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CSIRO Annual Report 2008–09

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CSIRO Annual Report 2008–09 www.csiro.au CSIRO Annual Report 2008–09 CSIRO Corporate Centre About CSIRO Limestone Avenue, Campbell ACT 2612 CSIRO – the Commonwealth Scientific and PO Box 225, Dickson ACT 2602 Industrial Research Organisation – is one of the Phone: 1300 363 400 largest and most diverse scientific organisations +61 3 9545 2176 in the world. It has over 6,500 staff located Email: [email protected] across 55 sites throughout Australia and overseas. Web: www.csiro.au Our history Our purpose The Council for Scientific and Industrial Research By igniting the creative spirit of our people, we deliver (CSIR) was established in 1926 with its primary great science and innovative solutions for industry, research devoted towards agriculture. In the late society and the environment. 1930s this was extended to include industrial research. In 1949, the CSIR was reconstituted as CSIRO, and Responsible Minister gradually expanded its activities so that its research Senator the Honourable was related to almost every field of primary, Kim Carr secondary and tertiary industry in Australia. Minister for Innovation, Today, CSIRO is a trusted source for creative ideas and Industry, Science and Research practical technologies to deliver impact for the nation. What we do Governing legislation CSIRO carries out scientific research in areas including energy, the environment, information CSIRO is an Australian Government statutory technology, health, mining, manufacturing, agriculture, authority constituted and operating under the and natural resources. We seek to make a difference provisions of the Science and Industry Research Act and generate impact by focusing on the nation’s big 1949 (SIR Act). challenges and opportunities. Our research delivers: This annual report is prepared in accordance with the requirements of the SIR Act and section 9 of • integrated solutions to help address major the Commonwealth Authorities and Companies Act national challenges 1997 (CAC Act). • technologies to transform or create new markets for Australian industry CSIRO Board • innovative technologies to improve the The CSIRO Board is responsible to the Australian competitiveness of existing industries Government, through the responsible Minister, for • advice, information and research to meet the overall strategy, governance and performance specific community needs of CSIRO. Further details of the CSIRO Board are • knowledge-based services to governments on page 59. and businesses. Cover image – Next generation solar cells. Discovery of new small molecules that deliver benchmark performance in high power conversion efficiencies is at the heart of CSIRO’s advances in the commercial development of flexible, large area, cost-effective, reel-to- reel printable plastic solar cells. Developed with our partners in the Victorian Organic Solar Cell Consortium, flexible plastic solar cells are much cheaper and more efficient to produce, and have the potential to replace silicon in the next generation of solar collectors, supporting Australia’s transition to a low carbon economy. Commercial printing trials of these printable-plastic solar cells commenced six months ahead of schedule, and were a major milestone of the Victorian Organic Solar Cell Consortium’s three year R&D program. CSIRO Future Manufacturing Flagship’s Dr Scott Watkins holds a sample of the plastic solar cells produced during the print trials at Securency International. Photo: Tracey Nicholls CSIRO Annual Report 2008–09 i Highlights of 2008–09 Recent highlights of CSIRO’s science and its • a three-year collaborative agreement with the application include: Victorian Government to better understand the State’s petroleum basins • returning very significant royalties for Australia from CSIRO’s patented wireless technologies, which are • the discovery of two new greenhouse gases and used worldwide in hundreds of millions of mobile increasing methane levels in 2007 and 2008, computing devices, including notebook computers, adding to confirmation of an increase in carbon wireless access points, games consoles and printers emissions, which is influencing US and European policy • an online tool, Your Development, which provides practical information on how to create sustainable • the commercialisation of CSIRO’s smart sensor TM urban residential developments network technology – CSIRO FLECK • the commercialisation of CSIRO’s UltraBattery • the signing of licensing agreements by five longwall mining manufacturers, which will return • scientific input to policies which have reduced approximately $2 million in fees to CSIRO over overfishing in Commonwealth waters the next five years. • world leading efficiencies from second generation These successes were achieved notwithstanding solar cell materials emerging economic challenges affecting national • an increase in the growth rate of Black Tiger prawns and international research and development (R&D) by 38 per cent when fed a novel aquafeed ingredient collaborators and investors and their markets. We are responding to these challenges by developing • CSIRO’s Healthy Heart Program, a 12 week new and sustained collaborative and commercial lifestyle program for lowering cholesterol and R&D relationships to achieve growth and build maintaining a healthy weight research capacity. • reductions of 20 per cent in perfluorocarbon emissions events with a new aluminium A further challenge is to maintain and grow our production technology science capability in order to meet the increasing demand for CSIRO’s expertise and technological • science contributions to the $200 million Reef solutions in areas of national challenges – such as Rescue package released by the Australian energy, climate change and water management. In Government order to do this we continue to actively prioritise • a new technology to date the age of a common our research activities, consolidate our operations, crystal as a new technique for diamond exploration and simplify CSIRO’s processes and management • successfully sequencing the bovine genome as arrangements. part of an international consortium Figure 1: CSIRO revenue in 2008–09 Intellectual property, Other royalties etc Co-investment, consulting Revenue from and services Government ii CSIRO Annual Report 2008–09 Financial Performance 2008–09 CSIRO’s financial performance for 2008–09 is summarised in Table 1. CSIRO’s operating result for the year to June 2009 was a surplus of $122.0 million, against a budgeted deficit of $34.2 million. This comprised total revenue of $1,302.9 million (above budget by $214.0 million) and total expenses of $1,180.9 million (above budget by $57.8 million). Total external revenue of $634.8 million exceeded the budget of $420.6 million by $214.2 million, primarily the result of intellectual property settlement revenues. Table 1: Financial performance – Five years at a glance Revenue by source 2004–05 2005–06 2006–07 2007–08 2008–09 $m $m $m $m $m Co-investment, consulting and services Australian private sector 63.9 67.6 58.0 68.2 76.3 Australian Governments 89.7 96.5 116 . 0 119. 5 148.3 Research and Development Corporations 48.0 44.3 43.2 30.2 36.5 Cooperative Research Centres 35.2 35.2 39.8 38.2 40.3 Overseas entities 33.5 36.4 37.2 35.3 61.0 Work in Progress/Deferred (9.7) (8.0) (8.5) (1.4) (14.5) Revenue Adjustment Total co-investment, consulting and services 260.5 272.0 285.8 290.0 347.9 Intellectual property, royalties, etc 22.0 32.4 30.6 81.7 229.6 Total research and services revenue 282.5 304.4 316.3 371.7 577.5 Other external revenue (including interest) 33.7 43.9 44.5 41.3 40.1 Gain/(Loss) on sale of assets 0.0 15.5 2.7 4.8 17.2 Other fair value gains and reversals 3.1 0.0 0.1 10.8 0.0 Total external revenue 319.3 363.8 363.6 428.6 634.8 Revenue from Government 577.1 593.9 610.1 663.2 668.1 Total revenue 896.4 957.7 973.7 1091.8 1,302.9 Less: expenses (excluding value of assets sold) 917.2 947.8 972.7 1044.1 1,180.9 Operating result (20.8) 9.9 1.0 47.7 122.0 Figure 2: Source of CSIRO’s co-investment, consulting and services revenue 2008–09, $m CSIRO Annual Report 2008–09 iii Contents Letter of Transmittal i Commonwealth Disability Strategy 63 Highlights of 2008–09 ii Health and safety 66 Foreword by the Chairman v Environmental performance 69 Chief Executive’s Report vi Collaboration and Partnering 72 Part one: Performance 2 Capability Development and Assessment 75 Strategy and Operations 2 People Management 77 Performance 5 CSIRO Locations 79 Output Group 1 7 National Research Flagships 7 Part three: Financial Statements 81 Output Group 2 30 Part four: Appendixes 137 Core Research 30 Flagship Collaboration Clusters 138 Output Group 3 44 Service Charter 141 Science Outreach: Education and Administrative Law 142 Scientific Publishing 44 Commonwealth Disability Strategy 143 Output Group 4 48 Consultancy Services 144 National Research Infrastructure: Science and Industry Endowment Fund National Facilities and Collections 48 Report 147 Awards and Honours 53 Indexes: 157 Part two: Governance 57 Acronyms 157 Management and Accountability 58 Glossary 159 Legislation and government policy 58 Index 160 Responsible Minister 58 Compliance index 169 Ministerial directions and notifications 58 CSIRO Board 59 CSIRO Executive Management 59 Organisational chart as at 1 July 2009 60 Strategies, policies and plans 59 Science Investment Process 61 Advisory mechanisms 62 Performance measurement and reporting 62 Risk management 62 External audit and internal controls 62 Administrative law: freedom of information and privacy 62 iv CSIRO Annual Report 2008–09 Foreword by the Chairman During a time of severe research, for example, we are responding to the economic conditions, issues raised by the Victorian bushfire disaster. it is gratifying that the Australian Government CSIRO’s depth of talent and capability to mount has retained its focus on large multidisciplinary projects came to the fore the National Innovation this year with the publication of Water Availability System and has increased in the Murray-Darling Basin Report.
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