 42 45
n) Intangible Assets Computer software at cost 772 772 772 772 Accumulated depreciation (772) (772) (772) (772) Intangible Assets Fair Value - - - -
Property, Plant and Equipment 1,117,400 868,308 1,117,400 868,308
10. TRADE AND OTHER PAYABLES
Trade creditors and other payables 2,978 4,473 2,978 4,350 Accrued expenses 35,994 31,119 35,994 31,119 Accrued salaries, wages and on costs 635 - 3 - Amount owed to other group companies - - 11,260 12,316 Payables 39,607 35,592 50,235 47,785
11. BORROWINGS
a) Current Call loans 25,912 45,516 25,912 45,516 Fixed interest loans (TCorp) 60,416 - 60,416 - Premium / (discount) on loans 538 - 538 - Loans at amortised cost 86,866 45,516 86,866 45,416
Futures (836) (741) (836) (741) Finance leases liability 41 285 41 285 Current borrowings 86,071 45,060 86,071 45,060
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Sydney Catchment Authority | Annual Report 2006–07 11. BORROWINGS (continued) 12. PROVISIONS, EXCLUDING INCOME TAX LIABILITIES (Continued)
Interest bearing liabilities are fixed loans to other Australian government authorities and are denominated in Consolidated Entity Sydney Catchment Australian dollars. The loans are managed by TCorp. The fixed loans have maturity dates ranging from 12 July 2007 Authority to 1 March 2017. The amount in current liabilities comprises the portion of SCA’s liabilities payable within one year. The loans are unsecured and bear interest at fixed rates ranging from 5.5% to 8%. 2007 2006 2007 2006 $’000 $’000 $’000 $’000 b) Non-Current provisions Consolidated Entity Sydney Catchment Unfunded superannuation liability (Note 9, 116 3,003 - - 114 Authority 16) 2007 2006 2007 2006 Non-Current provisions, excl income $’000 $’000 $’000 $’000 tax liabilities 116 3,003 - - b) Non Current Fixed interest loans (TCorp) 296,666 269,471 296,666 269,471 c) Aggregate employee benefits and related on costs Premium/ (discount) on loans (3,565) 837 (3,565) 837 Provisions – current 10,530 9,597 - - Non Current borrowings 293,101 270,308 293,101 270,308 Provisions – non-current 116 3,003 - - Accrued salaries, wages and oncosts (part note 11) 635 - 3 - Exposure to credit and interest rate risks arises in the normal course of the SCA’s business. Derivative financial Prepaid salaries, wages and on costs instruments are used to hedge exposure to fluctuations in interest rates. (Note 7) - (408) - - Aggregate employee benefits and Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit related on costs 11,281 12,192 3 - evaluations are performed on all customers requiring credit over a certain amount.
At the balance sheet date the primary credit concentration was with SWC representing 96.7% Reconciliation of provisions (2006: 96.6%) of the trade receivables balance. This amount is paid monthly and no significant credit risk has Consolidated entity come to SCA’s attention in relation to this amount. 97.9% of SCA’s revenue Provisions for Provisions for Provision for Total (2006: 98.8%) is derived from sales to SWC. Employment Dividends Leasehold Taxes Restoration $’000 $’000 $’000 $’000 Balance at July 2006 57 18,907 402 19,366 12. PROVISIONS, EXCLUDING INCOME TAX LIABILITIES Provisions created during the year 143 19,745 39 19,927 Sydney Catchment Provisions used during the year (160) (18,907) (71) (19,138) Consolidated Entity Authority Unwind of discount - - 19 19 2007 2006 2007 2006 Balance of 30 June 2007 40 19,745 389 20,174
$’000 $’000 $’000 $’000 a) Current provisions Current 40 19,745 7 19,792 Provisions for employment taxes 186 57 - - Non-Current - - 382 382 Provisions for dividends 19,745 16,581 19,745 16,581 Provisions for employee benefits – annual (1) leave 3,941 3,599 - - Provision for employee benefits – long service leave 6,589 5,998 - - Provision for leasehold restoration 389 402 389 402 Current provisions, excl income tax liabilities 30,850 26,637 20,134 16,983
(1) In respect of annual leave classified as Current provisions, the SCA expects to make payments totalling $1,786,223 (2006: $1,639,776) in the next reporting period.
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Sydney Catchment Authority | Annual Report 2006–07 12. PROVISIONS, EXCLUDING INCOME TAX LIABILITIES (Continued)
Consolidated Entity Sydney Catchment Authority 2007 2006 2007 2006 $’000 $’000 $’000 $’000 b) Non-Current provisions Unfunded superannuation liability (Note 9, 116 3,003 - - 16) 115 Non-Current provisions, excl income tax liabilities 116 3,003 - -
c) Aggregate employee benefits and related on costs Provisions – current 10,530 9,597 - - Provisions – non-current 116 3,003 - - Accrued salaries, wages and oncosts (part note 11) 635 - 3 - Prepaid salaries, wages and on costs (Note 7) - (408) - - Aggregate employee benefits and related on costs 11,281 12,192 3 -
Reconciliation of provisions Consolidated entity Provisions for Provisions for Provision for Total Employment Dividends Leasehold Taxes Restoration $’000 $’000 $’000 $’000 Balance at July 2006 57 18,907 402 19,366 Provisions created during the year 143 19,745 39 19,927 Provisions used during the year (160) (18,907) (71) (19,138) Unwind of discount - - 19 19 Balance of 30 June 2007 40 19,745 389 20,174
Current 40 19,745 7 19,792 Non-Current - - 382 382
Page 35 of 53
Sydney Catchment Authority | Annual Report 2006–07 12. PROVISIONS, EXCLUDING INCOME TAX LIABILITIES (Continued) 15. SUPERANNUATION Reconciliation of provisions (continued) Accounting policy Sydney Catchment Authority
Provisions Provision for Actuarial gains and losses are recognised immediately in profit and loss in the year for Leasehold Total in which they occur. Dividends Restoration $’000 $’000 $’000 Fund information Balance at July 2006 18,907 402 19,309 116 Provisions created during the year 19,745 39 19,784 The Pooled Fund holds in trust the investments of the closed NSW public sector Provisions used during the year (18,907) (71) (18,978) superannuation schemes: Unwind of discount - 19 19 State Authorities Superannuation Scheme (SASS) Balance of 30 June 2007 19,745 389 20,134 State Superannuation Scheme (SSS) State Authorities Non-contributory Superannuation Scheme (SANCS). Current 19,745 7 19,752 Non-Current - 382 382 These schemes are all defined benefit schemes – at least a component of the final benefit is derived from a multiple of member salary and years of membership. Restoration provision
A provision has been recognised for SCA's obligation to dismantle leasehold improvements and to restore rental All the Schemes are now closed to new members. SCA contributes to an accumulated fund, First State properties to their original state and condition at the end of the lease. The provision has been determined by Superannuation Fund, for all employees joining the SCA after the above plans were closed to new members, considering independent estimates of such future restoration costs, discounted by rates specific to SCA's unless otherwise elected by those employees. assessment of the risk of such work. The provision involves judgement in estimating the future costs of the work, discount rates used and the expected date when the costs will be incurred. 2007: Employment Tax provision Reconciliation of the present value of the defined benefit obligation The employment tax provision relates to estimated fringe benefit tax costs relating to activities that have taken place during the current period. SASS SANCS SSS TOTAL Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 13. INSURANCE RECOVERIES FROM BUSH FIRES June 2007 June 2007 June 2007 June 2007 $’000 $’000 $’000 $’000 The Income Statement contains gross revenue of $1.222 million (2006: $0.165 million). It also contains gross Present value of partly funded defined benefit operational expenditure of $1.282 million (2006: $Nil) representing the costs of restoration work and excess 11,648 2,389 24,964 39,001 labour costs in relation to the s44 Rural Fires Act 1997 claims. $Nil (2006: $0.165 million) represents the funding obligations at beginning of the year recovered for the replacement of assets. Current service costs 416 142 306 864 The Balance Sheet includes fixed assets of $0.667 million (2006: $0.798 million) within Property, Plant and Equipment. Interest cost 675 137 1,464 2,276
Contributions by fund participants 227 0 239 466 14. STATEMENT OF OPERATIONS OF SEGMENTS Actuarial (gains)/losses 779 167 276 1,222 The SCA operates predominately in the water industry in the one geographical area of New South Wales in Australia. Its area of operations is wholly within New South Wales. Benefits paid (501) (82) (821) (1,404)
Present value of partly funded defined 13,244 2,753 26,428 42,425 benefit obligations at end of the year
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Sydney Catchment Authority | Annual Report 2006–07 15. SUPERANNUATION
Accounting policy
Actuarial gains and losses are recognised immediately in profit and loss in the year in which they occur.
Fund information 117 The Pooled Fund holds in trust the investments of the closed NSW public sector superannuation schemes: State Authorities Superannuation Scheme (SASS) State Superannuation Scheme (SSS) State Authorities Non-contributory Superannuation Scheme (SANCS).
These schemes are all defined benefit schemes – at least a component of the final benefit is derived from a multiple of member salary and years of membership.
All the Schemes are now closed to new members. SCA contributes to an accumulated fund, First State Superannuation Fund, for all employees joining the SCA after the above plans were closed to new members, unless otherwise elected by those employees.
2007:
Reconciliation of the present value of the defined benefit obligation
SASS SANCS SSS TOTAL Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 June 2007 June 2007 June 2007 June 2007 $’000 $’000 $’000 $’000 Present value of partly funded defined benefit 11,648 2,389 24,964 39,001 obligations at beginning of the year
Current service costs 416 142 306 864
Interest cost 675 137 1,464 2,276
Contributions by fund participants 227 0 239 466
Actuarial (gains)/losses 779 167 276 1,222
Benefits paid (501) (82) (821) (1,404)
Present value of partly funded defined 13,244 2,753 26,428 42,425 benefit obligations at end of the year
Page 37 of 53
Sydney Catchment Authority | Annual Report 2006–07 15. SUPERANNUATION (Continued) 15. SUPERANNUATION (Continued)
Reconciliation of the fair value of fund assets Funds assets
SASS SANCS SSS TOTAL The percentage invested in each asset class at the balance sheet date: Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 June 2007 June 2007 June 2007 June 2007 30 June 2007 $’000 $’000 $’000 $’000 Australian equities 33.6% Fair value of fund assets at beginning of the 118 11,095 2,296 22,607 35,998 year Overseas equities 26.5% Australian fixed interest securities 6.8% Expected return on fund assets 843 176 1,715 2,734 Overseas fixed interest securities 6.4% 1,095 162 2,043 3,300 Actuarial gains/(losses) Property 10.1%
Employer contributions 425 265 588 1,278 Cash 9.8%
Contributions by Fund participants 228 0 239 467 Other 6.8%
Benefits paid (501) (82) (821) (1,404) Fair value of Fund assets Fair value of Fund assets at end of the year 13,186 2,817 26,371 42,375 All Fund assets are invested by STC at arm’s length through independent fund managers.
Reconciliation of the assets and liabilities recognised in the balance sheet Expected rate of return on Fund assets
SASS SANCS SSS TOTAL The expected return on assets assumption is determined by weighting the expected long-term return for each Financial Financial Financial Financial asset class by the target allocation of assets to each class. The returns used for each class are net of investment Year to 30 Year to 30 Year to 30 Year to 30 tax and investment fees. June 2007 June 2007 June 2007 June 2007 $’000 $’000 $’000 $’000 Present value of partly funded defined benefits Actual Return on Fund Assets 13,244 2,754 26,428 42,426 obligations at end of year SASS SANCS SSS TOTAL Fair value of fund assets at end of year (13,185) (2,818) (26,371) (42,374) Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 Net (liability)/asset recognised in balance June 2007 June 2007 June 2007 June 2007 59 (64) 57 52 sheet at end of year $’000 $’000 $’000 $’000 Actual return on Fund assets 1,633 388 3,244 5,265
Expense recognised in income statement Valuation method and principal actuarial assumptions at the balance sheet date SASS SANCS SSS TOTAL Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 a) Valuation Method June 2007 June 2007 June 2007 June 2007 $’000 $’000 $’000 $’000 The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit obligations and the related current service costs. This method sees each period of service as giving rise to an Current service cost 415 142 306 863 additional unit of benefit entitlement and measures each unit separately to build up the final obligation. Interest cost 675 137 1,464 2,276
Expected return on fund assets (843) (176) (1,715) (2,734)
Actuarial losses/(gains) recognised in year (316) 5 (1,766) (2,077)
Expense/(income) recognised (69) 108 (1,711) (1,672)
Page 38 of 53 Page 39 of 53
Sydney Catchment Authority | Annual Report 2006–07 15. SUPERANNUATION (Continued)
Funds assets
The percentage invested in each asset class at the balance sheet date:
30 June 2007
Australian equities 33.6% 119 Overseas equities 26.5%
Australian fixed interest securities 6.8%
Overseas fixed interest securities 6.4%
Property 10.1%
Cash 9.8%
Other 6.8%
Fair value of Fund assets
All Fund assets are invested by STC at arm’s length through independent fund managers.
Expected rate of return on Fund assets
The expected return on assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each class. The returns used for each class are net of investment tax and investment fees.
Actual Return on Fund Assets
SASS SANCS SSS TOTAL Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 June 2007 June 2007 June 2007 June 2007 $’000 $’000 $’000 $’000 Actual return on Fund assets 1,633 388 3,244 5,265
Valuation method and principal actuarial assumptions at the balance sheet date a) Valuation Method
The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit obligations and the related current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.
Page 39 of 53
Sydney Catchment Authority | Annual Report 2006–07 15. SUPERANNUATION (continued) 15. SUPERANNUATION (continued)
b) Economic Assumptions d) Economic assumptions
The economic assumptions adopted for the last actuarial review of the Fund were: 30 June 2007
Salary increase rate (excluding promotional increases) 4.0% pa to June 2008; Weighted-Average Assumptions 3.5% pa thereafter Expected rate of return on Fund assets backing current pension 7.7% pa 120 Rate of CPI increase 2.5% pa liabilities
Expected rate of return on assets backing current pension liabilities 7.6% pa Expected rate of return on Fund assets backing other liabilities 7.0% pa
Expected rate of return on assets backing other liabilities 7.6% pa Expected salary increase rate 4.0% pa
Discount rate 6.4% pa Expected rate of CPI increase 2.5% pa
Funding arrangements for employer contributions Nature of asset/liability a) Surplus/deficit If a surplus exists in the employer’s interest in the Fund, the employer may be able to take advantage of it in the The following is a summary of the 30 June 2007 financial position of the Fund calculated in accordance with AAS form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary. 25 “Financial Reporting by Superannuation Plans”: Where a deficiency exists, the employer is responsible for any difference between the employer’s share of fund SASS SANCS SSS Total assets and the defined benefit obligation. 30-Jun-07 30-Jun-07 30-Jun-07 30-Jun-07 $’000 $’000 $’000 $’000 SASS SANCS SSS TOTAL Accrued benefits 13,064 2,724 23,689 39,477 Financial Financial Financial Financial Net market value of Fund assets (13,185) (2,817) (26,371) (42,373) Year to 30 Year to 30 Year to 30 Year to 30 June 2007 June 2007 June 2007 June 2007 Net (surplus)/deficit (121) (93) (2,682) (2,896) $’000 $’000 ‘$000 $’000 Present value of defined benefits obligations 13,244 2,753 26,428 42,425 b) Contribution recommendations Fair value of Fund assets (13,185) (2,817) (26,371) (42,375) Recommended contribution rates for the entity are: (Surplus)/Deficit in Fund 59 (64) 57 52 SSS SASS SANCS Experience adjustments – Fund liabilities 779 167 276 1,222 multiple of multiple of % member Experience adjustments – Fund assets (1,095) (162) (2,043) (3,300) member member salary contributions contributions Expected contributions 1.90 2.50 0.93 SASS SANCS SSS TOTAL c) Funding method $’000 $’000 ‘$000 $’000
The method used to determine the employer contribution recommendations at the last actuarial review was the Expected employer contributions 432 160 222 814 Aggregate Funding method. The method adopted affects the timing of the cost to the employer.
Under the Aggregate Funding method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit payments to existing members, taking into account the current value of assets and future contributions.
Page 40 of 53 Page 41 of 53
Sydney Catchment Authority | Annual Report 2006–07 15. SUPERANNUATION (continued) d) Economic assumptions
The economic assumptions adopted for the last actuarial review of the Fund were:
Weighted-Average Assumptions
Expected rate of return on Fund assets backing current pension 7.7% pa liabilities 121
Expected rate of return on Fund assets backing other liabilities 7.0% pa
Expected salary increase rate 4.0% pa
Expected rate of CPI increase 2.5% pa
Nature of asset/liability
If a surplus exists in the employer’s interest in the Fund, the employer may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary.
Where a deficiency exists, the employer is responsible for any difference between the employer’s share of fund assets and the defined benefit obligation.
SASS SANCS SSS TOTAL Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 June 2007 June 2007 June 2007 June 2007 $’000 $’000 ‘$000 $’000 Present value of defined benefits obligations 13,244 2,753 26,428 42,425 Fair value of Fund assets (13,185) (2,817) (26,371) (42,375)
(Surplus)/Deficit in Fund 59 (64) 57 52
Experience adjustments – Fund liabilities 779 167 276 1,222
Experience adjustments – Fund assets (1,095) (162) (2,043) (3,300)
Expected contributions
SASS SANCS SSS TOTAL $’000 $’000 ‘$000 $’000 Expected employer contributions 432 160 222 814
Page 41 of 53
Sydney Catchment Authority | Annual Report 2006–07 15. SUPERANNUATION (continued) 15. SUPERANNUATION (continued)
Historical information Reconciliation of the assets and liabilities recognised in the balance sheet
2006: SASS SANCS SSS TOTAL Financial Financial Financial Financial Reconciliation of the present value of the defined benefit obligation Year to 30 Year to 30 Year to 30 Year to 30 June 2006 June 2006 June 2006 June 2006 SASS SANCS SSS TOTAL $’000 $’000 $’000 $’000 122 Financial Financial Financial Financial Present value of partly funded defined benefits Year to 30 Year to 30 Year to 30 Year to 30 11,648 2,389 24,964 39,001 obligations at end of year June 2006 June 2006 June 2006 June 2006 $’000 $’000 $’000 $’000 Fair value of fund assets at end of year (11,095) (2,296) (22,607) (35,998) Present value of partly funded defined benefit 10,688 2,410 25,769 38,867 Net (liability)/asset recognised in balance obligations at beginning of the year 553 93 2,357 3,003 sheet at end of year Current service costs 417 144 377 938
Interest cost 632 121 1,435 2,188 Expense recognised in income statement
Contributions by fund participants 204 0 254 458 SASS SANCS SSS TOTAL Financial Financial Financial Financial Actuarial (gains)/losses 136 (173) (3,578) (3,615) Year to 30 Year to 30 Year to 30 Year to 30 June 2006 June 2006 June 2006 June 2006 Benefits paid (429) (113) 707 165 $’000 $’000 $’000 $’000 Current service cost 417 144 377 938 Present value of partly funded defined 11,648 2,389 24,964 39,001 benefit obligations at end of the year Interest cost 633 121 1,435 2,189
Expected return on fund assets (817) (171) (1,269) (2,257) Reconciliation of the fair value of fund assets Actuarial losses/(gains) recognised in year (697) (363) (5,074) (6,134) SASS SANCS SSS TOTAL Financial Financial Financial Financial Expense/(income) recognised (464) (269) (4,531) (5,264) Year to 30 Year to 30 Year to 30 Year to 30 June 2006 June 2006 June 2006 June 2006 Funds assets $’000 $’000 $’000 $’000 Fair value of fund assets at beginning of the The percentage invested in each asset class at the balance sheet date: 10,770 2,254 16,810 29,834 year 30 June 2006 Expected return on fund assets 817 171 1,269 2,257 Australian equities 37.4%
Actuarial gains/(losses) 833 190 1,497 2,520 Overseas equities 27.9%
Employer contributions (1,100) (206) 2,070 764 Australian fixed interest securities 9.9%
Contributions by Fund participants 204 0 254 458 Overseas fixed interest securities 6.8%
Benefits paid (429) (113) 707 165 Property 8.6% Cash 5.0% Fair value of Fund assets at end of the year 11,095 2,296 22,607 35,998 Other 4.4%
Fair value of Fund assets
All Fund assets are invested by STC at arm’s length through independent fund managers.
Page 42 of 53 Page 43 of 53
Sydney Catchment Authority | Annual Report 2006–07 15. SUPERANNUATION (continued)
Reconciliation of the assets and liabilities recognised in the balance sheet
SASS SANCS SSS TOTAL Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 June 2006 June 2006 June 2006 June 2006 $’000 $’000 $’000 $’000 Present value of partly funded defined benefits 11,648 2,389 24,964 39,001 123 obligations at end of year Fair value of fund assets at end of year (11,095) (2,296) (22,607) (35,998)
Net (liability)/asset recognised in balance 553 93 2,357 3,003 sheet at end of year
Expense recognised in income statement
SASS SANCS SSS TOTAL Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 June 2006 June 2006 June 2006 June 2006 $’000 $’000 $’000 $’000 Current service cost 417 144 377 938
Interest cost 633 121 1,435 2,189
Expected return on fund assets (817) (171) (1,269) (2,257)
Actuarial losses/(gains) recognised in year (697) (363) (5,074) (6,134)
Expense/(income) recognised (464) (269) (4,531) (5,264)
Funds assets
The percentage invested in each asset class at the balance sheet date:
30 June 2006
Australian equities 37.4%
Overseas equities 27.9%
Australian fixed interest securities 9.9%
Overseas fixed interest securities 6.8%
Property 8.6%
Cash 5.0%
Other 4.4%
Fair value of Fund assets
All Fund assets are invested by STC at arm’s length through independent fund managers.
Page 43 of 53
Sydney Catchment Authority | Annual Report 2006–07 15. SUPERANNUATION (continued)
Expected rate of return on Fund assets
The expected return on assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets to each class. The returns used for each class are net of investment tax and investment fees.
Actual Return on Fund Assets 124 SASS SANCS SSS TOTAL Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 June 2006 June 2006 June 2006 June 2006 $’000 $’000 $’000 $’000 Actual return on Fund assets 1,587 361 2,911 4,859
Valuation method and principal actuarial assumptions at the balance sheet date
a) Valuation Method
The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined benefit obligations and the related current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.
b) Economic Assumptions
30 June 2006
Salary increase rate (excluding promotional increases) 4.0% pa to June 2008; 3.5% pa thereafter Rate of CPI increase 2.5% pa
Expected rate of return on assets backing current pension liabilities 7.6% pa
Expected rate of return on assets backing other liabilities 7.6% pa
Discount rate 5.9% pa
Funding arrangements for employer contributions
a) Surplus/deficit
The following is a summary of the 30 June 2006 financial position of the Fund calculated in accordance with AAS 25 “Financial Reporting by Superannuation Plans”:
SASS SANCS SSS Total 30 June 2006 30 June 2006 30 June 2006 30 June 2006 $’000 $’000 $’000 $’000 Accrued benefits 11,122 2,248 20,529 33,899 Net market value of Fund assets (11,095) (2,296) (22,607) (35,998) Net (surplus)/deficit 27 (48) (2,078) (2,099)
Page 44 of 53
Sydney Catchment Authority | Annual Report 2006–07 15. SUPERANNUATION (continued)
Funding arrangements for employer contributions (continued)
b) Contribution recommendations
Recommended contribution rates for the entity are:
SASS SANCS SSS 125
multiple of multiple of % member member member salary contributions contributions
1.90 2.50 0.93
c) Funding method
The method used to determine the employer contribution recommendations at the last actuarial review was the Aggregate Funding method. The method adopted affects the timing of the cost to the employer.
Under the Aggregate Funding method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit payments to existing members, taking into account the current value of assets and future contributions.
d) Economic assumptions
The economic assumptions adopted for the last actuarial review of the Fund were:
Weighted-Average Assumptions
Expected rate of return on Fund assets backing current pension 7.7% pa liabilities
Expected rate of return on Fund assets backing other liabilities 7.0% pa
Expected salary increase rate 4.0% pa
Expected rate of CPI increase 2.5% pa
Nature of asset/liability
If a surplus exists in the employer’s interest in the Fund, the employer may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary.
Where a deficiency exists, the employer is responsible for any difference between the employer’s share of fund assets and the defined benefit obligation.
Page 45 of 53
Sydney Catchment Authority | Annual Report 2006–07 15. SUPERANNUATION (continued) 16. COMMITMENTS (Continued)
Historical information (b) Other Expenditure Commitments Other expenditure commitments contracted for at balance date but not SASS SANCS SSS TOTAL provided for: Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 Not later than 1 year 26,557 5,326 26,557 5,326 June 2006 June 2006 June 2006 June 2006 Later than 1 year but not later than 5 years 10,339 216 10,339 216 $’000 $’000 ‘$000 $’000 126 Other Expenditure Commitments 36,896 5,542 36,896 5,542 Present value of defined benefits obligations 11,648 2,389 24,964 39,001 Fair value of Fund assets (11,095) (2,296) (22,607) (35,998) (c) Operating Lease Commitments Operating lease expenditure contracted (Surplus)/Deficit in Fund 553 93 2,357 3,003 for at balance date but not provided for: Not later than 1 year 1,673 1,125 1,673 1,125 Experience adjustments – Fund liabilities 136 (173) (3,578) (3,615) Later than 1 year but not later than 5 years 2,064 400 2,064 400 Later than 5 years 1,261 - 1,261 - Experience adjustments – Fund assets (833) (190) (1,497) (2,520) Operating Lease Commitments 4,998 1,525 4,998 1,525
Expected contributions Operating leases for rental property are generally for periods of two to five years with options for similar periods. The leases are based on commercial rates and are regularly reviewed to market values. If office equipment, computers and motor vehicles are retained beyond the expiry of the original finance leases, then the lease SASS SANCS SSS TOTAL extensions are re-classified as operating leases and the lease costs are expensed as incurred. $’000 $’000 ‘$000 $’000 389 150 236 775 Expected employer contributions Consolidated Entity Sydney Catchment Authority 2007 2006 2007 2006 16. COMMITMENTS $’000 $’000 $’000 $’000 Goods and Services Tax (GST) (d) Finance Lease Commitments Minimum lease payment commitments in All commitments include the Goods and Services Tax (GST) where applicable. The SCA is registered for GST relation to finance leases payable as follows: and claims back from the Australian Taxation Office all GST paid on business expenditure as Input Tax Credits. The SCA collects taxes on taxable supplies also where applicable. Not later than 1 year 41 251 41 251 Later than 1 year and not later than 5 years 7 67 7 67 Consolidated Entity Sydney Catchment Minimum lease payments 48 318 48 318 Authority Less: future finance charges (7) (33) (7) (33) 2007 2006 2007 2006 Present value of minimum lease payments 41 285 41 285 $’000 $’000 $’000 $’000 (a) Capital Commitments The present value of finance lease commitments is as follows: Capital commitments contracted for at Not later than 1 year 35 226 35 226 balance date but not provided for: Later than 1 year and not later than 5 years 6 59 6 59 Not later than 1 year 40,901 44,788 40,901 44,788 Present value of minimum lease payments 41 285 41 285 Later than 1 year but not later than 5 years 1,401 44,022 1,401 44,022 Classified as: Capital Commitments 42,302 88,810 42,302 88,810 Current 35 226 35 226 Capital commitments relate primarily to improvements and additions to the SCA infrastructure assets. Non current 6 59 6 59 Total 41 285 41 285
Finance leases for office equipment are generally for periods of four years at commercial interest rates. The term of the leases generally equate to the economic life of the leased asset.
Finance leases for computer equipment are generally for periods of three or more years at commercial interest rates. The term of the leases generally equate to the economic life of the leased asset.
Page 46 of 53 Page 47 of 53
Sydney Catchment Authority | Annual Report 2006–07 16. COMMITMENTS (Continued)
(b) Other Expenditure Commitments Other expenditure commitments contracted for at balance date but not provided for: Not later than 1 year 26,557 5,326 26,557 5,326 Later than 1 year but not later than 5 years 10,339 216 10,339 216 Other Expenditure Commitments 36,896 5,542 36,896 5,542 127
(c) Operating Lease Commitments Operating lease expenditure contracted for at balance date but not provided for: Not later than 1 year 1,673 1,125 1,673 1,125 Later than 1 year but not later than 5 years 2,064 400 2,064 400 Later than 5 years 1,261 - 1,261 - Operating Lease Commitments 4,998 1,525 4,998 1,525
Operating leases for rental property are generally for periods of two to five years with options for similar periods. The leases are based on commercial rates and are regularly reviewed to market values. If office equipment, computers and motor vehicles are retained beyond the expiry of the original finance leases, then the lease extensions are re-classified as operating leases and the lease costs are expensed as incurred.
Consolidated Entity Sydney Catchment Authority 2007 2006 2007 2006 $’000 $’000 $’000 $’000 (d) Finance Lease Commitments Minimum lease payment commitments in relation to finance leases payable as follows: Not later than 1 year 41 251 41 251 Later than 1 year and not later than 5 years 7 67 7 67 Minimum lease payments 48 318 48 318 Less: future finance charges (7) (33) (7) (33) Present value of minimum lease payments 41 285 41 285 The present value of finance lease commitments is as follows: Not later than 1 year 35 226 35 226 Later than 1 year and not later than 5 years 6 59 6 59 Present value of minimum lease payments 41 285 41 285 Classified as: Current 35 226 35 226 Non current 6 59 6 59 Total 41 285 41 285
Finance leases for office equipment are generally for periods of four years at commercial interest rates. The term of the leases generally equate to the economic life of the leased asset.
Finance leases for computer equipment are generally for periods of three or more years at commercial interest rates. The term of the leases generally equate to the economic life of the leased asset.
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Sydney Catchment Authority | Annual Report 2006–07 16. COMMITMENTS (Continued) 18. RECONCILIATION OF SURPLUS FROM ORDINARY ACTIVITIES AFTER INCOME TAX TO NET CASH PROVIDED BY OPERATING ACTIVITIES The minimum lease payment commitments above include an amount of $4 thousand ($2.9 thousand: 2006) for Goods & Services tax recoverable from the Australian Taxation Office. Consolidated Entity Sydney Catchment Authority 17.17. CONTINGENT CONTINGENT LIABILITIES LIABILITIES 2007 2006 2007 2006 $’000 $’000 $’000 $’000 OtherOther than than commitments commitments mentioned mentioned elsewhere elsewhere inin thesethese notes,notes, thethe SCASCA isis notnot awareaware of any contingent liabilities associated with its operations. a) Cash and cash equivalents 128 contingent liabilities associated with its operations.
a)a) The Bushfires Warragamba of 2001/2002 Dam Auxiliary Litigation Spillway Project Cash 7,784 484 7,784 484 i) Bushfires of 2001/2002 Litigation Financial assets – TCorp 6,053 8,751 6,053 8,751 The bushfires of the Christmas/New Year period of 2001/2002 caused extensive 13,837 9,235 13,837 9,235 damage,The bushfires not only of tothe property Christmas/New owned by Year the periodSCA, butof 2001/2002 to privately caused owned extensive residential damage, not only to andproperty commercial owned property by the SCA, at Warragamba, but to privately Silverdale owned residentialand Wallacia. and commercial property at Warragamba, b) Reconciliation Net Profit to Cash from Operating Activities Silverdale and Wallacia. Proceedings have been commenced against the SCA, the National Parks and Wildlife Service,Proceedings the NSW have Fire been Brigade commenced and the against NSW Ruralthe SCA, Fire tServices,he National in Parksthe Supreme and Wildlife Service, the NSW Profit after related Income Tax expense 21,811 17,093 21,811 17,093 CourtFire Brigadeof NSW andby 25 the claimants. NSW Rural Fire Services, in the Supreme Court of NSW by 25 claimants. Add: Non cash items The SCA’s insurers have set aside a reserve of $4.5M although it is too early in the The SCA’s insurers have set aside a reserve of $4.5M although it is too early in the litigation to actually Depreciation and assets litigation to actually identify the quantum of the SCA’s exposure as some claims may identify the quantum of the SCA’s exposure as some claims may not proceed, whilst others have not been written off 12,660 11,800 12,660 11,800 notquantified proceed, to whilst date withothers any have accuracy. not been It is quantified also possible to date that with a commercial any accuracy. settlement It is could be achieved alsofor apossible lesser amount. that a commercial settlement could be achieved for a lesser amount. Profit/(Loss) on disposal of assets ThereThere is is also also the the issue issue of of apportionme apportionmentnt of of liability liability between between the the respective respective government agencies involved Non cash recharge of governmentin the litigation. agencies involved in the litigation. unfunded superannuation - - (2,951) (6,029) from controlled entity - TheThe SCA’s SCA’s potential potential losses losses are are covered covered by by its its combined combined public, public, products products andand professional indemnity Add/(Subtract): Amounts classified as professionalinsurance policy indemnity (the insurance insurance policy). policy (the The insurance excess applicable policy). Theto the excess insurance applicable policy at the time when financing activities tothe the claims insurance were policy made atis the$250,000 time when for each the claimsand every were claim. made The is $250,000 Lead Liability for each Underwriter has Payments made under 13 72 13 72 andinterpreted every claim. the policy The Leadwordings Liability in favour Underwriter of the SC hasA interpretedin that only theone policy excess wordings of $250,000 in is payable for all finance leases favourthe claims of the on SCA the inbasis that thatonly they one resultexcess from of $250,000the one incident. is payable for all the claims on Add/(Subtract): Net Movement in assets the basis that they result from the one incident. and liabilities applicable to operating activities Unfunded superannuation (2,951) (6,029) - - Prepaid grants 1,117 (272) 1,117 (272) Suppliers and employees 2,304 (634) 2,304 (634) Finance costs 2,033 2,179 2,033 2,179 Receivables 2,195 (3,727) 2,195 (3,727) Income tax 1,817 169 1,817 169 Net Cash provided by Operating Activities 40,999 20,651 40,999 20,651
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Sydney Catchment Authority | Annual Report 2006–07 18. RECONCILIATION OF SURPLUS FROM ORDINARY ACTIVITIES AFTER INCOME TAX TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Consolidated Entity Sydney Catchment Authority 2007 2006 2007 2006 $’000 $’000 $’000 $’000 a) Cash and cash equivalents 129
Cash 7,784 484 7,784 484 Financial assets – TCorp 6,053 8,751 6,053 8,751 13,837 9,235 13,837 9,235 b) Reconciliation Net Profit to Cash from Operating Activities
Profit after related Income Tax expense 21,811 17,093 21,811 17,093
Add: Non cash items Depreciation and assets written off 12,660 11,800 12,660 11,800 Profit/(Loss) on disposal of assets Non cash recharge of unfunded superannuation - - (2,951) (6,029) from controlled entity - Add/(Subtract): Amounts classified as financing activities Payments made under 13 72 13 72 finance leases Add/(Subtract): Net Movement in assets and liabilities applicable to operating activities Unfunded superannuation (2,951) (6,029) - - Prepaid grants 1,117 (272) 1,117 (272) Suppliers and employees 2,304 (634) 2,304 (634) Finance costs 2,033 2,179 2,033 2,179 Receivables 2,195 (3,727) 2,195 (3,727) Income tax 1,817 169 1,817 169 Net Cash provided by Operating Activities 40,999 20,651 40,999 20,651
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Sydney Catchment Authority | Annual Report 2006–07 19. FINANCIAL INSTRUMENTS 19. FINANCIAL INSTRUMENTS (Continued)
The SCA’s principal financial instruments are outlined below. These financial instruments arise directly from SCA’s b) Credit Risk operations or are required to finance SCA’s operations. SCA does not enter into or trade financial instruments for speculative purposes. SCA does not use financial derivatives. Credit risk is the risk of financial loss arising from another party to a contract or financial position failing to discharge a financial obligation there under. The SCA’s maximum exposure to credit risk is represented by the a) Interest Rate Risk carrying amounts of the financial assets included in the Balance Sheet.
Interest rate risk is the risk that the value of the financial instrument will fluctuate due to changes in market interest Government Other Total rates. The SCA’s exposure to interest rate risks and the effective interest rates of financial assets and liabilities, 2007 $’000 $’000 $’000 130 both recognised and unrecognised, at the Balance Sheet date are as follows: Receivables 11,937 4,936 16,873 2007 Non Interest Floating Rate Fixed Rate Fixed Rate Total Annualised Government Other Total Bearing <1 Year 1-5 Years >5 Years Client Rtn 2006 $’000 $’000 $’000 Financial Assets $’000 $’000 $’000 $’000 $’000 Receivables 11,644 8,185 19,829 Cash 4 7,780 - - 7,784 6.05% TCorp - 6,053 - - 6,053 6.41% c) Net Fair Value
Receivables 16,873 - - - 16,873 N/A All financial instruments are carried at Net Fair Value, with the exception of interest bearing liabilities which are Total Financial Assets 16,877 13,833 - - 30,710 recognised at amortised cost.
Non Fixed Rate Fixed Rate Fixed Rate Total Annualised Loans at amortised cost: Interest <1 Year 1-5 Years >5 Years Client Rtn Bearing 2007 2006 Interest bearing liabilities Carrying value Market value Carrying value Market value Financial Liabilities $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Borrowings (TCorp) - 86,328 135,097 161,569 382,994 6.15% TCorp – Derivatives at Current fair value Call loan* 88,644 87,843 45,693 45,685 (835) - - (835) N/A Fixed interest loans (TCorp)* - - - - Accounts payable 39,607 39,607 N/A 88,644 87,843 45,693 45,685 Total Financial 39,607 85,493 135,097 161,569 421,766 Liabilities Non current Fixed interest loans (TCorp)* 297,397 286,162 273,898 273,247 296,561 286,162 273,898 273,247 2006 * The carrying value of the above amounts include accrued interest. Non Interest Floating Rate Fixed Rate Fixed Rate Total Annualised Bearing <1 Year 1-5 Years >5 Years Client Rtn The value of all other financial instruments are as reported in the Balance Sheet. Financial Assets $’000 $’000 $’000 $’000 $’000 d) Derivatives Cash 4 480 - - 484 5.43% TCorp - 8,751 - - 8,751 5.84% The SCA uses TCorp as a Debt Portfolio Manager. TCorp uses a small percentage of loans in Derivatives to Receivables 19,829 - - - 19,829 N/A maximise the portfolio performance. Total Financial Assets 19,833 9,231 - - 29,064 2007 Non Fixed Rate Fixed Rate Fixed Rate Total Annualised Non Interest Bearing Face Value: Nil Interest <1 Year 1-5 Years >5 Years Client Rtn Bearing Futures Related Financial Liabilities $’000 $’000 $’000 $’000 $’000 Futures Position Bought/(sold) Total value Per 0.01% Per 0.01% $’000 Risk $ Per Contract Total Risk $ Borrowings (TCorp) - 45,516 178,739 90,732 314,987 6.28% 30 June 2007 TCorp – Derivatives at 3 year bonds 39 3,900 (26.67) (1,040.13) - (741) - - (741) N/A fair value 10 year bonds 31 3,100 (72.62) (2,251.22) Accounts payable 35,592 - - - 35,592 N/A Total Financial 35,592 44,775 178,739 90,732 349,838 Liabilities
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Sydney Catchment Authority | Annual Report 2006–07 19. FINANCIAL INSTRUMENTS (Continued) b) Credit Risk
Credit risk is the risk of financial loss arising from another party to a contract or financial position failing to discharge a financial obligation there under. The SCA’s maximum exposure to credit risk is represented by the carrying amounts of the financial assets included in the Balance Sheet.
Government Other Total 2007 $’000 $’000 $’000 131 Receivables 11,937 4,936 16,873
Government Other Total 2006 $’000 $’000 $’000 Receivables 11,644 8,185 19,829 c) Net Fair Value
All financial instruments are carried at Net Fair Value, with the exception of interest bearing liabilities which are recognised at amortised cost.
Loans at amortised cost:
2007 2006 Interest bearing liabilities Carrying value Market value Carrying value Market value $’000 $’000 $’000 $’000
Current Call loan* 88,644 87,843 45,693 45,685 Fixed interest loans (TCorp)* - - - - 88,644 87,843 45,693 45,685
Non current Fixed interest loans (TCorp)* 297,397 286,162 273,898 273,247 296,561 286,162 273,898 273,247
* The carrying value of the above amounts include accrued interest.
The value of all other financial instruments are as reported in the Balance Sheet. d) Derivatives
The SCA uses TCorp as a Debt Portfolio Manager. TCorp uses a small percentage of loans in Derivatives to maximise the portfolio performance.
2007 Non Interest Bearing Face Value: Nil Futures Related Futures Position Bought/(sold) Total value Per 0.01% Per 0.01% 30 June 2007 $’000 Risk $ Per Contract Total Risk $ 3 year bonds 39 3,900 (26.67) (1,040.13) 10 year bonds 31 3,100 (72.62) (2,251.22)
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Sydney Catchment Authority | Annual Report 2006–07 19. FINANCIAL INSTRUMENTS (Continued) 21. KEY MANAGEMENT PERSONNEL DISCLOSURES (continued)
d) Derivatives b) Identity of related parties SCA has a related party relationship with SCA Division.
2006 Non Interest Bearing Face Value: ($265) Coupon: 5.50% c) Other related party transactions Futures Related The following summarises the material transactions with related parties within the consolidated group not disclosed in detail elsewhere in the accounts: 132 Futures Position Bought/(sold) Total value Per 0.01% Per 0.01% 30 June 2006 $’000 Risk $ Per Contract Total Risk $ During the period from 1 July 2007, SCA Division provided personnel services to SCA. The personnel expenses incurred by SCA Division in providing these services have been charged to the SCA for the exact value of the 3 year bonds - - - - costs incurred for the period of $29,366,705 (2006: $6,560.476). 10 year bonds - - - - The amount outstanding at year end which was owed to SCA Division by SCA was $11,259,953 (2006: $12,315,622). 20. POST BALANCE DATE EVENTS 22. CONSOLIDATED ENTITIES There were no post balance date events, except as stated elsewhere in this report. Country of Ownership interest 21. KEY MANAGEMENT PERSONNEL DISCLOSURES Incorporation 2007 2006 Subsidiaries Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the SCA or consolidated entity, directly or indirectly. This comprises all Directors, Sydney Catchment Authority Division Australia 100 100 whether executive or non-executive of the SCA and entities in the consolidated entity.
a) Transactions with key management personnel As outlined in the statement of significant accounting policies (d), SCA Division, a special purpose entity Key management personnel compensation is as follows: established under the PSELAA, was controlled by SCA. SCA Division is a division of the NSW Services Department but is considered to be a division assigned to the statutory corporation being SCA pursuant to Part 2 Consolidated Entity Sydney Catchment and Part 3 of Schedule 1 of the PSELAA. Authority 2007 2006 2007 2006 $’000 $’000 $’000 $’000 Short-term employee benefits 537 439 537 439 (End of Audited Financial Statements) Long-term employee benefits 136 171 136 171 Post-employment benefits 18 15 18 15 691 625 691 625
This comprises compensation relating to:
Chief Executive 468 438 468 438 Board Members 223 187 223 187 691 625 691 625
The above disclosures relating to senior executives are based on actual payments made for employee benefits during the reporting period.
Any transactions undertaken with entities related to key management personnel are conducted on an arm’s length basis in the normal course of business and on commercial terms and conditions.
During the current or previous reporting periods, there were no material transactions with such entities.
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Sydney Catchment Authority | Annual Report 2006–07 21. KEY MANAGEMENT PERSONNEL DISCLOSURES (continued) b) Identity of related parties SCA has a related party relationship with SCA Division. c) Other related party transactions The following summarises the material transactions with related parties within the consolidated group not disclosed in detail elsewhere in the accounts: 133 During the period from 1 July 2007, SCA Division provided personnel services to SCA. The personnel expenses incurred by SCA Division in providing these services have been charged to the SCA for the exact value of the costs incurred for the period of $29,366,705 (2006: $6,560.476).
The amount outstanding at year end which was owed to SCA Division by SCA was $11,259,953 (2006: $12,315,622).
22. CONSOLIDATED ENTITIES
Country of Ownership interest Incorporation 2007 2006 Subsidiaries Sydney Catchment Authority Division Australia 100 100
As outlined in the statement of significant accounting policies (d), SCA Division, a special purpose entity established under the PSELAA, was controlled by SCA. SCA Division is a division of the NSW Services Department but is considered to be a division assigned to the statutory corporation being SCA pursuant to Part 2 and Part 3 of Schedule 1 of the PSELAA.
(End of Audited Financial Statements)
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Sydney Catchment Authority | Annual Report 2006–07 134
Above: Heavy rainfall during June 2007 added around 20 percent to the SCA’s total storage, and caused Nepean Dam to overflow for the first time since May 2000.
Sydney Catchment Authority | Annual Report 2006–07 Appendices 135
Contents Appendix 1 Legal change 136 Appendix 2 Current legal matters 136 Appendix 3 Insurance 137 Appendix 4 Qualifications of SCA Board 138 Appendix 5 Board and committee meeting attendance 141 Appendix 6 Qualifications of the SCA Executive 141 Appendix 7 Freedom of information 142 Appendix 8 Summary of affairs 144 Appendix 9 Schedule of charges 145 Appendix 10 Credit card use 146 Appendix 11 Payment of accounts 146 Appendix 12 SCA grants for non-government 148 community groups Appendix 13 Complaints 149 Appendix 14 Waste reduction and purchasing 150 policy implementation Appendix 15 Guarantee of service 152 Appendix 16 Cost of 2006-07 annual report 152 Above: Cordeaux Dam is listed on the Appendix 17 Heritage assets 152 State Heritage Register for its technical and aesthetic historic significance. Appendix 18 SCA publications 155
Sydney Catchment Authority | Annual Report 2006–072006–07 Appendix 1 – Legal change The amendment Act includes consultancy agreements which fall within this description but 136 136 Drinking Water Catchments Regional does not include employment contracts. Environmental Plan No 1 (REP) replaced There are three levels of contracts that are required State Environmental Planning Policy to be disclosed, with different levels of disclosure for The Drinking Water Catchments Regional each class of contract. A contractor’s financial Environmental Plan No 1 (REP) commenced on 1 arrangements and intellectual property may be January 2007 and applies to all land in the withheld by the agency. hydrological catchment. Development consent won’t be given unless a consent authority considers Amendment of the Sydney Water Catchment and is satisfied that the proposed development has Management Act 1998 a neutral or beneficial effect on water quality The Sydney Water Catchment Management (NorBE). The REP requires the SCA to develop Amendment (Warragamba) Act 2006 amended the rectification action plans (RAPs) for existing Sydney Water Catchment Management Act 1998 developments which do not have a neutral or (SWCM Act) by the inclusion of section 44(5) which beneficial effect on water quality and provide authorised the reduction in size of the Warragamba strategic land and water capability assessments Special Area by the excision from that area of the (SLWCAs) in the hydrological catchment. land as shown on a map held in the head office of the SCA. The amendment Act was assented to on 4 Freedom of Information Amendment (Open December 2006. The excised land is to be Government – Disclosure of Contracts) Act transferred to Wollondilly Shire Council. 2006 The above Act, which commenced on 1 January Appendix 2 – Current legal 2006, amended the Freedom of Information Act 1989 by the insertion of section 15A, which requires matters the disclosure of certain contractual arrangements In 2006–07 the SCA had carriage of the following entered into by government agencies, including the significant litigation. SCA. Warragamba Special Area The tender and contract disclosure obligations apply to contracts between a government agency On 5 December 2005 a prosecution was begun by the and a private sector entity under which the agency SCA in the Land and Environment Court against a or private sector entity agree to: person for the alleged construction of a road in a Crown Road reserve in the Warragamba Special Area • undertake a specific project (eg construction, without first obtaining development consent. A infrastructure or property development) preliminary issue concerning the ability of the SCA to • provide specific goods or services (eg IT services) commence the prosecution was heard on 31 May • transfer real property to the other party 2006. The court found in favour of the SCA on the preliminary issue on 29 September 2006, but • a lease of real property. dismissed the prosecution on 17 April 2007.
Sydney Catchment Authority | Annual Report 2006–07 Warragamba Dam Auxiliary Spillway Appendix 3 – Insurance Project The insurance brokers, Marsh Pty Ltd, have, 137 During 2006–07 the Folly Creek litigation was in consultation with the SCA, arranged the considered by the Supreme Court and was the insurance coverage listed below. The policies and subject of a Special Leave Application to the High level of cover have taken into account the agency’s Court. On 24 April 2007 the High Court found the business needs and risk profile. The policies were SCA’s application did not have reasonable prospects renewed at 31 May 2007 for a period of one year for success if it proceeded to a full hearing. The Chief and have been placed with various domestic, Executive and the SCA’s insurers have approved a London and North American-based underwriters. negotiated settlement of the outstanding issues • Industrial Special Risks (Property) associated with this claim. • Public and Products and Professional Warragamba Dam Incident Indemnity Liability A coronial inquest began on 18 June 2007 into the • Directors’ and Officers’ Liability/Company death of Benjamin Abbott who drowned on Lake Reimbursement including Employment Burragorang when the boat he was travelling in to Practices Liability collect water samples collided with a bank and • Directors’ and Officers’ Supplementary overturned. Mr Abbott was under contract from Legal Expenses Sydney Water Corporation to the SCA. • Statutory Liability • Aircraft Non-Owned Liability 2001–02 Bushfires • Principal Controlled Liability (only for contracts Twenty-four claimants have initiated proceedings in entered into before 31 May 2003) the Supreme Court against the SCA and three other • Corporate Travel – Personal Accident and government agencies, seeking compensation for Sickness the losses they suffered as a result of the 2001–02 bushfires. The main allegations against the SCA are • Comprehensive Motor Vehicle that it failed to undertake sufficient hazard • Workers Compensation (ACT, NT, Tas and WA) reduction burning or to allocate sufficient resources • Personal Accident Employees and Invitees of the to fight the fires. The value of the claims is in the SCA vicinity of $6.5 million. A hearing date is yet to be • Personal Accident Voluntary Workers set. • Workers Compensation. Gundungurra Native Title Claim – Land Workers Compensation insurance has been in Special Areas arranged through QBE and was renewed on 28 As at 30 June 2007 the matter was ongoing. March 2007 for one year.
Gundungurra Native Title Claim – Land Under Stored Waters, Warragamba Dam As at 30 June 2007 the matter was ongoing. It is expected that both native title claims will be settled through an Indigenous Land Use Agreement (ILUA) by the claimants and the other government agencies. However, progress has been slow due to claim group issues which are likely to cause difficulties in having the ILUA authorised.
Sydney Catchment Authority | Annual Report 2006–07 Appendix 4 – Qualifications 138 of SCA Board As at 30 June 2007, the Board comprised the following members:
John Whitehouse Graeme Head Chairman (Deputy Chairman and John Whitehouse has had an extensive career in law Chief Executive – ex officio) and public service. He is a partner with Minter Ellison, Graeme Head, Chief Executive of the Sydney where he is Practice Head, Planning and Environment Catchment Authority from October 2001. * Law. He is a Fellow in Environmental Studies at Mr Head has had a long career in the NSW public Macquarie University and an Honorary Professorial sector spanning the environment and natural Fellow in the School of Law at the University of resources, and health and human services policy Wollongong. areas. Before joining the water industry, he worked His previous positions include: Partner, Dunhill for 12 years at the NSW Environment Protection Madden Butler; Director, NSW National Parks and Authority (EPA) and its predecessor, the State Wildlife Service; Assistant Director, NSW Pollution Control Commission. As an Assistant Department of Environment and Planning; Director, Director General with the EPA, Mr Head had carriage Sydney Water Corporation. Mr Whitehouse holds of a number of significant policy, operational and degrees in arts and law from the University of program areas focused on waste, industrial Sydney, and science from Macquarie University. He chemicals and agricultural chemicals. During the has a Diploma in Legal Practice from the University early 1990s he played a lead role in establishing of Technology, Sydney. EPA’s education and social and behavioural research Mr Whitehouse is the chair of the Board’s programs. Prior to his work in the environment and Prosecutions Committee and a member of the natural resources area, Mr Head worked on a Catchments and Water Quality Committee. number of key public health programs, notably in drug and alcohol policy and HIV/AIDS prevention. Mr Head is a member of the Board’s Audit and Risk Committee, Catchments and Water Quality Committee, and Prosecutions Committee.
* Graeme Head resigned from the role of Chief Executive, effective 31 August 2007.
Sydney Catchment Authority | Annual Report 2006–07 139
John Asquith Maggie Deahm John Asquith is the Nature Conservation Council of Maggie Deahm has spent most of her working life NSW nominee to the SCA Board. Mr Asquith is in the NSW Public Service, including nine years with Chairman of the Community Environment Network the Ministry for the Arts and 12 years with the NSW and a member of the Hunter-Central Rivers Agent General’s Office, London. Catchment Management Authority Board. Ms Deahm has lived in the Blue Mountains since He is a member of the Hunter National Parks and 1987 and was elected to the Blue Mountains City Wildlife Service Advisory Committee, and has been Council in 1991. She served as the federal member a trustee of the NSW Environmental Trust, and a for Macquarie from 1993 to 1996. She served both as member of the NSW Bushfire Coordinating a member and as a Chairman of the Western Sydney Committee. Mr Asquith holds Bachelor of Waste Board from 1996 to 2000. Ms Deahm was Engineering and Master of Arts degrees. He is a Deputy Chairman of the Board of the Jenolan Caves member of the Board’s Catchment and Water Reserve Trust and an assessor to the Local Quality Committee. Government Remuneration Tribunal. Ms Deahm has a Bachelor of Arts in Australian History and English from the University of New England. She is a member of the Board’s Catchments and Water Quality Committee and Prosecution Committee.
Kerry Chant Sara Murray Kerry Chant is Deputy Chief Health Officer Sara Murray has been a councillor for Wingecarribee and Director, Health Protection, NSW Department Shire Council for 13 years, including three years as of Health. Her areas of responsibility include Mayor and one year as Deputy Mayor. Until October strategic management of branches with 2004, Dr Murray was President of the NSW Local responsibility for AIDS, immunisation, Government Association, having previously held the communicable diseases, bio-preparedness – position of Deputy President. She has also served on including influenza and pandemic preparedness a number of intergovernmental committees and has – and environmental health. a strong interest and involvement in water-related Ms Chant is a member of the Royal Australian and environmental issues. College of Physicians, Faculty of Public Health. She Dr Murray is a psychologist in private practice. She is a member of the Board’s Audit and Risk holds a Bachelor of Arts from the Australian Committee. National University and a Doctorate in Psychiatry from the University of Sydney. She has held various research and university teaching positions. Dr Murray is the chair of the Board’s Audit and Risk Committee.
Sydney Catchment Authority | Annual Report 2006–07 140
Andrew Fletcher John Landau Mr Fletcher has had an extensive public sector John Landau joined the Board after working for over career and brings to the Board wide-ranging 20 years as a senior executive in the federal and state specialist accounting and business management governments and the non-profit sector. His previous skills. He is a member of the Board’s Audit and Risk roles have included Director, Policy and Planning, Committee and Prosecutions Committee. NSW Office of State Revenue, and Deputy Mr Fletcher’s former appointments include General Commissioner in the Australian Taxation Office in Manager of the Jenolan Caves Reserve Trust; Canberra. His most recent executive role has been as Director of Internal Audit, Department of Corrective Chief Executive Officer of the Royal Blind Society of Services; member of the Minister for the NSW, where he played a key part in achieving the Environment’s Agencies Consortium; Chair of the merger of that organisation with two other large Blue Mountains Regional Tourism Organisation; Vice agencies to create Vision Australia – a single national President of NSW Tourist Attractions Association blindness organisation. and Treasurer of Central NSW Regional Tourism. Mr Landau is a Fellow of the Australian Institute Mr Fletcher holds a Masters degree in Commerce and of Company Directors and has served as a board a Bachelor of Business degree in Accounting. He is a member on a number of government and non- Fellow Certified Practising Accountant and Associate profit organisations. He currently chairs several Fellow of the Australian Institute of Management. government agency audit committees. Mr Landau holds a Bachelor of Arts degree with first class honours and was awarded the University of Sydney Medal in Government. He is a member of the Board’s Audit and Risk Committee.
Kenneth Wheelwright Kenneth Wheelwright is the NSW Farmers’ Association nominee to the Board. He manages a grazing property on the upper reaches of the Wollondilly River above Pejar Dam and has an active interest in developing sustainable, regenerative and profitable farm management practices. Mr Wheelwright holds a Bachelor of Rural Science from the University of New England and a Bachelor of Business from Charles Sturt University and has trained in holistic management. He is a director on the Hawkesbury Nepean Catchment Management Authority Board. Mr Wheelwright is chair of the Board’s Catchments and Water Quality Committee.
Sydney Catchment Authority | Annual Report 2006–07 Appendix 5 – Board and committee meeting attendance 141 Table 16: Board and committee meeting attendances Board members Board meetings Audit Committee Corporate Plan meetings Working Group meetings
Number of Number of Number of Number of Number of Number of meetings meetings meetings meetings meetings meetings held attended held attended held attended during during during term term term John Whitehouse 12 12 – – 1 1 Graeme Head 12 10 4 4 1 1 John Asquith 12 10 – – 1 1 Andrew Fletcher 12 9* 4 4 – – Kerry Chant 12 10 4 3 – – Maggie Deahm 12 10 – – 1 1 Sara Murray 12 10 – – 1 1 Kenneth Wheelwright 12 11 4 4 – – John Landau 9 8 2 2 – –
* The Board approved Mr Fletcher’s leave of absence from the Board for the meetings of November and December 2006.
Appendix 6 – Qualifications of the SCA Executive As at 30 June 2007, the SCA Executive comprised the following members: Graeme Head – Chief Executive* (see Board profiles Appendix 4 page #) Andrew Bryan, BA (Hons), MTCP, MPIA – General Manager Policy and Governance George Dodds, Dip Civ Eng, M Eng Sc (Environmental Engineering) – General Manager Catchment Operations and Major Projects Ian Landon-Jones, BE (Civil), M Eng Sc – General Manager Dam Safety Ian Tanner, BSc (Civil Eng) – General Manager Bulk Water Barrie Turner, BSc (Hons) (Town Planning), Dip Town Planning, MPIA – General Manager Environment and Planning Lea Rosser, BA, BBus, MBus, MA – General Manager Corporate Services
* Graeme Head resigned from the role of Chief Executive, effective 31 August 2007.
Sydney Catchment Authority | Annual Report 2006–07 Appendix 7 – Freedom of information 142 Requests for information received under the Freedom of Information Act 1989 over five years are shown on the following table.
Table 17: Freedom of information requests Requests 2002–03 2003–04 2004–05 2005–06 2006–07 FOI requests received New (including transferred in) 2 10 1 8 6 Brought forward from previous period 0 0 0 0 Total to be processed 2 10 1 8 6 Completed requests 2 10 1 7 3 Requests transferred out 0 0 0 0 Withdrawn requests 0 0 1 2 Total to be processed 2 10 1 8 5 Unfinished requests (carried forward) 0 0 0 0 1 Results of FOI requests Granted in full 0 4 1 2 1 Granted in part 1 4 0 0 1 Refused 1 2 0 5 1 Deferred 0 0 0 0 0 Requests requiring formal consultation 1 5 3 0 3 Requests granted in part or refused – basis of disallowing or restricting access s.19 application incomplete. Wrongly directed 0 1 0 0 0 s.22 deposit not paid 0 1 0 1 1 s.25(1)(a1)diversion of resources 0 0 0 0 0 s.25(1)(a) exempt 1 4 0 4 1 s.25(1)(b), (c), (d) otherwise unavailable 0 0 0 0 0 s.28(1)(b) documents not held 1 0 0 0 0 s.24(2) deemed refused, over 21 days 0 0 0 0 0 s.31(4) released to medical practitioner 0 0 0 0 0 Total 2 6 0 5 2 Costs and fees of requests processed Assessed costs $60 $420 $30 $180 $975 Fees received $60 $270 $30 $180 $975 Discounts allowed Public interest 0 1 0 2 1 Financial hardship: pensioner/child 0 0 0 0 0 Financial hardship: non-profit organisation 0 0 0 0 0 Total 0 1 0 2 1
Sydney Catchment Authority | Annual Report 2006–07 143
Requests 2002–03 2003–04 2004–05 2005–06 2006–07 Days to process 0-21 days 2 4 1 5 1 22-35 days 0 6 0 2 2 Over 35 days 0 0 0 0 0 Total processed 2 10 1 7 3 Processing time 0-10 hours 2 8 1 5 2 11-20 hours 0 2 0 2 1 21-40 hours 0 0 0 0 0 Over 40 hours 0 0 0 0 0 Total processed 2 10 1 7 3 Reviews and appeals finalised Internal reviews 0 1 0 1 0 Ombudsman’s reviews 0 0 0 0 0 Administrative Decisions Tribunal appeals 0 0 0 0 0 Internal review details – grounds on which requested Upheld Access refused 0 0 0 0 0 Exempt matter 0 1 0 1 0 Unreasonable charges 0 0 0 0 0 Charge unreasonably incurred 0 0 0 0 0 Total upheld 0 1 0 1 0 Varied Access refused 0 0 0 0 0 Exempt matter 0 0 0 0 0 Unreasonable charges 0 0 0 0 0 Charge unreasonably incurred 0 0 0 0 0 Total varied 0 0 0 0 0 Total 0 1 0 1 0
Sydney Catchment Authority | Annual Report 2006–07 Appendix 8 – Summary of affairs Section 2 – Statement of Affairs 144 The SCA’s most recent statement of affairs is Section 1 - Policy documents available on the SCA’s web site. Copies of the The SCA holds the following policies and statement of affairs are held in the SCA’s library and procedures that may be accessed for information. are available for inspection. Copies of the statement of affairs can be obtained by contacting • 2002–2007 business plan the SCA’s FOI Coordinator at the address shown • Access to published information below. • Access to Special Areas, controlled areas The statement of affairs provides information on: and water storages • Catchment protection and improvement grant • structure and functions of the SCA guide • description of the ways in which the functions • Closure of SCA recreational areas of the SCA affect members of the public • Code of conduct • manner in which the public can participate in the formation of the SCA’s policy and the • Incident management policy exercise of the SCA’s functions • Complaints handling policy and procedure • description of the various types of documents • Heritage policy usually held by the SCA • Dealing with offences under the Sydney Water • procedural arrangements for public access to the Catchment Management (General Regulation) SCA’s documents 2000 • provision for the amendment of the SCA’s • Energy management policy records concerning the personal affairs of a • Environmental plan 2006–2010 member of the public. • Environment policy Section 3 – Contact arrangements • Environmental education policy All applications for access to documents in the • Environmental impact assessment policy possession of the SCA (other than policy • Equity and diversity management plan 2004– documents) must be in writing and should be 2006 accompanied by an application fee of $30 and • Freedom of information procedures marked to the attention of the ‘FOI Coordinator’. • Local Government Reference Panel – charter The application should be addressed to: and procedures The FOI Coordinator • 2006 Metropolitan Water Plan Sydney Catchment Authority • Onsite sewage management grants guidelines PO Box 323 PENRITH NSW 2751 • Privacy management plan • Prosecution and compliance guidelines Access to policy documents, unless otherwise stated, is free of charge and access can be arranged • Protocol for State Environmental Planning Policy by contacting the FOI Coordinator on telephone (Sydney Metropolitan Water Supply) 2004 number 4725 2103, facsimile 4725 2520, by email • Riparian management assistance guide on [email protected], or in person at the • Special Areas Strategic Plan of Management and address below between the hours of 8.30am and charter of public disclosure 5pm, Monday to Friday. • Special Areas brochure – what you can and can’t Sydney Catchment Authority do Level 2, 311 High Street • Water industry sponsorship guidelines PENRITH NSW 2750 • Wingecarribee Swamp and Special Area Plan of Management
Sydney Catchment Authority | Annual Report 2006–07 Appendix 9 – Schedule of charges 145 Schedule of charges for regulated water supply services for 2006–07 In September 2005, IPART determined a new price path for SCA’s charges from 1 October 2005 to 30 June 2009. The determination provides for the increase in certain charges to be linked to the movement in the Consumer Price Index (CPI). Accordingly, IPART has allowed a 6.3 percent CPI adjustment for the two years since the determination was made. The SCA will apply the increased charges effective from 1 July 2007.
Table 18: SCA pricing schedule 2006–07 Charge (type) Charge ($) Sydney Water Corporation Fixed availability charge (per calendar month) 5,267,472 Volumetric charge (per megalitre) 174.67 Wingecarribee Shire Council Volumetric charge (per megalitre) 152.84 Shoalhaven City Council Volumetric charge for Kangaroo Valley (per megalitre) 152.84 Volumetric charge for Tallowa Dam releases in times of drought (per megalitre) 152.84 Unfiltered water Service charge for connection of nominal diameter: 20 mm 75.00 25 mm 117.20 30 mm 168.75 32 mm 192.00 40 mm 300.00 50 mm 468.75 80 mm 1,200.00 100 mm 1,875.00 150 mm 4,218.75 200 mm 7,500.00 >200 mm (nominal diameter)2 x 75/400 Volumetric charge (per kilolitre) 0.79 Bulk raw water Volumetric charge (per kilolitre) 0.46
Sydney Catchment Authority | Annual Report 2006–07 Appendix 10 – Credit card use 146 The SCA operates MasterCard credit card facilities with Westpac Banking Corporation. As at 30 June 2007, the SCA had issued seven credit cards to Executive members, and one corporate credit card. Credit card expenditure is paid by electronic funds transfer directly from the SCA’s bank account on the second day of each month. The SCA limits the establishment of vendor accounts by using the corporate credit card. The corporate card has a credit limit of $15,000. All other credit cards have limits between $3000 and $5000. Expenditure on SCA Executive credit cards is certified by the cardholder and independently verified by the cardholder’s supervisor. In 2006–07, authorisation of payment was undertaken on a monthly basis by the Chief Financial Officer. All MasterCard credit card payments were made on time and no interest charges were incurred.
Appendix 11 – Payment of accounts Aged analysis Table 19 shows the aged analysis of accounts payable as at the end of each quarter of 2006–07. The SCA’s target is to settle all accounts payable within 30 days trading terms or in accordance with the terms specified on the vendor’s invoice.
Table 19: Aged analysis at the end of each quarter for the 2006–07 year Quarter Current Less than 30 Between 30 Between 60 More than 90 (ie within due days overdue and 60 days and 90 days days overdue date) overdue overdue $ $ $ $ $ Sep–06 2,761,687 112,401 3,222 0 0 Dec–06 4,013,657 456,498 9,319 23,291 23,904 Mar–07 1,603,725 780,844 3,296 0 2,542 Jun–07 2,984,312 -7,190 -1,039 0 1,950
Table 20: Accounts paid within each quarter for the year 2006–07 Total Accounts Paid 0 – 30 Days Overdue Quarter Target Actual $ Total Amount paid % % $ $ Sep–06 100 94.86% 43,559,687 45,910,298 Dec–06 100 97.61% 51,330,887 52,586,484 Mar–07 100 95.53% 25,258,247 26,439,043 Jun–07 100 94.51% 33,246,090 35,176,999
Interest awarded During the year interest of $228.91 was incurred on overdue accounts as follows: Interest incurred on late payment of Sydney Water account $182.65 Interest incurred on late payment of Energy Australia account $13.22 Interest incurred on late payment of Department of Lands account $33.04
Sydney Catchment Authority | Annual Report 2006–07 Payment performance over the 2006–07 year During 2006–07, the SCA focused on further improving the timeliness of payment processing by ensuring 147 that all goods and services purchased are receipted promptly by relevant staff. This process has been performed electronically since the introduction of the SCA’s fully integrated purchasing management system. The SCA has continued to review its creditor payment performance in light of payment terms stated on vendor invoices to ensure consistency. Additionally, the credit master files have been updated in the SCA’s SUN financial management system to reflect any change in vendor payment terms.
$5,000,000 4,013,656.76 $4,000,000 2,984,311.56 $3,000,000 2,761,687.05
$2,000,000 1,603,724.87
$1,000,000 780,843.92 456,498.11 112,400.56 -7,189.85 3,221.73 9,318.79 3,296.23 -1,038.89 23,290.71 23,904.29 2,542.00 1,950.00 0 Current < 30 Days 30-60 Days 61-90 Days > 90 Days -$1,000,000
September 06 December 06 March 07 June 07
Figure 7: Accounts payable aged analysis by quarter for the period ended 30 June 2007.
Figure 8: Creditor’s payment summary by % 2006–07 by quarter
Sydney Catchment Authority | Annual Report 2006–07 Appendix 12 – SCA grants for non-government community groups 148 Table 21: SCA grants to non-government community groups in 2006–07 Community Group Project $ Zig Zag Railway Co-op Ltd Revegetation and weed control within Zig Zag Reserve. 1,230.00 Berrima Bushcare Group Conserve and enhance the biodiversity values and improve water 8,560.00 quality of Wingecarribee River at Berrima. Blue Mountains City Council Biodiversity Workshop Project 2006–07 7,700.00 Lithgow and District Production of local native tubestock for environmental restoration 7,819.45 Community Nursery projects in the catchment. Kangaroo Valley Continuation of the natural vegetation restoration program. 10,000.00 Environment Group Billyrambija Landcare Group A pilot program to assess the feasibility and effectiveness of 8,000.00 introducing dung beetle colonies in the lower Tarlo River sub- catchment. Total $43,309.45
Sydney Catchment Authority | Annual Report 2006–07 Appendix 13 – Complaints 149 Table 22: Summary complaint numbers Complaints carried Total complaints Total complaints Total complaints over from 2005–06 received 2006–07 resolved 2006–07 remaining open 2006–07 8 22 24 6
Table 23: Total complaints resolved 2006–07 Complaint Category Date Interim Method of resolution (how number received response on resolved) time/date resolved 4299 Picnic area facilities 20/5/05 7 28/9/06 Resolved by explanation/provision 4330 Staff/Contractors 19/4/06 3 26/10/06 of information 4331 Picnic area facilities 19/4/06 3 18/10/06 4333 Picnic area facilities 3/5/06 7 18/7/06 4334 Other 26/4/06 7 17/7/06 4337 Tender process 30/5/06 3 11/10/06 4341 Environmental and heritage 19/9/06 3 21/9/06 4342 Picnic area facilities 2/10/06 3 3/10/06 4345 Staff/Contractors 10/10/06 3 11/12/06 4347 Development application 20/10/06 7 14/12/06 4349 Picnic area facilities 7/12/06 3 8/12/06 4356 Environmental and heritage 15/2/07 3 14/6/07 4357 Staff/Contractors 14/3/07 3 15/3/07 4362 Staff/Contractors 17/5/07 7 31/5/07 4351 Environmental and heritage 13/12/06 3 29/3/07 4335 Other 11/5/06 3 22/9/06 4338 Other 26/6/06 3 18/7/06 Resolved by undertaking actions 4361 Staff/Contractors 30/4/07 7 20/6/07 to correct situation 4348 Catchment use –recreational 23/10/06 3 7/2/07 4354 Picnic area facilities 7/2/07 3 4/6/07 4339 Liability claims – damage 10/7/06 3 26/10/06 4363 Environmental and heritage 14/12/06 7 19/6/07 4353 Allegations – 29/1/07 3 6/6/07 This complaint was closed as it is mismanagement linked to another complaint in the system 4358 Flood 27/3/07 3 5/4/07 Resolved by extended negotiation
Sydney Catchment Authority | Annual Report 2006–07 Appendix 14 – Waste In 2006–07 the SCA recycled approximately 82 percent of the paper it generated compared to 78 150 reduction and purchasing percent in 2005–06. We have also almost doubled policy implementation the amount of plastic we recycle. In 2006–07, approximately 421 kilograms of plastic was sent to Reducing waste recycling compared with 237 kilograms in 2005–06. The SCA encourages staff to use electronic Most staff have access to paper, cardboard and documents, to only print necessary emails and to newspaper recycling services. Six of the SCA’s seven print on recycled paper. Most SCA printers default offices have access to a mixed recycling service. to double-sided pages. Our kitchens are equipped Work is under way to make the service available with ceramic crockery and cutlery to discourage use at the remaining site. of disposable containers. Waste disposal clauses are included in all contract While the SCA has bought eight percent more paper documents, requiring contractors to recycle or than last year, we bought 142 fewer toner divert waste wherever possible to ensure waste is cartridges. All used toner cartridges are returned to recycled at a licensed facility. Where possible, fill the manufacturer for reuse. and virgin excavated natural material from construction projects is used or stockpiled onsite. The SCA’s orientation and induction package for new We recycled almost 100 percent of the sandstone staff contains modules that address waste avoidance, waste excavated as part of the Warragamba deep waste minimisation and recycling. We have updated water access project and the Warragamba Visitor the induction package for new employees to include Centre precinct project. details about the types of recycling bins available for staff within their work areas. This initiative was a Where possible, the SCA recycles waste oil arising recommendation from the annual waste audit. from pump and transformer maintenance activities. Under the SCA’s Civil Mechanical Electrical The total amount of waste generated at the sites Maintenance Contract, approximately 400 litres of audited by the SCA annual waste audit was 24,673 used oil is collected and recycled by the contractor kilograms, or 92 kilograms per person. This is an each year, and, in the past 12 months, the increase from 2005, when we produced 12,754 contractor has refurbished and reused five air valves kilograms (53 kilograms per person). Figure 9 shows and two gate valves. a breakdown of what was sent to landfill. A portion of the increase is attributed to the auditing of additional offices in 2006. Another contributing Using recycled material factor was the 30 kilogram per person increase in It is SCA policy to purchase and use recycled recyclables, mainly paper. or environmentally responsible materials. Approximately 87 percent of the paper we use More generally, the SCA mulches fallen trees where has a minimum of 60 percent recycled content. appropriate and reuses the material as mulch onsite. Cable from the Warragamba Suspension Bridge, Approximately 99 percent of externally printed which was demolished for safety reasons, will be documents are printed on paper with a minimum of reused for fencing in the catchments. The heritage 50 percent recycled content. Where possible, items gates retained from the project to re-fence the Upper are printed digitally in small numbers, or on demand, Canal will be used for stock-proof fencing. which significantly reduces the total amount of paper used. Resource recovery The SCA also has information about waste The annual waste audit estimated a total of 16,686 management, and tips and hints located on its kilograms of waste was recovered (recycled) from intranet. Posters in offices remind staff of their the sites audited during 2006–07. This comprised obligations. 15,886 kilograms of paper (including writing paper, newspaper and cardboard) as well as other recyclable material such as glass (241 kilograms), plastics (421 kilograms) and ferrous/nonferrous material such as aluminium and steel (138 kilograms). This equated to the doubling of our recycling efforts since 2005–06.
Sydney Catchment Authority | Annual Report 2006–07 20 151
YEAR 15 YEE / 10
5 KG / EMPLO
0 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
YEAR
Paper Organic Plastic Glass Other organic Ferrous/non-ferrous
Figure 9: Volume and type of waste sent to landfill from SCA audited sites over seven years (operating licence indicator)
Figure 10: Waste recycled as a percentage of total waste by type (operating licence indicator)
Sydney Catchment Authority | Annual Report 2006–07 Appendix 15 – Guarantee of service 152 The Sydney Water Catchment Management Act 1998 requires the SCA to enter into arrangements for the supply of water by the SCA to Sydney Water. A review of these arrangements was completed during 2005– 06 and a revised set of bulk water supply protocols was agreed in December 2006.
Appendix 16 – Cost of 2006–07 annual report In response to stakeholder demand, this year we have produced 150 printed copies of the report and 150 CD Rom copies. The estimated external production cost of the SCA Annual Report 2006-07 was $26,000. The report is available online at www.sca.nsw.gov.au
Appendix 17 – Heritage assets The SCA is responsible for managing heritage items including water storages and associated infrastructure, weirs, homesteads, bridges and sites of significance to indigenous communities. The SCA and DECC jointly manage heritage within the Special Areas. The SCA and Sydney Water jointly operate the Historical Research and Archive Facility, which provides an important resource for the agencies and the public. During the year the SCA has implemented its Heritage Asset Management Strategy (HAMS). The strategy was developed to implement the principles and guidelines outlined in the document State-owned Heritage Management Principles. The SCA owns 20 state heritage-listed items and has other local heritage assets listed on its draft section 170 Heritage and Conservation Register. The condition of the heritage assets is listed in table 24.
Heritage asset condition
Table 24: Heritage asset condition in 2006–07 Heritage item Condition in Notes/Works begun or completed 2006–07 A. Engineering heritage Warragamba Supply Scheme Warragamba Dam • Crest gantry crane Good • Crest gates Good • Dam outlets Good • 18 ton Cableway (Upper Tail Good Tower) • Haviland Park, Warragamba Fair Construction of new Visitor Centre and Operations Building Dam begun. • Main dam wall Good • Suspension ridge This facility was partially demolished (cables and main wooden deck). Head tower left in situ and refurbished and repainted. • Megarritys Bridge Good • Valve house Good Warragamba-Prospect Good Pipelines 1 and 2
Sydney Catchment Authority | Annual Report 2006–07 Heritage item condition in notes/works begun or completed 2006–07 153 Warragamba Emergency Scheme Warragamba Emergency Good Refurbishment works completed on the new pumping station. Pumping Station 9 Warragamba Weir Good
Heritage item condition in notes/works begun or completed 2006–07 Upper Nepean and Woronora Supply Scheme Avon Dam Good New outlet works and associated access road constructed at downstream toe of dam. Cataract Dam Good Repairs to museum and white ant protection works undertaken. Cordeaux Dam Good Routine inspections undertaken. Hudson’s Emergency Scheme Poor Nepean Dam Good Deepwater pumping station constructed at downstream toe of dam, design of building compatible with existing facilities. Prospect Reservoir and Good Raw water pumping station construction works completed. surrounding area Commissioning commenced. Prospect Reservoir Valve House Good Planning and investigations for the upgrade of the scour system continues. Upper Canal System Fair Sandstone blocks replaced with similar units and original blocks reset in walls at a number of locations as part of routine maintenance. Upper Canal fencing project commenced to provide improved protection of assets and better control of public access. Original gates retained where practicable. • Broughton Pass Weir Good Ongoing surveillance by SCA and BHP Billiton associated with monitoring of mining subsidence impacts. • Nepean Tunnel Good Control gate lifting equipment repaired. • Pheasants Nest Weir Good Routine inspections undertaken. Upper Cordeaux Dam No 1 Fair to Good Routine inspections undertaken. Upper Cordeaux Dam No 2 Fair to Good Crack monitoring equipment installed at a number of sites to monitor effects of mining activities in the near vicinity. Cordeaux Manor Good Woronora Dam Good Routine inspections undertaken. Woronora –Penshurst pipeline Good
Heritage item condition in notes/works begun or completed 2006–07 Upper Nepean Scheme Compensation Weirs Brownlow Weir Good Routine inspection and maintenance. Cobbitty Village Weir Partially Routine inspection and maintenance. demolished Menangle Weir Good Routine inspection and maintenance. Mt Hunter Rivulet Weir Good Routine inspection and maintenance. Thurns Weir Good Routine inspection and maintenance. Wallacia Weir Good Routine inspection and maintenance.
Sydney Catchment Authority | Annual Report 2006–07 Heritage item condition in notes/works begun or completed 154 2006–07 Blue Mountains Supply System Cascades dams Good Raw water pumping station located at base of dam wall completed and commissioned. Greaves Dam Good Medlow Bath Dam Good Woodford Creek Dam Good
Heritage item condition in notes/works begun or completed 2006–07 B. Historic buildings Arnprior Poor to fair Barralier Poor Cookanulla Poor Glen D’Or Poor to Fair Joe Deacon’s Hut Poor Site managed as a ruin. Fenced to prevent access. Kedumba Slab Hut Poor Site managed as a ruin. Fenced to prevent access. Khama Lea Poor to Fair La Vista Poor Mayfield Fair Ooranook Fair St Senans Church Good Quarterly inspections undertaken as part of the hazard inspection program. An assessment of the roof has been undertaken. A project to replace the existing roof is included in the 2007–08 capital works program. Virginia Fair Walker’s homestead Fair Slashed fire break around homestead. Windmill Hill Good Slashed fire break around house, stone ruins and dairy site. Yerranderie Court House Good Quarterly inspections are undertaken as part of the hazard inspection program. Yerranderie Police Station Good Quarterly inspections are undertaken as part of the hazard inspection program.
Heritage item condition in notes/works begun or completed 2006–07 c. landscape items Wingecarribee Swamp Poor Weed control work ongoing for willows and blackberry.
Condition descriptors Good – currently fit for purpose (operational) or generally intact, or both Fair – not currently fit for purpose (operational) but stable and requiring only moderate repairs Poor – not fit for purpose (operational), unstable and requiring extensive restoration works
Sydney Catchment Authority | Annual Report 2006–07 Appendix 18 – SCA publications • SCA Environmental Plan 2006–10 The SCA produces brochures, fact sheets, reports • Special Areas Strategic Plan of Management 155 155 and other materials in printed and electronic forms, • Wingecarribee Swamp and Special Area Plan relating to the SCA and its activities. The material is of Management available by contacting the SCA Publication Officer at Level 2, 311 High Street, Penrith, or by phoning Reports 02 4725 2516. Publications are also available from • SCA annual reports our website at www.sca.nsw.gov.au. • SCA annual water quality monitoring reports Brochures • Annual reports on implementation of the Special Areas Strategic Plan of Management • Dams of Greater Sydney and surrounds • Annual reports on implementation of the - Blue Mountains Wingecarribee Swamp and Special Area Plan - Shoalhaven of Management - Upper Nepean • Leakage and loss report 2007 - Woronora • Review of Sydney’s water supply system yield - Warragamba • Review of the Sydney Water Catchment • How to make a complaint or offer a compliment Management Act 1998 • Privacy laws, the SCA and you • SCA report on catchment management and protection activities for 2005–06 • Special Areas brochure – What you can and can’t do Other • Water industry sponsorship guidelines and • Local Government Reference Panel application form – charter and procedures Fact sheets • Memoranda of understanding – Environment Protection Authority, NSW Health, Water • Application for consent to enter the SCA Special Administration Ministerial Corporation or Controlled Areas • SCA operating licence • Flooding rain following drought • Raw Drinking Water Quality Management • Map of the SCA’s drinking water catchments Framework Plans • Special Areas Strategic Plan of Management • Regional Plan – overview charter of public disclosure • Regional Plan – action plan • Statement of affairs • Regional Plan – background information • Summary of affairs • Regional Plan – guide for agricultural • Aerial map of Wingecarribee Swamp Reservoir development • Aquatic ecological survey, Robertson NSW • Regional Plan – neutral or beneficial effect on • Detailed maps of the Sydney drinking water water quality assessment guidelines catchments • SCA Corporate Plan 2007–2012
Sydney Catchment Authority | Annual Report 2006–07 • Hawkesbury-Nepean experimental environmental flow strategy 156 • Hydrogeological and geophysical investigations of Wingecarribee Swamp • Quantitative analysis of flora at Wingecarribee Swamp 2001–2002 • SCA prosecution and compliance guidelines Community consultation • Shoalhaven Community Reference Group minutes • Upper Nepean Groundwater Community Reference Group minutes • Groundwater investigations – community information documents • Shoalhaven River water supply transfers and environmental flows – community information documents • SCA Groundwater Investigations Community Consultation and Submissions Report • Independent hydrogeological review – proposed Kangaloon borefield Multimedia • Water Quality: Higher School Certificate (HSC) Chemistry web-based resource • A safe dam – a sure supply – video • Warragamba Dam auxiliary spillway – video • The Warragamba story – video
Sydney Catchment Authority | Annual Report 2006–07 Sydney Catchment Authority Division of the Government Service | Annual Report 0607157
TO BE UPDATED 158 Sydney Catchment Authority Division of the Government Service Annual Report 2006–07
Contents Letter to the Minister 159 About the SCA Division of the Government Service 160 KRA 06 - Dynamic, supportive workplace 161 SCA Division financial reporting 169 Appendices 195
Sydney Catchment Authority | Annual Report 2006–07 159
Sydney Catchment Authority | Annual Report 2006–07 160
About the SCA Division of the Government Service
The Public Sector Employment Legislation personnel services to a single statutory corporation Amendment Act 2006 amended the Public Sector where the service entity has no functions other than Employment and Management Act 2002 by employment functions.’ As a result, staff are now establishing the Government Service of New South employed by the NSW Government and the SCA Wales, and provided for the employment of the Division is required to produce separate financial former staff of certain government agencies within reports. various divisions of the service in the service of the The annual report for a statutory corporation with a Crown. special purpose service entity must include three As a consequence, the Sydney Catchment Authority sets of financial reports. These comprise the Division of the Government Service (SCA Division) financial report of the parent entity, the special was established. The SCA Division provides purpose service entity and the economic personnel services to the Sydney Catchment (consolidated) entity. Authority to enable it to carry out its statutory This annual report for the SCA Division is in two functions. The Chief Executive is the Division Head sections. Section one reports on the personnel and exercises employer functions in relation to services that the government provides to the Division. Division staff. Section two contains the Division’s financial reports Under these arrangements, the SCA Division is a required by Treasury. ‘special purpose service entity’. A ‘special purpose service entity’ is a service entity ‘that provides
Sydney Catchment Authority | Annual Report 2006–07 key result area Dynamic, 161 06 supportive workplace
Above: SCA staff with appropriate skills and training supported the Rural Fire Service response to the Barkers Creek fire in the Warragamba Special Area in November 2006.
Sydney Catchment Authority | Annual Report 2006–07 Key result area 06 – Dynamic, supportive workplace 162 162 So that we are able to meet the challenges facing the organisation both now and in the future, we will achieve the following outcomes over the period 2002–07: • the SCA will provide a safe, healthy workplace and facilities • comprehensive workforce planning and management will support the SCA • SCA staff will contribute to and work within the business planning framework • the SCA will be a fair and equitable workplace that reflects our values.
The NSW Government requires the Sydney Our staff Catchment Authority Division of the Government Service (SCA Division), as a statutory corporation, to Supporting the SCA’s skills base – include details of the personnel services and enhancing workplace practices employee related matters of the organisation in its annual report. Our learning and development programs throughout 2006–07 aimed to foster the The SCA Division employs around 300 staff who are development of skills and capabilities to meet essential to the successful delivery of our services. current and future SCA business needs. The SCA Division aims to provide an equitable work environment that is happy, safe and healthy for all The SCA developed a new graduate employment employees, and to attract and retain the most program, with a first intake in February 2007. A suitably qualified people. staff-mentoring component is a feature of the program, which will be enhanced in 2007–08 as part The Division applied various employee-related of a broader SCA base-level employment program. strategies and programs throughout the year. These include establishing a new occupational health and Key corporate training programs delivered during safety (OHS) system, enhancing the SCA Division’s the year included: skills base through a range of training programs, • EEO Awareness and Prevention of Bullying and recognising staff achievement and service, and Harassment in the Workplace implementing a complete human resources • Modern Business Writing information system (CHRIS). • Records Management Training – Concepts and Maintenance • Project Management – Principles, Tools and Advanced • Environmental Education for Managers • OHS Training for Supervisors/Managers • ArcGIS Training – Making Maps in ArcMap and Temporal Analyst – ArcGIS • OHS Consultation – Committee Representatives.
KRA 06 Sydney Catchment Authority | Annual Report 2006–07 163
Above: SCA employee, Daphne Cassar, was awarded a prestigious European Union postgraduate scholarship to study spatio-temporal vegetation health. Case study Daphne Cassar wins prestigious EU scholarship SCA Catchment Information Officer, Daphne Cassar is studying in Europe after winning a prestigious European Union postgraduate scholarship. The fully-funded, 18-month scholarship will allow her to extend her research into spatio-temporal vegetation health, her area of focus during her time with the SCA. The study of spatio-vegetation researches vegetation condition over space and time using data derived from Earth-orbiting satellites. In SCA context, ‘space’ is our area of operations and ‘time’ is the period for which we can obtain data. Our current research covers the period 1988–2006 and the data comes from two NASA satellites. The SCA catchment area supports a diverse range of vegetation communities, from rainforests to dry sclerophyll forests to grasslands. Research about how these communities respond to changes in rainfall and fire helps the SCA understand the effects of wildfire and drought on catchment water yield. Ms Cassar started with the SCA in December 2005 under a University of Western Sydney (UWS) Cooperative Program, Summer Research Award. She then successfully applied for a term position with the Catchment Information Unit as a spatial analyst. During her time with the SCA, Ms Cassar helped develop spatial data layers for the environmental indicators program. Encouraged by her SCA mentors, Ms Cassar focused her scholarship application on her work at the SCA. The scholarship, worth 40,000 Euros, is funded by the European Union, and involves study at the International Institute for Geo-Information and Earth Observation (Netherlands), Lund University (Sweden), the University of Southampton (UK) and the University of Warsaw (Poland).
KRA 06 Sydney Catchment Authority | Annual Report 2006–07 Managing performance and recognising The program was reviewed and awarded to a new provider from July 2007. The new provider is one of 164 164 staff achievement the biggest employee assistance service providers The SCA’s performance management system internationally and has demonstrated a good continues to operate effectively, with staff and understanding of cultural and language diversity management committed to developing individual within a workforce. performance agreements aligned to work area and organisational strategies. Key features of the new program include: The system is being reviewed to better address the • access to expert face-to-face assistance, full range of performance criteria. Enhancements counselling ‘off-site’ and over the telephone 24 approved for the coming 12 months include hours a day, seven days a week including access establishing a teams-based rewards and recognition to services in community languages (and in scheme to acknowledge the achievements of some cases employees will be referred to other specialists) 164 inter- and cross-divisional working teams. During the year, 20 staff members received • online access to up-to-date information in most ‘outstanding’ achievement ratings in their common community languages. performance reviews. Recipients, along with their The program addresses both individual and managers and executive members, attended a systemic issues that may arise in the workplace ceremony that paid tribute to the extraordinary which impact on employee wellbeing and contribution each had made to the success of the SCA. performance. In 2006–07, about 30 SCA employees used the Long service awards program. This is higher than the previous year and As part of the SCA’s recognition of its staff and their equates to a rate of about 10 percent. This is above the contribution to the organisation and NSW Government, average industry usage rate of three percent to five 10 staff were awarded SCA Long Service Awards during percent. Approximately 90 percent of employees who 2007. The awards recognised continuous employment used the service reported that they referred with the SCA (including previous service with Sydney themselves to the program. The remainder were Water). referred by authorised personnel in Human Resources. The high incidence of self-referrals shows the SCA has Occupational health and safety been successful in actively promoting the program. In 2007 the SCA established a new occupational The program helped the SCA and its staff to cope health and safety (OHS) system and work has with a range of work and personal issues that progressed to review, upgrade and establish new otherwise would have had a more significant impact procedures across all OHS processes. An important on employee performance and effectiveness. part of this work is the establishment of a tailored training program to ensure safe work practices are Equity and diversity applied. management plan During 2007, a new OHS committee was appointed The SCA is required by legislation and government and is working to establish inspection programs. policy to develop a number of management plans The committee will create a review process for all relating to equity and diversity initiatives and new procedures and ensure all staff have direct programs. The SCA Equity and Diversity representation across all SCA work areas. Management Plan combines these requirements Employee Assistance Program into one overarching plan that sets out the SCA’s initiatives for the next three years. This covers the The SCA Employee Assistance Program is an SCA’s obligations to produce: independent confidential counselling service for SCA staff and their immediate family members. It • an equal employment opportunity (EEO) deals with both personal and work related issues. management plan • a disability action plan • an ethnic affairs priority statement.
KRA 06 Sydney Catchment Authority | Annual Report 2006–07 The SCA Equity and Diversity Management Plan has been developed according to guidelines issued by the Office of Equal Employment Opportunity and Diversity, Ageing and Disability Department, and the 165 Community Relations Commission, in consultation with SCA senior management and key members from all business areas. All SCA staff are responsible for carrying out the actions in the plan, and in meeting our legislative obligations. Staff with direct responsibilities will have these stated in their performance agreements. The agreements will be reviewed regularly.
Equal employment opportunity The SCA is an equal employment opportunity (EEO) employer. We are guided in our actions by the NSW Anti-Discrimination Act 1997. Table 1 shows trends in SCA’s EEO performance.
Table 1: Trends in the representation and distribution of equal employment opportunity (EEO) groups. A. Trends in representation of EEO groups – Percentage of total staff representation EEO Group Benchmark 2003 2004 2005 2006 2007 or target (%) (%) (%) (%) (%) Women 50.0 38.0 38.0 37.0 38.0 40.0 Aboriginal people and Torres Strait Islanders 2.0 1.0 2.1 2.0 2.2 1.9 People whose first language was not English 20.0 13.0 16.0 14.0 15.0 18.0 People with a disability 12.0 4.0 4.0 3.0 3.0 3.0 People with a disability requiring 7.0 1.0 1.2 1.1 1.0 1.0 work-related adjustment
B. Trends in the distribution of EEO Groups – Distribution Index EEO Group Benchmark 2003 2004 2005 2006 2007 or target (%) (%) (%) (%) (%) Women 100.0 87.0 88.0 86.0 85.0 85.0 Aboriginal people and Torres Strait Islanders 100.0 n/a n/a n/a n/a n/a People whose first language was not English 100.0 109.0 109.0 107.0 107.0 106.0 People with a disability 100.0 n/a n/a n/a n/a n/a People with a disability requiring 100.0 n/a n/a n/a n/a n/a work-related adjustment
Table 2: External appointments highlighting EEO target groups EEO Group 2002–03 2003–04 2004–05 2005–06 2006–07 Number of external appointments (new employees)1 53 52 40 44 43 Number of responses to EEO questionnaires received 48 45 33 37 35 Women2 56.0% 40.0% 22.0% 47.0% 54.0% Aboriginal people and Torres Strait Islanders3 0.0% 6.0% 0.0% 0.0% 0.0% People from a non-English speaking background3 14.0% 24.0% 6.0% 13.0% 26.0% People with a disability3 8.0% 11.0% 0.0% 0.0% 3.0% People from a racial, ethnic or ethno-religious 14.0% 26.0% 9.0% 13.0% 29.0% minority group3
1 This information was based on external appointments for each financial year (it has not been reduced by terminations). 2 Based on the number of new external appointments. 3 Category percentages are based on the number of EEO questionnaires received. KRA 06 Sydney Catchment Authority | Annual Report 2006–07 Equitable access input from a range of officers in the organisation, including the Workforce Diversity Officer to 166 The SCA is committed to the principles of equity and diversity. These principles underpin the way we ensure sound EEO and merit-based practices relate to fellow and prospective employees and • all non-supervisory staff attending EEO members of the community. awareness training sessions in May – June 2007. The training included information on relevant We are guided by the Commonwealth Disability legislation and examples of discrimination with Discrimination Act 1992, NSW Disability Services regard to cultural diversity, race and ethno- Act 1993 and the Community Relations Commission religious background and Principles of Multiculturalism Act 2000. • accommodating the needs of the diverse The SCA’s policies, procedures and work practices backgrounds of our employees and allowing reflect the provision of equitable access and access to leave entitlements and flexible work opportunities for both employees, and where hours for the purposes of religious observance applicable, members of community in the following and cultural obligations and duties. areas: • premises, services and facilities Planned activities for 2007–08 • relevant information and communications • the SCA extended an invitation for relevant • participation in decision-making. employees to participate in the CLAS during July 2007 The SCA ensures that all staff have equal opportunity and access in the workplace, and that • the SCA will update its Equity and Diversity all members of the community have equality of Management Plan to include sections covering access to SCA information and services. SCA service delivery to people of culturally and linguistically diverse backgrounds Ethnic affairs priority statement • we will consider training staff in areas such as The SCA recognises that its staff and the community cross-cultural awareness to improve service comprise people from culturally and linguistically delivery to people of culturally diverse diverse backgrounds who offer a variety of skills, backgrounds. abilities and perspectives. Valuing and drawing on The SCA recognises that the workforce and the this diversity enhances the SCA’s performance and community consist of people who are diverse, with its ability to work with the community. Initiatives varying skills and abilities, offering a range of undertaken in this regard in 2006–07 included: perspectives, opinions and knowledge. Valuing and drawing on this diversity enhances the performance • three SCA staff members becoming accredited of the SCA by better equipping it to work with the under the Community Language Allowance community. Scheme (CLAS) to allow them to use their community language skills in aspects of SCA work. Additional nominations are currently Complete human resources being progressed to support this program information system • implementing a new SCA Employee Assistance Program that provides greater access for all A new in-house computerised complete human SCA employees, particularly those of culturally resources information system (CHRIS) began and linguistically diverse backgrounds, has operation in July 2006. The primary focus was in the been implemented area of payroll, however, recruitment, establishment, and learning and development • ensuring SCA recruitment processes are merit modules have been developed and implemented based. Having reviewed the Filling of Vacancies during the year. The occupational health and safety procedure in 2005–06, the Filling of Temporary module is currently being developed to support the Vacancies procedure is now being reviewed with new SCA OHS Management System. A key component of the CHRIS has been the development of management reports that will support future workforce planning analysis.
KRA 06 Sydney Catchment Authority | Annual Report 2006–07 Employee self service In 2006–07, the SCA began preparing for the 167 employee self service module of CHRIS to be implemented by late 2007. The module is an intranet-based service that allows staff to access and update online information relating to conditions of employment, payments, leave planning and training history.
SCA Division industrial award Consulting with unions The SCA Joint Consultative Committee provides the forum for peak-level discussion between the SCA and the Australian Services Union (ASU), and the Association of Professional Engineers, Scientists and Managers. During the year the parties worked together to introduce revised part-time employment procedures and staff access to purchased leave provisions. Over the coming year, the SCA Award will be reviewed and updated to ensure that the organisation remains competitive in attracting and retaining staff and supporting work-life balance. The unions will continue to be involved in these initiatives.
Organisation reviews During the year, work area structures were reviewed to align with work programs, skill needs and resources to ensure the organisation was able to meet its goals and service levels. A comprehensive review was undertaken of the Dam Surveillance Section, which involved developing options for unit structure, and writing, evaluating and grading new position descriptions. Programs have begun that realign the Corporate Services and Catchment Operations and Major Projects divisions with the aim of meeting key objectives in the new SCA corporate plan. It is expected these reviews will be completed in 2007–08.
KRA 06 Sydney Catchment Authority | Annual Report 2006–07 168
Above: SCA scientists undertake water quality testing in the field using specially equipped trailers carrying mobile monitoring equipment.
Sydney Catchment Authority | Annual Report 2006–07 SCA Division 169 financial reporting
Contents Independent auditor’s report 170 Letter from the Division Head 172 Income statements 173 Statements of changes in equity 174 Balance sheet 175 Cash flow statement 176 Notes accompanying and forming 177 part of the financial statements
Sydney Catchment Authority | Annual Report 2006–07 170
Sydney Catchment Authority | Annual Report 2006–07 171
Sydney Catchment Authority | Annual Report 2006–07 SYDNEY CATCHMENT AUTHORITY DIVISION INCOME STATEMENT FOR THE PERIOD ENDED 30 JUNE 2007
2007 2006 Note $’000 $’000 172 Personnel services revenue 2 29,367 6,560
Expenses, excluding finance costs 3 (29,367) (6,560)
Operating profit before finance costs - - Profit before income tax expense - -
Income tax expense - -
Profit after related income tax expense - -
The accompanying notes form part of these financial statements
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Sydney Catchment Authority | Annual Report 2006–07 SYDNEY CATCHMENT AUTHORITY DIVISION INCOME STATEMENT FOR THE PERIOD ENDED 30 JUNE 2007
2007 2006 Note $’000 $’000 173 Personnel services revenue 2 29,367 6,560
Expenses, excluding finance costs 3 (29,367) (6,560)
Operating profit before finance costs - - Profit before income tax expense - -
Income tax expense - -
Profit after related income tax expense - -
The accompanying notes form part of these financial statements
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Sydney Catchment Authority | Annual Report 2006–07 SYDNEY CATCHMENT AUTHORITY DIVISION SYDNEY CATCHMENT AUTHORITY DIVISION STATEMENT OF CHANGES IN EQUITY BALANCE SHEET FOR THE PERIOD ENDED 30 JUNE 2007 AS AT 30 JUNE 2007
2007 2006 Accumulated Funds Total Equity Note $’000 $’000 2007 2006 2007 2006 Current assets 174 $’000 $’000 $’000 $’000 Trade and other receivables 4 11,400 12,781 Other assets 5 64 - Balance at the beginning of the Financial Year - - - - Total current assets 11,464 12,781
Profit for the year - - - - TOTAL ASSETS 11,464 12,781 Total changes in equity - - - - Current liabilities Balance at the end of the Trade and other payables 6 632 - Financial Year - - - - Provisions 7a 10,716 9,778
Total current liabilities 11,348 9,778 The accompanying notes form part of these financial statements Non current liabilities Provisions 7b 116 3,003
Total non current liabilities 116 3,003
TOTAL LIABILITIES 11,464 12,781
NET ASSETS - -
EQUITY Accumulated funds - -
TOTAL EQUITY - -
The accompanying notes form part of these financial statements
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Sydney Catchment Authority | Annual Report 2006–07 SYDNEY CATCHMENT AUTHORITY DIVISION BALANCE SHEET AS AT 30 JUNE 2007
2007 2006 Note $’000 $’000 Current assets Trade and other receivables 4 11,400 12,781 175 Other assets 5 64 -
Total current assets 11,464 12,781
TOTAL ASSETS 11,464 12,781
Current liabilities Trade and other payables 6 632 - Provisions 7a 10,716 9,778
Total current liabilities 11,348 9,778
Non current liabilities Provisions 7b 116 3,003
Total non current liabilities 116 3,003
TOTAL LIABILITIES 11,464 12,781
NET ASSETS - -
EQUITY Accumulated funds - -
TOTAL EQUITY - -
The accompanying notes form part of these financial statements
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Sydney Catchment Authority | Annual Report 2006–07 SYDNEY CATCHMENT AUTHORITY DIVISION SYDNEY CATCHMENT AUTHORITY DIVISION
CASH FLOW STATEMENT NOTES ACCOMPANYING AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2007 FOR THE PERIOD ENDED 30 JUNE 2007 2007 2006 PRINCIPAL ACTIVITIES Note $’000 $’000 Sydney Catchment Authority (SCA) is a NSW statutory body constituted under the Sydney Water CASH FLOWS FROM OPERATING ACTIVITIES Catchment Management Act 1998 (the Act). 176 Inflows Cash receipts from Sydney Catchment Authority - - SCA Division is a division of the Government Service of New South Wales and employs personnel who work exclusively for the SCA. It is considered to be a division assigned to the statutory corporation, being Outflows SCA, pursuant to Part 2 and Part 3 of Schedule 1 of the Public Sector Employment and Management Act Payments to suppliers and employees - - 2002 (PSEMA).
The SCA Division is regarded as a special purpose entity as it was established specifically to provide Net cash provided by operating activities - - personnel services exclusively to SCA to enable the SCA to exercise its functions. It is subject to the control of the SCA pursuant to the operation of the PSEMA and accordingly will be consolidated by the SCA.
Net increase/ (decrease) in cash held - - SCA Division is regarded as a reporting entity and is consequently required to produce a separate financial Opening cash and cash equivalents - - report in accordance with applicable Accounting Standards.
SCA Division undertakes no activities other than the provision of personnel services to SCA. CLOSING CASH AND CASH EQUIVALENTS - -
The accompanying notes form part of these financial statements
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Sydney Catchment Authority | Annual Report 2006–07 SYDNEY CATCHMENT AUTHORITY DIVISION NOTES ACCOMPANYING AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2007
PRINCIPAL ACTIVITIES Sydney Catchment Authority (SCA) is a NSW statutory body constituted under the Sydney Water Catchment Management Act 1998 (the Act). 177 SCA Division is a division of the Government Service of New South Wales and employs personnel who work exclusively for the SCA. It is considered to be a division assigned to the statutory corporation, being SCA, pursuant to Part 2 and Part 3 of Schedule 1 of the Public Sector Employment and Management Act 2002 (PSEMA).
The SCA Division is regarded as a special purpose entity as it was established specifically to provide personnel services exclusively to SCA to enable the SCA to exercise its functions. It is subject to the control of the SCA pursuant to the operation of the PSEMA and accordingly will be consolidated by the SCA.
SCA Division is regarded as a reporting entity and is consequently required to produce a separate financial report in accordance with applicable Accounting Standards.
SCA Division undertakes no activities other than the provision of personnel services to SCA.
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
a) Reporting Entity d) Employee Benefits (Continued) (i) Wages and salaries, compensated absences and on costs The SCA Division is a special purpose entity which is consolidated into the SCA. There are no entities under its control. These financial statements have been authorised for issue by the Chief Executive on 19 October 2007 and endorsed by the Board. The SCA Division has long-term annual leave benefits and will measure these benefits at present value in accordance with the requirements of AASB 119 Employee Benefits. Market yields on government bonds of 6.26% (2006: 5.88%) are used to discount long-term annual leave. 178 b) Compliance with IFRS Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater than the entitlements accrued in the future. The SCA Division’s financial statements are a general financial report which has been prepared on an accrual basis and in accordance with: The outstanding amounts of payroll tax, workers’ compensation insurance premiums and superannuation, which are consequential to employment, are recognised as liabilities and expenses x Australian Accounting Standards and other authoritative pronouncements of the Australian where the employee benefits to which they relate have been recognised. Accounting Standards Board (AASB); and x the requirements of the Public Finance and Audit Act 1983 as amended and the Public Finance and Audit Regulation, 2005. (ii) Long service leave Where there are inconsistencies between the above requirements the legislative provisions have prevailed. The SCA Division’s net obligation in respect of long-term service benefits, other than pension plans, is the amount of future benefit that employees have earned in return for their service in the current and c) Basis of Preparation prior periods. The obligation is calculated using the projected unit credit method and is discounted to its present value and the fair value of any related assets is deducted. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of services. Australian Accounting Standards include Australian equivalents to International Financial Reporting The discount rate of 6.26% (2006: 5.88%) is the yield at the balance sheet date on Commonwealth Standards (AEIFRS). Compliance with AEIFRS ensures that the consolidated financial statements and government bonds that have maturity dates approximating to the terms of the SCA Division’s notes of the SCA comply with International Financial Reporting Standards IFRS and interpretations adopted obligations. by the International Accounting Standards Board. This obligation includes applicable payroll tax workers compensation insurance premiums and In the absence of a specific Accounting Standard, or other authoritative pronouncement of the AASB the superannuation, which are consequential to employment, are recognised as liabilities and expenses hierarchy of other pronouncements as outlined in AASB 108 Accounting Policies, Changes in Accounting where the employee benefits to which they relate have been recognised. Estimates and Errors is considered. Property, plant and equipment, assets (or disposal groups) held for sale and financial assets held for trading and available for sale are measured at fair value. Other financial statements items are prepared in accordance with the historical cost convention. The accounting policies (iii) Superannuation have been consistently applied, except where stated. The SCA’s net obligation in respect of defined benefit pension plans is calculated separately for each The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting plan by estimating the amount of future benefit that employees have earned in return for their service estimates are recognised in the period in which the estimate is revised if the revision affects only that in the current and prior periods; that benefit is discounted to determine its present value, and the fair period, or in the period of the revision and future periods if the revision affects both current and future value of any plan assets is deducted. periods. The discount rate is the yield at the balance sheet date on Commonwealth government bonds that Judgements, key assumptions and estimations that management has made are disclosed in the relevant have maturity dates approximating to the terms of the SCA’s obligations. notes to the financial statements. Where the present value of the defined benefit obligation in respect of a scheme exceeds the fair All amounts are rounded to the nearest one thousand dollars and are presented in Australian currency. value of the scheme’s assets, a liability for the difference is recognised in the Balance Sheet. Where the fair value of a scheme’s assets exceeds the present value of the defined benefit obligation for that scheme, an asset is recognised in the Balance Sheet. d) Employee Benefits Actuarial gains and losses are recognised in the Income Statement in the year in which they occur. Liabilities for wages & salaries (including non monetary benefits) and annual leave that are expected When the calculation results in a benefit to the SCA, the recognised asset is limited to the net total of to be settled wholly within 12 months of the reporting date are recognised and measured in respect of any unrecognised past service costs and the present value of any future refunds from the plan or employees’ services up to the reporting date at undiscounted amounts based on the amounts reductions in future contributions to the plan. expected to be paid when the liabilities are settled. When the benefits of a plan are improved, the portion of the increased benefit relating to past service by employees is recognised as an expense in the income statement on a straight-line basis over the average period until the benefits become vested. To the extent that the benefits vest immediately, the expense is recognised immediately in the income statement.
The determination of the present value of defined benefit obligations was performed by an independent actuary using the Projected unit credit method. This valuation requires judgement and estimation of a number of assumptions. These assumptions have been set out in Note 9.
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) d) Employee Benefits (Continued)
(i) Wages and salaries, compensated absences and on costs
The SCA Division has long-term annual leave benefits and will measure these benefits at present value in accordance with the requirements of AASB 119 Employee Benefits. Market yields on government bonds of 6.26% (2006: 5.88%) are used to discount long-term annual leave. 179 Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater than the entitlements accrued in the future.
The outstanding amounts of payroll tax, workers’ compensation insurance premiums and superannuation, which are consequential to employment, are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised.
(ii) Long service leave
The SCA Division’s net obligation in respect of long-term service benefits, other than pension plans, is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using the projected unit credit method and is discounted to its present value and the fair value of any related assets is deducted. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of services. The discount rate of 6.26% (2006: 5.88%) is the yield at the balance sheet date on Commonwealth government bonds that have maturity dates approximating to the terms of the SCA Division’s obligations.
This obligation includes applicable payroll tax workers compensation insurance premiums and superannuation, which are consequential to employment, are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised.
(iii) Superannuation
The SCA’s net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.
The discount rate is the yield at the balance sheet date on Commonwealth government bonds that have maturity dates approximating to the terms of the SCA’s obligations.
Where the present value of the defined benefit obligation in respect of a scheme exceeds the fair value of the scheme’s assets, a liability for the difference is recognised in the Balance Sheet. Where the fair value of a scheme’s assets exceeds the present value of the defined benefit obligation for that scheme, an asset is recognised in the Balance Sheet.
Actuarial gains and losses are recognised in the Income Statement in the year in which they occur. When the calculation results in a benefit to the SCA, the recognised asset is limited to the net total of any unrecognised past service costs and the present value of any future refunds from the plan or reductions in future contributions to the plan.
When the benefits of a plan are improved, the portion of the increased benefit relating to past service by employees is recognised as an expense in the income statement on a straight-line basis over the average period until the benefits become vested. To the extent that the benefits vest immediately, the expense is recognised immediately in the income statement.
The determination of the present value of defined benefit obligations was performed by an independent actuary using the Projected unit credit method. This valuation requires judgement and estimation of a number of assumptions. These assumptions have been set out in Note 9.
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) i) Taxation (continued)
e) Borrowing Costs x is the reporting entity for Payroll Tax purposes. Borrowing costs are recognised as expenses in the period in which they are incurred, in accordance with Treasury’s mandate to general government sector agencies. The SCA Division has been grouped with the Department of Environment and Conservation for the purposes of Fringe Benefits Tax as required by Treasury Circular TC 06/07. The SCA Division is required 180 to assess its FBT obligations in accordance with the directions issued by NSW Treasury from time to time. f) Financial Assets
Financial instruments held for trading are classified as current assets and are stated at fair value, with any j) Accounting for Goods and Services Tax resultant gain or loss recognised in the income statement. The SCA Division held no such assets during the financial year. The SCA Division has not designated any other financial assets or liabilities as measured at SCA Division has been grouped with SCA for Goods and Services Tax (GST) as allowed under the A New fair value through profit or loss. Tax System (Goods and Services Tax) Act 1999 for controlled entities. Accordingly, no GST is recognised on revenues earned. Non employee costs from third parties are recognised net of GST, except where the Financial instruments held by the SCA Division comprise receivables from SCA. amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In such cases, the GST is recognised as part of the acquisition of an asset or as part of an item of expense. Accrued (i) Receivables receivables and payables are stated inclusive of GST.
Receivables are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at amortised cost using the effective interest method, less an allowance for k) Accounting estimates and judgments any impairment of receivables. Short term receivables with no stated interest rate are measured at the original invoice amount where the effect of discounting is immaterial. An allowance for impairment of The preparation of a financial report in conformity with Australian Accounting Standards requires receivables is established when there is objective evidence that the SCA Division will not be able to management to make judgements, estimates and assumptions that affect the application of policies and collect all amounts due. The amount of the allowance is the difference between the asset’s carrying reported amounts of assets and liabilities, income and expenses. The estimates and associated amount and the present value of estimated future cash flows, discounted at the effective interest rate. assumptions are based on historical experience and various other factors that are believed to be Bad debts are written off as incurred. reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may g) Revenue recognition differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the Revenue is measured at the fair value of the consideration or contribution received or receivable. revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. (i) Personnel Services Revenue Judgements made by management in the application of Australian Accounting Standards that have All revenue received by SCA Division is in relation to personnel services which have been provided to significant effect on the financial report and estimates with a significant risk of material adjustment in the SCA. These are charged to recover all personnel costs and include all salary, annual leave, sick leave, next year are discussed below. long service leave, superannuation, on-costs and all employee tax costs. (i) Key sources of estimation uncertainty The revenue is recognised on an accruals basis as costs are incurred. Superannuation plan assumptions h) Payables The SCA Division has used actuarial assumptions in the determination of its defined benefits obligation in relation to the superannuation plans for which it accounts on behalf of the Crown. The assumptions Liabilities are recognised for amounts due to be paid in the future for goods and services received, whether as provided by the actuary are set out in Note 9. or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out by Treasury. If trade terms are not specified, payment is made no later than the end of the month (ii) Critical accounting judgements in applying the accounting policies following the month in which an invoice or a statement is received. Government guidelines allow for the Chief Executive or delegate to award interest for late payment. Determination of for profit or not for profit SCA Division management has applied its judgement in assessing whether it meets the definition of a i) Taxation for profit or not for profit entity for the purposes of the accounting standards. SCA Division has concluded that the business is a not for profit entity. By virtue of Treasury Circulars TC 06/13 and TC 06/17, the SCA Division:
x is not permitted to mark up the employment services provided to SCA and therefore no income tax liability is expected to accrue against the SCA Division. Accordingly no income tax liability exists in relation to SCA Division nor have any deferred tax balances been recognised.
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) i) Taxation (continued)
x is the reporting entity for Payroll Tax purposes.
The SCA Division has been grouped with the Department of Environment and Conservation for the purposes of Fringe Benefits Tax as required by Treasury Circular TC 06/07. The SCA Division is required to assess its FBT obligations in accordance with the directions issued by NSW Treasury from time to time. 181 j) Accounting for Goods and Services Tax
SCA Division has been grouped with SCA for Goods and Services Tax (GST) as allowed under the A New Tax System (Goods and Services Tax) Act 1999 for controlled entities. Accordingly, no GST is recognised on revenues earned. Non employee costs from third parties are recognised net of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In such cases, the GST is recognised as part of the acquisition of an asset or as part of an item of expense. Accrued receivables and payables are stated inclusive of GST. k) Accounting estimates and judgments
The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements made by management in the application of Australian Accounting Standards that have significant effect on the financial report and estimates with a significant risk of material adjustment in the next year are discussed below.
(i) Key sources of estimation uncertainty
Superannuation plan assumptions The SCA Division has used actuarial assumptions in the determination of its defined benefits obligation in relation to the superannuation plans for which it accounts on behalf of the Crown. The assumptions as provided by the actuary are set out in Note 9.
(ii) Critical accounting judgements in applying the accounting policies
Determination of for profit or not for profit SCA Division management has applied its judgement in assessing whether it meets the definition of a for profit or not for profit entity for the purposes of the accounting standards. SCA Division has concluded that the business is a not for profit entity.
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Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
k) Accounting estimates and judgments (continued) l) New standards and interpretations not early adopted (continued)
(ii) Critical accounting judgements in applying the accounting policies (continued) x AASB2007-6 Amendments to Australian Accounting Standards arising from AASB 123 making consequential amendments to AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 Determination of provisions and Interpretations 1 & 12. AASB2007-6 is applicable from 1 January 2009 (SCA financial year ending 30 June 2010). Accounting judgement has been applied in the determination of the provision for employee entitlements 182 and other provisions. Judgement has been applied by management in estimating the likely loss and/or x AASB2007-7 Amendments to Australian Accounting Standards AASB 1, AASB 2, AASB 4, AASB obligation in relation to each provision. 5, AASB 107 & AASB 128. AASB2007-7 is applicable from 1 July 2007 (SCA financial year ending 30 June 2008). Judgment has been based on past experience adjusted for current circumstances. The accounting x Interpretation 11 AASB 2 Share-based Payment – Group and Treasury Share Transactions which policies associated with the measurement of these balances are set out in the significant accounting is not expected to impact SCA’s financial report. policies. SCA Division is finalising its analysis of the impacts of each new standard in preparation for their respective l) New standards and interpretations not early adopted first time application date. The following standards and amendments were available for early adoption but have not been applied in these financial statements: x AASB 2005-10 Amendments to Australian Accounting Standards (September 2005) makes consequential amendments to AASB 132 Financial Instruments: Disclosures and Presentation, AASB 101 Presentation of Financial Statements, AASB 114 Segment Reporting, AASB 117 Leases, AASB 133 Earnings per Share, AASB 139 Financial Instruments: Recognition and Measurement, AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards, AASB 4 Insurance Contracts, AASB 1023 General Insurance Contracts and AASB 1038 Life Insurance Contracts, arising from the release of AASB 7. AASB 2005-10 is applicable for annual reporting periods beginning on or after 1 January 2007. (SCA financial year ending 30 June 2008) x AASB 8 Operating Segments replaces the presentation requirements of segment reporting in AASB 114 Segment Reporting. AASB 8 is applicable for annual reporting periods beginning on or after 1 January 2009 (SCA financial year ending 30 June 2010) x AASB101 Presentation of Financial Statements (October 2006) makes various disclosure amendments. AASB101 (revised October 2006) is applicable from 1 July 2007 (SCA financial year ending 30 June 2008). x AASB 2007-1 Amendments to Australian Accounting Standards arising from AASB Interpretation II amends AASB 2 Share-based Payments to insert the transitional provisions of IFRS 2, previously contained in AASB 1 First-time Adoption of Australian Equivalents to international Financial; Reporting Standards. AASB 2007-1 is applicable for annual reporting periods beginning on or after 1 March 2007 (SCA financial year ending 30 June 2008). AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8 makes amendments to certain Standards and must be adopted in conjunction with AASB 8 Operating Segments. AASB 2007-3 is applicable for annual reporting periods beginning on or after 1 January 2009. (SCA financial year ending 30 June 2010) x AASB 2007-4 Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments in May 2007. AASB 2007-4 makes amendments to a number of Australian Accounting Standards to introduce various accounting policy options, delete various disclosures presently required, and to make a number of editorial amendments. AASB 2007-4 is applicable to annual reporting periods beginning on or after 1 July 2007 and must therefore be applied in the financial statements for the year ending 30 June 2008.
Page 10 of 23 Page 11 of 23
Sydney Catchment Authority | Annual Report 2006–07 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (Continued) l) New standards and interpretations not early adopted (continued)
x AASB2007-6 Amendments to Australian Accounting Standards arising from AASB 123 making consequential amendments to AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12. AASB2007-6 is applicable from 1 January 2009 (SCA financial year ending 30 June 2010). x AASB2007-7 Amendments to Australian Accounting Standards AASB 1, AASB 2, AASB 4, AASB 183 5, AASB 107 & AASB 128. AASB2007-7 is applicable from 1 July 2007 (SCA financial year ending 30 June 2008). x Interpretation 11 AASB 2 Share-based Payment – Group and Treasury Share Transactions which is not expected to impact SCA’s financial report.
SCA Division is finalising its analysis of the impacts of each new standard in preparation for their respective first time application date.
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Sydney Catchment Authority | Annual Report 2006–07 7. PROVISIONS, EXCLUDING INCOME TAX LIABILITIES 2. REVENUES 2007 2006 2007 2006 $’000 $’000 $’000 $’000 a) Current provisions Provisions for employment taxes 186 181 Personnel Services Revenue 29,367 6,560 Provisions for employee benefits – annual leave 3,941 3,599 Personnel Services Revenue 29,367 6,560 Provision for employee benefits – long service leave 6,589 5,998 184 Current Provisions, excluding tax liabilities 10,716 9,778 3. EXPENSES EXCLUDING FINANCE COSTS b) Non-current provisions a) Employee Related Expenses Unfunded superannuation liability (Note 9) 116 3,003 Salary and wages (including recreation leave and redundancies) 26,898 7,034 Non current Provisions, excluding tax liabilities 116 3,003 Superannuation (including actuarial gains on defined benefit schemes) (743) (1,423) Long service leave 862 269 c) Aggregate employee benefits and related on costs Workers compensation insurance 497 193 Provisions – Current 10,716 9,778 Payroll tax and fringe benefits tax 1,853 487 Provisions – Non-current 116 3,003 Employee Related Expenses 29,367 6,560 Accrued salaries, wages and on costs (Note 6) 632 - Prepaid salaries, wages and on costs (Note 4) (408) Expenses from Ordinary Activities excluding Finance Costs 29,367 6,560 Aggregate employee benefits and related on costs 11,464 12,373
1. Auditors remuneration in relation to SCA Division is borne by SCA. In respect of annual leave classified as Current provisions, the SCA expects to make payments totalling $1,786,223 (2006: $1,639,776) in the next reporting period.
4. TRADE AND OTHER RECEIVABLES The employment tax provision relates to estimated fringe benefits tax costs relating to activities that have taken place during the current period. Other debtors 2 1
Receivables due from parent entity 11,260 12,316 8. STATEMENT OF OPERATIONS OF SEGMENTS Prepaid workers’ compensation 138 56 The SCA Division’s operation exclusively relates to the provision of personnel expenses to SCA. Prepaid wages and salaries - 408 Receivables 11,400 12,781 9. SUPERANNUATION
5. OTHER ASSETS Accounting policy
Superannuation asset (Note 9, 7(b)) 64 - Actuarial gains and losses are recognised immediately in profit and loss in the year in which they occur. Other Assets 64 - Fund information 6. TRADE AND OTHER PAYABLES The Pooled Fund holds in trust the investments of the closed NSW public sector superannuation schemes: Accrued salaries 632 - State Authorities Superannuation Scheme (SASS) Trade & other payables 632 - State Superannuation Scheme (SSS) State Authorities Non-contributory Superannuation Scheme (SANCS).
These schemes are all defined benefit schemes – at least a component of the final benefit is derived from a multiple of member salary and years of membership.
All the Schemes are now closed to new members. SCA contributes to an accumulated fund, First State Superannuation Fund, for all employees joining the SCA after the above plans were closed to new members,
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Sydney Catchment Authority | Annual Report 2006–07 7. PROVISIONS, EXCLUDING INCOME TAX LIABILITIES
2007 2006 $’000 $’000 a) Current provisions Provisions for employment taxes 186 181 Provisions for employee benefits – annual leave 3,941 3,599 Provision for employee benefits – long service leave 6,589 5,998 185 Current Provisions, excluding tax liabilities 10,716 9,778
b) Non-current provisions Unfunded superannuation liability (Note 9) 116 3,003 Non current Provisions, excluding tax liabilities 116 3,003
c) Aggregate employee benefits and related on costs Provisions – Current 10,716 9,778 Provisions – Non-current 116 3,003 Accrued salaries, wages and on costs (Note 6) 632 - Prepaid salaries, wages and on costs (Note 4) (408) Aggregate employee benefits and related on costs 11,464 12,373
1. In respect of annual leave classified as Current provisions, the SCA expects to make payments totalling $1,786,223 (2006: $1,639,776) in the next reporting period.
The employment tax provision relates to estimated fringe benefits tax costs relating to activities that have taken place during the current period.
8. STATEMENT OF OPERATIONS OF SEGMENTS
The SCA Division’s operation exclusively relates to the provision of personnel expenses to SCA.
9. SUPERANNUATION
Accounting policy
Actuarial gains and losses are recognised immediately in profit and loss in the year in which they occur.
Fund information
The Pooled Fund holds in trust the investments of the closed NSW public sector superannuation schemes: State Authorities Superannuation Scheme (SASS) State Superannuation Scheme (SSS) State Authorities Non-contributory Superannuation Scheme (SANCS).
These schemes are all defined benefit schemes – at least a component of the final benefit is derived from a multiple of member salary and years of membership.
All the Schemes are now closed to new members. SCA contributes to an accumulated fund, First State Superannuation Fund, for all employees joining the SCA after the above plans were closed to new members,
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Sydney Catchment Authority | Annual Report 2006–07 unless otherwise elected by those employees. 9. SUPERANNUATION (continued)
9. SUPERANNUATION (continued) Reconciliation of the assets and liabilities recognised in the balance sheet
2007: SASS SANCS SSS TOTAL Financial Financial Financial Financial Reconciliation of the present value of the defined benefit obligation Year to 30 Year to 30 Year to 30 Year to 30 June 2007 June 2007 June 2007 June 2007 SASS SANCS SSS TOTAL $’000 $’000 $’000 $’000 Financial Financial Financial Financial Present value of partly funded defined benefits 186 13,244 2,754 26,428 42,426 Year to 30 Year to 30 Year to 30 Year to 30 obligations at end of year June 2007 June 2007 June 2007 June 2007 $’000 $’000 $’000 $’000 Fair value of fund assets at end of year (13,185) (2,818) (26,371) (42,374) Present value of partly funded defined benefit 11,648 2,389 24,964 39,001 Net (liability)/asset recognised in balance obligations at beginning of the year 59 (64) 57 52 sheet at end of year
Current service costs 416 142 306 864 Expense recognised in income statement Interest cost 675 137 1,464 2,276 SASS SANCS SSS TOTAL 227 - 239 466 Contributions by fund participants Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 779 167 276 1,222 Actuarial (gains)/losses June 2007 June 2007 June 2007 June 2007 $’000 $’000 $’000 $’000 Benefits paid (501) (82) (821) (1,404) Current service cost 415 142 306 863 Present value of partly funded defined 13,244 2,753 26,428 42,425 benefit obligations at end of the year Interest cost 675 137 1,464 2,276
Expected return on fund assets (843) (176) (1,715) (2,734) Reconciliation of the fair value of fund assets Actuarial losses/(gains) recognised in year (316) 5 (1,766) (2,077) SASS SANCS SSS TOTAL Expense/(income) recognised (69) 108 (1,711) (1,672) Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 June 2007 June 2007 June 2007 June 2007 $’000 $’000 $’000 $’000 Funds assets Fair value of fund assets at beginning of the 11,095 2,296 22,607 35,998 The percentage invested in each asset class at the balance sheet date: year
Expected return on fund assets 843 176 1,715 2,734 30 June 2007 Australian equities 33.6% Actuarial gains/(losses) 1,095 162 2,043 3,300 Overseas equities 26.5% Employer contributions 425 265 588 1,278 Australian fixed interest securities 6.8% Contributions by Fund participants 228 - 239 467 Overseas fixed interest securities 6.4% Benefits paid (501) (82) (821) (1,404) Property 10.1%
Fair value of Fund assets at end of the year 13,185 2,817 26,371 42,373 Cash 9.8% Other 6.8%
Fair value of Fund assets
All Fund assets are invested by STC at arm’s length through independent fund managers.
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Sydney Catchment Authority | Annual Report 2006–07 9. SUPERANNUATION (continued)
Reconciliation of the assets and liabilities recognised in the balance sheet
SASS SANCS SSS TOTAL Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 June 2007 June 2007 June 2007 June 2007 $’000 $’000 $’000 $’000 Present value of partly funded defined benefits 13,244 2,754 26,428 42,426 187 obligations at end of year Fair value of fund assets at end of year (13,185) (2,818) (26,371) (42,374)
Net (liability)/asset recognised in balance 59 (64) 57 52 sheet at end of year
Expense recognised in income statement
SASS SANCS SSS TOTAL Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 June 2007 June 2007 June 2007 June 2007 $’000 $’000 $’000 $’000 Current service cost 415 142 306 863
Interest cost 675 137 1,464 2,276
Expected return on fund assets (843) (176) (1,715) (2,734)
Actuarial losses/(gains) recognised in year (316) 5 (1,766) (2,077)
Expense/(income) recognised (69) 108 (1,711) (1,672)
Funds assets
The percentage invested in each asset class at the balance sheet date:
30 June 2007
Australian equities 33.6%
Overseas equities 26.5%
Australian fixed interest securities 6.8%
Overseas fixed interest securities 6.4%
Property 10.1%
Cash 9.8%
Other 6.8%
Fair value of Fund assets
All Fund assets are invested by STC at arm’s length through independent fund managers.
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Sydney Catchment Authority | Annual Report 2006–07 9. SUPERANNUATION (continued) 9. SUPERANNUATION (continued)
Expected rate of return on Fund assets b) Contribution recommendations
The expected return on assets assumption is determined by weighting the expected long-term return for Recommended contribution rates for the entity are: each asset class by the target allocation of assets to each class. The returns used for each class are net of investment tax and investment fees. SASS SANCS SSS
Actual Return on Fund Assets 188 multiple of % member multiple of member salary member SASS SANCS SSS TOTAL contributions contributions Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 1.90 2.50 0.93 June 2007 June 2007 June 2007 June 2007 $’000 $’000 $’000 $’000 c) Funding method Actual return on Fund assets 1,633 388 3,244 5,265 The method used to determine the employer contribution recommendations at the last actuarial review was the Aggregate Funding method. The method adopted affects the timing of the cost to the employer. Valuation method and principal actuarial assumptions at the balance sheet date Under the Aggregate Funding method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit payments to existing members, taking into account the current value of a) Valuation Method assets and future contributions.
The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined d) Economic assumptions benefit obligations and the related current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final The economic assumptions adopted for the last actuarial review of the Fund were: obligation. Weighted-Average Assumptions b) Economic Assumptions Expected rate of return on Fund assets backing current pension 7.7% pa 30 June 2007 liabilities
Salary increase rate (excluding promotional increases) 4.0% pa to June 2008; Expected rate of return on Fund assets backing other liabilities 7.0% pa 3.5% pa thereafter Expected salary increase rate 4.0% pa Rate of CPI increase 2.5% pa Expected rate of CPI increase 2.5% pa Expected rate of return on assets backing current pension liabilities 7.6% pa
Expected rate of return on assets backing other liabilities 7.6% pa Nature of asset/liability Discount rate 6.4% pa If a surplus exists in the employer’s interest in the Fund, the employer may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary.
Funding arrangements for employer contributions Where a deficiency exists, the employer is responsible for any difference between the employer’s share of fund assets and the defined benefit obligation. a) Surplus/deficit
The following is a summary of the 30 June 2007 financial position of the Fund calculated in accordance with AAS 25 “Financial Reporting by Superannuation Plans”:
SASS SANCS SSS Total 30-Jun-07 30-Jun-07 30-Jun-07 30-Jun-07 $’000 $’000 $’000 $’000 Accrued benefits 13,064 2,724 23,689 39,477 Net market value of Fund assets (13,185) (2,817) (26,371) (42,373) Net (surplus)/deficit (121) (93) (2,682) (2,896)
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Sydney Catchment Authority | Annual Report 2006–07 9. SUPERANNUATION (continued) 9. SUPERANNUATION (continued)
Expected rate of return on Fund assets b) Contribution recommendations
The expected return on assets assumption is determined by weighting the expected long-term return for Recommended contribution rates for the entity are: each asset class by the target allocation of assets to each class. The returns used for each class are net of investment tax and investment fees. SASS SANCS SSS
Actual Return on Fund Assets multiple of % member multiple of 189 member salary member SASS SANCS SSS TOTAL contributions contributions Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 1.90 2.50 0.93 June 2007 June 2007 June 2007 June 2007 $’000 $’000 $’000 $’000 c) Funding method Actual return on Fund assets 1,633 388 3,244 5,265 The method used to determine the employer contribution recommendations at the last actuarial review was the Aggregate Funding method. The method adopted affects the timing of the cost to the employer. Valuation method and principal actuarial assumptions at the balance sheet date Under the Aggregate Funding method, the employer contribution rate is determined so that sufficient assets will be available to meet benefit payments to existing members, taking into account the current value of a) Valuation Method assets and future contributions.
The Projected Unit Credit (PUC) valuation method was used to determine the present value of the defined d) Economic assumptions benefit obligations and the related current service costs. This method sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final The economic assumptions adopted for the last actuarial review of the Fund were: obligation. Weighted-Average Assumptions b) Economic Assumptions Expected rate of return on Fund assets backing current pension 7.7% pa 30 June 2007 liabilities
Salary increase rate (excluding promotional increases) 4.0% pa to June 2008; Expected rate of return on Fund assets backing other liabilities 7.0% pa 3.5% pa thereafter Expected salary increase rate 4.0% pa Rate of CPI increase 2.5% pa Expected rate of CPI increase 2.5% pa Expected rate of return on assets backing current pension liabilities 7.6% pa
Expected rate of return on assets backing other liabilities 7.6% pa Nature of asset/liability Discount rate 6.4% pa If a surplus exists in the employer’s interest in the Fund, the employer may be able to take advantage of it in the form of a reduction in the required contribution rate, depending on the advice of the Fund’s actuary.
Funding arrangements for employer contributions Where a deficiency exists, the employer is responsible for any difference between the employer’s share of fund assets and the defined benefit obligation. a) Surplus/deficit
The following is a summary of the 30 June 2007 financial position of the Fund calculated in accordance with AAS 25 “Financial Reporting by Superannuation Plans”:
SASS SANCS SSS Total 30-Jun-07 30-Jun-07 30-Jun-07 30-Jun-07 $’000 $’000 $’000 $’000 Accrued benefits 13,064 2,724 23,689 39,477 Net market value of Fund assets (13,185) (2,817) (26,371) (42,373) Net (surplus)/deficit (121) (93) (2,682) (2,896)
Page 16 of 23 Page 17 of 23
Sydney Catchment Authority | Annual Report 2006–07 9. SUPERANNUATION (continued) 9. SUPERANNUATION (continued)
Historical information Movement in net liability/asset recognised in the balance sheet
SASS SANCS SSS TOTAL SASS SANCS SSS TOTAL Financial Financial Financial Financial Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 Year to 30 Year to 30 Year to 30 Year to 30 June 2006 June 2006 June 2006 June 2006 June 2007 June 2007 June 2007 June 2007 $ $ $ $ $’000 $’000 ‘$000 $’000 190 Balance transferred from SCA at start of period (45) 86 4,964 5,005 Present value of defined benefits obligations 13,244 2,753 26,428 42,425 Net expense recognised in the Income Fair value of Fund assets (13,185) (2,817) (26,371) (42,373) (154) (89) (1,505) (1,748) Statement (Surplus)/Deficit in Fund 59 (64) 57 52 Less: Contributions 753 96 (1,103) (254)
Experience adjustments – Fund liabilities 779 167 276 1,222 Net (asset)/liability to be disclosed in balance 554 93 2,356 3,003 sheet Experience adjustments – Fund assets (1,095) (162) (2,043) (3,300)
Total expense recognised in Income Statement Expected contributions SASS SANCS SSS TOTAL SASS SANCS SSS TOTAL Financial Financial Year Financial Financial $’000 $’000 ‘$000 $’000 Year to 30 to 30 June Year to 30 Year to 30 June 2006 2006 June 2006 June 2006 Expected employer contributions 432 160 222 814 $ $ $ $ Current service cost 138 48 125 311
2006: Interest on obligation 210 40 476 726
Reconciliation of the assets and liabilities recognised in the balance sheet Expected return on plan assets (271) (57) (421) (749) SASS SANCS SSS TOTAL Net actuarial losses/(gains) recognised in year (231) (120) (1,685) (2,036) Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 Total included in “employee benefits June 2006 June 2006 June 2006 June 2006 (154) (89) (1,505) (1,748) expense” $ $ $ $ Present value of defined benefits obligations 11,648 2,389 24,964 39,001 Actual Return on Plan Assets Fair value of plan assets (11,095) (2,296) (22,607) (35,998) SASS SANCS SSS TOTAL Unrecognised past service costs 0 0 0 0 Financial Year Financial Financial Financial to 30 June Year to 30 Year to 30 Year to 30 Net (asset)/liability to be disclosed in 2006 June 2006 June 2006 June 2006 balance sheet 553 93 2,357 3,003 $ $ $ $ Actual return on plan assets 457 104 837 1,398
The SCA's gross superannuation liability for employees in the above three schemes as at 30 June 2006 was calculated using the assumptions with regard to rates of mortality, resignation, retirement and other demographics as those to be used for the 2005 triennial valuation.
The calculations of SSS, SASS and SANCS liabilities is based on the requirements of AASB 119 Employee Benefits. The financial assumptions that have been applied for the calculations are:
Page 18 of 23 Page 19 of 23
Sydney Catchment Authority | Annual Report 2006–07 9. SUPERANNUATION (continued)
Movement in net liability/asset recognised in the balance sheet
SASS SANCS SSS TOTAL Financial Financial Financial Financial Year to 30 Year to 30 Year to 30 Year to 30 June 2006 June 2006 June 2006 June 2006 $ $ $ $ Balance transferred from SCA at start of period (45) 86 4,964 5,005 191
Net expense recognised in the Income (154) (89) (1,505) (1,748) Statement
Less: Contributions 753 96 (1,103) (254)
Net (asset)/liability to be disclosed in balance 554 93 2,356 3,003 sheet
Total expense recognised in Income Statement
SASS SANCS SSS TOTAL Financial Financial Year Financial Financial Year to 30 to 30 June Year to 30 Year to 30 June 2006 2006 June 2006 June 2006 $ $ $ $ Current service cost 138 48 125 311
Interest on obligation 210 40 476 726
Expected return on plan assets (271) (57) (421) (749)
Net actuarial losses/(gains) recognised in year (231) (120) (1,685) (2,036)
Total included in “employee benefits (154) (89) (1,505) (1,748) expense”
Actual Return on Plan Assets
SASS SANCS SSS TOTAL Financial Year Financial Financial Financial to 30 June Year to 30 Year to 30 Year to 30 2006 June 2006 June 2006 June 2006 $ $ $ $ Actual return on plan assets 457 104 837 1,398
The SCA's gross superannuation liability for employees in the above three schemes as at 30 June 2006 was calculated using the assumptions with regard to rates of mortality, resignation, retirement and other demographics as those to be used for the 2005 triennial valuation.
The calculations of SSS, SASS and SANCS liabilities is based on the requirements of AASB 119 Employee Benefits. The financial assumptions that have been applied for the calculations are:
Page 19 of 23
Sydney Catchment Authority | Annual Report 2006–07 9. SUPERANNUATION (continued) 12. RECONCILIATION OF SURPLUS FROM ORDINARY ACTIVITIES AFTER INCOME TAX TO NET CASH PROVIDED BY OPERATING ACTIVITIES 2006 2007 & thereafter 2007 2006 Discount rate at 30 June 5.9% 5.9% $’000 $’000
Expected return on plan assets at 30 June 7.6% 7.6% Cash and cash equivalents Expected salary increases 4.0% 4.0%* Cash - - 192 - - Expected rate of CPI increase 2.5% 2.5%
2007 2006 *2009 and thereafter, 3.5%. $’000 $’000 Arrangements for employer contributions for funding Operating Surplus after Income Tax - -
The following is a summary of the 30 June 2006 financial position of the Fund as determined in accordance with AAS25. The measurement for the purposes of AAS25 below and the AASB119 results in different Add/(Subtract): Net Movement in assets and liabilities applicable to values for accrued benefits due to AASB119 ascribing a different discount rate for accounting measurement operating activities of the defined benefit obligation. Unfunded superannuation 2,951 (3,003) Suppliers and employees (1,570) (9,778) SASS SANCS SSS Total Receivables (1,381) 12,781 30-Jun-06 30-Jun-06 30-Jun-06 30-Jun-06 $ $ $ $ Net Cash provided by Operating Activities - - Accrued benefits 11,122 2,248 20,529 33,899 Net market value of Fund assets (11,095) (2,296) (22,607) (35,998) SCA Division does not operate a bank account. All cash related transactions have been paid for or received by SCA and charged to SCA Division using the intercompany receivable account in Note 4. Net (surplus)/deficit 27 (48) (2,078) (2,099)
13. FINANCIAL INSTRUMENTS Recommended contribution rates for the entity are: The SCA Division’s principal financial instruments are outlined below. These financial instruments arise SASS SANCS SSS directly from SCA Division’s operations or are required to finance SCA Division’s operations. SCA Division does not enter into or trade financial instruments for speculative purposes. SCA Division does not use multiple of % member multiple of financial derivatives. member salary member contributions contributions a) Interest Rate Risk
1.90 2.50 0.93 Interest rate risk is the risk that the value of the financial instrument will fluctuate due to changes in market interest rates. The SCA Division is not exposed to any interest rate risk. Financial assets comprise non interest bearing receivables and financial liabilities comprise non interest bearing trade creditors and The method used to determine the employer contribution recommendations at the last actuarial review was payables. the Aggregate Funding method. The method adopted affects the timing of the cost to the employer. Under the Aggregate Funding method, the employer contribution rate is determined so that sufficient assets b) Credit Risk will be available to meet benefit payments to existing members, taking into account the current value of assets and future contributions. Credit risk is the risk of financial loss arising from another party to a contract or financial position failing to discharge a financial obligation there under. The SCA Division’s maximum exposure to credit risk is represented by the carrying amounts of the financial assets included in the balance sheet. 10. COMMITMENTS Government Other Total SCA Division has no expenditure commitments associated with its operations (2006: Nil). 2007 $ $ $ Receivables – Sydney Catchment Authority 11,260 - 11,260 11. CONTINGENT LIABILITIES
The SCA Division is not aware of any contingent liabilities associated with its operations.
Page 20 of 23 Page 21 of 23
Sydney Catchment Authority | Annual Report 2006–07 9. SUPERANNUATION (continued) 12. RECONCILIATION OF SURPLUS FROM ORDINARY ACTIVITIES AFTER INCOME TAX TO NET CASH PROVIDED BY OPERATING ACTIVITIES 2006 2007 & thereafter 2007 2006 Discount rate at 30 June 5.9% 5.9% $’000 $’000
Expected return on plan assets at 30 June 7.6% 7.6% Cash and cash equivalents Expected salary increases 4.0% 4.0%* Cash - - - - 193 Expected rate of CPI increase 2.5% 2.5%
2007 2006 *2009 and thereafter, 3.5%. $’000 $’000 Arrangements for employer contributions for funding Operating Surplus after Income Tax - -
The following is a summary of the 30 June 2006 financial position of the Fund as determined in accordance with AAS25. The measurement for the purposes of AAS25 below and the AASB119 results in different Add/(Subtract): Net Movement in assets and liabilities applicable to values for accrued benefits due to AASB119 ascribing a different discount rate for accounting measurement operating activities of the defined benefit obligation. Unfunded superannuation 2,951 (3,003) Suppliers and employees (1,570) (9,778) SASS SANCS SSS Total Receivables (1,381) 12,781 30-Jun-06 30-Jun-06 30-Jun-06 30-Jun-06 $ $ $ $ Net Cash provided by Operating Activities - - Accrued benefits 11,122 2,248 20,529 33,899 Net market value of Fund assets (11,095) (2,296) (22,607) (35,998) SCA Division does not operate a bank account. All cash related transactions have been paid for or received by SCA and charged to SCA Division using the intercompany receivable account in Note 4. Net (surplus)/deficit 27 (48) (2,078) (2,099)
13. FINANCIAL INSTRUMENTS Recommended contribution rates for the entity are: The SCA Division’s principal financial instruments are outlined below. These financial instruments arise SASS SANCS SSS directly from SCA Division’s operations or are required to finance SCA Division’s operations. SCA Division does not enter into or trade financial instruments for speculative purposes. SCA Division does not use multiple of % member multiple of financial derivatives. member salary member contributions contributions a) Interest Rate Risk
1.90 2.50 0.93 Interest rate risk is the risk that the value of the financial instrument will fluctuate due to changes in market interest rates. The SCA Division is not exposed to any interest rate risk. Financial assets comprise non interest bearing receivables and financial liabilities comprise non interest bearing trade creditors and The method used to determine the employer contribution recommendations at the last actuarial review was payables. the Aggregate Funding method. The method adopted affects the timing of the cost to the employer. Under the Aggregate Funding method, the employer contribution rate is determined so that sufficient assets b) Credit Risk will be available to meet benefit payments to existing members, taking into account the current value of assets and future contributions. Credit risk is the risk of financial loss arising from another party to a contract or financial position failing to discharge a financial obligation there under. The SCA Division’s maximum exposure to credit risk is represented by the carrying amounts of the financial assets included in the balance sheet. 10. COMMITMENTS Government Other Total SCA Division has no expenditure commitments associated with its operations (2006: Nil). 2007 $ $ $ Receivables – Sydney Catchment Authority 11,260 - 11,260 11. CONTINGENT LIABILITIES
The SCA Division is not aware of any contingent liabilities associated with its operations.
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Sydney Catchment Authority | Annual Report 2006–07 13. FINANCIAL INSTRUMENTS (Continued)
c) Net Fair Value
The carrying value of all financial instruments of SCA Division approximates their net fair value due to the respective remaining lives of the instruments being less than one year.
d) Derivatives
The SCA Division has no exposure to derivatives. 194
14. RELATED PARTY DISCLOSURES
Key management personnel are the person/persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. Schedule 1, s. 4B of the Public Sector Employment Legislation Amendment Act 2006 determines that the Division Head is the Chief Executive of the Sydney Catchment Authority (refer Part 2) As such, the Chief Executive is determined to be SCA Division’s key manager.
a) Transactions with key management personnel
Key management personnel compensation is as follows:
2007 2006 $’000 $’000 Short-term employee benefits 332 267 Long-term employee benefits 136 171 468 438
This comprises compensation relating to:
Chief Executive 468 438 468 438
The above disclosures are based on actual payments made for employee benefits during the reporting period.
Any transactions undertaken with entities related to key management personnel are conducted on an arm’s length basis in the normal course of business and on commercial terms and conditions.
During the current or previous reporting periods, there were no material transactions with such entities.
b) Identity of related parties
The parent entity within the Group is Sydney Catchment Authority (SCA).
c) Other related party transactions During the current period SCA Division provided personnel services to SCA. The personnel expenses incurred by SCA Division in providing these services have been charged to the SCA for the exact value of the costs incurred for the period of $29,366,705 (2006: $6,560,476).
The amount outstanding at year end which was owed to SCA Division by SCA was $11,259,953 (2006: 15. POST BALANCE DATE EVENTS $12,315,622). There were no post balance date events impacting the state of affairs of the Division or likely to have a material15. POST effect BALANCE on the financial DATE statements.EVENTS
There were no post balance date events impacting the state of affairs of the Division or likely to have a material effect on the financial statements. Page 22 of 23 (End of Audited Financial Statements)
Sydney Catchment Authority | Annual Report 2006–07 (End of Audited Financial Statements)
Page 23 of 23
Page 23 of 23 SCA Division appendices 195
Contents Appendix 1 Overseas visits by staff 196 Appendix 2 Categories of staff over four years 197 Appendix 3 Executive remuneration rates 198 Appendix 4 Staff training and development 199
SydneySydney CatchmentCatchment AuthorityAuthority || AnnualAnnual ReportReport 2006–072006–07 Appendix 1 Name: Mahes Maheswaran, Strategic Supply Planning Manager 196 Overseas visits by staff Dates of visit: 24 to 26 January 2007 The Minister approved the following overseas visits for SCA staff members for 2006–07. Destination: Singapore, Singapore Name: Ian Landon-Jones, General Manager, Event: Invited by the Public Utilities Board Dam Safety of Singapore and the Centre for Water Research, University of Western Dates of visit: 24 June to 5 July 2007 Australia, to attend an international Destination: St Petersburg, Russia research workshop on reservoir Event: International Commission on Large management technology. Cost to Dams (ICOLD) 2007 Annual Meeting the SCA: $635. and Symposium. Mr Landon-Jones is a member of ICOLD’s Technical Name: Chris Chafer, Senior Spatial Analyst Committee on Seismic Aspects of Dates of visit: 31 January to 7 February 2007 Dam Design and is a corresponding Destination: Barcelona and Solsona, Spain member of the Dam Surveillance Committee. Both committees held Event: International conference on effects meetings in St Petersburg in June of fire on soil properties (Barcelona) 2007 and Mr Landon-Jones attended and ALINFO (Alternatives Analysis the meetings. Cost to the SCA: for Problems Associated with Large $12,230. Forest Fires) Conference (Solsona). Cost to the SCA: $5,000. Name: Brian Spies, Manager, Science Name: Agnes Sakal, System Planner Dates of visit: 31 July to 2 August 2006 Dates of visit: 1 to 3 August 2006 Destination: Vancouver, Canada Destination: Denmark Event: International research workshop in hydrogeophysics, organised by the Event: Tuition in specialised Floodwatch Society of Exploration Geophysicists. forecasting and modelling software. Cost to the SCA: $5,267. Cost to the SCA: $6,490.
Name: Graeme Head, Chief Executive Dates of visit: 14 to 15 August 2006 Destination: Auckland, New Zealand Event: Water Services Association Board meeting. Cost to the SCA: $2800.
Sydney Catchment Authority | Annual Report 2006–07 Appendix 2 – Categories of staff over four years 197 Table 3: Categories of SCA staff over four years
Category 2003–04 2004–05 2005–06 2006–07 Chief Executive 1 1 1 1
Managing Director 1 1 – –
SCA Executive (1) 8 8 5 6
Contract staff (2 and 3) 40 13 5 2
Award staff 237 273 289 302
Total numbers (4) 286 295 300 311
Total FTE numbers (5) 266.78 270.94 277.4 297.81
Footnotes to Table 3 2003–04 2004–05 2005–06 2006–07
(1) Women in this category 2 2 0 1
(2) Women in this category 11 3 3 1
(3) Temporary employees in this category 1 1 0 0
(4) Number of employees in this category 41 45 32 27 with an FTE of less than 1
(5) FTE equivalent for employees in footnote 4 21.78 21.34 13.37 11.43
Sydney Catchment Authority | Annual Report 2006–07 Appendix 3 – Executive 198 remuneration rates Executive officers above SES level 5 Chief Executive, Graeme Head – $278,000 – SES 6 Mr Head has continued to play a significant role in overseeing the delivery of key Metropolitan Water Plan projects, including: • the completion of the deep water access project at Warragamba and Nepean/Avon dams which were delivered ahead of schedule and under budget • groundwater studies • new options for transferring water from the Shoalhaven River to Sydney. Another significant achievement realised this year was the commencement of Drinking Water Catchments Regional Environmental Plan No 1. The Prospect Raw Water Pumping Station was completed during the year providing an alternative water supply source for Sydney. Good progress has also been made throughout the year on: • completion of major elements of the SCA’s Accelerated Sewerage Program • riparian remediation projects to improve water quality • the development of new tools to prioritise actions to improve water quality. Mr Head has played a critical role during the year in developing the new five year Corporate Plan that builds on the foundations laid in the SCA 2002–2007 Business Plan. Under Mr Head’s leadership, the SCA continued to achieve a high level of compliance with its regulatory obligations and its business plan targets.
Sydney Catchment Authority | Annual Report 2006–07 Appendix 4 – Staff training and development 199 Table 4: Staff training development by type over three years
Training Numbers Numbers Numbers 2004–05 2005–06 2006–07
Orientation 34 16 14
Communication 24 33 12
Computer education* 192 268 57
Engineering technical/para-professional 65 108 387
Staff relations – – 19
General 24 – –
Performance management** 720** 21 16
Staff harassment prevention – 45 205
Environment 105 31 96
Incident management 40 31 25
Leadership 1 24 5
Management 175 – –
Contracts management – 5 –
Contract shells management 1 – –
Project management 4 161 273
Privacy management – 236 –
Office management 2 – 44
Occupational health, safety and rehabilitation 259 153 159
Operations 89 230 324
Personal development 36 – –
Quality*** 137 79 3
Service: customer complaint 1 – –
Temporary appointment to higher positions 98 110 122
Business related (SCA supported study) 11 17 15
Environment related (SCA supported study) 1 3 4
Public policy related (SCA supported study) – – –
SCA sponsored study: public sector management – 2 3
* Boosted by financial system, MS Office, records, various geosystems training. ** STEP performance management program introduced 2004-05. Some staff members undertook training in more than one module. *** Numbers in 2004-05 and 2005-06 largely due to introduction of International Financial Reporting Standards 2004-05.
Sydney Catchment Authority | Annual Report 2006–07 Glossary 200 Term Definition
Catchment An area where water is collected by the natural landscape. In a catchment, all rain and run-off water eventually flows into a creek, river, lake or ocean or into the groundwater system.
Deep storage Water that lies at the bottom of some dams and reservoirs. Usually, it is below the lowest outlet point in a dam from where water can be extracted or below the level where gravity can draw the water out of the dam.
Environmental flows Flows of water released from dams into a river, stream or other natural waterway to protect and improve river health.
Groundwater All water found below ground level in saturate soil or rocks.
Land Includes rivers, streams and other watercourses.
Megalitre Volume equal to one million litres.
Operating storage The amount of water available for water supply in a lake or reservoir.
Pathogens Micro-organisms that can be found in water and which can sometimes cause illness in humans.
Rain event Rainfall exceeding a threshold value set according to catchment size.
Raw water Water that has not been subjected to any form of treatment.
Special Areas Land set aside for the protection of drinking water quality.
Water storages The SCA’s dam walls, pumps and other works used for extracting and storing water in rivers and lakes, water occurring naturally on the surface of the ground and sub-surface waters.
Water supply infrastructure The SCA’s dams, pipelines of associated works, and monitoring devices.
Yield The amount of water that can be continually withdrawn from a reservoir on an ongoing basis with an acceptably small risk of reducing the reservoir storage to zero.
Sydney Catchment Authority | Annual Report 2006–07 Acronyms 201 ANCOLD Australian National Committee HSC Higher School Certificate on Large Dams ICOLD International Commission ASU Australian Services Union on Large Dams
AwwaRF American Water Works Association IPART Independent Pricing Research Foundation and Regulatory Tribunal
CHRIS Complete Human Resources KRA key result area Information System LEP local environmental plan CLAS Community Language Allowance Scheme MoU memorandum of understanding
CMA catchment management authority NorBE neutral or beneficial effect on water quality CMP conservation management plan OHS occupational health and safety CPI Consumer Price Index PMP property management plan CRC cooperative research centre RAP rectification action plan CSIRO Commonwealth Scientific and Industrial Research Organisation REP Drinking Water Catchments Regional Environmental Plan No 1 DECC Department of Environment and Climate Change RID Regional Illegal Dumping
DET Department of Education and RVI riparian vegetation index Training SASPoM Special Areas Strategic Plan DPI Department of Primary Industries of Management
DSC NSW Dams Safety Committee SCA Sydney Catchment Authority
DWE Department of Water and Energy SEPP 58 State Environmental Planning Policy No 58 EAP Employee Assistance Program SLWCA strategic land and water EEO equal employment opportunity capability assessment
ELJ engineered log jam SOC state owned corporation
EPA Environmental Protection Authority STP sewage treatment plant
EPA Act Environmental Planning SWC Sydney Water Corporation and Assessment Act 1979 SWCM Act Sydney Water Catchment ESS employee self service Management Act 1998 (module of CHRIS) WRAPP Waste Reduction FOI freedom of information and Purchasing Policy
GPS global positioning system WSAA Water Services Association of Australia GST goods and services tax WSSAPoM Wingecarribee Swamp and HAMS Heritage Asset Management Special Area Plan of Management Strategy
HCP Healthy Catchments Program
Sydney Catchment Authority | Annual Report 2006–07 2006–07 Annual report compliance checklist 202 Section Reporting requirements for statutory bodies annual report Reference Letter of AESBA s9A • Stating report submitted to Minister for presentation to About the SCA submission Parliament • Provisions under which report prepared • If applicable, length of lateness in submitting report and reasons • If no application for extension, reasons for lateness and lack of application • To be signed by 2 members of statutory body or, if without members, by the CEO Charter ARSBR Sch,1 • Manner in which and purpose for which agency was About the SCA established • Principal legislation under which statutory body operates Aims and ARSBR Sch,1 • What agency sets out to do About the SCA objectives • Range of services provided • Clientele/community served Access ARSBR Sch,1 • Address of principal office/s Inside back cover • Telephone number of principal office/s • Business and service hours Management ARSBR Sch,1 • Names of members and their qualifications Corporate and structure governance, • Method and term of appointment of board members App 4, 5 • Frequency of meetings and members’ attendance at meetings • Names, offices and qualifications of senior officers • Names of significant committees of the agency and names of committee members • List of significant committees established/abolished, and functions of such committees • Organisation chart indicating functional responsibilities Summary ARSBR Sch,1 • Narrative summary of significant operations KRAs 01-07 review of • Financial and other quantitative information for programs or operations operations Funds granted PM 91-34 • Name of recipient organisation App 12 to non- ARSBR Sch,1 • Amount of grant government community • Program area as per Budget paper organisations • Program as per Budget paper • Nature and purpose of the project including aims and target clients Legal change ARSBR Sch.1 • Changes in Acts and subordinate legislation App 1 and 2 ARSBA s9(1)(f) • Significant judicial decisions affecting agency or users of its services Economic or ARSBR Sch,1 • Affecting achievement of operational objectives KRA 03 other factors
Sydney Catchment Authority | Annual Report 2006–07 Section Reporting requirements for statutory bodies annual report 203 Reference Management ARSBR Sch,1 • Describe nature and range of activities KRAs 01-07 and activities • If practicable, qualitative and quantitative performance measures showing efficiency and effectiveness • Nature and extent of internal and external performance reviews conducted and resulting improvements in achievements • Benefits from mgt and strategy reviews • Management improvement plans and achievements reaching previous targets • Major problems and issues which arose • Major works in progress, cost to date, dates of completion, significant cost overruns or delays/amendments/deferments/ cancellations Research and ARSBR Sch,1 • Completed and continuing research and developmental KRA 04 development activities including resources allocated • Unless will adversely affect business Human ARSBR Sch,1 • Number of officers and employees by category and compare SCA Division AR resources to prior three years – KRA 06 • Exceptional movements in wages, salaries or allowances SCA Division AR – App 2 • Personnel policies and practices • Industrial relations policies and practices Consultants PM 2002-07 • For each engagement costing equal to or greater than $30,000: KRA 03 ARSBR Sch.1 – Name of consultant – Title of project (shown in a way that identifies the nature of the work) – Actual costs • For engagements costing less than $30,000: – Total number of engagements – Total cost • Categorised by the nature of the consultancy, such as: finance and accounting/tax; information technology; legal; management services; environmental; engineering; organisational review; training • Or a statement that no consultants were used Equal TC 02/17 • Major EEO outcomes during the reporting period accounting SCA Division AR employment ARSBR Sch,1 for planned outcomes set the previous year. – KRA 06 opportunity • Major planned EEO outcomes for the following year, which (EEO) reflect the agency’s corporate priorities identified in planning documentation. • Table of trends in (A) representation and (B) distribution of EEO groups. Refer tables A and B Treasury Circular 02/17. For information on this requirement contact the Office of the Director of Equal Employment Opportunity on 9228 4444. Disability PSEMA Sch.1 • Statement setting out the process to implement a disability SCA Division AR plans plan if required as per the Disability Services Act 1993 (only for – KRA 06 those required according to PSEMA)
Sydney Catchment Authority | Annual Report 2006–07 Section Reporting requirements for statutory bodies annual 204 report Reference Land disposal ARSBR Sch,1 • Total number and value of properties disposed of during KRA 07 the year • If value greater than $5M and not sold by public auction or tender list of properties – for each case, name of person who acquired the property and proceeds • Details of family or business association between purchaser and person responsible for approving disposal • Reasons for the disposal • Purpose/s for which proceeds were used • Statement that access to documents relating to the disposal can be obtained under the Freedom of Information Act. Promotion ARSBR Sch,1 • Types of publications/other information available to public on App 18 activities/ functions SCA Division AR • Those published during the year – App 1 • Overseas visits by employees and officers with main purposes highlighted Consumer ARSBR Sch,1 • Extent and main features of complaints KRA 05 response and App 13 • Services improved/changed in response to complaints/ suggestions Guarantee of ARSBR Sch,1 • If appropriate, standard for provision of services, with App 15 service comment on any variances or changes made to standard Payment TC 01/12 • Details of performance in paying accounts for each quarter: App 11 of accounts ARSBR Sch,1 – 0-30, 30-60, 60-90 and 90+ $ amounts – Target %, actual % and $ for on time – Total dollar amount paid in quarter – (Can use proper sampling techniques) • Details of action taken to improve performance Time for ARSBR Sch,1 • Where interest was paid due to late payments, list of instances App 11 payment of TC 01/12 and reasons for delay which caused late payment accounts Risk ARSBR Sch,1 • Report on the risk management and insurance arrangements Corporate management and activities affecting the agency governance and insurance activities Disclosure of ARSBR Sch,1 • For each controlled entity: About the SCA Controlled – Name, objectives, operations, activities Entities – Performance targets and actual performance measures Ethnic affairs ARSBR Sch,1 • Statement setting out progress in implementing ethnic affairs SCA Division AR priorities priority statement and key strategies for the following year – KRA 06 statements • Information as to the ethnic affairs priority statements of any and any bodies reporting to the agency agreement • Description of any agreement entered into with Community Relations Commission and statement setting out progress in implementing any agreement
Sydney Catchment Authority | Annual Report 2006–07 Section Reporting requirements for statutory bodies annual report 205 Reference Occupational ARSBR Sch,1 • Statement setting out OHS performance SCA Division AR health and – KRA 06 • Details of injuries and prosecutions under Occupational Health safety and Safety Act 2000 Waste ARSBR Sch,1 • Statement on implementation of government’s Waste App 14 Reduction and Purchasing Policy (WRAPP) and progress on: – Reducing generation of waste – Resource recovery – Use of recycled material Budgets ARSBA s7(1)(iii) • Detailed budget for the year reported on. Including details of: KRA 03 ARSBR c6-7 – If this is the first budget approved – Adjustments to first budget approved • Outline budget for following year Financial ARSBA s7(1)(a)(i) • Inclusion of financial statements Financial statements – (ii)(a) reporting • Controlled entities’ financial statements • Audit opinion on financial statements • Response to significant issues raised by Auditor-General Identification ARSBR c5 • At start and finish Financial of audited reporting financial statements Additional ARSBR c8 • Total external costs (such as fees for consultants and printing App 16 matters for costs) incurred in the production of the report. inclusion in • Whether the report is available in non-printed formats (such annual reports Inside back as on the internet or on CD-ROM) cover • If the report is available on the internet, the internet address at which the report may be accessed (disclosure of the statutory body’s homepage address is sufficient). Investment ARSBR c12; TC • In the form of a comparison with a choice of ‘Hour Glass Financial performance 03/09 investment Facilities’ from Treasury Corporation statement • Choice of comparison based on nature and term of underlying liability • Stated in terms of annual compound percentage rate of return Liability ARSBR c13; TC • Only if debt is greater than $20m Financial management 03/09 statements • In the form of a comparison, details of agency’s liability performance portfolio performance versus benchmark • Benchmark is notional portfolio constructed as risk neutral per Treasurer
Sydney Catchment Authority | Annual Report 2006–07 Section Reporting requirements for statutory bodies annual 206 report Reference Performance ARSBR c11,14 • Number of female executive officers for current and previous SCA Division AR and numbers reporting years – App 2, of executive • Number of executive positions at each level for current and SCA Division AR officers prior year (or total number at equivalent to SES 1 pay or – App 3 higher for state owned corporations (SOCs)) • For each executive officer >= level 5 (or equivalent pay for SOCs) and a chief executive officer not holding an executive position: – A statement of performance by person responsible for their review, with regard to agreed performance criteria – Details of performance pay, and summary of criteria determining this – Name, title and remuneration package – Level (except SOCs) Freedom of FOIA s68 • Statistical information per FOIM App 7 Information FOIR s10 • Comparison with prior year requirement Act FOIM App. B • Impact of activities on FOI requirements ARSBA s5A(2) • Major issues arisen during year • Circumstances and outcomes of investigations or applications for review Implementa- IPARTA s18(4) • If agency subject to determination or recommendation of KRA 03 tion of price Tribunal then: App 9 determination – Statement that it was implemented and details of implementation; or – Reasons for not being implemented Privacy PPIPA s33(3), 53 • Statement of action taken by agency in complying with SCA Division AR management requirements of PPIPA – KRA 06 plan • Statistical details of any part 53 review (based on a complaint) Government PM 98-35 • Reporting on outcomes of performance goals (established by KRA 07 Energy agency) Management Policy Electronic PM 00-12 • Status report on delivery of electronic services KRA 05, service App 18 delivery Credit card TD 205.01 • Credit card certification to be attached App 10 certification
Requirements TC 06/13 ARSBA • Additional requirements, where statutory body receives SCA Division AR arising from s15(1) personnel services from a Department or special purpose – KRA 06 employment service entity – refer sections 6.1, 7.1.2 and 7.2.2 of TC 06/13 arrangements
Cultural Heritage Act • List (and condition) of SCA assets on State Heritage Register App 17 heritage 1977, s170A assets
Sydney Catchment Authority | Annual Report 2006–07 Index E economic performance indicators, 7 A education, 56–58 accounting policies, 86–99, 178–183 employee assistance program, 164 accounts, payment of, 146–147 energy management, 71–72 achievements, 10, 11–12, 70–73 Environment Plan, 70 ActiveMap, 56 environmental flows, 31, 35, 55 annual reports, 4 environmental performance, 7, 16, 70–73 compliance checklist, 202–206 equal employment opportunity, 165 207 cost, 152 equity and diversity management plan, 164–166 assets, 36–38, 107, 184 ethnic affairs priority statement, 166 Audit Committee, 14, 15 eWater Cooperative Research Centre, 53, 54 auditor’s report, 77–78, 170–171 Executive, 8, 111, 198 Australian National Committee on Large Dams, 39, 64 expenses, 101–103, 184 Australian Water Association, 65 F B financial instruments, 130–132, 193–194 balance sheets, 83, 175 financial reporting, 47 Board, 14–16, 79–80, 138–141 SCA, 76–133 borrowings, 113–114 SCA Division, 169–194 Braidwood land management, 26, 74 financial systems, 48 budget, 47 financial targets, 42 Burrawang Pumping Station, 38 fire management, 116, 137 bushfires, 116, 137 fleet management, 74 Business Plan, 4, 8, 10, 13–15 freedom of information, 136, 142–143 funding, 5 C capital works, 8, 43–45, 47 G Cascade Deep Water Pumping Station, 38 grants and incentives, 56, 74, 148 cash flow statements, 84, 176 grazier education program, 55 catchment management, 10, 15, 16, 24, 28, 55–56, 64 greenhouse emissions, 72 Chairman’s report, 8–9 groundwater, 10, 35–36, 54, 60 charges, schedule of, 145 guarantee of service, 152 chemicals, hazardous, 27 Chief Executive, 8–13, 16 H climate, 52, 54–55 Healthy Catchments Program (HCP), 8, 13, 23–28 code of conduct, 17 heritage assets, 72–73, 152–154 commercial success, 11, 41–48 Household Hazardous Chemical Collection Program, 27 committees, 15, 141 community consultation, 60–61, 63 I community groups, grants to, 148 incidents management, 18, 137 complaints, 66, 149 income statements, 81, 173 complete human resources information system (CHRIS), 166–167 income tax, 104–106 consultants, 48 Independent Pricing and Regulatory Tribunal, 13, 47 contact arrangements, 144, inside back cover information management and technology, 56, 74 Cooperative Research Centre for Water Quality and Treatment, 53, insurance, 116, 137 54 internal audit, 18 corporate governance, 8, 13–15 credit card use, 146 K credit rating, 47 Kangaloon groundwater pumping trials, 9 current recommended practices (CRPs), 22 L D land acquisition and disposal, 74 Dam Safety, 16, 38–39, 64 land use, 22, 26 dam storage, 31, 34 legal matters, 136–137 deep water access projects, 34, 46 legislation, 5, 136 development and rectification, 22–23 library, 74 Drinking Water Catchments Regional Environmental Plan No 1 Local Government Reference Panel, 60 (REP), 10–11, 13, 22, 57, 136 drought, 9, 10
Sydney Catchment Authority | Annual Report 2006–07 M S Macarthur office, 75 science and research, 10, 50–54, 58 management personnel, 132–133 security management, 17 media communication, 65 sediments, 52 memoranda of understanding, 64 service guarantee, 152 Metropolitan Water Plan, 6, 8, 10, 13, 34, 60, 64 service level agreements, 48 mining, 13, 25–26, 40 sewage management, 23–24 Ministers, 9 Shoalhaven system, 8, 9, 13, 35, 61 208 social performance indicators, 7 N Southern Coalfields Inquiry, 26 Nepean/Avon deep water access project, 10 Special Areas, 5, 13, 25–26, 28, 63, 137 neutral or beneficial effect on water quality (NorBE), 20, 22–23, sponsorships, 56 57, 65, 136, 155 staff, 162–167, 196, 197, 199 O stakeholders, 63, 65–66 State Environmental Planning Policy, 136 objectives and functions, 5 State Plan, 6 occupational health and safety, 164 statement of affairs, 144 operating licence audit, 73 Statement of Financial Framework, 42 operational performance indicators, 7 strategic land and water capability assessments, 22 overseas visits, 196 Subsidence Management Plan Review Committee, 64 P summary of affairs, 144 pathogen research, 51, 55 superannuation, 117–126, 185–192 payment of accounts, 146 surveying (dam safety), 39 Penrith offices, 13, 75 Sydney Water Catchment Management Act 1998, 136 performance indicators, 7, 42 T Pesticides Use Notification Plan, 63 Tallowa Dam. see Shoalhaven system policy documents, 144 technology management, 74 pollutants, 28, 52 training and development, 162, 199 price review, 13, 47 process improvement, 73–74 U procurement, 48 unions, consulting with, 167 project management, 73 Upper Canal, 13, 38 property, plant and equipment, 74, 108–113 Upper Nepean dams, 13, 35, 38 Prosecutions Committee, 14–15 Prospect Raw Water Pumping Station, 8, 10, 37, 38 W publications, 65–66, 155–156 Warragamba Dam, 8–10, 13, 36, 38, 61, 75, 137 waste minimisation, 72, 150–151 R water conservation, 70 rainfall, 33 water consumption, 9 Raw Drinking Water Quality Management Framework, 10, 20–21, 63 water management licence, 73 records, 74 water pollution, 28, 52 rectification action plans, 22 water quality, 11, 19–28, 58 recycling, 150–151 water release, 31–32 regulatory framework, 6, 73 water saving education, 56, 58 related party disclosures, 194 Water Services Association of Australia, 64 remuneration rates, 198 water supply, 11, 13, 29–40 REP (Drinking Water Catchments Regional Environmental Plan No website, 66 1), 10–11, 13, 22, 57, 136 Wingecarribee Reservoir safety review, 49 research, 10, 50–54, 58 Wingecarribee Swamp and Special Area, 25, 63 revenues, 47, 100, 184 workplace, 12, 67–68, 161–167 riparian lands management, 24 risk management, 17 river health, 64 rural lands management, 26 Rural Living Handbook, 62
Sydney Catchment Authority | Annual Report 2006–07 Legislative references APFW Action Plan for Women Contact information ARSBA Annual Reports (Statutory Bodies) Act 1984 ARSBR Annual Reports (Statutory Bodies) Regulation 2005 DSA Disability Services Act 1993 Warragamba Dam Visitor Centre FOIA Freedom of Information Act 1989 Telephone: 02 4720 0349 FOIR Freedom of Information Regulation 2005 Hours: 10.00 am to 4.00 pm daily FOIM Freedom of Information Manual 1994 except Christmas and Good Friday IPARTA Independent Pricing and Regulatory Other dams, reservoirs Tribunal Act 1992 and camping grounds PM Premier’s Memorandum Telephone: 02 4640 1200 PPIPA Privacy and Personal Information Monday to Friday Protection Act 1998 PSEMA Public Sector Employment and Operational offices Management Act 2002 Warragamba Dam Burrawang TC Treasury Circular Blue Mountains TD Treasurer’s Direction Goulburn Macarthur (Campbelltown)
Photography credits Emergency reporting TVU Pty Ltd (c) Sydney Catchment Authority Fires, chemicals, spills Front and back covers, Pages 1, 3, 16, 19, 29, 36, 41, Telephone: 1800 061 069 46, 49, 59, 76, 135, 157, 168, 169 and 195 24 hours Michael Bradfield Photography Pty Ltd SCA Head Office Pages 15, 138 ,139 and 140 Sydney Catchment Authority SCA Catchment Operations and Major Projects Level 2, 311 High Street Division Penrith NSW 2750 Pages 27, 67, 161 and 163 PO Box 323 SCA Communications and Consultation Unit Penrith NSW 2751 Pages 57 and 75 Telephone: + 61 2 4725 2100 Goulburn Mulwaree Council 1300 SCA GOV Page 62 Fax: + 61 2 4732 3666 SCA Bulk Water Division Page 69 Office hours Front cover photograph: 9.00 am to 5.00 pm Nine of the largest submersible pumps available Monday to Friday were installed in the new Prospect Raw Water Web: www.sca.nsw.gov.au Pumping Station. Email: [email protected] Back cover photograph: An image from the Shoalhaven Catchment.
Sydney Catchment Authority | Annual Report 2006-07 SCA 107 ISSN 1446-03X ISBN 978-1-876951-35-1 November 2007 © State of New South Wales through the Sydney Catchment Authority, 2007 .This work may be freely reproduced and distributed for most purposes, however some restrictions apply. See the copyright notice on www.sca.nsw.gov.au or contact the Sydney Catchment Authority on 02 4725 2100.