DepartmentDepartment of of Energy the Premier and Water and Cabinet Supply CS3539 09/14 ISSN 2201-2087
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Public availability Copies of the Department of Energy and Water Supply (DEWS) annual report are available online at www.dews.qld.gov.au. Limited printed copies are available by calling 13 QGOV (13 74 68). Enquiries about this publication should be directed to Business Planning and Achievement, Business and Corporate Partnership, Department of Energy and Water Supply. Email: [email protected] Phone: 13 QGOV (13 74 68) Post: GPO Box 15456, CITY EAST QLD 4002 This publication has been compiled by Business Planning and Achievement, Business and Corporate Partnerships, Department of Energy and Water Supply. © State of Queensland, 2014. The Queensland Government supports and encourages the dissemination and exchange of its information. The copyright in this publication is licensed under a Creative Commons Attribution 3.0 Australia (CC BY) licence.
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ii Department of Energy and Water Supply Annual Report 2013–14 Contents
Letter of compliance...... 3
Director-General message...... 4
About the department...... 6
Agency role and main functions...... 6
Operating environment...... 8
Governance—structure and management...... 11
Organisational structure...... 11
Governance structure...... 11
Governance management...... 20
Legislation and other government bodies...... 21
Governance—risk and accountability...... 22
Risk management...... 22
External scrutiny...... 22
Ombudsman’s audit of the complaints management system...... 24
Audit and Risk Committee...... 24
Internal audit...... 25
Governance—human resources...... 27
Public Sector Ethics Act 1994 ...... 27
Queensland public service values ...... 28
Workforce planning, attraction, retention and performance...... 28
Workforce profile...... 28
Governance—information management...... 31
Information systems...... 31
Recordkeeping...... 31
Open data ...... 32 1 Department of Energy and Water Supply Annual Report 2013–14 Agency objectives and performance indicators...... 33
Objective 1: Cost-effective, safe, secure and reliable energy and water supply...... 33
Objective 2: Effective reform...... 38
Objective 3: Engaged stakeholders...... 44
Objective 4: Optimise industry value...... 49
Objective 5: A capable, flexible and proud workforce...... 52
Agency service areas and service standards...... 55
Service areas...... 55
Service standards...... 55
Financial performance...... 57
Financial summary...... 57
Our financial performance...... 57
Our income...... 57
Our expenditure...... 58
Financial statements...... 59
Appendix 1: Compliance checklist ...... 109
Appendix 2: Legislation...... 111
Appendix 3: Schedule of statutory authorities and instrumentalities...... 112
Appendix 4: Schedule of government-owned corporations...... 113
Appendix 5: Report of regulator’s activities under the Water Supply (Safety and Reliability) Act 2008...... 114
Appendix 6: Open data published datasets ...... 119
Glossary and acronyms ...... 122
Contacts...... 124
2 Department of Energy and Water Supply Annual Report 2013–14 Letter of compliance
12 September 2014
The Honourable Mark McArdle MP
Minister for Energy and Water Supply
GPO Box 15456
CITY EAST QLD 4002
Dear Minister
I am pleased to present the Annual Report 2013–2014 and financial statements for the Department of Energy and Water Supply.
I certify that this Annual Report complies with:
• the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009 • the detailed requirements set out in the Annual report requirements for Queensland Government agencies. A checklist outlining the annual reporting requirements is included in this report on page 108, or can be accessed at www.dews.qld.gov.au.
Yours sincerely
Dan Hunt Director-General Department of Energy and Water Supply 3 Department of Energy and Water Supply Annual Report 2013–14 Director-General message
The Department of Energy and Water Supply (DEWS) is transforming its business and creating a platform for strong and sustainable energy and water supply sectors. These sectors support the economic and lifestyle aspirations of all Queenslanders.
In 2013–14, we made significant progress on our vision for a prosperous Queensland through resilient and affordable energy and water supply sectors, delivering a number of significant policy and legislative reforms with tangible outcomes for Queensland’s electricity and water consumers.
The delivery of PowerQ and WaterQ in June were two very significant achievements in this financial year. Electricity and water are vital for all Queenslanders and underpin the government’s focus on developing Queensland’s strengths in tourism, agriculture, resources and construction.
Our Electricity Reform Implementation Program is a key vehicle to deliver the changes required to achieve the vision and direction set out in PowerQ: a 30-year strategy for Queensland’s electricity sector. It is a substantial, complex and holistic program of work consisting of 20-plus individual projects, which will collectively provide consumers with cost-effective electricity and ensure a viable, sustainable and competitive electricity industry for Queensland.
WaterQ: a 30-year strategy for Queensland’s water sector responds to the significant changes and challenges that our state will face over the next three decades. Within this time, more of Queensland’s population will live outside South East Queensland than ever before. WaterQ considers a number of strategic priorities to strengthen the resilience of the water sector to respond to these changes.
We released the draft North Pine Dam optimisation study and draft Wivenhoe and Somerset dams optimisation study for community consultation. These draft reports outline options to improve the use of existing dam infrastructure during a flood event to deliver better flood mitigation outcomes. The final reports will be delivered in late 2014, presenting alternative strategies for operating the North Pine, Wivenhoe and Somerset dams.
We also commenced an investigation of potential new dams to improve flood mitigation for Brisbane and Ipswich by looking at geotechnical, engineering, hydrological, environmental, social and economic factors, including the number of homes and buildings potentially affected. The results of the pre- feasibility study are expected in late 2014 and will include indicative costs and benefits for each site. As costs will only be indicative, further detailed feasibility assessments will be required should the government decide that an option, or combination of options, offer cost-effective flood mitigation benefits for downstream communities.
As a department, we are focusing our efforts on delivering better outcomes for Queenslanders through the DEWS Renewal Program. We have completed the majority of our internal functional reviews to determine the strategic challenges facing us as a department. This will enable us to focus our resources in the right areas and deliver better outcomes for energy and water consumers.
4 Department of Energy and Water Supply Annual Report 2013–14 We commenced development of our DEWS blueprint, which will be delivered in September 2014. This includes a renewed focus on our values to put our customers first, our ideas into action, unleash our potential, be courageous and empower our people. Similarly we will better define:
• our customers—Queensland consumers of energy and water and people we protect through dam safety and minimising flood effects. • our owners—our Government and ministers, as elected representatives of Queenslanders. • our partners—everyone who affects the water and energy supply chain or end users. The next financial year will be another challenging and exciting time. We will establish electricity and water expert panels to provide us with advice as we implement our 30-year strategies—PowerQ and WaterQ. The panels will ensure the long-term success of our strategies by critically examining the emerging trends and challenges in our sectors, investigating opportunities to innovate and change, and recommending actions.
We will deliver our DEWS blueprint and the outcomes of our Renewal Program, and embed high performance across our organisation by supporting and developing the capability of our workforce.
These initiatives and many other projects will ensure we progress our important energy and water supply reform agenda for strong and sustainable energy and water supply sectors, continue to reduce red tape and deliver better energy and water infrastructure and supply planning solutions across our state.
Dan Hunt Director-General Department of Energy and Water Supply 5 Department of Energy and Water Supply Annual Report 2013–14 About the department
The Department of Energy and Water Supply (DEWS) is a small government department that has delivered three major projects (among other initiatives) over the past 12 months to support the department’s vision of reduced cost-of-living pressures for Queenslanders through innovative and efficient energy and water supply services.
In 2014, two 30-year strategies—PowerQ and WaterQ—were released. On 1 April 2014, dam optimisation studies for Wivenhoe, Somerset and North Pine dams were released by the Premier, The Honourable Campbell Newman and the Minister for Energy and Water Supply, The Honourable Mark McArdle.
Agency role and main functions
The department was established on 3 April 2012, following machinery-of-government changes advised in the Public Service Departmental Arrangements Notice 1, 2012, under the Public Service Act 2008.
Note:
In September 2013, a new Director-General was appointed. Since then, the department has reviewed and developed a new vision, purpose and objectives.
Our vision
Our vision is for a prosperous Queensland through resilient and affordable energy and water supply sectors.
Our purpose
Our purpose is to develop and deliver an enabling and customer-focused environment for the energy and water sectors in partnership with stakeholders.
Our objectives
1. Focus on energy and water consumers
2. Transform the sectors
3. Be the best
4. Build partnerships
5. Support regions
The new DEWS vision, purpose and objectives have been guiding departmental direction.
However, for reporting purposes, the department is required to report against its 2013–17 strategic plan.
6 Department of Energy and Water Supply Annual Report 2013–14 The department’s 2013-17 strategic plan states that the purpose of DEWS is to develop and deliver innovative policy, planning and regulatory solutions in partnership with its stakeholders.
To achieve this purpose, the department focused on five objectives:
1. deliver cost-effective, safe, secure and reliable energy and water supply 2. deliver effective reform 3. engage stakeholders 4. optimise industry value 5. deliver a capable, flexible and proud workforce.
The department’s functions are delivered through two main service areas—Energy and Water Supply— under the legislation listed in Administrative Agreements Order (No. 2) 2013 (Appendix 2: Legislation).
Energy
The Energy service area is responsible for policy development, reform and regulation of the Queensland energy sector to ensure cost-effective, secure and reliable energy supply. It is also responsible for establishing a long-term electricity strategy—informed by the outcomes of the government’s review on electricity sector reform—to address cost-of-living pressures and sustainability of the sector.
Energy delivers five services:
1. energy generation and fuel—responsible for developing and implementing policy that directly affects the generation of electricity and alternative energy, ensuring that effective emergency planning and response arrangements are in place and representing the Minister in state-owned energy entities 2. energy networks—responsible for developing and implementing policy that directly affects energy network service providers and influences national energy agendas 3. energy and consumer retail—responsible for developing and implementing policy that has a direct effect on end-use consumers of energy 4. energy sector regulation—responsible for regulating the energy sector in Queensland 5. energy sector reform—responsible for developing and implementing reform of the Queensland energy sector.
Water supply
The Water Supply service area is responsible for implementing water sector reform to address cost- of-living pressures. It is also responsible for establishing a long-term strategy for Queensland’s water sector and regulating water supply so that agriculture, mining, industry and regional and urban communities have access to a cost-effective, safe, secure and sustainable water supply.
Water Supply delivers five services:
1. water sector planning—responsible for providing advice on possible temporary full supply levels for the state’s flood mitigation dams, developing urban drainage design standards for stormwater- related flood risk, managing and reporting on the department’s response to the Queensland Floods Commission of Inquiry (QFCOI) recommendations, planning for adequate water supplies to underpin regional and economic growth, and managing a suite of non-commercial water assets held by the state 2. water supply regulation—responsible for regulating the quality of drinking water supplied by registered water service providers in Queensland 7 Department of Energy and Water Supply Annual Report 2013–14 3. dam safety regulation—responsible for registering, assessing and monitoring the safety of large referable dams in Queensland (a referable dam is one that presents a risk to two or more people if it fails, not including dams containing hazardous waste, a weir or large rainwater tanks) 4. water sector reform (legislation and policy)—responsible for developing and implementing policy on state and national water issues, and facilitating changes to water supply and related legislation 5. water sector reform (economic advice)—responsible for providing economic evaluation and advice on bulk and rural water pricing and regulation, and representing the Minister in state-owned water entities.
The department’s principal place of business is located in Mineral House, 41 George Street, Brisbane. The department has a regional office in Rockhampton that undertakes planning and maintains and manages the non-commercial water assets held by the department.
Operating environment
South East Queensland has one of the fastest growing populations of any Australian urban area. Queensland also has the most geographically dispersed population of any Australian state or territory, with major centres outside the south-east region.
Queensland’s population is expected to increase up to 8.9 million people by 2044. In South East Queensland, this could see an increase to more than 5.7 million people, and more than 2.2 million people in regional Queensland.
Energy
Queensland is the only National Electricity Market jurisdiction operating in the tropical cyclone belt.
Customers • There are more than 2 million residential households and small business electricity and gas customers in Queensland. • There are 21 000 large electricity customers.
Generators, transmitters and distributors • There are five government-owned corporations providing generation, transmission (including interstate interconnectors) and distribution network infrastructure. • There are 20 private entities operating 25 privately owned generators. • There is a substantial gas transmission network with interstate interconnectors, Wallumbilla Gas Supply Hub, Brisbane Gas Short Term Trading Market (wholesale) and localised urban distribution networks. • There are 18 active electricity and gas retailers. • Queensland has the highest growth rate of rooftop solar photovoltaic system installation in Australia. There are over 350 000 households with solar photovoltaic system systems—about 1.1 gigawatts of capacity representing the state’s fourth largest ‘power station’.
8 Department of Energy and Water Supply Annual Report 2013–14 Growth and geography • Queensland has the highest rates of overall electricity demand growth in the eastern seaboard National Electricity Market, mainly due to liquefied natural gas/coal seam gas industry growth. • Queensland is the only National Electricity Market jurisdiction operating in the tropical cyclone belt.
Water supply
Working in partnership with service providers, the government will facilitate water supply security assessments for potential high-growth regions.
Catchment, treatment and storage • There are 170 registered water service providers delivering potable water, non-potable water and/ or sewerage services. They include local governments, government-owned corporations, statutory authorities and private businesses. • Seqwater and SunWater are state-owned bulk water entities. Seqwater owns and operates 26 dams for bulk water supply in South East Queensland. SunWater owns and operates 22 dams for bulk water supply outside South East Queensland. • The Mount Isa Water Board and Gladstone Area Water Board are category 1 water authorities overseen by DEWS. The Mount Isa Water Board supplies bulk water to the Mount Isa City Council and industrial customers, while the Gladstone Area Water Board supplies treated and untreated water for domestic and industrial purposes to Gladstone Regional Council and local industries. • There is regulation of 104 referable dams in Queensland, ranging in size from small privately owned dams (i.e. farm dams) to large government-owned dams.
Customers • More than 4.4 million customers are serviced by a registered water service provider.
Growth and demand • Demand for water will also grow strongly, with increasing challenges and competing uses. Ensuring demand is met requires collaboration across the urban, mining, agricultural and industrial sectors. • A key water security challenge is managing demand between competing users. Working in partnership with service providers, the government will facilitate water supply security assessments for potential high-growth regions.
Machinery-of-government changes
There were no machinery-of-government changes for DEWS in the reporting period. 9 Department of Energy and Water Supply Annual Report 2013–14 Government’s objectives for the community
The department supports the government’s objectives for the community by contributing to:
• growing a four pillar economy through effective policy, planning and regulation to support cost- effective, safe, secure and reliable energy and water supply, and reducing regulatory burden. • lowering the cost of living by identifying and implementing strategies to address cost pressures on electricity and water prices, and implementing energy and water sector reform. • investing in better infrastructure and planning by developing and implementing 30-year strategies for Queensland‘s electricity and water supply sectors, and implementing relevant QFCOI recommendations. • restoring accountability in government through effective stakeholder engagement, optimising shareholding value in state-owned entities and ensuring robust and streamlined regulatory requirements.
Other whole-of-government plans and initiatives
Queensland is a signatory to the National Partnership Agreement on Energy Efficiency (NPA-EE) between the federal government and all states and territories. The NPA-EE aims to deliver cost-effective energy efficiency gains through a nationally consistent and coordinated approach, while recognising the need for flexible approaches across jurisdictions.
Under the NPA-EE, the National strategy on energy efficiency has been developed. The strategy includes a series of nationally agreed measures to help identify improvements in energy efficiency for households and businesses to improve the productivity of the economy, achieve savings on energy bills and deliver significant low-cost greenhouse gas abatement.
All jurisdictions contribute funding to an agreed formula (50 per cent funded by the federal government and 50 per cent on a per capita basis from each jurisdiction). In 2013–14, Queensland’s contribution to national equipment energy efficiency work was $458 920 (including GST).
Department of Energy and Water Supply Annual Report 2013–14 10 Governance—structure and management
Organisational structure
Director-General Energy and Water Supply Dan Hunt
Deputy Director-General Deputy Director-General Deputy Director-General Energy Water Supply Business and Corporate Karen Masnata Ken Sedgwick Partnerships, DNRM and DEWS Brenda Parker
General Manager General Manager General Manager Water Supply Planning Water Supply Policy Queensland Water Abel Immaraj and Economics Supply Regulator Gayle Leaver Bob Reilly
General Manager General Manager Energy Supply and Regulation Energy Pricing, Consumer and Retail Alan Millis Benn Barr
Chief Finance Officer Executive Director Chief Counsel Fiona Trenear Human Resources In-House Legal and Communications Executive Director Celia Venables Business Planning and Achievement Sinead McCarthy
Governance structure
DEWS has a two-tiered governance structure:
1. Executive Management Team (EMT) 2. EMT committees. 11 Department of Energy and Water Supply Annual Report 2013–14 Executive Management Team
EMT functions as the department’s board of management.
EMT meets weekly and oversees the current and future work requirements of the department and agrees on policy and strategic direction.
EMT takes a collaborative management approach to address the challenges facing the department, and works together to ensure optimal outcomes in line with the department’s strategic priorities.
The collective responsibility of EMT is to ensure integration and collaboration on strategic issues across the department and prioritisation of resources and capabilities to facilitate outcomes and delivery of key priorities.
EMT’s role includes developing and leading the organisation’s culture of integrity, including a focus on customers and service delivery. This includes the support, promotion and monitoring of the department’s integrity framework to minimise the opportunity for misconduct and enhance the department’s ethical standing and public confidence in how services are delivered.
EMT is supported by committees that are formed as required to perform specific tasks or assignments.
The committees provide advice and recommendations to the EMT for consideration and approval. The committees also contribute to monthly ‘dashboard’ reports to EMT, encompassing key performance and business-related indicators.
Committees include the:
• Finance Committee • ICT Investment and Strategy Committee • Staff Renewal Steering Committee.
EMT profiles
As at 30 June 2014, EMT’s membership was as follows:
• Dan Hunt, Director-General • Karen Masnata, Deputy Director-General, Energy • Ken Sedgwick, Deputy Director-General, Water Supply • Brenda Parker, Deputy Director-General, Business and Corporate Partnerships
During 2013–14, Alan Mills relieved as Deputy Director-General, Energy, for one period and Benn Barr relieved for two periods.
Department of Energy and Water Supply Annual Report 2013–14 12 Dan Hunt, Director-General
In September 2013, Dan Hunt was appointed as Director-General of the Department of Energy and Water Supply.
As Director-General, Dan is responsible for ensuring the department meets its accountability obligations and achieves its strategic objectives to deliver government priorities.
Since October 2006 Dan has served in a number of Director-General roles, including Director-General of the Department of Natural Resources and Mines (DNRM), Associate Director-General of Mines and Energy in the Department of Employment, Economic Development and Innovation, and Director-General of the Department of Mines and Energy.
During his time as Director-General of the DNRM, Dan achieved key reforms, including:
• streamlining and transforming the mining exploration and development approvals processes • giving landholders greater flexibility to increase productivity and yield on the land • unlocking spatial data to make it publically available • delivering reforms in the areas of vegetation management • developing the liquefied natural gas/coal seam gas industry • resolving overlapping tenure and land access issues.
Other achievements during his 37-year career with the public service include the corporatisation of ports and rail infrastructure, the development of commercial contracts with Queensland Rail and the strategic policy coordination of national transport reform.
Karen Masnata, Deputy Director-General, Energy
In June 2012, Karen Masnata commenced as Deputy Director-General of Energy.
Karen is responsible for the Energy division within the department, which is focused on reducing cost-of-living pressures through innovative and efficient energy services.
Karen provides direction and leadership to deliver innovative policy, planning and regulatory solutions in partnership with our stakeholders to support cost-effective, safe, secure and reliable energy and water supply.
Karen is also responsible for the implementation of the government’s significant reform agenda, as well as the development and implementation of the 30-year electricity strategy, PowerQ.
Prior to this role, Karen held economic advisory roles with PricewaterhouseCoopers and Deloitte, and senior financial advisory roles with Queensland Treasury and the Queensland Treasury Corporation.
Karen has qualifications in law and corporate finance. 13 Department of Energy and Water Supply Annual Report 2013–14 Ken Sedgwick, Deputy Director-General, Water Supply
On 9 July 2012, Ken Sedgwick commenced as Deputy Director-General of Water Supply.
Ken is responsible for leading and implementing water policy, reform and regulation to ensure that the water supplied to Queensland communities is safe, reliable and delivered in a cost-effective way.
Ken is also responsible for the development of WaterQ, a 30-year strategy for the water sector.
Prior to this role, Ken was Acting Deputy Under-Treasurer in Queensland Treasury and Trade, where he also worked in a variety of senior roles, including leading Treasury’s involvement in the many structural changes that occurred within the Queensland water industry.
Prior to his Treasury career, Ken worked in the former Department of Primary Industries in Brisbane and Townsville.
Brenda Parker, Deputy Director-General, Business and Corporate Partnerships
Brenda is responsible for the efficient and effective delivery of strategic corporate services and business support programs in human resources, finance and performance management. She also leads the delivery of several other corporate functions, including legal, facilities management and web and creative services for multiple agencies under a corporate partnership model.
Prior to her current role, Brenda led the Corporate Services Renewal Taskforce at the Public Service Commission, which was responsible for identifying and implementing recommendations to improve the manner in which corporate services are delivered across all government agencies.
Brenda has held several positions in the public sector over the last 20 years, including key leadership roles in the provision of corporate services.
Brenda has a number of qualifications and accreditations in human resources, workplace health and safety, rehabilitation and risk management, and is a graduate of the Australian Institute of Company Directors.
Relieving arrangements during the reporting period
Both Benn Barr (General Manager, Energy Pricing, Consumer and Retail) and Alan Millis (General Manager, Energy Supply and Regulation) performed the role of Deputy Director-General, Energy during the reporting period. Alan Millis relieved for the period 29 July to 29 November 2013 and Benn Barr relieved for two periods. The first was from 1 July to 26 July 2013 and the second from 26 May to 30 June 2014.
Department of Energy and Water Supply Annual Report 2013–14 14 EMT committees
In accordance with the department’s corporate governance framework, EMT is supported by committees formed to perform specific tasks or assignments.
Finance Committee Role
The Finance Committee is the key governance committee for coordination and implementation of the financial management function within the department.
This committee’s role is to oversee a range of financial management functions, including monthly financial reporting, resource allocation and financial compliance.
Responsibilities
The committee’s responsibilities include:
• monitoring the financial performance of the department against its priorities and approved budgets • ensuring a sound internal control environment is maintained • considering significant projects, transactions and savings initiatives • providing oversight of Queensland Shared Services in terms of financial services, compliance and internal controls • monitoring financial policy development • monitoring the use of financial resources and approving or endorsing budget adjustments.
Membership
Chair Fiona Trenear, Chief Finance Officer Members Benn Barr, General Manager, Energy Pricing, Consumer and Retail Bob Reilly, General Manager, Queensland Water Supply Regulator Judith Thompson, Director, Office of the Director-General Abhijeet Singh, Manager, Financial Services Linda Chalmers, Senior Business Support Officer (Secretariat)
Meetings
This committee meets monthly. It is supported by monthly financial management reporting meetings held with respective finance representatives across the agency.
Key achievements
The committee has:
• provided a structured forum, with representation from all areas of the department, to oversee the preparation of the budget • reviewed and monitored the financial position against the budget 15 Department of Energy and Water Supply Annual Report 2013–14 • considered and discussed reports from the Chief Finance Officer • tracked and managed budget movements for the service delivery statement budget preparation.
ICT Investment and Strategy Committee Role
The ICT Investment and Strategy Committee has been established to:
• ensure the agency’s information and communication technology (ICT) investment and assets are aligned with agency business priorities and plans, and support whole-of-government ICT directions • provide whole-of-agency leadership, strategic direction and oversight in planning and delivering the portfolio of ICT-related initiatives in the agency • provide assurance to the Director-General that information management and ICT in the agency are being appropriately governed to ensure return on investment through effective delivery of approved initiatives that meet government priorities.
Responsibilities
The committee has established reporting requirements to ensure that it receives information relevant to its role. The committee:
• reviews and monitors the agency’s investments in information management systems and technologies to ensure they are managed through appropriate governance processes and deliver stated outcomes and benefits • monitors the health of ICT assets to address areas of risk • authorises and directs the development of strategic and operational plans for ICT-enabled business • prioritises the agency’s investments in information management systems and technologies consistent with the agency’s strategic direction, the ICT Partnership Board and government priorities • scrutinises the delivery of approved and funded project and program allocations, and approves the reallocation of unused funds • escalates significant risks to the ICT Partnership Board and/or the Director-General • monitors information management and ICT service provider arrangements under the Business and Corporate Partnerships, including performance • develops the agency’s information management capability.
Meetings
During 2013–14, the committee met approximately every two months.
Key achievements
The committee has:
• redeveloped the Water Industry Compliance Database to provide a modern information technology solution to support the dam safety regulation, drinking water quality and recycled water incidents functions • completed the mobile service upgrade from Blackberry to iPhone—this upgrade allows the department to achieve cost savings in the longer term and provides better technology to support a more mobile workforce
Department of Energy and Water Supply Annual Report 2013–14 16 • sentenced and disposed of time-expired government-owned corporation records stored at Iron Mountain—using the Queensland State Archives General retention and disposal schedule for administrative records and Energy sector retention and disposal schedule: QDAN 618 v.1, Information and Technology Partners Records Management Services identified 9614 boxes that can be destroyed and 1311 that can be transferred to Queensland State Archives • implemented VOIP and Lync enhanced messaging and conferencing technologies—these contemporary technologies provide the workforce with opportunities to participate in cost-effective and enhanced collaboration and communication across the state • maintained corporate systems for the management of correspondence, finance and human resources, and the provision of information to the public through the department’s website.
Staff Renewal Steering Committee
The Staff Renewal Steering Committee is the body responsible for providing feedback from staff on agency renewal activities. In November 2013, all DEWS staff were invited to be one of two staff representatives on the Agency Renewal Committee. Due to the relatively large number of nominations and the high quality of ideas expressed in the applications, the Staff Renewal Steering Committee was formed.
Role
The role of the committee is to:
• provide staff representatives for Agency Renewal Committee meetings • provide advice and feedback on renewal proposals and activities • seek advice and feedback from staff on renewal proposals • provide advice and feedback on staff engagement in renewal activities.
Membership
Name Role Andrea Wold Manager, Energy Sector Regulation
Brent Cornford Project Delivery Officer, Floods Inquiry Response and Delivery
Daniel Harris Principal Program Manager, Floods Inquiry Response and Delivery
Dinesha Emmery Team Leader, 30 Year Water Plan
Lorelle Hatch Manager, Emergency Response
Tash Hurikino Policy and Legislative Analyst, Water Supply Policy and Economics
Therese Barrett Correspondence Coordination Officer, Ministerial and Executive Services
Vourn Lutton Principal Planner (Water Security), Water Supply Planning
Sophie Guest Principal Economic Analyst, Water Supply Policy and Economics
Lau Saili Principal Advisor, Networks and Demand Response
Zhivana Marks Policy Officer, Industry Services and Emergency Response
Kathie Standen (project sponsor) Director, Renewal
Melissa Bowerman (advisor) Manager, Corporate Communications
Ashley Bacon (advisor) Manager, Human Resources
Rachael Georgieff (secretariat) Project Officer, Renewal 17 Department of Energy and Water Supply Annual Report 2013–14 Meetings
Since its inception in November 2013, the committee has met formally nine times in 2013–14, with out-of-session meetings held when required.
Note:
In 2013, the Human Resource Management Committee and Work Health and Safety Governance Committeewere disbanded. As DEWS is a small agency, the decision was made that the subject matter of these two committees would be more efficiently addressed as agenda items at EMT and Audit and Risk Committee meetings.
Other committees
Agency Consultative Committee
The committee is co-chaired by the Executive Director of Human Resources and Communications, and an employee representative from the unions. It includes management representatives from across the department.
Together Queensland, the Industrial Union of Employees and the Association of Professional Engineers, Scientists and Managers Professional Australia were represented by union delegates who are employees of the department. Officials from both unions attend in an ex-officio capacity.
The role of the committee is to provide a forum to discuss a broad range of employee issues and provide an avenue for consultation between the department and unions. This includes ensuring the department implements and complies with all relevant arrangements under the Industrial Relations Act 1999, the Public Service Act 2008 and the State Government Departments Certified Agreement 2009 (the Core Agreement).
The committee met regularly and was the primary forum for consultation on the department’s current and emerging industrial issues, workforce strategy and organisational change issues.
Agency Renewal Committee
In September 2013, Cabinet approved the Whole-of-Government Integrated Renewal Plan (incorporating Commission of Audit implementation) and contestability framework. Cabinet also approved a governance and monitoring framework for the oversight of the renewal agenda across and within agencies. One component of the approved governance framework was the establishment of an Agency Renewal Committee, chaired by the Minister. In November 2013, the DEWS Agency Renewal Committee was formed and is the governance body overseeing delivery of DEWS renewal activities.
Department of Energy and Water Supply Annual Report 2013–14 18 Membership
Chair Hon Mark McArdle, Minister for Energy and Water Supply Deputy chair Dan Hunt, Director-General Members Ken Sedgwick, Deputy Director-General, Water Supply Karen Masnata, Deputy Director-General, Energy Brenda Parker, Deputy Director-General, Business and Corporate Partnerships Ross Musgrove, Chief Operating Officer and Deputy Director-General, Public Sector Renewal, Department of the Premier and Cabinet Alex Beavers, Deputy Under-Treasurer, Queensland Treasury and Trade Professor Paul Simshauser, Chief Economist and Group Head of Corporate Affairs, AGL Rowena McNally, Chair, Mount Isa Water Board Kathie Standen (secretariat), Director, Renewal Andrea Wold (Staff Renewal Steering Committee representative) Sophie Guest (Staff Renewal Steering Committee representative)
Meetings
The committee met three times during 2013–14.
Business and Corporate Partnerships Board
The Business and Corporate Partnerships Board is comprised of the Directors-General of the six agencies within the partnership—DEWS; DNRM; the Department of Tourism, Major Events, Small Business and the Commonwealth Games; the Department of Agriculture, Fisheries and Forestry (DAFF); the Department of Environment and Heritage Protection (EHP); and the Department of National Parks, Recreation, Sport and Racing.
The partnership operates through three corporate hubs embedded in DAFF, DNRM and EHP. Each hub delivers a set of core services (to the host and one adjunct agency) and a selection of cooperative services (to either five or six partnering agencies). The head of corporate for each Business and Corporate Partnerships (BCP) hub is also represented on the BCP board.
The board is collectively responsible for the long-term performance, business success and timely delivery of departmental key priorities within the BCP. Its role is to provide leadership and set the strategic direction of the partnership to enable it to meet its goals and objectives.
The partnership provides direct corporate services to support partnering agencies deliver government priorities. Under this model, the focus is on ensuring economies of scale, service integration, consistent service delivery, scalability, flexibility and responsiveness. 19 Department of Energy and Water Supply Annual Report 2013–14 Governance management
Public Sector Renewal Program
In July 2012, the Public Sector Renewal Program commenced. The program aims to deliver on the government’s vision to transform the Queensland Public Service—to be more efficient, deliver better outcomes for the community and achieve the best value for money for government services.
The program is being overseen by the Public Sector Renewal Board and the Renewal Oversight Committee.
DEWS Renewal Program
In October 2013, the DEWS renewal team was formed. This team’s role is to guide and implement renewal within the department. The Director of Renewal, reports directly the Director-General.
A key component of the team’s work is to review all functions in DEWS. The objective is to ensure that DEWS is focusing resources in the correct areas to realise benefits for Queensland’s energy and water consumers. For the 2013–14 year, the DEWS renewal team completed 16 reviews on functional areas within the department, with the remainder to be completed in the first quarter of 2014–15. Once all reviews have been completed, EMT will look at future delivery options, which will inform the development of the future catalogue of services.
The DEWS Renewal Program has also focused on redesigning the way in which the department relates to customers. Through process redesign projects, work units are identifying ways to improve the customer’s experience of the department.
Supporting the DEWS Renewal Program is the Agency Renewal Committee and the Staff Renewal Steering Committee.
Blueprint
In the 2013–14 year, the renewal team commenced the development of a draft blueprint for DEWS. The blueprint is a key part of the DEWS Renewal Program and sets out how we will operate in the future to deliver better outcomes for our customers. The blueprint focuses on three key areas that will enable the department to become more consumer-centric:
1. engage—demonstrating our intention to involve customers in our decision-making and reach them effectively 2. evidence and evaluation—obtaining and using customer information and intelligence to develop and review policy settings 3. effective partnering and communication—understanding the issues affecting customers and working with our partners to simplify processes for customers.
The departmental blueprint will be finalised early in the 2014–15 year, after consultation and input from a departmental committee and all staff (through a series of workshops and other forums).
Department of Energy and Water Supply Annual Report 2013–14 20 Commission of Audit
DEWS is responsible for leading five Commission of Audit recommendations.
Recommendation Description 12 For the period that they remain in government ownership, electricity distribution and transmission businesses be required to achieve higher rates of return through increased efficiencies, better capital management and operational cost savings
14 The uniform tariff policy and supporting Community Service Obligations arrangements be refined over time to target the most needy consumers, reduce costs and volatility, and support wider retail competition in Queensland, for example, by the introduction of a tariff band
26 SunWater finalise the transfer of its irrigation channels to private irrigators and withdraw fully from this activity
28 SunWater remain as a government-owned corporation with a residual function to retain ownership and management of existing bulk water assets in regional Queensland
29 Any future bulk water storage facilities be developed by the private sector, unless there are compelling public good or market failure reasons not to do so (not directed at SEQ)
Work is underway on all five recommendations and are on track for delivery. DEWS is also working with our government partners to deliver a further eight recommendations.
Legislation and other government bodies
Legislation administered
As at 30 June 2014, legislation administered by the department is listed in Appendix 2.
Statutory authorities and instrumentalities
A schedule of energy and water supply statutory authorities and instrumentalities, including their reporting arrangements, is provided in Appendix 3.
Government-owned corporations
A schedule of energy and water supply government-owned corporations, including their reporting arrangements, is provided in Appendix 4. 21 Department of Energy and Water Supply Annual Report 2013–14 Governance—risk and accountability
Risk management
DEWS is committed to risk management as a cornerstone of its overarching governance framework. The risk management policy and procedure, which aligns with standard AS/NZS ISO 31000:2009: risk management—principles and guidelines, outlines the principles and responsibilities for risk management across the department.
Effective risk management ensures we can make informed decisions, meet our compliance obligations, improve stakeholder relationships and ensure the safety and wellbeing of employees and others.
Six strategic risks were identified for inclusion in the department’s 2013–17 strategic plan:
1. failure to execute sustainable solutions to reduce the pressure on cost of living 2. energy markets and water supply are not competitive or sustainable 3. failure to plan for and provide appropriate advice and responses to energy and water emergencies 4. stakeholders are not effectively engaged 5. lack of critical capability and capacity 6. major incidences of fraud and/or corruption.
Options have been developed to manage these strategic risks and their progress was reported quarterly to the EMT and the Audit and Risk Committee as a priority.
External scrutiny
The Queensland Audit Office (QAO) Results of audit: internal control systems—report to Parliament 6: 2013–14 identified that the three key internal control mechanisms listed below required various degrees of strengthening across a number of government departments:
1. Chief Finance Officer certification—improvements could be made in the design of processes by better documenting how the process will work, consulting earlier with the Director-General and clearly aligning and describing the significant financial reporting risks with relevant account balances and with the key internal controls being assessed 2. internal audit—a documented and approved internal audit work plan should be established, better allocation of internal audit resources, and long outstanding high risk internal audit issues should be addressed by management on a timely basis 3. audit committee oversight—at least half of the members of an audit committee should be independent.
The above recommendations have all been addressed by the department.
Department of Energy and Water Supply Annual Report 2013–14 22 The QAO Monitoring and reporting performance—report 18: 2013–14 examined how departments measure, monitor and publicly report on their non-financial performance. We assessed the performance information in their service delivery statement from the 2013–14 State Budget papers. This report was only tabled in Parliament on 26 June 2014, so the department will work on implementation of the recommendations in 2014–15.
The QAO Results of audit: water sector entities 2012–13—report to Parliament 7: 2013–14 identified that the DEWS performance reporting framework should include the measures of financial sustainability used in the report for Seqwater, SunWater, Queensland Urban Utilities, Unitywater, Gladstone Area Water Board and Mount Isa Water Board. The department should also encourage these six entities to self-report against these measures of financial sustainability while the performance reporting framework is being developed.
The department has incorporated the QAO proposed financial sustainability measures into the key performance indicator reporting framework. The proposed financial sustainability indicators are currently being reviewed to assess whether they should be included in the six public sector water entities’ annual planning documents and/or financial monitoring reports.
The QAO Results of audit: energy sector entities 2012–13—report to Parliament 9: 2013–14 identified that the department and Queensland Treasury and Trade should include the indicators of financial sustainability used in the report in their performance reporting framework.
The department and Queensland Treasury and Trade are currently reviewing the proposed measures, most of which (or near equivalents) are already included in the department’s performance monitoring framework.
The QAO Contract management: renewal and transition—report to Parliament 10: 2013–14 identified that all public sector entities should:
• develop and implement a contract management capability framework • develop and apply a risk/value matrix approach to define expectations for effective contract management and appropriate resource allocation to contracts • validate the value-for-money proposition of a contract before extending or renewing it, through assessment of contract risk, demand, supply market and supplier performance • implement a contract management life cycle system.
The Procurement Transformation division’s Procurement Transformation Program is currently underway to address the above recommendations.
The QAO Traffic management systems—report to Parliament 5: 2013–14, which was not targeted specifically at DEWS, was forwarded to the department for review and implementation of any beneficial recommendations.
The Crime and Misconduct Commission did not conduct a specific review of the department’s handling of misconduct matters in 2013–14, but undertook their normal monitoring processes. The department also helped the Office of the Queensland Ombudsman fulfil its function by providing information as requested in relation to a limited number of matters. 23 Department of Energy and Water Supply Annual Report 2013–14 Ombudsman’s audit of the complaints management system
For the period 1 July 2012 to 30 June 2013, DEWS participated in a voluntary audit of its Complaints Management System, undertaken by the Queensland Ombudsman.
The audit reviewed and evaluated the department’s:
• complaints management policies and procedures • external visibility and accessibility (website) • internal communications and training • complaints resolution • internal reporting • monitoring effectiveness • external reporting.
On 29 October 2013, the Queensland Ombudsman provided a copy of its audit report to the department.
In responding to the audit, DEWS noted that as a very small department it received one service delivery complaint during the 2012–13 year. For this reason, the audit largely focused on the policy and procedural framework that governs the management of service delivery complaints. The department accepted the audit recommendations, noting that considerations of best practice were already inherent in its policies and procedures.
The Queensland Ombudsman acknowledged DEWS response to the audit and made no further comments nor took any further action.
Audit and Risk Committee
The Audit and Risk Committee was established in accordance with section 35 of the Financial and Performance Management Standard 2009. The committee met six times in the period 2013–14. The committee observed the terms of its charter having due regard to the Audit Committee guidelines: improving accountability and performance issued by Queensland Treasury (June 2012).
The committee is directly responsible to the Director-General in discharging its responsibilities. It has the authority to:
• conduct or authorise investigations into matters within its scope of responsibility • access information, records and personnel of DEWS to conduct investigations • request the attendance of any employee, including executive staff, at Audit and Risk Committee meetings • conduct meetings with DEWS internal auditors and external auditors as necessary • seek advice from external parties as necessary. The committee acts as a forum for dialogue between the Director-General, senior management, Internal Audit and the QAO.
The functions and role of the committee do not diminish the statutory and regulatory duties and responsibilities of the Director-General, nor do they detract from management’s responsibilities in relation to corporate governance, internal control, fraud prevention and risk management.
Department of Energy and Water Supply Annual Report 2013–14 24 Membership
Name Role Peter Dowling Independent external member (Audit and Risk Committee chair)
Patrice Sherrie Independent external member
Alan Millis General Manager, Energy Supply and Regulation (member)
Ken Sedgwick Deputy Director-General, Water Supply (member)
Until 31 December 2013, Susan Rankin also served as an external member (Audit and Risk Committee chair).
Committee members were provided with recommendations arising from QAO reports to Parliament that relate to the department. During 2013–14, 15 recommendations were actioned and closed. As at 30 June 2014, two recommendations remain open.
During 2013–14, the three external members of the committee received total remuneration of $11 400.
Internal audit
On 12 June 2012, the formation of the Queensland Government Internal Audit Service (QGIAS) was approved as a result of restructures to government departments. QGIAS is a business unit within the Department of Environment and Heritage Protection and provides internal audit services to five departments as part of the BCP.
The role, the operating environment and operating parameters of QGIAS are established in the Internal Audit Charter that has due regard to professional standards.
Purpose
QGIAS provides independent assurance and advice to the Director-General, senior management and the Audit and Risk Committee. It enhances the department’s corporate governance environment through an objective, systematic approach to evaluating the effectiveness and efficiency of corporate governance processes, internal controls, risk assessment and management practices. This is in keeping with the roles and responsibilities detailed in the Financial Accountability Act 2009.
QGIAS reports regularly to the Audit and Risk Committee.
The internal audit function is independent of management and external auditors.
In 2013–14, QGIAS:
• discharged the responsibilities established in the charter by executing the internal audit program of work developed through extensive consultation with the department’s senior executives and QAO, and QGIAS analysis of the department’s strategic objectives, operational and risk documents and other relevant documents from across the public and private sector • provided reports on results of internal audits undertaken to the Audit and Risk Committee and Director-General 25 Department of Energy and Water Supply Annual Report 2013–14 • monitored and reported on the status of implementation of internal and external audit recommendations to the Audit and Risk Committee (management is responsible for implementation of audit recommendations) • liaised with QAO to ensure there was no duplication of ‘audit effort’ • supported management by providing advice on corporate governance and related issues, including fraud and corruption prevention programs and risk management • allocated internal audit resources to those areas considered to present the greatest risk and where the work of internal audit can be valuable in providing positive assurance or identifying opportunities for positive change • provided secretariat support to the Audit and Risk Committee.
Major achievements
In 2013–14. QGIAS:
• completed the prioritised audits under the Internal Audit Plan 2013 –– financial delegations review –– Energy Sector Incentive Scheme close out • completed the $80 South East Queensland water rebate review • finalised the DEWS Strategic Internal Audit Plan—January 2014 to June 2015 • completed the finance function health check, improvements to end-of-month and end-of-year financial reporting review, and the recordkeeping practices review under the DEWS Strategic Internal Audit Plan—January 2014 to June 2015 • instigated a knowledge and information sharing forum across our customer agencies.
QGIAS activities include:
• financial, compliance and operational reviews • information system and data integrity reviews • special review assignments as requested by management.
These activities are undertaken having regard to the International standards for the professional practice of internal auditing.
QGIAS staff members belong to professional bodies, including the Institute of Internal Auditors, CPA Australia and the Information Systems Audit and Control Association. The department continues to support the ongoing professional development of internal audit staff.
QGIAS considers there are controls in place to minimise the opportunity of fraud or mismanagement in those areas of the department that were subject to internal audit in terms of the program of internal audits as approved by the Director-General.
Department of Energy and Water Supply Annual Report 2013–14 26 Governance—human resources
Public Sector Ethics Act 1994
During 2013–14, the department increased employee awareness and understanding of the code of conduct for the Queensland Public Service via numerous communication mechanisms, including staff bulletins, intranet news articles and face-to-face communication. Employees could also access the code on the departmental intranet site. All new employees were required to complete the online course ‘Code of conduct and ethical decision-making’ as part of their induction, and existing employees were required to undertake online refresher training. This education and training was accessible to all employees in accordance with section 12K of the Public Sector Ethics Act 1994.
All employees were given access to education and training in public sector ethics and ethical decision- making in accordance with section 12K of the Public Sector Ethics Act 1994, and targeted face-to-face training was provided for middle managers in relation to exercising managerial discretion.
The department continues to build on and refine its integrity framework of policies, protocols and fact sheets to guide employees in their day-to-day duties and clarify the expectation of staff conduct. The importance of ethical conduct and ensuring employees are aware of appropriate behaviour standards continues to be a key element within employee performance and development agreements. In addition, to continue to support and develop a culture of high performance, managers and supervisors are offered performance leadership coaching support to start changing the way the department measures, manages and rewards performance.
The department maintains a specialist team of human resource practitioners to advise and assist managers to address any shortfalls in employee behaviour, including the undertaking of disciplinary action where warranted. 27 Department of Energy and Water Supply Annual Report 2013–14 Queensland public service values
DEWS will deliver We will implement DEWS will be the best Innovation in The leadership policy and regulatory new and innovative water supply and ideas and policy team will lead by ideas to help ease solutions to reform energy department in development example and set a the cost of living and help develop Australia which other in DEWS will clear vision for the pressures of water the energy and water states benchmark be supported, future to enable and energy users in sectors over the next themselves against. DEWS staff to deliver encouraged and Queensland. 30 years. real outcomes for rewarded. Queensland energy and water users.
What they mean for DEWS
DEWS is committed to recognising and embedding the public service values, and associated behaviours of our own people within the agency to promote a culture that will support ‘being the best’.
DEWS has a range of initiatives in place to create a committed culture of empowerment and satisfaction;engaging our people is pivotal in realising the department’s strategic priorities and reform commitments. Staff have been engaged with via the departmental newsletter, Director-General messages, staff forums, and communications from senior executives and the Staff Renewal Steering Committee. This committee acts as a conduit between staff and EMT, and encourages our people to be courageous, innovative and put their ideas into action—qualities that enable a more comfortable transition for the agency’s reform activities.
This is clear in the department’s Volunteer Program, which enables employees to feel empowered to volunteer their time and skills within the community in areas of interest, as well as supporting the development and retainment of high-level skillsand capabilities.
Workforce planning, attraction, retention and performance
During 2013–14, Human Resources partnered with business units to develop strategies and programs to further enhance the capability and skills of our workforce. This partnership supports the successful delivery of our services and enables the initiatives of the department’s Reform Program.
Internal capability and talent development programs—including the development of a high performance and capability framework, relieving opportunities and internal collaboration initiatives—enabled retention and succession strategies for critical expertise and skills within our workforce. Further, specialist advertising campaigns were undertaken to attract and secure the specialist technical expertise required for our hard-to-fill roles and newly identified workforce requirements.
Department of Energy and Water Supply Annual Report 2013–14 28 The department’s recently developed Strategic Workforce Plan will further enable the successful attraction, development and retention of its workforce as critical business reform takes place. The workforce plan will work in collaboration with the department’s blueprint and Reform Program to ensure that DEWS attracts the right people and develops and retains our existing talent. It focuses on addressing workforce capacity and capability issues, empowering leadership, encouraging and rewarding our workforce, and identifying challenges and critical demographic elements that exist in our population and job market in order to enable our workforce to be responsive to any change.
DEWS also introduced the Staff Renewal Steering Committee to build-in opportunities for staff to engage in resolving strategic issues for the department and shaping a workplace of the future. This has provided greater buy-in to workforce strategy and a broader perspective to problem-solving.
Workforce profile
As at 30 June 2014, DEWS employed 231.4 full-time equivalent staff.
Unplanned leave
The final average rate for the sector during the 2013–14 period was 4.2 per cent, with DEWS at 3.7 per cent.
Performance and development agreements
All senior executive services officers within DEWS have completed performance and development agreements (PDAs) in the 2013–14 period. PDAs for the remainder of officers are maintained and managed by the divisions. Human Resources offered PDA sessions as part of the Leadership in Practice Program, to impress the importance and significance of establishing an agreement in consultation with supervisors.
Staff engagement
The Working for Queensland Employee Opinion Survey overall participation rate for DEWS in 2013 was 74 per cent, compared to the overall participation rate of 80 per cent in the 2014 survey (a 6 per cent increase).
Permanent separation rate
The implementation of the whole-of-government business renewal initiative, the ending of temporary contracts, resignation and retirements led to a 10.05 per cent permanent separation rate for DEWS for 2013–14.
Employee performance management
Upon commencement with the department, all employees are required to undergo comprehensive induction training, to ensure that their obligations and responsibilities as public service employees are articulated and fulfilled. 29 Department of Energy and Water Supply Annual Report 2013–14 The leaders within our organisation play a crucial role in actively supporting individuals and teams by encouraging a culture of innovation and continuous improvement, underpinned by individual PDAs and development opportunities. The department uses the sector-wide executive performance development framework developed by the Public Service Commission to assist senior executive service officers to meet and maintain the delivery of their responsibilities, as well as driving the government’s reform agenda and departmental commitments. In addition, performance leadership coaching support is delivered to managers and supervisors to begin changing the way performance is managed and measured (this provides linkages to creating a culture of rewarding and recognising staff).
Work–life balance
The department recognises the importance of flexible work arrangements and ‘family-friendly’ work practices as a contributor to maintaining a diverse, adaptive and high-performing workforce. Under existing policy, employees have the ability to utilise job-sharing, part-time employment, phased retirement, telecommuting and accrued leave time.
The department’s policy on flexible working arrangements is published on the intranet and is accessible to all employees. With the revision of the departmental hours of work policy, the opportunity to further promote flexible work arrangements was done via intranet news items, departmental bulletins and through staff meetings.
Leadership and management development
The agency is committed to transitioning and achieving a culture of high performance and exceptional service delivery in line with the public service values. To attain this, development at all levels is imperative. The department has developed a high performance and capability framework, with an anticipated launch date of September 2014. The creation and development of a leadership cohort with aligned leadership values and behaviours is seen as the underlying foundation.
The department offers, and will continue to offer, a range of initiatives as part of a strategy for leadership transition. These include targeted development programs to align leadership behaviours, Leadership in Practice sessions, middle management development programs and the 3600 Executive Feedback Program.
Industrial and employee relations
The department maintains a comprehensive suite of policies, protocols and fact sheets developed through internal and external consultative processes to provide guidance on employee entitlements and resolving issues that may arise in the workplace. Additionally, ongoing consultative discussions are held with Together Queensland, the Industrial Union of Employees and Professional Australia through regular formalised meetings of the Agency Consultative Committee.
Essentially, the role of the committee is to ensure that the department implements and complies with all relevant arrangements under the Industrial Relations Act 1999, the Public Service Act 2008 and the State Government Departments Certified Agreement 2009 (the Core Agreement), with particular focus placed on current and emerging industrial issues, workforce strategy and organisational change issues.
Early retirement, redundancy and retrenchment
During the 2013–14 period, two employees received redundancy packages at a cost of $326 723. Employees who did not accept an offer of a redundancy were offered case management for a set period of time, where reasonable attempts were made to find alternative employment placements.
Department of Energy and Water Supply Annual Report 2013–14 30 Governance—information management
Information systems
DEWS continues to operate, maintain and develop a range of information systems to support services, initiatives and corporate operations. Highlights include the following:
• The gas electricity certificates system (the system to track the Queensland Gas Scheme) is currently being decommissioned due to closure of the program. The closure of the Queensland Gas Scheme was approved by the Queensland Government as part of the Red Tape Reduction Program. Information and Technology Partners has developed a reporting database to assist with queries on the scheme in future years. Decommission of the current database will save DEWS around $200 000 per year in hosting costs. • The Water Industry Compliance Database replacement project is now in stage four. Detailed business requirements for the dam safety component have been finalised and a request for information developed. • On 17 June 2014, the dam safety regulation request for information (DEWS0614) was released to the market and closed on 7 July 2014. The evaluation panel is now in the process of evaluating responses.
Recordkeeping
DEWS is operating a recordkeeping strategy to ensure the department is compliant with the Public Records Act 2002, Public Service Act 2008 and Information Standard 40—Recordkeeping.
The Records Management unit is responsible for providing a compliant recordkeeping framework to the department through the provision of an electronic document and records management system (eDRMS), training, support and an end-to-end processing model. The department has audited the recordkeeping framework.
A single consolidated recordkeeping platform has been implemented for the department and legacy recordkeeping systems have been migrated into the recordkeeping platform. Data from RecFind, the QWCTRIM system and the Keeper system is available through the corporate eDRMS. E-learning packages and digital conferencing facilities have been used to deliver ongoing training. Business areas are increasingly moving to capture and manage records in digital format, and are minimising the production of paper-based records.
The Appraisal and Disposal Program identifies time-expired records for disposal. Over 9000 boxes of files have been identified for disposal. The program also identifies and prepares permanent records for transfer to Queensland State Archives. A significant program of work has been completed to assess inherited legacy records for which the department has responsibility. Work has commenced on updated retention and disposal schedules for the department. 31 Department of Energy and Water Supply Annual Report 2013–14 Open data
The open data initiative is about making Queensland Government data and information more open, transparent and accessible. This will encourage the private sector to develop innovative new services and solutions.
The department is committed to releasing as much data as possible in an easy-to-find and accessible manner. Released data is free and made available under the least restrictive licence, allowing for its use and re-use. Where practicable, the department publishes data in machine-readable formats that can be downloaded, indexed and searched by commonly used web applications.
The following three annual reporting requirements are now available through the Queensland Government open data website (www.data.qld.gov.au):
• consultancies • Queensland cultural diversity policy • overseas travel.
See Appendix 6 for a full listing of DEWS open data published datasets.
Department of Energy and Water Supply Annual Report 2013–14 32 Agency objectives and performance indicators
Objective 1: Cost-effective, safe, secure and reliable energy and water supply
Energy
Our performance
Release of PowerQ
On 20 June 2014, the Queensland Government published PowerQ: a 30-year strategy for Queensland’s electricity sector.
The strategy was developed following extensive consultation with Queenslanders, consumer advocates, electricity market participants (e.g. generators, retailers, network businesses) and industry representatives.
The strategy is structured around a joint accountability model, reflecting the important roles of consumers, the electricity market and government. It sets out 8 strategies and more than 40 actions that the government will put in place over the short, medium and long term.
PowerQ will be delivered by working with industry and consumer advocates (with input from an expert panel) to ensure Queensland can respond and adapt to emerging market challenges and opportunities.
Disaster management
Two cyclone systems crossed the Queensland coastline between January and April 2014, affecting Ergon Energy’s network and customers.
At 3.30 am on 31 January 2014, Tropical Cyclone Dylan (category 2) crossed the Queensland coast at Hideaway Bay, south of Bowen. Close to 49 000 customer power outages were recorded, mostly in Ingham, Townsville, Proserpine, Mackay, Moranbah, Clermont and Emerald. Within 24 hours of the cyclone crossing the coast, fewer than 100 affected customers remained off supply. 33 Department of Energy and Water Supply Annual Report 2013–14 At 11.00 pm on 11 April 2014, Tropical Cyclone Ita (category 4) crossed the Queensland coast at Cape Flattery, near Cooktown. The cyclone generated damaging winds and heavy rainfall between Cooktown and Mackay, and caused localised flooding in the Ingham area. Electricity supply to around 46 000 customers was affected at some stage, mostly in Cooktown, Wujal Wujal, Ayton, Bloomfield, Rossville, Hopevale, Mossman, Daintree, Cairns, Innisfail, Ingham, Townsville, Proserpine and Mackay. Within five days of Tropical Cyclone Ita crossing the coast, all customers that could be safely reconnected had been, with less than 50 remaining off supply pending inspection or repairs by an electrical contractor.
Solar Bonus Scheme review
In March 2013, the Queensland Competition Authority forecast the Solar Bonus Scheme would cost $3.4 billion by 2028. The scheme is funded by electricity distributors Ergon Energy and Energex, which pass the cost on to the energy bills of all Queenslanders.
The funding model for customers not on the 44 cent feed-in tariff has been reformed. Electricity retailers, not the distributors, now pay for feed-in tariffs at prices that reflect the market value of solar energy. This means feed-in tariff payments to new solar power customers no longer push up the price of electricity. Customers on the 44 cent feed-in tariff will continue to have the contracts they entered into honoured, provided they maintain their eligibility for the scheme.
Future direction
PowerQ
Critical early actions include seeking productivity improvements to contribute to the stabilisation of electricity prices, reviewing the Electricity Act 1994 to reduce red tape and promote a modern and efficient market, and ensuring policy and regulatory settings encourage innovation and enable the deployment of new technologies that provide benefits to consumers and build on Queensland’s unique strengths.
To deliver these actions, DEWS, with input from an expert panel, will work with industry, consumer advocates and other stakeholders to ensure Queensland can respond and adapt to emerging market challenges and opportunities.
In addition, DEWS is working alongside the Public Sector Renewal Board to ensure its resources and strategic planning are focused on priority areas.
In 2015–16, DEWS will deliver the following PowerQ actions:
• action 1.2—identify opportunities for productivity improvements • action 1.3—support consumer advocacy • action 2.1—adopt national consumer protections and retail standards • action 2.2—increase consumer engagement in the electricity market • action 3.1—stimulate retail electricity markets by removing price regulation in South East Queensland subject to meeting certain preconditions, and investigating options to provide increased competition in regional areas • action 3.2—review the potential impacts of opportunities from new technologies • action 7.3—emphasise whole-of-system electricity productivity as a policy objective.
Each project will be developed to deliver the best possible outcome for Queensland consumers.
Department of Energy and Water Supply Annual Report 2013–14 34 Water supply
Our performance
Release of WaterQ
June 2014 saw the release of WaterQ: a 30-year strategy for Queensland’s water sector. WaterQ’s vision is for a water sector that supports increased productivity, economic growth, strong and healthy communities, and a natural environment that is valued.
It establishes the necessary long-term framework to deliver safe, secure and affordable water supplies into the future.
WaterQ identifies seven strategic priorities:
1. empowering customers and community education 2. equity and affordability 3. efficient use of water 4. responsible and productive water management 5. skilled and sustainable water sector 6. smart regulation that attracts private sector investment 7. innovative technology and infrastructure.
As a whole-of-sector 30-year strategy, it will be continually adjusted to reflect changing community needs.
Water security in South East Queensland
The department released a discussion paper on water security in South East Queensland, reviewing level-of-service objectives.
Level-of-service objectives help minimise the risk of water supply security issues for South East Queensland by specifying the long-term water supply requirements to be facilitated though Seqwater’s supply planning.
A review of the desired level-of-service objectives was undertaken to examine options that facilitate appropriate investment in the bulk water supply system—by providing more flexibility to optimise existing assets and adopting a more adaptive planning approach that aligns with community expectations.
After consultation and considering a range of public submissions on the discussion paper, this review culminated in a revised set of level-of-service objectives prescribed by regulation. 35 Department of Energy and Water Supply Annual Report 2013–14 Drinking water quality risk assessments
Under the Water Supply (Safety and Reliability) Act 2008, all drinking water service providers are required to have drinking water quality management plans in place. These plans are risk-based and identify processes and procedures to manage water quality risks, incidents and monitoring. These plans are assessed and approved by the department.
All drinking water quality plans have been assessed and approvals have been issued where they met the appropriate standards.
Work is continuing with the other service providers, with a view to having all plans approved in 2014–15.
Dam optimisation studies
The department released the Wivenhoe and Somerset dams optimisation study and North Pine Dam optimisation study, which assessed options aimed at better protecting homes and businesses from major flood events in the future.
The studies were undertaken by the government to implement recommendations of the QFCOI.
They investigated the operational options (including various full supply levels combined with different gate operations) to improve flood mitigation outcomes.
The studies assessed trade-offs between potential flood mitigation benefits, water supply security, community access and environment considerations.
From April to June 2014, public consultation meetings were held across various locations in South East Queensland.
In October 2014, final reports will be submitted for government consideration, with any approved changes to be implemented for this coming summer wet season.
Future direction
WaterQ
WaterQ actions require skills, expertise and investment from all levels of government, the private sector, research organisations, service providers and the community.
There are over 170 service providers in Queensland delivering water to our homes, businesses, industries, farms and mines.
Across the sector, there are a number of challenges that are affecting the ability to deliver water and sewerage services effectively. These relate predominantly to service provider size and location, population growth and climate variability.
To help identify innovative technologies and solutions to improve resilience, reliability and quality in the delivery of water and sewerage services, the department is establishing an industry-led innovation panel—a Water Expert Panel.
Department of Energy and Water Supply Annual Report 2013–14 36 A Strategic Advisory Committee will also be established to oversee the implementation of WaterQ. It will also support the five yearly reviews of the strategy. This will ensure the strategy remains ‘live’ over the 30-year horizon.
The department will also continue to work closely with key stakeholders during the implementation phase.
Dam optimisation studies
In response to community feedback, the department is reviewing the preferred operational options in the Wivenhoe, Somerset and North Pine dams optimisation studies.
The final reports will present the completed optimisation studies, including the outcomes of community feedback.
The government will decide the best balance of flood mitigation, water supply security, protecting the dams and flood impacts.
The optimised operations will be implemented by amendments to the dams’ flood mitigation manuals for this coming summer wet season.
Regional water supply security assessments
Significant population growth in many major urban centres across Queensland continues to place pressure on regional water supplies, and some local governments have requested assistance with water supply security planning.
WaterQ highlights a key action for the Queensland Government—to undertake water supply security assessments for potential high-growth regions.
The regional water supply security assessments (undertaken in partnership with the local water service provider) are aimed at assisting local service providers in their water supply planning activities and to develop a shared understanding of the challenges ahead.
These assessments seek to provide a regional context of water security and develop a shared understanding of the potential water security risks the community faces in the short, medium and longer term.
The department will facilitate a rolling program of regional water supply security assessments over the coming three years. Rockhampton, Mount Isa, Cairns and Townsville have been chosen for the first round of assessments based on a prioritisation methodology. 37 Department of Energy and Water Supply Annual Report 2013–14 Objective 2: Effective reform
Energy
Our performance
Competitive electricity market
Queensland is a diverse state that is nearly five times the size of Japan and seven times the size of Great Britain. This size creates not only different lifestyles, but different market dynamics. One key difference is that competition in regional Queensland’s retail electricity market is currently not as strong as it is in the south-east.
To capture the advantages of the competitive market while protecting customers in regional Queensland, reform to the Solar Bonus Scheme created two different feed-in tariff systems across the state.
To make sure regional Queenslanders were not disadvantaged by this change, Ergon Energy has been mandated to pay a feed-in tariff to its customers. In South East Queensland, a number of electricity retailers already voluntarily offered feed-in tariffs as part of their competition for customers. In established markets like this, there is often no need for ongoing price intervention as it can stifle competition.
Soon after deregulation took place, one retailer introduced three new energy contracts offering various discounts and feed-in tariff rates.
Australian Energy Market Commission cost recovery
On 21 May 2014, the Queensland Parliament passed the Electricity and Other Legislation Amendment Bill 2014, which included amendments that provide for the Queensland Government to recover future funding contributions to the Australian Energy Market Commission from the utility and gas industries.
The commission is the rulemaker for the national energy markets and provides strategic advice on market development issues. Their work impacts directly on policy and regulatory settings, including electricity price outcomes.
In future, the cost of Queensland’s annual contribution to the commission’s funding (approximately $4.4 million) will be borne by those who benefit directly from a well-regulated national energy market. This is consistent with best-practice regulation principles, and brings Queensland in line with other states and territories that already recover the cost of national regulation from industry.
The levy is to be recovered from regulated electricity and gas transmission companies in accordance with the division of the commission’s work between electricity and gas matters. Recovering the funds from the transmission companies is administratively the simplest point at which to recover the levy, but costs can be passed through to other market participants and their customers, who also ultimately benefit from the commission’s work.
Department of Energy and Water Supply Annual Report 2013–14 38 The government continues to seek value for money from the commission and is on the Council of Australian Governments’ Energy Council Standing Council on Energy and Resources (with other jurisdictions), working to ensure its continued efficiency and effectiveness.
Electricity sector reform
On 20 May 2014, the National Energy Retail Law (Queensland) Bill 2014 and the Electricity Competition and Protection Legislation Amendment Bill 2014 were introduced into the Queensland Legislative Assembly. The Bills provide for the introduction of market monitoring and the commencement of the National Energy Customer Framework (NECF) in Queensland from 1 July 2015.
As part of its response to the final report of the Interdepartmental Committee on Electricity Sector Reform, the government conditionally agreed to adopt the NECF. Commencement of the NECF in Queensland is a key reform initiative to ensure customers across Queensland are appropriately protected, while supporting the government’s commitment to increasing retail competition and removing price controls in South East Queensland by 1 July 2015.
The proposed adoption of the framework in Queensland will repeal separate retail licensing, reporting and customer protection regimes in favour of a nationally harmonised regime covering both electricity and gas. Simplifying the way states and territories regulate energy retail operations across borders will create efficiencies for retailers and reduce regulatory compliance costs, thereby contributing to increased retail competition and reduced cost pressures.
The NECF brings improvements like a better safety net for vulnerable customers and a general bolstering of protections for gas customers. Further strengthening of protections for Queenslanders will be achieved through additional requirements on retailers to provide advanced notification to customers when a fixed benefit is about to end and prior notice if prices are to rise.
Release of PowerQ
The PowerQ strategy addresses current issues affecting the electricity industry as well as future challenges. These challenges include price rises, poor asset utilisation, a changing generation mix and a linear supply system that is ill-equipped to respond to changes in demand and technology.
The strategy is structured around a joint accountability model, reflecting the important roles of consumers, the electricity market and government. It sets out 8 strategies and more than 40 actions that the government will put in place over the short, medium and long term.
Queensland Gas Scheme and the Smart Energy Savings Program
The government introduced legislation to amend the Electricity Act 1994 to cease the Queensland Gas Scheme on 31 December 2013, and repeal the Clean Energy Act 2008 to cease the Smart Energy Savings Program.
The cessation of the Queensland Gas Scheme reduces compliance costs for retailers.
The cessation of the Smart Energy Savings Program removes a compliance burden and associated compliance costs for participants. This is estimated to provide savings of $1 million per year in industry compliance costs. It also enables large energy users to manage their energy savings without reporting them to the government. 39 Department of Energy and Water Supply Annual Report 2013–14 Reform of electricity network reliability standards
The prescriptive electricity network reliability standards that previously applied in Queensland delivered very reliable electricity supply but at too high a cost, putting upward pressure on electricity prices.
Changes to the reliability framework that came into effect on 1 July 2014 are forecast to save approximately $2 billion in capital expenditure on networks over the next 15 years and reduce upward pressure on network prices from 2019–20 onwards.
The new framework:
• removes the prescriptive distribution standards that required back-up infrastructure to be built even though it might only be used on rare occasions • relaxes the equivalent standards for transmission to enable a more flexible approach, where outage risks to customers are low and significant cost savings are available. • These changes, recommended by the Independent Review Panel on Network Costs and the Inter- Departmental Committee on Electricity Sector Reform, are more economical, outcome-based and customer-focused than the previous reliability standards.
The needs of Queensland customers are protected through:
• a combination of existing performance targets (known as minimum service standards) • programs to improve the worst performing lines • new ‘safety net’ measures that specify maximum allowable restoration times if high impact–low probability events occur (e.g. the very unlikely failure of a sub-transmission transformer that causes an outage over many suburbs).
The reforms add to the network businesses’ ongoing drive for efficiencies and capital expenditure savings.
Partnering with key stakeholders enabled efficient amendment of multiple regulatory instruments within tight time frames.
Network business efficiencies
Reforms to electricity network businesses’ operations in Queensland have reduced expenditure in the order of $3.8 billion in their current regulatory periods.
Future direction
Electricity sector reform
The Interdepartmental Committee on Electricity Sector Reform made 62 recommendations, with the majority of these accepted at least in principle by the Queensland Government. This reform program is on track and has made good progress in its first year, with 34 of the 62 recommendations already addressed. This incorporates the completion of 29 of the 45 recommendations of the Independent Review Panel on Network Costs.
The department remains on track to deliver the remaining committee reforms by mid 2016.
Department of Energy and Water Supply Annual Report 2013–14 40 The next 12 months will be a busy period for the department as it continues to:
• executeMarket the monitoring government’s reformin South agenda East Queensland
• manageDue to commence the electricity on 1 market’s July 2015, transition the removal from of price retail regulation price regulation to market and monitoring, the introduction to increase of a competitionmore effective in South market East monitoring Queensland regime from for 1 Julyresidential 2015 and small business customers in South • supportEast Queensland the adoption will ofbe the central NECF to and the the Queensland delivery of Government’s enhanced customer electricity protections reform agenda. and support. Market monitoring is designed to increase competition in South East Queensland, reduce cost pressures and drive better outcomes for consumers in terms of product choice, market efficiency and Demand-sidecustomer service. reform DEWS was instrumental in bringing together DAFF and Ergon Energy in mid 2014 to establish the The required legislation to implement market monitoring, which is contained in the Electricity Irrigators Energy Savers Project. The project will identify opportunities to better manage energy use Competition and Protection Legislation Amendment Bill 2014, was introduced into Parliament on through demand reduction activities and achieve cost savings through the efficient use of electricity for 20 May 2014 and is due to be debated in the second half of 2014. Essentially, the Bill amends the water pumping and irrigation across the whole supply chain. Electricity Act 1994 to remove ministerial power to set regulated prices in South East Queensland, Withbut the also assistance provides of an the additional Queensland safety Farmers’ net through Federation, reserve 30 ministerial trial sites powerhave been to reintroduce selected to price participatecontrols inif competitionthe project from deteriorates. a broad cross-section The legislation of alsoagribusinesses establishes throughout an effective Queensland—such market monitoring as sugarcaneframework, farms, which orchards, will allow fruit the Queenslandand vegetable Competition farms, dairies, Authority cotton to and monitor grain and farms, report vineyards on the andoperation turf farms. of Level the South 2 energy East audits Queensland to the Australianmarket, including standard price will changes. be carried out at each location to identify the sources of energy used at a site, the amount of energy savings that can be made and to To maximise the success of the reform, the government identified and consulted on a number of key provide an assessment of costs and savings. Based on preliminary findings, savings of up to 30 per cent preconditions that must be met before price controls are removed. These preconditions include: may be achievable at some sites. • confirming there is sufficient competition in South East Queensland to deliver real benefits for The project will produce case studies highlighting best practices that can be disseminated across the consumers irrigation sector to improve efficiency and reduce costs. Ergon Energy, DAFF and the department will work• withensuring peak adequate bodies, such consumer as the protectionsQueensland are Farmers’ in place Federation, to facilitate dissemination of information• developing and uptake a strategy by farmers. to improve customer engagement in the market
The• department establishing will an continue effective to regulatory work with frameworkthe farming industrywith clearly and defined representative roles and bodies responsibilities in the future for retailers, regulators and government to identify other energy efficiency opportunities both on farm and in first-stage processing to assist this vital• pillardeveloping of the Queensland a viable and economy. credible methodology for setting prices in regional Queensland.
The preconditions for market monitoring are on track to be met by the end of 2014.
The Queensland Competition Authority will continue to set regulated retail electricity prices for customers outside South East Queensland, while the government finalises a longer term strategy to increase competition in regional areas. The government has also committed to maintain pricing support for regional customers and is investigating ways in which this could be delivered more effectively. 41 Department of Energy and Water Supply Annual Report 2013–14 Water supply
Our performance
Water Supply Services Legislation Amendment Act 2014
The Water Supply Services Legislation Amendment Act 2014 introduced a range of reforms that will transform the regulation of the water industry to focus on outcomes rather than process. These reforms include:
• streamlined approval processes for water and sewerage connections for South East Queensland distributor retailers and their customers—this will reduce red tape, design times and holding costs for developers, and facilitate quicker water and sewerage connections • simplified recycled water regulation to better reflect risk—schemes that supply recycled water for lower exposure uses will no longer need an approved management plan, but most schemes will need to be registered • removal of requirements for a range of mandatory prescriptive management plans that will be replaced with annual reporting on key performance indicators by service providers and the publication of an annual comparative report on the sector.
Queensland Floods Commission of Inquiry
The department oversees 42 of the Queensland Government’s 123 recommendations in the final report of the QFCOI.
So far, the department has implemented 36 out of the 42 recommendations, including:
• the public release of the optimisation studies for Wivenhoe, Somerset and North Pine dams • establishing a Ministerial Advisory Council to provide independent advice on flood mitigation manuals • streamlining the process for the Minister to make timely decisions on whether to temporarily lower flood mitigation dams before a potential flood.
The remaining six recommendations are longer-term initiatives that are underway.
Coal seam gas water
The department also achieved significant red tape reductions by removing regulatory duplication within the Water Supply (Safety and Reliability) Act 2008 (Water Supply), as identified in the Queensland Competition Authority review report on the state’s regulation of the coal seam gas (CSG) industry. Provisions in the Water Supply Act have been repealed, enabling the discharge of CSG water to water sources or the beneficial use of CSG water to be solely regulated by theEnvironmental Protection Act 1994 and the Waste Reduction and Recycling Act 2011 respectively.
Department of Energy and Water Supply Annual Report 2013–14 42 Total asset management plan
The department owns and manages 22 water assets for the benefit of local communities in regional Queensland, and is developing a total asset management plan for these assets in accordance with the Queensland Commission of Audit recommendation.
The plan will ensure decisions in planning, investment, operations and maintenance will result in assets that are ‘fit for purpose’ and comply with regulations, as well as deliver services and benefits to the community.
The department’s dams and weir assets provide water supplies for small rural settlements, mines and irrigators, sites for recreation in remote locations and water reserves for droughts and bushfire fighting.
In 2013–14, the department completed the initial asset register and risk assessment, as well as the revaluation of its assets, with a total asset value of $237 million.
Future direction
Total asset management plan
In 2014–15, the department will complete the risk evaluation and optimisation, and develop a lifecycle asset program for the portfolio and individual plans for each of the structures.
The department is one of six state agencies selected to develop the total asset management plan framework and methodology.
Local management arrangements for SunWater irrigation schemes
The Commission of Audit recommended SunWater transfer its irrigation channels to private irrigators and withdraw fully from this activity. The government accepted this recommendation with the overarching caveat that such transfers should not result in additional costs when compared to the service continuing to be provided by SunWater.
Irrigators have indicated they want to explore local management, which, if implemented, would give them direct operational control of the schemes.
An independent project team has provided considerable support to the eight irrigator groups with the engineering, legal, financial and taxation due diligence that would be associated with any proposed business transfer.
Irrigators have developed business proposals for government’s consideration, demonstrating how they would operate the schemes as viable businesses.
The Queensland Government is due to consider the business proposals and the advice of the project team’s independent chair later in 2014. 43 Department of Energy and Water Supply Annual Report 2013–14 Objective 3: Engaged stakeholders
Energy
Our performance
Consumer and Retail Industry Reference Group
In 2012, the Consumer and Retail Industry Reference Group was established. Meetings and workshops provide a valuable means to explore proposed policy and regulatory changes in a collaborative manner with group members.
This group is a unique body where industry, consumer and advocacy groups, and energy regulators can openly discuss electricity issues and share information.
Representatives include:
• 13 electricity retailers and distributors • 11 consumer and advocacy groups • the Energy and Water Ombudsman Queensland • peak energy industry bodies • state and national regulators • other government departments.
The group has helped shape protection for vulnerable customers and general protections under NECF legislation.
The group also provides an opportunity to understand the complexities of the industry and the reforms needed to address the challenges we are facing.
PowerQ consultation
The Queensland Government has delivered a Queensland first—PowerQ: a 30-year strategy for Queensland’s electricity sector.
The strategy was developed through a three-stage consultative process:
1. directions paper—released on 17 December 2012 2. discussion paper—released on 11 September 2013 3. final strategy—released on 20 June 2014.
The response from the public and industry was exceptional, with more than 225 formal submissions and more than 1300 individuals participating in a survey of residential electricity customers.
Department of Energy and Water Supply Annual Report 2013–14 44 National Energy Customer Framework
Following a commitment by the federal government to implement the NECF (subject to state-specific variations to ensure regional customers are protected), DEWS has focused consultation activities on ensuring the NECF package results in the best possible outcomes for Queensland customers.
In late 2013, consultation on the 30-year electricity strategy discussion paper and focus groups with retailers and small customers sought stakeholder views about how to improve customer protections in general. A more specific focus was applied to implementation of the NECF and possible future enhancements to the package to promote greater customer engagement, market monitoring and appropriate customer protections. Submissions to the discussion paper broadly supported implementation of the NECF in Queensland. Focus groups supported the introduction of the NECF.
In early 2014, the department engaged energy retailers, distributors and consumer representatives in relation to possible variations to the NECF package in Queensland. This included a workshop in March 2014 focusing on the proposed variations. Workshop delegates commended the workshop approach, which allowed detailed discussion on important consumer protection variations. Some delegates also provided follow-up submissions outlining their key areas of interest. The depth of ongoing consultation culminated in the proposed legislation being tabled in Parliament in mid 2014. The Queensland NECF package reflects consideration of various stakeholders’ input, and seeks to balance these proposals with government’s broader reform objectives in the sector.
Future direction
PowerQ—consumer empowerment
Queensland aims to have the most competitive electricity prices in Australia. PowerQ will ensure the Queensland electricity market is cost-competitive nationally and that consumers will be empowered to become active players in the electricity market.
Reforms are underway, targeting costs within the Queensland Government’s influence by:
• driving efficiencies into network businesses • adjusting reliability standards to balance service levels and costs to consumers • removing red tape • addressing state-based schemes, such as the Solar Bonus Scheme and Queensland Gas Scheme, to relieve cost pressures • developing a tariff reform and metering strategy to give consumers more information about their electricity usage and greater choice in managing their costs, and to address longer term price pressures.
Other actions will be approached by:
• seeking productivity improvements • supporting consumer advocacy • getting tariff settings right • developing low-cost solutions for isolated communities • monitoring market changes. 45 Department of Energy and Water Supply Annual Report 2013–14 Water supply
Our performance
Ibis Dam safety upgrade
In June 2013, ownership of Ibis Dam was handed over to Tablelands Regional Council.
On 1 January 2014, Tablelands Regional Council transferred the dam to Mareeba Council.
Transferring ownership is consistent with the Queensland Government’s desire to empower local communities to better serve their own interests.
The dam, in the Atherton Tablelands, was built in around 1900 to supply water for Irvinebank town and mining operations. It was completely refurbished, at a cost of $11 million, to meet dam safety requirements and provide a source of non-potable water.
The department has helped Mareeba Council identify and deliver a cost-effective option for a sustainable supply—through seepage control and supply and demand management measures—to address community concerns about water supply.
Dam optimisation studies community consultation
From 1 April 2014 to 30 June 2014, community consultation on the optimisation studies for North Pine, Wivenhoe and Somerset dams was undertaken.
Five public meetings were held within the relevant communities and the issues raised were recorded and addressed where possible.
There were 61 submissions received, including the issues raised during the consultation sessions.
Analysis shows that the community generally supports the government’s preferred option.
Consultation reports are currently being prepared and are expected to be published following consideration by government in October 2014.
Statutory emergency action plans
There are 104 referable dams in Queensland (a referable dam is one that presents a risk to two or more people if it fails).
In line with a QGCOI recommendation, there is now a legislative requirement for dam owners to have an approved emergency action plan (EAP). Previously, non-statutory EAPs were required.
By 1 October 2013, all referable dam owners needed to submit draft statutory EAPs as part of this approval process.
Department of Energy and Water Supply Annual Report 2013–14 46 Engineers from the Dam Safety area of the department conducted training and awareness sessions on how to prepare an EAP in Brisbane, Toowoomba, Bundaberg, Mackay, Emerald, Cairns, Townsville, Mount Isa and Rockhampton.
Almost 140 participants representing emergency management agencies and dam owners attended the presentations. Overall, the feedback received was positive.
All major dams now have non-statutory EAPs in place, while statutory EAPs have been assessed and approvals issued where appropriate.
The three referable dams owned and operated by DEWS have statutory EAPs in place.
Future direction
WaterQ—customer empowerment and education
A priority for WaterQ is to empower and educate customers so they will know more about their water services and make choices about how these services are delivered.
The sector will:
• encourage flexible pricing, including new tariff structures, to meet both customer and service provider needs—service providers will investigate alternative pricing options to meet customer and business needs • provide greater product choices to customers by championing customer water plans—these plans will allow customers to choose the plan best suited to their lifestyle and that matches the volume of water for which they are willing to pay, encouraging water efficiencies • improve customer awareness of services through engagement and information—service providers are encouraged to engage with their customers to understand their evolving trends and to inform customers on the value of their services.
Energy and water supply
Future direction
Blueprint—putting water and energy customers first
In August 2014, the DEWS blueprint is scheduled to be published. It will outline a fresh approach to how the department will operate by acknowledging that it works for its customers—Queensland energy and water consumers.
The blueprint will support the two 30-year strategies (PowerQ and WaterQ), which concentrate on sector transformation, by focusing on internal transformation within the department around six common behaviours:
1. engage—demonstrate the intention to reach out and involve customers 2. analyse—understand customers, their behaviours, experiences and long-term needs 3. apply—use knowledge and strong evidence to support decision-making 47 Department of Energy and Water Supply Annual Report 2013–14 4. validate—continuously review work and policy settings to ensure they match changing community needs 5. partner—work with partners intentionally and effectively, and look for new partners 6. communicate—understand issues of concern to customers. Implementation of the blueprint across the department will change policy, planning and regulatory functions and their focus. It will also transform the department’s business and work practices, in particular the way in which it communicates and engages with its partners and the community.
Successful implementation of the blueprint will require the development of tools and systems to access and analyse data, new ways of talking to customers and the skills and capabilities of the department’s workforce.
Department of Energy and Water Supply Annual Report 2013–14 48 Objective 4: Optimise industry value
Energy
Our performance
Wallumbilla Gas Supply Hub
In March 2014, the Wallumbilla Gas Supply Hub commenced operation. The hub, which is operated by the Australian Energy Market Operator, offers gas market participants the opportunity to adjust their positions close to real time and optimise both production and use of gas.
Queensland initiated the gas supply hub concept in 2011, as a result of the findings of the 2011 Gas Market Review. In December 2011, the concept was also reflected in the federal government’s draft energy white paper. It was subsequently incorporated into the Gas Market Development Program of the Standing Council on Energy and Resources.
The Australian Energy Market Operator developed the supply hub concept at the request of the Standing Council on Energy and Resources, in consultation with the federal and Queensland governments, and industry stakeholders. In December 2012, the council agreed to proceed with implementation of the hub in early 2014 on a voluntary ‘brokerage’ model, which matches buyers and sellers at the hub using standard day-ahead and balance-of-day contracts.
Reappointment of Energy and Water Ombudsman Queensland
Mr Forbes Smith was reappointed as Energy and Water Ombudsman Queensland (EWOQ) for a further three years from 1 July 2014 to July 2017 by Governor in Council.
The Minister for Energy and Water Supply and the Premier approved Mr Smith’s reappointment based upon the excellent leadership he provided to the office of the EWOQ during his previous three-year term. In his time as ombudsman, Mr Smith oversaw the development of new strategic and business plans, and restructured the office of the EWOQ to improve outreach to customers.
An independent review in 2014 found that EWOQ was operating in an independent, fair and unbiased manner. Since commencing as ombudsman in 2011, Mr Smith has overseen the satisfactory resolution and closure of 14 096 electricity, gas and water cases. As ombudsman, Mr Smith also established a new Systemic Issues Monitoring Committee (which has led to a 110 per cent increase in the number of systemic issues identified by EWOQ) and developed a web-based, multi-agency complaints portal to help customers lodge complaints online. EWOQ’s performance was rated as satisfactory or better by 82 per cent of customers. 49 Department of Energy and Water Supply Annual Report 2013–14 Future direction
PowerQ
A policy and regulatory framework is being created that will readily respond to the changes that lie ahead and benefit everyone.
As new challenges emerge, they will need to be understood and responded to quickly. To ensure the strategy’s long-term success, the Queensland Government will establish a panel of experts to critically examine the emerging market challenges and opportunities, and recommend appropriate actions.
These panel members will include people who may not be directly involved in the electricity sector. They will be changed on a regular basis to ensure the panel has the necessary skills and expertise to understand the emerging issues within the sector. They will provide expert insight by exchanging ideas and knowledge, and bring fresh perspectives to both present and future changes.
The panel may consider the following potential topics:
• future trends and approaches to improving demand forecasts • opportunities for supply-chain productivity improvements • impacts from emerging technologies • effects of new business models on consumers and market participants.
The expert panel will be officially launched in August 2014..
Water supply
Our performance
Non-commercial assets
The department owns and manages 22 water assets for the benefit of the local communities. The department is undertaking maintenance and repair works on these assets.
The portfolio includes dams such as Copperfield and Corella, and weirs such as Charles Lloyd Jones and Bajool.
These dams and weirs provide non-potable water supplies for small rural settlements, mines, irrigation, firefighting, construction, recreation and tourism in regional Queensland, and water reserves for future resources and agricultural developments.
These assets require maintenance and repairs in order to be safe, fit-for-purpose and to protect their value.
Based on a risk evaluation of workplace health and safety, as well as public safety, the department has commenced the installation of flood-alert gauging stations at Corella and Crooks dams. This will provide a safer operating environment for workers and protect downstream residents and visitors.
Department of Energy and Water Supply Annual Report 2013–14 50 Future direction
Non-commercial water assets
Over the next two years, the department has prioritised works on Mungungo, Charles Lloyd Jones and Kariboe weirs, and upgrades on Jumna and Copperfield dams.
This is to ensure the safety of downstream communities, recreational visitors and our staff is maintained. The asset values will be maintained and they will continue to deliver services to the local community and visitors. 51 Department of Energy and Water Supply Annual Report 2013–14 Objective 5: A capable, flexible and proud workforce
Energy and water supply
Our performance
Flexible, skilled and performance-orientated workforce
DEWS is committed to building a flexible, skilled and performance-orientated workforce.
Internal capability and talent development programs (including the development of a high performance and capability development framework), relieving opportunities and internal collaboration initiatives enabled retention and succession strategies for critical expertise and skills within our workforce.
Specialist advertising campaigns were undertaken to attract and secure the specialist technical expertise required for our hard-to-fill roles and newly identified workforce requirements.
The department’s recently developed Strategic Workforce Plan will further enable the successful attraction, development and retention of its workforce as critical business reform and strategies take shape. Publication is anticipated for September 2014.
Staff Renewal Steering Committee
In November 2013, all DEWS staff were invited to nominate to be one of two staff representatives on the DEWS Agency Renewal Committee. Due to the relatively large number of nominations and the high quality of ideas expressed in the applications, a Staff Renewal Steering Committee was formed to support the DEWS Renewal Program.
Their initial role was to provide advice and feedback on renewal proposals, activities and staff engagement to the renewal team, and be a conduit between the renewal team and all staff in DEWS. They have now grown further as a committee, and in the second half of 2013–14 moved to add the role of undertaking short renewal initiatives to support the work of the DEWS renewal team and DEWS staff in their day-to-day roles. The committee has formed four sub-committees:
1. DEWS Culture 2. Professional Development 3. How We Do Business 4. Extending Out and Beyond DEWS.
Within these four sub-committees, initiatives have been developed and a work schedule drafted based on the vision that members have for the department and for staff. With these initiatives, the committee strives for a healthy and proud DEWS workforce.
The Staff Renewal Steering Committee is the first committee of its kind within Queensland Government, and shows DEWS’ considered response to renewal for both staff and its customers.
Department of Energy and Water Supply Annual Report 2013–14 52 Working for Queensland Employee Opinion Survey
The department values its staff through effective communication and engagement. As a result of the 2013 employee opinion survey, there were a number of trends and themes identified that recognise areas of improvement for the agency.
These improvements and strategies are seen through an effective communication and engagement strategy, including more effective face-to-face engagement and communication, consistent messaging from executives, the creation of a monthly DEWSletter, a Staff Renewal Steering Committee, ‘Lunchbox’ information sessions and more accessibility to staff forums.
Further activity to create and sustain a culture of engagement, potential and high performance will be seen through the development and launch of the departmental high performance and capability framework in August 2014.
Performance and development agreements
To ensure business continuity and retention of corporate knowledge, the agency utilises the PDA process as a means for creating business continuity and identifying knowledge.
This process triggers and enables effective succession and retention planning for these skills and capabilities.
Workplace health and safety strategy
DEWS is committed to fostering a zero-harm culture.
To create and maintain a culture of zero harm, Human Resources has established the Workplace Health and Safety Strategy 2012–15.
The strategy focuses on four key elements to achieve a healthy and safe business, including:
1. governance—establish meaningful governance structures and accountabilities 2. risk management—implement an effective risk-management framework 3. leadership and capability—build workplace health and safety (WHS) leadership and workforce capability 4. consultation and culture—promote consultation and a positive safety culture.
To date, Human Resources has actively been working to:
• establish and maintain legal compliance • build and sustain WHS policy commitment with adequate and informed resources • design and implement an effective WHS management system • integrate WHS targets and activities into business processes • identify WHS hazards and effective management control as part of standard business practice • continue to streamline reporting and investigation mechanisms • provide education and support to build WHS capability in the business • target promotion of health and wellbeing initiatives and programs across the department. 53 Department of Energy and Water Supply Annual Report 2013–14 Workforce performance reports
The department has developed systems to support its commitment to robust advice, decision-making, monitoring and reporting within the human resources space.
Workforce reports are generated monthly to monitor the agency’s workforce performance indicators. Decision-making is supported by a fostered governance and operating model.
Future direction
High performance and capability framework
The high performance and capability framework sets out how DEWS will embed high performance throughout the organisation and progress departmental objective three outlined in the strategic plan. The objectives of the framework are to:
• build and develop the capability of our workforce • enhance performance and outcomes for our customers • consolidate a high-performance culture, starting with our leadership.
In the initial phase of implementing the framework, six foundation projects have been identified. They are:
1. regular and systemic business planning throughout the department that –– links business plans for divisions and branches to the overall departmental strategic plan –– clearly articulates objectives and priorities for the division –– better develops meaningful measures for the department –– identifies and collates key performance measures. 2. performance measures and data that identifies high performance and drives DEWS to achieve its goals 3. a leadership strategy that recognises the key role leaders play in setting the benchmark for high performance and driving the development of the capabilities of their teams 4. a capability framework that identifies and assesses the capabilities critical for DEWS in driving high performance in line with the public service values 5. a refocus on the role of PDAs in building staff capability, driving high performance and managing any performance issues 6. a reward and recognition approach that recognises and encourages high performance. Following the first year of the program and the development and implementation of the six foundation projects, the Framework Steering Committee will review and assess the success of the framework and identify possible new projects to continue the implementation of high performance within DEWS.
Department of Energy and Water Supply Annual Report 2013–14 54 Agency service areas and service standards
Service areas
The department’s functions are delivered through two main service areas—Energy and Water Supply.
Energy is responsible for policy development, reform and regulation of the Queensland energy sector to ensure cost-effective, secure and reliable energy supply. It is also responsible for establishing a long- term electricity strategy—informed by the outcomes of the government’s review on electricity sector reform—to address cost-of-living pressures and sustainability of the sector.
Water Supply is responsible for implementing water sector reform to address cost-of-living pressures. It is also responsible for establishing a long-term strategy for Queensland’s water sector and regulating water supply and sewerage services so that agriculture, mining, industry, regional and urban communities have access to cost-effective, safe, secure and sustainable water supply.
Service standards
The performance statement below outlines the department’s performance against its service standards and other measures contained in the 2013–14 service delivery statement as part of the State Budget papers.
Performance statement
2013–14 2013–14 2013–14 Notes Target/est. Est. actual Actual Service area: Energy 1 115 MW 115 MW 115 MW cumulative cumulative cumulative Service standards target target target Relative reduction in peak electricity network demand from demand management/energy efficiency initiatives and projects facilitated
Lead implementation and deliver 2 90% 90% 100% relevant initiatives of the 30-year electricity strategy on time and within budget
Percentage of stakeholders who rate 3 100% 80% 85% the department’s engagement on key energy programs/initiatives as satisfactory or better 55 Department of Energy and Water Supply Annual Report 2013–14 2013–14 2013–14 2013–14 Notes Target/est. Est. actual Actual Service area: Water Supply 2 90% 90% 100% Service standards Lead implementation and deliver relevant initiatives of the 30-year water strategy on time and within budget
Percentage of stakeholders who rate 3 90% 80% 85% the department’s engagement on key water supply and sewerage services programs/initiatives as satisfactory or better
Percentage of the state’s drinking water 4 100% 92% 97.7% services that have appropriate drinking water quality monitoring and response frameworks in place
Notes:
1. This measure contributes to the department’s strategic objective to ensure cost-effective, safe, secure and reliable energy and water supply. The reduction in peak electricity demand is maintained across financial years so the target and reported actual is a cumulative reduction (i.e. the reported actual in 2012–13 plus additional reductions to be achieved in 2013–14)— this measure has been discontinued for service delivery statement reporting purposes, as it is not an indication of the efficiency or effectiveness of the service area. 2. This measure contributes to the department’s strategic objective to ensure cost-effective, safe, secure and reliable energy and water supply, and to deliver effective reform. The department is responsible for leading implementation and for delivering relevant initiatives of PowerQ: a 30-year strategy for Queensland’s electricity sector and WaterQ: a 30-year strategy for Queensland’s water sector. 3. This measure contributes to the department’s objective to engage with our stakeholders. The measure assesses the level of stakeholder satisfaction with the department’s engagement on key programs/initiatives (e.g. PowerQ: a 30-year strategy for Queensland’s electricity sector and WaterQ: a 30-year strategy for Queensland’s water sector. 4. This measure contributes to the department’s objective to ensure cost-effective, safe, secure and reliable water supply. The measure is comprised of the percentage of drinking water service providers who have an approved drinking water quality management plan (DWQMP) or are operating under transitional arrangements by monitoring for Escherichia coli (E. coli) and responding to reported incidents appropriately. By 1 July 2014, all providers will be required to have an approved DWQMP in place.
Department of Energy and Water Supply Annual Report 2013–14 56 Financial performance
Financial summary
The financial statements contain comprehensive financial data on:
• controlled entity, which refers to the funds and assets within the control of the department • administered activities, which refers to activities where the department does not have control but is charged with administering the funds on a whole-of-government basis. Our financial performance
The department delivered a sound policy, planning and regulatory environment to support cost-effective energy and water supply services. As shown in our Statement of Comprehensive Income on page 63, the department’s operating result (expenses minus revenue) was a loss of $0.6 million.
Our income
Income for 2013–14 was $62.8 million and was predominantly departmental services appropriation to deliver energy and water supply services.
Our expenditure
Expenses for the year amounted to $63.4 million, which included employee expenses of $27.2 million, supplies and services of $11.2 million and grants and subsidies expenditure of $22.5 million. Grants and subsidies expenditure included $16.2 million for the Dam Spillway Upgrade Program.
We remain committed to managing our financial performance and minimising our liabilities and risks. Our financial performance is closely monitored within our corporate governance framework to align with departmental priorities. 57 Department of Energy and Water Supply Annual Report 2013–14 Financial statements
Department of Energy and Water Supply
Financial Statements for the year ended 30 June 2014
Foreword and General information
The Department of Energy and Water Supply (DEWS) is a Queensland Government Department established under the Public Service Act 2008. DEWS is controlled by the State of Queensland which is the ultimate parent.
The head office and principal place of business of the department is:
Level 13 41 George Street Brisbane Qld 4000
A description of the nature of the operations and principal activities of the department is included in the notes to these financial statements. For information in relation to these financial statements please call (07) 3166 0102, or visit the website at http://www.dews.qld.gov.au
Department of Energy and Water Supply Annual Report 2013–14 58 Department of Energy and Water Supply Statement of Comprehensive Income – Controlled for the year ended 30 June 2014
DEPARTMENT OF ENERGY AND WATER SUPPLY STATEMENT OF COMPREHENSIVE INCOME for the year ending 30 June 2014
Notes 2014 2013 $'000 $'000 Income from Continuing Operations Appropriation revenue for services 2 59,887 69,109 Grants and other contributions 4 59 683 Interest revenue 5 - 115 Other revenue 6 2,821 3,199
Total Income from Continuing Operations 62,767 73,106
Expenses from Continuing Operations Employee expenses 7 27,237 32,299 Supplies and services 9 11,207 10,375 Grants and subsidies 10 22,506 29,242 Depreciation and amortisation 11 213 277 Other expenses 12 2,196 676
Total Expenses from Continuing Operations 63,359 72,869
Operating Result for the Year (592) 237
Total Comprehensive Income (592) 237
The accompanying notes form part of these statements.
59 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Statement of Comprehensive Income – Administered on a Whole-of-government basis for the year ended 30 June 2014
Notes 2014 2013 Income from Continuing Operations $'000 $'000 Appropriation revenue 2 584,883 736,441 User charges and fees 3 1,081 1,538 Grants and other contributions 4 413 6,883 Other revenue 6 633 167 Total Income from Continuing Operations 587,010 745,029
Expenses from Continuing Operations Supplies and services 9 714 2,250 Grants and subsidies 10 537,830 735,485 Depreciation and amortisation 11 6,814 5,379 Other expenses 12 - 8,922 Total Expenses from Continuing Operations 545,358 752,036
Net operating Result before transfers to government 41,652 (7,007) Transfers of administered appropriation to government 582104 41,065 - Transfers of administered revenue to government 582101 1,588 1,314 Operating Result for the Year (1,001) (8,321)
Other Comprehensive Income Items that will not be reclassified subsequently to operating result: Increase (decrease) in asset revaluation surplus 21 74,984 - Total Other Comprehensive Income 74,984 -
Total Comprehensive Income 73,983 (8,321)
The accompanying notes form part of these statements.
Department of Energy and Water Supply Annual Report 2013–14 60 Department of Energy and Water Supply Statement of Financial Position - Controlled as at 30 June 2014
Notes 2014 # 2013 $'000 $'000 Current Assets Cash and cash equivalents 13 22,876 46,596 Receivables 14 2,303 5,015 Other 15 50 -
Total Current Assets 25,229 51,611
Non Current Assets Receivables 14b 500 1,500 Property plant and equipment 16 902 1,028 Intangible assets 17 156 82
Total Non Current Assets 1,558 2,611
Tota l Asse ts 26,787 54,222
Current Liabilities Payables 18 7,425 22,912 Accrued employee benefits 19 1,023 1,392 Other 20 2,038 13,042
Total Current Liabilities 10,486 37,346
Total Liabilities 10,486 37,346
Ne t Asse ts 16,301 16,876 Equity Contributed equity 14,237 14,219 Accumulated Surplus 2,064 2,657 Total Equity 16,301 16,876
# 2013 Amounts have been restated
The accompanying notes form part of these statements.
61 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Statement of Financial Position – Administered on a Whole-of-government basis as at 30 June 2014
Notes 2014 # 2013 $'000 $'000 Current Assets Cash and cash equivalents 13 62,854 123,208 Receivables 14 38,981 15,973
Total Current Assets 101,835 139,180
Non-Current Assets Property, plant and equipment 16 237,180 169,039
Total Non-Current Assets 237,180 169,039
Tota l Asse ts 339,015 308,219
Current Liabilities Payables 18 102,805 131,390 Other current liabilities 20 - 9,806
Total Current Liabilities 102,805 141,196
Total Liabilities 102,805 141,196
Ne t Asse ts 236,210 167,023
Equity Contributed equity 8,134 12,929 Asset revaluation surplus 21 237,081 162,097 Accumulated Surplus (9,005) (8,003)
Total Equity 236,210 167,023
# 2013 Amounts have been restated
The accompanying notes form part of these statements.
Department of Energy and Water Supply Annual Report 2013–14 62
18
237 (297) Total (592) $'000
2,665
16,876 16,301 14,271 16,876
- -
18 (297) $'000
2,665 Equity 14,219 14,237 11,851 14,219 Contributed
- - -
237 (592) $'000
2,657 2,064 2,420 2,657
Surplus Accumulated
TOTAL INCREA
.
stated due to Machinery of Government reconciliation of of balances. reconciliation of Government to Machinery due - stated Controlled -
30 June 2014 June 30
ended he accompanying notes form part of these statements these of part form notes he accompanying Balance as at 2013 1 July from ContinuingOperating Result Operations Transactions with Owners as Owners Machinery adjustment of Government Balance as at 30 June 2014 Balance as at 2012 1 July from ContinuingOperating Result Operations Transactions with Owners as Owners Equity withdrawal transfers Net from agencies other government Balance as at 30 June 2013 T re been has 2013 for balance opening The Statement of Changes in Statement ofEquity Changes in Department of Energy and WaterDepartmentof Energy Supply for the year for the year
63 Department of Energy and Water Supply Annual Report 2013–14
873
(177) (269)
Total $'000 (1,001) (8,321) (5,400)
74,984 175,521 167,023 236,210 167,023
- - - 873
(177) (269)
$'000 8,134 Equity (5,400) 13,106 12,929 12,929
Contributed
------
Asse t $'000 74,984
162,097 162,097 237,081 162,097 Reserve Revaluation
- - - - -
318 $'000 (8,003) (1,001) (9,005) (8,321) (8,003)
Surplus Accumulated
21 government basis - government Notes - of
.
stated due to Machinery of Government reconciliation of of balances. reconciliation of Government to Machinery due - stated Administered on aAdministered Whole on
–
30 June 2014 June 30
Energy and Water Energy Supply ended pening balance for 2013 has been re been has 2013 for balance pening Balance at as 1 July 2013 Operating Result Continuing from Operations Other Comprehensive Income Increase/(Decrease) in asset surplus revaluation Transactions as Owners with Owners Equity withdrawal Equity injection Machinery adjustment Government of Balance at as 30 June 2014 Balance at as 1 July 2012 Operating Result Continuing from Operations Other Comprehensive Income Administered equity adjustment Balance at as 30 June 2013 statements these of part form notes accompanying The o The for the year for the year Department of Statement of Changes in Statement ofEquity Changes in
Department of Energy and Water Supply Annual Report 2013–14 64 Department of Energy and Water Supply Statement of Cash Flows - Controlled for the year ended 30 June 2014
Cash flows from operating activities Inflows: Service Appropriation receipts 2 47,648 80,664 Grants and other contributions - 62 Interest received - 115 GST input tax credits received from Australian Taxation Office 2,652 1,103 GST collected from customers 323 385 Other inflows 2,787 13,130
Outflows: Employee expenses (27,602) (29,693) Supplies and services (12,316) (17,757) Grants and subsidies (26,775) (19,499) GST paid to suppliers (2,569) (1,355) GST remitted to Australian Taxation Office (424) (298) Other outflows (8,303) (628) Net cash provided by (used in) operating activities 22 (24,577) 26,229
Cash flows from investing activities Inflows: Loans and advances redeemed 1,000 -
Outflows: Payments for property, plant and equipment 16 (26) - Payments for intangibles 17 (117) - Net cash provided by (used in) investing activities 856 -
Cash flows from financing activities Inflows: Equity Injections - 380
Outflows: Equity withdrawals - (380) Net cash provided by (used in) financing activities - -
Net increase (decrease) in cash and cash equivalents (23,721) 26,229 Cash and cash equivalents at beginning of financial year 13 46,596 20,367
Cash and cash equivalents at end of financial year 22,876 46,596
The accompanying notes form part of these statements.
65 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Statement of Cash Flows – Administered on a Whole-of-government basis for the year ended 30 June 2014
Notes 2014 2013 $'000 $'000
Cash flows from operating activities Inflows: Administered appropriation Receipts 2 575,077 703,936 User charges and fees 1,081 2,552 Grants and other contributions 413 7,060 GST input tax credits from Australian Taxation Office 51,361 46,129 GST collected from customers 411 13 Other inflows 4,864 167
Outflows: Administered appropriation receipts returned to Queensland Treasury and Trade (77,065) (1,314) Grants and subsidies (966) (87,255) Community service obligation payments (559,439) (562,720) Supplies and services (5,831) (773) GST paid to suppliers (45,082) (57,068) GST remitted to Australian Taxation Office (411) (13) Net cash provided by (used in) operating activities 22 (55,587) 50,714
Cash flows from investing activities
Outflows: Payments for property, plant and equipment 16 (240) (5,397) Net cash provided by (used in) investing activities (240) (5,397)
Cash flows from financing activities Inflows: Equity Injections 873 -
Outflows: Equity withdrawals (5,400) - Net cash provided by (used in) financing activities (4,527) -
Net increase (decrease) in cash and cash equivalents (60,354) 45,317 Cash and cash equivalents at beginning of financial year 123,208 77,891
Cash and cash equivalents at end of financial year 13 62,854 123,208
The accompanying notes form part of these statements.
Department of Energy and Water Supply Annual Report 2013–14 66
- 237 237
2013 $’000 683 277 115 676 69,109 73,106 32,299 72,869 10,375 29,242 3,199
6,218 - Total 2014 (592) (592) $’000
213 59 59,887 62,767 27,237 63,359 11,207 22,506 11,040 2,821
- 2,196 - 2013 $’000 (6,599) (6,599) 424 141 369 69 41,259 43,529 19,306 50,128 24,206 1,777 6,106 3,709
- 2014 (553) (553) $’000
Water Supply 110 33 38,010 40,616 15,565 41,169 16,201 2,574 7,532 6,182
- 1,761 - 2013 $’000
6,836 259 136 307 46 27,850 29,577 12,993 22,741 1,422 4,269 5,036 6,836 2,509
- Controlled
-
Energy (38)
2014 $’000 247 103 435 26 21,877 22,150 11,672 22,188 - 3,675 6,304 4,858
(38)
by Major Departmental Services by
30 June 2014 June 30
Comprehensive Income Comprehensive ended e year e year Income from continuing operations servicesAppropriation for revenue Grants and other contributions Interest revenue Other revenue Total income from continuing operations from continuing operations Expenses Employee expenses Supplies and services Grants and subsidies Depreciation and amortisation Other expenses Total expenses from continuing operations Operatingthe for year result Total Comprehensive Income Allocation corporate of services income and expenses to outputs (disclosure only)*: Income ordinary from activities Expenses ordinary from activities for th Statement of Department of Energy and WaterDepartmentof Energy Supply statements. these of part form notes accompanying The 67 Department of Energy and Water Supply Annual Report 2013–14
167 2013 $’000 8,922 1,538 5,379 6,883 2,250
(7,007) (1,314)
736,441 735,485
752,036 745,029
(8,321) Total -
633 413 714 2014 $’000 1,588 1,081 6,814
41,652 41,065
584,883 537,830
545,358 587,010
(1,001)
- -
2013 $’000 5,379 8,922 2,250
87,255 (13,900) 6,883 167 103,806
82,856 89,906
(13,900) - - government basis - government 175 413 714 2014
of $’000 - Water Supply 4,237 5,238 6,814 13,419
24,596 25,184 20,947
-
(1,001) - - - - -
2013 $’000 6,893
(1,314)
648,230
Administered Administered on a Whole
–
1,538 5,579 653,585 655,123 648,230
- - - -
Energy 458
2014 $’000 1,588
37,415 35,827
524,411 1,081 -
560,288 561,826 524,411
.
by Major Departmental Services by
Comprehensive Income Comprehensive 30 June 2014 June 30 Income from continuing operations Appropriation revenue User charges and fees Grants and other contributions Other revenue Total income from continuing operations from continuing operations Expenses Supplies and services Grants and subsidies Depreciation and amortisation Other expenses Total expenses from continuing operations Net operating to before result transfers government administered of Transfer appropriation to government administered of Transfer to government revenue Operatingthe for year result as at as at
statements these of part form notes accompanying The Department of Energy and WaterDepartmentof Energy Supply Statement of
Department of Energy and Water Supply Annual Report 2013–14 68
- 82 2013 $’000 1,028 5,015 2,611 1,392 1,500 46,596 51,611 54,222 22,912 13,042 37,346 37,346 16,876 Total 50 902 156 500 2014 $’000 2,303 1,558 7,425 1,023 2,038 22,876 25,229 26,787 10,486 10,486 16,301 - 528 831 751 1279 2013 $’000 2,395 7,780 27,797 30,192 31,471 12,241 20,852 20,852 10,619 - - 28 732 507 156 663 575 2014 $’000 5,025 1,739 7,340 7,340 6,931 12,848 13,608 14,271 Water Supply - 82 749 500 561 2013 $’000 2,620 1,331 5,262 6,256 18,799 21,419 22,750 10,671 16,494 16,494
- 22 Controlled
Energy 500 395 895 449 299 –
2014 $’000 1,571 2,398 3,147 3,147 9,370 10,028 11,620 12,516
by Major Services Departmental by
and Liabilities and
Assets Assets 30 June 2014 June 30 Current assets Current Cash and cash equivalents Receivables Other current assets Total current assets assets Non-current Receivables Property, plant and equipment Intangibles Total assets non-current assets Total liabilities Current Payables Accrued employee benefits liabilities Other liabilities current Total liabilities Total assets Net as at as at Department of Energy and WaterDepartmentof Energy Supply Statement of 69 Department of Energy and Water Supply Annual Report 2013–14
2013 $’000 308,219 123,208 139,180 169,039 169,039 131,390 141,196 141,196 167,023 15,973 9,806 Total 2014 $’000 339,015 101,835 237,180 237,180 102,805 102,805 102,805 236,210 62,854 38,981 - 2013
$’000 151,292 169,039 169,039 147,145 5,188 - 4,147 4,147 4,147 (22,935) (17,747) 2014 $’000 Water Supply government basis - government - of 144 243,244 237,180 237,180 238,820 - 5,920 6,064 4,424 4,424 4,424 2013 $’000 146,143 156,927 156,927 127,243 137,049 137,049 10,784 19,878 9,806 - - Administered on Administered on a Whole
– Energy
2014 $’000 56,934 38,837 95,772 95,772 98,380 98,380 98,380 - - (2,608)
30 June 2014 June 30 Current assets Current Cash and cash equivalents Receivables Total current assets assets Non-current Property, plant and equipment Total assets non-current assets Total liabilities Current Payables liabilities Other liabilities current Total liabilities Total assets Net Department of Energy and WaterDepartmentof Energy Supply Major Services Departmental by Statement Liabilities of and Assets as at
Department of Energy and Water Supply Annual Report 2013–14 70 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
Objectives and Principal Activities of the Department The Department of Energy and Water Supply (DEWS) is responsible for the oversight of Queensland’s energy and water industries to ensure these services are provided to Queensland consumers in a safe, efficient and reliable way. Policy development, reform and regulation are undertaken by the department with the following objectives: - Cost-effective, safe, secure and reliable energy and water supply - Effective reform - Engaged stakeholders - Optimise industry value - A capable, flexible and proud workforce
The department is principally funded for the services it delivers by parliamentary appropriations.
1. Summary of Significant Accounting Policies
The significant policies, which have been adopted in the preparation of these financial statements, are as follows:
(a) Statement of Compliance
The department has prepared these financial statements in compliance with section 42 of the Financial and Performance Management Standard 2009.
These general purpose financial statements have been prepared on an accrual basis, in accordance with Australian Accounting Standards and Interpretations. In addition, these financial statements comply with the Queensland Treasury and Trade’s Minimum Reporting Requirements for the period ending 30 June 2014, and other authoritative pronouncements.
With respect to compliance with Australian Accounting Standards and interpretations, the department has applied those requirements applicable to not-for-profit entities, as the department is a not-for-profit department. Except where stated, the financial statements have been prepared in accordance with the historical cost convention.
(b) The Reporting Entity
The financial statements include the value of all revenues, expenses, assets, liabilities and equity of the department where these items are material.
The major departmental services undertaken by the department are disclosed in paragraph 1(w).
(c) Administered Transactions and Balances
Those revenues, expenses, assets and liabilities under the discretionary control of the department are classified as controlled transactions or balances.
The department administers, but does not control, certain resources on behalf of the Government. In doing so, it has responsibility and is accountable for administering related transactions and items, but does not have the discretion to deploy the resources for the achievement of the department’s objectives.
The department administers funds on behalf of the State including:
Community Service Obligation (CSO) Transactions
Under the Electricity Act 1994, electricity retailers must charge customers who have not entered into market contracts for their electricity supply at Notified Prices determined in accordance with the Act. The Notified Prices for customers of a particular customer class are uniform across the State.
The supply of electricity to customers in regional and remote parts of Queensland generally involves costs which are significantly higher than what the retailer can cover under the Notified Prices due mainly to the vast electricity grid required to serve these customers.
71 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
(c) Administered Transactions and Balances (cont’d)
Through appropriation funding administered by the department, the Government provides CSO payments to Ergon Energy Queensland Pty Ltd, the electricity retailer responsible for supplying the majority of non-market customers in regional Queensland. A small amount is paid through Origin Energy Electricity Limited for non- market customers in the Goondiwindi, Texas and Inglewood areas.
The department also provides CSO payments to SunWater and SEQwater for the provision of rural irrigation services and to SunWater in relation to the Cloncurry pipeline. These payments are currently reflected as Administered transactions.
(d) Appropriation revenue for services / Administered Revenue
Appropriations provided under the Appropriation Act 2013 are recognised as revenue when received. Approval has been obtained from Queensland Treasury and Trade to recognise specific adjustments to departmental services revenue. Refer to note 2.
Amounts appropriated to the department for transfer to other entities in accordance with legislative or other requirements are reported as ‘administered’ item appropriations with the related payments being recorded as administered expenses.
(e) User Charges and Fees
The department does not have any user charges and fees that are controlled by the department.
Fees collected, but not controlled, by the department are reported as administered revenue. Refer to note 3.
(f) Grants and Contributions
Grants, contributions, donations and gifts, non-reciprocal in nature, are recognised as revenue in the year in which the department obtains control over them. Where grants are received that are reciprocal in nature, revenue is recognised over the term of the funding arrangements.
Contributed assets are recognised at their fair value. The accounting treatment for contributions of services is explained in Note 1(y).
(g) Special Payments
Special payments include ex gratia expenditure and other expenditure that the department is not contractually or legally obligated to make to other parties. In compliance with the Financial and Performance Management Standard 2009, the department maintains a register setting out details of all special payments greater than $5,000. The total of all special payments (including those of $5,000 or less) is disclosed separately within Other Expenses (Note 12). However, descriptions of the nature of special payments are only provided for special payments greater than $5,000.
(h) Cash and Cash Equivalents
For the purposes of the Statement of Financial Position and the Statement of Cash Flows, cash assets include all cash on hand, cash at bank and cash and cheques receipted but not banked at 30 June 2014.
(i) Receivables
Trade debtors are recognised at the amounts due at the time of sale or service delivery, i.e. the agreed purchase/contract price. Settlement of these amounts is required within a trading term range of 14 days to 30 days from invoice date depending on the service provided.
The collectability of receivables is assessed periodically with provision being made for impairment where applicable.
(j) Acquisitions of Assets
Actual cost is used for the initial recording of all non-current physical and intangible asset acquisitions. Cost is determined as the value given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets ready for use, such as architects’ fees and engineering design fees. However, any training costs are expensed as incurred.
Department of Energy and Water Supply Annual Report 2013–14 72 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
(j) Acquisitions of Assets (cont’d)
Where assets are received free of charge from another Queensland Government department (whether as a result of a machinery-of-Government or other involuntary transfer), the acquisition cost is recognised as the gross carrying amount in the books of the transferor immediately prior to the transfer together with any accumulated depreciation.
Assets acquired at no cost or for nominal consideration, other than from an involuntary transfer from another Queensland Government department, are recognised at their fair value at date of acquisition in accordance with AASB 116 Property, Plant and Equipment.
(k) Property, plant and equipment
Items of property, plant and equipment with a cost or other value equal to or in excess of the following thresholds are recognised for financial reporting purposes in the year of acquisition:
Asset Class Threshold Buildings $ 10,000 Infrastructure $ 10,000 Land $ 1 Plant and equipment $ 5,000
Items with a lesser value are expensed in the year of acquisition.
Repairs and Maintenance
Expenditure incurred in maintaining an asset within its normal operating capacity until the conclusion of its useful life is regarded as repairs and maintenance and is expensed. Expenditure that enhances an existing asset, significantly replaces or refurbishes an asset, or extends the asset’s useful life, capacity, function and/or efficiency is capitalised into the carrying amount of the asset.
(l) Revaluations of Non-Current Physical and Intangible Assets
Land, buildings and infrastructure assets are measured at fair value in accordance with AASB 116 Property, Plant and Equipment, AASB 13 Fair Value Measurement and Queensland Treasury and Trade’s Non-Current Asset Policies for the Queensland Public Sector. These assets are reported at their revalued amounts, being the fair value at the date of valuation, less any subsequent accumulated depreciation and impairment losses where applicable.
In respect of these classes, the cost of items acquired during the financial year has been judged by management to materially represent their fair value at the end of the reporting period.
Where intangible assets have an active market they are measured at fair value, otherwise they are measured at cost.
Property, plant and equipment classes measured at fair value are revalued on an annual basis either by appraisals undertaken by an independent professional valuer or internal expert, or by the use of appropriate and relevant indices. For financial reporting purposes, the revaluation process undertaken for the infrastructure assets has been managed by a team in the department’s Rockhampton branch, who determine the specific revaluation practices and procedures.
Revaluations using independent professional valuer or internal expert appraisals are undertaken at least once every five years. However if a particular asset class experiences significant and volatile changes in fair value, that class is subject to specific appraisal in the reporting period, where practicable, regardless of the timing of the last specific appraisal.
The fair values reported by the department are based on appropriate valuation techniques that maximise the use of available and relevant observable inputs and minimise the use of unobservable inputs (refer to Note 1(m)).
73 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
(l) Revaluations of Non-Current Physical and Intangible Assets (cont’d)
Where assets have not been specifically appraised in the reporting period, their previous valuations are materially kept up-to-date via the application of relevant indices. The department ensures that the application of such indices results in a valid estimation of the assets' fair values at reporting date. Indices for the departments land assets are obtained from the State Valuation Service (SVS), which are available either publicly, or are derived from market information available to SVS. SVS provides assurance of their robustness, validity and appropriateness for application to the relevant assets. Indices used are also tested for reasonableness by applying the indices to a sample of assets, comparing the results to similar assets that have been valued by an independent professional valuer or internal expert, and analysing the trend of changes in values over time. Through this process, which is undertaken annually, management assesses and confirms the relevance and suitability of indices provided by SVS based on the departments' own particular circumstances.
Any revaluation increment arising on the revaluation of an asset is credited to the asset revaluation surplus of the appropriate class, except to the extent it reverses a revaluation decrement for the class previously recognised as an expense. A decrease in the carrying amount on revaluation is charged as an expense, to the extent it exceeds the balance, if any, in the revaluation surplus relating to that class. On revaluation, accumulated depreciation is restated proportionately with the change in the carrying amount of the asset and any change in the estimate of remaining useful life.
Only those assets, the total values of which are material compared to the value of the class of assets to which they belong, are comprehensively re-valued.
Materiality concepts under AASB 1031 Materiality are considered in determining whether the difference between the carrying amount and the fair value of an asset is material.
Separately identified components of assets are measured on the same basis as the assets to which they relate.
The Department owns a number of non-commercial water infrastructure assets, during the 2013-14 financial year the department reviewed these assets including the most appropriate valuation methodology. The department has identified that 17 of these assets meet the definition of an asset under Non-Current Asset Policy 1 (NCAP1).
Accordingly, the department has arrived at a valuation for each of these assets using the Depreciated Replacement Cost (DRC) method. In doing so, the department utilised qualified department engineers assessed the replacement cost of these assets by applying the Modern Engineering Equivalent Replacement Asset (MEERA) approach, i.e. where the replacement cost of an asset is assessed on the basis of design and construction using modern technology.
The resulting valuations and useful lives have been assessed with the Proportional Restatement Method utilised to calculate accumulated depreciation in accordance with Non-Current Asset Policy 5 (NCAP5).
(m) Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly derived from observable inputs or estimated using another valuation technique.
Observable inputs are publicly available data that are relevant to the characteristics of the assets/liabilities being valued. Observable inputs used by the department include, but are not limited to, published sales data for land and general office buildings.
Unobservable inputs are data, assumptions and judgements that are not available publicly, but are relevant to the characteristics of the assets/liabilities being valued. Significant unobservable inputs used by the department include, but are not limited to, subjective adjustments made to observable data to take account of the characteristics of the department assets/liabilities, internal records of recent construction costs (and/or estimates of such costs) for assets' characteristics/functionality, and assessments of physical condition and remaining useful life. Unobservable inputs are used to the extent that sufficient relevant and reliable observable inputs are not available for similar assets/liabilities.
Department of Energy and Water Supply Annual Report 2013–14 74 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
(m) Fair Value Measurement (cont’d)
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use. All assets and liabilities of the department for which fair value is measured or disclosed in the financial statements are categorised within the following fair value hierarchy, based on the data and assumptions used in the most recent specific appraisals:
• Level 1 - represents fair value measurements that reflect unadjusted quoted market prices in active markets for identical assets and liabilities; • Level 2 - represents fair value measurements that are substantially derived from inputs (other than quoted prices included within level 1) that are observable, either directly or indirectly; and • Level 3 - represents fair value measurements that are substantially derived from unobservable inputs.
More specific fair value information about the department’s Property, Plant and Equipment is outlined in Note 16.
(n) Intangibles
Intangible assets with a cost or other value greater than $100,000 are recognised in the financial statements, items with a lesser value being expensed. Each intangible asset is amortised over its estimated useful life to the department, less any anticipated residual value. The residual value is zero for all the department's intangible assets.
It has been determined that there is not an active market for any of the department's intangible assets. As such, the assets are recognised and carried at cost less accumulated amortisation and accumulated impairment losses.
No intangible assets have been classified as held for sale or form a part of a disposal group held for sale.
Purchased Software
The purchase cost of this software has been capitalised and is being amortised on a straight-line basis over the period of the expected benefit to the department, namely 3 – 14 years.
Internally Generated Software
Costs associated with the development of computer software have been capitalised and are amortised on a straight-line basis over the period of expected benefit to the department, namely 3 – 14 years.
(o) Amortisation of Intangibles and Depreciation of Property, Plant and Equipment
Land is not depreciated as it has an unlimited useful life.
All intangible assets of the department have finite useful lives and are amortised on a straight line basis.
Property, plant and equipment is depreciated on a straight-line basis so as to allocate the net cost or re-valued amount of each asset, less its estimated residual value, progressively over its estimated useful life to the department.
Assets under construction (work in progress) are not depreciated or amortised until they reach service delivery capacity. Service delivery capacity relates to when construction is complete and the asset is first put to use or is installed ready for use in accordance with its intended application. These assets are then reclassified to the relevant classes with property, plant and equipment.
Where assets have separately identifiable components that are subject to regular replacement, these components are assigned useful lives distinct from the asset to which they relate and are depreciated accordingly.
Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful life of the asset to the department.
75 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
(o) Amortisation of Intangibles and Depreciation of Property, Plant and Equipment (cont’d)
For each class of depreciable asset the following depreciation and amortisation rates are used:
Physical asset class Rate %
Buildings 2 - 20
Infrastructure 2 - 5
Plant and equipment
Scientific and technical equipment 3.3 - 33.3 Office equipment 6.7 - 33.3 Computer equipment 7.7 - 33.3 Leasehold improvements 2 - 20
Intangible asset class Purchased software 12.5 - 25.0 Internally generated software 12.5 - 25.0
(p) Impairment of Non-Current Assets
All non-current physical assets are assessed for indicators of impairment on an annual basis. If an indicator of possible impairment exists, the department determines the asset's recoverable amount. Any amount by which the asset's carrying amount exceeds the recoverable amount is recorded as an impairment loss.
The asset's recoverable amount is determined as the higher of the asset's fair value less costs to sell and depreciated replacement cost.
An impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the asset is carried at a re-valued amount. When the asset is measured at a re-valued amount, the impairment loss is offset against the asset revaluation surplus of the relevant class to the extent available.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income, unless the asset is carried at a re-valued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. Refer also Note 1(l).
(q) Leases
Operating lease payments are representative of the pattern of benefits derived from the leased assets and are expensed in the periods which they are incurred.
The department does not have any finance leases.
(r) Payables
Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled on 30 day terms.
(s) Financial Instruments
Recognition Financial assets and financial liabilities are recognised in the Statement of Financial Position when the department becomes party to the contractual provisions of the financial instrument.
Department of Energy and Water Supply Annual Report 2013–14 76 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
(s) Financial Instruments (cont’d)
Classification Financial instruments are classified and measured as follows: Cash and cash equivalents – held at fair value through profit or loss Receivables – held at amortised cost Payables – held at amortised cost
The department does not enter into transactions for speculative purposes, nor for hedging. Apart from cash and cash equivalents, the department holds no financial assets classified at fair value through profit or loss.
All other disclosures relating to the measurement and financial risk management of financial instruments held by the department are disclosed in note 25.
(t) Employee Benefits
Employer superannuation contributions, annual leave levies and long service leave levies are regarded as employee benefits.
Payroll tax and workers' compensation insurance are a consequence of employing employees, but are not counted in an employee's total remuneration package. They are not employee benefits and are recognised separately as employee related expenses.
Wages, Salaries and Sick Leave
Wages and salaries due but unpaid at reporting date are recognised in the Statement of Financial Position at the current salary rates. For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values.
Prior history indicates that on average, sick leave taken each reporting period is less than the entitlement accrued. This is expected to continue in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by employees and no liability for unused sick leave entitlements is recognised. As sick leave is non- vesting, an expense is recognised for this leave as it is taken.
Annual Leave
The Queensland Government’s Annual Leave Central Scheme (ALCS) covers departments, commercialised business units and shared service providers. Under this scheme, a levy is made on the department to cover the cost of employees' annual leave (including leave loading and on-costs). The levies are expensed in the period in which they are payable. Amounts paid to employees for annual leave are claimed from the scheme quarterly in arrears.
No provision for annual leave is recognised in the department's financial statements as the liability is held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.
Long Service Leave
Under the Queensland Government’s long service leave scheme, a levy is made on the department to cover the cost of employees' long service leave. The levies are expensed in the period in which they are payable. Amounts paid to employees for long service leave are claimed from the scheme quarterly in arrears.
No provision for long service leave is recognised in the department's financial statements, the liability being held on a whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.
Superannuation
Employer superannuation contributions are paid to QSuper, the superannuation scheme for Queensland Government employees, at rates determined by the Treasurer on the advice of the State Actuary. Contributions are expensed in the period in which they are paid or payable. The department’s obligation is limited to its contribution to QSuper.
77 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
(t) Employee Benefits (cont’d)
The QSuper scheme has defined benefit and defined contribution categories. The liability for defined benefits is held on a Whole-of-government basis and reported in those financial statements pursuant to AASB 1049 Whole of Government and General Government Sector Financial Reporting.
Key Management Personnel and Remuneration
Key executive management personnel and remuneration disclosures are made in accordance with section 5 of the Financial Reporting Requirements for Queensland Government Agencies issued by Queensland Treasury and Trade. Refer to note 8 for the disclosures on key management personnel and remuneration.
(u) Provisions
Provisions are recorded when the department has a present obligation, either legal or constructive as a result of a past event. They are recognised at the amount expected at reporting date for which the obligation will be settled in a future period. Where the settlement of the obligation is expected after 12 or more months, the obligation is discounted to the present value using an appropriate discount rate.
(v) Finance Costs
The department does not incur any finance costs.
(w) Major Departmental Services of the Department
The department is responsible for the oversight of Queensland’s energy and water industries to ensure these essential services are provided to Queensland consumers in a safe, efficient and reliable way.
The department’s functions are delivered through two main service areas Energy and Water Supply, which deliver policy development, reform and regulation which improves the resilience of energy and water supplies while addressing cost of living pressures.
(x) Insurance
The department’s non-current physical assets, apart from its non-commercial water infrastructure assets, are insured through the Queensland Government Insurance Fund with premiums being paid on a risk assessment basis. In addition, the department pays premiums to WorkCover Queensland in respect of its obligations for employee compensation.
(y) Services Received Free of Charge or at Below Fair Value
In addition to the corporate services delivered from within the department, it also participates in a corporate partnership arrangement whereby certain agencies “host” a number of strategic and operational corporate services to DEWS as “recipient” department.
The “host” agency of each corporate service function receives the appropriation of funds and reports full time equivalent positions in the respective agency. The model is multi-layered for different corporate services functions. That is, some functions are provided to two agencies, and some provided to six agencies with any combination in between.
As a “recipient” agency, DEWS receives defined services from the following agencies:
Department of Agriculture, Forestry and Fisheries (Information Management; Fleet Management; Telecommunications) Department of Natural Resources and Mines (Accommodation Services; Legal Services; Human Resources; Corporate Communications; Privacy and Ethics) Department of Environment and Heritage Protection (Strategic Procurement; Right to Information).
Department of Energy and Water Supply Annual Report 2013–14 78 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
(z) Contributed equity
Non reciprocal transfers of assets and liabilities between wholly-owned Queensland State Public Sector entities as a result of machinery-of-Government changes are adjusted to Contributed Equity in accordance with Interpretation 1038 Contributions by Owners Made to Wholly Owned Public Sector Entities. Appropriations for equity adjustments are similarly designated.
(aa) Taxation
The department is a State body as defined under the Income Tax Assessment Act 1936 and is exempt from Commonwealth taxation with the exception of Fringe Benefits Tax (FBT) and Goods and Services Tax (GST). As such, input tax credits receivable from and GST payable to the Australian Taxation Office (ATO), along with FBT, are recognised and accrued (refer to note 14).
(ab) Issuance of Financial Statements
The financial statements are authorised for issue by the Director-General and Chief Finance Officer at the date of signing the Management Certificate.
(ac) Accounting Estimates and Judgements
The preparation of financial statements necessarily requires the determination and use of certain critical accounting estimates, assumptions, and management judgements that have that potential to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Such estimates, judgements and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods as relevant.
Estimates and assumptions that have a potential significant effect are outlined in the following financial statement notes:
Valuation of Property, Plant and Equipment – Notes 1(l) – (m) and Note 16 Depreciation and Amortisation – Note 1(o) and Note 11 Commitments – Note 23
The Australian Government passed the Clean Energy Act 2011 which resulted in the introduction of a price on carbon emissions made by Australian businesses from 1 July 2012.
From 1 July 2014, the government has abolished the carbon tax. The withdrawal of the carbon pricing mechanism is not expected to have a significant impact on the department’s critical accounting estimates, assumptions and management judgments.
(ad) Rounding and Comparatives
Amounts included in the financial statements are in Australian dollars and have been rounded to the nearest $1,000 or, where that amount is $500 or less, to zero, unless disclosure of the full amount is specifically required.
Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period.
(ae) New and Revised Accounting Standards
The department did not voluntarily change any of its accounting policies during 2013-14. Australian Accounting Standard changes applicable for the first time for 2013-14 have had a significant impact on the department’s financial statements due to AASB 13 Fair Value Measurement, as explained below.
AASB 13 Fair Value Measurement became effective from reporting periods beginning on or after 1 January 2013. AASB 13 sets out a new definition of 'fair value' as well as new principles to be applied when determining the fair value of assets and liabilities. The new requirements apply to all of the department's assets and liabilities (excluding leases) that are measured and/or disclosed at fair value or another measurement based on fair value. The impacts of AASB 13 relate to the fair value measurement methodologies used and financial statement disclosures made in respect of such assets and liabilities.
79 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
(ae) New and Revised Accounting Standards (cont’d)
The department reviewed its fair value methodologies (including instructions to valuers, data used and assumptions made) for all items of property, plant and equipment measured at fair value to assess whether those methodologies comply with AASB 13. To the extent that the previous methodologies were not in compliance with AASB 13, valuation methodologies were revised accordingly to be in line with AASB 13. The revised valuation methodologies have not resulted in material differences from the previous methodologies.
AASB 13 has required an increased amount of information to be disclosed in relation to fair value measurements for both assets and liabilities. For those fair value measurements of assets or liabilities that substantially are based on data that is not 'observable' (i.e. accessible outside the department), the amount of information disclosed has significantly increased. Note 1(m) explains some of the principles underpinning the additional fair value information disclosed. Most of this additional information is set out in note 16 Property Plant and Equipment.
A revised version of AASB 119 Employee Benefits became effective for reporting periods beginning on or after 1 January 2013. As the department does not directly recognise any employee benefit liabilities (refer to Note 1(t)), the only implications for the department were the revised concept of 'termination benefits' and the revised recognition criteria for termination benefit liabilities. If termination benefits meet the AASB 119 timeframe criterion for 'short-term employee benefits', they will be measured according to the AASB 119 requirements for short-term employee benefits'. Otherwise, termination benefits need to be measured according to the AASB 119 requirements for 'other long-term employee benefits'. Under the revised standard, the recognition and measurement of 'other long-term employee benefits' are accounted for according to most of the requirements for defined benefit plans.
The revised AASB 119 includes changed criteria for accounting for employee benefits as 'short-term employee benefits'. However, as the department is a member of the Queensland Government central schemes for annual leave and long service leave, this change in criteria has no impact on the department’s financial statements as the employer liability is held by the central scheme. The revised AASB 119 also includes changed requirements for the measurement of employer liabilities/assets arising from defined benefit plans, and the measurement and presentation of changes in such liabilities/assets. The department makes employer superannuation contributions only to QSuper, and the corresponding QSuper employer benefit obligation is held by the State. Therefore, those changes to AASB 119 will have no impact on the department.
The department is not permitted to early adopt a new or amended accounting standard ahead of the specified commencement date unless approval is obtained from Queensland Treasury and Trade. Consequently, the department has not applied any Australian accounting standards and interpretations that have been issued but are not yet effective. The department applies standards and interpretations in accordance with their respective commencement dates.
At the date of authorisation of the financial report, the expected impacts of new or amended Australian accounting standards with future commencement dates are as set out below.
AASB 1055 Budgetary Reporting applies from reporting periods beginning on or after 1 July 2014. The department will need to include in its 2014-15 financial statements the original budgeted figures from the Income Statement, Statement of Financial Position, Statement of Changes in Equity, and Cash Flow Statement as published in the 2014-15 Queensland Government's Service Delivery Statements. The budgeted figures will need to be presented consistently with the corresponding (actuals) financial statements, and will be accompanied by explanations of major variances between the actual amounts and the corresponding original budgeted figures.
In addition, the department will need to include the original budgeted information for major classes of administered income and expenses, and major classes of administered assets and liabilities. This budgeted information will need to be presented consistently with the corresponding (actuals) administered information, and will be accompanied by explanations of major variances between the actual amounts and the corresponding budgeted financial information.
Department of Energy and Water Supply Annual Report 2013–14 80 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
(ae) New and Revised Accounting Standards (cont’d)
AASB 9 Financial Instruments and AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] will become effective for reporting periods beginning on or after 1 January 2017. The main impacts of these standards on the department are that they will change the requirements for the classification, measurement and disclosures associated with the department's financial assets. Under the new requirements, financial assets will be more simply classified according to whether they are measured at amortised cost or fair value. Pursuant to AASB 9, financial assets can only be measured at amortised cost if two conditions are met. One of these conditions is that the asset must be held within a business model whose objective is to hold assets in order to collect contractual cash flows. The other condition is that the contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The department has commenced reviewing the measurement of its financial assets against the new AASB 9 classification and measurement requirements. However, as the classification of financial assets at the date of initial application of AASB 9 will depend on the facts and circumstances existing at that date, the department's conclusions will not be confirmed until closer to that time. At this stage, and assuming no change in the types of transactions the department enters into, it is not expected that any of the department's financial assets will meet the criteria in AASB 9 to be measured at amortised cost. Therefore, as from the 2017-18 financial statements, all of the department's financial assets are expected to be required to be measured at fair value, and classified accordingly (instead of the measurement classifications presently used in Notes 1(s) and 25). The same classification will be used for net gains/losses recognised in the Statement of Comprehensive Income in respect of those financial assets. In the case of the department's current receivables, as they are short-term in nature, the carrying amount is expected to be a reasonable approximation of fair value.
The department will not need to restate comparative figures for financial instruments on adopting AASB 9 as from 2017-18. However, changed disclosure requirements will apply from that time. A number of one-off disclosures will be required in the 2017-18 financial statements to explain the impact of adopting AASB 9.
Assuming no change in the types of financial instruments that the department enters into, there will not be a significant ongoing disclosure impacts for the department.
All other Australian accounting standards and interpretations with future commencement dates are either not applicable to the department's activities, or have no material impact on the department.
81 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
2014 2013 $’000 $’000
2. Reconciliation of payments from consolidated fund to Appropriation revenue for services recognised in Statement of Comprehensive Income
Budgeted appropriation revenue for services 103,473 151,926 Lapsed appropriation revenue for services (55,825) (71,262) Total appropriation revenue for services receipts (cash) 47,648 80,664 Less opening balance of appropriation revenue receivable (927) (705) Plus opening balance appropriation revenue payable 13,042 1,265 Closing balance of appropriation adjustment receivable/payable (1,737) (12,115) Net Appropriation Revenue 58,026 69,109 Plus: Deferred appropriation refundable to QTT expense 1,861 - Appropriation revenue for services recognised in Statement of Comprehensive Income 59,887 69,109
Reconciliation of payments from Consolidated Fund to equity adjustment recognised in Contributed Equity
Budgeted equity adjustment appropriation - 500 Lapsed equity adjustment - (500) Equity adjustment recognised in Contributed Equity - -
Administered on a whole-of-government basis
Budgeted appropriation revenue for services 639,044 717,645 Lapsed appropriation revenue for services (63,967) (13,709) Unforeseen expenditure - - Total appropriation revenue for services receipts (cash) 575,077 703,936
Plus opening balance appropriation revenue payable 9,806 42,311 Less: closing balance of appropriation adjustment receivable/payable (41,064) (9,806) Net Appropriation Revenue 543,819 32,505 Plus: Deferred appropriation refundable to QTT expense 41,064 - Appropriation revenue for services recognised in Statement of Comprehensive Income 584,883 736,441
Reconciliation of payments from Consolidated Fund to equity adjustment recognised in Contributed Equity
Budgeted equity adjustment appropriation 4,000 - Lapsed equity adjustment (78,527) - Equity adjustment receipts (payments) (74,527) - Plus: Closing balance of equity adjustment receivable 70,000 Equity adjustment recognised in contributed equity (4,527) -
Department of Energy and Water Supply Annual Report 2013–14 82 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
2014 2013 $’000 $’000
3. User charges and fees Administered on a whole-of-government basis
Fees 1,081 1,538 Total 1,081 1,538
4. Grants and other contributions
Grants - 42 Services received at below fair value 59 641 Total 59 683
Administered on a whole-of-government basis
Grants 413 6,883 Total 413 6,883
5. Interest
Interest received on fund balances - 115 Total - 115
6. Other revenue
Recoveries 221 222 Other revenues 2,600 2,977 Total 2,821 3,199
Administered on a whole-of-government basis
Other revenue 633 167 Total 633 167
83 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
2014 2013 $’000 $’000
7. Employee expenses
Employee Benefits
Wages and salaries 19,800 21,463 Employer superannuation contributions * 2,648 2,767 Annual leave levy/expense* 2,003 2,034 Long service leave levy* 455 478 Termination benefits 665 3,978 Other employee benefits 10 35
Employee Related Expenses
Salary related taxes * 1,257 1,236 Workers' compensation premium * 242 228 Other employee related expenses 157 80
Total Employee Expenses 27,237 32,299
* Refer to note 1 (t). Employee expenses has been reclassified for both current and comparative years to reflect more relevant information. Refer to note 1(ad). The number of employees as at 30 June, including both full-time employees and part-time employees, measured on a full-time equivalent basis (reflecting Minimum Obligatory Human Resource Information (MOHRI)) is:
Number of employees: 232 238 8. Key management personnel and remuneration expenses a) Key Management Personnel
The following details for key management personnel include those positions that had authority and responsibility for planning, directing and controlling the activities of the department during 2013-14. Further information on these positions can be found in the body of the Annual Report under the section relating to Executive Management.
Position Responsibilities Current Incumbents Contract Date appointed to classification and position (Date appointment resigned from authority position)
Director-General The Director-General is responsible for the CEO 3; employed 23 September 2013 efficient, effective and economic administration under s92 of the of the department. Public Service Act Director-General (Former) 2008 21 May 2012 (20 September 2013) Deputy Director-General, The Deputy Director-General is responsible for CEO 5; employed 4 June 2012 Energy the efficient, effective and economic under s122 of the administration of the Energy functions and Public Service Act responsibilities of the department. 2008
Acting Deputy Director- The Deputy Director-General is responsible for SES 4; employed 19 March 2013 – 26 General, Energy the efficient, effective and economic under s122 of the July 2013 administration of the Energy functions and Public Service Act responsibilities of the department. 2008
SES 3; employed 26 May 2014 – 25 under s122 of the July 2014 Public Service Act 2008
Department of Energy and Water Supply Annual Report 2013–14 84 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
8. Key management personnel and remuneration expenses (cont’d) Acting Deputy Director- The Deputy Director-General is responsible for SES 4; employed 29 July 2013 - 29 General, Energy the efficient, effective and economic under s122 of the November 2013 administration of the Energy functions and Public Service Act responsibilities of the department. 2008
Deputy Director-General, The Deputy Director-General is responsible for SES 4; employed 20 August 2012 – Water Supply the efficient, effective and economic under s122 of the 19 August 2013 administration of the Water Supply functions and Public Service Act responsibilities of the department. 2008
SES 3; employed 20 August 2013 under s122 of the Public Service Act 2008 Deputy Director-General, The Deputy Director-General provides strategic SES 3; employed 29 July 2013 Business and Corporate leadership and direction of the department's under s110 of the Partnership corporate and business support functions of the Public Service Act agency. 2008
General Manager, Planning The General Manager is responsible for the SES 2; employed 27 October 2011 Performance and Governance efficient and effective planning performance and under s122 of the (7 March 2014) and Chief Finance Officer governance of the department. Public Service Act Position ceased 2008 7 March 2014
b) Remuneration Expenses
Remuneration policy for the department’s key management personnel is set by the Queensland Public Service Commission as provided for under the Public Service Act 2008. The remuneration and other terms of employment for the key management personnel are specified in employment contracts. The contracts may provide for other benefits including a motor vehicle allowance and, for the chief executive officers (CEOs), may provide for the provision of At Risk Component payments.
For the 2013-14 year, remuneration packages of key management personnel increased by 2.2% in accordance with government policy.
The following disclosures focus on the expenses incurred by the department during the respective reporting periods that is attributable to key management positions. Therefore, the amounts disclosed reflect expenses recognised in the Statement of Comprehensive Income.
Remuneration expenses for key management personnel comprises the following components:
Short term employee expenses which include: salaries, allowances and leave entitlements earned and expensed for the entire year or for that part of the year during which the employee occupied the specified position. Performance payments recognised as an expense during the year non-monetary benefits - consisting of provision of vehicle together with fringe benefits tax applicable to the benefit.
Long term employee expenses include amounts expensed in respect of long service leave entitlements earned.
Post-employment expenses include amounts expensed in respect of employer superannuation obligations.
Redundancy payments are not provided for within individual contracts of employment. Contracts of employment provide only for notice periods or payment in lieu of notice on termination, regardless of the reason for termination.
85 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
8. Key management personnel and remuneration expenses (cont’d)
1 July 2013 – 30 June 2014
Position (date resigned if applicable) Short Term Employee Long Term Post - Termination Total Expenses Employee Employment Benefits Expenses Expenses Expenses
Monetary Non- Expenses Monetary $'000 $'000 $'000 $'000 $'000 Benefits $'000 Director-General 308 3 7 34 - 352 Director-General (20 September 2013) 95 5 2 7 - 109 Deputy Director-General, Energy 296 7 6 29 - 338 Acting Deputy Director-General, 36 1 1 3 - 41 Energy Acting Deputy Director-General, 61 2 1 6 - 70 Energy Deputy Director-General, Water Supply 224 7 5 24 - 260 Deputy Director-General, Business and ------Corporate Partnership* General Manager, Planning Performance and Governance and 114 6 2 13 - 135 Chief Finance Officer (7 March 2014)
* This position is shared with the Department of Natural Resources and Mines (DNRM) and is fully funded by DNRM to 30 June 2014 as per the Corporate Partnership arrangement. Remuneration is disclosed in the financial statements of DNRM.
1 July 2012 – 30 June 2013
Position (date resigned if applicable) Short Term Employee Long Term Post - Termination Total Expenses Employee Employment Benefits Expenses Expenses Expenses
**Monetary Non- Expenses Monetary $'000 $'000 $'000 $'000 $'000 Benefits $'000 Director-General 408 7 8 26 449
Deputy Director-General, Energy 267 7 5 30 309
Acting Deputy Director-General, 122 1 2 11 136 Energy Deputy Director-General, Water 178 2 4 19 203 Supply and Sewerage Services Deputy Director-General, Business - - - - - and Corporate Partnership* General Manager, Planning Performance and Governance and 168 7 3 18 196
Chief Finance Officer General Manager, Liaison Office 20 - - 2 22
Acting General Manager, Liaison 46 3 1 5 55 Office Director, Floods Inquiry Response 54 - 3 6 63 and Delivery
* This position is shared with DNRM and is fully funded by DNRM to 30 June 2013 as per the Corporate Partnership arrangement. ** Previously reported as “Base” and reported net of leave accruals
Department of Energy and Water Supply Annual Report 2013–14 86 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
8. Key management personnel and remuneration expenses (cont’d) c) Performance Payments
The remuneration package for the Director-General includes a potential performance payment up to a maximum of $60,202. Eligibility for such a performance payment is conditional on the achievement of objectives that are documented in that position’s performance agreement.
Public service CEOs have part of their total remuneration package placed “at risk” and paid only if they meet or exceed the agreed performance standards. The chief executive performance evaluation process comprises: reporting on end of year achievement and self-assessment by each chief executive against their performance agreement/intended outcomes;
analysis by the Commission Chief Executive (Public Service Commission), the Under Treasurer (Queensland Treasury and Trade) and the Director-General (Department of the Premier and Cabinet) of relevant performance data;
a rigorous, independent and objective assessment of CEOs performance at the end of each financial year using, amongst other things, information provided from above two steps. This performance assessment is undertaken by a Chief Executive Performance Evaluation Committee (CEPEC);
recommendations from the CEPEC to the Premier; and the Premier’s ultimate discretion regarding whether the CEO will be paid an At Risk Component payment and, if so, how much.
As at the date of management certification of these financial statements, the eligibility to a performance payment for the Director-General in respect of the 2013-14 financial year had not yet been confirmed. With respect to the process to determine eligibility for chief executive officers, recommendations are yet to be made by the Chief Executive Performance Evaluation Committee to the Premier. Therefore, any performance payment approved by the Premier will be reported as an expense within 2014-15.
The remuneration package for the Deputy Director-General, Energy includes a potential performance payment up to a maximum of 15 per cent of that position’s total fixed remuneration, which equates to approximately $ 43,121. Eligibility for such a performance payment is determined by the Director-General and is conditional on the achievement of objectives that are documented in that position’s performance agreement.
As at the date of management certification of these financial statements, the eligibility to a performance payment for the Deputy Director-General, Energy in respect of the 2013-14 financial year had not yet been confirmed. A decision by the Director-General is expected to be made during the financial year with any approved performance payment to be reported as an expense within 2014-15.
No other key management personnel are eligible for performance payments.
The basis for performance payments expensed in the 2013-14 financial year is set out below:
Position Date Paid Basis for payment Deputy Director-General, Energy 1 November 2013 Consistent with the abovementioned timeframe and process, this payment relates to the achievement of performance criteria during 2012-13. In accordance with the terms of the performance agreement for this position, it was determined that a payment of $28,228 be awarded.
There were no performance payments recognised as an expense during 2012-13.
The aggregate performance payments expensed in respect of all key management personnel are as follows:
2014 2013 $‘000 $’000
Key Management Personnel 28 -
87 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
2014 2013 $’000 $’000
9. Supplies and services
Consultants and contractors 5,184 2,925 Accommodation expenses 2,462 3,153 Shared services costs 1,528 1,216 Computer expenses 1,132 1,142 Queensland Government Solar Hot Water Rebate - 990 Travel 239 273 Motor vehicle expenses 101 157 Subscriptions and memberships 74 44 Other 487 475 Total 11,207 10,375
Administered on a whole-of-government basis
Consultants and contractors 406 2,243 Other supplies and services 307 8 Total 714 2,250
Supplies and services has been reclassified for both current and comparative years to reflect more relevant information. Refer to note 1(ad).
10. Grants and subsidies
Community service obligation - Water * - 16,299 Grants and subsidies - Water 16,201 7,906 Grants and subsidies - Energy 6,305 5,036 Total 22,506 29,242
Administered on a whole-of-government basis
Communitiy service obligation - Water * 14,367 - Communitiy service obligation - Energy 524,411 648,230 Water rebate (948) 87,255 Total 537,830 735,485
* Community Service Obligations (CSOs) relating to Water were recognised in 2013 expenditure in Controlled Entity, in 2014 the expenditure has been appropriately recognised in Administered Entity (refer note 1(c)).
Department of Energy and Water Supply Annual Report 2013–14 88 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
2014 2013 $’000 $’000
11. Depreciation and amortisation
Depreciation and amortisation incurred in respect of:
Plant and equipment 170 231 Intangibles 43 46
Total 213 277
Administered on a whole-of-government basis
Depreciation incurred in respect of:
Buildings 3 3 Infrastructure 6,811 5,376 Total 6,814 5,379
12. Other expenses
Appropriation revenue for services refundable 1,861 - External audit fees * 150 168 Legal fees 84 385 Insurance premiums - QGIF 50 20 Insurance premiums - Other 7 - Bad and impaired debts - 35 Special payments - 67 Net losses from disposal of property, plant and equipment - 2 Other 44 1 Total 2,196 676
*Total audit fees payable to the Queensland Audit Office relating to the 2013-14 financial statements are estimated to be $140,000 (2013: $129,000). There are no non-audit services included in this amount.
Administered on a whole-of-government basis
Administered Loss on Disposal of Infrastructures - 8,922 Total - 8,922
13. Cash and cash equivalents
Imprest accounts 1 1 Cash at bank 22,875 46,595 Total 22,876 46,596
89 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
2014 2013 $’000 $’000
13. Cash and cash equivalents (cont’d)
Administered on a whole-of-government basis
Cash at bank 62,854 123,208 Total 62,854 123,208
Departmental bank accounts grouped within the Whole-of-government set-off arrangement with the Queensland Treasury Corporation do not earn interest on surplus funds.
14. Receivables
Trade debtors 554 1,751 Less: Allowance for impairment loss - 25 554 1,726
GST input tax credits receivable 233 314 GST payable (6) (105) 227 210
Annual leave reimbursements 514 243 Loans and Advances 1,000 979 Other receivables 8 477 Appropriation revenue received for services - 927 Long service leave reimbursements - 454 1,522 3,081
Total current assets 2,303 5,015
Loans and advances 500 1,500
Total non current assets 500 1,500
Administered on a whole-of-government basis
Trade debtors 802 5,060 Less: Allowance for impairment loss - 26 802 5,034
GST receivable 9,244 10,939 Appropriation Receivable 28,934 - 38,179 10,939
Total current assets 38,981 15,973
Refer to note 25(c) Financial Instruments (Credit Risk Exposure) for an analysis of movements in the allowance for impairment loss.
15. Other current assets
Prepayments 50 - Total 50 -
Department of Energy and Water Supply Annual Report 2013–14 90 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
2014 2013 $’000 $’000
16. Property, plant and equipment
Plant and equipment: At cost 2,164 2,143 Less: accumulated depreciation 1,262 1,115 Total 902 1,028
Plant and equipment
The department has plant and equipment with an original cost of $0.713M and a written down value of zero still being used in the provision of services. These assets will be replaced or disposed as required by the department in 2014-15 or subsequent years.
Plant & Property, plant and equipment reconciliation Total Equipment 2014 2014 $'000 $'000 Carrying amount at 1 July 2013 1,028 1,028 Acquisitions 26 26 Disposals - - Transfers in from other Queensland Government entities 18 18 Depreciation (170) (170) Carrying amount at 30 June 2014 902 902
Plant & Total Equipment 2013 2013 $'000 $'000 Carrying amount at 1 July 2012 685 685 Acquisitions 564 564 Disposals (2) (2) Transfers in from other Queensland Government entities 12 12 Depreciation (231) (231) Carrying amount at 30 June 2013 1,028 1,028
91 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
2014 2013 $’000 $’000
16. Property, plant and equipment (cont’d)
Administered on a whole-of-government basis
Land At valuation 709 677
Buildings At valuation 98 98 Less: accumulated depreciation 21 18 77 80
Infrastructure At valuation 563,543 330,893 Less: accumulated depreciation 327,197 162,611 236,347 168,282
Work in progress 48 -
Total 237,180 169,039
Land
The department’s land was last revalued based on specific appraisals by the State Valuation Service in May 2014. The fair value of land was based on publicly available data on sales of similar land in the area in accordance with industry standards. In determining the values, adjustments were made to the sales data to take into account the characteristics of the land, current intentions for use, any legal/zoning restrictions on the land and the highest and best use of the asset given any identified restrictions – refer to the reconciliation table later in this note for information about the fair value classification of the department’s land.
Infrastructure
The department’s infrastructure (non-commercial water assets) are valued at $236.347M.
The departments non-commercial water assets was last revalued by qualified department engineers in May 2014, using a depreciated replacement cost approach (as there is no active market for such assets). The depreciated replacement cost was based on a combination of internal records of the original cost of the plant, adjusted for contemporary technology and construction approaches (MEERA). Significant judgement is also used to assess the remaining service potential of the assets, given local climatic and environmental conditions, projected usage, and records of the current condition of the assets.
Department of Energy and Water Supply Annual Report 2013–14 92
- 240 2014 2013 (269) (177) $'000 Total $'000 Total 5,397 (6,814) (8,922) (5,379) 74,984 178,120 169,039 237,180 169,039
------48 48 740 2014 2013 (740) $'000 $'000 Work in Work Work in Work Progress Progress
- - - 740 2014 2013 $'000 $'000 5,397 (6,811) (8,922) (5,376) 74,875 168,282 176,443 236,347 168,282 Infrastructure Infrastructure
------(3) (3) 80 83 77 80 2014 2013 $'000 $'000 Buildings Buildings
- - - - -
677 854 192 109 709 677 2014 2013 (269) (177) Land $'000 Land Land $'000
- 14
d)
’ government basis - of - hole w
Property, plant and equipmentplant (cont and Property,
Property, equipment plant and reconciliation Carrying amount 2013 at 1 July Acquisitions Transfers out to otherQueensland Government entities revaluationNet increments/(decrements) Depreciation Carryingat amount 30 June 2014 Carrying amount 2012 at 1 July Acquisitions Disposals Transfers out from otherQueensland Government entities Transfers between asset classes Depreciation Carryingat amount 30 June 2013
Department of Energy and WaterDepartmentof Energy Supply 2013 the Statements Financial of Notes part to forming and 16. Administered on a
93 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
16. Property, plant and equipment (cont’d)
Categorisation of fair values recognised as at 30 June 2014 (refer to note 1(m))
Level 2 Level 3 Total $'000 $,000 $'000 Land and Buildings 786 786 Infrastructure 236,347 236,347
Valuation techniques and process used to determine level 3 fair values
The following table summarises the quantitative information about the significance in the level 3 unobservable inputs used in the fair value measurements.
Unobservable inputs Basis Range of Inputs Relationship between unobservable inputs and fair value MEERA Value Recently calculated 20% contingency Increase in costs would budget figures form the allowance for site result in higher fair value MEERA valuation basis. conditions Terminal Values Engineering judgement Engineers estimate Increase in terminal value would result in higher fair value Potential alternate use Operational assessment Management assessment Higher alternate use would results in higher fair value
Assets where current use is not highest and best use
The Department owns and operates 22 structures in regional and remote Queensland for the benefit of local communities. The main benefits are water supply for towns, mines, agriculture, domestic and stock purposes; recreation and tourism; basic flood mitigation, emergency water reserves and road access. Taking into consideration the State Government’s strategies - WaterQ, RegionsQ, DestinationQ and ResourcesQ; as well as enquiries from local councils, mining companies and agriculture developers, management has determined that the current use is not the highest and best use of these assets. Future potential for other economic use of water entitlements and these structures is considerably more than the current use. The Department is not prevented from transferring these assets to another entity that could deliver greater social and economic benefits to the community. Dams such as Copperfield Dam and Corella Dam have been identified in studies as supply sources for potential mining and irrigation developments
The Department reviewed its non-commercial water infrastructure assets, during the 2013-14 financial year including the most appropriate valuation methodology. The department has identified that 17 of these assets meet the definition of an asset under Non-Current Asset Policy 1 (NCAP1).
The department has arrived at a valuation for each of these assets using the Depreciated Replacement Cost (DRC) method. In doing so, the department utilised qualified department engineers to assess the replacement cost of these assets by applying the Modern Engineering Equivalent Replacement Asset (MEERA) approach, i.e. where the replacement cost of an asset is assessed on the basis of design and construction using modern technology.
Separately identified components of assets are measured on the same basis as the assets to which they relate.
Department of Energy and Water Supply Annual Report 2013–14 94 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
2014 # 2013 $’000 $’000
17. Intangibles Software Purchased At cost 430 430 Less: accumulated amortisation 390 348 40 82 Software Internally Generated At cost 367 367 Less: accumulated amortisation 367 367 - - Software Work In Progress 116 - Total 156 82
# 2013 figures have been restated
The department’s Water Industry Compliance Database with an original cost of $0.367M and a written down value of zero is still in very limited use in the provision of services. This asset is due for partial replacement in 2014-15 and full disposal by 30 June 2016.
Intangibles Reconciliation
Software Software Software Internally Work in Total Purchased Generated Progress 2014 2014 2014 2014 $'000 $'000 $'000 $'000 Carrying amount at 1 July 2013 82 - - 82 Acquisitions - - 116 116 Disposals - - - - Amortisation (43) - - (43) Carrying amount at 30 June 2014 39 - 116 156
Software Software Software Internally Work in Total Purchased Generated Progress 2013 2013 2013 2013 $'000 $'000 $'000 $'000 Carrying amount at 1 July 2012 125 3 - 128 Acquisitions - - - - Disposals - - - - Amortisation (43) (3) - (46) Carrying amount at 30 June 2013 82 - - 82
95 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
2014 2013 $’000 $’000
18. Payables
Current Trade creditors 920 562 Grants and subsidies payable 5,473 9,743 Other creditors 1,032 12,607 Total 7,425 22,912
Administered on a whole-of-government basis
Current Transfer of administered item revenue to government payable 585 6,062 Transfer of appropriation revenue to government payable - - Community service obligations 102,124 123,764 Other creditors 96 1,564 Total 102,805 131,390
19. Accrued employee benefits
Accrued salaries and wages 77 - Annual leave levy payable 600 846 Long Service leave levy payable 336 236 Other 10 310 Total 1,023 1,392
20. Other liabilities
Current liabilities Unearned revenue 301 - Appropriation revenue for services refundable 1,737 13,042 Total 2,038 13,042
Administered on a whole-of-government basis
Current Unearned Revenue - 9,806
Total - 9,806
Department of Energy and Water Supply Annual Report 2013–14 96 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
21. Asset revaluation surplus by class
Administered on a whole-of-government basis Asset revaluation surplus by class Land Buildings Infrastructure Total $'000 $'000 $'000 $'000 Balance 1 July 2013 - 21 162,076 162,097 Revaluation increments 191 - 74,875 75,066 Revaluation decrements (83) - - (83) Impairment losses through equity - - - - Impairment reversals through equity - - - - Balance 30 June 2014 109 21 236,951 237,081
Balance 1 July 2012 - 21 162,076 162,097 Revaluation increments - - - - Revaluation decrements - - - - Impairment losses through equity - - - - Impairment reversals through equity - - - - Balance 30 June 2013 - 21 162,076 162,097
The asset revaluation surplus represents the net effect of upward and downward revaluations of assets to fair value.
22. Reconciliation of operating result from continuing operations to net cash
2014 2013 $'000 $'000
Operating surplus/(deficit) (592) 237
Depreciation and amortisation expense 213 277 Bad and impaired debts - 35 Loss on disposal of non current asset - 2 Goods and services received below fair value (51) (621)
Change in assets and liabilities: (Increase)/decrease in receivables 634 (758) (Increase)/decrease in other current assets (50) 1,919 (Increase)/decrease in GST input tax credits receivable (17) (164) Increase/(decrease) in accounts payable (24,345) 12,535 Increase/(decrease) in accrued employee benefits (369) 3,016 Increase/(decrease) in other current liabilities - 9,751
Net cash provided by (used in) operating activities (24,577) 26,229
Administered on a whole-of-government basis 2014 2013 $'000 $'000 Reconciliation of net surplus / (deficit) to net cash provided by / (used in) operating activities Operating result from continuing operations (1,001) (8,321) Depreciation expense 6,814 5,379 Loss on disposal of non current assets - 8,922 Change in assets and liabilities: (Increase)/decrease in net operating receivable (59,490) (9,748) Increase/(decrease) in payables (1,910) 54,482
Net cash from operating activities (55,587) 50,714
97 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
2014 2013 $’000 $’000
23. Commitments for expenditure
(a) Non-Cancellable Operating Lease
Commitments under operating leases at reporting date are inclusive of anticipated GST and are payable as follows: Operating expenses 18 27 Building, car park and storage leases 21,729 25,048 21,747 25,075
Not later than one year 2,980 2,905 Later than one year and not later than five years 12,350 12,263 Later than five years 6,417 9,907 Total 21,747 25,075
(b) Other Expenditure Commitments Other expenditure committed at the end of the period but not recognised in the accounts are as follows:
Operating expenses 1,063 588 1,063 588
Not later than one year 953 588 Later than one year and not later than five years 110 - Later than five years - - Total 1,063 588
(c) Grants and Subsidies
Grants and subsidies commitments inclusive of anticipated GST, committed at the end of period but not recognised in the accounts are as follows: Grants and subsidies - 1,810 - 1,810 Not later than one year - 1,810 Later than one year and not later than five years - - Later than five years - - Total - 1,810
Department of Energy and Water Supply Annual Report 2013–14 98 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
23. Commitments for expenditure (cont’d)
Administered on a whole-of-government basis Restated # 2014 2013 $'000 $'000
(a) Other Expenditure Commitments Other expenditure committed at the end of the period but not recognised in the accounts are as follows:
Operating expenses 734 405 734 405
Not later than one year 734 405 Later than one year and not later than five years - - Later than five years - - Total 734 405
(b) Grants and Subsidies Grants and subsidies commitments inclusive of anticipated GST, committed at the end of period but not recognised in the accounts are as follows:
Grants and subsidies 1,444,898 272,910 1,444,898 272,910
Not later than one year 727,503 258,467 Later than one year and not later than five years 717,395 14,443 Later than five years - - Total 1,444,898 272,910
# The department has restated the commitment for grants and subsidies for water and energy related community service obligations. This is described in Note 26 as a correction of error in accordance with AASB 108 paragraph 49.
The department does not have any capital commitments.
Operating leases are entered into as a means of acquiring access to office accommodation and storage facilities. Lease payments are generally fixed, but with inflation escalation clauses on which contingent rentals are determined.
24. Contingencies
Contingent liabilities
(a) Litigation in progress
As at 30 June 2014 the following claims against the department were filed in the courts or lodged with the department: Claims Claims 2014 2013 Supreme Court 1 0 Jurisdiction not available - lodged with department 1 1 Queensland Civil and Administration Tribunal 0 1 2 2
It is not possible to make a reliable estimate of probable outcome of this claims, or of any financial effect. Depending on the outcome of the litigation process, indemnity for the department may be sought in respect of some
of the above matters through the Queensland Government Insurance Fund. 99 Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
25. Financial instruments
(a) Categorisation of financial instruments
The department has the following categories of financial assets and financial liabilities:
Category Note 2014 2013 $'000 $'000 Financial Assets Cash and cash equivalents 13 22,876 46,596 Receivables 14 2,803 6,515
Total 25,679 53,111
Financial Liabilities Payables 18 7,425 22,912
Total 7,425 22,912
Administered on a whole-of-government basis
Category Note 2014 2013 $'000 $'000 Financial Assets Cash and cash equivalents 13 62,854 123,208 Receivables 14 38,981 15,973
Total 101,835 139,181
Financial Liabilities Payables 18 102,805 131,390
Total 102,805 131,390
(b) Financial risk management
The department’s activities expose it to a variety of financial risks – interest rate risk, credit risk, liquidity risk and market risk.
Financial risk management is implemented pursuant to Government and departmental policy. These policies focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the financial performance of the department.
All financial risk is managed under approved departmental financial management policies. The department utilises written principles for overall risk management, as well as policies covering specific areas.
The department measures risk exposure using a variety of methods as follows:
Risk Exposure Measurement Method Credit risk Ageing analysis, earnings at risk Liquidity risk Sensitivity analysis Market risk Interest rate sensitivity analysis
(c) Credit risk exposure
Credit risk exposure refers to the situation where the department may incur financial loss as a result of another party to a financial instrument failing to discharge their obligation.
The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the gross carrying amount of those assets inclusive of any provisions for impairment. Department of Energy and Water Supply Annual Report 2013–14 100 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
25. Financial instruments (cont’d)
The following table represents the department’s maximum exposure to credit risk based on contractual amounts net of any allowances:
Maximum Exposure to Credit Risk Note 2014 2013 Category $'000 $'000
Financial Assets Receivables 14 2,803 6,515
Total 2,803 6,515
Administered on a whole-of-government basis Maximum Exposure to Credit Risk Note 2014 2013 Category $'000 $'000
Financial Assets Receivables 14 38,981 15,973
Total 38,981 15,973
Financial Assets
No collateral is held as security and no credit enhancements relate to financial assets held by the department.
The department manages credit risk through the use of the credit management strategy. This strategy aims to reduce the exposure to credit default by ensuring that the department invests in secure assets and monitors all funds owed on a timely basis. Exposure to credit risk is monitored on an ongoing basis.
No financial assets and financial liabilities have been offset and presented net in the Statement of Financial Position.
The allowance for impairment reflects the occurrence of loss events. The most readily identifiable loss event is where a debtor is overdue in paying a debt to the department, according to the due date (normally terms of 30 days). Economic changes impacting the department's debtors, and relevant industry data, also form part of the department's documented risk analysis.
If no loss events have arisen in respect of a particular debtor, no allowance for impairment is made in respect of that debtor. If the department determines that an amount owing by such a debtor does become uncollectable but the uncollectible amount exceeds the amount already allowed for impairment of that debt, the excess is recognised directly as a Bad Debt expense and written-off directly against Receivables.
The department has no Impairment loss expense for the current year.
Ageing of past due but not impaired as well as impaired financial assets are disclosed in the following tables:
2014 Financial assets past due but not impaired
Overdue Less than 30-60 61-90 More than 2014 30 days Days Days 90 days Total $'000 $'000 $'000 $'000 $'000 Receivables 2,803 - - - 2,803 Total 2,803 - - - 2,803
101
Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
25. Financial instruments (cont’d)
2013 Financial assets past due but not impaired
Overdue Less than 30-60 61-90 More than 2013 30 days Days Days 90 days Total $'000 $'000 $'000 $'000 $'000 Receivables 6,515 - - - 6,515 Total 6,515 - - - 6,515
Movements in Allowance for impairment 2014 2013 $'000 $'000 Balance at 1 July 25 26 Amounts written-off during the period (1) - Increase/(decrease) in allowance recognised in operating result (24) (1) Balance at 30 June - 25
Administered on a whole-of-government basis
2014 Financial assets past due but not impaired
Overdue Less than 30-60 61-90 More than 2014 30 days Days Days 90 days Total $'000 $'000 $'000 $'000 $'000 Receivables 38,981 - - - 38,981 Total 38,981 - - - 38,981
2013 Financial assets past due but not impaired
Overdue Less than 30-60 61-90 More than 2013 30 days Days Days 90 days Total $'000 $'000 $'000 $'000 $'000 Receivables 15,973 - - - 15,973 Total 15,973 - - - 15,973
Movements in Allowance for impairment 2014 2013 Balance at 1 July 26 - Increase/(decrease) in allowance recognised in operating result (26) 26 Balance at 30 June - 26
Department of Energy and Water Supply Annual Report 2013–14 102 Department of Energy and Water Supply Notes to and forming part of the Financial Statements 2013-14
25. Financial instruments (cont’d)
(d) Liquidity risk
Liquidity risk refers to the situation where the department may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.
The department is exposed to liquidity risk through its trading in the normal course of business and borrowings from promissory notes.
The department manages liquidity risk through the use of a liquidity management strategy. This strategy aims to reduce the exposure to liquidity risk by ensuring the department has sufficient funds available to meet employee and supplier obligations as they fall due. This is achieved by ensuring that minimum levels of cash are held within the bank accounts so as to match the expected duration of the various employee and supplier liabilities.
The following table sets out the liquidity risk of financial liabilities held by the department. It represents the contractual maturity of financial liabilities, calculated based on undiscounted cash flows relating to the liabilities at reporting date. All cash flows are projected within one year so these amounts do not differ from the statement of financial position.
2014 Payable in Total <1 years 1-5 years > 5 years Note $'000 $'000 $'000 $'000 Financial Liabilities Payables 18 7,425 - - 7,425 Total 7,425 - - 7,425
2013 Payable in Total <1 years 1-5 years > 5 years Note $'000 $'000 $'000 $'000 Financial Liabilities Payables 18 22,912 - - 22,912 Total 22,912 - - 22,912
Administered on a whole-of-government basis
2014 Payable in Total <1 years 1-5 years > 5 years Note $'000 $'000 $'000 $'000 Financial Liabilities Payables 18 102,805 - - 102,805 Total 102,805 - - 102,805
2013 Payable in Total <1 years 1-5 years > 5 years Note $'000 $'000 $'000 $'000 Financial Liabilities Payables 18 131,390 - - 131,390 Total 131,390 - - 131,390
(e) Market risk
The department does not trade in foreign currency and is not materially exposed to commodity price changes. The department is not exposed to interest rate risk and does not have any finance leases. The department does not undertake any hedging in relation to interest risk and manages its risk as per its liquidity risk management strategy.
103
Department of Energy and Water Supply Annual Report 2013–14
25. Financial instruments (cont’d)
(f) Interest rate sensitivity analysis
The department does not have any assets and liabilities that are affected by interest rate risk.
(g) Fair value
The department does not recognise any financial assets or financial liabilities at fair value except for cash and cash equivalents.
The fair value of trade receivables and payables is assumed to approximate the value of the original transaction, less any allowance for impairment. Cash and cash equivalents are valued using observable level 1 inputs.
26. Correction of error
The 2013 figures include a correction to note 23 Commitments in relation to Grants and subsidies as this commitment was omitted as at 30 June 2013. The impact was an understatement of the commitments in relation to Water Community Service Obligations of $21.9 million and Energy Community Service Obligations of $251 million
Department of Energy and Water Supply Annual Report 2013–14 104 105
Department of Energy and Water Supply Annual Report 2013–14 Department of Energy and Water Supply Annual Report 2013–14 106 107
Department of Energy and Water Supply Annual Report 2013–14 Appendix 1: Compliance checklist
Annual Summary of requirement Basis for requirement report reference Letter of A letter of compliance from the accountable ARRs—section 8 3 compliance officer or statutory body to the relevant Minister
Accessibility Table of contents ARRs—section 10.1 1 Glossary 121
Public availability ARRs—section 10.2 Inside cover
Interpreter service statement Queensland Government Inside cover language services policy ARRs—section 10.3
Copyright notice Copyright Act 1968 Inside cover ARRs—section 10.4
Information licensing Queensland Government Inside cover Enterprise Architecture— information licensing ARRs—section 10.5
General Introductory information ARRs—section 11.1 4 information Agency role and main functions ARRs—section 11.2 6
Operating environment ARRs—section 11.3 8
Machinery-of-government changes ARRs—section 11.4 9
Non-financial Government’s objectives for the community ARRs—section 12.1 10 performance Other whole-of-government plans/specific ARRs—section 12.2 10 initiatives
Agency objectives and performance ARRs—section 12.3 33 indicators
Agency service areas and service standards ARRs—section 12.4 55
Financial Summary of financial performance ARRs—section 13.1 57 performance
Department of Energy and Water Supply Annual Report 2013–14 108 Annual Summary of requirement Basis for requirement report reference Governance— Organisational structure ARRs—section 14.1 11 management and Executive management ARRs—section 14.2 12 structure Related entities ARRs—section 14.3 111
Government bodies ARRs—section 14.4 112
Public Sector Ethics Act 1994 Public Sector Ethics Act 27 1994 (section 23 and schedule) ARRs—section 14.5
Governance—risk Risk management ARRs—section 15.1 22 management and External scrutiny ARRs—section 15.2 22 accountability Audit committee ARRs—section 15.3 24
Internal audit ARRs—section 15.4 25
Public sector renewal ARRs—section 15.5 20
Information systems and recordkeeping ARRs—section 15.7 31
Governance— Workforce planning, attraction, retention and ARRs—section 16.1 28 human resources performance Early retirement, redundancy and Directive no.11/12: early 30 retrenchment retirement, redundancy and retrenchment ARRs—section 16.2
Open data Open data ARRs—section 17 32
Financial Certification of financial statements FAA—section 62 105 statements FPMS—sections 42, 43 and 50 ARRs—section 18.1
Independent auditor’s report FAA—section 62 106 FPMS—section 50 ARRs—section 18.2
Remuneration disclosures Financial reporting 84 requirements for Queensland Government agencies ARRs—section 18.3
FAA: Financial Accountability Act 2009
FPMS: Financial and Performance Management Standard 2009
ARRs: Annual report requirements for Queensland Government agencies 109
Department of Energy and Water Supply Annual Report 2013–14 Appendix 2: Legislation
Legislation administered by the department as at 30 June 2014:
• Electricity Act 1994 • Electricity–National Scheme (Queensland) Act 1997 • Energy and Water Ombudsman Act 2006 • Gas Supply Act 2003 • Gladstone Power Station Agreement Act 1993 • Liquid Fuel Supply Act 1984 • Metropolitan Water Supply and Sewerage Act 1909 • National Gas (Queensland) Act 2008 • Nuclear Facilities Prohibition Act 2007 • Southeast Queensland Water (Distribution and Retail Restructuring) Act 2009 • Southeast Queensland Water (Restructuring) Act 2007 (in so far as the Minister is a jointly responsible Minister for the purpose of chapter 2 of this Act) • Water Act 2000 –– chapter 2, part 2, division 2A and 4; chapter 2A; chapter 4 (to the extent that it is relevant to category 1 water authorities); chapter 9, part 2; and, to the extent relevant to all these parts, chapters 5, 6 and 7) –– chapter 8, s. 999; and part 4A and part 5 jointly administered with the Minister for Natural Resources and Mines • Water Efficiency Labelling and Standards Act 2005 • Water Supply (Safety and Reliability) Act 2008.
Department of Energy and Water Supply Annual Report 2013–14 110 Appendix 3: Schedule of statutory authorities and instrumentalities
Class and name Type of statutory Legislation under Control of funds Annual reporting authority or which the body arrangements instrumentality was established Advisory Council Advisory council Energy and Water No funds Included in to the Energy and Ombudsman Act Energy and Water Water Ombudsman 2006 Ombudsman Queensland Queensland’s annual report
Energy and Water Statutory position Energy and Water Controls own funds Annual report to Ombudsman Ombudsman Act Parliament Queensland 2006
Gladstone Area Statutory body Water Act 2000 Controls own funds Annual report to Water Board Parliament
Mount Isa Water Statutory body Water Act 2000 Controls own funds Annual report to Board Parliament
Seqwater Statutory body Southeast Controls own funds Annual report to (Queensland Queensland Water Parliament bulk water supply (Restructuring) Act authority) 2007
Ministerial Advisory Advisory council Water Supply No funds Included in the Council for Flood (Safety and DEWS annual report Mitigation Manuals Reliability) Act 2008 111
Department of Energy and Water Supply Annual Report 2013–14 Appendix 4: Schedule of government-owned corporations
Government-owned Legislation under Control of Annual reporting corporation which the body was funds arrangements established CS Energy Limited Government Owned Controls own Annual report to Parliament Corporations Act 1993 funds
Energex Limited Government Owned Controls own Annual report to Parliament Corporations Act 1993 funds
Ergon Energy Corporation Government Owned Controls own Annual report to Parliament Limited Corporations Act 1993 funds
Queensland Electricity Government Owned Controls own Annual report to Parliament Transmission Corporation Corporations Act 1993 funds Limited (Powerlink Queensland)
Stanwell Corporation Limited Government Owned Controls own Annual report to Parliament Corporations Act 1993 funds
SunWater Limited Government Owned Controls own Annual report to Parliament Corporations Act 1993 funds
Department of Energy and Water Supply Annual Report 2013–14 112 Appendix 5: Report of regulator’s activities under the Water Supply (Safety and Reliability) Act 2008
On 1 July 2008, the Water Supply (Safety and Reliability) Act 2008 introduced new provisions to protect public health by regulating recycled water and drinking water quality, and by incorporating the existing service provider provisions of parts 1–5 of chapter 3 of the Water Act 2000.
The Act provides for the chief executive of the department, as the regulator, to undertake certain duties under these provisions, which may include the preparation of an annual report (chapter 2, part 2 of the Act). This summary is the regulator’s report for the period 1 July 2013 to 30 June 2014.
Major amendments to the Act were enacted in 2014 to introduce a new performance reporting framework and deregulate certain requirements for recycled water management and asset management.
Recycled water
Prior to the Act amendments, chapter 3 of the Act included requirements for all recycled water providers supplying recycled water sourced from a service provider’s sewerage or wastewater from industrial, commercial, manufacturing or animal husbandry activities. These requirements included provisions for phasing-in recycled water management plan (RWMP) requirements and for granting exemptions from having a RWMP in specific circumstances. Following the introduction of the Act amendments, only the following recycled water activities will be regulated:
• augmenting a supply of drinking water • dual reticulation system (including flushing toilets and/or cold water laundry tap, irrigating gardens, washing down external surfaces at a residential premises) • irrigation of minimally processed food crops defined in the Public Health Regulation 2005 • other critical purposes if a scheme has been declared a critical recycled water scheme • other use(s) prescribed under regulation.
These recycled water schemes are now required to have an approved RWMP and there are no longer any exemptions under the new framework. All recycled water schemes will, however, need to be registered to provide information to regulators and the public about where water recycling activities are occurring. All recycled water schemes must also continue to comply with the Public Health Act 2005, which contains provisions that complement the Act.
Applications for approval of an RWMP are assessed against criteria in the Act and the Recycled water management plan and validation guidelines relating to hazard identification, risk assessment and risk management. These requirements reflect the approach outlined in theAustralian guidelines for water recycling 2006. Recycled water providers must comply with the requirements detailed in the information notice for the decision (approval) and requirements specified in the Act.
The following regulatory guidelines have been prepared by the regulator to help recycled water 113
Department of Energy and Water Supply Annual Report 2013–14 providers comply with the recycled water provisions of the Act:
• Recycled water management plan and validation guidelines • Water quality guidelines for recycled water schemes • Recycled water management plan audit reporting guidelines • Annual reporting guideline for recycled water schemes • Public reporting guideline for recycled water schemes.
A non-statutory incident reporting guideline, RWMP template and frequently asked questions for recycled water schemes have also been published on the department’s website.
The regulator provides ongoing advice on the regulatory requirements for numerous water recycling projects for dual reticulation and the irrigation of a range of minimally processed food crops.
Prior to the regulatory reforms commenced on 13 May 2014, the department had granted:
• 1 validation program • 11 RWMP approvals • 11 exemptions from having an approved RWMP.
Following the Act amendments, two approved exemptions have been cancelled, three RWMPs have been suspended and one application has been refused. In addition, a number of RWMP approval notices have been revised where necessary. Recycled water providers with approved RWMPs are required to keep their plans and procedures current through audits and review processes.
The regulator also works closely with Queensland Health to ensure that providers appropriately manage recycled water incidents and protect public health. In 2013–14, there were 17 incidents reported regarding recycled water schemes. The majority of these incidents related to low chlorination levels, missed sampling or levels of Escherichia coli (E. coli) above requirements specified in the information notice for the decision. As part of the regulator’s role in ensuring compliance, two recycled water schemes have had compliance inspections completed this year.
Drinking water quality
The regulatory framework for managing drinking water quality in Queensland, introduced in 2008, requires drinking water service providers to have an approved risk-based drinking water quality management plan (DWQMP) to demonstrate how they manage public health risks. The regulatory requirements have been implemented through a phased approach—commencing with mandatory monitoring and reporting requirements, and culminating with providers having approved DWQMPs. All providers who were registered at the commencement of the Act are either operating under an approved DWQMP, or have plans in the final stages of assessment with the expectation that all of these plans will be approved in the first quarter of 2014–15. Any ‘new’ drinking water service providers who register have one year from registration to have an approved DWQMP.
At the commencement of the Act, the regulator acknowledged the disparity of skills across the water industry in Queensland, and the need to support the regulatory framework. The regulator established a consistent approach by developing procedures and processes for communicating with, and providing technical support to, drinking water service providers. This support has included the Snapshot Monitoring Program in 2012, the Small and Medium Provider Support Program in 2012 and 2013, and
Department of Energy and Water Supply Annual Report 2013–14 114 phases 1–3 of the Indigenous Support Program.
These support activities have resulted in the submission of DWQMPs that are generally consistent in approach and presentation of the information, which in turn streamlines the assessment and decision- making process for the department. The support activities have also resulted in the submission of DWQMPs from all 16 Indigenous service providers.
It is important to note that under the Act requirements, drinking water service providers continue to be solely responsible for the safety and quality of their drinking water supplies. All registered drinking water service providers are also required to:
• monitor their drinking water quality • report drinking water quality incidents to the regulator.
Drinking water quality management plans
All DWQMPs must comply with the requirements detailed in the Act and DWQMP guidelines relating to hazard identification, risk assessment and risk management. These requirements reflect the approach outlined in the Australian drinking water guidelines 2011, which require the provider to identify, assess and manage any risks associated with their drinking water supply and monitor for an appropriate range of water quality parameters to verify that public health is being protected.
As at 30 June 2014, the regulator has approved 76 DWQMPs for the 86 current providers. Of the 10 required DWQMPs, 9 are currently under assessment. Of these DWQMPs, 4 are from ‘new’ providers that have registered within the past 12 months, and 1 of these DWQMPs is not yet required under the 12-month transitional period.
As a number of providers have had approved DWQMPs in place for some time, the regulator has also assessed and approved amendment applications, either as a result of the regulator-required reviews of the DWQMPs, or as providers make changes to their services. During 2013–14, the regulator has approved 12 amendment applications. By amending their plans, providers ensure that the DWQMP remains current and provides assurance to the regulator that the DWQMP is being implemented.
Drinking water quality incidents
The regulator works closely with Queensland Health to ensure that drinking water service providers appropriately manage drinking water quality incidents and protect public health.
There have been 1213 drinking water quality incidents reported to the regulator since January 2009. Of these, 143 incidents were reported in 2013–14, with the majority of these incidents relating to detections of E. coli. The number and pattern of incidents reported has not significantly changed over time, with a general increase in the number of incidents reported during the wet season. The presence of E. coli in a sample does not necessarily indicate that the water is unsafe; however, it is a trigger for providers to ensure that the water supply system is functioning normally. 115
Department of Energy and Water Supply Annual Report 2013–14 Support programs
The regulator has established robust support programs to help providers meet their regulatory responsibilities. The focus for 2013–14 has been on helping small providers develop their DWQMP and helping Indigenous providers implement their DWQMPs. The support programs have included:
• regional workshops and scheduled one-on-one sessions for small providers to guide them through specific aspects of DWQMP development, such as how to identify hazards, operational and verification monitoring, and information management • development and dissemination of fact sheets providing further guidance on identified areas of concern, such as incident and emergency planning, risk assessment methodologies and incident reporting under approved DWQMPs • phase 3 of the Indigenous Support Program, which is implementation of DWQMPs.
Planning has been completed for phase 4 of the Indigenous Support Program, which is business as usual. This will be coupled with a DWQMP implementation program focusing on an ongoing schedule of visits to each of the drinking water service providers in Queensland.
Coal seam gas water
The Act was amended on 13 May 2014, with assent on 1 July 2014, to remove CSG water provisions. Prior to this amendment, the Act required CSG companies to hold either an approved CSG recycled water management plan (CSG RWMP) or an approved exclusion decision (ED) prior to the commencement of any discharge of CSG water to a water source if a drinking water supply used by a drinking water service provider is downstream of the discharge or the discharge is into the same aquifer the drinking water service provider draws from. Responsibility for the protection of public health has been transferred to the Department of Environment and Heritage Protection.
A CSG RWMP is a documented, risk-based system for managing the production and supply of CSG water. The implementation of a CSG RWMP is intended to ensure the safe use of CSG water through the identification and minimisation of public health risks. For a single-entity recycled water scheme, a CSG RWMP must be prepared by the provider for the scheme. For a multiple-entity recycled water scheme, a CSG RWMP must be prepared, consisting of:
• a scheme manager plan prepared by the scheme manager • scheme provider plan(s), prepared by each recycled water provider and other declared entity(ies) for the scheme.
To obtain an ED, a responsible entity must demonstrate to the regulator that the supply of water under the scheme has no material impact on the drinking water supply of a drinking water service provider downstream of their point of discharge or within the aquifer to which the CSG water is being injected. If an ED is made by the regulator, it excludes the responsible entity from having to submit a CSG RWMP, but the responsible entity for the scheme must comply with any conditions contained in the ED notice.
In the 2013–14 year, six new ED applications were received by the department—three were approved, two were withdrawn by CSG applicants and the remaining application was not processed due to the Act amendments effectively removing this responsibility from the department. Two ED approvals granted in previous years were repealed by the department for various reasons. In 2013–14, two CSG RWMP amendment applications and one multiple-entity interim CSG RWMP application were approved. In 2013-14, no ED applications or CSG RWMP applications were refused.
Department of Energy and Water Supply Annual Report 2013–14 116 Demand management
Historically during drought periods, the Queensland Government has had a role in setting restrictions for residential and non-residential water users. Governments have also been responsible for providing oversight of various demand management measures, and monitoring the progress of registered water service providers in complying with legislative requirements.
Provisions of the Act enable the department to:
• require a water service provider to put in place water restrictions or
• require entities within a water service provider’s supply area to put in place a water efficiency management plan.
These requirements were not used by the department during 2013–14.
Other matters
Parts 1–5 of chapter 2 of the Act give certain rights and responsibilities to the providers of water and sewerage services. Amendments to the Act removed the requirement on service providers to give to the regulator strategic asset management plans, system leakage management plans, drought management plans and outdoor water-use conservation plans.
The Act amendments transform the regulation of water and sewerage service providers in Queensland. The focus of regulation is now on outcomes, and the new framework will provide greater transparency and accountability for customers about their services.
Under the new regulatory regime, service providers will need to prepare an annual report on their performance against key performance indicators (KPIs). The KPIs have been developed in close consultation with industry and have been set in a notice from the Queensland Water Supply Regulator.
Service providers that supply water for non-drinking purposes will not need to prepare a performance report, but must maintain their registration as a service provider.
All service providers will need to consult with their customers to develop an enhanced customer service standard that links to the new KPIs.
Service providers will need to set target levels of service for a number of the KPIs and list these targets in their customer service standard. These KPIs will measure the customer’s direct experience of the service and will be specified in the notice given by the regulator about performance reports.
Customer service standards will need to be published online and reviewed every five years.
The regulator continued to formally register organisations as service providers, as required by the Act. In 2013–14, 8 new service providers were registered and 34 service providers amended their registration details. As at 30 June 2014, the total number of registered service providers was 170—the number in each of the defined size categories were 100 small, 32 medium and 38 large. 117
Department of Energy and Water Supply Annual Report 2013–14 Appendix 6: Open data published datasets
Date published Dataset name Dataset description 4 Jul 13 Solar Hot Water Details of solar hot water systems installed under the Queensland Program Government Solar Hot Water Program
4 Jul 13 Solar hot water rebate Details of solar hot water systems installed for which a rebate was paid
5 Aug 13 Drinking water quality List of registered service providers that have submitted a management plan drinking water quality management plan (DWQMP) that meets the requirements of the Act and guidelines
5 Aug 13 Drought management List of registered service providers that have submitted a drought plans management plan (DMP) that complies with the Water Supply (Safety and Reliability) Act 2008 and the guidelines for the preparation of the DMP
5 Aug 13 Exemptions register List of registered service providers that have been granted for registered service exemptions for a DMP or system leakage management providers plan (SLMP,) or for small service providers (strategic asset management plan (SAMP), SAMP annual report and/or customer service standard (CSS), CSS annual report)
5 Aug 13 Referable dams List of dams deemed as referable based on a failure impact register assessment, which states that the dam has or will have a category 1 or category 2 failure impact rating
5 Aug 13 Service providers List of registered service providers showing size (number of register connections)—small (up to 1000), medium (between 1000 and 25 000) and large (more than 25 000—that provide retail water, sewerage, bulk, irrigation, drainage, primary stock and domestic and/or drinking water services
5 Aug 13 Strategic asset List of registered service providers that have submitted a CSS and management plan stated the level of service to be provided by the service provider— customer service the level of service stated in the CSS must reflect the SAMP level standards of service standards
5 Aug 13 Strategic asset List of registered service providers that have submitted a SAMP management plans that meets the requirements of the Act and guidelines
5 Aug 13 System leakage List of registered service providers that have submitted a SLMP management plan that meets the requirements of the Act and guidelines
11 Aug 13 DEWS annual reports List of registered service providers that have submitted an annual report for the SAMP, CSS, SLMP and DWQMP, or a combined SAMP, CSS and SLMP annual report, that comply with the requirements of the Act
19 Aug 13 Electricity authority Queensland holders holders
19 Aug 13 Gas authority holders Queensland holders
Department of Energy and Water Supply Annual Report 2013–14 118 Date published Dataset name Dataset description 2 Oct 13 Consultancy Consultancy spending undertaken by DEWS in 2012–2013. spending—DEWS
2 Oct 13 Overseas travel— Overseas travel undertaken by officers of DEWS DEWS
2 Oct 13 Queensland Report on the performance of DEWS on the Queensland Multicultural Action Multicultural Action Plan 2011–2014 core outcomes Plan 2011–2014 core outcomes—DEWS
17 Dec 13 Complaint statistics Total number of complaint cases received and closed monthly, 2013–14—Energy and including complaint issue Water Ombudsman Queensland
23 Jun 14 Awoonga Dam fish Amount and types of fish stocked from the Gladstone Area Water stocking data Board’s hatchery to Awoonga Dam from 1981
23 Jun 14 Awoonga Dam water Awoonga Dam lake level—daily measurements from level data 1 January 2013
23 Jun 14 Volumetric water sale Monthly volumetric water sales for both raw and potable water data—Gladstone Area Water Board
23 Jun 14 Water treatment plant Raw water delivered to Gladstone Water Treatment Plant (GWTP) data—Gladstone Area and Yarwun Water Treatment Plant (YWTP) Water Board Volumetric water treated at GWTP and YWTP Turbidity at GWTP and YWTP Free chlorine at GWTP and YWTP Volumetric water treated is the amount of water pumped out of the treatment plants as final drinking water. Turbidity and chlorine averages are calculated from the online instruments and derived from SCADA (supervisory control and data acquisition)—turbidity is the average filtered water turbidity and free chlorine is the average free chlorine as measured in the clear water reservoirs.
24 Jun 14 Lake Julius 2014 Lake Julius 2014 allocations allocations
24 Jun 14 Lake Julius historic Lake Julius historic capacity levels capacity levels
24 Jun 14 Lake Moondarra 2014 Lake Moondarra 2014 allocations allocations
24 Jun 14 Lake Moondarra Lake Moondarra historic capacity levels historic capacity levels
24 Jun 14 Mount Isa Water Mount Isa Water Board consultant expenditure 2012–13 Board consultant expenditure 2012–13 119
Department of Energy and Water Supply Annual Report 2013–14 Date published Dataset name Dataset description 24 Jun 14 Mount Isa Water Mount Isa Water Board multicultural table Board multicultural table
24 Jun 14 Mount Isa Water Mount Isa Water Board overseas travel 2012–13 Board overseas travel 2012–13
24 Jun 14 Mount Isa Water Mount Isa Water Board raw water supply 2012–14 Board raw water supply 2012–14
24 Jun 14 Raw water pumped Amount of raw water pumped monthly from Awoonga Dam to the from Awoonga Dam Gladstone network
27 Jun 14 Disconnections and Contains a link to industry reporting on the number of electricity hardship data for customer disconnections in the prior quarter and participants in electricity customers hardship programs
27 Jun 14 Disconnections and Contains a link to industry reporting on the number of gas hardship data for gas customer disconnections in the prior quarter and participants in customers hardship programs
27 Jun 14 Registered retail Contains a link to a list of registered retail participants and their participants in contact details Queensland
30 Jun 14 SunWater recreational SunWater recreational area and facilities provided areas
Department of Energy and Water Supply Annual Report 2013–14 120 Glossary and acronyms
Term/acronym Definition AASB Australian Accounting Standards Board Agency A department or a statutory body as defined in the Financial Accountability Act 2009 ALCS Annual Leave Central Scheme ARRs Annual report requirements for Queensland Government agencies AS/NZS Australian Standard/New Zealand Standard ATO Australian Tax Office BCP Business and Corporate Partnerships Blueprint Guides changes on how the department wants to operate and is integral to the DEWS renewal journey CEO Chief Executive Officer CEPEC Chief Executive Performance Evaluation Committee CPA Certified Practising Accountant CSG Coal seam gas CSG RWMP Coal seam gas recycled water management plan CSO Community service obligation CSS Customer service standard DAFF Department of Agriculture, Fisheries and Forestry DEWS Department of Energy and Water Supply DMP Drought management plan DNRM Department of Natural Resources and Mines DRC Depreciated replacement cost DWQMP Drinking water quality management plan EAP Emergency action plan ED Exclusion decision eDRMS Electronic document and records management system EHP Department of Environment and Heritage Protection EMT Executive Management Team EWOQ Energy and Water Ombudsman Queensland FAA Financial Accountability Act 2009 FBT Fringe Benefits Tax FPMS Financial and Performance Management Standard 2009 GST Goods and Services Tax GWTP Gladstone Water Treatment Plant ICT Information and communication technology KPI Key performance indicator Lync Instant messaging MEERA Modern engineering equivalent replacement asset MOHRI Minimum obligatory human resource information NCAP Non-current asset policy 121
Department of Energy and Water Supply Annual Report 2013–14 Term/acronym Definition NECF National Energy Customer Framework PDA Performance and development agreement QAO Queensland Audit Office QDAN Queensland disposal authority number QFCOI Queensland Floods Commission of Inquiry QGIAS Queensland Government Internal Audit Service QGIF Queensland Government Insurance Fund QTT Queensland Treasury and Trade QWCTRIM Queensland Water Commission Trim (now decommissioned as QWC closed) Referable dam A referable dam is one that presents a risk to two or more people if it fails. This does not include dams containing hazardous waste, a weir or large rainwater tanks. RWMP Recycled water management plan SES Senior Executive Service SLMP System leakage management plan SVS State Valuation Service Together Queensland Industrial union of employees VOIP Voice Over Internet Protocol WHS Workplace health and safety YWTP Yarwun Water Treatment Plant
Department of Energy and Water Supply Annual Report 2013–14 122 Contacts
Head office Feedback
Department of Energy and Water Supply Feedback on the annual report can be provided at www.qld.gov.au/annualreportfeedback. 41 George Street BRISBANE QLD 4000 Web
Post www.dews.qld.gov.au
Department of Energy and Water Supply GPO Box 15456 Social media CITY EAST QLD 4002 facebook.com/EnergyQld
Phone twitter.com/energyqld
General enquiries: 13 QGOV (13 74 68) facebook.com/WaterQld
Energy enquiries: 13 43 87 twitter.com/waterqld\s
Water supply enquiries: 13 QGOV (13 74 68)
Annual report enquiries
Department of Energy and Water Supply GPO Box 15456 CITY EAST QLD 4002
Email: [email protected]
Phone: 13 QGOV (13 74 68) 123
Department of Energy and Water Supply Annual Report 2013–14 www.dews.qld.gov.au