PORTFOLIO STATEMENT 2008–09

2008 09 BUDGET PAPER 4 Volume 3 PORTFOLIO STATEMENT BUDGET PAPER 4 Volume 3

Presented by the Honourable Kevin Foley MP Deputy Premier and Treasurer of South Australia on the Occasion of the Budget for 2008–09

Table of Contents

VOLUME ONE

Introduction

Portfolio – Premier and Cabinet ...... 1

Portfolio – Trade and Economic Development ...... 2

Portfolio – Treasury and Finance ...... 3

Portfolio – Justice ...... 4

Accounting Standards

VOLUME TWO

Introduction

Portfolio – Primary Industries and Resources ...... 5

Portfolio – Transport, Energy and Infrastructure...... 6

Portfolio – Health ...... 7

Portfolio – Education and Children’s Services...... 8

Accounting Standards

VOLUME THREE

Introduction

Portfolio – Tourism ...... 9

Portfolio – Families and Communities ...... 10

Portfolio – Environment and Conservation and the River Murray ...... 11

Portfolio – Further Education, Employment, Science and Technology ...... 12

Auditor-General ...... 13

Accounting Standards

INTRODUCTION

The Portfolio Statements outline financial and non-financial information about the services provided to, and on behalf of, the community by each portfolio. The following discussion outlines key aspects of the Statements.

FINANCIAL STATEMENTS

The financial statements for each portfolio include an Income Statement, Balance Sheet, Statement of Changes in Equity and a Cash Flow Statement. These financial statements contained in the 2008-09 Portfolio Statements are special purpose financial reports.

Estimates in the financial statements have been prepared:

• on a basis that is consistent with Australian equivalents to International Financial Reporting Standards (AIFRS). Australian accounting standards and/or interpretations that have been issued or amended but are not yet effective have not been early adopted;

• on an accrual basis except for the Cash Flow Statement which has been derived from the Income Statement and Balance Sheet to reflect cash payments and receipts; and

• using the historical cost convention, except for certain assets and liabilities that are valued in accordance with the valuation policy applicable.

In the process of reporting on portfolios, agencies or other entities as single economic entities, transactions and balances between units within the economic entity are eliminated. The commentary at the commencement of the portfolio statement for each portfolio identifies which entities have been included in the consolidated reports for that portfolio.

The financial statements for each portfolio include separate presentation or classification of controlled activities and (where applicable) administered activities.

Portfolio statements typically reflect a consolidation of controlled items within each portfolio. Where a portfolio contains a single agency, only the agency statements are provided.

DEFINITIONS

Portfolio

A portfolio is an entity that provides management coordination and administrative support for a defined group of agencies. A portfolio may comprise a single agency.

Agency

An agency is an administrative unit created under the Public Sector Management Act 1995 (PSM) or a statutory authority that is accountable for the delivery of programs on behalf of the Government.

Programs and sub-programs

A program is a grouping of related sub-programs or activities that contributes to the achievement of a particular agency’s and, in turn, the government’s objectives. A sub-program is a grouping of activities that contribute to a more specific objective.

PORTFOLIO STATEMENT OVERVIEW

The Portfolio Statements outline details of projected portfolio activity and performance for 2008-09. Each Portfolio Statement conforms to the following standard presentation structure:

Portfolio Summary

• Ministerial Responsibilities – details Minister, Agency, Program, Sub-Program and Administered items relationships and responsibilities • Portfolio Cost of Service Summary (where the portfolio comprises more than one agency) – a summary of total agency cost of services • Investing Payments Summary (where the portfolio comprises more than one agency) – total agency investing payments • Portfolio Financial Statements (where the portfolio comprises more than one agency) – budgeted financial statements for controlled items • Workforce Summary – total workforce details • Ministerial Office(s) resources – details of resources provided to Ministerial office(s)

Agency Summary

• Objective – details of agency objectives • Targets / Highlights – targets for the budget year and highlights for the prior year • Program Cost of Services Summary – summary of the net cost of agency programs • Investing Payments Summary – the investing payments for the agency • Program Information – a description / objective and summary income statement – commentary and performance measures for individual agency sub-programs • Agency Financial Statements – budgeted financial statements for controlled and administered items • Agency Financial Commentary – commentary on variances, trends, etc in the financial statements

PRESENTATION OF CHANGES IN PROGRAM STRUCTURES

Where an agency is transferred between portfolios, program information for previous years is reflected in the current program structure of the receiving portfolio. Similarly, where programs or sub-programs are transferred between agencies information is reflected in the receiving agency’s program structure.

In contrast, the agency financial statements line net cost of providing services (in the income statement) is based on the actual program structure for the agency as it operated or is expected to operate in each year. This distinction in treatment is drawn so that financial statements accurately reflect events while, at the same time, program information is comparable and not duplicated.

Reconciliation of the financial statements to the current program structure is contained in the program net cost of services summary located at the beginning of each relevant agency section.

AGENCY WORKFORCE SUMMARY TABLES

The Full Time Equivalent (FTE) workforce data detailed in agency Workforce Summary tables use the 2006-07 actual figures as published in The South Australian Public Sector Workforce Information at June 2007: Summary Report.

The 2007-08 Estimated result and 2008-09 Budget estimate reflect the FTE cap figures, which are consistent with agency salaries and wages budgets.

Portfolio: Tourism

Minister for Tourism

TABLE OF CONTENTS

PORTFOLIO SUMMARY

Ministerial Responsibilities...... 9.1

Workforce Summary ...... 9.1

Agency Summaries

South Australian Tourism Commission ...... 9.2

PORTFOLIO: TOURISM

MINISTERIAL RESPONSIBILITIES

Minister Agency Programs Sub-Programs The Hon. Jane Lomax-Smith South Australian Tourism 1. Strategic Advice 1.1 Policy and Planning Minister for Tourism Commission 1.2 Research 2. Tourism 2.1 Tourism Industry Development Development 2.2 Tourism Infrastructure Development 3. Tourism Events Nil 4. Tourism Marketing 4.1 Domestic Marketing 4.2 International Marketing

Statutes

The Department of the Premier and Cabinet maintains a list of statutes applicable to Ministers.

WORKFORCE SUMMARY

Agency FTEs as at 30 June 2008-09 2007-08 2006-07 Budget Estimated result Actual South Australian Tourism Commission 188.0 189.0 175.6 Total 188.0 189.0 175.6

9.1

TABLE OF CONTENTS

AGENCY: SOUTH AUSTRALIAN TOURISM COMMISSION

Objective ...... 9.3

Targets / Highlights...... 9.4

Program Net Cost of Services Summary...... 9.5

Investing Payments Summary...... 9.5

Program Information — includes description/objective, summary income statement, sub-program information including performance criteria

1. Strategic Advice...... 9.6

2. Tourism Development...... 9.9

3. Tourism Events...... 9.12

4. Tourism Marketing...... 9.14

Financial Statements

Income statement ...... 9.17

Balance sheet...... 9.18

Statement of changes in equity ...... 9.19

Cash flow statement...... 9.20

Financial Commentary ...... 9.22

9.2

PORTFOLIO: TOURISM

AGENCY: SOUTH AUSTRALIAN TOURISM COMMISSION

Objective

The South Australian Tourism Commission’s (the Commission) objectives are to:

• increase visitor numbers to and within the state by creating awareness of South Australia and its tourism assets in key target markets;

• facilitate the development of a competitive, profitable and sustainable tourism industry;

• develop a competitive market position;

• develop special interest (niche) markets that focus on South Australia’s competitive strengths;

• build strong networks and partnerships with relevant stakeholders for mutual benefit;

• achieve sustainability of environmental and economic benefits; and

• bid for, and stage, major events.

9.3

2008-09 Targets / 2007-08 Highlights

Targets 2008-09 Highlights 2007-08

• Develop an integrated marketing campaign that will • Developed the interstate Winter Holiday Affair campaign in incorporate brand and retail advertising in two bursts over the conjunction with industry partner, Qantas Holidays. The year, promoting the state’s key tourism experiences to the campaign, targeting the key markets of Melbourne, Sydney, target tourism audience in Melbourne, Sydney and Brisbane and Brisbane, features Adelaide, Kangaroo Island, and wine • Invigorate the South Australian Shorts campaign in the and food holidays. The campaign has been developed to reach intrastate market to encourage South Australians to holiday the newly defined tourism target audience and take a fresh more frequently in their own state approach to promoting easily accessible appealing product through a broad reaching campaign incorporating television, • Develop a promotional kit for domestic and international trade magazine, direct mail and online activity teams and industry partners. The kit will be an online reference point containing imagery, film footage, media • Established a partnership with Channel 9 Adelaide as part of a releases, advertising examples and branding guidelines to new intrastate marketing campaign. The campaign saw enable industry partners to create marketing campaign celebrities become advocates for South Australia’s tourism activities with easy access to current support material regions during a year-long television campaign • Develop a refreshed South Australian television and online • Relaunched the South Australian Shorts program, with brand campaign in New Zealand to continue to support increased business delivered as a result of initiatives such as Air New Zealand’s direct flights to Adelaide and further the new Shorts book, the new www.southaustralia.com website increase New Zealand holiday visitor arrivals and expenditure and the Shorts Winter Sale campaign to South Australia • Implemented a broad range of marketing activities in all key • Develop and launch new international market specific websites international tourism markets to grow overseas visitation. This under www.southaustralia.com for the Singapore, Chinese (in activity included cooperative trade and consumer marketing both traditional and simplified Chinese), New Zealand, North campaigns with Singapore Airlines in the UK, Germany, Italy American and Japanese markets and France to support the Airlines’ daily flights into Adelaide • Continue cooperative consumer and trade marketing campaigns • Developed new international market specific websites under with Singapore Airlines and wholesale trade partners to www.southaustralia.com. To date, five sites have been increase demand for South Australia from key international developed and launched for the UK, Italian, German, French, tourism markets in the UK / Europe and Korean markets. The sites include a South Australia experiences page, ‘where to go’ (highlighting regional • Grow the Tour Down Under UCI ProTour event to ensure it experiences), a travel planner, and a journey section attracts both visitors and media coverage from around the world, providing a platform to sell South Australia as a • Continued with the New Zealand television brand campaign world-class tourism destination domestically and overseas and implemented new campaign elements such as a presence on iSky, a dedicated interactive television channel, online • Manage, support, and attract major sporting, arts, and cultural advertising, and a partnership with the New Zealand Herald events to create a balanced calendar of events and Onecard (Foodtown and Woolworths) promoting • Further develop the state’s key strengths of wine and food, South Australia’s holiday experiences nature-based and Aboriginal tourism. In addition, niche • The 2008 Tour Down Under became the first cycling event tourism products such as trail, cycling, diving, fossil and outside of Europe to be included in the UCI’s prestigious geological heritage will be further developed to help increase ProTour circuit. Economic impact and research figures show tourism in the state’s regions that the 2008 Tour Down Under provided a major economic • Invest in the development of strategic and sustainable boost, with more visitors to the state, greater participation in infrastructure projects through the ongoing major and minor the support events, more spectators and increased media tourism development funds, including the completion of coverage infrastructure for the Coorong Wilderness Lodge project • Successfully managed five major events and provided • Continue to work cooperatively with key transport providers to sponsored PR/media and/or marketing support to 10 other increase access to South Australia, particularly international major events, including the SWATCH FIVB World Tour airlines to support and promote Adelaide’s direct air services Beach Volley. Provided over $600 000 to 89 events through the Regional Events and Festivals Program • Release of the joint Industry-Government South Australian Tourism Plan 2009-2014; improved Better Development • Developed a number of initiatives to promote nature-based, Plan (BDP) Tourism Module; and case management of priority food and wine and Aboriginal tourism products.including tourism developments identified in the Agency’s Destination expansion of the South Australian Experiences Series to Development Strategy include more information about food and wine, history, culture, spiritual and heritage tourism; commencing work to update the

Wine & Food Strategy; and completion of the first stage of a geo-tourism strategy for the Flinders Ranges • Successful in winning the National Conference on Green Travel, Climate Change & EcoTourism to be held in Adelaide (with components on the Fleurieu Peninsula and Kangaroo Island) during November 2008 • Invested in the development of strategic and sustainable tourism infrastructure projects through the tourism development funds • Ongoing implementation of the Sustainable Tourism Package, including updating South Australia’s Strategic Plan Tourism Implementation Plan and the development of regional tourism plans and their translation into Plan Amendment Reports to align South Australia’s development planning rules with the tourism vision

9.4

Program net cost of services summary

Program Net Cost of Services 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000

1. Strategic Advice...... 2 151 2 023 2 311 2 276 2. Tourism Development ...... 4 481 4 470 4 402 4 147 3. Tourism Events...... 14 916 14 061 10 833 11 360 4. Tourism Marketing ...... 30 351 29 607 28 958 28 529 Total 51 899 50 161 46 504 46 312

Investing payments summary

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Investments $000 $000 $000 $000

New Works Fit-out of New Office Accommodation...... 2 506 — — — Total New Works 2 506 — — —

Annual Programs Purchase of Information Technology equipment...... 123 220 220 242 Total Annual Programs 123 220 220 242

Total Investing Payments 2 629 220 220 242

9.5

AGENCY: SOUTH AUSTRALIAN TOURISM COMMISSION

Program Information

Program 1: Strategic Advice

Description/Objective: To assist the tourism industry by providing tourism forecasting data and statistical research advice and evaluation, and industry policy and planning services.

Summary income statement

Program 1: Strategic Advice 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 927 943 975 871 Supplies and services...... 1 056 870 1 102 1 038 Grants and subsidies ...... 157 200 209 363 Depreciation and amortisation...... 20 16 17 17 Other...... 4 4 8 4 Total expenses 2 164 2 033 2 311 2 293 Income Sale of goods and services...... 13 10 — 17 Total income 13 10 — 17 Net cost of providing services 2 151 2 023 2 311 2 276

9.6

Sub-program information

Sub-program: 1.1 Policy and Planning

Provides clear vision and direction for the tourism industry and encourages a ‘tourism friendly’ policy and regulatory environment. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $1 007 000 $1 025 000 $1 148 000 $1 130 000

Performance Commentary In 2007-08, the Tourism Policy & Planning Group continued to focus on integrating the tourism vision into the broader government policy framework and contributed towards achieving South Australia’s Strategic Plan tourism target (T1.15), through the implementation of the Sustainable Tourism Package. The Group updated South Australia’s Strategic Plan Tourism Implementation Plan, which seeks to demonstrate how to accelerate progress in achieving the T1.15 tourism target. This included the identification of a headline Key Performance Indicator (KPI) and six high level KPIs aligned with the Tourism Implementation Plan’s critical success factors. Work also commenced on the joint Industry-Government South Australian Tourism Plan 2009-2014. A Guiding Framework paper has been drafted and written submissions have been requested. A series of targeted industry workshops, aligned with the critical success factors, provided key input into the development of the draft plan expected in early 2008-09. It is anticipated that the final plan will be launched by January 2009. Three Minister’s Tourism Round Tables were held during the year. Topics discussed included implementation of the Tourism Workforce Strategy, the Review of the South Australian Tourism Plan, the City of Adelaide Tourism Plan and tourism opportunities in national parks. Working Groups were established to investigate ‘Sustainability as a Competitive Advantage’ and ‘Food and Wine Tourism’. The Climate Change ‘Sustainability as a Competitive Advantage’ Working Group has reported progress on the overall strategy, including marketing of South Australia’s sustainability credentials and the engagement of the tourism industry in delivering more sustainable operations. The Commission has been monitoring and providing input into various national and state initiatives, including the Garnaut Review, COAG National Adaptation Framework and National Climate Change Tourism Taskforce. Since 2003, the Commission has made available matching grants of up to $50 000 to help tourism regions prepare five-year integrated strategic tourism plans. Strategic tourism plans set an agreed vision, target, and direction for future tourism investment and collaboration in the region. These strategic imperatives are captured through an integrated process of sound analysis in the areas of economic, tourism marketing and resources, social, planning, and environmental management. They are a key initiative within the Sustainable Tourism Package. Five Integrated Regional Strategic Tourism Plans have been completed to date. The Clare / Barossa, Riverland, Kangaroo Island and Fleurieu Peninsula tourism regions have now moved into the implementation process. In 2008-09, two more plans will be completed (Flinders Ranges Outback and Adelaide City) and a third will commence (Murraylands), with completion expected in early 2009. The Commission made submissions to a wide range of government policy initiatives, including the State Planning and Development Review. The Commission continues to negotiate with Planning SA in relation to the State Government’s major planning initiative known as the Better Development Plan (BDP) project. Following on from the successful inclusion of a generic tourism-specific module within the BDP process, Goyder Regional Council is finalising a ‘prototype’ Development Plan Amendment (DPA) based on this module. The Goyder DPA is the first planning policy amendment to be initiated as a result of the regional strategic tourism plan that was prepared for the Clare / Barossa regions. Negotiations with Planning SA and the Department for Environment and Heritage on tourism accommodation with respect to the Eyre Peninsula Coastal Strategy will lead to more tourism-friendly planning policies in coastal zones for a number of Eyre Peninsula councils through the initiation of DPAs. The amendments are designed to ensure that ‘signature’ or medium-scale tourist development (ie 10–40 rooms) can be facilitated, subject to certain conditions that address coastal process and amenity issues. The Group also provided input to Planning SA’s Regional Land Use Frameworks, which will form an official volume of the state’s Planning Strategy. Preliminary negotiations commenced with Planning SA, regarding amending definitions relating to tourism under the Development Act, to provide clarity and greater certainty to investors and developers. In 2008-09, the Group will focus on finalising the South Australian Tourism Plan 2009-2014, with priority given to greater focus and industry accountability; improving the BDP Tourism Module (Policy Library version 4); case management of priority development projects identified in the Agency’s Destination Development Strategy; support for the world leading Kangaroo Island Tourism Optimisation Management Model destination management tool (ie improved sustainability indicators, sustainable funding, adaptive management, and United Nations World Tourism Organization Global Observatory outcomes); and commencement of Regional Strategic Tourism Plan(s) for other tourism regions.

9.7

Sub-program: 1.2 Research

The Commission’s Research Unit collates and distributes statistical information about tourism and travel in South Australia and coordinates market research on behalf of the Commission. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $1 144 000 $998 000 $1 163 000 $1 146 000

Performance Commentary The Commission’s Research Unit provides data to assist informed strategic decision making. It also provides regular updates on a range of issues, including tourism demand, visitor profiles, the economic value of tourism and the performance of the state’s tourism industry. Information is sourced from: the National Visitor Survey and International Visitor Survey conducted by Tourism Research Australia; the Survey of Tourist Accommodation conducted by the Australian Bureau of Statistics and the Holiday Tracking Survey conducted by Roy Morgan Research, as well as specific research commissioned by the agency. Survey data was interpreted and used to support Commission strategy and decision making, including the new South Australian Tourism Plan 2009-2014, South Australia’s Strategic Plan Tourism Implementation Plan and SATC Corporate Plan. Survey data was interpreted and used to inform other government agencies, industry, stakeholders, consultants, students and the general public about tourism demand, the characteristics of visitors and related issues at national, state and regional levels. The Research Unit publishes a range of fact sheets and reports on the Commission’s corporate website www.tourism.sa.gov.au. In 2007-08, BDA Marketing Planning was engaged to assess the level of awareness and destination appeal of the best South Australian experiences in our interstate target markets to provide input into the Commission’s marketing, communication and distribution strategy and provide direction for the development of future tourism products. BDA Marketing Planning also provides independent high level performance tracking and forecast briefings. The Unit continues to work with the Sustainable Tourism Cooperative Research Centre (CRC), a joint venture between the education, government and industry sectors, to provide research and development advice for the tourism industry. Projects funded by the Sustainable Tourism CRC program in 2007-08 included the development of state and territory level Tourism Satellite Accounts; climate change research and analysis of the market for fossil-based tourism in the Flinders Ranges. The Commission also subscribed to software products developed by the Sustainable Tourism CRC that have the potential to contribute to the professionalism of the tourism industry. In 2007-08, market research was commissioned on a range of campaigns and programs run by the Commission. These included measuring the awareness of the Celebrity Campaign promotion amongst South Australian residents; measuring the perceptions of the Murray River as a holiday destination and tracking the impact of the Commission’s campaigns to counteract negative publicity associated with low water levels; monitoring consumer perceptions following the bushfires on Kangaroo Island and tracking the image of South Australia held by consumers on the eastern seaboard to measure brand health. The Research Unit undertook studies/surveys of visitors to events, including the 2007 Tasting Australia, Tastes of the Outback, Solar Challenge and provided input into other surveys such as the Sea SA (Wallaroo Ferry) and Riesling Trail user survey. Through Tourism Research Australia’s destination based survey program, visitor profile and satisfaction surveys were undertaken for Hahndorf and the Barossa. A strategic regional research project was also initiated for the Nullarbor to provide a visitor profile of travellers crossing the Nullarbor and measure awareness and test the appeal of current and potential attractions along the route. In 2008-09, a major focus for the Research Unit will be the provision of analysis to support the agency’s marketing and destination development strategies, particularly with respect to targeted market segments and product gap identification and the development of key performance indicators.

9.8

AGENCY: SOUTH AUSTRALIAN TOURISM COMMISSION

Program Information

Program 2: Tourism Development

Description/Objective: To facilitate strategic tourism product and infrastructure development through the provision of advice and assistance to new tourism operators.

Summary income statement

Program 2: Tourism Development 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 1 378 1 236 1 193 1 217 Supplies and services...... 494 448 472 531 Grants and subsidies ...... 2 606 2 778 2 718 2 455 Depreciation and amortisation...... 29 24 19 19 Other...... 7 7 9 7 Total expenses 4 514 4 493 4 411 4 229 Income Sale of goods and services...... 33 23 9 82 Total income 33 23 9 82 Net cost of providing services 4 481 4 470 4 402 4 147

9.9

Sub-program information

Sub-program: 2.1 Tourism Industry Development

Assists the tourism industry in raising standards, efficiencies and marketability of products and services, and develops and promotes tourism products that build on the state’s competitive strengths. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $2 315 000 $2 176 000 $2 212 000 $2 238 000

Performance Commentary In 2007-08, the Commission maintained close links with the tourism industry through the delivery of a series of workshops on business development and tourism marketing, attended by more than 400 operators from across the state. Consultation was also undertaken with stakeholders on a range of issues, including accessible tourism, visitor safety, tourism accreditation and industry complaints. The Commission continued to coordinate visiting cruise ships, with seven vessels and some 10 850 passengers visiting South Australia in 2007-08. The ‘Meet and Greet’ Program provides an important welcome and information service to visiting passengers. In line with the Wine Tourism Strategy 2004-2008, a range of activities were undertaken to achieve an increase in South Australia’s market share of wine and food visitors, including assistance with Cheesefest and Taste of the Outback. The Wine and Food Tourism Working Group (as a specialist component of the Tourism Minister’s Round Table) was formed to prepare a new Wine and Food Tourism Strategy. The Commission, in conjunction with the Winemakers’ Federation of Australia, has continued to assist with the development of a National Cellar Door Monitor Research Program known as ‘Cellar Door METRICS’. In conjunction with Tourism Eyre Peninsula, the Commission assisted in the development of a smart-card attractions pass for the Eyre Peninsula’s Seafood & Aquaculture Trail, which was launched in September 2007. The Commission has continued to support appropriate tourism signage across the state. In 2007-08, $90 000 was allocated to assist local government with signage upgrades in the Port Adelaide, Murraylands, Kangaroo Island and McLaren Vale regions. The South Australian Experiences Series was updated and expanded, now consisting of 28 themed ‘fact sheets’, each highlighting products, tours and attractions on the state’s key experiences. Ecotourism operators have been assisted to achieve eco accreditation — South Australia now has a total of 71 products eco-certified, including the only two eco-accredited wineries in Australia. The Commission led a successful bid to host the inaugural 2008 National Conference on Green Travel, Climate Change and Ecotourism, the first of its kind in Australia. The Commission, in partnership with Ecotourism Australia (EA) and the Great Barrier Reef Marine Park Authority, will assist with the pilot program for EA’s new Climate Change Accreditation Module, which will be run with operators from South Australia and Queensland. Assistance was provided to ensure the Flinders Ranges was successfully included in the first round of National Landscapes announcements by Tourism Australia. Work is being undertaken with Kangaroo Island and the Eyre Peninsula to assist them through the National Landscapes process. National Landscapes is an initiative to identify those areas with superlative natural and cultural experiences, distinctive to Australia and sought after by a global audience known as Experience Seekers. In line with the government’s commitment to develop and promote Aboriginal tourism, a number of strategic initiatives were implemented. The Commission assisted a number of Aboriginal tourism operators in attending the Australian Indigenous Tourism Conference. In addition, further updates were made to the Commission’s website to highlight Aboriginal tourism products and experiences. The implementation of the Acknowledgement & Recognition Strategy continued, promoting Aboriginal culture through the language group mapping in the Regional Visitor Guides. Further work was done in conjunction with Tourism Australia on the trade publication featuring Aboriginal tourism products. The Commission is also continuing its infrastructure support for Aboriginal tourism products with further development of the Coorong Wilderness Lodge. A number of cycle tourism projects have been supported in 2007-08, including the Southern Flinders Ranges Cycle Tourism Master Plan; the Coast to Vines Rail Trail infrastructure upgrade in the Southern Vales; the development of the Flinders Ranges by Bike experience between Rawnsley Park and Blinman; stage 1 development of the Rattler Rail Trail between Auburn and Riverton; and stage 1 extension of the Riesling Trail in the Clare Valley. Initiatives for 2008-09 to promote cycle tourism include the development of a Great SA Rides Guide to communicate the state’s best cycling and horse riding experiences; working with Bicycle Australia Magazine to develop a “Where to Ride Guide” for Adelaide and surrounding environs; and providing cyclists visiting for the Tour Down Under with more information on the best rides that connect hosting towns and other cycle tourism experiences. The Commission will also continue to assist the McLaren Vale and Willunga Community to develop the Shiraz Trail loops as the next feature of the redeveloped Coast to Vines Rail Trail. In 2008-09, the Commission will continue to provide support for marketing and product development initiatives focused on the mainstream sectors of wine and food, Aboriginal, cultural heritage, and nature-based tourism as well as products such as trail, cycling, national parks, dive, fossil and geological heritage. The Commission will also continue its work with various transport sectors – taxi, coach and rail – to improve access to and within South Australia, and to lift standards generally across all forms of transport. Particular attention will be focused on the taxi sector in terms of lifting entry standards and levels of competence through a more robust training regime. The Commission will also continue its close association with the state’s heritage and tourist rail and tram sector organisations to ensure their continued sustainability and market appeal. The Commission will continue its efforts to influence airlines to increase existing domestic and international seat capacity into Adelaide, and to introduce new flights to South Australia.

9.10

Sub-program: 2.2 Tourism Infrastructure Development

Identifies, evaluates, assists and funds tourism infrastructure projects throughout the state. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $2 166 000 $2 294 000 $2 190 000 $1 909 000

Performance Commentary In line with the South Australian Tourism Plan 2003-2008 Objective 3.4 ‘Ensure infrastructure supports strategic development’, the Commission facilitates well-designed and sustainable tourism development through the provision of infrastructure funding. The Tourism Development Fund is an ongoing commitment by the State Government to provide financial support for tourism infrastructure projects. Many grants were matched dollar for dollar by local councils or part-funded by community groups and private sector investment, highlighting the importance of partnerships in developing and maintaining tourism infrastructure. During 2007-08, the Fund supported 22 projects, with $2 million leveraging approximately $16 million of additional funding from tourism partners, including local government and private investors. Projects for the application based Tourism Development Fund included upgrades to accommodation facilities in key areas of the state, extension of the popular Riesling Trail in the Clare Valley, the Port Pirie Waterfront redevelopment, upgrades to the Lady Nelson Visitor Information Centre in Mount Gambier, an extension to the main wharf at Mannum to cater for large river boats and sustainable water and irrigation projects in Copley, Port Vincent and Stansbury Caravan Parks. Major projects assisted by the Infrastructure Fund included the provision of utilities to the recently opened $12 million Southern Ocean Lodge development on Kangaroo Island, streetscaping around the new $50 million Port Lincoln Hotel development, and upgrades to the McLaren Vale Visitor Centre to incorporate a regional food and wine centre. In 2008-09, the Commission will continue to support tourism infrastructure with grants allocated annually through the Tourism Development Fund. The Commission will also be involved in discussions with stakeholders and investors regarding major tourism projects in key areas of the state.

9.11

AGENCY: SOUTH AUSTRALIAN TOURISM COMMISSION

Program Information

Program 3: Tourism Events

Description/Objective: To develop the state’s event calendar by bidding for and staging major events in South Australia.

Summary income statement

Program 3: Tourism Events 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 2 345 2 370 2 203 2 236 Supplies and services...... 12 255 11 214 9 305 8 354 Grants and subsidies ...... 4 575 5 053 3 877 3 787 Depreciation and amortisation...... 157 140 136 131 Other...... 14 14 21 16 Total expenses 19 346 18 791 15 542 14 524 Income Sale of goods and services...... 4 430 4 730 4 709 3 164 Total income 4 430 4 730 4 709 3 164 Net cost of providing services 14 916 14 061 10 833 11 360

9.12

Program performance

Program: 3 Tourism Events

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of program $14 916 000 $14 061 000 $10 833 000 $11 360 000

Performance Commentary

In 2007-08, the events division of the Commission, Events South Australia, successfully managed five events – Tasting Australia, Adelaide Food Summit, World Solar Challenge, Credit Union Christmas Pageant and the Tour Down Under. It is estimated that these five events generated more than $70 million in editorial media coverage. The major highlight for the year was the announcement by the President of the Union Cycliste Internationale (UCI) in September 2007 that the Tour Down Under would become the first ProTour cycling race to be staged outside Europe, and a year earlier than the state had originally been bidding. The announcement was a major victory for the state, with the Tour Down Under the first race on the ProTour calendar for 2008 and coinciding with the event’s 10th birthday celebrations. UCI ProTour is the highest ranking that could be given to the Tour Down Under and it has cemented the state’s position as the cycling capital of Australia and the Southern Hemisphere. The 2008 Tour Down Under saw an increase in the number of competing teams from 14 in 2007 to 19 in 2008, with a total field of 133 riders, comprising 18 ProTour level teams and an Australian National Team — Team UniSA Australia. The 2008 Tour Down Under was a huge success. Economic impact and research figures show that the Tour Down Under provided a major economic boost, with more visitors to the state, greater participation in the support events, more spectators and increased media coverage. The 2008 Tour Down Under injected $17.3 million (a 50.4 per cent increase from 2007) into the state’s economy through the direct expenditure of the 15 100 event-specific visitors who travelled from interstate and overseas. These visitors generated 140 500 visitor nights, an increase of 43.8 per cent compared to the 2007 event. The event drew 548 000 spectators - a 53.5 per cent increase in spectators from 2007. The dollar value of editorial media coverage generated was $42.6 million. The event also secured 84.5 hours of broadcast television programming. The Tour Down Under has been broadcast in the important tourism markets of the UK, Italy, France, Belgium, India, and New Zealand. Events South Australia also provided sponsorship, PR/media and/or marketing support to 10 other major events. These events were the Australasian Masters Games, Classic Adelaide Rally, WOMADelaide, Crocs National Beach Volleyball Championships, SWATCH FIVB World Tour Beach Volley, Fairmont Homes International Rugby Sevens Adelaide, UCI BMX Supercross World Cup, National BMX Championships, Australian Amateur Championships (Golf) and the Commonwealth Bank International Police Tattoo. The second Fairmont Homes International Rugby Sevens Adelaide event attracted nearly 32 000 visitors and locals over the two days of competition. The 2007-08 Regional Events and Festivals Program provided more than $600 000 in sponsorship support to 89 events, including Barossa Under the Stars, Bay to Birdwood, Bundaleer Forest Weekend, Coonawarra Cabernet Celebrations, Feast Festival, Fiesta!, Oysterfest in Ceduna, Tunarama, Riverland Balloon Fiesta and the Port Pirie Pura Light Start State Masters Games. In June 2008, the Commission will again attend the SportAccord event, this year in Athens, Greece, to sell South Australia’s event story to international sports federations, broadcasters, event suppliers and Olympic associations. SportAccord will also provide an opportunity to identify new international event bidding opportunities for the state over the next 12 to 18 months. Bidding and securing new events for the state continues to be a major focus for Events South Australia. Major bids successfully awarded to the state over the last 12 months include the Golden Oldies World Hockey Festival (September 2009) and the World Schools Golf Challenge (April 2009). A number of other event opportunities are currently being negotiated. Events South Australia will continue to play a major role in managing major events in 2008-09, namely the inaugural World Food Exchange, Credit Union Christmas Pageant, and the Tour Down Under UCI ProTour event. A major focus will not only be to ensure the delivery of a successful Tour Down Under in January 2009, but that the event is an even bigger and better tourism drawcard and marketing vehicle for South Australia. In 2008-09, Events South Australia will also provide sponsorship, PR/media and/or marketing support to eight other major events. These events are the Australian Inline Hockey Championships, World Amateur Team Championships for Golf, Classic Adelaide Rally, World Tennis Challenge (new event in 2009), SWATCH FIVB World Tour Beach Volley, WOMADelaide, International Rugby Sevens Adelaide and the World Schools Golf Challenge. In October 2008, Adelaide will host the World Amateur Team (Golf) Championships. The Championships are recognised as the ‘Olympics’ for golf. More than 120 amateur men’s and women’s teams from around the world will compete in Adelaide over two weeks.

9.13

AGENCY: SOUTH AUSTRALIAN TOURISM COMMISSION

Program Information

Program 4: Tourism Marketing

Description/Objective: To provide high quality marketing services and develop marketing strategies and campaigns to increase the number of visitors to and within South Australia.

Summary income statement

Program 4: Tourism Marketing 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 8 759 8 621 8 133 8 428 Supplies and services...... 19 746 19 108 19 692 18 141 Grants and subsidies ...... 3 931 4 004 3 736 5 054 Depreciation and amortisation...... 249 200 186 197 Other...... 82 93 84 116 Total expenses 32 767 32 026 31 831 31 936 Income Sale of goods and services...... 2 416 2 419 2 873 3 407 Total income 2 416 2 419 2 873 3 407 Net cost of providing services 30 351 29 607 28 958 28 529

9.14

Sub-program information

Sub-program: 4.1 Domestic Marketing

Develops and implements national marketing campaigns and programs to maintain awareness of the state’s tourism assets and increase visitation to and within South Australia. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $22 807 000 $22 045 000 $21 175 000 $21 640 000

Performance Commentary In 2007-08, independent research was conducted to define and comprehensively profile the state’s tourism target audience. This research has armed the Commission with knowledge about the targeted consumers’ media habits, and how they research and book their holidays. In line with this research, the marketing strategy has been developed to ensure the target audience is reached by promoting tourism product that will attract these high-spending visitors to the state, and utilising media partnerships that maximise the Commission’s advertising expenditure. A significant initiative was the development of a new interstate marketing campaign, Winter Holiday Affair. The campaign, running over the winter period from late April to the end of July 2008, is promoting Adelaide, Kangaroo Island, and wine and food holidays. Qantas Holidays has joined the campaign as a major marketing partner and is providing additional advertising and travel trade activity. Campaign elements include television advertising comprising two 30 second commercials appearing on Channel 7, SBS and Foxtel in the important Sydney, Melbourne and Brisbane markets, sponsorship billboards appearing on the Sunrise morning television program and a direct mail-out to more than 100 000 households. The campaign is being supported by advertising in the magazines of metro daily newspapers in the three interstate cities, and online advertising directing consumers to a microsite, www.holidayaffairs.com.au, where they can build their itineraries and book their holidays. A major focus for both interstate and intrastate marketing activities was the development of advocacy based advertising driven by partnerships with media. In the intrastate market this led to a partnership with Channel 9 Adelaide. As part of a year-long campaign, television commercials featured a celebrity talking about their holiday experiences in the region. Monitoring showed that as each region was featured there was a demonstrable increase in recall of advertising for the region. In the broader domestic market, the Star Reporter campaign established media partnerships with magazines, which appeal to the state’s target audience such as Delicious, Better Homes and Gardens, Marie Claire, Men’s Health and Women’s Health. The magazines were used to deliver a series of editorial travel diaries generated by ‘readers’ of each magazine acting as guests or ‘star’ reporters. Reader competitions were carried out to select the guest reporters who were then sent on a range of South Australian holidays. Travel diaries recording their holiday experiences were inserted in the March issues of each magazine and on www.southaustralia.com. For the third year, the Commission managed the Brilliant Summer Events campaign, which promoted the sporting and cultural events held in Adelaide over the 2008 summer period. The campaign, which ran from October 2007 to February 2008, complimented the marketing activities undertaken by the individual events, and directed consumers to www.southaustralia.com for event specific information. Advertising, consisting of three 4 page advertisements, appeared in the Good Weekend magazines in the markets of Melbourne and Sydney over the campaign period. Online advertising supported the magazine advertising. The popular South Australia Shorts program was relaunched in the intrastate market in February/March 2008 with addressed and unaddressed direct mail and newspaper advertising encouraging locals to get a copy of the new Shorts book or to visit the new Shorts section of www.southaustralia.com. Over 10 000 copies of the new South Australian Shorts book were requested in the first two weeks of the campaign. The new online version of Shorts, which features all products, resulted in over 9079 visitors and 654 brochure downloads in the first three months. A Shorts Winter Sale campaign followed, promoting holiday packages with free nights and bonuses. The key promotional piece was a 32 page lift out in the Sunday Mail on 11 May 2008, with support advertising in newspaper, radio and online over May and June 2008. The Commission continued its sponsorship of Channel 9’s Postcards and Channel 7’s Discover. Three short video stories were also broadcast on VirginBlue in-flight entertainment throughout the financial year, highlighting food and wine experiences, outdoor nature-based holiday activities, and summer events. Coastal and food and wine holiday ideas were featured in A Cooks Tour with Paul Mercurio which aired on Channel 7 in February and March, and Jetstar in-flight entertainment in May. Travel Oz with Greg Grainger highlighted holiday experiences in the Flinders Ranges, Adelaide, and Kangaroo Island and aired over 25 episodes on the ABC starting in April 2008. In 2007-08, the government provided more than $2.2 million to the state’s 11 regional marketing bodies. Funding is provided on a cooperative basis, with contributions from local government and the tourism industry, generating funding of more than $5.2 million. In all 11 regions, the Commission has entered into multi year funding agreements with local government and the industry. The government contributes to the servicing of visitors to the state through funding of the state’s accredited visitor information centres (VICs). In 2007-08, the Commission provided $6000 to 45 accredited VICs to assist with operational costs, to a total of $270 000. The Commission also provided additional funding towards a range of other marketing initiatives, including the cooperative Recharge on the Murray Campaign and the Melbourne to Adelaide Touring Route. In 2008-09, the Commission will build on the results of the Winter Holiday Affair campaign and develop an integrated marketing campaign that will incorporate brand and retail advertising in two bursts over the year, to promote key tourism experiences to target tourism consumers in Melbourne, Sydney, and Brisbane. This campaign will provide a platform for trade industry partners to value-add with supplementary advertising and retail offers designed to increase the overall impact of the campaign’s messages. Advertising media will be driven by negotiated partnerships to give South Australia added value for its investment across television, newspaper, magazines and online advertising. In the intrastate market, the Shorts campaign will be invigorated to encourage South Australians to holiday more frequently in their own state with themed retail campaigns.

9.15

Sub-program: 4.2 International Marketing

Positions South Australia as a compelling part of an Australian journey for overseas visitors by working cooperatively with trade partners and implementing marketing campaigns to ensure the consumer is aware of South Australia as a holiday destination and that every opportunity is taken to convert this awareness into travel. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $7 544 000 $7 562 000 $7 783 000 $6 889 000

Performance Commentary In 2007-08, the Commission maintained representation in the markets of United Kingdom, North America, New Zealand, Europe, (Germany, France and Italy) South East Asia (Singapore) and North Asia (Hong Kong). South Australia also has a Tourism Ambassador in India, and staff based in the Adelaide office continue to service the Japanese market, with the assistance of a marketing and public relations company based in Tokyo. New Zealand continues to be a very important market for South Australia, with direct flights between Auckland and Adelaide operated by Air New Zealand. South Australia’s brand campaign recommenced at the end of January 2008. Television advertising remains a key component, focussing on Adelaide, wine and food, the River, self-drive and the Outback. To support the campaign, South Australia partnered with the New Zealand Herald and Onecard (Foodtown and Woolworths) for a major consumer competition to win four holiday packages to South Australia. Over a four week period, South Australia’s holiday experiences featured in the New Zealand Herald and on its website, and there were displays in Foodtown and Woolworths outlets. The key campaign piece was a four-page dedicated South Australian supplement inserted into 100 000 copies of the New Zealand Herald. Radio advertising supported this activity. The government has signed a new Memorandum of Understanding (MOU) with Singapore Airlines, from 1 November 2007 to 31 March 2010, which commits both parties to cooperative marketing activities aimed at promoting the Airline’s direct flights into Adelaide and increasing international visitation to the state. The MOU has resulted in extensive joint marketing campaigns in South Australia’s key markets of the UK and Europe (Nordic, Benelux, Central Europe, France and Italy). A major campaign in the UK market was the sponsorship of the prestigious Wanderlust Travel Photo of the Year award, the UK’s longest running amateur travel photography competition. Four amateur category winners, announced in February, have won tailor-made trips to South Australia to undertake a photo commission. The South Australian images captured by the winners will feature in a special supplement on South Australia to appear in the highly-regarded Wanderlust travel magazine in November 2008 and will be exhibited in London in May next year. A significant initiative for 2007-08 was the development of new international market specific websites under www.southaustralia.com. To date, five sites have been developed and launched for the UK, Italian, Korean, German, and French markets. Over the next four months, websites will be launched for Singapore, China (in both traditional and simplified Chinese), New Zealand, North America, and Japan. The sites include an SA experiences page, ‘where to go’ (highlighting regional experiences), a travel planner and a journey section. The launch of the UK site coincided with a major South Australian immigration campaign, which encouraged UK residents to consider Adelaide and South Australia as a place to live, study and work through a series of provocative advertisements. The launch of the Italian site was timed around a major consumer marketing campaign featuring the Explorer’s Way – the journey between Adelaide and Darwin. In Germany, the Commission undertook a joint Explorer’s Way campaign with Tourism Northern Territory and DERTOUR, one of Germany’s largest wholesalers. Campaign elements included an increase of South Australia’s presence within DERTOUR’s Australia brochure, a special Explorer’s Way edition in a travel trade publication, magazine advertising, window displays and a trade training event. In South East Asia, the Commission partnered with Tourism Australia and other state Tourism Organisations in the Best of Australia Campaign. In partnership with Qantas and British Airways, and trade partners across Singapore, the campaign offered customers a range of experiences with flexibility to design their own holiday. Itinerary options included Adelaide, Kangaroo Island, Victor Harbor, Barossa, Flinders Ranges, Outback and Eyre Peninsula. The packages were promoted by the participating retail agents, through press and online advertising, and were featured on the Best of Australia website. To build on the exposure for South Australia in Singapore, the Commission partnered with Singapore Airlines in a campaign promoting the brilliant blend of South Australian holidays in March and April. In North Asia, the Commission partnered with Tourism Australia in a number of travel agent training events, the Visiting Journalist Program and Aussie Specialists familiarisation trips. The Aussie Specialist Program is a Tourism Australia initiative, which aims to educate key travel agents on Australia through a range of initiatives such as training and familiarisations, better equipping them to sell Australia. The Commission participates in many of these events to ensure that key selling points for South Australia are highlighted.

In Japan, South Australia was featured for the first time in Tourism Australia’s Australian World Heritage Experiences campaign. The South Australian experience highlighted was the Naracoorte Caves World Heritage Fossil Site. As part of the campaign, travel itineraries from Adelaide to Melbourne, featuring the Caves, Blue Lake and Great Ocean Road, were created. Campaign elements included theming of trains in Tokyo, newspaper advertising and promotional postcards distributed at consumer events. In the emerging market of India, the SATC will continue to work with Tourism Australia and the Indian Travel Trade to promote South Australian holiday experiences. Discover SA, the Commission’s major inbound tour operator annual workshop, was held on Kangaroo Island for the first time in April 2008. The workshop involved one-on-one appointments between inbound tour operator from around Australia and South Australian tourism operators. Discover SA provided a great opportunity to promote Kangaroo Island’s tourism product and showcase new developments such as the Southern Ocean Lodge. In 2008-09, the Commission will continue to undertake marketing in its targeted international markets with a more consumer direct approach by increasing campaign activity with key partners and maintaining an emphasis on public relations. At the same time, the Commission will continue to work closely with distribution (trade) partners to ensure key South Australian tourism operators are well represented and featured in overall Australia programs. The Commission will also work towards ensuring the long-term viability of existing direct flights into Adelaide as well as encouraging new carriers to fly here – a critical factor in increasing international visitor numbers. Cooperative marketing campaigns will be undertaken with Air New Zealand in New Zealand and the United States, and with Singapore Airlines in UK and Europe.

9.16 SOUTH AUSTRALIAN TOURISM COMMISSION

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Expenses Employee benefit expenses — Salaries, wages, annual and sick leave ...... 10 968 10 753 10 649 10 604 Long service leave ...... 496 486 275 305 Payroll tax ...... 637 655 639 671 Superannuation ...... 1 104 1 078 941 1 056 Other ...... 204 198 — 116 Supplies and services — General supplies and services ...... 33 527 31 587 30 518 28 014 Consultancy expenses ...... 24 53 53 50 Depreciation and amortisation expenses ...... 455 380 358 364 Borrowing costs ...... 24 36 54 46 Grants and subsidies ...... 11 269 12 033 10 540 11 659 Intra government transfers ...... — 2 — — Other expenses ...... 83 82 68 97

Total expenses 58 791 57 343 54 095 52 982

Income Intra government transfers ...... — — — 350 Sales of goods and services ...... 6 892 7 182 7 591 6 306 Other income ...... — — — 14

Total income 6 892 7 182 7 591 6 670

Net cost of providing services 51 899 50 161 46 504 46 312

Income from / Expenses to SA Government Income — Appropriation ...... 51 899 48 698 46 642 46 011 Other income ...... — 1 608 — 97

Net income from / expenses to SA Government 51 899 50 306 46 642 46 108

Net result — 145 138 -204

9.17 SOUTH AUSTRALIAN TOURISM COMMISSION

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... 3 052 4 131 5 122 4 181 Receivables ...... 807 918 1 162 1 029 Other current assets ...... 593 592 40 591

Total current assets 4 452 5 641 6 324 5 801

Non current assets Financial assets ...... 400 400 400 400 Plant and equipment ...... 3 546 1 452 1 372 1 592 Intangible assets ...... 48 68 78 88

Total non-current assets 3 994 1 920 1 850 2 080

Total assets 8 446 7 561 8 174 7 881

Liabilities Current liabilities Payables ...... 1 545 1 821 2 259 2 106 Short-term borrowings ...... 193 180 180 169 Employee benefits — Salaries and wages ...... 286 286 227 286 Annual leave ...... 747 758 717 769 Long service leave ...... 285 285 153 285 Other current liabilities ...... 1 222 1 068 1 188 1 068

Total current liabilities 4 278 4 398 4 724 4 683

Non current liabilities Long-term borrowings ...... 50 243 243 423 Long-term employee benefits — Long service leave ...... 874 874 661 874 Other non-current liabilities ...... 1 234 — — —

Total non-current liabilities 2 158 1 117 904 1 297

Total liabilities 6 436 5 515 5 628 5 980

Net assets 2 010 2 046 2 546 1 901

Equity Contributed capital ...... 64 — — — Retained earnings ...... 1 946 2 046 2 546 1 901

Total equity 2 010 2 046 2 546 1 901

Balances as at 30 June end of period.

9.18 SOUTH AUSTRALIAN TOURISM COMMISSION

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... — — 1 901 1 901 Adjustments ...... — — — —

Restated balance at 30 June 2007 — — 1 901 1 901

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ...... — — 145 145

Total recognised income and expense for 2007-08 — — 145 145

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 — — 2 046 2 046

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2008-09 ... — — — — Net result after restructure for 2008-09 ...... — — — —

Total recognised income and expense for 2008-09 — — — —

Equity contributions from SA Government ...... 64 — — 64 Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 64 — 2 046 2 110

9.19 SOUTH AUSTRALIAN TOURISM COMMISSION

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash outflows Employee benefit payments ...... 13 420 13 181 12 515 12 508 Supplies and services ...... 33 551 31 639 30 572 29 423 Borrowing costs ...... 24 36 54 46 Grants and subsidies ...... 11 269 12 033 10 540 11 659 Intra government transfers ...... — 2 — — Other payments ...... -1 028 369 353 60

Cash used in operations 57 236 57 260 54 034 53 696

Cash inflows Intra government transfers ...... — — — 350 Sales of goods and services ...... 7 003 7 293 7 702 6 986 Net GST received ...... — — — -458 Other receipts ...... — — — 157

Cash generated from operations 7 003 7 293 7 702 7 035

SA GOVERNMENT: Appropriation ...... 51 899 48 698 46 642 46 011 Other receipts ...... — 1 608 — 97

Net cash provided by SA Government 51 899 50 306 46 642 46 108

Net cash provided by (+) / used (-) in operating activities 1 666 339 310 -553

INVESTING ACTIVITIES: Cash outflows Purchase of property, plant and equipment ...... 2 629 220 220 242

Cash used in investing activities 2 629 220 220 242

Cash inflows Proceeds from sale of property, plant and equipment ...... — — — 25

Cash generated from investing activities — — — 25

Net cash provided by (+) / used in (-) investing activities -2 629 -220 -220 -217

9.20 SOUTH AUSTRALIAN TOURISM COMMISSION

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 FINANCING ACTIVITIES: Cash outflows Repayment of borrowings ...... 180 169 169 158

Cash used in financing activities 180 169 169 158

Cash inflows Capital contributions from SA Government ...... 64 — — —

Cash generated from financing activities 64 — — —

Net cash provided by (+) / used in (-) financing activities -116 -169 -169 -158

Net increase (+) / decrease (-) in cash equivalents -1 079 -50 -79 -928

Cash and cash equivalents at the start of the financial year 4 131 4 181 5 201 5 109

Cash and cash equivalents at the end of the financial year 3 052 4 131 5 122 4 181

9.21

AGENCY: SOUTH AUSTRALIAN TOURISM COMMISSION

Financial Commentary — major variations

The following commentary relates to the agency Financial Statements presented in the previous section. The discussion relates to variations between the 2007-08 Estimated Result and the 2008-09 Budget.

Income statement — Controlled

Expenses

The $1.4 million increase in total expenses between the 2007-08 Estimated Result ($57.3 million) and the 2008-09 Budget ($58.8 million) is primarily due to an increase in expenditure to the stage the Tour Down Under UCI ProTour event and for preliminary work to stage the Australian Tourism Exchange in 2010.

These increases are offset by the completion of temporary support for the staging of events, including the 2007 Australian Masters Games.

Balance sheet — Controlled

The increase in Plant and Equipment and Non-current Liabilities is associated with the fit-out of the Commission’s new office premises that will be occurring in early 2008-09.

Cash flow statement — Controlled

The variances in the Cash flow statement are caused by the changes detailed in the Income Statement and Balance Sheet commentary above.

9.22

9.23 Portfolio: Families and Communities

Minister for Families and Communities Minister for Housing Minister for Ageing Minister for Disability

TABLE OF CONTENTS

PORTFOLIO SUMMARY

Ministerial Responsibilities...... 10.1

Portfolio Net Cost of Services Summary ...... 10.3

Investing Payments Summary...... 10.3

Portfolio Financial Statements

Income statement...... 10.4

Balance sheet...... 10.5

Statement of changes in equity...... 10.7

Cash flow statement ...... 10.8

Financial Commentary ...... 10.10

Workforce Summary ...... 10.11

Ministerial Offices Resources ...... 10.11

Agency Summaries

Department for Families and Communities ...... 10.12

South Australian Housing Trust...... 10.54

PORTFOLIO: FAMILIES AND COMMUNITIES

MINISTERIAL RESPONSIBILITIES

Minister Agency Programs Sub-Programs The Hon. Jay Weatherill Department for Families 1. Affordable Housing 1.1 Public and Affordable Minister for Families and and Communities Choices and Housing Services Communities Communities that 1.2 Housing Strategy and Prosper Minister for Housing Policy Minister for Ageing 2. High Need Housing 2.1 Supported Accommodation Minister for Disability Assistance Program 2.2 High Need Public and Affordable Housing Services 2.3 High Need Housing Strategy and Policy 3. Independence and 3.1 Disability SA — Office Community for Disability and Client Connection Services 3.2 Disability SA - Disability Services 3.3 Community Connect 3.4 Office for the Ageing 3.5 Domiciliary Care SA 3.6 Volunteers 4. Keeping Them Safe 4.1 Family Support and Child Safety 4.2 Guardianship and Alternative Care 4.3 Youth Justice 4.4 Anti-Poverty Services 5. Effective Business 5.1 Business Development Practices 5.2 Business Services 5.3 Infrastructure South Australian 1. Affordable Housing Nil Housing Trust Choices and Communities that Prosper 2. High Need Housing Nil

10.1

Administered items

In addition to the above responsibilities, the Portfolio administers the following items on behalf of the Minister:

• Charitable and Social Welfare Fund

• Community Service Obligations

• Concessions

• Gamblers Rehabilitation Fund

• Minister’s Salary

• Supported Residential Facilities Fund

• State Emergency Relief Fund

Statutes

The Department of the Premier and Cabinet maintains a list of statutes applicable to the Ministers.

10.2

PORTFOLIO NET COST OF SERVICES SUMMARY

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Agency $000 $000 $000 $000 Department for Families and Communities...... 779 430 748 394 717 487 697 762 South Australian Housing Trust ...... 291 207 279 371 256 190 253 545 Total 1 070 637 1 027 765 973 677 951 307 Intra-agency receipts...... -257 621 -252 074 -244 124 -228 975 Portfolio total 813 016 775 691 729 553 722 332 Note: The sum of the net expenditure amounts for the Department for Families and Communities and South Australian Housing Trust exceeds the values of net expenditure amounts consolidated for the Families and Communities Portfolio Statements. The variance results from intra-agency transactions. All state government and most Commonwealth government receipts are received by the Department for Families and Communities agency in the first instance and then transferred to the South Australian Housing Trust. To reflect the true net cost to the Government of South Australia for the services provided by these agencies, the component of intra-agency receipts reflecting state government appropriation has been excluded as reflected in the Portfolio total stated above.

The 2007-08 Budget for Families and Communities is lower than the amount published in the 2007-08 Budget papers due to the transfer of the South Australian Community Housing Authority (SACHA) into the South Australian Housing Trust (SAHT) and the corresponding elimination of payments from the Department for Families and Communities to SAHT that were previously paid to SACHA.

INVESTING PAYMENTS SUMMARY

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Agency $000 $000 $000 $000 Department for Families and Communities...... 17 475 6 855 14 130 4 057 South Australian Housing Trust ...... 213 404 158 565 201 984 134 969 Total 230 879 165 420 216 114 139 026 Note: Included in the 2007-08 Budget is $2.7 million for the purchase of assets by the former Aboriginal Housing Authority from the South Australian Housing Trust. This transaction is eliminated in the consolidated financial statements of the portfolio.

10.3 FAMILIES AND COMMUNITIES

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Expenses Employee benefit expenses — Salaries, wages, annual and sick leave ...... 318 420 313 519 297 427 269 680 Long service leave ...... 9 904 8 406 8 244 6 699 Payroll tax ...... 17 678 18 008 16 179 14 903 Superannuation ...... 32 126 30 399 29 055 27 079 Other ...... 5 004 11 038 6 233 8 603 Supplies and services — General supplies and services ...... 323 391 323 525 319 479 308 993 Consultancy expenses ...... 2 178 2 118 1 259 724 Depreciation and amortisation expenses ...... 79 744 77 740 79 312 73 975 Borrowing costs ...... 44 382 46 071 47 913 48 531 Grants and subsidies ...... 398 118 368 501 342 155 350 751 Intra government transfers ...... 25 733 33 792 29 393 85 331 Other expenses ...... 176 765 158 343 162 226 154 302

Total expenses 1 433 443 1 391 460 1 338 875 1 349 571

Income Commonwealth revenues ...... 285 023 283 225 277 704 260 792 Intra government transfers ...... 13 266 16 146 11 551 45 517 Other grants ...... — — — -36 Fees, fines and penalties ...... 749 762 1 166 887 Sales of goods and services ...... 268 332 264 249 266 198 262 157 Interest revenues ...... 3 675 5 583 5 133 8 070 Net gain or loss from disposal of assets ...... 42 434 33 858 34 964 30 073 Resources received free of charge ...... — 4 351 57 352 Other income ...... 6 948 7 595 12 549 19 427

Total income 620 427 615 769 609 322 627 239

Net cost of providing services 813 016 775 691 729 553 722 332

Income from / Expenses to SA Government Income — Appropriation ...... 779 430 743 343 714 702 653 077 Other income ...... — 692 — 4 892

Net income from / expenses to SA Government 779 430 744 035 714 702 657 969

Net result before restructure(s) -33 586 -31 656 -14 851 -64 363

Net income from / expenses from administrative restructure(s) .. — 3 061 3 061 34 032

Net result after restructure(s) -33 586 -28 595 -11 790 -30 331

10.4 FAMILIES AND COMMUNITIES

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... 155 182 176 285 103 580 148 802 Receivables ...... 34 585 36 404 31 150 36 103 Inventories ...... 61 669 61 669 71 778 61 193 Financial assets ...... 1 531 1 531 1 542 — Other current assets ...... 342 342 7 038 279 Non-current assets class held for sale ...... 24 123 24 123 2 799 24 123

Total current assets 277 432 300 354 217 887 270 500

Non current assets Investment properties ...... 1 139 1 139 — 1 139 Land and improvements ...... 7 849 711 7 730 111 7 615 279 7 343 366 Plant and equipment ...... 24 595 11 433 37 144 10 225 Heritage assets ...... — — 3 083 — Intangible assets ...... 8 759 8 759 7 454 8 759 Other non-current assets ...... 846 846 884 1 915

Total non-current assets 7 885 050 7 752 288 7 663 844 7 365 404

Total assets 8 162 482 8 052 642 7 881 731 7 635 904

Liabilities Current liabilities Payables ...... 45 829 44 949 46 378 42 885 Short-term borrowings ...... 91 359 88 803 23 384 22 709 Employee benefits — Salaries and wages ...... 6 796 6 796 5 556 5 711 Annual leave ...... 25 614 25 353 16 552 22 889 Long service leave ...... 13 502 12 416 9 900 10 918 Superannuation ...... — — 2 614 — Other ...... 1 038 1 038 3 403 1 085 Short-term provisions ...... 10 854 10 169 8 445 8 915 Other current liabilities ...... 10 276 10 276 14 369 10 276

Total current liabilities 205 268 199 800 130 601 125 388

Non current liabilities Long-term borrowings ...... 641 393 732 751 794 213 816 843 Long-term employee benefits — Long service leave ...... 46 087 43 551 48 088 37 152 Superannuation ...... — — 17 354 — Other ...... — — 3 635 — Long-term provisions ...... 18 757 18 201 15 399 16 292 Other non-current liabilities ...... 5 239 5 688 5 671 23 749

Total non-current liabilities 711 476 800 191 884 360 894 036

Total liabilities 916 744 999 991 1 014 961 1 019 424

Net assets 7 245 738 7 052 651 6 866 770 6 616 480

10.5 FAMILIES AND COMMUNITIES

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Equity Contributed capital ...... 41 888 26 991 26 991 19 474 Retained earnings ...... 1 609 549 1 605 135 1 605 383 1 595 730 Asset revaluation reserve ...... 5 594 301 5 420 525 5 234 396 5 001 276

Total equity 7 245 738 7 052 651 6 866 770 6 616 480

Balances as at 30 June end of period.

10.6 FAMILIES AND COMMUNITIES

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... 19 474 5 001 276 1 595 730 6 616 480 Adjustments ...... — — — —

Restated balance at 30 June 2007 19 474 5 001 276 1 595 730 6 616 480

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — 419 249 — 419 249 Net changes in reserves ...... — — 38 000 38 000

Net income/expense recognised directly in equity for 2007-08 ... — 419 249 38 000 457 249 Net result after restructure for 2007-08 ...... — — -28 595 -28 595

Total recognised income and expense for 2007-08 — 419 249 9 405 428 654

Equity contributions from SA Government ...... 7 517 — — 7 517 Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 26 991 5 420 525 1 605 135 7 052 651

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — 173 776 — 173 776 Net changes in reserves ...... — — 38 000 38 000

Net income/expense recognised directly in equity for 2008-09 ... — 173 776 38 000 211 776 Net result after restructure for 2008-09 ...... — — -33 586 -33 586

Total recognised income and expense for 2008-09 — 173 776 4 414 178 190

Equity contributions from SA Government ...... 14 897 — — 14 897 Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 41 888 5 594 301 1 609 549 7 245 738

10.7 FAMILIES AND COMMUNITIES

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash outflows Employee benefit payments ...... 379 437 380 434 355 445 322 585 Supplies and services ...... 323 223 322 579 318 431 301 900 Borrowing costs ...... 44 760 45 441 46 681 48 601 Grants and subsidies ...... 398 118 368 501 342 155 350 751 Net GST paid ...... — — — 65 736 Intra government transfers ...... 25 733 33 792 29 393 85 331 Other payments ...... 158 866 156 469 144 428 142 007

Cash used in operations 1 330 137 1 307 216 1 236 533 1 316 911

Cash inflows Taxation ...... — — — 117 Intra government transfers ...... 13 266 16 146 11 551 45 517 Commonwealth receipts ...... 285 023 283 225 277 704 260 792 Other grants ...... — — — -7 356 Fees, fines and penalties ...... 749 762 1 166 887 Sales of goods and services ...... 261 811 257 777 259 726 257 061 Interest received ...... 3 675 5 583 5 133 8 242 Dividends received ...... — — 5 000 5 000 Net GST received ...... — — — 104 047 Other receipts ...... 8 034 8 431 8 635 8 298

Cash generated from operations 572 558 571 924 568 915 682 605

SA GOVERNMENT: Appropriation ...... 779 430 743 343 714 702 653 077 Other receipts ...... — 692 — 4 892

Net cash provided by SA Government 779 430 744 035 714 702 657 969

Net cash provided by (+) / used (-) in operating activities 21 851 8 743 47 084 23 663

INVESTING ACTIVITIES: Cash outflows Purchase of property, plant and equipment ...... 230 879 165 420 213 414 139 026 Advances paid ...... — — — 5

Cash used in investing activities 230 879 165 420 213 414 139 031

Cash inflows Proceeds from sale of property, plant and equipment ...... 261 830 193 864 184 060 145 623 Repayment of advances ...... — — — 16

Cash generated from investing activities 261 830 193 864 184 060 145 639

Net cash provided by (+) / used in (-) investing activities 30 951 28 444 -29 354 6 608

10.8 FAMILIES AND COMMUNITIES

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 FINANCING ACTIVITIES: Cash outflows Repayment of borrowings ...... 88 802 37 040 21 959 37 165

Cash used in financing activities 88 802 37 040 21 959 37 165

Cash inflows Capital contributions from SA Government ...... 14 897 7 517 7 517 8 711 Proceeds from borrowings ...... — 19 043 — — Proceeds from restructuring activities ...... — 776 776 —

Cash generated from financing activities 14 897 27 336 8 293 8 711

Net cash provided by (+) / used in (-) financing activities -73 905 -9 704 -13 666 -28 454

Net increase (+) / decrease (-) in cash equivalents -21 103 27 483 4 064 1 817

Cash and cash equivalents at the start of the financial year 176 285 148 802 99 516 146 985

Cash and cash equivalents at the end of the financial year 155 182 176 285 103 580 148 802

10.9

FINANCIAL COMMENTARY

Income statement — Controlled

The Families and Communities Portfolio is comprised of two separate entities, as listed below with transactions occurring between each of the entities:

• Department for Families and Communities (DFC)

• South Australian Housing Trust (SAHT)

The total operating expenditure of the Portfolio is forecast to increase by $42.0 million to $1.433 billion compared with the 2007-08 Estimated Result of $1.391 billion. This reflects additional expenditure to address increased demand for services within Families SA, an increase in tax equivalent regime payments and the impact of previous years budget decisions. This is partially offset by once-off funding received in 2007-08 for Tregenza Avenue Aged Care Services, the Supported Accommodation Demonstration project, insurance payment and programs for Aboriginal and Torres Strait Islanders.

The total income from government to be received by the portfolio for 2008-09 is forecast to increase by $35.4 million when compared to the 2007-08 Estimated Result. This reflects the additional funding the department will receive for the increases in government expenditure outlined above.

10.10

WORKFORCE SUMMARY

FTEs as at 30 June 2008-09 2007-08 2006-07 Agency Budget Estimated result Actual Department for Families and Communities 4 872.9 4 856.5 4 094.9 South Australian Housing Trust 881.4 881.4 863.0 Total 5 754.3 5 737.9 4 957.9

As part of a suite of governance reforms being undertaken, responsibility for the Metropolitan Domiciliary Care Services (now Domiciliary Care SA) transferred from the Minister of Health to the Minister for Ageing from 11 January 2007. As the Appropriation for Metropolitan Domiciliary Care remained in the Health Portfolio in 2006-07, the associated 641 FTEs are reported in the Health Portfolio and are not included in the Department for Families and Communities 2006-07 Actual.

MINISTERIAL OFFICE RESOURCES

2008-09 Budget Cost of provision Minister $000 FTEs The Hon. Jay Weatherill 1 430 9.0

10.11 TABLE OF CONTENTS

AGENCY: DEPARTMENT FOR FAMILIES AND COMMUNITIES

Objective ...... 10.13

Targets / Highlights...... 10.13

Program Net Cost of Services Summary...... 10.15

Investing Payments Summary...... 10.16

Program Information — includes description/objective, summary income statement, sub-program information including performance criteria

1. Affordable Housing Choices and Communities that Prosper ...... 10.17

2. High Need Housing ...... 10.19

3. Independence and Community Connection ...... 10.22

4. Keeping Them Safe ...... 10.30

5. Effective Business Practices ...... 10.35

Financial Statements

Income statement ...... 10.39

Balance sheet...... 10.40

Statement of changes in equity ...... 10.41

Cash flow statement...... 10.42

Income statement — Administered Items...... 10.44

Balance sheet — Administered Items...... 10.45

Statement of changes in equity — Administered Items...... 10.46

Cash flow statement — Administered Items ...... 10.47

Financial Commentary ...... 10.48

10.12 PORTFOLIO: FAMILIES AND COMMUNITIES

AGENCY: DEPARTMENT FOR FAMILIES AND COMMUNITIES

Objective

The Department for Families and Communities (DFC) is responsible for setting strategic priorities, policy development and administration of the public and community housing, child protection, ageing and community care services and disability services.

2008-09 Targets / 2007-08 Highlights

Targets 2008-09 Highlights 2007-08

Objective 1: Affordable housing choices and communities that Objective 1: Affordable housing choices and communities that prosper prosper • Establish 200 new affordable rental housing commitments in • Achieved 141 new affordable rental housing commitments in partnership arrangements partnership arrangements as at 31 March 2008 • Negotiate a new Indigenous Housing Agreement with the • Realigned the Not-For-Profit Growth program in Commonwealth Government. South Australia to the National Regulatory Framework • Negotiate a new National Affordable Housing Agreement • Responded to Commonwealth announced National Indigenous Housing Reform Strategy Objective 2: High need housing Objective 2: High need housing • Finalise the future directions for homelessness services • Develop a Foyer Plus youth housing project which links • Developed strategic proposal for sector reform of Supported accommodation to education, training and employment Accommodation Assistance Program • Develop a high needs housing plan aligned with the • Undertook business impact assessment for new legislation to Housing SA strategic asset plan replace the Supported Residential Facilities Act 1992 • Implement a new housing service model on the APY Lands • Completed the Franklin Street Bus Station complex which includes 38 home units for homeless and low income earners • Adopt a Common Ground supportive housing model in through Common Ground Port Augusta that links accommodation to training programs that lead to workforce participation Objective 3: Independence and community connection Objective 3: Independence and community connection • Created 40 new community based group homes through the Strathmont Centre Community Living and Sustainment Project • Implement strategies to double the number of people with disabilities appropriately housed and supported in community • Implemented the Supported Accommodation Strategy based accommodation by 2014 • Strengthened consumer advisory mechanisms to support the • Implement strategies to achieve South Australia’s reform of services for people with a disability Strategic Plan target of increasing by 400 the number of people • Further progress on transitioning people with a disability from with a disability involved in day options program by 2014 institutional care to community settings • Lead an across government strategy to double the number of • Developed and commenced implementation of a consistent people with a disability employed in the Public Sector by 2014 DFC Performance Management Framework for community • Implement service approaches which offer people with a grants disability the opportunity for choice, control, independence and • Launched an online access point for community grants and inclusion information for funded community services organisations • Improve access and delivery of disability services to • Increased the number of non-government organisations Aboriginal and Torres Strait Islander people with a disability engaging in a quality framework and non-government • Enhance community services to Aboriginal families with organisations achieving accreditation under the Service children and Aboriginal youth Excellence internationally accredited management standards • Commence implementation of the Community Engagement • Developed the Community Engagement Charter and Charter and Directions Statement Directions Statement and increased community engagement activities • Continue to implement the second round of kick-start projects from Improving with Age — Our Ageing Plan for • Developed the Community Benefit SA Special Family Support South Australia and continue to build on current across Grants Program and funded projects to deliver intensive government reporting systems and develop new research family support services in high need areas initiatives • Implemented the new Dame Roma Mitchell Trust Fund • Continue to expand basic Home and Community Care ‘Trust Deed’ that provides funding specifically for young maintenance and support for frail older people and their carers people with a disability who have been in care and streamlined operational processes • Commence the Home Care Connect demonstration project to simplify entry to the community care service system and • Provided additional indexation on grants to the community streamline assessment and referral processes for older people services sector of one per cent annually to address workforce

10.13 Targets 2008-09 Highlights 2007-08

• Promulgate the Carers Recognition Act 2005 attraction and retention issues • Implement the new structure of the Gambling Help Services • Continued to expand basic Home and Community Care across South Australia maintenance and support for frail older people and their carers • Improve the take-up rate of therapy and counselling services by • Established a register of South Australian retirement villages problem gamblers and advanced investigations of breaches of the Retirement Villages Act 1987 • Implement a revised stakeholder management model to increase effectiveness and efficiency of volunteer management • Implemented the second round of kick-start projects, built on existing reporting systems and developed new research Objective 4: Keeping them safe initiatives from the Improving with Age — Our Ageing Plan for • Increase the number of social workers on the APY Lands in South Australia response to the Mullighan Report • Evaluated and restructured problem gambling help services to • Strengthen the whole of government response to children’s better attend to the needs of problem gamblers including the safety and wellbeing establishment of state-wide regional service networks • Increase the capacity of the non-government sector to work • Integrated Metropolitan Domiciliary Care into the department with families to keep children safe and prevent children’s entry • Developed and implemented a web-based volunteer data to alternative care, and to return children safely home management application as well as further developed and • Increase support to foster carers and relative and kinship carers released the Volunteer Emergency Recovery Information System for local and national use • Further the implementation of the Keeping them Safe — In Our Care strategy Objective 4: Keeping them safe • Improve the management and supervision of Youth Justice • Increased financial support for foster, relative and kinship clients, including those involved in chronic offending and carers by an average of 26 per cent Aboriginal specific interventions • Child Safety Conferences trialled to improve child protection • Progress the replacement of the secure youth training centres responses Objective 5: Effective business practices • Integrated Children’s Centres for children 0–8 years of age and their families have been established in partnership with other • Continue to improve service access to customers by agencies implementing connected service centres • Commenced implementation of Keeping them Safe — In Our • Implement the Customer Satisfaction Measurement Strategy Care strategy across the department including a trial with the non-government organisation sector • Improved systems to manage and supervise Youth Justice clients • Further reduce energy usage across the portfolio • Developed and implemented Safe Houses for Aboriginal women and children fleeing domestic violence Objective 5: Effective business practices • Developed a Customer Satisfaction Measurement Strategy • Increased the participation of Aboriginal people in the department, spread across all classifications • Implemented recruitment strategies to ensure at least 50 per cent of women at executive levels • Increased the number of people with disabilities employed in the department • Reduced energy usage by 10 per cent throughout the portfolio

10.14 Program net cost of services summary

Net Cost of Services 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Program $000 $000 $000 $000

1. Affordable Housing Choices and 70 707 64 184 62 726 57 719 Communities that Prosper ...... 2. High Need Housing...... 124 865 115 364 112 935 103 330 3. Independence and Community 306 990 305 575 300 244 288 383 Connection ...... 4. Keeping Them Safe...... 220 660 207 979 185 628 192 967 5. Effective Business Practices...... 56 208 55 292 55 954 53 777 Total 779 430 748 394 717 487 696 176

Reconciliation to agency net cost of providing services (as per agency Summary income statement) Add: Net cost of programs/functions transferred out — Office for Women to Justice...... — — — 1 586 Equals: Net cost of providing services 779 430 748 394 717 487 697 762 (as per agency summary income statement) Note: The 2007-08 Budget amounts for each program differ from those published in the 2007-08 Portfolio Statements due to changes in departmental functions and associated sub-program structures. The 2007-08 Budget amounts in these statements have been amended for comparative purposes. The 2006-07 Actual for Program 3 includes $18.7 million (full year) for Metropolitan Domiciliary Care. This program transferred from the Department of Health to DFC during 2006-07.

10.15 Investing payments summary

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Investments $000 $000 $000 $000 New Works Fit-out of Riverside Building...... 450 — — — Total New Works 450 — — —

Works in Progress New Prisons & Secure Facilities — Public Private Partnership (PPP) Project ...... 253 316 — — Community Residential Care Facilities ...... 5 693 50 — — Connected Service Centre — Mount Gambier...... 1 040 115 — — Reorganisation of services relating to Independence and Community Connection ...... 2 000 1 000 1 000 — Families SA — 108 North Terrace...... — 534 — 1 395 Child Protection Review — Accommodation ...... — 274 150 216 Families SA Accommodation and Security ...... — 144 — — Client and Case Management System ...... 3 000 1 820 4 820 1 508 SACOSS Children’s Facility...... — 310 310 — Families SA Adelaide District Office...... — 507 — 694 Youth Training Centres — Sustainment — 607 566 200 Metropolitan Domiciliary Care ...... 3 962 22 3 984 — Strathmont Centre...... 796 885 800 — Other DFC Capital Works...... — — — 581 Total Works in Progress 16 744 6 584 11 630 4 594

Minor Works Minor Works — Families SA...... — — 539 465 Minor Works — ICT...... — — 1 421 -1 194 Domiciliary Care SA...... 55 51 51 — Planning & Feasibility...... 226 220 220 192 Minor Works — Disability Services ...... — — 269 — Total Minor Works 281 271 2 500 -537 Total Investing Payments 17 475 6 855 14 130 4 057

10.16 AGENCY: DEPARTMENT FOR FAMILIES AND COMMUNITIES

Program Information

Program 1: Affordable Housing Choices and Communities that Prosper

Description/Objective: To work with others to expand and improve affordable housing choices across the state and help build communities that prosper.

This program encompasses the management of grants for housing services to low-income households. This includes grants for the provision of private rental services, public, Aboriginal and community managed housing, the funding and regulation of community housing.

Summary income statement

Program 1: Affordable Housing Choices 2008-09 2007-08 2007-08 2006-07 and Communities that Prosper Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 25 020 27 155 26 849 22 483 Supplies and services...... — — — 335 Grants and subsidies ...... 90 374 83 154 83 712 80 949 Depreciation and amortisation...... — — 2 2 Total expenses 115 394 110 309 110 563 103 769 Income Sale of goods and services...... 22 703 24 353 24 120 20 674 Commonwealth revenue ...... 21 588 21 772 21 731 21 395 Other...... 396 — 1 986 3 981 Total income 44 687 46 125 47 837 46 050 Net cost of providing services 70 707 64 184 62 726 57 719

10.17 Sub-program information

Sub-program: 1.1 Public and Affordable Housing Services(a)(b)

Grants paid for the provision and management of public and Aboriginal housing, private rental assistance to low-income households and funding and regulation of community housing. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $68 064 000 $61 403 000 $60 004 000 $58 080 000

Performance Commentary Performance indicators for public and affordable housing services are included under Program 1 of the South Australian Housing Trust.

Footnotes (a) Previously named Public Housing and Private Rental Assistance. (b) Combines previously reported sub-program 1.2, Aboriginal Housing, and sub-program 1.3, Community Housing. Associated performance indicators are included under Program 1 of the South Australian Housing Trust.

Sub-program: 1.2 Housing Strategy and Policy(a)

Provide community renewal, asset management and affordable housing strategy and policy development and advice, including financial advice, to Housing SA. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $2 643 000 $2 781 000 $2 722 000 -$361 000

Performance Commentary Impact of this work is reflected in the public and affordable housing services under Program 1 for the South Australian Housing Trust. The 2006-07 Actual recognises income including interest and dividends whilst the overhead expenses are imbedded in other areas of the portfolio. From 2007-08, the revenues are recognised under sub-program 1.1.

Footnotes (a) Previously reported as sub-program 1.4, Secretariat and Other Housing Services and Grants.

10.18 AGENCY: DEPARTMENT FOR FAMILIES AND COMMUNITIES

Program Information

Program 2: High Need Housing

Description/Objective: To develop and implement better high need housing and service responses for people at risk or in high need.

This program encompasses the management of grants for housing services for people in high need and supported accommodation assistance for people in crisis as well as providing other services and programs related to high need housing.

Summary income statement

Program 2: High Need Housing 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 42 354 40 733 40 273 37 946 Supplies and services...... — — — 491 Grants and subsidies ...... 195 735 183 629 184 229 177 583 Depreciation and amortisation...... — — 3 2 Total expenses 238 089 224 362 224 505 216 022 Income Sale of goods and services...... 38 877 36 550 36 178 35 246 Commonwealth revenue ...... 70 957 69 229 69 173 68 265 Other...... 3 390 3 219 6 219 9 181 Total income 113 224 108 998 111 570 112 692 Net cost of providing services 124 865 115 364 112 935 103 330

10.19 Sub-program information

Sub-program: 2.1 Supported Accommodation Assistance Program

Performance and contract monitoring, training and advice for providers delivering supported accommodation and support services to assist people who are homeless or at imminent risk of homelessness. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $13 666 000 $12 201 000 $12 183 000 $11 025 000

Performance Commentary There has been continuous improvement in both management and service development for the Supported Accommodation Assistance Program (SAAP). A comprehensive consultation process across metropolitan and rural South Australia has been undertaken to engage all SAAP service providers in the development of strategies to meet the strategic directions of the SAAP(V) agreement and the SAAP reform agenda. New service agreements have been introduced with SAAP youth agencies and other regional service providers that place greater emphasis upon early intervention and post crisis support in line with SAAP(V) priorities. The new agreements also contain individualised service descriptions, flexible service provision across geographical boundaries and Key Performance Indicators with a focus on case management and case management outcomes. The 15 Innovation and Investment projects, which commenced in 2005-06, are continuing and will all be evaluated in the latter part of 2008, with a view to continuing those evaluated as successful in achieving designated outcomes. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual(a) No. of clients receiving a SAAP service 12 000 11 900 11 900 12 200 No. of SAAP support periods(b) 20 200 20 100 18 000 20 000 No. of SAAP closed support periods that 7 700 7 500 8 500 7 200 included accommodation % of clients exiting to independent housing 50% 49% 49% n.a. and not returning within six months % of clients with a case management plan 70% 68% 68% n.a. other than short term clients(c) % of services needed by clients that were 96% 96% 96% n.a. provided or referred to another agency Average recurrent cost per completed SAAP $1 800 $1 700 $1 600 $1 585 support period Average recurrent cost per day of SAAP $25(d) $28 $28 n.a. support per person

Footnotes (a) Some data for 2006-07 is not available due to the Annual Report of the Australian Institute of Health and Welfare not yet published. (b) A SAAP support period is a period of time an individual client is supported and managed. A client may receive multiple support periods. (c) Performance indicator has been amended to reflect actual data reported. (d) From 2008-09, this indicator will be calculated by including innovation and investment and SAAP-like programs, thereby reducing the average cost per client per day of SAAP support.

10.20 Sub-program: 2.2 High Need Public and Affordable Housing Services(a)(b)

Grants paid for the provision and management of public and Aboriginal housing, private rental assistance to high need and low-income households, funding and regulation of high need community housing and the provision and management of transitional accommodation to assist Aboriginal people and families who are homeless by providing short to medium term accommodation. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $107 234 000 $98 992 000 $96 669 000 $92 333 000

Performance Commentary Performance indicators for high need public and affordable housing services are included under Program 2 for the South Australian Housing Trust.

Footnotes (a) Previously named High Need Public Housing and Private Rental Assistance. (b) Combines previously reported sub-program 2.3, High Need Aboriginal Housing, and sub-program 2.4, High Need Community Housing. Associated performance indicators are included under Program 2 of the South Australian Housing Trust.

Sub-program: 2.3 High Need Housing Strategy and Policy(a)

Provide community renewal, asset management and affordable housing strategy and policy development and advice, including financial advice, relating to people with high needs, to Housing SA. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $3 965 000 $4 171 000 $4 083 000 -$28 000

Performance Commentary The impact of this work is reflected in the high need public and affordable housing services under Program 2 for the South Australian Housing Trust. The 2006-07 Actual recognises income including interest and dividends whilst the overhead expenses are imbedded in other areas of the portfolio. From 2007-08, the revenues are recognised under sub-program 2.2.

Footnotes (a) Previously reported as sub-program 2.5, High Need Secretariat and Other Housing Services and Grants.

10.21 AGENCY: DEPARTMENT FOR FAMILIES AND COMMUNITIES

Program Information

Program 3: Independence and Community Connection

Description/Objective: To enable people to take charge of their lives and ensure community connection opportunities are available to all.

This program encompasses the provision of services related to supporting people with disabilities to live in the community, managing grants and providing advice to the Minister for the promotion of health, social wellbeing and quality of life of the community and implementing strategies and programs to promote the participation and support of older people in the community.

Summary income statement

Program 3: Independence and 2008-09 2007-08 2007-08 2006-07 Community Connection Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 170 582 174 504 171 328 161 645 Supplies and services...... 86 564 94 801 89 906 89 431 Grants and subsidies ...... 260 608 258 584 247 581 235 521 Depreciation and amortisation...... 1 948 1 963 3 447 1 954 Other...... 2 826 532 1 832 571 Total expenses 522 528 530 384 514 094 489 122 Income Sale of goods and services...... 20 579 21 538 22 776 20 176 Fees, fines and penalties ...... — — — 18 Commonwealth revenue ...... 187 156 186 824 183 410 175 900 Other...... 7 803 16 447 7 664 4 645 Total income 215 538 224 809 213 850 200 739 Net cost of providing services 306 990 305 575 300 244 288 383

10.22 Sub-program information

Sub-program: 3.1 Disability SA — Office for Disability and Client Services

The Office for Disability and Client Services leads strategic policy and planning, resource allocation and monitoring program development and support across the disability sector. The office promotes disability rights and the equitable treatment of people with disabilities and their associates across government by advising and promoting the inclusion of people with disabilities in all government activities and funded services. The development, implementation and monitoring of the whole of government disability strategy Promoting Independence: Disability Action Plans for South Australia is led by this office. Coordinates the government programs that sustain the Supported Residential Facilities (SRFs) pension-only sector including assessing the needs of new entrants and reviewing the needs of existing residents to facilitate their access to mainstream services. Oversees payment and accountability for the board and care subsidy provided to proprietors of SRFs and the coordination of responses to residents relocated as an outcome of facility closures. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $96 993 000 $101 772 000 $95 347 000 $96 048 000

Performance Commentary The current Commonwealth State and Territory Disability Agreement (CSTDA) which was to expire on 30 June 2007, has been extended until December 2008 at existing funding levels. Disability policy development in South Australia has been supported by a new Minister’s Disability Advisory Council comprising people with a lived experience of disability. Key achievements in 2007-08 for the Office for Disability and Client Services include: • introduction of the Companion Card; • agreed new target, relating to employment outcomes for people with disabilities, for agencies to report progress against under the Promoting Independence Strategy; • further enhancements to performance reporting for funded agencies, including the roll-out of the department’s quality performance monitoring framework to funded agencies; and • expansion of existing early intervention services for children with autism. A focus of the coming year will be to finalise the new disability services specific purpose payment arrangements. The evidence base for planning and funding of disability services will be improved through strengthened information and analysis activities. A framework will be developed to guide funding of the non-government sector. Work will commence on implementing service approaches, which offer real choice and control to people with disabilities. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of accommodation support services • Institutional/ large residential 320 330 700 383 facilities(a)(b) • Community accommodation and care(a)(b) 560 550 935 505 • In home support and alternative care(a)(b) 3 820 3 820 4 240 3 745 No. of community support services(a) 6 000 6 000 14 700 5 725 No. of community access services(a) 7 560 7 500 6 100 7 041 No. of respite services(a) 2 050 2 050 2 300 1 940 % of service providers with national service 100% 100% 100% 100% standards included in funding and service agreements No. of people with exceptional needs 250 232 160 212 successfully transitioning to the community(c) No. of SRF residents assessed to determine n.a. 145 185 181 support needs(d)(e) continued

10.23 Sub-program: 3.1 Disability SA — Office for Disability and Client Services continued

2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of SRF residents with high and complex n.a. 80 140 125 needs referred for additional support services through the SRF Sustainment Response(d) No. of SRF residents assisted to establish and n.a. 37 50 30 maintain alternative accommodation through Strategic Response to Closures(d)(f) No. of SRF residents assisted to achieve 882 940 975 1 053 improved quality of life through the provision of Sustainment Subsidy (Board and Care) No. of SRF residents who receive additional n.a. 360 380 360 support services including allied health to improve quality of life(d) No. of assessments undertaken through n.a. 37 50 30 planned approach and crisis referral responses(d) No. of SRF residents with high and complex 365 376 n.a. 421 needs(g) Implementation of SADP(h) 11 11 11 11 Recurrent expenditure for SADP support $590 634 $571 766 $567 891 $543 600 services(h) No. of participants with complex needs and 130 130 130 130 psychiatric disability to whom supported housing services are provided(h) No. of participants with improved quality 130 130 130 130 of life(h)

Footnotes (a) Previously reported results and the 2007-08 Target related to whole of sector services (ie provided by both government and non-government organisations). Calculation of results will now only be based on non-government sector services, consistent with the role of the Office for Disability and Client Services. (b) Services provided to individuals who may have moved into non-institutional accommodation during the year will also be included in the number of services from an institution or large residential facility. A new service (Ian George Court) was counted for the first time this year. (c) The number of clients is a combination of two programs, the Management Assessment Panel and the Psychiatric Disability Services. The Psychiatric Disability Service has been able to provide more support packages than anticipated in the Supported Accommodation Business Case. (d) To be deleted from 2008-09. (e) Number of assessments has declined as only new referrals and re-assessments are now required. (f) Over this period the number of SRF closures has reduced. (g) New indicator to replace previous SRF sector indicators that related specifically to the key responses of the five year Sustainment and Closure Response strategy. (h) Previously reported under sub-program 2.5, Secretariat and Other High Need Housing Services and Grants. Further, this indicator now only includes CSTDA related expenditure.

10.24 Sub-program: 3.2 Disability SA — Disability Services

Disability Services is the South Australian Government service provider for people with disabilities. It is responsible for providing services across the state which include supported accommodation, service coordination for consumers, families and carers and specialist services. Supported accommodation services cover lifestyle and community support, centre based accommodation, in-home support, developmental activities and supporting people with disabilities currently living in institutional or congregate settings to return to the community. Service coordination provides services for people with disability and their families through regional offices. Services are aimed at enhancing the development of people with a disability and to support their participation in family and community life. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $118 353 000 $117 494 000 $116 812 000 $101 280 000

Performance Commentary Disability SA aims to deliver a single system of government provided disability services that is easy for individuals and families to understand and obtain assistance from. Key outcomes that have been achieved during 2007-08 are: • ongoing implementation of moving 60 people with a disability from institutional care to community based settings; • improving the quality of support in accommodation services through the implementation of the Active Support model; • implementing a short term intervention service as part of Disability SA Intake services entitled Brief Assistance; • regionalisation of Aboriginal Service Coordinators to support access to services by Aboriginal people; • Disability Advisory Network of South Australia, a consumer consultation group, developed to inform Disability SA regarding services, development and future planning; • amalgamation of the former Demand Management Group and Client Panel to form the Accommodation Placement Panel to provide a focus for placement for homeless clients; • development of three regional allied health services, known as ASSIST teams; and • incorporating early childhood intervention services into a comprehensive model of child and youth services that offers continuity over the childhood years. Major initiatives for Disability SA in 2008-09 will include: • ongoing implementation of moving 60 people with a disability from institutional care to community based settings; • introduction of person centred active support in 13 Accommodation Service sites; • expansion of the Circles of Support initiative; • employing an Aboriginal intake officer to encourage referral to Disability SA for Aboriginal people; • ensuring that early childhood services continue to align with whole of government directions for early childhood, including recent changes announced by the Commonwealth Government; • developing a service framework for children and young people with Autism Spectrum Disorders, including Aspergers Syndrome; and • through the Younger People in Residential Aged Care program, develop a number of supported accommodation places for people under the age of 50 currently living in, or at risk of entering, residential aged care. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of accommodation support services provided to clients • institutional/ large residential 329 389 370 479 facilities(a)(b) • community accommodation and care 580 520 434 430 places(a)(b) No. of community support services(c) 11 000 11 100 4 900 9 776 No. of respite services 85 85 120 65 No. of clients receiving information 17 000 15 000 20 000 14 499 services(d) No. of new pieces of equipment/ home 940 900 900 1 053 modifications supplied(e) No. of repair and maintenance requests(e) 5 200 4 950 6 000 5 892 continued

10.25 Sub-program: 3.2 Disability SA — Disability Services continued

Footnotes (a) Services provided to individuals who may have moved into non-institutional accommodation during the year will also be included in the number of services of institutions and large residential facilities. (b) Reduction in number of services in institutions is due to the movement of people from Strathmont Centre to community accommodation and care, as part of the Strathmont Centre Redevelopment and Community Living Project. (c) Data is reported for all community support services across Disability Services. Data previously reported did not include the former Adult Physical Neurological, Brain Injury Options Coordination and Independent Living Centre service providers. (d) Information services exclude total number of internet contacts. Due to recent reforms, there has been considerable effort to develop information services in Disability SA. Changes in counting methods mean that 2007-08 Target is not comparable. (e) The department will launch the state-wide equipment service from July 2008. It is anticipated that the new system will produce efficiencies in repairs, maintenance and replacement of equipment and increase capacity to fund new equipment items.

10.26 Sub-program: 3.3 Community Connect

Undertakes the planning and management of grant programs to community organisations that provide services to help families and improve the quality of life of the community. Programs include the Community Benefit SA (CBSA) Fund, Family and Community Development Program (F&CD), Dame Roma Mitchell Trust Fund, Aboriginal Youth Development Fund and Community programs. Coordinates and promotes initiatives that improve service delivery provided by the non-government community sector funded by the department. Information systems are maintained to support monitoring and reporting on funding provided to community organisations. Quality and continuous improvement guidance and training are provided to organisations by the Service Excellence Program. Deliver support for South Australians on low incomes by administering concessions for energy and public transport and remissions on council rates, water and sewerage rates and the Emergency Services Levy. The Funeral Assistance Program helps families who cannot afford funeral costs. The Office for Problem Gambling plans, funds and monitors services provided through the Gamblers Rehabilitation Fund. This program also includes services provided by Aboriginal and Torres Strait Islander Services. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $17 926 000 $17 904 000 $17 740 000 $17 990 000

Performance Commentary In 2007-08, support provided to the community services sector to deliver high quality services has continued with the implementation of a number of strategies, including the new Community Benefit SA ‘Special Family Support Grants Program’ targeting intensive family support services and the Dame Roma Mitchell Trust Fund ‘Trust Deed’ providing funding specifically for young people with a disability. Benchmarks included in the new service agreements for youth services oblige service providers to improve service accessibility and better target services to vulnerable young people from different cultural backgrounds. The State Government’s additional one per cent indexation on state funding is being directed to non-government organisations to address workforce attraction and retention issues. Initiatives planned for 2008-09 include further implementation of the DFC Performance Management Framework across the department to ensure funding is achieving agreed outcomes and providing value for money. An evaluation of the Gambling Help Services has led to the division of the Gamblers Rehabilitation Program into two service streams which can better attend to the needs of problem gamblers across the state. The divisions are Statewide and Special Purpose Services for special population groups, and Regional Services to cover each of the new country and metropolitan regions. Further, Regional Services are funded to work collaboratively with Statewide and Special Purpose Services in order to refer and follow-up clients. The 2008-09 Target for the number of concessions has increased due to the new eligibility criteria for the water remission. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Agencies funded through F&CD achieve 90% 80% 90% 80% agreed outcomes within Service Agreements Agencies funded by Community Benefit SA 90% 90% 90% 91% achieve agreed outcomes as defined in Service Agreements No. of Service Initiatives for Aboriginal n.a. 3 1 3 clients implemented(a) Number of funded agencies engaging in the 216 196 160 145 Service Excellence Program % of Aboriginal specific services achieving 70% n.a. n.a. n.a. agreed outcomes in Service Agreements(b) No. of Funeral Assistance payments provided 320 341 375 375 No. of concessions 1 261 000 1 190 467 1 211 157 1 138 789

Footnotes (a) To be deleted from 2008-09. (b) New indicator to replace indicator to be deleted as per footnote (a). This indicator specifically relates to services funded by the Community Connect division of the department.

10.27 Sub-program: 3.4 Office for the Ageing

Support and promote the development of policies and strategies that create improved opportunities for individual activity and community participation of older people in South Australia through our ageing plan for South Australia, Improving with Age. The office administers a number of programs including the Home and Community Care (HACC) Program, the Aged Care Assessment Program (ACAP), South Australian Seniors Card Program, the Retirement Villages Act 1987, Positive Ageing Development Grants, Grants for Seniors, Ethnic Aged Care Grants and Peak Bodies Grants. The office also manages funding and initiatives associated with Improving with Age - Our Ageing Plan for South Australia and community care innovation. The Office for Carers sits within the Office for Ageing whilst working with carers of all ages. The Office for Carers is responsible for administering the Carers Recognition Act 2005. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual(a) Net cost of sub-program $41 564 000 $38 953 000 $38 655 000 $44 535 000

Performance Commentary The HACC Program is a joint Commonwealth and state initiative which funds the provision of basic maintenance and support services for frail older people, younger people with disabilities and their carers. South Australia provides 38 per cent of HACC Program funding, with the Commonwealth providing the remaining 62 per cent contribution. HACC services are provided by approximately 170 agencies in South Australia. In 2007-08 total recurrent funding for the HACC Program grew to $138.6 million, an increase of 8.2 per cent from 2006-07. Whilst national HACC Minimum Data Set figures are not yet available for 2007-08, it is estimated that a total of 100 000 South Australians have received support, an increase of 4000 people from 2006-07. There has been a significant increase from 2005-06 to 2006-07 in the reported total hours of HACC services provided by HACC funded agencies. The 2007-08 Target of 2 879 000 hours, which now appears comparatively low, was based upon 2005-06 data. In 2006-07 significant efforts to increase the proportion of agencies providing data and to improve overall data quality were made resulting in a substantial increase in the 2006-07 reported total hours of HACC services. In 2007, the department led a comprehensive consultation process to critically inform and develop the HACC Triennial Plan 2008-09 to 2010-11. Over the next three years, total HACC funding is expected to increase by an additional 25 per cent, to $174 million. ACAP is funded by the Commonwealth, but day-to-day operation and administration of the program rests with the State Government. The program’s objective is to comprehensively assess the needs of frail older people and facilitate access to available care services appropriate to their care needs. In 2007-08 the total recurrent funding for the ACAP program was $5.6 million, an increase of 4.4 per cent from 2006-07. All agencies that deliver HACC services to clients are appraised within a triennium. Throughout the three year period, from July 2005 to June 2008, 170 agencies were appraised, with 77 agencies during 2006-07 period. The table below indicates a 2007-08 target of 19, however an estimated result of 16 is shown. This is due to a number of smaller agencies being auspiced under larger agencies during this period. The Seniors Card Program recognises and values the contribution seniors have made and continue to make to the community of South Australia. There are more than 270 000 cardholders on the South Australian Seniors Card database with over 4 800 of those residing interstate. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Total Hours of HACC Service 4 682 700 4 519 600 2 879 000 4 183 600 No. of people receiving HACC services 104 200 100 000 101 500 96 000 No. of people receiving ACAT assessments 18 600 18 200 18 000 17 800 No. of agencies who have had National 51 16 19 77 Service Standards appraisal externally reviewed Number of Card Holders (includes 290 000 276 000 n.a. 261 023 non-current address)(b)

Footnotes (a) The 2006-07 Actual includes HACC grants paid to Metropolitan Domiciliary Care (MDC). From 2007-08, MDC has been transferred to DFC and are reported under sub-program 3.5, Domiciliary Care SA. (b) New indicator.

10.28 Sub-program: 3.5 Domiciliary Care SA(a)

Domiciliary Care SA provides services to people with reduced ability to care for themselves, assisting primarily older people to stay living in their own homes. The services provided include personal care, domestic assistance, equipment provision, home modifications, respite care, case management and service coordination, specialist dementia support services, palliative care, falls prevention programs, physiotherapy, speech pathology, social work, occupational therapy, podiatry, dietetics, specialist medical services from Geriatricians and specific programs to support Aboriginal people, Torres Strait Islanders and people from culturally and linguistically diverse backgrounds. Domiciliary Care SA also operates the Adelaide Aged Care Assessment Team (AACAT) which undertakes all assessments for entry into the aged care system. The Domiciliary Equipment Service is also managed by Domiciliary Care SA. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $31 734 000 $28 986 000 $31 282 000 $28 019 000

Performance Commentary Occasions of service, and client visits will be lower in 2007-08 due to the transfer of 250 high needs clients from Domiciliary Care SA to Disability SA in 2007-08. The funding associated with these clients was also transferred. A reduction in client activity also reflects the Day Rehabilitation Service transferring to the Central Northern Adelaide Health Service in 2007-08. More emphasis has been placed on providing a response to priority one category clients on the waiting list. This has resulted in an increase in service hours per client but fewer visits. An increase in activity and higher targets for the AACAT reflects an increase in demand for services, thereby requiring an increase in the allocated resources to provide support. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Occasions of Service (total contacts) • Domiciliary Care Service 480 000 475 000 520 000 495 169 • Aged Care Assessment Team 40 000 41 000 29 000 38 036 • Client visits 360 000 355 000 420 000 395 993

Footnotes (a) Previously named Metropolitan Domiciliary Care Services.

Sub-program: 3.6 Volunteers

Coordinate a consistent approach to the management of volunteers engaged directly by the department and volunteers engaged by organisations receiving departmental grants. Facilitate volunteering policy and programs in order to increase the numbers of volunteers working with the agency and its funded partners, provide volunteers with increased support to enable them to undertake their duties and increase the levels of reward and recognition for volunteers. Register and mobilise volunteers in emergency recovery. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $420 000 $466 000 $408 000 $511 000

Performance Commentary During 2007-08, a common volunteer recognition and acknowledgement system was developed. The total number of major recognition ceremonies conducted since the unit was formed stands at eight. His Excellency, the Governor of South Australia hosted the December awards ceremony. Further, Version 2.0 of the web-based Volunteer Emergency Recovery Information System (VERIS2.0) was completed and the web-based Volunteer Information Management System (VIMS) was developed and underwent user acceptance testing. 2008-09 2007-08 2007-08 2006-07 Performance Indicators(a) Target Estimated result Target Actual % of DFC staff volunteering 65% 62% 65% 62% No. of volunteers engaged directly by DFC 1 300 1 250 1 300 1 250 divisions and units % of DFC funded NGOs engaging volunteers 85% 85% 85% 85%

Footnotes (a) As data is loaded into the new VIMS, definitional issues continue, particularly around whether those involved in required community service should be counted as volunteers.

10.29 AGENCY: DEPARTMENT FOR FAMILIES AND COMMUNITIES

Program Information

Program 4: Keeping Them Safe

Description/Objective: Providing services that ensure children, young people and families are safe, supported and able to participate in opportunities coming from the state’s growing prosperity. This encompasses family support and child safety, alternative care for those children and young people not able to be cared for by their own families, case management and support for young people under the Guardianship of the Minister, adoption and post adoption services, youth justice services as directed by the Youth Court (eg remand, bail orders, Community Service Orders, Supervision and Home Detention), provision of secure care facilities for young people who are detained, emergency financial assistance, domestic violence assistance, anti-poverty preventative programs and recovery services for victims of disasters. Provision of services to Aboriginal children, young people, families and communities to strengthen capacity. Working in partnership with Aboriginal communities to address family violence. Provision of services to Aboriginal children, young people and families to reduce the over-representation of Aboriginal children and young people in care and protection and youth justice activities.

Summary income statement

Program 4: Keeping Them Safe 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 115 239 112 734 109 720 109 302 Supplies and services...... 23 122 26 908 26 051 26 751 Grants and subsidies ...... 83 921 71 151 52 346 61 420 Depreciation and amortisation...... 1 245 1 243 1 482 1 348 Other...... 2 888 509 9 39 Total expenses 226 415 212 545 189 608 198 860 Income Sale of goods and services...... 293 554 234 927 Fees, fines and penalties ...... 322 345 497 416 Commonwealth revenue ...... 853 893 640 1 008 Other...... 4 287 2 774 2 609 3 542 Total income 5 755 4 566 3 980 5 893 Net cost of providing services 220 660 207 979 185 628 192 967

10.30 Sub-program information

Sub-program: 4.1 Family Support and Child Safety

Services provided to strengthen and support families to keep children and young people safe, nurtured and able to realise their potential. Assess family circumstances and risk to child’s safety. Provision of services to assist families to improve their capacity to manage their finances. Provision of emergency financial assistance, financial counselling, domestic violence assistance and anti-poverty preventative programs. Connecting families to services across government and within non-government agencies to address family need. Working intensively with families to prevent the placement of children into alternative care. Seeking court orders for the care and protection of children who are unable to be safely cared for by their families. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $67 067 000 $62 063 000 $60 814 000 $58 238 000

Performance Commentary The number of screened notifications in 2007-08 has increased by 12 per cent in comparison with the previous financial year. Contributing factors include increased community awareness arising from media interest in child protection and the increased complexity of family situations where issues such as domestic violence, substance misuse, financial difficulties, homelessness, and mental illness impact on a family’s ability to safely care for children. The ‘Keeping Them Safe’ reforms continue to build across government and across sector collaboration in supporting families and caring for children. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of child protection notifications screened 22 540 20 680 17 500 18 434 No. of child protection notifications 2 300 2 200 1 900 2 242 confirmed % of confirmed child protection notifications 21% 21% 22% 22% involving Aboriginal children and families % of children who were the subject of a 21% 21% 18% 20% confirmation of abuse during the previous year who were the subject of a subsequent confirmation within 12 months

10.31 Sub-program: 4.2 Guardianship and Alternative Care

Provision of case management and support services to children and young people under the Guardianship of the Minister. Provision of alternative care settings which promote safety, stability and ‘real family’ environments. Contracting with non-government service providers for home based care providers, stabilisation and treatment centres and small congregate care settings. Recruiting, training and supporting relative and kinship carers. Managing adoption processes to encourage success in family placements. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $106 425 000 $98 523 000 $78 031 000 $89 242 000

Performance Commentary The increase in the number of children placed under Guardianship of the Minister orders flows on from the increase in child protection notifications over the past two years, and is reflective of the increased complexity of family situations. The Rapid Response initiatives delivering services for children under Guardianship of the Minister is well supported across government. Social Inclusion funding for School Retention has delivered effective outcomes for Guardianship of the Minister youth disengaged from education. The number of children in home-based alternative care has increased, with increases in the number of children placed with their relatives or kin, and also increases in the number of children in foster care. There has been a significant increase over the last two to three years in the number of children in non-home based care (residential care) as the capacity of home-based care has not increased at the same rate as the demand for placements. Keeping Them Safe – In Our Care reforms are being implemented. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of children under the Guardianship of the 1 556 1 460 1 250 1 299 Minister until 18 years of age, as at 30 June No. of children under the Guardianship of the 480 460 450 492 Minister for up to 12 months as at the 30 June % of children under Guardianship of the 22% 24% 20% 23% Minister who are Aboriginal No. of placements made for alternative care 2 500 2 400 2 700 2 782 (excluding respite placements) No. of children in home based alternative care for whom a client payment was made as at 30 June:(a) • placed with relatives or kin 674 613 n.a. 553 • placed with foster carers 1 053 997 n.a. 914 • all placements 1 727 1 610 1 662 1 467 % of children in alternative care placed with 35% 34% 35% 33% relatives or kin No. of children in non-home based 203 206 183 211 alternative care at 30 June % of children exiting alternative care after 80% 78% 85% 80% less than 12 months who had three placements or less % of children exiting alternative care after 60% 56% 65% 55% more than 12 months who had three placements or less % of aboriginal children placed in 80% 76% 80% 78% accordance with the Aboriginal Child Placement Principle No. of adoption orders granted 34 39 72 49 No. of active foster carers at 30 June 900 865 850 845

Footnotes (a) Home based care performance indicator has been disaggregated into relative/ kinship care and foster care for this financial year, to provide context for the performance indicator of the proportion of children placed with relatives.

10.32

Sub-program: 4.3 Youth Justice

Provision of services to assist children and young people who have offended to positively re-engage with their community. Facilitating restitution to victims and communities as appropriate. Reducing the risk of offending and re-offending. Provision of secure care facilities for young people who are detained. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $40 765 000 $40 344 000 $39 592 000 $38 465 000

Performance Commentary The number of young people placed on community based orders has increased slightly this financial year. A focus on persistent and serious offenders has seen a reduction in young people’s second and subsequent contact with the youth justice system. Collaboration across government has resulted in the development of the youth justice strategy To Break the Cycle and provides the platform for further reform to the youth justice system. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of youth justice clients who had one or 720 750 600 712 more community based orders issued No. of youth justice clients who had one or 540 550 440 486 more secure youth training centre admissions No. of 10–12 year olds admitted to a secure 20 20 12 20 youth training centre No. of Aboriginal young people who had 155 160 160 163 one or more admission to a secure youth training centre % of sentences that are the second or 35% 35% 45% 45% subsequent sentences in the young person’s youth justice contact with Families SA % of sentences involving Aboriginal young 32% 35% 50% 46% people that are the second or subsequent sentence in the young person’s youth justice contact with Families SA

10.33 Sub-program: 4.4 Anti-Poverty Services

Providing services to assist families and vulnerable adults to improve their capacity to manage their finances. Provision of emergency financial assistance, financial counselling, domestic violence assistance and anti-poverty preventative programs. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $6 403 000 $7 049 000 $7 191 000 $7 022 000

Performance Commentary There has been a slight decline in the number of financial counselling consultations provided during 2007-08. The more significant reduction in the number of Emergency Financial Assistance payments provided is in part a reflection of the preferred approach of working with people to achieve sustained financial management, rather than to provide regular crisis-oriented payments. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of financial counselling consultations 22 000 22 000 25 500 24 451 provided No. of financial counselling consultations 4 400 4 100 5 200 4 856 provided to Aboriginal and/or Torrens Strait Islander clients No. of Emergency Financial Assistance 27 000 27 000 34 000 31 649 payments provided No. of Emergency Financial Assistance 6 500 6 550 8 000 7 472 payments provided to Aboriginal and/or Torrens Strait Islander clients No. of Domestic Violence Assistance 2 300 2 350 2 300 2 206 payments provided No. of Domestic Violence Assistance 520 550 520 490 payments provided to Aboriginal and/or Torrens Strait Islander clients

10.34 AGENCY: DEPARTMENT FOR FAMILIES AND COMMUNITIES

Program information

Program 5: Effective Business Practices

Description/Objective: To establish and maintain business practices that support delivery of South Australia’s Strategic Plan as it affects the portfolio, including ensuring timely decision making, improving administrative efficiency, increasing customer satisfaction and promoting sustainability.

To continue to build a capable, creative workforce that engages with our customers and partners to ensure effective service provision. Innovation and continuous improvement will be fostered and our infrastructure will support connected services.

Summary income statement

Program 5: Effective Business Practices 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 39 679 41 475 35 954 26 270 Supplies and services...... 40 250 38 560 37 429 37 506 Grants and subsidies ...... 5 898 8 628 9 041 14 283 Depreciation and amortisation...... 773 845 679 702 Other...... 2 200 587 333 416 Total expenses 88 800 90 095 83 436 79 177 Income Sale of goods and services...... 28 511 29 296 24 359 25 220 Commonwealth revenue ...... 390 — — — Other...... 3 691 5 507 3 123 180 Total income 32 592 34 803 27 482 25 400 Net cost of providing services 56 208 55 292 55 954 53 777

10.35 Sub-program information

Sub-program: 5.1 Business Development

Provide leadership, development and coordination of strategic reporting, policy development and advice. Undertake and manage research and analyse and disseminate corporate statistical data for the portfolio. Develop and deliver intervention and prevention strategies to increase the capacity of the agency to provide a safe working environment. Provide services across the portfolio through Department for Families and Communities’ College for Learning and Development to address learning and development needs of employees and develop with Human Resources a workforce plan that sustains the right mix of skills, experience, abilities and backgrounds. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $7 086 000 $8 069 000 $6 859 000 $6 985 000

Performance Commentary The College for Learning and Development became a Registered Training Organisation (RTO) in September 2006 and had two graduations during 2007-08 achieving 218 per cent above target. The induction program commenced in February 2007. Engagement of staff in learning by managers of all levels across the department exceeded targets, thus reflecting confidence by managers to undertake their roles and willingness to seek support. During 2008-09, the learning programs for managers will move to more advanced learning with some managers participating in a Diploma program. Priority has been given to providing educational and learning opportunities for managers and staff on the department’s performance partnerships policy framework. From January to April 2008, 269 employees have taken part in these briefings. The Customer Service Strategy Unit collated data from the existing departmental surveys conducted during 2006 and 2007. This highlighted the need for a more consistent approach to be implemented for future data collection. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual % of new ongoing employees who attended 65% 55% 85%(b) 46% corporate induction(a) No. of Executives that have participated in 35 35 35 35 the Executive Leadership Program No. of Emerging Leaders that have 44 44 25 25 participated in the Emerging Leadership Program No. of Managers that have participated in 210 350 180 295 Learning Programs(c) % of Performance Development Agreements 85% 20% 65% 6% completed (PSM Act only)(d) % of Aboriginal and Torres Strait Islander 4.5% 3.7% 4.0% 3.7% people employed in the department, spread across all classifications % of women in executive level positions 51% 51% 50% 51% % of people with disabilities employed in the 6.0% 5.0% 4.7% 4.0% department’s workforce % of our customers and clients report they 70% 65-70% 70% 54-88% are satisfied with our services No. of national qualifications completed by 610 653 300 210 staff through the College for Learning and Development(e)

Footnotes (a) This Indicator has been renamed from ‘% of new employees inducted’. It now relates to the new DFC Corporate Induction delivered by the College for Learning and Development in addition to worksite induction delivered to 100 per cent of employees. Induction commenced in February 2007. (b) Previously published figure based on different calculation method of counting all new staff, not just ongoing appointments. (c) Reduction in number of managers due to higher level qualifications being offered. (d) While significantly under target, this is largely due to systemic difficulties experienced by managers in recording this data onto human resources information system. This is being addressed through briefing sessions. (e) The College for Learning and Development became an RTO in September 2006 and only had one graduation during 2006-07.

10.36

Sub-program: 5.2 Business Services

Provide business services shared by the portfolio including financial services, legal services, information services, project management, risk management and audit, workforce management, payroll services, procurement and contracting, insurance services, workforce health and safety, internal and external customer strategy services. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $31 855 000 $27 478 000 $28 540 000 $22 412 000

Performance Commentary In 2007-08, a number of initiatives were undertaken to improve business services across the department. The increase in net cost between the 2006-07 Actual and 2007-08 Budget is primarily due to the integration of corporate services of the former Incorporated Government Disability Service Organisations into the department. The Project Management Office was established and developed the DFC Project Management Framework, affording a consistent project management approach across the department. Competency based project management training was developed in conjunction with the College for Learning and Development to support staff in developing accredited project management skills. Implementation of phase I of the DFC e-reference tool was completed in April 2008 providing a single authoritative source of online reference information containing procedures associated with service delivery and allowing staff to quickly and easily find information to help customers. Phase II will incorporate all remaining procedures and is scheduled for completion by December 2008. Progress has also been made on the web-based risk reporting tool, as implemented in March 2007. Contracting savings of 6 per cent of the total value of contracts were achieved across the department through streamlining procurement and business practices for greater efficiency and effectiveness. The Social Responsibility in Procurement policy was established to promote the achievement of positive social and environmental outcomes. Business continuity plans were completed for identified key areas to ensure the continuity of critical services and to minimise disruption in the event of a business interruption incident. The first phase of business continuity testing was undertaken during May — June 2008, with the full testing program to be completed during 2008-09. With the integration of corporate areas from the former disability health units into the department, processes have been further refined and streamlined. The DFC Australia Day Awards program continued in 2007-08 with over 200 staff being recognised for excellence in innovation and customer service.

10.37 Sub-program: 5.3 Infrastructure

Provide infrastructure to the portfolio including coordination of public building and technology capital program, fleet management, rents, electricity and other accommodation services. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $17 267 000 $19 745 000 $20 555 000 $24 380 000

Performance Commentary Office relocations within the CBD in accordance with the Strategic Accommodation Plan have been completed. A Strategic Facility Plan for Connected Service Centres is being developed for the long term implementation of Connected Service Centres across the state. The first DFC Connected Service Centre will be operational in Mount Barker in August 2008. A new government owned five star green building is being developed at Mount Gambier for a DFC Connected Service Centre accommodating Families SA, Housing SA and Disability SA at the one site. Presently, an interim connected office is successfully operating from the Mount Gambier Housing SA office whilst other functions are spread over two other sites. The relocation of residents from Strathmont Centre to the community under the Strathmont Centre Redevelopment and Community Living Project has continued and work has commenced on developing Business Case 2 for the relocation of the remaining 100 Strathmont residents to community based living. Sustainment works for remaining villas were continued. The Expression of Interest for the new Secure Youth Training Centre at Cavan has closed and submissions have been assessed. This is a Public Private Partnership (PPP) and a joint project with the Department for Correctional Services and Department of Health. The sustainment program at Magill Secure Care has continued. In 2007-08, a number of programs commenced that will improve energy efficiency throughout the department. This includes the Print Device Program which minimises the number of print devices; the implementation of an Information and Data Gathering system to track energy usage within the portfolio and the setting up of Green Pilot Programs to provide live examples for staff to follow in energy efficiencies including water consumption, waste management, travel and fleet management and green procurement. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Energy reduction 25% 22% 10% 19%

10.38 DEPARTMENT FOR FAMILIES AND COMMUNITIES

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Expenses Employee benefit expenses — Salaries, wages, annual and sick leave ...... 318 420 313 519 297 427 269 680 Long service leave ...... 9 904 8 406 8 244 6 699 Payroll tax ...... 17 678 18 008 16 179 14 903 Superannuation ...... 32 126 30 399 29 055 27 079 Other ...... 5 004 11 038 6 233 8 603 Supplies and services — General supplies and services ...... 156 880 156 070 153 349 135 030 Consultancy expenses ...... 1 588 1 542 683 492 Depreciation and amortisation expenses ...... 4 042 4 042 5 614 3 759 Grants and subsidies ...... 356 002 333 880 315 322 337 919 Intra government transfers ...... 283 308 279 985 270 051 274 402 Other expenses ...... 8 494 7 947 10 769 7 635

Total expenses 1 193 446 1 164 836 1 112 926 1 086 201

Income Commonwealth revenues ...... 281 015 278 717 273 696 255 664 Intra government transfers ...... 13 220 16 575 11 551 24 709 Other grants ...... — — — 69 Fees, fines and penalties ...... 322 345 748 415 Sales of goods and services ...... 117 670 113 932 102 110 93 579 Interest revenues ...... 527 605 155 31 Net gain or loss from disposal of assets ...... — — — 90 Resources received free of charge ...... — 4 351 57 181 Other income ...... 1 262 1 917 7 122 13 701

Total income 414 016 416 442 395 439 388 439

Net cost of providing services 779 430 748 394 717 487 697 762

Income from / Expenses to SA Government Income — Appropriation ...... 779 430 743 343 714 702 653 077 Other income ...... — 692 — 4 892

Net income from / expenses to SA Government 779 430 744 035 714 702 657 969

Net result before restructure(s) — -4 359 -2 785 -39 793

Net income from / expenses from administrative restructure(s) .. — 3 061 3 061 34 032

Net result after restructure(s) — -1 298 276 -5 761

10.39 DEPARTMENT FOR FAMILIES AND COMMUNITIES

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... 38 209 29 591 30 014 26 410 Receivables ...... 33 013 33 013 30 855 30 890 Inventories ...... 916 916 848 440 Financial assets ...... 1 531 1 531 1 542 — Other current assets ...... 243 243 678 179 Non-current assets class held for sale ...... 3 900 3 900 — 3 900

Total current assets 77 812 69 194 63 937 61 819

Non current assets Investment properties ...... 1 139 1 139 — 1 139 Land and improvements ...... 206 130 204 894 207 950 188 051 Plant and equipment ...... 17 554 7 387 28 249 9 174 Other non-current assets ...... — — 157 —

Total non-current assets 224 823 213 420 236 356 198 364

Total assets 302 635 282 614 300 293 260 183

Liabilities Current liabilities Payables ...... 20 032 20 032 26 714 18 433 Employee benefits — Salaries and wages ...... 6 796 6 796 5 469 5 711 Annual leave ...... 25 614 25 353 16 203 22 889 Long service leave ...... 13 502 12 416 9 777 10 918 Superannuation ...... — — 1 124 — Other ...... 1 038 1 038 3 358 1 038 Short-term provisions ...... 7 980 7 295 6 241 6 037 Other current liabilities ...... 1 990 1 990 5 661 1 990

Total current liabilities 76 952 74 920 74 547 67 016

Non current liabilities Long-term borrowings ...... 285 285 285 285 Long-term employee benefits — Long service leave ...... 46 087 43 551 48 618 37 152 Other ...... — — 3 635 — Long-term provisions ...... 18 641 18 085 15 283 16 176

Total non-current liabilities 65 013 61 921 67 821 53 613

Total liabilities 141 965 136 841 142 368 120 629

Net assets 160 670 145 773 157 925 139 554

Equity Contributed capital ...... 41 888 26 991 26 991 19 474 Retained earnings ...... 51 267 51 267 73 406 52 565 Asset revaluation reserve ...... 67 515 67 515 57 528 67 515

Total equity 160 670 145 773 157 925 139 554

Balances as at 30 June end of period.

10.40 DEPARTMENT FOR FAMILIES AND COMMUNITIES

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... 19 474 67 515 52 565 139 554 Adjustments ...... — — — —

Restated balance at 30 June 2007 19 474 67 515 52 565 139 554

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ...... — — -1 298 -1 298

Total recognised income and expense for 2007-08 — — -1 298 -1 298

Equity contributions from SA Government ...... 7 517 — — 7 517 Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 26 991 67 515 51 267 145 773

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2008-09 ... — — — — Net result after restructure for 2008-09 ...... — — — —

Total recognised income and expense for 2008-09 — — — —

Equity contributions from SA Government ...... 14 897 — — 14 897 Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 41 888 67 515 51 267 160 670

10.41 DEPARTMENT FOR FAMILIES AND COMMUNITIES

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash outflows Employee benefit payments ...... 379 437 378 245 354 013 322 473 Supplies and services ...... 158 468 157 612 154 032 137 190 Borrowing costs ...... — — — 13 Grants and subsidies ...... 356 002 333 880 315 322 337 919 Net GST paid ...... — — — 52 142 Intra government transfers ...... 283 308 279 985 270 051 274 402 Other payments ...... 7 065 6 571 9 392 16 164

Cash used in operations 1 184 280 1 156 293 1 102 810 1 140 303

Cash inflows Taxation ...... — — — 117 Intra government transfers ...... 13 220 16 575 11 551 24 709 Commonwealth receipts ...... 281 015 278 717 273 696 255 664 Other grants ...... — — — -7 251 Fees, fines and penalties ...... 322 345 748 415 Sales of goods and services ...... 117 670 113 932 102 110 93 761 Interest received ...... 527 605 155 295 Dividends received ...... — — 5 000 5 000 Net GST received ...... — — — 91 331 Other receipts ...... 1 262 1 917 2 121 7 738

Cash generated from operations 414 016 412 091 395 381 471 779

SA GOVERNMENT: Appropriation ...... 779 430 743 343 714 702 653 077 Other receipts ...... — 692 — 4 892

Net cash provided by SA Government 779 430 744 035 714 702 657 969

Net cash provided by (+) / used (-) in operating activities 9 166 -167 7 273 -10 555

INVESTING ACTIVITIES: Cash outflows Purchase of property, plant and equipment ...... 17 475 6 855 14 130 4 057

Cash used in investing activities 17 475 6 855 14 130 4 057

Cash inflows Proceeds from sale of property, plant and equipment ...... 2 030 1 910 1 700 5 248

Cash generated from investing activities 2 030 1 910 1 700 5 248

Net cash provided by (+) / used in (-) investing activities -15 445 -4 945 -12 430 1 191

10.42 DEPARTMENT FOR FAMILIES AND COMMUNITIES

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 FINANCING ACTIVITIES: Cash inflows Capital contributions from SA Government ...... 14 897 7 517 7 517 8 711 Proceeds from restructuring activities ...... — 776 776 —

Cash generated from financing activities 14 897 8 293 8 293 8 711

Net cash provided by (+) / used in (-) financing activities 14 897 8 293 8 293 8 711

Net increase (+) / decrease (-) in cash equivalents 8 618 3 181 3 136 -653

Cash and cash equivalents at the start of the financial year 29 591 26 410 26 878 27 063

Cash and cash equivalents at the end of the financial year 38 209 29 591 30 014 26 410

10.43 ADMINISTERED ITEMS FOR THE DEPARTMENT FOR FAMILIES AND COMMUNITIES

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Income from SA Government Income — Appropriation ...... 139 801 125 792 126 181 106 642

Net income from / expenses to SA Government 139 801 125 792 126 181 106 642

Income from other sources Intra government transfers ...... 9 406 10 895 10 895 9 345 Other grants ...... 110 110 110 73 Sales of goods and services ...... — — — 43 Interest revenues ...... 28 28 28 154 Other income ...... 4 4 4 152

Total income from other sources 9 548 11 037 11 037 9 767

Total income 149 349 136 829 137 218 116 409

Expenses Employee benefit expenses — Salaries, wages, annual and sick leave ...... 250 246 232 226 Payroll tax ...... — — — 1 Other ...... — — — 11 Supplies and services — General supplies and services ...... 934 924 924 1 328 Consultancy expenses ...... — — — 96 Grants and subsidies ...... 142 508 134 355 133 775 127 390 Intra government transfers ...... 6 460 6 521 2 255 667

Total expenses 150 152 142 046 137 186 129 719

Net result -803 -5 217 32 -13 310

10.44 ADMINISTERED ITEMS FOR THE DEPARTMENT FOR FAMILIES AND COMMUNITIES

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... 2 852 3 655 18 793 8 872 Receivables ...... 19 19 — 19 Other current assets ...... 2 264 2 264 1 810 2 264

Total current assets 5 135 5 938 20 603 11 155

Total assets 5 135 5 938 20 603 11 155

Liabilities Current liabilities Payables ...... 2 863 2 863 1 558 2 863 Short-term borrowings ...... 19 19 18 19 Employee benefits — Salaries and wages ...... 9 949 Other current liabilities ...... 2 222

Total current liabilities 2 893 2 893 1 582 2 893

Total liabilities 2 893 2 893 1 582 2 893

Net assets 2 242 3 045 19 021 8 262

Equity Retained earnings ...... 2 242 3 045 19 021 8 262

Total equity 2 242 3 045 19 021 8 262

Balances as at 30 June end of period.

10.45 ADMINISTERED ITEMS FOR THE DEPARTMENT FOR FAMILIES AND COMMUNITIES

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... — — 8 262 8 262 Adjustments ...... — — — —

Restated balance at 30 June 2007 — — 8 262 8 262

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ...... — — -5 217 -5 217

Total recognised income and expense for 2007-08 — — -5 217 -5 217

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 — — 3 045 3 045

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2008-09 ... — — — — Net result after restructure for 2008-09 ...... — — -803 -803

Total recognised income and expense for 2008-09 — — -803 -803

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 — — 2 242 2 242

10.46 ADMINISTERED ITEMS FOR THE DEPARTMENT FOR FAMILIES AND COMMUNITIES

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash inflows Intra government transfers ...... 9 406 10 895 10 895 9 345 Other grants ...... 110 110 110 73 Sales of goods and services ...... — — — 43 Interest received ...... 28 28 28 154 Other receipts ...... 4 4 4 143

Cash generated from operations 9 548 11 037 11 037 9 758

Cash outflows Employee benefit payments ...... 250 246 232 237 Supplies and services ...... 24 690 23 567 23 970 6 145 Grants and subsidies ...... 118 752 111 712 110 729 121 810 Intra government transfers ...... 6 460 6 521 2 255 667

Cash used in operations 150 152 142 046 137 186 128 859

SA GOVERNMENT: Appropriation ...... 139 801 125 792 126 181 106 642

Net cash provided by SA Government 139 801 125 792 126 181 106 642

Net cash provided by (+) / used in (-) operating activities -803 -5 217 32 -12 459

FINANCING ACTIVITIES: Cash inflows Proceeds from restructuring activities ...... — — — 137

Cash generated from financing activities — — — 137

Net cash provided by (+) / used in (-) financing activities — — — 137

Net increase (+) / decrease (-) in cash equivalents -803 -5 217 32 -12 322

Cash and cash equivalents at the start of the financial year 3 636 8 853 18 743 21 175

Cash and cash equivalents at the end of the financial year 2 833 3 636 18 775 8 853

10.47 AGENCY: DEPARTMENT FOR FAMILIES AND COMMUNITIES

Financial Commentary — Major resource variations

Income statement — Controlled

Factors contributing to the variance in Total expenses between the 2007-08 Estimated Result and 2008-09 Budget include:

• $19.5 million additional reimbursement of Land Taxes, Income Taxes and Stamp Duties paid by the South Australian Housing Trust under the Tax Equivalent Regime;

• $10.1 million for additional Commonwealth State and Territory Disability Agreement expenditure;

• $10 million additional expenditure relating to initiatives to provide increased support for vulnerable families and to address the growing demand for care placements as part of the reforms proposed in Keeping Them Safe – In Our Care;

• $5.5 million in additional salaries and wages expenditure due to the impact of new Enterprise Bargaining outcomes;

• $4.0 million additional expenditure has been provided to the department relating to building capacity in the Alternative Care system to address the anticipated underlying growth in the number of children and young people coming into care;

• $3.2 million reduction in expenditure relating to the savings measures announced in the 2008-09 Budget;

• $2.4 million additional expenditure initiatives relating to the recommendations outlined in the To Break the Cycle report; and

• the impact of inflation adjustments, provision adjustments, deferred expenditure and prior year budget decisions.

10.48

The variance in Total income between the 2007-08 Estimated Result and the 2008-09 Budget includes increases in Commonwealth funding, offset by the conclusion of the Fringe Benefit Tax (FBT) Transitional Grant, as outlined in the following table:

2008-09 2007-08 Budget Estimated result $000 $000

Home and Community Care 92 005 85 407 Commonwealth - State Housing Agreement - CSHA Base Funds 57 516 56 670 - Aboriginal Housing 8 936 8 804 - Crisis Accommodation Program 3 209 3 162 - Community Housing Program 5 180 5 103 Commonwealth State and Territory Disability Agreement 81 785 70 378 Supported Accommodation Assistance Program 17 704 17 263 Aged Care Assessment Program 6 474 6 317 Residential Aged Care Services 3 363 3 281 Younger People with a disability living in Residential Aged Care 2 112 1 056 Veteran Home Care Program 1 416 1 382 Refugee Services Programs 853 893 Disability Supported Accommodation — 8 090 FBT Transitional Grant — 10 210 Other 462 701 Total Commonwealth Revenue 281 015 278 717

The Department of the Premier and Cabinet will also provide $1.2 million to the department in 2008-09 to establish a Community Protection Panel and rehabilitation program in response to the recommendations outlined in the To Break the Cycle report. In addition, indexation adjustments for budgeted receipts including anticipated increases in Fees and Charges and the impact of prior year decisions will also contribute to the increase in the 2008-09 Budget.

These increases are offset by the impact of once-off funding received during 2007-08 for Tregenza Avenue Aged Care Services, the Supported Accommodation Demonstration project, insurance payout and programs for Aboriginal and Torres Strait Islanders.

The transfer of Metropolitan Domiciliary Care from the Department of Health resulted in a once-off gain of approximately $7.4 million that is included in the 2007-08 Estimated Result.

Balance sheet — Controlled

The variance in assets and liabilities primarily relate to projected movements in employee benefit liabilities and movement in fixed assets due to the capital program.

Statement of changes in equity — Controlled

The increase in equity in the 2008-09 Budget represents the impact of the equity contributions from government.

10.49

Cash flow statement — Controlled

The major variations in the Cash flow statement are generally caused by the same factors that give rise to variations in the Income statement but are also affected by movements in the Balance sheet. Other variations are attributable to the investing program and timing differences between the recognition of revenue and expenditure under accrual accounting conventions.

Income statement — Administered Items

The variation between the 2007-08 Estimated Result and the 2008-09 Budget reflects $8.1 million additional concession funding to reflect rising water prices.

Balance sheet — Administered Items

No major variations.

Statement of changes in equity — Administered Items

The decrease in equity in the 2008-09 Budget represents the impact of the 2008-09 net result (refer to Income statement).

Cash flow statement — Administered Items

Major resource variations in the Cash flow statement are generally caused by the same factors that give rise to variations in the Income statement. Other variations are attributed to timing differences between the recognition of income and expenditure under accrual accounting convention shown in the income statement.

Additional Information for Administered Items

Detailed information on administered items is included in the following table.

10.50 Additional Information for Administered Items Department for Families and Communities

Cash flow statement

2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result $000 $000 $000 $000 CASH FLOWS FROM: Operating Activities Receipts Intra-government transfers — Gamblers Rehabilitation Fund ...... 5 406 5 345 5 345 5 345 Charitable and Social Welfare Fund ...... 4 000 4 000 4 000 4 000 Concessions ...... — 1 550 1 550 — Grants — Other — Gamblers Rehabilitation Fund ...... 110 110 110 110 Concessions ...... — — — 73 State Emergency Relief Fund ...... — — — 33 Sales of goods and services — Charitable and Social Welfare Fund ...... — — — 43 Interest Received — Supported Residential Facilities Fund...... 5 55 1 Gamblers Rehabilitation Fund ...... — — — 151 State Emergency Relief Fund ...... 23 23 23 2 Other Receipts — Supported Residential Facilities Fund...... 4 44 — State Government Appropriation ...... 139 801 125 792 126 181 106 642 Total operating receipts 149 349 136 829 137 218 116 400

Payments Employee payments — Minister’s Salary...... 250 246 232 226 Charitable and Social Welfare Fund ...... — — — 11 Supplies and services — Gamblers Rehabilitation Fund ...... 752 742 742 1 139 Charitable and Social Welfare Fund ...... 182 182 182 193 Grants and subsidies — Community Service Obligations...... 11 722 11 304 11 304 9 801 Gamblers Rehabilitation Fund ...... 5 453 5 610 4 713 4 512 Charitable and Social Welfare Fund ...... 3 818 3 818 3 818 5 753 Concessions ...... 121 515 113 537 113 940 107 130 State Emergency Relief Fund ...... — 86 — 88

10.51 Additional Information for Administered Items Department for Families and Communities

Cash flow statement

2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result $000 $000 $000 $000 Intra-government transfers — Concessions ...... 2 311 2 255 2 255 — Gamblers Rehabilitation Fund ...... 146 296 — — Community Service Obligations...... 4 003 3 970 — — Other payments — Concessions ...... — —— 4 Gamblers Rehabilitation Fund ...... — —— 2 Total operating payments 150 152 142 046 137 186 128 859 Net cash provided by operating activities -803 -5217 32 -12 459 Net cash provided by (+) / used in (-) financing activities — — — 137 Net Increase (+) / decrease (-) in cash held -803 -5 217 32 -12 322 Opening cash balance as at 1 July 3 636 8 853 18 743 21 175 Closing cash balance as at 30 June 2 833 3 636 18 775 8 853

10.52

10.53 TABLE OF CONTENTS

AGENCY: SOUTH AUSTRALIAN HOUSING TRUST

Objective ...... 10.55

Targets / Highlights...... 10.55

Program Net Cost of Services Summary...... 10.56

Investing Payments Summary...... 10.56

Program Information — includes description/objective, summary income statement, sub-program information including performance criteria

1. Affordable Housing Choices and Communities that Prosper ...... 10.57

2. High Need Housing ...... 10.60

Financial Statements

Income statement ...... 10.62

Balance sheet...... 10.63

Statement of changes in equity ...... 10.65

Cash flow statement...... 10.66

Financial Commentary ...... 10.68

10.54 PORTFOLIO: FAMILIES AND COMMUNITIES

AGENCY: SOUTH AUSTRALIAN HOUSING TRUST

Objective

The South Australian Housing Trust (SAHT) provides services to assist South Australians to secure and maintain affordable and appropriate housing.

2008-09 Targets / 2007-08 Highlights

Targets 2008-09 Highlights 2007-08

Objective 1: Affordable housing choices and communities that Objective 1: Affordable housing choices and communities that prosper prosper • Continue the Affordable Homes Program by targeting sales to • Inclusion of 15 per cent affordable housing in new significant low and moderate income earners, public housing tenants and developments within government land releases affordable housing providers • Achieved the targeted sale of 464 public housing dwellings • Increase the supply of affordable housing through partnerships under the Affordable Homes Program, realising in excess of and new housing developments, including new affordable the revenue target of $66.7 million and maximising sales to private rental through the proposed National Rental public and community housing tenants and other low to Affordability Scheme moderate income earners • Expand development and implementation of the Safe Tracks • Progressed building a range of affordable housing products in Strategy new housing developments and through partnerships • Commence a review of the Housing Improvement Act 1940 • Continued redevelopment of public housing estates through including consultation with key stakeholders on roles, urban renewal programs and other smaller scale developments responsibilities and powers under the Act • Increased Aboriginal housing stock in remote areas by • Contribute to the Playford North Urban Renewal Project to approximately 20 housing outcomes deliver whole of government outcomes for Adelaide’s outer • Progressed the delivery of an integrated whole of government northern suburbs approach to social and infrastructure planning and delivery in Objective 2: High need housing regional and remote areas • Continue to target housing to those in greatest need by: • Progressed and commenced an estimated 124 new community housing dwellings and transferred an additional 46 suitable − increasing options for homeless people and by providing public housing dwellings to the community housing program 50 additional properties per year for the Housing SA Disability Housing Program; and Objective 2: High need housing − allocating additional properties to both government and • Implemented a new Housing SA service delivery model based non-government organisations that service the highest on offering the full continuum of housing options and needs groups in the community. coordinating effective packages of support for Housing SA • Capital development of a Foyer partnership project that links customers with high needs accommodation to education, training and employment • Improved access for Aboriginal people to housing and housing services through the implementation of the new Housing SA service delivery model • Continued to target housing to those in greatest need by increasing options for homeless people and by providing additional properties for the Housing SA Disability Housing Program • Worked collaboratively across portfolios to sustain public and private tenancies • Developed and implemented new Disruptive Behaviour Policy and Guidelines that became effective from February 2008 • Implemented the government’s housing reform objectives • Expanded Street to Home service to cover the wider metropolitan area • Provided 58 additional rental dwellings to the community housing sector for high needs South Australians

10.55 Program net cost of services summary

Net Cost of Services 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Program $000 $000 $000 $000

1. Affordable Housing Choices and Communities that Prosper ...... 163 906 168 323 145 583 148 771 2. High Need Housing...... 127 301 111 048 110 607 104 774 Total 291 207 279 371 256 190 253 545

The net cost of the programs exclude Intra-government transfer revenue that is received from the Department for Families and Communities (DFC). All grant funds provided by the State Government and the Commonwealth are received by DFC and then transferred to SAHT. The net cost of DFC’s programs includes corresponding revenues and expenses as appropriate.

The Aboriginal Housing Authority (AHA) and South Australian Community Housing Authority (SACHA) became part of SAHT effective 1 July 2007. All financials have been adjusted accordingly to present consolidated results for these entities.

Investing payments summary

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Investments $000 $000 $000 $000 Annual Programs Public Housing Capital Maintenance ...... 22 100 19 155 21 500 13 829 Public Housing Construction and Redevelopment...... 168 977 127 482 165 375 110 340 SAHT Management Assets ...... 6 610 5 934 5 850 825 Crisis Accommodation Program ...... 10 043 2 796 4 796 1 434 Aboriginal Housing Capital Programs...... 5 674 3 198 4 463 4 889 Accounting Treatment — Selling Costs ..... — — — 3 652 Total Annual Programs 213 404 158 565 201 984 134 969 Total Investing Payments 213 404 158 565 201 984 134 969

10.56 AGENCY: SOUTH AUSTRALIAN HOUSING TRUST

Program Information

Program 1: Affordable Housing Choices and Communities that Prosper

Description/Objective: Provision of housing services to people in South Australia.

Summary income statement

Program 1: Affordable Housing Choices 2008-09 2007-08 2007-08 2006-07 and Communities that Prosper Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Supplies and services...... 150 287 148 530 136 899 130 877 Grants and subsidies ...... 19 933 32 052 13 012 19 273 Depreciation and amortisation...... 45 239 44 042 46 044 43 763 Other...... 129 960 120 339 121 943 119 524 Total expenses 345 419 344 963 317 898 313 437 Income Sale of goods and services...... 148 120 147 006 145 023 138 130 Fees, fines and penalties ...... 256 250 251 283 Commonwealth revenue ...... 2 405 2 705 802 1 026 Other...... 30 732 26 679 26 239 25 227 Total income 181 513 176 640 172 315 164 666 Net cost of providing services 163 906 168 323 145 583 148 771

10.57 Program performance

Program: 1 Affordable Housing Choices and Communities that Prosper(a)

Services to assist eligible people to secure and maintain affordable and appropriate housing, including management of public, Aboriginal and community housing tenancies, management of public and community housing assets and provision of private rental assistance. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of program $163 906 000 $168 323 000 $145 583 000 $148 771 000

Performance Commentary The net cost of this program is determined by allocating SAHT’s revenues and expenses across its programs. Variations in these items therefore affect the net cost calculations. Major variations are discussed in the Financial Commentary section. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of tenantable community dwellings as at 4 718 4 559 4 559 4 405 30 June No. of tenantable public dwellings as at 45 405 46 066 46 157 46 787 30 June Total number of houses purchased and 444 444(b) 526 540 constructed No. of affordable rental properties that 200 241 200 87 Affordable Housing Innovations Fund has generated(c) Total value of rent subsidies $178.6m $176.9m $162.6m(d) $160.9m(d) Average rental subsidy per household $83 $79 $81 $76 per week % of rent forgone as total rental income 44.9% 44.6% 42.1%(d) 42.8%(d) Total number of house sales 800(e) 473 487(e) 242 Total value of house sales $123.4m(f) $83.8m $77.8m(f) $36.3m % houses sold through Property Locator to 47.5%(g) 35.9% 38.0% n.a.(h) low to moderate income earners Total number of property upgrades 719 697(j) 861(k) 631 completed(i) Average cost – total property upgrades(l) $39 949(m) $26 322 $25 810(m) $22 798

Average cost – total new construction $140 000(m) $119 280 $119 280(m) $104 493 No. of bonds provided to enable access to the 12 000 11 346 11 700 12 051 private rental market Average value of bond assistance provided to $641 $613 $600(n) $579 enable access to the private rental market No. of other financial assistance services 12 000 11 000 10 300(n) 10 704 provided to low income customers to access the private rental market Average value of assistance provided to low $240 $231 $203(n) $196 income customers to access the private rental market(o)

Footnotes (a) Previously reported Program 1of the former Aboriginal Housing Authority and the Department for Families and Communities’ sub-program 1.3, Community Housing and sub-program 1.4, Secretariat and Other Housing Services and Grants included in this sub-program. (b) The reduction in the number of houses purchased and constructed is as a result of the timing of building completions. (c) Actual outcomes are dependent upon the number and quality of partner responses to an expression of interest process. (d) Figures have been recast to combine the SAHT and AHA. continued

10.58 Program: 1 Affordable Housing Choices and Communities that Prosper(a) continued

Footnotes (e) Increasing numbers of annual sales is as a result of the Affordable Homes Program. (f) The total value of house sales is proportional to the number of houses sold. (g) It is anticipated that the number of properties sold via the Property Locator will increase as a result of the Affordable Homes Program. (h) Property Locator was not launched until August 2007. (i) Numbers of property upgrades completed and average costs are the total of public, Aboriginal and community housing. (j) Staff movement, procurement delays and lead up times required to deliver medium density site works upgrades have affected both the ability to spend and the timing of spending on maintenance capital programs. As a result, projected spending on capital programs has not occurred, resulting in a reduced target for property upgrades. (k) This figure includes public, Aboriginal and community housing programs. Previously reported results have not included Aboriginal housing upgrade information as this was not available. (l) Property upgrade costs for Westwood urban renewal are not included as expenditure is by Urban Pacific not Housing SA. (m) Increased average cost of construction and upgrade is attributed to the increase in contract prices in accordance with industry rates and industrial award rates. (n) 2007-08 Target revised in August 2007 based on 2006-07 Actuals becoming available at that time. (o) The Private Rental Assistance Program is demand driven.

10.59 AGENCY: SOUTH AUSTRALIAN HOUSING TRUST

Program Information

Program 2: High Need Housing

Description/Objective: Provision of housing services to people with high needs in South Australia.

Summary income statement

Program 2: High Need Housing 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Supplies and services...... 108 991 110 190 110 441 107 894 Grants and subsidies ...... 22 183 8 879 17 287 12 655 Depreciation and amortisation...... 30 463 29 656 27 654 26 453 Other...... 82 693 76 128 77 427 75 674 Total expenses 244 330 224 853 232 809 222 676 Income Sale of goods and services...... 94 719 94 000 99 699 95 024 Fees, fines and penalties ...... 171 167 167 189 Commonwealth revenue ...... 1 603 1 803 3 206 4 102 Other...... 20 536 17 835 19 130 18 587 Total income 117 029 113 805 122 202 117 902 Net cost of providing services 127 301 111 048 110 607 104 774

10.60 Program performance

Program: 2 High Need Housing(a)

Services to assist people with high needs to secure and maintain affordable and appropriate housing, including management of public and Aboriginal housing tenancies, management of public housing assets, provision of private rental assistance, and funding and regulation of high need community housing. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of program $127 301 000 $111 048 000 $110 607 000 $104 774 000

Performance Commentary The net cost of this program is determined by allocating SAHT’s revenues and expenses across its programs. Variations in these items therefore affect the net cost calculation. Major variations are discussed in the Financial Commentary section. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of Category 1 and 2 applications 2 074 2 066 n.a.(c) 2 563 allocated to housing(b) % of Category 1 and 2 applicants allocated to 78% 82% 81%(e) 81% housing to total allocations(b) % of new properties built to adaptable 85% 95% 85% 95% standards(d) No. of modifications to houses to enable 3 840 3 841 3 686(e) 3 691 people with a disability to be independent in the community Value of modifications to houses to enable $3.3m $3.1m $3.1m(e) $3.0m people with a disability to be independent in the community No. of houses provided to Aboriginal 20 20 20 18 Community Housing Program No. of Aboriginal Community Housing 75 72 70 65 Program property upgrades Average cost – Aboriginal Community $100 000 $91 537 $90 000 $87 236 Housing Program property upgrades Average cost – Aboriginal Community $340 000 $310 000 $300 000 $306 517 Housing Program new construction No. of houses dedicated to Disability 346(f) 296 295(f) 252 Housing Program (DHP) No. of houses dedicated to the Supported 1 190 1 140 1 150 1 084 Tenancy Scheme (STS) % of customers provided with private rental 31.1% 32.5% 32.0% 30.3% assistance who identify with special and high needs

Footnotes (a) Previously reported Program 2 of the former Aboriginal Housing Authority and the Department for Families and Communities’ sub-program 2.2, High Need Public Housing and Private Rental Assistance, sub-program 2.3, High Need Aboriginal Housing and sub-program 2.4, High Need Community Housing. (b) Category 1 and 2 customers are considered to have the most urgent need. Does not include community housing. (c) A target for combined public and Aboriginal housing Category 1 and 2 allocations was not set for 2007-08 as this was prior to the government’s housing reform. (d) Housing SA continues to perform above the 75 per cent target for the percentage of new properties built to adaptable standards. (e) Figures have been recast to combine the SAHT and AHA. (f) 200 additional properties over four years will be dedicated to Housing SA’s Disability Housing Program as announced by the State Government in December 2006.

10.61 SOUTH AUSTRALIAN HOUSING TRUST

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Expenses Supplies and services — General supplies and services ...... 258 688 258 144 246 764 238 539 Consultancy expenses ...... 590 576 576 232 Depreciation and amortisation expenses ...... 75 702 73 698 73 698 70 216 Borrowing costs ...... 44 382 46 071 47 913 48 531 Grants and subsidies ...... 42 116 34 621 26 833 19 530 Intra government transfers ...... — 6 310 3 466 12 398 Other expenses ...... 168 271 150 396 151 457 146 667

Total expenses 589 749 569 816 550 707 536 113

Income Commonwealth revenues ...... 4 008 4 508 4 008 5 128 Intra government transfers ...... 257 621 252 074 244 124 228 975 Other grants ...... — — — -105 Fees, fines and penalties ...... 427 417 418 472 Sales of goods and services ...... 242 839 241 006 244 722 233 154 Interest revenues ...... 3 148 4 978 4 978 8 039 Net gain or loss from disposal of assets ...... 42 434 33 858 34 964 29 983 Resources received free of charge ...... — — — 171 Other income ...... 5 686 5 678 5 427 5 726

Total income 556 163 542 519 538 641 511 543

Net cost of providing services 33 586 27 297 12 066 24 570

Net result -33 586 -27 297 -12 066 -24 570

10.62 SOUTH AUSTRALIAN HOUSING TRUST

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... 116 973 146 694 73 566 122 392 Receivables ...... 15 478 16 210 18 014 16 945 Inventories ...... 60 753 60 753 70 930 60 753 Other current assets ...... 99 99 6 360 100 Non-current assets class held for sale ...... 20 223 20 223 2 799 20 223

Total current assets 213 526 243 979 171 669 220 413

Non current assets Land and improvements ...... 7 643 581 7 525 217 7 407 329 7 155 315 Plant and equipment ...... 7 041 4 046 8 895 1 051 Heritage assets ...... — — 3 083 — Intangible assets ...... 8 759 8 759 7 454 8 759 Other non-current assets ...... 846 846 727 1 915

Total non-current assets 7 660 227 7 538 868 7 427 488 7 167 040

Total assets 7 873 753 7 782 847 7 599 157 7 387 453

Liabilities Current liabilities Payables ...... 39 703 37 736 36 853 36 184 Short-term borrowings ...... 91 359 88 803 23 384 22 709 Employee benefits — Salaries and wages ...... — — 87 — Annual leave ...... — — 349 — Long service leave ...... — — 123 — Superannuation ...... — — 1 490 — Other ...... — — 45 47 Short-term provisions ...... 2 874 2 874 2 204 2 878 Other current liabilities ...... 8 286 8 286 8 708 8 286

Total current liabilities 142 222 137 699 73 243 70 104

Non current liabilities Long-term borrowings ...... 641 108 732 466 793 928 816 558 Long-term employee benefits — Superannuation ...... — — 17 354 — Long-term provisions ...... 116 116 116 116 Other non-current liabilities ...... 5 239 5 688 5 671 23 749

Total non-current liabilities 646 463 738 270 817 069 840 423

Total liabilities 788 685 875 969 890 312 910 527

Net assets 7 085 068 6 906 878 6 708 845 6 476 926

10.63 SOUTH AUSTRALIAN HOUSING TRUST

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Equity Retained earnings ...... 1 558 282 1 553 868 1 531 977 1 543 165 Asset revaluation reserve ...... 5 526 786 5 353 010 5 176 868 4 933 761

Total equity 7 085 068 6 906 878 6 708 845 6 476 926

Balances as at 30 June end of period.

10.64 SOUTH AUSTRALIAN HOUSING TRUST

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... — 4 933 761 1 543 165 6 476 926 Adjustments ...... — — — —

Restated balance at 30 June 2007 — 4 933 761 1 543 165 6 476 926

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — 419 249 — 419 249 Net changes in reserves ...... — — 38 000 38 000

Net income/expense recognised directly in equity for 2007-08 ... — 419 249 38 000 457 249 Net result after restructure for 2007-08 ...... — — -27 297 -27 297

Total recognised income and expense for 2007-08 — 419 249 10 703 429 952

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 — 5 353 010 1 553 868 6 906 878

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — 173 776 — 173 776 Net changes in reserves ...... — — 38 000 38 000

Net income/expense recognised directly in equity for 2008-09 ... — 173 776 38 000 211 776 Net result after restructure for 2008-09 ...... — — -33 586 -33 586

Total recognised income and expense for 2008-09 — 173 776 4 414 178 190

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 — 5 526 786 1 558 282 7 085 068

10.65 SOUTH AUSTRALIAN HOUSING TRUST

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash outflows Employee benefit payments ...... — 2 189 1 432 1 113 Supplies and services ...... 256 932 255 656 245 033 232 723 Borrowing costs ...... 44 760 45 441 46 681 48 588 Grants and subsidies ...... 42 116 34 621 26 833 19 530 Net GST paid ...... — — — 13 594 Intra government transfers ...... — 6 310 3 466 12 398 Other payments ...... 150 714 148 811 133 949 124 688

Cash used in operations 494 522 493 028 457 394 452 634

Cash inflows Intra government transfers ...... 257 621 252 074 244 124 228 975 Commonwealth receipts ...... 4 008 4 508 4 008 5 128 Other grants ...... — — — -105 Fees, fines and penalties ...... 427 417 418 472 Sales of goods and services ...... 236 318 234 534 238 250 228 505 Interest received ...... 3 148 4 978 4 978 7 947 Net GST received ...... — — — 12 716 Other receipts ...... 5 685 5 427 5 427 3 214

Cash generated from operations 507 207 501 938 497 205 486 852

Net cash provided by (+) / used (-) in operating activities 12 685 8 910 39 811 34 218

INVESTING ACTIVITIES: Cash outflows Purchase of property, plant and equipment ...... 213 404 158 565 201 984 134 969 Advances paid ...... — — — 5

Cash used in investing activities 213 404 158 565 201 984 134 974

Cash inflows Proceeds from sale of property, plant and equipment ...... 259 800 191 954 185 060 140 375 Repayment of advances ...... — — — 16

Cash generated from investing activities 259 800 191 954 185 060 140 391

Net cash provided by (+) / used in (-) investing activities 46 396 33 389 -16 924 5 417

10.66 SOUTH AUSTRALIAN HOUSING TRUST

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 FINANCING ACTIVITIES: Cash outflows Repayment of borrowings ...... 88 802 37 040 21 959 37 165

Cash used in financing activities 88 802 37 040 21 959 37 165

Cash inflows Proceeds from borrowings ...... — 19 043 — —

Cash generated from financing activities — 19 043 — —

Net cash provided by (+) / used in (-) financing activities -88 802 -17 997 -21 959 -37 165

Net increase (+) / decrease (-) in cash equivalents -29 721 24 302 928 2 470

Cash and cash equivalents at the start of the financial year 146 694 122 392 72 638 119 922

Cash and cash equivalents at the end of the financial year 116 973 146 694 73 566 122 392

10.67 AGENCY: SOUTH AUSTRALIAN HOUSING TRUST

Financial Commentary — major variations

The following commentary relates to variations between the 2007-08 Estimated Result and 2008-09 Budget.

Income statement — Controlled

The significant increase in Total expenses of $19.9 million between the 2007-08 Estimated Result and 2008-09 Budget is mainly due to:

• an increase in Other expenses associated with an increase in land tax as a consequence of increases in property values;

• an increase in Grants and subsidies resulting from $15.5 million of carryovers, partially offset by a number of once-off grants in 2007-08; and

• a decrease in Intra-government transfers, being the Equity Start subsidy payable to HomeStart Finance.

Total income is projected to increase by $13.6 million mainly due to:

• $8.6 million increase in Net gain or loss from disposal of assets reflecting SAHT’s expanded sales program in 2008-09; and

• $5.5 million in Intra-government transfers reflecting changes in funding associated with expenditure requirements, as outlined above.

Balance sheet — Controlled

The increase in Total assets for 2008-09 primarily relates to $212 million net revaluation increments and $213.0 million acquisitions via the capital investment program, offset by $228 million disposals by sale or demolition and $76 million depreciation and amortisation. Cash reserves are also expected to decrease by $22 million as a result of business operations, particularly the expenditure of funds carried over from 2007-08. The reduction in Total liabilities for 2008-09 mainly results from scheduled debt repayments.

Statement of changes in equity — Controlled

The increase in equity position is largely due to the gain on revaluation of property, plant and equipment during 2008-09.

Cash flow statement — Controlled

The increase in investing payments for 2008-09 is attributable to the following factors: • $37.1 million due to the net impact of carrying over unspent funds from 2007-08;

• $14.1 million in once-off transfers and reclassifications in 2007-08; and

10.68 • $3.6 million minor changes within annual capital programs.

The increase in investing receipts for 2008-09 is due to the expected increase in assets sales of the Affordable Homes Program, the proceeds of which will be directed to measures including debt retirement and affordable housing initiatives.

The increase in financing payments for 2008-09 is due to the repayment of debt in accordance with the financial viability strategy.

The reduction in financing receipts for 2008-09 reflects new once-off borrowings in 2007-08 to re-finance a long-standing superannuation liability with Super SA, of the same amount.

Other major resource variations in the Cash flow statement arise principally from the same factors giving rise to variations in the Income statement, as well as timing differences between the recognition of income and expenditure in the Income statement under accrual accounting conventions, and the timing of cash-based transactions.

10.69 Portfolio: Environment and Conservation and the River Murray

Minister for the River Murray Minister for Water Security Minister for Environment and Conservation

TABLE OF CONTENTS

PORTFOLIO SUMMARY

Ministerial Responsibilities...... 11.1

Portfolio Net Cost of Services Summary ...... 11.3

Investing Payments Summary...... 11.3

Workforce Summary ...... 11.3

Ministerial Office Resources ...... 11.3

Agency Summaries

Department for Environment and Heritage ...... 11.4

Department of Water, Land and Biodiversity Conservation...... 11.42

Environment Protection Authority ...... 11.72

Zero Waste SA ...... 11.90

PORTFOLIO: ENVIRONMENT AND CONSERVATION AND THE RIVER MURRAY

MINISTERIAL RESPONSIBILITIES

Minister Agency Programs Sub-Programs The Hon. Karlene Maywald Department of Water, Land 2. Natural Resources 2.1 Natural Resources Minister for the River Murray and Biodiversity Management Management Services Conservation (River Murray) (River Murray) Minister for Water Security 2.2 Policy, Science and Information (River Murray) 2.3 Infrastructure Services (River Murray) 3. Water Security Nil The Hon. Gail Gago Department for 1. Nature Conservation Nil Minister for Environment and Environment and Heritage 2. Public Land — Visitor Nil Conservation Management 3. Public Land — Fire Nil Management 4. Public Land — Nil Stewardship 5. Coast and Marine Nil Conservation 6. Botanic Gardens Nil Management 7. Heritage Conservation Nil 8. Animal Welfare Nil 9. Agency Support Nil Services Department of Water, Land 1. Natural Resources 1.1 Natural Resources and Biodiversity Management Management Services Conservation 1.2 Policy, Science and Information 1.3 Infrastructure Services Environment Protection 1. Environment and 1.1 Environment Protection Authority Radiation Protection 1.2 Radiation Protection Zero Waste SA 1. Waste Reduction and Nil Resource Recovery

11.1

Administered items

In addition to the above responsibilities the Portfolio administers the following items on behalf of Minister(s).

• Adelaide Coastal Waters Study

• Board of Botanic Gardens and State Herbarium

• Caring for our Country

• Coast Protection Fund

• Dog and Cat Management Board

• Excess Water (Fines and Penalties)

• Ministerial Other Items allocations

• National Action Plan for Salinity and Water Quality

• Native Vegetation Fund

• Natural Heritage Trust

• Natural Resource Management Research Alliance (formerly Centre for Natural Resource Management)

• Pastoral Board

• Qualco Sunlands Ground Water Control Trust

• South Eastern Water Conservation and Drainage Board

• Surplus Land and Property Sales Account

Statutes

The Department of the Premier and Cabinet maintains a list of statutes applicable to Ministers.

11.2

PORTFOLIO NET COST OF SERVICES SUMMARY

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Agency $000 $000 $000 $000 Department for Environment and Heritage ...... 135 959 150 331 153 962 128 015 Department of Water, Land and Biodiversity Conservation ...... 121 388 81 024 92 804 80 056 Environment Protection Authority...... 3 873 6 441 3 765 8 957 Zero Waste SA ...... -2 914 -4 163 -4 104 -183 Total 258 306 233 633 246 427 216 845

INVESTING PAYMENTS SUMMARY

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Agency $000 $000 $000 $000 Department for Environment and Heritage ...... 15 664 15 716 13 804 12 166 Department of Water, Land and Biodiversity Conservation ...... 1 047 891 785 1 662 Environment Protection Authority...... 5 768 588 496 496 Zero Waste SA ...... — — — 60 Total 22 479 17 195 15 086 14 384

WORKFORCE SUMMARY

FTEs as at 30 June 2008-09 2007-08 2006-07 Agency Budget Estimated result Actual Department for Environment and Heritage...... 1 081.2 1 145.6 1 059.7 Department of Water, Land and Biodiversity Conservation ...... 637.9 619.1 557.3 Environment Protection Authority...... 233.0 239.4 220.3 Zero Waste SA ...... 18.0 18.0 15.8 Total 1 970.1 2 022.1 1 853.1

MINISTERIAL OFFICE RESOURCES

2008-09 Budget Cost of provision Minister $000 FTEs The Hon. Karlene Maywald 1 489 12.0 The Hon. Gail Gago 1 769 16.0

11.3

TABLE OF CONTENTS

AGENCY: DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Objective ...... 11.5

Targets / Highlights...... 11.6

Program Net Cost of Services Summary...... 11.7

Investing Payments Summary...... 11.7

Program Information — includes description/objective, summary income statement, sub-program information including performance criteria

1. Nature Conservation...... 11.8

2. Public Land — Visitor Management ...... 11.10

3. Public Land — Fire Management...... 11.12

4. Public Land — Stewardship ...... 11.14

5. Coast and Marine Conservation...... 11.17

6. Botanic Gardens Management...... 11.19

7. Heritage Conservation ...... 11.21

8. Animal Welfare...... 11.23

9. Agency Support Services...... 11.25

Financial Statements

Income statement ...... 11.27

Balance sheet...... 11.28

Statement of changes in equity ...... 11.30

Cash flow statement...... 11.31

Income statement — Administered Items...... 11.33

Balance sheet — Administered Items...... 11.34

Statement of changes in equity — Administered Items...... 11.35

Cash flow statement — Administered Items ...... 11.36

Financial Commentary ...... 11.37

11.4

PORTFOLIO: ENVIRONMENT AND CONSERVATION AND THE RIVER MURRAY

AGENCY: DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Objective

The Department for Environment and Heritage (DEH), through the delivery of its programs, aspires to:

• prosperity for South Australia that is sustainable in a rapidly changing world; and

• a society that values, conserves and invests in the rich heritage and diverse natural environment.

DEH works towards achieving its aspirations through five goals:

• South Australians involved;

• a healthy environment;

• sustainable growth;

• better decisions and partnerships; and

• getting results.

11.5

2008-09 Targets / 2007-08 Highlights

Targets 2008-09 Highlights 2007-08

• Improve the quality and accessibility of information on the • Commenced implementation of No Species Loss: a Nature South Australian Heritage Register Conservation Strategy for South Australia 2007-2017 • Complete the Perpetual Lease Accelerated Freeholding Project • Finalised the East meets West NatureLinks Corridor Plan • Develop Regulations and commence implementation planning • Completed Biological Survey Reports for the Simpson Desert for the Crown Land Management Bill and Eyre Peninsula • Finalise the Protected Areas Strategy • Received tenders for planting of trees in the River Murray • Undertake a mid-term review of Heritage Directions Forest • Implement heritage ‘red tape’ reduction strategies in • Opened the Amazon Waterlily Pavilion to the public consultation with Planning SA • Completed 93 per cent of the Perpetual Lease Accelerated • Introduce an Amendment Bill in Parliament to modernise the Freeholding Project reserve classification system • Completed the third stage of the single heritage register for • Complete ten-year reviews of Innamincka and Simpson Desert national, state and local heritage in South Australia Regional Reserves for tabling in Parliament • Commenced implementation of the Heysen Trail • Complete assessments of Iluka Resources’ proposed Strategic Plan and Management Plan for priority sections of Jacinth-Ambrosia mine in Yellabinna Regional Reserve the trail • Implement the amended Animal Welfare Act and dog and cat • Proclaimed the Marine Parks Act 2007 and established the education and awareness activities Marine Parks Council • Gazette boundaries for 19 marine parks and establish regional • Developed remote area fire fighting capabilities in conjunction consultative committees to support the development of with the Country Fire Service (CFS) management plans for marine parks • Developed virtual tours of heritage places on the DEH website • Finalise Marine Parks Regulations • Contributed to the finalisation of an Environmental Assessment • Convene a Sea Level Rise Advisory Committee to review Bilateral under the Environment Protection and Biodiversity scientific evidence and advise on sea level rise policy Conservation Act 1999 (Commonwealth) • Develop a new western entry to the Adelaide Botanic Garden • Completed a program of sandshifter trials, as part of Adelaide’s Living Beaches Strategy: A Strategy for 2005-2025 • Upgrade botanic gardens water application infrastructure to demonstrate effective, efficient and appropriate water use • Finalised the draft of the Adelaide Dolphin Sanctuary Management Plan • Finalise the Visitor Management Strategy • Introduced the Animal Welfare Bill into Parliament • Continue the Healthy Parks, Healthy People program that includes determining the needs of disadvantaged groups • Completed assessments of ‘levels of service’ for the highest accessing parks and implementing access programs priority visitor parks • Finalise five fire management plans • Prepared draft fire management plans that cover approximately one-third of the protected areas managed by DEH • Appointed a senior DEH executive as an Assistant Chief Officer of the CFS

11.6

Program net cost of services summary

Net Cost of Services 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Program $000 $000 $000 $000

1. Nature Conservation...... 33 894 32 386 23 840 27 825 2. Public Land — Visitor Management...... 23 949 21 227 24 724 23 897 3. Public Land — Fire Management...... 6 211 7 283 6 601 7 293 4. Public Land — Stewardship...... 9 012 9 400 15 107 9 103 5. Coast and Marine Conservation ...... 17 169 11 276 16 304 10 739 6. Botanic Gardens Management...... 3 785 3 906 5 466 4 585 7. Heritage Conservation...... 3 161 3 102 2 704 2 338 8. Animal Welfare...... 1 001 906 921 746 9. Agency Support Services ...... 37 777 60 845 58 295 41 489 Total 135 959 150 331 153 962 128 015

Investing payments summary

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Investments $000 $000 $000 $000

New Works Adelaide Living Beaches...... 628 — — — Total New Works 628 — — —

Works in Progress Belair National Park Visitor Facilities 2 300 2 221 1 273 1 310 across the state...... Innes National Park Infrastructure and 1 800 848 — 93 facilities upgrade ...... Museum of Economic Botany ...... 945 180 — — Upgrade Roads in National Parks across — 1 082 1 700 — the state...... Amazon Waterlily ...... — 441 — 3 742 Schomburgk Pavilion / Mediterranean — 15 — 200 Gardens ...... Total Works in Progress 5 045 4 787 2 973 5 345

Annual Programs 9 991 10 929 10 831 6 821 Total Investing Payments 15 664 15 716 13 804 12 166

11.7

AGENCY: DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Program Information

Program 1: Nature Conservation

Description/Objective: Protecting, maintaining, improving and restoring ecosystems, habitats, species and populations by developing nature conservation policies and programs with industries, government and communities and by undertaking and supporting research, surveys and monitoring of South Australia’s biodiversity.

Summary income statement

Program 1: Nature Conservation 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 16 266 16 330 16 670 15 053 Supplies and services...... 11 871 13 230 10 829 9 242 Grants and subsidies ...... 2 984 1 391 4 600 1 247 Depreciation and amortisation...... 11 768 11 761 1 324 11 688 Other...... 204 204 — 71 Total expenses 43 093 42 916 33 423 37 301 Income Sale of goods and services...... 208 289 271 331 Fees, fines and penalties ...... 241 471 259 379 Commonwealth revenue ...... 8 454 6 919 7 466 307 Other...... 296 2 851 1 587 8 459 Total income 9 199 10 530 9 583 9 476 Net cost of providing services 33 894 32 386 23 840 27 825

11.8

Program 1: Performance Criteria:

Program: 1 Nature Conservation

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of program $33 894 000 $32 386 000 $23 840 000 $27 825 000

Performance Commentary No Species Loss: a Nature Conservation Strategy for South Australia 2007-2017 forms the basis for the 2008-09 nature conservation program, allowing DEH to focus and prioritise its activities to deliver the strategy’s targets for which it has lead responsibility. The alignment of the 2008-09 program with the strategy will contribute significantly to the state-wide implementation plan and see priority activity relating to the development of policy options for nature conservation legislation, wildlife management on reserves and monitoring of ecological indicators, to inform landscape restoration strategies. The drought continues to have a significant impact on the nature conservation program, delaying on-ground works for biodiversity conservation, including the rollout of the River Murray Forest. However, the assessment of stage one tenders for large-scale revegetation in the River Murray corridor is ready to roll out when seasonal conditions become favourable. Water security issues for biodiversity and the environmental impact assessment of a proposed temporary weir near Pomanda Island will be a focus in 2008-09. This is to ensure that biodiversity assets are considered alongside economic and social needs in the allocation of water and drought recovery. The preparation of environmental management plans for acid sulphate soils and conservation of threatened native fish will be key areas of activity. Following the release in late 2007-08 of the East meets West Biodiversity Corridor Plan, work will continue on three other NatureLinks Corridor draft plans: Flinders Olary; River Murray Coorong; and Cape Borda to Barossa. Scoping for the final planned corridor, the Arid Lands Corridor, will be progressed with emphasis on stakeholder engagement. The biological survey program saw the completion of fieldwork and the capture of biological data for the Maralinga Tjaratja and Yalata lands in 2007-08. This data will be analysed, compiled and published into Biological Survey Reports that will be completed this financial year. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of new research partnerships established 6 4 6 5 No. and $ value of grants provided for nature 16 18(a) 20 16 conservation research programs ($250 000)(b) ($280 000) ($280 000)(b) ($245 000) Number of Interim Biogeographic 57 regions 56 regions 56 regions 55 regions Regionalisation for Australia (IBRA) sub regions with more than one flora/fauna (84%) (82%) (82%) (78.3%) survey quadrant per 800 km2 No. and % of listed threatened species for 205 of 487 202 of 487 175 of 549(c) 167 of 487 which recovery plans or related action plans have been developed (42%) (41%) (32%) (34%) Number of large scale biodiversity corridors 3 1 1 0(d) established with management plans No. and % of Natural Resource Management 6 of 8(e) 5 of 8(e) 5 of 7 5 of 7 (NRM) regions covered by biodiversity plans that have been completed or updated within (75%) (63%) (70%) (70%) five years

Footnotes (a) A smaller number of higher value grants are estimated to be provided in 2007-08. (b) The 2007-08 Target was reported incorrectly. $250 000 was the correct grant allocation. (c) The figure of 549 included 62 ‘presumed’ extinct species. The number of presumed extinct species has been removed from the list in 2007-08. The list now reflects ‘listed threatened species’. (d) Draft East meets West Corridor Plan was in place. (e) Base NRM regions increased by one – inclusion of the Alinytjara Wilurara NRM region.

11.9

AGENCY: DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Program Information

Program 2: Public Land — Visitor Management

Description/Objective: Promoting public enjoyment and the conservation of the state’s natural and cultural heritage through the provision of sustainable opportunities for environmentally sensitive, economically viable and socially responsible visitor experiences.

Summary income statement

Program 2: Public Land — Visitor 2008-09 2007-08 2007-08 2006-07 Management Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 12 581 12 762 11 392 10 946 Supplies and services...... 7 036 8 805 6 859 9 144 Grants and subsidies ...... 71 53 44 62 Depreciation and amortisation...... 11 768 11 761 13 867 11 688 Other...... 136 136 — 474 Total expenses 31 592 33 517 32 162 32 314 Income Sale of goods and services...... 6 163 8 510 6 575 8 084 Fees, fines and penalties ...... 7 14 9 13 Commonwealth revenue ...... 128 117 23 — Other...... 1 345 3 649 831 320 Total income 7 643 12 290 7 438 8 417 Net cost of providing services 23 949 21 227 24 724 23 897

11.10

Program 2: Performance Criteria:

Program: 2 Public Land — Visitor Management

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of program $23 949 000 $21 227 000 $24 724 000 $23 897 000

Performance Commentary In 2007-08, ‘levels of service’ assessments for the highest priority visitor parks were completed and the Statewide Trails Strategy finalised and implementation commenced. The first stage of the upgrade to the Waterfall Gully to Mount Lofty trail and trail planning for Belair and Flinders Ranges National Parks commenced and will continue into 2008-09. Implementation of the Heysen Trail Strategic Plan and Management Plan commenced for priority sections of the trail, including the construction of approximately eight kilometres of trails within Deep Creek Conservation Park and Kings Head to provide improved access and reduce adverse environmental impacts associated with the former sections of the trail. Development and promotion of tourism and recreation in parks and reserves was undertaken jointly with the South Australian Tourism Commission. Licensing and support of licensed tour operators who provide eco-tourism experiences in national parks continued. Further stages of the Cleland Wildlife Park, Belair National Park and Flinders Ranges National Park Interpretation Plans were implemented. A framework for evaluation of visitor interpretation was developed. Concept planning for the entry precinct at Belair National Park began and extensive public consultation and upgrading of the Adventure Playground precinct commenced. The development of the West Cape day visitor site within Innes National Park began and concept planning for Pondalowie Campground was completed. In 2008-09, the Visitor Management Strategy will be finalised. Strategic planning will continue for future commercial operations at Cleland Wildlife Park and Seal Bay Conservation Park. ‘Levels of service’ assessments will inform planning and site development for parks. Research will be undertaken to determine the needs of disadvantaged groups in accessing parks and access programs implemented through the Healthy Parks, Healthy People program. Implementation of the Statewide Trails Strategy and Heysen Trail Strategic Plan will continue with the focus on developing trail delivery standards and design and construction of alternative routes for targeted segments of the Heysen Trail. Planning for cycle trails will also be a focus in 2008-09. The development and promotion of tourism and recreation experiences in parks and reserves will be undertaken in conjunction with the South Australian Tourism Commission. Interpretation plans for key parks will be developed and planning will commence for tourism and recreation in the proposed 19 new marine parks. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of visits to all parks 6 520 000 6 466 000 6 400 000 6 349 000 Satisfaction rate with facilities 80% 80%(a) 95%(b) 86% Park revenue 8 500 000 8 159 153 8 030 000 8 327 822

Footnotes (a) The survey methodology changed in 2007-08. Surveys moved from ‘at the time of the experience’ to a random sampling of the South Australian community. In the new methodology survey respondents may or may not have consumed a DEH service or product. (b) The 2007-08 Target was based on the previous survey methodology.

11.11

AGENCY: DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Program Information

Program 3: Public Land — Fire Management

Description/Objective: Managing fire to reduce the risk to life and property, and conserve our natural and cultural heritage on lands managed by DEH.

Summary income statement

Program 3: Public Land — Fire 2008-09 2007-08 2007-08 2006-07 Management Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 5 748 6 421 5 256 5 319 Supplies and services...... 1 949 2 801 2 112 2 241 Grants and subsidies ...... 88 68 145 38 Depreciation and amortisation...... 54 54 198 60 Other...... 43 43 — 6 Total expenses 7 882 9 387 7 711 7 664 Income Commonwealth revenue ...... 150 136 152 — Other...... 1 521 1 968 958 371 Total income 1 671 2 104 1 110 371 Net cost of providing services 6 211 7 283 6 601 7 293

11.12

Program 3: Performance Criteria:

Program: 3 Public Land — Fire Management

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of program $6 211 000 $7 283 000 $6 601 000 $7 293 000

Performance Commentary Five draft fire management plans have been completed and are nearing adoption, with another five nearing completion that will cover approximately one third of the protected area system managed by DEH. Cooperative fire management arrangements with other agencies continued to grow particularly the fire suppression arrangements with SA Water. A senior DEH executive was appointed as an Assistant Chief Officer of the Country Fire Service (CFS). Fuel management strategies aimed at reducing fuel levels have continued with the largest prescribed burning program to date. Significant research burning was also undertaken in Ngarkat Conservation Park to gain a better understanding of fire behaviour and aerial suppression effectiveness in mallee and heath fuel types. This research was part of a collaborative project between DEH, the CFS and the Bushfire Cooperative Research Centre (CRC). An additional $826 000 was provided for the employment of 26 seasonal fire fighters, taking the combined total number of seasonal fire fighters available for state-wide response to 64. Under the government’s twenty new rangers initiative, a further five rangers have been appointed bringing the total complement of additional ranger appointments to twelve in 2007-08. The rangers have undertaken fire training and have been actively involved in DEH’s fire management program. In addition, they have provided valuable support to DEH’s network of volunteers and friends and have been involved in nature conservation work to protect the unique biological resources of the state. In 2008-09, cooperative arrangements with SA Water, the CFS and other key fire management stakeholders will continue through the development of partnerships and membership on relevant national and state groups including the State Bushfire Prevention Committee, Australasian Fire Authorities Council, Bushfire CRC and Forest Fire Management Groups. Five fire management plans will be finalised and implemented and further fire management plans developed for key fire prone reserves within the protected area system. Fuel management strategies in the Mount Lofty Ranges and elsewhere in South Australia will continue along with the implementation of annual works and seasonal preparation and prevention programs. Targeted training programs will be developed and operational procedures will be reviewed to incorporate the latest fire ecology and research findings. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. and % of Regional Conservation staff 383 360 383 366 who have current qualifications in fire 85% 80% 80% 74% management (ie Country Fire Service Level 1 or higher) % of annual works programs implemented to 100% 98%(a) 100% 95% achieve fire management targets % of approved prescribed burns implemented 100% 98%(a) 100% 95% Appoint additional staff under Twenty New Recruit and Five Rangers Five rangers to be Seven Rangers Rangers initiative appoint three recruited and recruited and recruited and Park Rangers appointed appointed appointed

Footnotes (a) The 2007-08 Target was not achieved due to unseasonably dry spring conditions halting the prescribed burning program. The prescribed burn program is a significant component of the annual works program.

11.13

AGENCY: DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Program Information

Program 4: Public Land — Stewardship

Description/Objective: Ensuring that public lands and protected areas are managed effectively.

Summary income statement

Program 4: Public Land — Stewardship 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 8 449 9 249 9 020 9 310 Supplies and services...... 2 915 3 468 3 273 3 355 Grants and subsidies ...... 269 206 398 205 Depreciation and amortisation...... 314 314 5 934 284 Other...... 54 54 — 7 Total expenses 12 001 13 291 18 625 13 161 Income Sale of goods and services...... 1 706 2 493 615 2 679 Fees, fines and penalties ...... 214 346 146 323 Commonwealth revenue ...... 849 773 963 90 Other...... 220 279 1 794 966 Total income 2 989 3 891 3 518 4 058 Net cost of providing services 9 012 9 400 15 107 9 103

11.14

Program 4: Performance Criteria:

Program: 4 Public Land — Stewardship

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of program $9 012 000 $9 400 000 $15 107 000(a) $9 103 000

Performance Commentary In 2007-08, three new conservation parks were proclaimed: Vivigani Ardune in the South East, and Minlacowie and Ramsay on the Yorke Peninsula. DEH developed partnerships with private land conservation organisations through provision of financial and in-kind support to enable purchase and protection of approximately 215 000 hectares of ephemeral freshwater ecosystem, grassland and woodland habitat in outback South Australia. Management plans were adopted for: Althorpe and Goose Islands; Mowantjie Willauwar, Poonthie Ruwi-Riverdale, Tantanoola and Troubridge Island Conservation Parks; and O’Halloran Hill, Shepherds Hill and Sturt Gorge Recreation Parks. The Minister for Environment and Conservation determined to proceed with the proposed Billiatt and Danggali Wilderness Protection Areas, and received reports from the Wilderness Advisory Committee on the wilderness values of the Nullarbor National Park and Regional Reserve and the Nuyts Archipelago and Investigator Group of Islands. There has been a significant focus on managing exploration and mining activities in reserves, including the assessment of the proposed Jacinth-Ambrosia mineral sands mine by Iluka Resources in Yellabinna Regional Reserve. Negotiations for an indigenous land use agreement and co-management agreement over the Witjira National Park were completed with the Irrwanyere Aboriginal Corporation representing the Wangkangurru and Lower Southern Arrernte people. Progress was made on the implementation of the DEH Volunteer Strategy, ‘Success through Partnership – A Strategy for Volunteer Engagement’, and a third regional volunteer support ranger position was created to facilitate coordination of volunteer programs. The department worked with other relevant agencies to finalise an environmental assessment bilateral agreement under the Environment Protection and Biodiversity Conservation Act 1999 (Commonwealth). The department also made a submission to the government’s planning review to identify other ways to streamline environmental assessment and approvals processes in line with the Council of Australian Government’s 2008 regulatory reforms and consistent with the government’s program of ‘red tape’ reduction. The Perpetual Leases Accelerated Freeholding (PLAF) project continued with the issuing of a further 2300 freehold titles. The Protected Areas Strategy for South Australia was drafted. Consultation on a new policy for leases and licences in parks and reserves commenced. In 2008-09, DEH will continue to improve the protected area system through the finalisation of the Protected Areas Strategy for South Australia, acquisition of additional land for the parks and reserves system, and further development of partnerships with private land conservation organisations. The park management planning program will continue and plans will be adopted for key parks including the co-managed parks of Witjira National Park, Mamungari Conservation Park, and Ngaut Ngaut Conservation Park. The Wilderness Advisory Committee will commence an assessment of the wilderness values of Simpson Desert Conservation Park and Regional Reserve. Managing exploration and mining will continue to be a key focus with the anticipated commencement of construction activities by Iluka Resources for the Jacinth-Ambrosia mineral sands mine in Yellabinna Regional Reserve. The department will assist the completion of negotiations with the Yandruwandha Yawarrawarrka peoples for an indigenous land use agreement and co-management agreement over the Coongie Lakes National Park. Negotiations will continue with the Gawler Ranges (Gawler Ranges and Lake Gairdner National Park) and Antakarinja Matu-Yankuntjatjara (Breakaways Reserve) peoples, and commence with the Adnyamathanha people (Flinders Ranges National Park) as priority negotiations contributing to South Australia’s Strategic Plan Target 3.15 - Aboriginal lands access and management. The department will continue to implement its cultural awareness program and liaise with Aboriginal communities over planning and works including management and fire planning, wildlife plans and publications and signs. The department will continue to be actively represented on the South Australian Government Reconciliation Reference Committee and operate its Reconciliation Committee. The Perpetual Lease Accelerated Freeholding project will complete the majority of the remaining seven per cent (600 titles) of freeholding applications, including some conservation leases for waterfront applications. DEH will continue to work closely with other relevant agencies to streamline environmental assessment and approvals processes under the Environment Protection Biodiversity and Conservation Act. Work will continue to further improve key interactions with the planning system by working with Planning SA and councils. continued

11.15

Program: 4 Public Land — Stewardship continued

2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Per cent of environmental associations 59% 58% 58% 57% represented in the protected area system of South Australia (National Parks and Wildlife Act 1972, Wilderness Act 1992, Crown Lands Act 1929) No. of parks/reserves covered by 216 191(b) 205 187 management plans Volunteer days spent on land management 20 000 18 000(c) 32 000 26 095 projects in parks per annum

Footnotes (a) A new methodology for the allocation of depreciation expenses was developed, applied and audited for the 2007-08 operating year. This new methodology has significantly reduced the depreciation expense attributed to the Public Land — Stewardship Program. (b) The target was not achieved due to additional consultation requirements on some key management plans. (c) As a result of a review of the registration and counting of volunteer activities, a number of activities that would previously have been considered to contribute to projects on parks have now been excluded. As a result of the review, a more accurate figure will be provided in future.

11.16

AGENCY: DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Program Information

Program 5: Coast and Marine Conservation

Description/Objective: Ensuring the conservation, protection and ongoing sustainable productivity of South Australia’s coastal, estuarine and marine environments.

Summary income statement

Program 5: Coast and Marine 2008-09 2007-08 2007-08 2006-07 Conservation Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 5 054 5 102 5 204 4 317 Supplies and services...... 11 592 6 466 11 426 6 551 Grants and subsidies ...... 436 333 131 192 Depreciation and amortisation...... 244 244 344 212 Other...... 101 100 — 25 Total expenses 17 427 12 245 17 105 11 297 Income Commonwealth revenue ...... 138 761 646 174 Other...... 120 208 155 384 Total income 258 969 801 558 Net cost of providing services 17 169 11 276 16 304 10 739

11.17

Program 5: Performance Criteria:

Program: 5 Coast and Marine Conservation

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of program $17 169 000 $11 276 000 $16 304 000 $10 739 000

Performance Commentary In 2007-08, the Marine Parks Act 2007 was proclaimed and the Marine Parks Council of South Australia established. Public meetings were held throughout the state to share information with regional and metropolitan communities about marine parks. Draft National Parks and Wildlife (Protected Animals – Marine Mammals) Regulations 2007 were finalised following an extended consultation process. Mapping of marine habitats was undertaken for waters around the Eyre Peninsula, Yorke Peninsula, Fleurieu Peninsula and Kangaroo Island. The program of sandshifter trials was successfully completed, as part of Adelaide’s Living Beaches Strategy: A Strategy for 2005-2025. The joint DEH — Planning SA Sea Flood Risk Mapping on Low-lying Coastal Areas of Yorke Peninsula project, to identify high priority areas at risk from coastal hazards, proceeded towards development of digital elevation models for four high priority areas. Work continued with Planning SA and local government on the review and amendment of coastal development plans and statutory development assessment referrals. Further advice was provided on coastal zoning in the Eyre Peninsula Development Plans. The Coast Protection Board, supported by DEH, prepared a written submission to Parliament’s Environment, Resources and Development Committee inquiry into coastal development. DEH partnered with PIRSA in coordinating the whole of government response to the Committee’s report on its inquiry. The Board also established a Sea Level Rise Advisory Committee. In 2008-09, boundaries for 19 new marine parks will be gazetted and regional consultative committees established. Environmental capability guidelines will be released for each of the state’s six marine regions to guide sustainable development of South Australia’s marine environment. Implementation of the Adelaide’s Living Beaches Strategy: A Strategy for 2005–2025 will continue through a public tender for the construction and operation of sand transfer infrastructure. DEH will continue to evaluate and report on coast protection district monitoring surveys and coastal management strategies. Work will continue with Planning SA and local councils to maintain appropriate coastal policy and development controls. The Coast Protection Board, supported by DEH, will convene the Sea Level Rise Advisory Committee to review the scientific evidence and recommend if changes are required to the Board’s Sea Level Rise Policy. Seagrass restoration trials will continue. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of Marine Parks 20 1(a) 2 1(b) % of the state’s waters covered by 100% 0(d) 28% 0 Environmental Capability Guidelines(c) Vulnerable areas along the metropolitan 100% 100% 100% 100% coast that meet the dune buffer standard (viz twice that required to cope with a 1 in 100 year storm) % of Coast Protection Board advice on 100% 85%(e) 100% 89% development applications accepted by planning authorities

Footnotes (a) Transition provisions were not included in the Marine Parks Act 2007, precluding the recognition of the Encounter Marine Park in 2007-08. (b) The Great Australian Bight Marine Park was established in the 1990s by the South Australian and Australian Governments. The South Australian waters component is managed under the Fisheries Management Act 2007 and the National Parks and Wildlife Act 1972. The Commonwealth waters component is managed under the Environment Protection and Biodiversity Conservation Act 1999. (c) Environmental Capability Guidelines were formerly known as Marine Plans. (d) A change of government priorities required a review of the program, resulting in no Environmental Capability Guidelines being finalised in 2007-08. (e) The target was not met because in a number of cases, the planning authority disregards the Board’s advice.

11.18

AGENCY: DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Program Information

Program 6: Botanic Gardens Management

Description/Objective: Managing the natural and cultural resources of the Botanic Gardens and State Herbarium to advance plant conservation and sustainable horticulture practices, and to enrich society.

Summary income statement

Program 6: Botanic Gardens 2008-09 2007-08 2007-08 2006-07 Management Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 3 787 3 835 3 613 3 616 Supplies and services...... 1 628 2 009 1 772 2 076 Grants and subsidies ...... 146 111 108 80 Depreciation and amortisation...... 170 170 985 153 Other...... 31 31 — 182 Total expenses 5 762 6 156 6 478 6 107 Income Sale of goods and services...... — — — 3 Commonwealth revenue ...... — — 18 — Other...... 1 977 2 250 994 1 519 Total income 1 977 2 250 1 012 1 522 Net cost of providing services 3 785 3 906 5 466 4 585

11.19

Program 6: Performance Criteria:

Program: 6 Botanic Gardens Management

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of program $3 785 000 $3 906 000 $5 466 000 $4 585 000

Performance Commentary In 2007-08, the Botanic Gardens and State Herbarium focussed on the key strategic challenges of the Gardens 150 program. Amongst a wide range of achievements and activities, a significant event was the opening by the Premier of the Amazon Waterlily Pavilion in November 2007 and the commencement of a refurbishment of the Museum of Economic Botany that will continue into 2008-09. The Friends of the Botanic Gardens increased their volunteer activity within the gardens. The Botanic Gardens continued to support the group and worked with them on the further development of systems to maintain and strengthen the vibrancy of their membership. The Botanic Gardens research program continued through 2007-08 focussing on the understanding of the seed biology and ex-situ storage requirements of threatened and priority native plant species, in collaboration with the Millennium Seed Bank (UK). In 2008-09, the Botanic Gardens and State Herbarium will continue priority works in the identification, management and display of the Board’s collection of valuable cultural assets including art, the collections of the Museum of Economic Botany and the garden archives. The Botanic Gardens’ water application infrastructure will be upgraded, together with further investigation of possible aquifer storage and redraw as part of a range of activities modelling and demonstrating effective, efficient and appropriate water use. A broad range of functions and events will be delivered to support Botanic Gardens’ programs utilising garden facilities. The Botanic Gardens will continue to provide support to the Gardens Foundation. The development of a new western entry to the Adelaide Botanic Garden will continue in 2008-09 through a partnership with the Adelaide City Council. A new medicinal garden is planned in the western precinct. Research continues to understand the seed biology and storage requirements of threatened and priority native plants species, investigating alternative ex-situ conservation strategies for recalcitrant or selected priority plant species, and progressing ex-situ conservation collections of priority South Australian plant species in collaboration with the Millennium Seed Bank (UK). Partnerships will be expanded and strengthened with external research organisations linking the Botanic Gardens and State Herbarium with national and international research organisations and programs. Collaboration between the University of Adelaide and the South Australian Research and Development Institute (SARDI) will continue on bar coding and ancient DNA technologies. Work will continue on a new Flora of South Australia and further elucidation of South Australia’s rich marine algal flora in partnership with SARDI and the University of Adelaide. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of visits to the Botanic Gardens 1 890 000 1 800 000 1 800 000 1 508 000 No. of major cultural events 7 8(a) 6(b) 6 Per cent satisfaction rate with facilities 97% —(c) 96% 96%

Footnotes (a) WOMAdelaide, Botanic Gardens of Adelaide Garden Party, Blackwood Lions Jazz Festival, ASO Alfresco - Mount Lofty Botanic Gardens, G150 Anniversary Celebration Weekend , Worlds Greatest Pram Stroll, Moonlight Cinema, Park Life (new event managed by promoter). (b) WOMAdelaide, Botanic Gardens of Adelaide Garden Party, Blackwood Lions Jazz Festival, ASO Alfresco - Mount Lofty Botanic Gardens, Worlds Greatest Pram Stroll, Moonlight Cinema. (c) Botanic Gardens 2007-08 Visitor Perception Survey is scheduled for May 2008.

11.20

AGENCY: DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Program Information

Program 7: Heritage Conservation

Description/Objective: Ensuring that the state’s built and maritime heritage and heritage objects are identified, protected, conserved, maintained and celebrated.

Summary income statement

Program 7: Heritage Conservation 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 1 682 1 703 1 663 1 611 Supplies and services...... 865 1 191 755 915 Grants and subsidies ...... 1 110 849 844 718 Depreciation and amortisation...... 219 219 180 49 Other...... 19 19 — -27 Total expenses 3 895 3 981 3 442 3 266 Income Sale of goods and services...... 726 864 715 861 Fees, fines and penalties ...... 8 15 8 4 Commonwealth revenue ...... — — — 60 Other...... — — 15 3 Total income 734 879 738 928 Net cost of providing services 3 161 3 102 2 704 2 338

11.21

Program 7: Performance Criteria:

Program: 7 Heritage Conservation

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of program $3 161 000 $3 102 000 $2 704 000 $2 338 000

Performance Commentary In 2007-08, the third stage of the development of a single heritage register was completed. The Heritage Advisory Service was expanded and is now available to owners of 80 per cent of the state heritage places on the South Australia Register and a significant number of owners of local heritage places. The department initiated a review of the statutory referral of development applications under the Development Act 1993 to identify opportunities to reduce ‘red tape’ for business and individuals. DEH partnered NSW Heritage Branch and Heritage Victoria to produce heritage conservation guidelines for publication on the heritage web site. The Showcasing SA Heritage Places section of the heritage web site has been significantly improved and expanded. The 2007-08 schools heritage competition for students focused on the theme of Heritage Postcards and has significantly enhanced the understanding of heritage issues amongst students, and within their local communities throughout South Australia. The 2008-09 program will focus on three key projects: implementation of initiatives aimed at reducing ‘red tape’ for business and individuals, and implementation of heritage related recommendations arising from the Planning Review in SA; improving the quality and accessibility of information on the SA Heritage Register; and the SA Heritage Council mid-term Review of Heritage Directions. In addition, the program will continue to work with local councils to consolidate the Heritage Advisory Service and improve heritage related planning policy. The twentieth century survey for the period 1928-45 will be completed. The South Australian Heritage Fund will continue in 2008-09 with grants provided to assist in the conservation of state heritage places and the maritime component of the Heritage Conservation Program will be reviewed and revitalised. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual % of development application comments 98% 97% 97% 95% which are accepted by Council (ie not referred to Development Assessment Commission)

11.22

AGENCY: DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Program Information

Program 8: Animal Welfare

Description/Objective: Ensuring animals are treated humanely and that companion animals are managed appropriately.

Summary income statement

Program 8: Animal Welfare 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 263 250 228 161 Supplies and services...... 32 30 31 36 Grants and subsidies ...... 660 580 662 511 Depreciation and amortisation...... 46 46 — 42 Total expenses 1 001 906 921 750 Income Fees, fines and penalties ...... — — — 4 Total income — — — 4 Net cost of providing services 1 001 906 921 746

11.23

Program 8: Performance Criteria:

Program: 8 Animal Welfare

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of program $1 001 000 $906 000 $921 000 $746 000

Performance Commentary In 2007-08, the Prevention of Cruelty to Animals (Animal Welfare) Amendment Bill was passed by the Legislative Council. A Memorandum of Understanding has been developed between the RSPCA and government agencies that enforce the Prevention of Cruelty to Animals Act 1985. Funding arrangements and reporting criteria of the RSPCA were reviewed. The development of a training package for inspectors commenced and new authorisation cards are being developed. DEH has continued to provide input on national issues, for example the development of the Model Codes of Practice for the Welfare of Pigs, the Australian Animal Welfare Strategy, the Australian Standards for the Transport of Livestock, standards for the humane management of vertebrate pest species, and the harmonisation of legislation project. The Good Dog SA communications strategy has been extended to a Good Cat SA program to promote responsible cat ownership. Regulatory impact assessments on the options for cat management and micro-chipping of cats and dogs were received and provided to the Dog and Cat Management Board. The Board is undertaking further consideration of these options. In 2008-09, the Animal Welfare Act will be implemented. This will include training of inspectors, authorisation of inspectors under the Act and communication to those impacted by the new provisions of the Act. The department will continue to provide input on National Codes (for example, the Pig Code and Livestock Transport Codes) as these are developed. The Dog and Cat Management Board will continue to explore ways of effectively managing cats, and will continue to implement its ‘Good Dog’ and ‘Good Cat’ education programs. The findings of the Dog and Cat Management Board’s review of the 2006-07 dog attacks data will be used to target the most at risk sectors of the community through a communications strategy. DEH will continue to foster and maintain partnerships between the RSPCA, Animal Welfare League, local councils, professional organisations, for example, the Australian Veterinary Association and the South Australian Farmers Federation, and other government agencies. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of complaints about ill treatment, which 3 300 3 289 2 500 2 740 require action by RSPCA

11.24

AGENCY: DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Program Information

Program 9: Agency Support Services

Description/Objective: The provision of business support services to the various operational units within the Department for Environment and Heritage, the Environment Protection Authority, Zero Waste SA and other related boards and committees. These services include the provision and management of information to support the state’s environmental needs, human resource management, payroll, financial management, IT infrastructure, IT Helpdesk support, facilities management, project management, asset management, administrative support, business planning, governance, government business, executive support, public affairs, procurement and environmental policy advice.

Summary income statement

Program 9: Agency Support Services 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 26 284 27 267 25 768 26 106 Supplies and services...... 13 389 17 367 13 049 17 061 Grants and subsidies ...... 498 381 497 620 Depreciation and amortisation...... 1 140 1 139 2 876 974 Other...... 301 19 167 19 663 5 137 Total expenses 41 612 65 321 61 853 49 898 Income Sale of goods and services...... 839 1 159 1 517 3 880 Fees, fines and penalties ...... — — — 1 Commonwealth revenue ...... — 150 — — Other...... 2 996 3 167 2 041 4 528 Total income 3 835 4 476 3 558 8 409 Net cost of providing services 37 777 60 845 58 295 41 489

11.25

Program 9: Performance Criteria:

Program: 9 Agency Support Services

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of program $37 777 000 $60 845 000(a) $58 295 000 $41 489 000

Performance Commentary The Agency Support Services program supports the effective and efficient delivery of DEH’s eight other programs.

Footnotes (a) Reflects a once-off payment to the Consolidated Account from the Accrual Appropriation Excess Funds Account in 2007-08, relating to an adjustment for amended depreciation expense being applied against the asset base ($18.8 million).

11.26 DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Expenses Employee benefit expenses — Salaries, wages, annual and sick leave ...... 64 768 66 873 63 446 60 809 Long service leave ...... 2 384 2 294 2 166 2 229 Payroll tax ...... 3 796 4 139 4 096 3 788 Superannuation ...... 7 038 7 267 6 844 6 974 Other ...... 2 128 2 346 2 262 2 639 Supplies and services — General supplies and services ...... 51 070 55 165 49 904 50 454 Consultancy expenses ...... 207 202 202 167 Depreciation and amortisation expenses ...... 25 723 25 708 25 708 25 150 Borrowing costs ...... — 22 — 2 723 Grants and subsidies ...... 6 262 3 972 7 429 3 673 Intra government transfers ...... 2 69 — 183 Other expenses ...... 887 19 663 19 663 2 969

Total expenses 164 265 187 720 181 720 161 758

Income Commonwealth revenues ...... 9 719 8 856 9 268 631 Intra government transfers ...... 5 473 6 379 5 692 13 169 Other grants ...... 1 407 1 359 1 416 634 Fees, fines and penalties ...... 470 846 422 724 Sales of goods and services ...... 9 642 13 315 9 693 15 838 Interest revenues ...... 55 51 51 173 Net gain or loss from disposal of assets ...... — — — -31 Resources received free of charge ...... — — — 775 Other income ...... 1 540 6 583 1 216 1 830

Total income 28 306 37 389 27 758 33 743

Net cost of providing services 135 959 150 331 153 962 128 015

Income from / Expenses to SA Government Income — Appropriation ...... 134 416 129 445 134 717 124 819 Other income ...... — 60 — 1 170 Expenses — Cash alignment ...... — 6 100 — 3 979

Net income from / expenses to SA Government 134 416 123 405 134 717 122 010

Net result before restructure(s) -1 543 -26 926 -19 245 -6 005

Net income from / expenses from administrative restructure(s) .. — 205 — —

Net result after restructure(s) -1 543 -26 721 -19 245 -6 005

11.27 DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... 101 891 91 783 89 673 145 343 Receivables ...... 6 850 6 850 6 959 6 350 Inventories ...... 1 392 1 392 1 440 1 392 Other current assets ...... 629 629 2 909 629

Total current assets 110 762 100 654 100 981 153 714

Non current assets Financial assets ...... 8 878 Land and improvements ...... 252 575 252 942 256 252 258 703 Plant and equipment ...... 36 051 45 345 37 449 49 178 Heritage assets ...... 1 339 1 339 1 408 1 339 Intangible assets ...... 1 504 1 902 729 2 300 Other non-current assets ...... 951 951 950 951

Total non-current assets 292 428 302 487 296 795 312 479

Total assets 403 190 403 141 397 776 466 193

Liabilities Current liabilities Payables ...... 16 893 16 893 10 580 16 393 Employee benefits — Salaries and wages ...... 1 193 1 193 1 239 1 193 Annual leave ...... 4 979 4 926 2 306 4 900 Long service leave ...... 935 869 456 816 Superannuation ...... — — 5 — Other ...... — — 5 — Short-term provisions ...... 369 360 379 351 Other current liabilities ...... 608 608 940 608

Total current liabilities 24 977 24 849 15 910 24 261

Non current liabilities Long-term borrowings ...... — — — 38 054 Long-term employee benefits — Long service leave ...... 16 359 14 906 15 992 13 778 Long-term provisions ...... 971 960 762 953 Other non-current liabilities ...... 2 303 2 303 2 581 2 303

Total non-current liabilities 19 633 18 169 19 335 55 088

Total liabilities 44 610 43 018 35 245 79 349

Net assets 358 580 360 123 362 531 386 844

11.28 DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Equity Retained earnings ...... 192 919 194 462 192 832 221 183 Asset revaluation reserve ...... 165 661 165 661 169 699 165 661

Total equity 358 580 360 123 362 531 386 844

Balances as at 30 June end of period.

11.29 DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... — 165 661 221 183 386 844 Adjustments ...... — — — —

Restated balance at 30 June 2007 — 165 661 221 183 386 844

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ...... — — -26 721 -26 721

Total recognised income and expense for 2007-08 — — -26 721 -26 721

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 — 165 661 194 462 360 123

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2008-09 ... — — — — Net result after restructure for 2008-09 ...... — — -1 543 -1 543

Total recognised income and expense for 2008-09 — — -1 543 -1 543

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 — 165 661 192 919 358 580

11.30 DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash outflows Employee benefit payments ...... 78 562 81 530 77 425 74 165 Supplies and services ...... 51 277 55 367 50 106 46 038 Borrowing costs ...... — 22 — 2 747 Grants and subsidies ...... 6 262 3 972 7 429 3 777 Net GST paid ...... — — — 14 516 Intra government transfers ...... 2 69 — — Other payments ...... 847 19 624 19 624 20

Cash used in operations 136 950 160 584 154 584 141 263

Cash inflows Intra government transfers ...... 5 473 6 379 5 692 13 169 Commonwealth receipts ...... 9 719 8 856 9 268 631 Other grants ...... 1 407 1 359 1 416 608 Fees, fines and penalties ...... 470 846 422 775 Sales of goods and services ...... 9 642 13 315 9 693 16 746 Interest received ...... 55 51 51 252 Net GST received ...... — — — 13 872 Other receipts ...... 1 540 6 583 1 216 1 602

Cash generated from operations 28 306 37 389 27 758 47 655

SA GOVERNMENT: Appropriation ...... 134 416 129 445 134 717 124 819 Other receipts ...... — 60 — 1 170 Payments — Tax equivalents ...... — — — -13 Cash alignment ...... — 6 100 — 3 979

Net cash provided by SA Government 134 416 123 405 134 717 122 023

Net cash provided by (+) / used (-) in operating activities 25 772 210 7 891 28 415

INVESTING ACTIVITIES: Cash outflows Purchase of property, plant and equipment ...... 15 664 15 716 13 804 12 166 Advances paid ...... — — — -23

Cash used in investing activities 15 664 15 716 13 804 12 143

Cash inflows Proceeds from sale of property, plant and equipment ...... — — — 86

Cash generated from investing activities — — — 86

Net cash provided by (+) / used in (-) investing activities -15 664 -15 716 -13 804 -12 057

11.31 DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 FINANCING ACTIVITIES: Cash outflows Repayment of borrowings ...... — 38 054 38 054 —

Cash used in financing activities — 38 054 38 054 —

Net cash provided by (+) / used in (-) financing activities — -38 054 -38 054 —

Net increase (+) / decrease (-) in cash equivalents 10 108 -53 560 -43 967 16 358

Cash and cash equivalents at the start of the financial year 91 783 145 343 133 640 128 985

Cash and cash equivalents at the end of the financial year 101 891 91 783 89 673 145 343

11.32 ADMINISTERED ITEMS FOR THE DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Income from SA Government Income — Appropriation ...... 5 144 23 994 3 843 3 852

Net income from / expenses to SA Government 5 144 23 994 3 843 3 852

Income from other sources Intra government transfers ...... — — — 140 Other grants ...... 1 462 1 785 89 — Fees, fines and penalties ...... 1 108 1 109 1 108 2 036 Sales of goods and services ...... 548 733 547 — Interest revenues ...... 71 121 71 171 Net gain or loss from disposal of assets ...... — — — 11 022 Resources received free of charge ...... — — — 1 014 Other income ...... 209 82 1 009 1 078

Total income from other sources 3 398 3 830 2 824 15 461

Total income 8 542 27 824 6 667 19 313

Expenses Employee benefit expenses — Salaries, wages, annual and sick leave ...... 285 302 267 238 Long service leave ...... — 1— 7 Payroll tax ...... 1 2121 Superannuation ...... 1 417 Other ...... — — — 109 Supplies and services — General supplies and services ...... 1 233 2 921 1 225 2 274 Depreciation and amortisation expenses ...... 2 524 2 524 2 524 2 581 Grants and subsidies ...... 5 071 23 918 3 795 5 229 Intra government transfers ...... 1 953 1 896 1 380 31 Other expenses ...... 5 398 8 958 3 110 33 437

Total expenses 16 466 40 526 12 303 43 934

Net result -7 924 -12 702 -5 636 -24 621

11.33 ADMINISTERED ITEMS FOR THE DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... 13 250 13 252 15 020 12 980 Receivables ...... 756 756 2 945 756 Inventories ...... 159 159 107 159 Other current assets ...... — — 45 —

Total current assets 14 165 14 167 18 117 13 895

Non current assets Land and improvements ...... 59 880 62 802 49 237 69 237 Plant and equipment ...... 1 584 1 584 1 739 1 584 Heritage assets ...... 5 249 5 249 5 178 5 249

Total non-current assets 66 713 69 635 56 154 76 070

Total assets 80 878 83 802 74 271 89 965

Liabilities Current liabilities Payables ...... 1 175 1 175 632 1 175 Short-term borrowings ...... 1 822 1 822 7 130 1 822 Employee benefits — Salaries and wages ...... 7 727 Other current liabilities ...... 329 329 721 329

Total current liabilities 3 333 3 333 8 485 3 333

Total liabilities 3 333 3 333 8 485 3 333

Net assets 77 545 80 469 65 786 86 632

Equity Retained earnings ...... 37 117 40 041 32 555 46 204 Asset revaluation reserve ...... 40 428 40 428 33 231 40 428

Total equity 77 545 80 469 65 786 86 632

Balances as at 30 June end of period.

11.34 ADMINISTERED ITEMS FOR THE DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... — 40 428 46 204 86 632 Adjustments ...... — — 6 539 6 539

Restated balance at 30 June 2007 — 40 428 52 743 93 171

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ...... — — -12 702 -12 702

Total recognised income and expense for 2007-08 — — -12 702 -12 702

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 — 40 428 40 041 80 469

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2008-09 ... — — — — Net result after restructure for 2008-09 ...... — — -7 924 -7 924

Total recognised income and expense for 2008-09 — — -7 924 -7 924

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 — 40 428 32 117 72 545

11.35 ADMINISTERED ITEMS FOR THE DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash inflows Intra government transfers ...... — — — 140 Other grants ...... 1 462 1 785 89 140 Fees, fines and penalties ...... 1 108 1 109 1 108 1 892 Sales of goods and services ...... 548 733 547 — Interest received ...... 71 121 71 169 Other receipts ...... 209 82 1 009 1 078

Cash generated from operations 3 398 3 830 2 824 3 419

Cash outflows Employee benefit payments ...... 287 309 269 363 Supplies and services ...... 1 233 2 921 1 225 5 979 Grants and subsidies ...... 5 071 23 918 3 795 5 146 Intra government transfers ...... 1 953 1 896 1 380 31 Other payments ...... 5 398 8 958 3 110 33 495

Cash used in operations 13 942 38 002 9 779 45 014

SA GOVERNMENT: Appropriation ...... 5 144 23 994 3 843 3 852

Net cash provided by SA Government 5 144 23 994 3 843 3 852

Net cash provided by (+) / used in (-) operating activities -5 400 -10 178 -3 112 -37 743

INVESTING ACTIVITIES: Cash inflows Proceeds from sale of property, plant and equipment ...... 5 398 10 450 3 110 39 453

Cash generated from investing activities 5 398 10 450 3 110 39 453

Cash outflows Purchase of property, plant and equipment ...... — — — 1 345

Cash used in investing activities — — — 1 345

Net cash provided by (+) / used in (-) investing activities 5 398 10 450 3 110 38 108

Net increase (+) / decrease (-) in cash equivalents -2 272 -2 365

Cash and cash equivalents at the start of the financial year 13 252 12 980 15 022 12 615

Cash and cash equivalents at the end of the financial year 13 250 13 252 15 020 12 980

11.36

AGENCY: DEPARTMENT FOR ENVIRONMENT AND HERITAGE

Financial Commentary — major variations

Basis of Accounting

The department underwent a minor internal organisational restructure on 5 May 2008 to improve the ability to deliver on its existing program priorities. Whilst there is no change in program structure, it is anticipated that program reporting improvements will be implemented in 2008-09.

The following commentary relates to the Agency Financial Statements presented in the previous section. The discussion relates to variations between the 2007-08 Estimated Result and the 2008-09 Budget.

Income statement — Controlled

Expenditure

The $23.5 million decrease in expenditure between 2007-08 Estimated Result and 2008-09 Budget is primarily as a result of the following:

• a once-off payment to the Consolidated Account from the Accrual Appropriation Excess Funds Account in 2007-08. A review of DEH annual depreciation determined that the rate since 1999-2000 was too high and should be reduced from 19.5 per cent to 16.5 per cent. This resulted in a one time repayment from the DEH Accrual Appropriation Excess Funds Account to the Consolidated Account of an unnecessary balance of $18.8 million;

• a once-off payment to the Consolidated Account in 2007-08 under the Cash Alignment Policy ($6.1 million); and

• once-off expenditure in 2007-08, primarily funded by revenues from Commonwealth and other government bodies ($3.7 million).

Offset by:

• an increase in expenditure in 2008-09 related to Adelaide’s Living Beaches Strategy ($5.5 million).

Revenue

The $9.1 million decrease in revenue between 2007-08 Estimated Result and 2008-09 Budget is primarily as a result of the following:

• once-off income relating to SAICORP insurance recoveries for fire and flood damage ($4.3 million); and

• once-off revenue recognised in 2007-08 primarily comprising revenues from Commonwealth and other government bodies ($3.7 million).

11.37

Balance sheet — Controlled

Cash and deposits at call will increase in 2008-09, primarily as a result of additional Accrual Appropriation revenue received in 2008-09 ($11.6 million), largely to offset a decrease in non-current assets.

Other current assets are expected to remain consistent.

The Balance sheet shows a net decline in non-current assets. This is primarily the result of the differential between the capital investment program of the department and the annual depreciation of assets.

Current and non-current liabilities remain broadly consistent.

Statement of changes in equity — Controlled

The explanation for the change in equity from 2007-08 Estimated Result to 2008-09 Budget is consistent with the explanations provided for the Income statement and Balance sheet.

Cash flow statement — Controlled

Most of the major variations described in the Income statement also influence the Cash flow statement.

The department’s Investing Payments for 2008-09 are broadly consistent with the 2007-08 Estimated Result.

The decrease in the department’s Financing Payments from 2007-08 Estimated Result to 2008-09 Budget relates to the repayment of a loan liability to the Department of Treasury and Finance in 2007-08 ($38.1 million).

Income statement — Administered Items

Expenditure

The $24.1 million decrease in expenditure between 2007-08 Estimated Result and 2008-09 Budget is primarily a result of the following:

• a once-off grant payment to Royal Zoological Society of South Australia ($18.9 million in 2007-08); and

• payments to Consolidated Account in 2007-08 relating to the sale of surplus Crown lands ($5.7 million) and the Perpetual Lease Accelerated Freeholding project ($2.8 million).

11.38

Offset by:

• Payments to Consolidated Account in 2008-09 relating to the sale of land at Glenside ($2.5 million) and the sale of a portion of the State Sports Park ($2.5 million).

Revenue

No major variations.

Balance sheet — Administered Items

The net decline in non-current assets between the 2007-08 Estimated Result and the 2008-09 Budget, is predominately a result of the annual depreciation of assets ($2.5 million) and the sale of surplus lands as part of the Perpetual Lease Accelerated Freeholding project in 2008-09 ($398 000).

Other current assets and current and non-current liabilities are expected to remain broadly consistent.

Statement of changes in equity — Administered Items

The major variations described in the Statement of Changes in Equity are predominately as a result of the changes to the recognition of assets during 2007-08.

Cash flow statement — Administered Items

The major variations described in the Income statement also influence the Cash flow statement.

The $5.1 million decrease in investing receipts between the 2007-08 Estimated Result and the 2008-09 Budget is primarily due to:

• the sale of Crown lands in 2007-08 ($6.5 million); and

• a decrease in land sales from 2007-08 to 2008-09 as part of the Perpetual Lease Accelerated Freeholding project ($2.8 million).

Offset by:

• an increase in land sales in 2008-09 for the sale of land at Glenside ($2.5 million) and the sale of a portion of the State Sports Park ($2.5 million).

Additional Information for Administered Items

Detailed information on Administered Items is included in the following table.

11.39

Additional Information for Administered Items Department of Environment and Heritage

Cash flow statement

2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result $000 $000 $000 $000

CASH FLOWS FROM: Operating Activities Cash inflows Intra-government transfers — Surplus Land and Property Sales Account...... — — — 140 Grants — Botanic Gardens and State Herbarium Board ...... 1 462 1 785 89 140 Sales of goods and services — Botanic Gardens and State Herbarium Board ...... 508 708 508 24 Coast Protection Fund...... 40 25 39 17 Surplus Land and Property Sales Account...... — —— -41 Fees, Fines and Penalties — Botanic Gardens and State Herbarium Board ...... 34 35 34 851 Dog and Cat Management Board...... 1 074 1 074 1 074 1 041 Interest — Botanic Gardens and State Herbarium Board ...... 50 100 50 140 Dog and Cat Management Board...... 21 21 21 29 State Government — Appropriation — Coast Protection Fund...... 479 476 476 476 Royal Zoological Society of SA Inc ...... 3 126 22 026 3 126 3 126 War Concessions...... 8 44 4 Intra-sector Grants Received...... 255 251 237 246 Adelaide City Council Parklands...... 1 276 1 237 — — Other — Botanic Gardens and State Herbarium Board ...... 209 82 1 009 1 073 Coast Protection Fund...... — —— 4 Adelaide Dolphin Sanctuary ...... — —— 1 Cash Generated from Operations 8 542 27 824 6 667 7 271

Cash Outflows Employee payments — Botanic Gardens and State Herbarium Board ...... 32 58 32 72 Parliamentary Salaries and Electorate and Expense Allowance. 255 251 237 246 Dog and Cat Management Board...... — —— 22 Coast Protection Fund...... — —— 23

11.40

Additional Information for Administered Items Department of Environment and Heritage

Cash flow statement

2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result $000 $000 $000 $000

Supplies and services — Botanic Gardens and State Herbarium Board ...... 280 758 280 318 Coast Protection Fund...... 79 75 75 109 Dog and Cat Management Board...... 870 904 870 615 Surplus Land and Property Sales Account...... — 1 184 — 4 933 War Concessions...... 4 —— 4

Grants and subsidies — Botanic Gardens and State Herbarium Board ...... 1 953 1 896 1 380 1 450 Coast Protection Fund...... 440 426 440 240 Dog and Cat Management Board...... 225 225 225 361 Royal Zoological Society of SA Inc ...... 3 126 22 026 3 126 3 126 War Concessions...... 4 44 — Adelaide City Council Parklands...... 1 276 1 237 — — Other — Surplus Land and Property Sales Account...... 5 398 8 958 3 110 33 495 Cash Used in Operations 13 942 38 002 9 779 45 014 Net cash provided by (+) / used in (-) operating activities -5 400 -10 178 -3 112 -37 743

Investing activities Cash Inflows Surplus Land and Property Sales Account...... 5 398 10 450 3 110 39 453 Cash Generated from Investing Activities 5 398 10 450 3 110 39 453

Cash Outflows Botanic Gardens and State Herbarium Board ...... — — — 113 Surplus Land and Property Sales Account...... — — — 1 232 Cash Investing used in Activities — — — 1 345 Net cash provided by (+) / used in (-) investing activities 5 398 10 450 3 110 38 108 Net Increase (+) / decrease (-) in cash equivalents -2 272 -2 365 Opening cash balance as at 1 July 13 252 12 980 15 022 12 615 Closing cash balance as at 30 June 13 250 13 252 15 020 12 980 Note: Totals may not add due to rounding

11.41

TABLE OF CONTENTS

AGENCY: DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Objective ...... 11.43

Targets / Highlights...... 11.43

Program Net Cost of Services Summary...... 11.45

Investing Payments Summary...... 11.45

Program Information — includes description/objective, summary income statement, sub-program information including performance criteria

1. Natural Resources Management ...... 11.46

2. Natural Resources Management (River Murray)...... 11.51

3. Water Security...... 11.56

Financial Statements

Income statement ...... 11.58

Balance sheet...... 11.59

Statement of changes in equity ...... 11.60

Cash flow statement...... 11.61

Income statement — Administered Items...... 11.62

Balance sheet — Administered Items...... 11.63

Statement of changes in equity — Administered Items...... 11.64

Cash flow statement — Administered Items ...... 11.65

Financial Commentary ...... 11.66

11.42

PORTFOLIO: ENVIRONMENT AND CONSERVATION AND THE RIVER MURRAY

AGENCY: DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Objective

Natural resources used sustainably to enhance quality of life.

2008-09 Targets / 2007-08 Highlights

Targets 2008-09 Highlights 2007-08

• Finalise the water allocation decision framework under drought • Worked closely with relevant agencies to provide timely and conditions for implementation and continue to provide effective support to both the government and communities government and affected communities with appropriate affected by the River Murray drought River Murray drought response measures • Implemented relevant actions of the government’s Water • Continue to participate in negotiations to finalise details of the Security Strategy National Plan for Water Security and facilitate a new • Completed a draft issues paper on the water allocation decision framework for management of the Murray–Darling Basin framework under drought conditions through the Inter-governmental agreement • Established the Office for Water Security to undertake policy • Complete South Australia’s The Living Murray First Step development related to the securing and provision of water water recovery target of returning 35 gigalitres of supplies environmental water to the River Murray by 30 June 2009 • Commenced emergency pumping of water from Lake • Continue to implement The Living Murray environmental Alexandrina into Lake Albert to avoid possible acidification management plans for Icon Sites in South Australia and ecological collapse of Lake Albert • Provide significant input and leadership, through • Continued to negotiate with the Commonwealth and other South Australia’s River Murray Environmental Manager, in Murray–Darling Basin states for a comprehensive national securing additional environmental flows from the River Murray approach in order to achieve the best outcomes for the • Consult stakeholders on the Murray–Darling Basin Risks River Murray and South Australia’s water security Strategy for addressing risk to shared water resources and • South Australia successfully had 13 GL of environmental water determine actions for implementation listed on The Living Murray Environmental Register • Complete the Rehabilitation of the Lower Murray Reclaimed • Committed to purchasing an additional 3 GL of water towards Irrigation Area project achieving South Australia’s 35 GL Living Murray First Step • Commence construction of the Murtho Salt Interception target Scheme and establish Noora as a sustainable salt interception • Committed to investing $26.8 million in five interstate Living management basin Murray water recovery projects that will recover around • Develop a business case for the ongoing maintenance and 187 GL management of the South Eastern drainage systems and subject • Completed the transition of The Living Murray icon site to approval of the environmental impact assessment, management functions to the South Australian Murray commence detailed design and construction of the REFLOWS Darling Basin Natural Resources Management Board project • Progressed major infrastructure works at Chowilla for Bank E, • Develop an agreed process for establishing new arrangements Boat Creek Bridge and Pipeclay and Slaney weirs under the Border Groundwater Agreement in response to interception requirements of the National Water Initiative • Completed development of the SA River Murray Environmental Watering Plan • Complete the Triennial Review of the River Murray Act 2003 • Continued negotiations with industry groups to develop • Submit proposals to amend legislation for the Irrigation partnerships for future environmental water donations Act 1994, Renmark Irrigation Trust Act 1936 and the South Eastern Water Conservation and Drainage Act 1992 • Provided a preliminary assessment of how South Australia is managing risks to the shared resources of the Murray-Darling • Commence a comprehensive review of the Natural Resources Basin Management Act 2004 • Completed Rehabilitation Funding Deeds for all irrigation • Report progress on the first two goals of the State Natural districts and 85 per cent of the scheduled on-farm rehabilitation Resources Management (NRM) Plan 2006 works in the Lower Murray Reclaimed Irrigation Area • Further refine South Australian administrative arrangements to • Commenced preparatory works for the construction of the facilitate interstate water trade Murtho Salt Interception Scheme • Finalise, in collaboration with four NRM regions, erosion • Completed a geotechnical survey, soils testing, and excavation protection targets and strategies trials for the Bald Hill drain

11.43

Targets 2008-09 Highlights 2007-08

• Complete the water allocation plans for the Western Mount • Completed the community consultation for the REFLOWS Lofty Ranges, Peake Roby and Sherlock, Far North and Marne project Saunders Prescribed Areas • Completed a statutory review of the Border Groundwater • Complete the amendments to the water allocation plans for the Agreement Northern Adelaide Plains, Clare, Barossa, Mallee, Padthaway, • Completed reviews of irrigation legislation and the Tatiara, Lower Limestone Coast and Noora Prescribed Areas South Eastern Water Conservation and Drainage Act 1992 • Complete the concept statement for the amendments to the • Completed review of the Lake Eyre Basin Intergovernmental River Murray Prescribed Watercourse Water Allocation Plan Agreement and commenced implementation of the major • Complete comprehensive regional NRM plans for Kangaroo recommendations Island, Northern and Yorke, South East, Alinytjara Wilurara • Implemented tagged interstate water trade across the southern and South Australian Murray Darling Basin NRM regions connected Murray-Darling Basin • Refine the draft Science and Technology Innovation Strategy • Prepared a draft Science and Technology Innovation Strategy to include NRM board research priorities and consult with for NRM that has been reviewed by the NRM Council stakeholders and industry • Prepared soil protection targets for inclusion in draft NRM • Complete a state biosecurity strategy plans • Complete and review the stage one tender process for the • Completed community consultation on policy papers to inform River Murray Forest and commence tree planting on private the development of the Marne Saunders, Eastern Mount Lofty land Ranges and Western Mount Lofty Ranges Water Allocation • Finalise a ‘Caring for our Country’ bilateral agreement with the Plans Commonwealth Government • Completed the review and commenced the process for • Develop a framework for the Statewide Water Security Plan, amending the River-Murray Prescribed Watercourse Water which incorporates Water Proofing Adelaide and Water Allocation Plan Proofing South Australia • Completed the draft Adelaide and Mount Lofty Ranges • Complete an assessment of the Victorian water registry system comprehensive regional NRM plan in order to assess its suitability for South Australia • Prepared a draft state Biosecurity Strategy which identifies • Complete policy frameworks for environmental water access priority issues within South Australia entitlements and unallocated water, consistent with National • Continued tree planting for the River-Murray Forest with Water Initiative requirements 2550 trees planted on public land near Cadell • Complete a review of Aboriginal Access to Water and develop • Implemented the NRM Volunteer Strategy including the an implementation strategy inaugural Premier’s NRM Awards • Complete the trial of a voluntary process for better integrating • Commenced bilateral discussions with the Commonwealth for native vegetation into the development planning system and the delivery of the new ‘Caring for our Country’ program commence implementation of the findings • Resolved at the national level to examine the feasibility of • Adopt the code of practice to improve the management of moving to a national common water register native vegetation to reduce the impact of bushfire • Formed a new Native Vegetation Council and Native • Achieve a further reduction in ‘red tape’ of five per cent for Vegetation Assessment Panel external customers • Hold a state-wide forum to improve aboriginal community engagement in NRM

11.44

Program net cost of services summary

Net Cost of Services 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Program $000 $000 $000 $000

1. Natural Resources Management...... 45 730 43 369 40 354 36 594 2. Natural Resources Management (River-Murray)...... 73 581 36 507 52 450 43 462 3. Water Security...... 2 077 1 148 — — Total 121 388 81 024 92 804 80 056

Investing payments summary

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Investments $000 $000 $000 $000

New Works Budget Management Information 300 — — — System Total New Works 300 — — —

Works in Progress Flora Search Relocation — — — 56 Total Works in Progress — — — 56

Annual Programs 747 891 785 1 606 Total Investing Payments 1 047 891 785 1 662

11.45

AGENCY: DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Program Information

Program 1: Natural Resources Management

Description/Objective: Managing natural resources in South Australia, including the provision of advice and regulatory support for the government and community; and facilitating the allocation and sustainable use of natural resources.

Summary income statement

Program 1: Natural Resources 2008-09 2007-08 2007-08 2006-07 Management Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 34 978 33 076 30 985 28 845 Supplies and services...... 32 751 37 552 28 158 26 444 Grants and subsidies ...... 8 433 7 673 12 058 8 171 Depreciation and amortisation...... 2 356 2 351 1 897 2 581 Other...... 505 324 — 167 Total expenses 79 023 80 976 73 098 66 208 Income Sale of goods and services...... 4 112 6 261 4 870 4 296 Fees, fines and penalties ...... 1 465 1 429 872 1 178 Commonwealth revenue ...... 16 678 10 661 12 345 7 073 Other...... 11 038 19 256 14 657 17 067 Total income 33 293 37 607 32 744 29 614 Net cost of providing services 45 730 43 369 40 354 36 594

11.46

Sub-program information

Sub-program: 1.1 Natural Resources Management Services

Natural Resources Management (NRM) services including: resource planning; the administration of natural resources legislation; restoration and maintenance of ecosystems; community capacity building; resource management operations, licensing and compliance; and Commonwealth-state joint programs. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $33 636 000 $31 899 000 $30 751 000 $26 916 000

Performance Commentary The Commonwealth and state governments approved National Action Plan (NAP) and Natural Heritage Trust (NHT) funds for 2007-08 totalling $42.2 million for investment in regional and state NRM programs. This does not take into account the additional ‘in-kind’ contributions provided by the state government to match the Commonwealth Government funding of NHT. Regional NRM board projects have ranged from empowerment of indigenous groups as active partners in NRM, protection of key water resources and integrated coastal and marine management to restoration of habitat in key biodiversity areas. Major state NRM programs included the Upper South East Project, Salt Interception Schemes and the Lower Murray Reclaimed Irrigation Area Rehabilitation programs in the South Australia Murray–Darling Basin. NAP and NHT funding end on the 30 June 2008. On the 14 March 2008, the Commonwealth Government announced the ‘Caring for our Country’ program. This replaces the existing NAP, NHT and National Landcare Program funding. South Australia is negotiating a short-term bilateral agreement that will provide ongoing funding to existing programs from 1 July 2008 while a longer term bilateral will be negotiated for the remainder of the program, 2008-13. In 2007-08, the key issues considered by the Natural Resources Management Council (NRM Council) included progressing implementation of the State Natural Resources Management Plan and identifying impacts of climate change on natural resources management to support the South Australian adaptation and mitigation response. The Natural Resources Management Volunteer Committee facilitated a state-wide forum to explore the challenges of supporting and engaging NRM Volunteers on 15 October 2007. The aim of this forum was to increase awareness of successful models for delivering regional priorities in natural resources management through volunteers. The forum identified challenges in supporting and engaging volunteers and looked at effective strategies to address these. The Natural Resources Management Volunteer Committee facilitated the Premier’s NRM Awards held in conjunction with the 2007-08 South Australian Landcare Awards. The Premier’s NRM Awards recognised the outstanding contributions made by volunteers to the sustainable management of South Australia’s natural resources. Water allocation plans continued to be developed for the Western Mount Lofty Ranges, Eastern Mount Lofty Ranges, Central Adelaide, Peak, Roby and Sherlock, Far North and Marne Saunders prescribed areas. The following water allocation plans were under amendment by the relevant NRM boards over 2007-08 and this will continue in 2008-09; Northern Adelaide Plains, Barossa, Clare, Mallee, Padthaway, Tatiara, Tintinara Coonalpyn, Comaum-Caroline, Lacepede Kongorong and Naracoorte Ranges plans (note the last three are being amalgamated and are now known as the Lower Limestone Coast). In 2007-08, the review of the River Murray Prescribed Watercourse Water Allocation Plan was completed. In 2008-09, it is expected that a concept statement will be released for public comment to commence the statutory amendment process. The River Murray Forest was launched by the Premier in August 2007. The Cadell planting of 2550 trees and shrubs is being managed by the Department of Correctional Services, which is watering the plants with grey water. Tender negotiations and contract finalisation for the first carbon sequestration and biodiversity plantings on private land have been progressed. In 2008-09 (if the drought breaks) the planting will accelerate on both public and private land. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Quantity Number processed: • water licences(a) 6 000 7 000 2 500 3 445

(b) • water permits 5 000 5 200 4 800 9 328 • water authorisations(c) 250 600 1 000 966 • Development Act — Application referrals (d) (e) − mandatory 120 60 160 82 − non-mandatory 125 125 120 109 continued

11.47

Sub-program: 1.1 Natural Resources Management Services continued

2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual

(f) • Development Act — Policy referrals 80 75 90 99

(g) (g) (h) (g) • native vegetation clearance applications 150 160 100 158

(g) Significant Environment Benefit Payment $200 000 $200 000 $200 000 $330 527 Quality % of development applications processed 98% 98% 98% 85.4% within statutory timeframes % of native vegetation clearance applications 85% 85% 85% 76% processed within agreed timeframes(h) Ratio of area protected from native 4:1 4:1 2:1 5.4:1 vegetation clearance or planted against area (h) (i) (j) approved for clearance Ratio of area to be revegetated against area 10:1 10:1 10:1 24:1 (g) of trees approved for clearance

Footnotes (a) Due to drought related restrictions, interstate and intrastate water allocation transfers in the River Murray have increased significantly. Consequently, water licence applications for 2007-08 will exceed the target. With drought conditions expected to continue, an increased number of applications is anticipated in 2008-09. (b) Total permit applications exceed the estimate due to the exceptionally high number of well construction permits due to factors such as drought and mining exploration. (c) The number of authorisations represents activity within the Eastern Mount Lofty Ranges and Western Mount Lofty Ranges Prescribed Water Resources Areas. (d) The target is higher than the 2007-08 Estimated Result because amendments to the Development Regulations 1993 are expected to increase the current number of referrals. (e) Refers to items 12(1), 12(2), 12A and 16 of Schedule 8 of the Development Regulations 1993. The number is lower than the 2007-08 Target because the State Planning Review caused amendments to the Development Regulations 1993 to be put on hold while awaiting the changes. (f) Policy referrals include 93 Planning Act referrals received (now called Development Plan Amendments) and six Section 30 reviews. (g) Figures include native vegetation clearance approved under both the Native Vegetation Act 1991 and the Native Vegetation Regulations 2003. (h) Figures represent native vegetation clearance approved under the Native Vegetation Act 1991 only. The change in reporting practice reflects an increase in applications being handled under the Regulations. (i) The higher ratios for 2007-08 and 2008-09 result from fewer applications for poor quality regrowth vegetation. (j) Brush cutting applications have been excluded from the statistics, as no offset is required for these applications due to the natural regeneration of brush.

11.48

Sub-program: 1.2 Policy, Science and Information

Policy advice and policy development for and on behalf of the Minister for Environment and Conservation on the management of natural resources; representation of the government on state and national groups; development, monitoring and review of legislation, and legal advice; natural resource science and information services including: monitoring and assessing the condition of natural resources; resource management technology and innovation; and the provision of technical advice and information. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $11 077 000 $10 505 000 $10 938 000 $8 864 000

Performance Commentary In 2007-08 reviews were completed on the following Acts: • The Natural Resources Management Act 2004. This review was limited in scope and a full review is to be undertaken in 2008-09. A report on the 2007-08 review was tabled in both Houses of Parliament in spring 2007. • The South Eastern Water Conservation and Drainage Act 1992. A report on the review was provided to the Minister and amendments are under consideration. • The Native Vegetation Act 1991. A review was undertaken and as an outcome of the review, a Miscellaneous Amendment Bill has been developed. The statutory review of the Border Groundwater Agreement was completed, with detailed advice provided in relation to one province. Detailed advice on the remaining two provinces is to be provided in 2008-09. On 11 July 2007, new directions for native vegetation management in South Australia were announced which included improving legislation, administration, communication and regional involvement. A new Native Vegetation Council was appointed on 16 August 2007 with a number of joint memberships between this body and the NRM Council. The new Native Vegetation Council focuses on strategic issues including policy development, while a new expertise based Native Vegetation Assessment Panel makes decisions on individual applications to clear native vegetation. In the 2007 report on the Wangary bushfire of 2005, the Coroner recommended that a Code of Practice be developed for the management of native vegetation as it affects bushfire prevention. The code is being developed by the Native Vegetation Council, Department of Water Land and Biodiversity Conservation (DWLBC), Department for Environment and Heritage and South Australian Country Fire Service and community consultation will occur during 2008. The Upper South East Dryland Salinity Program continued to process applications under its Biodiversity Levy Offset Scheme, which protects areas of native vegetation through management agreements. DWLBC continues to undertake studies into the state and condition of South Australia’s natural resources to inform future management. In 2007-08, nine technical notes on groundwater, forestry and sustainable water management and the effects of dams on water flows were produced. A South Australian monitoring, evaluation, and reporting framework for NRM was endorsed by the NRM Council in 2007. This framework will enable the Council to meet its statutory responsibilities to audit, monitor and evaluate the state and condition of natural resources across the state and to monitor and evaluate the effectiveness of the State NRM Plan. The NRM Research Alliance was developed in September 2007 to support and guide research into NRM issues. The NRM Research Alliance represents four state government agencies, the regional NRM boards, the CSIRO, Flinders University, the University of Adelaide and the University of South Australia. The NRM Research Alliance developed a draft science, technology and innovation strategy (STIS) in late 2007 for the NRM Council. The draft STIS is being further refined to include NRM board research priorities and a consultation process will be undertaken with stakeholders and industry during 2008-09. In 2007-08, DWLBC contributed through funding and ‘in kind’ support to six Cooperative Research Centres (CRC). These were: Irrigation Futures, Invasive Animals, eWater, Australian Weed Management, Desert Knowledge and Future Farm Industries. The Future Farm Industries CRC commenced in July 2007 and will receive $34 million over seven years from the Commonwealth Government. It replaced the CRC for Plant Based Management of Dryland Salinity. A major research and development node has been established in South Australia managed through DWLBC. South Australian partner organisations are Primary Industries and Resources SA and the University of Adelaide. During 2007-08 DWLBC worked in partnership with the NRM boards to develop regional land resource condition targets that are consistent with South Australia’s Strategic Plan and the State NRM Plan. Draft land condition targets have been developed and provided to the Eyre Peninsula, Northern and Yorke, South East, Kangaroo Island, South Australia Murray-Darling Basin and Adelaide and Mount Lofty Ranges NRM Boards for use in the development of their comprehensive NRM plans. Over 2008-09, specialist land management technical experts will continue working in partnership with regional NRM boards on land management targets. A draft Biosecurity Strategy for South Australia was developed in 2007-08 that provides for the biosecurity continuum of prevention, preparedness, incursion response and ongoing management of established species in South Australia. It provides the framework for delivery in South Australia of the proposed national arrangements under Australia’s Biosecurity System for Primary Production and the Environment (AusBIOSEC). Further development of the strategy and associated business plan will be undertaken during 2008-09.

11.49

Sub-program: 1.3 Infrastructure Services

Development and delivery of infrastructure and remediation programs and commercial businesses; and management of natural resources management infrastructure assets. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $1 017 000 $965 000 -$1 335 000 $814 000

Performance Commentary Construction of the Didicoolum drain was completed under the Upper South East Dryland Salinity and Flood Management Program. The Program has also completed its investigations into the environmental and economic benefits of the REFLOWS project, including public consultation. Construction commenced on the East Avenue drain. Subject to approval, the REFLOWS project will commence in 2008-09. The Great Artesian Basin Sustainability Initiative (GABSI) is a jointly funded initiative by the state and Commonwealth Governments. South Australia has invested $1.75 million in the GABSI program over the last eight years. The benefits that have resulted from the GABSI investment include a greater security of water supply (including for groundwater dependent wetlands, springs and ecosystems), improved management of pastoral leases and availability of water resources for other developments and uses. The Commonwealth Minister for Water and Climate Change has committed new funds for GABSI Phase 3. From 2009-10, the Commonwealth has allocated $85 million over seven years. An inter-jurisdictional working group has been established to negotiate the terms and conditions for funding under GABSI Phase 3.

11.50

AGENCY: DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Program Information

Program 2: Natural Resources Management (River Murray)

Description/Objective: Managing natural resources in the Murray—Darling Basin in South Australia, including the provision of advice and regulatory support for the government and community; and facilitating the allocation and sustainable use of natural resources.

Summary income statement

Program 2: Natural Resources 2008-09 2007-08 2007-08 2006-07 Management (River Murray) Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 13 576 12 838 12 952 11 196 Supplies and services...... 15 592 18 064 19 325 12 509 Grants and subsidies ...... 30 078 27 365 25 155 29 142 Other...... 27 267 15 376 10 161 4 882 Total expenses 86 513 73 643 67 593 57 729 Income Sale of goods and services...... 6 688 10 184 5 014 6 988 Fees, fines and penalties ...... — — 898 — Commonwealth revenue ...... 2 117 1 353 580 898 Other...... 4 127 25 599(a) 8 651 6 381 Total income 12 932 37 136 15 143 14 267 Net cost of providing services 73 581 36 507 52 450 43 462 (a) Other revenue includes $18.4 million from other states for The Living Murray initiative.

11.51

Program 2: Performance Criteria:

Sub-program: 2.1 Natural Resources Management Services (River Murray)

Natural resources management support including: resource planning; the administration of natural resources legislation; restoration and maintenance of ecosystems; community capacity building; resource management operations, licensing and compliance; and Commonwealth-state joint programs. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $67 395 000(a) $31 565 000 $47 527 000 $39 053 000

Performance Commentary In 2006-07, the River Murray and southern part of the Murray–Darling Basin experienced the worst drought in recorded history. Severe drought conditions have continued throughout 2007-08. Although River Murray system inflows in 2007-08 have been higher than last year, opening storage levels in 2007-08 were so low that the current total water resource position has deteriorated compared to the same time last year. Accordingly, the South Australian Government has continued to implement, and expand as necessary, its Drought Management Strategy, which largely involves short-term projects. To minimise the impact of the current drought, the government implemented a number of drought related actions through 2007-08 that included: • providing technical and other information, support and advice to the Community Liaison Manager who continued to work for the government as an important conduit between communities (below Lock 1) and government agencies; • in partnership with local councils, Aboriginal communities and other government agencies, implementing streamlined emergency dredging procedures; • coordinating development of a draft water allocation decision framework under drought conditions for targeted consultation through key community forums along the River Murray and Lower Lakes; • widely distributing regularly updated information to affected communities and individuals on the current status of the River Murray and on salinity and water level projections; • in partnership with the South Australian Murray Darling Basin Natural Resources Management Board, organising public meetings on the drought and drought recovery; • providing ex-gratia relief to water licence holders in the South Australian Murray Darling Basin Natural Resources Management region equivalent to 68 per cent of the water levy payable by each licence holder (except for industrial licensees who received ex-gratia relief equivalent to 50 per cent); • waiving of fees normally attached to the transfer of water, purchased by licensed water users to ‘top up’ restricted use to 100 per cent of their usual entitlement; • enabling licensed River Murray water users to carryover into 2008-09 up to 100 per cent of their unused restricted volume for 2007-08; • providing additional compliance and enforcement effort along the River Murray; • in partnership with the Murray–Darling Basin Commission, revising water level and salinity models for the River Murray and Lower Lakes, and regularly updating water and salinity level projections; • securing a Murray–Darling Basin Ministerial Council funding commitment of $6 million to pump water from Lake Alexandrina to Lake Albert, to avoid the potential ecological collapse of Lake Albert through the onset of acidification due to the exposure of acid sulphate sediments to the air; • undertaking salinity monitoring and profiling for the River Murray and Lower Lakes, flow gauging at the Locks, and additional groundwater monitoring (level and salinity) in the Angas Bremer area; and • undertaking investigations for the South Australian Murray Darling Basin Natural Resources Management Board on the temporary closure of six wetlands along the River Murray, to reduce both the water lost through evaporation and the risk of water quality issues from highly saline and nutrient-rich water from these wetlands draining back into the river. At the national level, the Department of Water, Land and Biodiversity Conservation (DWLBC) is represented on the Dry Inflows Contingency Planning Senior Officials Group which, in November 2006, was charged with the responsibility of reporting to First Ministers on contingency arrangements for securing water during the current drought for cities and towns reliant on the River Murray. In 2008-09, DWLBC will continue to provide technical and other assistance and information to the government and drought affected communities and individuals as part of the government’s response to the drought. Under the 2003 Living Murray Initiative First Step Decision, Murray–Darling Basin jurisdictions are to recover collectively 500 gigalitres (GL) of environmental water for the River Murray by 30 June 2009. South Australia’s first step recovery target is 35 GL. South Australia has made significant progress toward fulfilling its obligations under The Living Murray and was the first jurisdiction to list water (13 GL) onto the Murray–Darling Basin Environmental Water Register, for use in improving the environmental health of the River Murray. An application to list a further 5 GL on the Eligible Measures Register was completed in March 2008. The remaining 17 GL will be recovered over the next twelve months, mainly through the purchase of water from willing sellers, to meet South Australia’s target of 35 GL. continued

11.52

Sub-program: 2.1 Natural Resources Management Services (River Murray) continued

Performance Commentary In addition, South Australia committed to invest approximately $26.8 million in five water recovery projects from other Murray-Darling Basin jurisdictions that will recover around 187 GL of water for The Living Murray. South Australia also expressed interest in investing in a further two interstate projects that would recover an additional 193 GL. The South Australian River Murray Environmental Manager (RMEM) continues to perform a crucial role. The transition of this function to the South Australian Murray Darling Basin Natural Resources Management Board was completed along with the transfer of The Living Murray Icon Site management role and functions. During 2007-08, the RMEM developed a draft River Murray Strategic Watering Plan, coordinated and managed the closure of 27 regulated and six unregulated wetlands to achieve evaporative savings of 59 GL to the end of March 2008, provided a small volume of Living Murray environmental water to five sites on the Chowilla Floodplain Icon Site, prepared ecological condition reports for The Living Murray icon sites in South Australia and commenced detailed design of the Chowilla Creek environmental regulator that will provide ecological benefit to as much as 50 per cent of the floodplain. The RMEM has also played an important role in the investigation and management of acid sulphate soils at the Lower Lakes and other River Murray wetlands. Through 2008-09, RMEM plans to continue the Chowilla watering program, finalise the design of the Chowilla Creek regulator, develop a robust wetland refill plan and undertake, in conjunction with the Murray–Darling Basin Commission and other agencies, the development of short and long term management options for Living Murray Icon Sites in South Australia, especially the Lower Lakes, Coorong and Murray Mouth. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Quantity Number processed:

(b) (b) • mandatory River Murray Act 2003 580 680 550 654 development application referrals Quality % of Development Applications processed 98% 98% 98% 95.6% within statutory timeframes

Footnotes (a) The increase in net cost is primarily due to expenditure of $12.5 million on The Living Murray Initiative in 2008-09 related to revenue received in 2007-08. There is also expenditure of $9.2 million in 2008-09 on River Murray Environmental Flows related to revenue received in 2005-06. (b) Implementation of planned amendments to the regulations to reduce the number of referrals, was to occur in 2007-08. This will now occur in 2008-09.

11.53

Sub-program: 2.2 Policy, Science and Information (River Murray)

Policy advice and policy development for and on behalf of the Minister for the River Murray on the management of natural resources; representation of the government on state and national groups; development, monitoring and review of legislation, and legal advice; natural resource science and information services including: monitoring and assessing the condition of natural resources; resource management technology and innovation; and the provision of technical advice and information. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $4 261 000 $3 404 000 $3 389 000 $3 037 000

Performance Commentary The Department of Water, Land and Biodiversity Conservation (DWLBC) along with representatives from the Department of the Premier and Cabinet played a key role in supporting the Premier and the Minister for the River Murray and Minister for Water Security in negotiations to finalise the detail of the National Plan for Water Security and facilitate a new framework for management of the Murray-Darling Basin. As a result, the Commonwealth’s Water Act 2007 incorporates South Australia’s model for an independent, expert based Murray-Darling Basin Authority and South Australia’s proposal for a review of the new arrangements in 2014. South Australia has continued to negotiate for a more comprehensive legislative approach with the Commonwealth and other Murray-Darling Basin jurisdictions in order to achieve the best outcomes for the River Murray and South Australia’s water security. On 26 March 2008, Murray-Darling Basin jurisdictions reached in-principle agreement on a Memorandum of Understanding (MOU) on Murray-Darling Basin reform and have committed to sign an Intergovernmental Agreement (IGA) at the July 2008 COAG meeting. The MOU includes some important outcomes for South Australia. South Australia’s model for an independent, expert based Murray-Darling Basin Authority is retained and the Murray-Darling Basin Authority and the Murray-Darling Basin Commission become one institution. There is agreement that the Basin Plan, prepared by the independent authority, will recognise critical human water needs as a priority. This was a fundamental gap under the Commonwealth Water Act 2007. There is a commitment to arrangements to allow South Australia to store water in upstream dams to ensure there is enough water for Adelaide and towns reliant on the River Murray. A further commitment to provide for improved environmental outcomes in the Basin plan, including increased environmental flows is also reinforced through the MOU. A Murray-Darling Basin Commission Risks to Shared Resources Program was established to develop a strategy for assessing and responding to activities, events and processes that have the potential to reduce water volume and quality in the Murray-Darling Basin. The program identified six priority risks: climate change, afforestation, groundwater extraction, irrigation return flows, farm dams and bushfires. The report, The Murray-Darling Basin Risks Strategy along with other key Murray-Darling Basin Commission activities, is part of a national approach to managing these issues in the context of the National Water Initiative and the Commonwealth Water Act 2007. It will be a valuable input into the emerging COAG water reform agenda and its focus on addressing over allocation. The program also draws on the results from other work such as the CSIRO Murray-Darling Basin Sustainable Yields Project. Consultation on the Murray-Darling Basin Commission Risks Strategy with South Australian stakeholders will be undertaken to determine the actions required to support the implementation of the Strategy. South Australia continued to meet South Australia’s Strategic Plan River Murray Salinity Target (T3.11) of maintaining the Salinity Register in balance through the implementation of salinity zoning and salt interception strategies. The mid-term review of the Basin Salinity Management Strategy identified that the salinity in the River Murray is being well managed with good progress in long-term salinity accountability and offsetting the salinity impacts of irrigation. A review of irrigation legislation including consultation with key stakeholders is being progressed. For 2008-09, proposals recommending amendments to the legislation will be finalised for government consideration. With the expanded interstate trade of water entitlements and allocation transfers being fully operational in 2007-08, there has been a significant number and volume of trades across jurisdictions. To the end of April 2008, net trade into South Australia has been approximately 100 gigalitres (GL) compared to 55 GL for the whole of 2006-07. DWLBC has developed modelling capacity for the government’s drought response, in particular, forecasting potential changes in water and salinity levels along the length of the River Murray in South Australia, including the Lower Lakes, under current low flows conditions. This modelling provides important input in developing and delivering a drought recovery strategy for requesting and managing flows available to South Australia in terms of quantity and timing and the sharing of these resources to achieve the required economic, environmental and social outcomes. DWLBC was a major sponsor of the 2nd International Salinity Forum held in Adelaide 31 March – 3 April 2008. DWLBC staff either presented or were involved in eight forum papers/presentations or posters.

11.54

Sub-program: 2.3 Infrastructure Services (River Murray)

Development and delivery of infrastructure and remediation programs and commercial businesses; and management of natural resources management infrastructure assets. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $1 925 000 $1 538 000 $1 534 000 $1 372 000

Performance Commentary The Murray-Darling Basin Commission’s Native Fish Strategy continues to be successfully implemented with the installation during 2007-08 of three fishways (Blanchetown-Lock 1, Bank E-Chowilla, Hunters Creek-Goolwa) to improve fish movements in South Australia’s part of the Murray-Darling Basin. Further construction of fishways has been planned for the barrages and the locks and weirs. The $22 million Lower Lakes Reclaimed Irrigation Areas Program targeted rehabilitation of 4047 hectares of land aimed at improving water use efficiency, water quality, improvements in drainage and ensuring sustainable primary production into the future. During 2007-08 the program progressed well with: • all 24 irrigation districts / private irrigators having signed the Rehabilitation Fund Deed; • all area restructure payments being finalised; and • an equivalent of 813 hectares of on-ground rehabilitation being completed, bringing the total area rehabilitated to 3492 hectares. The remaining 555 hectares of rehabilitation works will be successfully completed in 2008-09. Construction of the Loxton and Waikerie Lock 2 salt interception schemes is progressing and is scheduled for completion in June 2009. On 7 March 2008, the Murray-Darling Ministerial Council gave approval for the construction of the Murtho Salt Interception Scheme project at a total cost of $30.2 million. The proposed scheme will intercept about 100 tonnes of salt per day through a series of groundwater bores along the south bank of the Murray River between Renmark and the state border. The scheme will reduce salinity at Morgan by an estimated 20.2 EC and is expected to bring significant floodplain benefits, as with other salt interceptions schemes, including: • improved River Murray water quality; • environmental benefits through controlling water table levels on the river floodplain; and • sustainable irrigation development. Key hydrogeological and engineering contractors have been engaged to commence preliminary design activities. A $5 million budget in 2008-09 will allow construction works to commence. The planned works involve drilling and testing of a bore field design and pipeline construction. Investigations are continuing in readiness for construction approval of other schemes including Pike, Chowilla and Woolpunda. With the ongoing drought, and subsequent low flows in the River Murray, the Murray-Darling Ministerial Council has agreed to the continuation and expansion of dredging operations at the Murray Mouth until 30 June 2009.

11.55

AGENCY: DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Program Information

Program 3: Water Security

Description/Objective: Coordinating water policy development across government, including supporting an integrated approach to natural resource management.

Summary income statement

Program 3: Water Security 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs ...... 1 905 1 026 — — Supplies and services ...... 897 847 — — Total expenses 2 802 1 873 — — Income Commonwealth revenue...... 725 725 — — Total income 725 725 — — Net cost of providing services 2 077 1 148 — —

11.56

Program performance information

Program: 3 Water Security

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $2 077 000 $1 148 000 — —

Performance Commentary Development and implementation of the Water Security Strategy was overseen by the Water Security Task Force, consisting of relevant South Australian Government agency representatives, with independent expert advice from the Water Security Advisory Group. The Department of Water, Land and Biodiversity Conservation (DWLBC) was represented in, and was a key contributor to both forums. To provide additional focus and impetus on water security, particularly in the longer term, the state government recently replaced both forums with the Water Security Council and the Office for Water Security. In 2007-08, some of the key activities undertaken include: • providing scientific, technical and administrative advice and support to the Water Security Advisory Group, Water Security Taskforce, the recently established Water Security Council and South Australia’s representatives on the Senior Officials Group; • developing strategies to secure a water reserve for meeting critical human needs into the future; • contributing to the development of alternative water supply proposals for the Lower Lakes communities; and • involvement in the management of water resources to protect water quality for urban purposes. The government’s new Office for Water Security, headed by the Commissioner for Water Security, has been established to provide a strategic focus on water security issues, including the development of a South Australian Water Security Plan, incorporating Water Proofing Adelaide and Water Proofing South Australia. The Office for Water Security, through the Water Security Council, is responsible for: • developing a state-wide water security plan to ensure water supplies for future population and economic growth; • leading the development of policy on water security matters for the government’s consideration; • implementing the National Water Initiative; and • assisting with the government’s emergency response to dry inflows in the Murray-Darling Basin. The Office for Water Security is also involved in progressing the national water reform projects developed by the COAG Climate Change and Water Group, as well as contributing to the development of the Murray-Darling Basin reform intergovernmental agreement. Work has commenced on scoping the state-wide water security plan, building on the government’s decisions to: • construct a seawater desalination plant for Adelaide to initially supply up to a quarter of Adelaide’s drinking water each year (50GL), expandable to 100GL; • initiate investigations into expanded storage capacity in the Mount Lofty Ranges; and • construct a pipeline to enable large volume transfers between the Happy Valley (southern) and Hope Valley (northern) water supply systems to provide an increased level of security for Adelaide’s water supply system. Water Proofing Adelaide continues to be implemented, with some aspects being accelerated and others requiring updates to take into account unprecedented drought conditions and to deliver on the commitment to periodically review and update the 63 strategies contained in the plan. To this end, the Office for Water Security is leading a review of Water Proofing Adelaide. Key highlights from Water Proofing Adelaide include: • commitment to extend the Virginia Pipeline Scheme to Angle Vale, delivering another three billion litres of recycled water for market garden use; • commitment of $30 million as the South Australian Government’s share of funding for the $60 million Glenelg to Adelaide Park lands recycled water project;

• SA Water’s $24 million H2OME Rebate Scheme, which brings forward some of the residential water savings for Water Proofing Adelaide; and • completion of the Adelaide Coastal Waters Study. Under the National Water Initiative a revised Compatible Water Registers project has been renegotiated with the Australian Government. The proposed water register will: • facilitate the implementation of the separate instruments associated with water access entitlements; • facilitate the availability of finance to, and business development in, the water industry by providing public and investor confidence in the security of entitlements and protection of third party interests; and • minimise transaction costs on water trades through streamlined administration, better information and access to that information and compatible regulatory and administrative arrangements across jurisdictions. COAG has resolved that state’s registers should be electronically compatible by April 2009.

11.57 DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Expenses Employee benefit expenses — Salaries, wages, annual and sick leave ...... 42 393 39 350 36 683 32 260 Long service leave ...... 1 339 1 167 1 095 1 572 Payroll tax ...... 2 188 2 157 2 137 2 087 Superannuation ...... 4 324 4 069 3 860 3 983 Other ...... 215 197 162 139 Supplies and services — General supplies and services ...... 48 932 56 043 47 483 38 584 Consultancy expenses ...... 308 420 — 369 Depreciation and amortisation expenses ...... 2 356 2 351 1 897 2 581 Grants and subsidies ...... 29 518 26 171 28 480 30 847 Intra government transfers ...... 8 993 8 867 8 733 6 466 Other expenses ...... 27 772 15 700 10 161 5 049

Total expenses 168 338 156 492 140 691 123 937

Income Taxation ...... 943 1 208 — 648 Commonwealth revenues ...... 19 520 12 739 12 925 7 971 Intra government transfers ...... 6 929 22 176 15 737 19 425 Other grants ...... 5 593 1 388 5 888 1 778 Fees, fines and penalties ...... 1 465 1 429 1 770 1 178 Sales of goods and services ...... 10 800 16 445 9 884 11 284 Interest revenues ...... — — — 211 Net gain or loss from disposal of assets ...... — — — 29 Other income ...... 1 700 20 083 1 683 1 357

Total income 46 950 75 468 47 887 43 881

Net cost of providing services 121 388 81 024 92 804 80 056

Income from / Expenses to SA Government Income — Appropriation ...... 94 888 96 812 92 038 92 753 Other income ...... — 45 — 716

Net income from / expenses to SA Government 94 888 96 857 92 038 93 469

Net result -26 500 15 833 -766 13 413

11.58 DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... 19 481 44 722 15 904 27 578 Receivables ...... 5 717 5 367 5 553 5 017 Inventories ...... 1 216 1 216 1 224 1 216 Other current assets ...... — — 16 —

Total current assets 26 414 51 305 22 697 33 811

Non current assets Land and improvements ...... 4 162 4 208 5 160 4 410 Plant and equipment ...... 60 939 62 053 69 537 62 962 Intangible assets ...... 4 801 4 950 — 5 299

Total non-current assets 69 902 71 211 74 697 72 671

Total assets 96 316 122 516 97 394 106 482

Liabilities Current liabilities Payables ...... 5 360 5 395 4 813 5 430 Employee benefits — Salaries and wages ...... 702 675 755 648 Annual leave ...... 2 588 2 561 1 442 2 535 Long service leave ...... 529 474 6 341 417 Short-term provisions ...... 148 141 300 133

Total current liabilities 9 327 9 246 13 651 9 163

Non current liabilities Long-term employee benefits — Long service leave ...... 8 254 8 044 993 7 932 Long-term provisions ...... 385 376 387 370

Total non-current liabilities 8 639 8 420 1 380 8 302

Total liabilities 17 966 17 666 15 031 17 465

Net assets 78 350 104 850 82 363 89 017

Equity Contributed capital ...... 8 164 8 164 8 164 8 164 Retained earnings ...... 45 906 72 406 50 129 56 573 Asset revaluation reserve ...... 24 280 24 280 24 070 24 280

Total equity 78 350 104 850 82 363 89 017

Balances as at 30 June end of period.

11.59 DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... 8 164 24 280 56 573 89 017 Adjustments ...... — — — —

Restated balance at 30 June 2007 8 164 24 280 56 573 89 017

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ...... — — 15 833 15 833

Total recognised income and expense for 2007-08 — — 15 833 15 833

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 8 164 24 280 72 406 104 850

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2008-09 ... — — — — Net result after restructure for 2008-09 ...... — — -26 500 -26 500

Total recognised income and expense for 2008-09 — — -26 500 -26 500

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 8 164 24 280 45 906 78 350

11.60 DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash outflows Employee benefit payments ...... 50 155 46 735 43 732 38 928 Supplies and services ...... 49 275 56 498 47 518 38 766 Grants and subsidies ...... 29 518 26 171 28 480 30 847 Net GST paid ...... — — — 463 Intra government transfers ...... 8 993 8 867 8 733 6 466 Other payments ...... 27 741 15 669 10 130 4 980

Cash used in operations 165 682 153 940 138 593 120 450

Cash inflows Taxation ...... 943 1 208 — 648 Intra government transfers ...... 6 929 22 176 15 737 19 424 Commonwealth receipts ...... 19 520 12 739 12 925 7 971 Other grants ...... 5 593 1 388 5 888 1 779 Fees, fines and penalties ...... 1 465 1 429 1 770 1 178 Sales of goods and services ...... 10 800 16 445 9 884 11 734 Interest received ...... — — — 200 Net GST received ...... — — — 70 Other receipts ...... 1 350 19 733 1 333 1 357

Cash generated from operations 46 600 75 118 47 537 44 361

SA GOVERNMENT: Appropriation ...... 94 888 96 812 92 038 92 753 Other receipts ...... — 45 — 716

Net cash provided by SA Government 94 888 96 857 92 038 93 469

Net cash provided by (+) / used (-) in operating activities -24 194 18 035 982 17 380

INVESTING ACTIVITIES: Cash outflows Purchase of property, plant and equipment ...... 1 047 891 785 1 662

Cash used in investing activities 1 047 891 785 1 662

Cash inflows Proceeds from sale of property, plant and equipment ...... — — — 822

Cash generated from investing activities — — — 822

Net cash provided by (+) / used in (-) investing activities -1 047 -891 -785 -840

Net increase (+) / decrease (-) in cash equivalents -25 241 17 144 197 16 540

Cash and cash equivalents at the start of the financial year 44 722 27 578 15 707 11 038

Cash and cash equivalents at the end of the financial year 19 481 44 722 15 904 27 578

11.61 ADMINISTERED ITEMS FOR THE DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Income from SA Government Income — Appropriation ...... 6 601 15 911 15 328 19 205

Net income from / expenses to SA Government 6 601 15 911 15 328 19 205

Income from other sources Taxation ...... 5 270 5 055 5 155 6 874 Commonwealth revenues ...... 15 200 30 150 28 850 34 664 Intra government transfers ...... 2 948 5 109 5 109 9 827 Other grants ...... — — — 2 087 Fees, fines and penalties ...... 1 134 1 106 1 106 1 195 Sales of goods and services ...... 191 186 186 255 Interest revenues ...... — — — 2 270 Net gain or loss from disposal of assets ...... — — — 48 Other income ...... 250 250 250 129

Total income from other sources 24 993 41 856 40 656 57 349

Total income 31 594 57 767 55 984 76 554

Expenses Employee benefit expenses — Salaries, wages, annual and sick leave ...... 1 154 1 136 1 949 1 163 Long service leave ...... 13 12 12 88 Payroll tax ...... 47 51 95 62 Superannuation ...... 134 132 203 100 Other ...... 3 21455 Supplies and services — General supplies and services ...... 2 229 2 174 1 224 1 167 Consultancy expenses ...... — — — 24 Depreciation and amortisation expenses ...... 1 360 1 360 1 360 1 691 Grants and subsidies ...... 16 980 4 720 14 780 6 864 Intra government transfers ...... 27 996 58 565 51 835 65 886 Other expenses ...... 1 354 1 327 1 327 461

Total expenses 51 270 69 479 72 799 77 561

Net result -19 676 -11 712 -16 815 -1 007

11.62 ADMINISTERED ITEMS FOR THE DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... 12 539 31 311 21 513 42 136 Receivables ...... 5 128 5 084 3 553 5 013 Inventories ...... 274 274 28 274

Total current assets 17 941 36 669 25 094 47 423

Non current assets Land and improvements ...... 33 386 33 386 31 687 33 386 Plant and equipment ...... 29 232 30 180 30 279 31 138

Total non-current assets 62 618 63 566 61 966 64 524

Total assets 80 559 100 235 87 060 111 947

Liabilities Current liabilities Payables ...... 2 388 2 388 748 2 388 Employee benefits — Salaries and wages ...... 3 3243 Annual leave ...... 74 74 122 74 Long service leave ...... 57 57 258 57 Superannuation ...... — — 6 — Other ...... 5 545

Total current liabilities 2 527 2 527 1 162 2 527

Non current liabilities Long-term employee benefits — Long service leave ...... — — 6 —

Total non-current liabilities — — 6 —

Total liabilities 2 527 2 527 1 168 2 527

Net assets 78 032 97 708 85 892 109 420

Equity Retained earnings ...... 66 629 86 305 74 489 98 017 Asset revaluation reserve ...... 11 403 11 403 11 403 11 403

Total equity 78 032 97 708 85 892 109 420

Balances as at 30 June end of period.

11.63 ADMINISTERED ITEMS FOR THE DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... — 11 403 98 017 109 420 Adjustments ...... — — — —

Restated balance at 30 June 2007 — 11 403 98 017 109 420

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ...... — — -11 712 -11 712

Total recognised income and expense for 2007-08 — — -11 712 -11 712

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 — 11 403 86 305 97 708

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2008-09 ... — — — — Net result after restructure for 2008-09 ...... — — -19 676 -19 676

Total recognised income and expense for 2008-09 — — -19 676 -19 676

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 — 11 403 66 629 78 032

11.64 ADMINISTERED ITEMS FOR THE DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash inflows Taxation ...... 5 199 4 984 5 084 5 313 Intra government transfers ...... 2 948 5 109 5 109 9 827 Commonwealth receipts ...... 15 200 30 150 28 850 34 664 Other grants ...... — — — 2 280 Fees, fines and penalties ...... 1 161 1 106 1 106 670 Sales of goods and services ...... 191 186 186 258 Interest received ...... — — — 2 215 Net GST received ...... — — — 126 Other receipts ...... 250 250 250 465

Cash generated from operations 24 949 41 785 40 585 55 818

Cash outflows Employee benefit payments ...... 1 351 1 333 2 273 1 367 Supplies and services ...... 2 229 2 174 1 224 3 517 Grants and subsidies ...... 16 980 4 720 14 780 5 378 Net GST paid ...... — — — 125 Intra government transfers ...... 27 996 58 565 51 835 65 886 Other payments ...... 1 354 1 327 1 327 33

Cash used in operations 49 910 68 119 71 439 76 306

SA GOVERNMENT: Appropriation ...... 6 601 15 911 15 328 19 205

Net cash provided by SA Government 6 601 15 911 15 328 19 205

Net cash provided by (+) / used in (-) operating activities -18 360 -10 423 -15 526 -1 283

INVESTING ACTIVITIES: Cash inflows Proceeds from sale of property, plant and equipment ...... — — — 57

Cash generated from investing activities — — — 57

Cash outflows Purchase of property, plant and equipment ...... 412 402 402 605

Cash used in investing activities 412 402 402 605

Net cash provided by (+) / used in (-) investing activities -412 -402 -402 -548

Net increase (+) / decrease (-) in cash equivalents -18 772 -10 825 -15 928 -1 831

Cash and cash equivalents at the start of the financial year 31 311 42 136 37 441 43 967

Cash and cash equivalents at the end of the financial year 12 539 31 311 21 513 42 136

11.65

AGENCY: DEPARTMENT OF WATER, LAND AND BIODIVERSITY CONSERVATION

Financial Commentary — major variations

The following commentary relates to Agency Financial Statements presented in the previous section. The discussion relates to variations between the 2007-08 Estimated Result and the 2008-09 Budget.

The Administered Items include the income, expenses, assets, liabilities and cash flows pertaining to the South Eastern Water Conservation and Drainage Board; the Dog Fence Board and the Native Vegetation Fund. This differs from the Department of Water, Land and Biodiversity Conservation general purpose financial reports, which do not recognise these reporting entities as administered.

Income statement — Controlled

Expenditure

The increase in operating expenses of $11.8 million between the 2007-08 Estimated Result and the 2008-09 Budget is primarily attributed to:

• increased water acquisition through the Save the River Murray Program and The Living Murray Initiative ($12.0 million);

• the state’s contribution to the River Murray flows pursuant to the Bracks/Rann Agreement ($9.2 million); and

• expenditure relating to increased National Water Initiative funding ($4.7 million).

These increases in expenditure are offset in part by:

• once-off expenditure in 2007-08 for the pumping of water from Lake Alexandrina to Lake Albert ($6.0 million); and

• reduced expenditure on projects under the National Action Plan for Salinity and Water Quality and National Heritage Trust programs consistent with the wind down in these Commonwealth programs through to 31 December 2009 (approximately $9.3 million).

Revenue

The decrease in income of $28.5 million between the 2007-08 Estimated Result and the 2008-09 Budget is mainly attributed to:

• once-off contributions in 2007-08 from other jurisdictions for The Living Murray Initiative ($18.4 million);

• once-off funding in 2007-08 from the Murray-Darling Basin Commission to pump water from Lake Alexandrina to Lake Albert ($6.0 million); and

• reduced funding for National Action Plan for Salinity and Water Quality and National Heritage Trust programs consistent with the wind down in these Commonwealth programs through to 31 December 2009 (approximately $11.0 million).

11.66

This is offset in part by additional Commonwealth funding for various National Water Initiative agreements ($6.8 million).

Balance sheet — Controlled

The decrease in the net assets position of $26.2 million, primarily due to:

• a reduction in cash holdings, represented by expenditure for The Living Murray Initiative ($12.5 million), the Bracks/Rann Agreement ($9.2 million) and the National Action Plan for Salinity and Water Quality program in the Upper South East; and

• a decrease in plant and equipment, due to normal attrition.

Statement of changes in equity — Controlled

The explanation regarding the decrease in net equity from 2007-08 to 2008-09 is consistent with the commentary provided for the Balance sheet above.

Cash flow statement — Controlled

The major variations described in the Cash flow statement are reflective of the variations in the Income statement.

Income statement — Administered Items

Expenditure

The decrease in operating expenses of $18.2 million between the 2007-08 Estimated Result and the 2008-09 Budget is primarily attributed to the wind down in the existing National Action Plan for Salinity and Water Quality and National Heritage Trust programs ($36.8 million).

This is partially offset by additional expenditure related to the new Caring for our Country program ($15.2 million).

Revenue

The decrease in income of $16.9 million between the 2007-08 Estimated Result and the 2008-09 Budget is mainly attributed to the decline in Commonwealth revenues of $30.2 million, reflecting the wind down in the existing National Action Plan for Salinity and Water Quality and National Heritage Trust programs, which cease in their current form on 30 June 2008. This is partially offset by additional Commonwealth revenues related to the new Caring for our Country program ($15.2 million).

The government’s drought relief measures for water-based levies, received in 2007-08 as a transfer from the Department of Primary Industries and Resources, is now being received directly as appropriation resulting in a decrease in Intra-government transfers ($2.2 million).

11.67

Balance sheet — Administered Items

The Balance sheet shows a decrease in the net assets position of $19.7 million, which reflects a corresponding decrease in cash holdings.

This is represented by the National Action Plan for Salinity and Water Quality and National Heritage Trust single holding account cash balances, consistent with the wind down in these Commonwealth programs through to 31 December 2009.

Statement of changes in equity — Administered Items

The Statement of changes in equity reflects a reduction in total equity in line with the use of cash holdings to fund the remaining National Action Plan for Salinity and Water Quality and National Heritage Trust program expenditure to 31 December 2009.

Cash flow statement — Administered Items

The major variations described in the Cash flow statement are reflective of the variations in the Income statement.

Additional Information for Administered Items

Detailed information on Administered Items is included in the following table.

11.68

Additional Information for Administered Items Department of Water, Land and Biodiversity Conservation

Cash flow statement

2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result $000 $000 $000 $000 CASH FLOWS FROM: Operating activities Receipts Taxation — NRM Levy...... 5 199 4 984 5 084 5 313 Fines and Penalties — NRM Levy...... 1 131 1 077 1 077 254 Native Vegetation Fund ...... — — — 40 Grants — National Action Plan (NAP) for Salinity and Water Quality .... — 9 950 9 950 15 196 NRM Fund...... 2 948 2 957 2 957 3 780 Eyre Peninsula Bushfire Funding...... — — — 779 Natural Heritage Trust ...... — 20 200 18 900 20 707 Mt Lofty Ranges INRM...... — — — 101 South Eastern Water Conservation and Drainage Board...... — — — 1 922 Centre for Natural Resource Management...... — — — 3 669 Drought Relief (in lieu of NRM Levy) ...... — 2 152 2 152 — Caring for Our Country...... 15 200 —— — Dog Fence Board ...... — — — 424 Native Vegetation Fund ...... — — — 193 Sales of goods and services — South Eastern Water Conservation and Drainage Board...... 191 186 — 228 Mt Lofty Ranges INRM...... — — — 26 Dog Fence Board ...... — —— 4 Native Vegetation Fund ...... — — 186 — Regulatory Fees ...... 30 29 29 376 Interest Commonwealth Programs...... — — — 2 080 Dog Fence Board ...... — — — 19 Native Vegetation Fund ...... — — — 116 State Government — Appropriation — NRM Boards...... 2 618 400 400 1 258 Qualco Sunlands ...... 250 250 250 250 Minister’s Salary...... 269 264 250 243 South Eastern Water Conservation and Drainage Board...... 1 921 1 922 1 922 1 922 Native Vegetation Fund ...... 562 830 830 855 National Action Plan for Salinity and Water Quality...... — 11 243 11 243 14 252

11.69

Additional Information for Administered Items Department of Water, Land and Biodiversity Conservation

Cash flow statement

2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result $000 $000 $000 $000 Payroll Tax Subsidy paid to NRM Boards...... 978 993 424 416 Pastoral Board...... 3 99 9 Net GST Received ...... — — — 126 Other ...... 250 250 250 465 Total operating receipts 31 550 57 696 55 913 75 023

Payments Employee payments — Ministers Salary ...... 269 264 250 237 Dog Fence Board ...... 150 — — 163 South Eastern Water Conservation and Drainage Board...... — — 910 967 Supplies and services — Qualco Sunlands ...... 250 250 250 215 South Eastern Water Conservation and Drainage Board...... 1 512 1 525 619 698 Mt Lofty Ranges INRM...... — — — 566 Native Vegetation Fund ...... 102 102 1 002 36 NRM Fund...... — — — 69 Natural Heritage Trust ...... — — — 1 752 Dog Fence Board ...... — — — 161 Land Technology Alliances ...... — — — 20 Grants and subsidies — South Eastern Water Conservation and Drainage Board...... 1 921 — — 1 922 Centre for Natural Resource Management...... — — — 4 014 Natural Heritage Trust ...... 6 600 20 237 19 500 21 201 NAP for Salinity and Water Quality ...... 12 000 35 164 39 700 29 792 Payroll Tax paid to NRM Boards...... 978 993 424 713 Mt Lofty Ranges INRM...... — — — 137 NRM Fund...... 8 274 7 348 7 448 9 917 Eyre Peninsula Bushfire Funding...... — — — 2 084 Caring for Our Country...... 15 200 —— — Dog Fence Board ...... 397 — — 611 Pastoral Board...... 3 99 — Native Vegetation Fund ...... 900 900 — 873 Net GST Paid...... — — — 125 Other ...... — — — 33 Qualco Sunlands – payments to consolidated account...... 250 250 250 — NRM Penalties...... 1 104 1 077 1 077 — Total operating payments 49 910 68 119 71 439 76 306 Net cash provided by operating activities -18 360 -10 423 -15 526 -1 283

11.70

Additional Information for Administered Items Department of Water, Land and Biodiversity Conservation

Cash flow statement

2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result $000 $000 $000 $000

Investing activities Payments Purchase of Property, Plant and Equipment...... Pastoral Board...... 3 33 — South Eastern Water Conservation and Drainage Board...... 409 399 399 605 Total investing payments 412 402 402 605

Receipts Proceeds from Sale of Property, Plant and Equipment South Eastern Water Conservation and Drainage Board...... — — — 57 Total Receipts — — — 57 Net cash provided by (+) / used in (-) investing activities -412 -402 -402 -548

Net Increase (+) / decrease (-) in cash held -18 772 -10 825 -15 928 -1 831 Opening cash balance as at 1 July 31 311 42 136 37 441 43 967 Closing cash balance as at 30 June 12 539 31 311 21 513 42 136

11.71

TABLE OF CONTENTS

AGENCY: ENVIRONMENT PROTECTION AUTHORITY

Objective ...... 11.73

Targets / Highlights...... 11.73

Program Net Cost of Services Summary...... 11.74

Investing Payments Summary...... 11.74

Program Information — includes description/objective, Summary income statement, sub-program information including performance criteria

1. Environment and Radiation Protection...... 11.75

Financial Statements

Income statement ...... 11.79

Balance sheet...... 11.80

Statement of changes in equity ...... 11.81

Cash flow statement...... 11.82

Income statement — Administered Items...... 11.83

Balance sheet — Administered Items...... 11.84

Statement of changes in equity — Administered Items...... 11.85

Cash flow statement — Administered Items ...... 11.86

Financial Commentary...... 11.87

11.72

PORTFOLIO: ENVIRONMENT AND CONSERVATION AND THE RIVER MURRAY

Agency: Environment Protection Authority

Objective

To achieve a clean, healthy and valued environment that supports social and economic prosperity for all South Australians.

2008-09 Targets / 2007-08 Highlights

Targets 2008-09 Highlights 2007-08

• Develop and implement a plan to act on recommendations from • Completed the review of the Environment Protection Authority EPA’s review on licensing systems and processes (EPA) licensing systems and processes • Train staff on the EPA Service Charter • Completed the EPA Service Charter • Introduce a new fee structure on 1 July 2008 • The Environment Protection (Site Contamination) Amendment • Implement regulations to increase deposit refund amount on Act was assented to on 1 November 2007. Some provisions drink containers came into operation on 10 December 2007. • Prepare Environment Protection (Waste to Resources) Policy • Implemented the Environment Protection (Noise) Policy on 31 March 2007 • Review Environment Protection (Water Quality) Policy • Completed a review and introduced to Parliament proposed • Review Environment Protection (Air Quality) Policy changes to the administration of the Beverage Container • Commence a review of the Environment Protection Act 1993 provisions of the Environment Protection Act 1993 • Review activities of environmental significance for regulation, • Completed the Kangaroo Island Business including desalination plants Sustainability - Greening The Supply Chain Project • Deliver the State of the Environment Report 2008-2013 • Implemented the Environment Protection (Used Packaging) Policy in March 2007 • Implement Environment Protection (Board of Authority) Amendment Bill 2008 • Endorsed recommended improvements to the framework for waste management and resource recovery functions • Review Radiation Protection Control Act 1982 • Introduced the revised National Pollution Inventory • Deliver a new EPA website (NPI) - National Environment Protection Measure • Implement the Waste Resources Recovery Reform project • Implement the Adelaide Coastal Water Quality Improvement Plan

11.73

Program net cost of services summary

Net Cost of Services 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Program $000 $000 $000 $000

1. Environment and Radiation Protection 3 873 6 441 3 765 8 957 Total 3 873 6 441 3 765 8 957

Investing payments summary

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Investments $000 $000 $000 $000

New Works Accommodation Fit-out 5 256 — — — Total New Works 5 526 — — —

Annual Programs 512 588 496 496 Total Investing Payments 5 768 588 496 496

11.74

AGENCY: ENVIRONMENT PROTECTION AUTHORITY

Program Information

Program 1: Environment and Radiation Protection

Description/Objective: To achieve a clean, healthy and valued environment that supports social and economic prosperity for all South Australians.

Summary income statement

Program 1: Environment and Radiation 2008-09 2007-08 2007-08 2006-07 Protection Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 19 582 19 290 19 127 17 673 Supplies and services...... 6 871 7 564 5 900 6 212 Grants and subsidies ...... 180 662 180 317 Depreciation and amortisation...... 1 499 1 062 1 062 871 Other...... 11 807 11 604 11 603 5 857 Total expenses 39 939 40 182 37 872 30 930 Income Sale of goods and services...... 351 370 380 491 Fees, fines and penalties ...... 34 984 32 441 33 017 20 404 Commonwealth revenue ...... 113 263 90 277 Other...... 618 667 620 801 Total income 36 066 33 741 34 107 21 973 Net cost of providing services 3 873 6 441 3 765 8 957

11.75

Sub-program information

Sub-program: 1.1 Environment Protection

The Environment Protection Authority (EPA) exercises the powers, functions and duties of the Environment Protection Act 1993 to minimise, monitor and evaluate human impacts on the environment by: • administering and enforcing the Act; • licensing, inspecting and auditing activities that have an impact on the environment; • undertaking environmental assessment of new developments; • delivering avoidance and reduction programs for water, catchments, air, noise and waste; • promoting industry eco-efficiency training programs; • providing support to local government; • monitoring and reporting on air and water quality; • assessing and reporting on industry monitoring programs; • delivery of a program of works to improve water quality in the Mount Lofty Ranges watershed and Murraylands; • development of statutory and non-statutory environmental policies; and • undertaking State of the Environment Reporting. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program(a) $3 740 000 $6 297 000 $3 607 000 $8 797 000

Performance Commentary The EPA has continued its program to identify and implement key performance indicators. New indicators for the core environmental areas have been identified and data collected during the last 12 months. A major review of the licensing system, using a risk-based approach, resulted in the three tier system, a fee structure which reflects environmental impact and an inspection regime with a focus on high risk sites. The EPA Board continued its program of broad based stakeholder consultation in regional and metropolitan South Australia, culminating in a successful Round-table Conference, held in May, that focussed on service delivery in a regulatory environment and the potential for, and risks associated with, ‘regulatory capture’. In addition, the EPA Board has focussed on its governance arrangement and understanding the likely impact of separating the role of the Chair and Chief Executive as foreshadowed in pending legislation. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Improve air quality in Adelaide excluding Reduce number 4 exceedences at Reduce number Nil exceedences natural events (eg bushfires and dust storms) of exceedences Kensington and 9 at of exceedences of at Kensington of the air quality Netley the air quality and 13 at Netley NEPM particle NEPM particle standard standard by 2008 Improved air quality in Port Pirie as measured by the annual average concentration for airborne lead(b) • Frank Green Park progressive 0.12 μg/m3 progressive 0.20 μg/m3 reduction reduction • Port Pirie Oliver Street progressive 0.42 μg/m3 progressive 0.56 μg/m3 reduction reduction • Pirie West Primary School progressive 0.36 μg/m3 progressive 0.41 μg/m3 reduction reduction Improved air quality in the eastern end of No more than 10 23 exceedences of No more than 31 exceedences Whyalla exceedences of the PM10 particle 5 exceedences of of the PM10 the PM10 criterion at the Walls PM10 particle particle criterion particle criterion Street site per annum of at the Walls 50 μg/m3 Street site criterion at the Walls St site by the end of 2008

continued

11.76

Sub-program: 1.1 Environment Protection continued

2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual • Percentage of priority water bodies Agreed 5% of priority water Agreed n.a.(d) where community agreed environmental environmental bodies have environmental values and water quality objectives have values environmental values developed been developed(c) developed for values and water for 20% of 20% of priority quality objectives priority water water bodies developed bodies • Percentage of water bodies meeting 40% of water 33% of water bodies 33% of water n.a.(d) water quality objectives(e) bodies meet meet water quality bodies meet water quality objectives water quality objectives objectives • Percentage change in the key pollutant No increase No increase(g) No increase n.a.(d) load from major point source (Authorisation Holders) reporting to the National Pollutant Inventory over the five year timeframe comparing 2002-07(f) • Ensure activities of licensees comply 1050 inspections 1080 inspections 1050 inspections 1465 (As at with the Act, through inspections of covering higher covering higher risk covering higher March 2007) licensed premises, audits and other risk sites sites risk sites inspections environmental measures covering at least 45 per cent of all licensees(d) • Percentage of Development Plan 100% 100% 100% n.a. amendment responses made within statutory timeframes • Percentage of development applications 100% 96% 100% 99% responses and approvals made within statutory timeframe • Support to local government to deliver 50 councils 50 councils 50 councils 50 councils local environment protection services supported by supported by EPA supported by supported by EPA EPA EPA

Footnotes (a) The net cost of the sub-program has reduced significantly in 2008-09 in comparison to the 2007-08 Estimated Result due to increases in revenue from annual fees and charges. The revenue is recognised in its entirety within the EPA, with 50 per cent being transferred to Zero Waste SA in accordance with legislation. The revenue increase is slightly offset by drought affected licences and waste levies not received from regional councils. (b) The target is a progressive reduction of airborne lead based on the actual figures. The National Environment Protection Measure (NEPM) Standard is 0.5 micrograms per metre cubed (μg/m3). (c) Priority water bodies include Mount Lofty Ranges Watershed, Adelaide Coastal Waters, Port waterways, Murraylands and Willunga Basin. (d) Indicator commenced in 2007-08. (e) Based on National Water Quality Management Strategy. (f) Key pollutant loads for water: Copper and compounds (Cu), Lead and compounds (Pb), Zinc and compounds (Zn), Total Nitrogen (TN), Total Phosphorous (TP). Key pollutant loads for air: Carbon Monoxide (CO), Lead and compounds (Pb), Oxides of Nitrogen (Nox), Sulfur dioxide (SO2), Total Volatile Organic (TVOs), Particulate Matter 10. 0 μm (PM10).

(g) No increase in levels for air (Cu, Pb, Zn, TN, TP) or water: (CO, Pb, Nox, SO2, TVOs) for NPi report 2002-07. During the same period Particulate Matter 10. 0 μm (PM10) increased by 43 per cent.

11.77

Sub-program: 1.2 Radiation Protection

The EPA exercises the powers, functions and duties of the Radiation Protection and Control Act 1982 to minimise adverse impacts of radiation on human health and the environment by: • administration and enforcement of the Act; • assessment of applications for new radiation sources, premises and users; • monitoring and surveillance of radiation management at operating uranium mines and former mining and milling sites; • monitoring and surveillance of radiation use by industry, science, medicine, the public and in the environment; • development of options and assessment of proposals for radioactive waste management; • assessment of proposals for new projects involving radiation or radioactive materials; • development and review of statutory and non-statutory radiation protection policies; and • provision of advice on ionising and non-ionising radiation protection to government departments, workers, industry and the public. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $133 000 $144 000 $158 000 $160 000

Performance Commentary In 2007-08 the EPA in its radiation protection program: • prepared regulations under the Radiation Protection and Control Act 1982 for the control of solaria; • contributed to the Olympic Dam expansion Environmental Impact Statement assessment; • contributed to national Codes of Practice and national uniformity issues; • supported the appointment of a new statutory Radiation Protection Committee membership for a three year period; and • delivered radiation emergency training to South Australian Police Department and the Metropolitan Fire Service. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Ensure radioactive sources, premises and 100% of new 100% of new 100% of new 100% of new users of radiation comply with the Radiation sources and user sources and user sources and user sources and user Protection and Control Act 1982 through applications applications assessed applications applications assessments, inspections and audits assessed assessed assessed Ensure licensed uranium mines and 100% of 100% of radiation 100% of radiation 100% of proposals for new projects comply with the radiation reports reports from reports from radiation reports Radiation Protection and Control Act 1982 from uranium uranium mines and uranium mines from uranium mines and all all new projects are and all new mines and all new projects are assessed projects are new projects are assessed assessed assessed Ensure X-ray machines comply with 100% new 100% new machines 100% new 100% new regulations machines registered machines machines registered registered registered

11.78 ENVIRONMENT PROTECTION AUTHORITY

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Expenses Employee benefit expenses — Salaries, wages, annual and sick leave ...... 18 539 18 228 18 069 13 919 Long service leave ...... 526 486 486 653 Payroll tax ...... 72 60 62 907 Superannuation ...... 224 180 179 1 726 Other ...... 221 336 331 468 Supplies and services — General supplies and services ...... 6 871 7 564 5 900 6 212 Consultancy expenses ...... — 90 — 31 Depreciation and amortisation expenses ...... 1 499 1 062 1 062 871 Grants and subsidies ...... 180 662 180 317 Intra government transfers ...... 11 655 11 297 11 386 5 682 Other expenses ...... 152 217 217 144

Total expenses 39 939 40 182 37 872 30 930

Income Commonwealth revenues ...... 113 263 90 277 Intra government transfers ...... 476 533 486 667 Fees, fines and penalties ...... 34 984 32 441 33 017 20 404 Sales of goods and services ...... 351 370 380 491 Interest revenues ...... 94 89 89 93 Net gain or loss from disposal of assets ...... — — — -60 Other income ...... 48 45 45 101

Total income 36 066 33 741 34 107 21 973

Net cost of providing services 3 873 6 441 3 765 8 957

Income from / Expenses to SA Government Income — Appropriation ...... 3 873 4 799 4 331 9 441 Other income ...... — 12 — 447

Net income from / expenses to SA Government 3 873 4 811 4 331 9 888

Net result — -1 630 566 931

11.79 ENVIRONMENT PROTECTION AUTHORITY

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... 6 381 6 441 6 090 7 429 Receivables ...... 1 377 1 377 1 080 1 377 Other current assets ...... 139 139 120 139

Total current assets 7 897 7 957 7 290 8 945

Non current assets Financial assets ...... 5 555 Land and improvements ...... 5 367 374 323 374 Plant and equipment ...... 1 087 1 811 1 692 2 285 Heritage assets ...... 4 464 Intangible assets ...... 721 721 694 721

Total non-current assets 7 184 2 915 2 720 3 389

Total assets 15 081 10 872 10 010 12 334

Liabilities Current liabilities Payables ...... 1 471 1 471 1 835 1 471 Employee benefits — Salaries and wages ...... 292 292 276 292 Annual leave ...... 1 137 1 125 705 1 112 Long service leave ...... 135 121 232 109 Short-term provisions ...... 30 29 35 28 Other current liabilities ...... 366 299 195 299

Total current liabilities 3 431 3 337 3 278 3 311

Non current liabilities Long-term employee benefits — Long service leave ...... 3 826 3 666 3 054 3 525 Long-term provisions ...... 80 78 -24 77 Other non-current liabilities ...... 866 — — —

Total non-current liabilities 4 772 3 744 3 030 3 602

Total liabilities 8 203 7 081 6 308 6 913

Net assets 6 878 3 791 3 702 5 421

Equity Contributed capital ...... 3 087 — — — Retained earnings ...... 2 570 2 570 2 480 4 200 Asset revaluation reserve ...... 1 221 1 221 1 222 1 221

Total equity 6 878 3 791 3 702 5 421

Balances as at 30 June end of period.

11.80 ENVIRONMENT PROTECTION AUTHORITY

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... — 1 221 4 200 5 421 Adjustments ...... — — — —

Restated balance at 30 June 2007 — 1 221 4 200 5 421

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ...... — — -1 630 -1 630

Total recognised income and expense for 2007-08 — — -1 630 -1 630

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 — 1 221 2 570 3 791

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2008-09 ... — — — — Net result after restructure for 2008-09 ...... — — — —

Total recognised income and expense for 2008-09 — — — —

Equity contributions from SA Government ...... 3 087 — — 3 087 Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 3 087 1 221 2 570 6 878

11.81 ENVIRONMENT PROTECTION AUTHORITY

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash outflows Employee benefit payments ...... 19 398 19 127 18 964 16 881 Supplies and services ...... 5 938 7 654 5 900 6 850 Grants and subsidies ...... 180 662 180 317 Intra government transfers ...... 11 655 11 297 11 386 5 682 Other payments ...... 147 212 212 142

Cash used in operations 37 318 38 952 36 642 29 872

Cash inflows Intra government transfers ...... 476 533 486 667 Commonwealth receipts ...... 113 263 90 277 Fees, fines and penalties ...... 34 984 32 441 33 017 20 404 Sales of goods and services ...... 351 370 380 337 Interest received ...... 94 89 89 95 Other receipts ...... 48 45 45 101

Cash generated from operations 36 066 33 741 34 107 21 881

SA GOVERNMENT: Appropriation ...... 3 873 4 799 4 331 9 441 Other receipts ...... — 12 — 447

Net cash provided by SA Government 3 873 4 811 4 331 9 888

Net cash provided by (+) / used (-) in operating activities 2 621 -400 1 796 1 897

INVESTING ACTIVITIES: Cash outflows Purchase of property, plant and equipment ...... 5 768 588 496 496 Advances paid ...... — — — -23

Cash used in investing activities 5 768 588 496 473

Net cash provided by (+) / used in (-) investing activities -5 768 -588 -496 -473

FINANCING ACTIVITIES: Cash inflows Capital contributions from SA Government ...... 3 087 — — —

Cash generated from financing activities 3 087 — — —

Net cash provided by (+) / used in (-) financing activities 3 087 — — —

Net increase (+) / decrease (-) in cash equivalents -60 -988 1 300 1 424

Cash and cash equivalents at the start of the financial year 6 441 7 429 4 790 6 005

Cash and cash equivalents at the end of the financial year 6 381 6 441 6 090 7 429

11.82 ADMINISTERED ITEMS FOR THE ENVIRONMENT PROTECTION AUTHORITY

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Income from other sources Intra government transfers ...... — — — 18

Total income from other sources — — — 18

Total income — — — 18

Expenses Supplies and services — General supplies and services ...... — 170 — 3 Consultancy expenses ...... — — — 222

Total expenses — 170 — 225

Net result — -170 — -207

11.83 ADMINISTERED ITEMS FOR THE ENVIRONMENT PROTECTION AUTHORITY

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... — — — 170

Total current assets — — — 170

Total assets — — — 170

Net assets — — — 170

Equity Retained earnings ...... — — — 170

Total equity — — — 170

Balances as at 30 June end of period.

11.84 ADMINISTERED ITEMS FOR THE ENVIRONMENT PROTECTION AUTHORITY

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... — — 170 170 Adjustments ...... — — — —

Restated balance at 30 June 2007 — — 170 170

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ...... — — -170 -170

Total recognised income and expense for 2007-08 — — -170 -170

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 — — — —

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2008-09 ... — — — — Net result after restructure for 2008-09 ...... — — — —

Total recognised income and expense for 2008-09 — — — —

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 — — — —

11.85 ADMINISTERED ITEMS FOR THE ENVIRONMENT PROTECTION AUTHORITY

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash inflows Intra government transfers ...... — — — 18 Interest received ...... — — — 2

Cash generated from operations — — — 20

Cash outflows Supplies and services ...... — 170 — 249

Cash used in operations — 170 — 249

Net cash provided by (+) / used in (-) operating activities — -170 — -229

Net increase (+) / decrease (-) in cash equivalents — -170 — -229

Cash and cash equivalents at the start of the financial year — 170 — 399

Cash and cash equivalents at the end of the financial year — — — 170

11.86

AGENCY: ENVIRONMENT PROTECTION AUTHORITY

Financial Commentary — major variations

The following commentary relates to the Agency Financial Statements presented in the previous section. The discussion relates to variations between the 2007-08 Estimated Result and the 2008-09 Budget.

Income statement — Controlled

Expenditure

No major variations.

Revenue

The 2008-09 Budget has increased from the 2007-08 Estimated Result. This increase is from volume changes identified in the annual fees and charges process and CPI increases for other regulatory fees. This additional revenue is partially offset by a decrease in licence fee revenue from drought affected licensees and from waste levies to be received from regional councils.

Balance sheet — Controlled

The balance sheet reflects an increase in net assets for 2008-09 compared to the 2007-08 Estimated Result. This is predominantly from the increased cost of fit out and move to a new building in 2008-09.

Statement of changes in equity — Controlled

The commentary regarding the Income statement above provides information regarding the major variations for movements in retained earnings.

Cash flow statement — Controlled

The commentary regarding the Income statement above provides information regarding the major variations for the cash inflows from operating activities.

Income statement — Administered Items

The variation in expenditure between the 2008-09 Budget and the 2007-08 Estimated Result is due to the Adelaide Coastal Waters Study being completed in 2007-08.

Balance sheet — Administered Items

Net Assets for both the 2008-09 Budget and the 2007-08 Estimated Result are nil due to the Adelaide Coastal Waters Study being completed in 2007-08.

11.87

Statement of changes in equity — Administered Items

The movement in retained earnings is reflective of the run down in cash balance of the Adelaide Coastal Waters Study as it is completed.

Cash flow statement — Administered Items

The commentary regarding the Income statement above provides information regarding the major variations for the cash outflows from operating activities.

Additional information — Administered Items

Detailed information on Administered items is included in the following table.

11.88

Additional Information for Administered Items Environment Protection Authority

Cash flow statement

2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result $000 $000 $000 $000 CASH FLOWS FROM: Operating activities Receipts Other — Adelaide Coastal Waters Study...... — — — 18 Interest received — Adelaide Coastal Waters Study...... — — — 2 Total operating receipts — — — 20

Payments Supplies and services — Adelaide Coastal Waters Study...... — 170 — 249 Total operating payments — 170 — 249

Net cash provided by operating activities — -170 — -299

Net Increase (+) / decrease (-) in cash held — -170 — -299 Opening cash balance as at 1 July — 170 — 299 Closing cash balance as at 30 June — — — —

11.89

TABLE OF CONTENTS

AGENCY: ZERO WASTE SA

Objective ...... 11.91

Targets / Highlights...... 11.91

Program Net Cost of Services Summary...... 11.92

Investing Payments Summary...... 11.92

Program Information — includes description/objective, summary income statement, sub-program information including performance criteria

1. Waste Reduction and Resource Recovery ...... 11.93

Financial Statements

Income statement ...... 11.95

Balance sheet...... 11.96

Statement of changes in equity ...... 11.97

Cash flow statement...... 11.98

Financial Commentary...... 11.99

11.90

PORTFOLIO: ENVIRONMENT AND CONSERVATION AND THE RIVER MURRAY

AGENCY: ZERO WASTE SA

Objective

To eliminate waste or its consignment to landfill and advance the development of resource recovery and recycling based on an integrated strategy for the state.

2008-09 Targets / 2007-08 Highlights

Targets 2008-09 Highlights 2007-08

• Finalise the mid-term review of South Australia’s Waste • Completed a disposal based survey of waste disposed of to Strategy 2005-2010 and commence planning for the landfills and transfer stations within the Adelaide metropolitan development of the new South Australia’s Waste Strategy area for 2007 beyond 2010 • Negotiated an agreement with University SA for the • Undertake a review of the reuse and recycling infrastructure establishment of a ‘centre of excellence’ in waste avoidance needs for metropolitan Adelaide beyond 2009 and resource efficiency • Continue with the provision of financial assistance to • Completed a review of the Wipe Out Waste program in encourage the enhanced recovery of materials from country primary and secondary schools across South Australia South Australia as part of Zero Waste SA regional • Provided funding for the continuation of the household and implementation program farm chemical collection service across South Australia • Provide funding to metro and non metro councils to pilot the • Refocused the kerbside performance incentive scheme to target incorporation of domestic food waste with the kerbside green collection of food waste from householders through the organics bin collections existing green organics service • Provide assistance to over 100 businesses and institutions • Developed a resource efficiency assistance program to under the resource efficiency and assistance program to encourage adoption of waste avoidance and resource efficiency encourage adoption of waste avoidance and resource efficiency sustainability practices by South Australian businesses and sustainability practices industry, including exploring linkages with water, energy and • Develop an incentive program to encourage effective collection transport sustainability activities systems to increase recycling from the commercial and • Developed a preliminary plan for an awareness campaign to industrial sector inform retailers/businesses and general community of the ban • Undertake a media campaign to assist in preparing the of plastic shopping bags in the lead up to a ban commencing community and retailers in the lead up to a ban of single use 2009 lightweight plastic shopping bags commencing 2009 • Provided financial assistance to encourage the enhanced • Continue to provide funding for the household and farm recovery of materials from country South Australia as part of chemicals collection service across South Australia and Zero Waste SA regional implementation program examine future options • Continued to provide grants and incentives for the development • Implement the development of Zero Waste SA data of necessary resource recovery and recycling infrastructure management and reporting system for the collection, analysis within the Adelaide metropolitan area and reporting of waste and recycling data for South Australia • Increased awareness amongst the South Australian community • Continue to provide funding assistance through grants to about sustainable behaviour through the Zero Waste SA councils that are faced with illegal dumping issues Lifeline public artwork initiative in the Range Wetlands, • The Wipe Out Waste program will continue to focus on Wingfield area regional and metropolitan schools spanning kindergarten through to primary and secondary schools

11.91

Program net cost of services summary

Net Cost of Services 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Program $000 $000 $000 $000

1. Waste Reduction and Resource Recovery ...... -2 914 -4 163 -4 104 -183 Total -2 914 -4 163 -4 104 -183

Investing payments summary

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Investments $000 $000 $000 $000

Annual Programs — — — 60 Total Investing Payments — — — 60

11.92

AGENCY: ZERO WASTE SA

Program Information

Program 1: Waste Reduction and Resource Recovery

Description/Objective: To eliminate waste or its consignment to landfill and advance the development of resource recovery and recycling based on an integrated strategy for the state.

Summary income statement

Program 1: Waste Reduction and 2008-09 2007-08 2007-08 2006-07 Resource Recovery Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 1 829 1 688 1 690 1 363 Supplies and services...... 4 476 2 656 2 657 2 056 Grants and subsidies ...... 3 308 3 070 3 070 2 198 Depreciation and amortisation...... — — — 78 Total expenses 9 613 7 414 7 417 5 695 Income Other...... 12 527 11 577 11 521 5 878 Total income 12 527 11 577 11 521 5 878 Net cost of providing services -2 914 -4 163 -4 104 -183

11.93

Program 1: Performance Criteria:

Program: 1 Waste Reduction and Resource Recovery

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of program -$2 914 000 -$4 163 000 -$4 104 000 -$183 000

Performance Commentary The household hazardous waste and farm chemicals collections program continued in 2007-08. A total of 176.8 tonnes of household hazardous waste and farm chemicals was collected for safe disposal from 3159 members of the public in 12 council areas (six metropolitan and six rural/regional). Continued with incentive payments totalling $455 528 in 2007-08 to local government councils across South Australia that have achieved high performance in household kerbside recycling collections. Further incentive payments under this initiative will be made in 2008-09. The waste resource recovery and recycling industry sector received grants totalling $700 250 in 2007-08 to further develop the necessary infrastructure capacity within the Adelaide metropolitan area to divert waste from landfill into recycling and resource recovery. Further grant payments under this initiative will be made in 2008-09. The regional implementation program provided grant payments totalling $781 512 in 2007-08 to local government councils, the waste recovery and recycling industry, and community groups to further develop the necessary infrastructure capacity throughout rural/regional South Australia to divert waste from landfill into recycling and resource recovery. Further grant payments under this initiative will be made in 2008-09. Negotiated a three year agreement with the University of South Australia for the establishment of the Zero Waste SA Centre for Sustainable Design and Behaviour Change to undertake research studies in areas such as behavioural change, linkages between measuring consumption and resource efficiency, and ecological footprint. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Reduction of waste to landfill 50 000 tonnes 45 000 tonnes 55 000 tonnes 16 000 tonnes reduction reduction reduction reduction

11.94 ZERO WASTE SA

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Expenses Employee benefit expenses — Salaries, wages, annual and sick leave ...... 1 523 1 339 1 337 1 069 Long service leave ...... 45 50 50 14 Payroll tax ...... 84 87 91 76 Superannuation ...... 162 166 166 137 Other ...... 15 46 46 67 Supplies and services — General supplies and services ...... 4 476 2 406 2 407 1 824 Consultancy expenses ...... — 250 250 232 Depreciation and amortisation expenses ...... — — — 78 Grants and subsidies ...... 3 308 3 009 3 070 2 198 Intra government transfers ...... — 61 — —

Total expenses 9 613 7 414 7 417 5 695

Income Intra government transfers ...... 11 655 11 297 11 386 5 593 Other grants ...... 792 — — — Interest revenues ...... 80 280 135 285

Total income 12 527 11 577 11 521 5 878

Net cost of providing services -2 914 -4 163 -4 104 -183

Net result 2 914 4 163 4 104 183

11.95 ZERO WASTE SA

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... 11 327 8 413 9 139 4 250 Receivables ...... 26 26 33 26 Other current assets ...... 12 12 8 12

Total current assets 11 365 8 451 9 180 4 288

Non current assets Plant and equipment ...... 519 519 340 519

Total non-current assets 519 519 340 519

Total assets 11 884 8 970 9 520 4 807

Liabilities Current liabilities Payables ...... 327 327 444 327 Employee benefits — Salaries and wages ...... 23 23 23 23 Annual leave ...... 74 74 77 74 Long service leave ...... 10 10 18 10 Other current liabilities ...... 21 21 19 21

Total current liabilities 455 455 581 455

Non current liabilities Long-term employee benefits — Long service leave ...... 369 369 356 369 Other non-current liabilities ...... 29 29 44 29

Total non-current liabilities 398 398 400 398

Total liabilities 853 853 981 853

Net assets 11 031 8 117 8 539 3 954

Equity Retained earnings ...... 11 031 8 117 8 539 3 954

Total equity 11 031 8 117 8 539 3 954

Balances as at 30 June end of period.

11.96 ZERO WASTE SA

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... — — 3 954 3 954 Adjustments ...... — — — —

Restated balance at 30 June 2007 — — 3 954 3 954

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ...... — — 4 163 4 163

Total recognised income and expense for 2007-08 — — 4 163 4 163

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 — — 8 117 8 117

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2008-09 ... — — — — Net result after restructure for 2008-09 ...... — — 2 914 2 914

Total recognised income and expense for 2008-09 — — 2 914 2 914

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 — — 11 031 11 031

11.97 ZERO WASTE SA

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash outflows Employee benefit payments ...... 1 829 1 688 1 690 1 342 Supplies and services ...... 4 476 2 656 2 657 2 320 Grants and subsidies ...... 3 308 3 009 3 070 2 198 Intra government transfers ...... — 61 — —

Cash used in operations 9 613 7 414 7 417 5 860

Cash inflows Intra government transfers ...... 11 655 11 297 11 386 5 604 Other grants ...... 792 — — — Interest received ...... 80 280 135 281

Cash generated from operations 12 527 11 577 11 521 5 885

Net cash provided by (+) / used (-) in operating activities 2 914 4 163 4 104 25

INVESTING ACTIVITIES: Cash outflows Purchase of property, plant and equipment ...... — — — 60

Cash used in investing activities — — — 60

Net cash provided by (+) / used in (-) investing activities — — — -60

Net increase (+) / decrease (-) in cash equivalents 2 914 4 163 4 104 -35

Cash and cash equivalents at the start of the financial year 8 413 4 250 5 035 4 285

Cash and cash equivalents at the end of the financial year 11 327 8 413 9 139 4 250

11.98

AGENCY: ZERO WASTE SA

Financial Commentary — major variations

The following commentary relates to the Agency Financial Statements presented in the previous section. The discussion relates to variations between the 2007-08 Estimated Result and the 2008-09 Budget.

Income statement — Controlled

Expenditure

The 2008-09 Budget for expenditure is greater than the 2007-08 Estimated Result as a result of an increase in the solid waste levy.

Revenue

The 2008-09 Budget for revenue has increased from the 2007-08 Estimated Result. This has occurred as a result of the indexation of government fees and charges for 2008-09, and funding from external sources for Zero Waste SA programs compared with the 2007-08 Estimated Result.

Balance sheet — Controlled

The change in net assets from 2007-08 to 2008-09 is attributed to the increase in deposits in the Waste to Resource Fund.

Other current assets and current and non-current liabilities are expected to remain consistent between 2007-08 Estimated Result and the 2008-09 Budget.

Statement of changes in equity — Controlled

The explanation regarding the increase in equity from 2007-08 to 2008-09 is consistent with the commentary provided for the Balance sheet above.

Cash flow statement — Controlled

The commentary regarding the Income statement above provides information regarding the variations evident for the cash inflows and outflows from operating activities.

11.99 Portfolio: Further Education, Employment, Science and Technology

Minister for Employment, Training and Further Education Minister for Science and Information Economy

Minister for Youth

TABLE OF CONTENTS

PORTFOLIO SUMMARY

Ministerial Responsibilities...... 12.1

Workforce Summary ...... 12.2

Ministerial Office Resources ...... 12.3

Agency Summaries

Department of Further Education, Employment, Science and Technology...... 12.4

PORTFOLIO: FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

MINISTERIAL RESPONSIBILITIES

Minister Agency Programs Sub-Programs The Hon. Paul Caica Department of Further 1. Employment and Skills 1.1 Vocational Education Minister for Employment, Education, Employment, Formation and Training Training and Further Science and Technology 1.2 Learning, Workforce Education Development and Minister for Science and Employment Information Economy 1.3 Regulatory Services Minister for Youth 1.4 International and Higher Education 2. Science, Technology 2.1 Science and Innovation and Innovation 2.2 Information Economy 2.3 Bioscience Industry Development 2.4 Technology Investment 3. Office for Youth Nil

Administered Items

In addition to the above responsibilities the Portfolio administers the following items on behalf of the Minister.

• Minister’s salary and allowances pursuant to Parliamentary Remuneration Act 1990.

• Commonwealth funding of the National Centre for Vocational Education Research Ltd.

Statutes

The Department of the Premier and Cabinet maintains a list of statutes applicable to Ministers.

12.1

WORKFORCE SUMMARY

FTEs as at 30 June 2008-09 2007-08 2006-07 Agency Budget(a) Estimated result(a) Actual Department of Further Education, 3 472.3 3 618.5 3 591.6 Employment, Science and Technology Total 3 472.3 3 618.5 3 591.6 (a) The 2008-09 Budget Estimate and 2007-08 Estimated Result are consistent with the established FTE caps.

MINISTERIAL OFFICE RESOURCES

2008-09 Budget Cost of provision Minister $000 FTEs The Hon. Paul Caica 1 169 9

12.2

12.3

TABLE OF CONTENTS

AGENCY: DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

Objective ...... 12.5

Targets / Highlights...... 12.6

Program Net Cost of Services Summary...... 12.8

Investing Payments Summary...... 12.8

Program Information — includes description/objective, summary income statement, sub-program information including performance criteria

1. Employment and Skills Formation ...... 12.9

2. Science, Technology and Innovation...... 12.17

3. Office for Youth...... 12.23

Financial Statements

Income statement ...... 12.26

Balance sheet...... 12.27

Statement of changes in equity ...... 12.28

Cash flow statement...... 12.29

Income statement — Administered Items...... 12.30

Cash flow statement — Administered Items ...... 12.31

Financial Commentary ...... 12.32

12.4

PORTFOLIO: FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

AGENCY: DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

Objective

To build the breadth and depth of workforce skills in South Australia, complemented by leading science and technology development, and building community education and capacity, social inclusion and continuous learning into the culture of the state.

The portfolio plays a central role in achieving South Australia’s Strategic Plan objectives of Growing Prosperity, Fostering Creativity, and Expanding Opportunity; and makes a substantial contribution to Improving Wellbeing, Attaining Sustainability and Building Communities.

The department undertakes a range of functions in order to meet its objective and contribute to the achievement of South Australia’s Strategic Plan objectives and targets:

• provision of strategic policy advice for developing the state’s workforce;

• ensuring high quality vocational education and training (VET) delivered by TAFE institutes, private registered training organisations and adult community education providers;

• regulation of VET organisations, non-university higher education providers, and providers of English language intensive courses for overseas students;

• regulation, administration and funding of apprenticeships and traineeships;

• managing state funded employment and community development programs;

• supporting the government’s strategic direction in the higher education sector;

• raising the profile of South Australia in the international education market place;

• initiating, advocating and facilitating policies and strategies, including appropriate programs and grants, that create opportunities for positive outcomes for all South Australians, particularly Aboriginal South Australians, young people, people with a disability and older workers;

• provision of strategic advice and the implementation of science, technology, information economy and innovation policy for the benefit of business, industry and education sectors; and

• coordinating a whole of government and community response in supporting young people, aged 12–25, and addressing issues affecting them.

12.5

2008-09 Targets / 2007-08 Highlights

Targets 2008-09 Highlights 2007-08

Employment, Training and Further Education Employment, Training and Further Education • Through South Australia Works provide over 29 000 learning, • Through South Australia Works provided around skill development, training and work opportunities to 29 000 learning, training, skill development and work South Australians, with over 7800 to gain employment with opportunities to South Australians, with over 8500 gaining additional work outcomes from the Labour Market Adjustment employment Program. In addition, participants also benefit by gaining the • Over 2000 Aboriginal participants in South Australia Works confidence and skills to pursue further education and training learning and work programs with over 800 gaining a job • Provide over 2000 clients with a range of referral and • Established a Skills Recognition Service in Adelaide Central brokerage services through the Skills Recognition Service Business District (CBD) to assist people with the recognition of • Implement the Adult Learners Week ‘Secret Codes’ project to qualifications and skills improve the delivery of adult literacy and numeracy programs • Increased South Australia’s overseas students studying to across the state, boosting workforce participation and around 23 300, a 14 per cent increase on the previous year employment opportunities for South Australians • South Australia’s share of overseas students was 5.1 per cent • Increase, through Education Adelaide, the recognition of Adelaide as Australia’s premier study destination for overseas • Education Adelaide consulted and is completing students and ensure that these students feel welcomed, valued South Australia’s first international education industry plan and return home as ambassadors for South Australia outlining industry growth aspirations and strategies to achieve sustainable targets • Increase the state’s share of overseas students studying in Australia to 6.2 per cent; and overseas student enrolments to • Negotiated joint funding by the Commonwealth, state and 25 300 University of Adelaide of over $30 million to establish the first South Australian School of Veterinary Science at the • Contribute to the retention of international students to address Roseworthy campus of the University of Adelaide skill needs in South Australia by boosting their job-hunting skills through joint Education Adelaide, Department of Trade • Provided scholarships worth $100 000 to support students into and Economic Development, and DFEEST employment the resources industry workshops • Implemented the revised quality assurance arrangements for • Contribute to the national Review of Higher Education to vocational education and training (VET) and training providers improve access to higher education and skills training for every delivering qualifications to overseas students young South Australian • The Training and Skills Commission consulted and developed • Implement A Skills Strategy for South Australia’s Future to its vision for publicly funded VET to guide skills reform strengthen the VET system to meet the skill needs of the state’s • Developed and launched A Skills Strategy for South Australia’s economy and community Future to strengthen the VET system to meet the skill needs of • Implement the Training and Skills Development Act 2008 to the state’s economy and community provide a legislative framework for the training system, higher • TAFE SA delivered an estimated 18.8 million student hours education and community learning, which includes the from all funding sources, an increase of 2 per cent on the provision of advice on workforce development, the registration previous year of training providers, course accreditation, arrangements for • Increased to 50 per cent the proportion of graduates who found traineeships and apprenticeships, and protection for clients work after completing their training that were unemployed • Develop, through the Training and Skills Commission, a before the commencement of their TAFE course five-year skills and workforce development plan for • Increased by three percentage points the proportion of South Australia to develop and implement strategies and Aboriginal students across all TAFE SA that were issued with priorities for increasing the workforce skills base of a Certificate III or above qualification South Australia and to maximise the benefit to the state of the Commonwealth’s Skilling Australia commitments • Reviewed TAFE SA programs in Vocational Preparation, Information Technology and Aboriginal Education to ensure • Prepare and publish a five-year SA Strategic Purchasing Plan high quality flexible learning that meets client needs, supports that determines how the state should best arrange the purchase workforce development and is accessible to all client groups of the required training and workforce development • Implemented marketing plans, and undertook market research • Continue to refine workforce and labour market forecasting to support TAFE SA markets and products methods in collaboration with industry and economic development agencies to better inform skill and workforce • Reviewed and implemented changes to increase the uptake of development strategies recognition of prior learning including piloting a program targeting senior Aboriginal people in the public service • Greater involvement by industry in identifying skills priorities and strategies through new arrangements with the nine industry • Enhanced partnerships between TAFE and employers with skills boards and other key industry bodies rapid responses for customised training programs to meet industry skill needs • In partnership with industry, community and all levels of government, implement new programs to assist people facing • Implemented new web capabilities for international student barriers to employment to gain work or training leading to recruitment within TAFE SA; enhanced DFEEST website; and sustainable employment developed web portals for the Training and Skills Commission, South Australia Works and the Office of the Training Advocate • Facilitate the take-up of workforce development strategies by employers by expanding the range of workforce planning • Training and Skills Development Bill 2008 was passed by the resources and tools and the Workforce Information Service House of Assembly in May 2008 • Significantly increase the level of state government funding • Completed the external evaluation of the Industry Skills Boards available on a contestable basis • Completed a Career Development Framework for the • Position TAFE SA to operate in a more commercial, dynamic workforce development of individuals, and planned the business environment expansion of Career Development Centres or services to cover 17 employment and skills formation networks in the state’s regions

12.6

Targets 2008-09 Highlights 2007-08

• Establish a TAFE SA network of three devolved yet connected • Increased access and utilisation of workforce information and institutes to respond with dexterity to client needs while planning tools by industry, government and regions and harnessing the benefits of a wide network community groups through the Workforce Information Service • Increase the uptake and embed recognition of prior learning as • Improved the state’s workforce planning and forecasting a pathway to a qualification in line with COAG targets systems for agri-food, mining and resources, defence, health • Through the Aboriginal Access Centre increase the and community services and wine industry sectors participation rates of Aboriginal students in Certificate III and • There were approximately 35 100 trainees and apprentices in above across all TAFE SA programs by three percentage points South Australia as at September 2007 an increase of • Increase the proportion of employers engaging with the VET 2.3 per cent from September 2006 system • The number of apprentices and trainees completing their • Reduce the real cost per hour of publicly funded training in training rose by 18.4 per cent in the 12 months to South Australia for both TAFE SA and private providers September 2007, compared to the national rise of 3.7 per cent • Embed case management to increase TAFE SA responsiveness • Establishment and operation of the DFEEST Shared Services in supporting learners from disadvantaged groups to provide one consistent service across corporate support functions for increased administrative efficiency and • Increase use of flexible e-learning by all VET providers effectiveness with greater financial transparency and control • Introduce a more integrated approach to the management and Science and Information Economy use of infrastructure and ICT systems to meet the needs of contemporary teaching and learning • Bio Innovation SA completed the construction of the BioSA Incubator, commenced selling land at the Thebarton Science and Information Economy Bioscience Precinct and continued to foster industry growth • Bio Innovation SA to foster bioscience industry development • Playford Capital is on track to invest $1.3 million by providing business incubator space, land, infrastructure, Commonwealth ICTIP funds into six South Australian grants, business development and capital raising assistance and innovative technology companies in 2007-08 bioscience industry networking opportunities • Playford Capital exceeded the co-investment target of • Playford Capital is targeting investment of $1.8 million $2.25 million agreed with the Commonwealth, having assisted Commonwealth ICT Incubator Program (ICTIP) funds into six its investee companies to secure over $9 million in private South Australian innovative technology companies in 2008–09 sector and government funding • Secure Australian government research and development • South Australia’s public expenditure on research and resources to 25 per cent above South Australia’s per capita development in the most recent ABS data (2004-05) is share 1.12 per cent of Gross State Product compared with average • Continue investment in Constellation SA of $1 million investment for other Australian states of 0.77 per cent including the mapping of the state’s research and development • Secured Australian Government research and development capabilities in strategic sectors; and with the Department of resources at 13 per cent above our per capita share which Health the preparation of a detailed business case to establish a exceeds South Australia’s Strategic Plan target of 10 per cent Centre for Intergenerational Health above per capita share by 2010 • Investment of approximately $4 million in Premier’s Science and Research Fund projects • Continued implementation of National Collaborative Research Infrastructure Strategy investments • Implement Outback Connect Extension (OCX) program in regional South Australia • Distributed $0.75 million funding to Constellation SA projects • Implement broadband solutions in regional and metropolitan • Completed South Australian Broadband Research and Adelaide in the context of national broadband programs Education Network (SABRENet) into TAFE SA campuses at Regency and Gawler and connection to Gilles Plains • Support the Information Economy Advisory Board to develop an ICT Skills Strategy for the state • Completed SABRENet connections of six high schools as part of the Department of Education and Children’s Services trial; • Further develop and publish a Digital Bridge Strategy and connection of Gilles Plains Institute of Medical and Office for Youth Veterinary Science facility • Establish strategic partnerships to enhance the sustainability of • Completed the Telecommunications Infrastructure Strategy for Office for Youth programs and services providing improved Techport Australia access and support to young people • Information and Communication Technology: Driving Growth • Establish strategies to support young people’s leadership in for South Australia Blueprint (‘ICT Blueprint’) launched climate change, young refugees and Aboriginal youth voice • Broadband Development Fund infrastructure projects for the • Establish an across government group to develop a strategic Yorke Peninsula, Coorong and Barossa and Light region plan to address issues raised around South Australia’s completed and customer connections made Strategic Plan targets by young people • mEgaSA (Mobile Enterprise Growth Alliance South Australia) which aims to increase the size and capability of the mobile content and applications industry in South Australia won Commonwealth funding to rollout as a national program Office for Youth • Supported the development of youth strategy across government and worked with government departments to consult 800 young people around South Australia’s Strategic Plan targets • Organised a public sector youth conference ‘Involve’ to increase understanding of youth issues related to South Australia’s Strategic Plan objectives • Over 5150 young people participated in Office for Youth programs, grants and initiatives, with approximately 4000 volunteering in some capacity within their community

12.7

Program net cost of services summary

Net Cost of Services 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Program $000 $000 $000 $000 1. Employment and Skills Formation ...... 258 645 260 362 256 770 253 088 2. Science, Technology and Innovation...... 27 290 31 420 23 276 20 632

3. Office for Youth...... 4 613 4 466 4 453 4 324

Total 290 548 296 248 284 499 278 044

Investing payments summary

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Investments $000 $000 $000 $000

New Works Student Information System ...... 5 523 — — — Victor Harbor new TAFE Campus ...... 4 100 — — — Total New Works 9 623 — — —

Works in Progress Adelaide Campus Atrium...... 1 405 800 250 75 City Central ...... — 77 — 6 250 Gilles Plains TAFE Campus — Veterinary and Applied Science...... — 197 — 5 135 Dental Upgrade - Gilles Plains ...... — 3 400 3 400 — Marleston TAFE Campus — Stage 1 ...... 500 38 6 280 168 Narungga Redevelopment ...... 500 100 500 — Nuriootpa Redevelopment — Stage 2 ...... — 268 — 1 254 Mt Gambier TAFE Campus — Modifications ...... — 202 — 73 Mimili...... — — — 468 Total Works in Progress 2 405 5 082 10 430 13 423

Minor Works Clever Networks...... — 290 — — IT Systems and Infrastructure 1 000 2 195 2 000 1 056 Minor Works ...... 1 962 1 350 1 350 — Total Minor Works 2 962 3 835 3 350 1 056

Annual Programs Purchase of Plant & Equipment...... 2 000 2 000 2 000 2 139 Total Annual Programs 2 000 2 000 2 000 2 139 Total Investing Payments 16 990 10 917 15 780 16 618

12.8

AGENCY: DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

Program Information

Program 1: Employment and Skills Formation

Description/Objective: To strengthen the economic prosperity and social wellbeing of South Australians through strategic employment, skills formation and further education activities.

Summary income statement

Program 1: Employment and Skills 2008-09 2007-08 2007-08 2006-07 Formation Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 259 929 258 187 254 442 252 473 Supplies and services...... 134 817 132 890 133 859 131 766 Grants and subsidies ...... 44 635 49 389 46 351 38 995 Depreciation and amortisation...... 18 074 17 691 14 468 15 360 Other...... 4 349 4 205 4 220 4 151 Total expenses 461 804 462 362 453 340 442 745 Income Sale of goods and services...... 88 678 83 036 78 614 76 575 Commonwealth revenue ...... 106 380 108 031 103 822 100 530 Other grants revenue...... 5 817 8 791 7 702 6 996 Interest income ...... — — — 77 Gain/Loss on disposal of assets ...... — — — -338 Other...... 2 284 2 142 6 432 5 817 Total income 203 159 202 000 196 570 189 657 Net cost of providing services 258 645 260 362 256 770 253 088

12.9

Sub-program information

Sub-program: 1.1 Vocational Education and Training

Provision of post secondary vocational education and training (VET) by TAFE SA and other registered training organisations including: • resource allocation of contestable and non-contestable funds; • funding of apprenticeships and traineeships; • support for post secondary training and education; and • providing state and national policy advice. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $227 546 000 $227 072 000 $224 083 000 $222 665 000

Performance Commentary There are a number of key policy processes underway including A Skills Strategy for South Australia’s Future that will implement further initiatives to strengthen the vocational education and training system and increase the VET participation and completion rates to meet the skill needs of the state’s economy and community. TAFE SA is the public provider of VET in South Australia. It plays a critical role in delivering the government’s objectives to improve economic and social development, the skill base and employment opportunities for all South Australians. TAFE SA highlights for 2007 include: • delivery of an estimated 13.9 million publicly funded student hours of an estimated 19 million publicly funded student hours delivered by all registered training organisations; • delivery of an estimated 18.8 million student hours from all funding sources(a), an increase of 2 per cent on previous year; • 90 per cent of graduates were employed or in further study after their training; • increased share of international students studying in VET from 1.3 per cent in 2006 to 1.6 per cent; • increased by 3 percentage points the proportion of Aboriginal students across all TAFE SA that have been issued with a Certificate III or above compared to 2006; • customisation and contextualisation of TAFE SA training and development products to address the specific requirements of industry and support the current and future workforce development requirements; • reviewed and implemented changes to increase the recognition of prior learning including piloting a program targeting senior Aboriginal people in the public service; • providing English language and settlement services to newly arrived migrants and refugees; • partnerships with industry to deliver training programs to meet the needs of people with a disability, with client focused further education and employment opportunities; • expanded opportunities for young people and adult learners by negotiating and developing study pathways through credit transfer and articulation arrangements between TAFE SA, Senior Secondary Assessment Board of South Australia and the three South Australian universities; • the Aboriginal Access Centre worked closely with various job networks in regional South Australia to ensure Aboriginal participants gained access into wider TAFE SA courses, with Port Augusta achieving 45 per cent employment outcomes for students; and • supporting Aboriginal communities through tailored programs and community based projects. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result(b) Target Actual Proportion of South Australians aged 15 to 11.4% 11.3% 10.5%(d) 10.9% 64 participating in VET(c) Student groups as a proportion of all VET students • female students(e) 50% 52% 50% 51.2% • indigenous students 5.0% 4.8% 4.4% 4.8% • students from a non-English speaking 12.0% 11.8% 11.3% 11.8% background • students with a disability 8.0% 8.0% 7.3% 7.8% No. of student hours (annual hours of 18 500 000(f) 19 000 000 18 400 000(f) 19 120 000 curriculum adjusted) Load pass rates 78.5%(g) 87% 87% 87.7% continued

12.10

Sub-program: 1.1 Vocational Education and Training continued

2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result(b) Target Actual Proportion of qualification completions at 70% 68% —(h) 67.8%(h) certificate III and above(h) Proportion of qualification completions at certificate III and above categorised by student groups(h): • female students 71% 70% —(h) 70.9%(h) • indigenous students 46% 43% —(h) n.a.(h) • students from a non-English speaking 70% 68% —(h) 65.6%(h) background • students with a disability 58% 56% —(h) 55.8%(h) Proportion of apprentices and trainees 57% 55% —(i) 57% completing their contract of training(i) VET students rating quality of training at four or more • module completers 86% 85% 85% 87.8% • graduates 90% 89% 89% 89.0% % of graduates unemployed before TAFE 55% 50% 55% 47.6% course who found work after training % of graduates employed or in further study 90% 90% 90% 89.9% after the training % of international students in VET 1.7% 1.6% 1.5% 1.3% Expenditure per nominal hour of training $16.85(j) $17.00(j) $17.00 $17.84(j) activity (previously cost per curriculum hour)

Footnotes (a) All funding sources includes Commonwealth and state funding, fee-for-service and overseas full-paying students. (b) All 2007–08 estimates are based on preliminary 2007 calendar year data. (c) The performance indicators on student participation in the VET system refer to activity based on Commonwealth and state recurrent and specific funding for VET including TAFE Institute, fee-for-service and overseas full paying students. (d) Between 2005–06 and 2006–07 the National Centre for Vocational Education Research (NCVER) changed its reporting scope to include VET in Schools Arrangements (VISA) students. The lower target for 2007-08 was based on the previous reporting scope. (e) The proportion of female students is based on the ratio of females in the current population estimates for people aged 15 and above. (f) The targets for 2008–09 and 2007–08 are part of the Commonwealth-state bilateral funding agreement for skilling Australia’s workforce. (g) The Load Pass Rate for the 2008 calendar year will be calculated differently to bring the process in line with other states and territories. The 2008-09 Target is based on the new calculation method and is not comparable to the 2007-08 Target and estimated result. (h) This new indicator for 2008–09 is included in the South Australian tables of the Annual National Report on the Australian Vocational and Technical Education System. No target was set for 2007–08. Data for 2007–08 Estimated Result and 2006-07 actual is included where it was available. (i) New indicator for 2008-09. (j) The 2007–08 Estimated Result and 2008–09 Target are based on the 2007 dollar value whereas the 2006–07 Actual has not been adjusted for inflation.

12.11

Sub-program: 1.2 Learning, Workforce Development and Employment

Addressing the state’s economic development and social inclusion objectives by: • providing opportunities for people to participate in employment, training, skills development, and adult community education; • meeting the current and future labour and skill needs of industry; and • providing state and national policy advice. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $22 184 000 $24 433 000 $23 956 000 $22 118 000

Performance Commentary The department, through the South Australia Works initiative, provided learning, skills development, training and work opportunities for people who have difficulty entering or staying in the workforce, particularly young people, Aboriginal people and the mature aged unemployed. The initiative has also improved South Australia’s workforce capability by assisting industry to address current and future labour and skill demands. For the 2008-09 portfolio statement the performance indicators have been modified to improve the presentation and accuracy of performance reporting. Performance now reports on the total number of participants in a priority program area and priority target groups. Data from the previous portfolio statement has been mapped to this new structure. Highlights for 2007–08 include: • 29 000 people across metropolitan and regional areas participated in learning, skill development, training and work programs with over 8500 people gaining a job and participants generally, gaining skills and confidence to take on further study, training and work; • 8000 young people participated in work programs, with 4000 (50 per cent) gaining a job; • 1680 Aboriginal people participated in work programs, with 800 (48 per cent) gaining a job; • 3780 mature aged people participated in work programs, with 1660 (44 per cent) gaining a job; • 3500 apprentices and trainees in Group Training Organisations; • 900 retrenched workers were assisted through the Labour Market Adjustment Program, with 520 (58 per cent) gaining a job; • over 2290 businesses, industry and community organisations were supported through 427 projects to increase workforce participation, develop better workforce practices and build community capacity; • a Skills Recognition Service was established in the Adelaide CBD to assist people with the recognition of qualifications and skills (gained locally or overseas); and • Career Development Services were established in Northern Adelaide, Adelaide Hills, Port Augusta and Whyalla. The department leads South Australia’s workforce development objectives. Highlights for 2007–08 include: • improved understanding of the barriers experienced by people most disadvantaged in the labour market which helped make improvements to workforce development and employment programs, aimed at increasing participation in learning and work; • completed the external evaluation of the Industry Skills Boards (ISBs) confirming their contribution to a strong workforce development and planning culture. Recommendations arising from the review will be considered for progressive implementation; • improved the state’s workforce planning and forecasting systems for agri-food, mining and resources, defence, health and community services and wine industry sectors to better understand the workforce needs of the state; • developed and implemented learning and work programs for young people that included industry partnerships to improve employment outcomes; • continued delivery of comprehensive workforce and industry information along with workforce development resources and planning tools through the Workforce Information Service; and • completed a Career Development Framework for workforce development of individuals, and planned the expansion of Career Development Centres or services to cover 17 employment and skills formation networks in the state’s regions. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Total no. of participants in South Australia 29 264 28 987(a) 24 550 (a) 28 676(a) Works learning, skills development, training and work programs Total no. of participants in South Australia 15 623(c) 17 470(a) 15 550 16 909 Works work programs(b) for: • Public sector(d) 1 183 1 072 1 168 868 • Industry(e) 4 040 4 970(a) 4 027 4 967 • Regions(f) 6 400 6 782(a) 6 300 6 263 • Communities(g) 4 000 4 646(a) 4 055 4 811 continued

12.12

Sub-program: 1.2 Learning, Workforce Development and Employment continued

2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Proportion and no. of participants gaining a job 51% 49% 51% 46 % through work programs(b) (7 910)(c) (8 502) (7 910) (7 707) • Public sector 74% 61% 74% 58% (874) (658)(h) (868) (506) • Industry 50% 51% 50% 48% (2 014)(i) (2 546) (a) (2 015) (2 358) • Regions 53% 51% 53% 50% (3 400) (3 463) (a) (3 350) (3 142) • Communities 41% 39% 41% 35% (1 622) (1 835) (a) (1 677) (1 701) Total no. of participants in work programs by priority target group • young people aged 15-24 8 265(j) 8 066(k) 8 370 7 760 • mature aged people aged 40+ 3 050(j) 3 780(a) 3 245 4 127 • Aboriginal people 1 500 1 688(a) 1 285 1 499 Proportion and no. of participants gaining a job through work programs by priority target group • young people 50% 50% 50% 45% (4 120) (4 003) (4 197) (3 471) • mature aged people 44% 44% 44% 37% (1 330)(j) (1 659) (1 420) (1 517) • Aboriginal people 50% 48% 50% 46% (745) (806) (649) (695) Total no. of participants in South Australia 13 641 11 517 9 000 11 767 Works learning, skills development and training programs: • Adult Community Education 11 000 11 000 8 500 11 160 • Tauondi Aboriginal College 641 517 500 607 • Skills Recognition Services(l) 2 000 — — — No. of training hours delivered through South Australia Works learning, skills development, training and work programs: • accredited 720 804(j) 907 417 915 500 781 982 • non-accredited 364 000(j) 410 845 406 000 538 205

Footnotes (a) The 2007–08 Estimated Results and 2006–07 actual results exceed the 2007-08 Target as they include demand driven programs such as the Labour Market Adjustment program; for 2007–08 there was additional funding through Skills for South Australia - building on strong foundations and the Commonwealth Government which resulted in a higher number of participants. (b) The indicator and performance data include participants in the priority target groups of young people, mature aged people, and Aboriginal people as well as other groups including people with a disability, migrants, and unemployed or under-employed participants between 25 and 39 years of age. (c) The 2008–09 Target does not include the demand driven Labour Market Adjustment program; in addition the Parents Return to Work and ACE Youth Works programs concluded in 2007–08. (d) Public sector work programs include public sector traineeships, apprenticeships and cadetships along with other programs that build diversity in the public sector. (e) Industry work programs include apprentices and trainees in group training organisations, participants in the demand driven labour market adjustment program and other programs which assist industry to address current and future labour and skill demands. (f) Regions work programs address specific training and employment needs of non-metropolitan and metropolitan regions. (g) Communities work programs address specific training and employment needs within communities. continued

12.13

Sub-program: 1.2 Learning, Workforce Development and Employment continued

Footnotes (h) The result for the Government Skills Recruitment Strategy was lower than anticipated. Actions are being implemented to increase recruitment for 2008–09. (i) The 2008–09 Target does not include the demand driven Labour Market Adjustment program. The 2008–09 Target reflects the conclusion of some externally funded programs in 2007–08. (j) The 2007-08 result was short of the target as work programs, aimed at the most highly disadvantaged and disengaged young people located in highly disadvantaged areas, did not engage the expected level of participants. (k) Skills Recognition Services was established in October 2007.

Sub-program: 1.3 Regulatory Services

Administering the state’s further education and training system through: • provision of registration, accreditation and approval services for registered training organisations; • quality oversight of the state vocational education system, through the Training and Skills Commission; • administration of apprenticeships and traineeships; and • providing state and national policy advice. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $5 705 000 $5 719 000 $5 585 000 $5 785 000

Performance Commentary The department, under delegation from the Training and Skills Commission, regulates training providers and courses in accordance with the Training and Skills Development Act 2003 (the Act), nationally agreed standards and ministerial agreements. In carrying out the functions the department is audited by an external agency to validate the state’s compliance with the registering and course accrediting body requirements. The Act has been reviewed and the Training and Skills Development Bill 2008 was passed by the House of Assembly in May 2008. There are currently a total of 301 training providers approved to deliver training under the Act. There has been a steady growth in the number of registered providers in the VET sector with the number of Registered Training Organisations increasing by over 7 per cent. The department led the work which resulted in an amendment to the Commonwealth Education Services for Overseas Students Act 2000 enabling providers of international hospitality courses to increase overseas student enrolments and assist in achieving South Australia’s Strategic Plan target of doubling the state’s share of international student numbers. The department also led a state and territory working group that revised the Australian Quality Training Framework (2007) — the national standards for the VET sector. The department supported Registered Training Organisations in making the transition to the new arrangements through workshops and a range of communication strategies. The department administers the traineeship and apprenticeship system, in accordance with the Act under delegation from the Training and Skills Commission. As at 30 September 2007, there were approximately 35 100 trainees and apprentices in South Australia. Highlights for 2007-08 include: • the number of apprentices and trainees undertaking training in South Australia continues to grow. In the 12 months to 30 September 2007, there were approximately 21 700 traineeship and apprenticeship commencements, a 9 per cent increase on the 19 900 commencements in the previous 12 months; • traineeship and apprenticeship completions were also much higher at 11 600, up from 9 800 and may be attributed to the introduction of competency based completions; and • as part of the state government’s drought assistance package, $1.5 million was allocated for the Drought Apprenticeship Retention Program (DARP) to assist employers in drought designated areas to retain their apprentices and trainees. To date, the program has assisted some 440 organisations employing a total of 918 apprentices and trainees. continued

12.14

Sub-program: 1.3 Regulatory Services continued

2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of registered training providers assessed 210 212 210 190 against registration requirements % and no. of registered training providers 75% 78% 75% 58% demonstrating compliance at time of (158) (166) (158) (111) audit % and no. of registered training provider 85% 81% 85% 85% applications assessed within client service (178) (180) (145) (161) standards No. of national training package 250 265(a) 250 195 qualifications made available for delivery during the year No. of South Australian qualifications 70 78 70 65 accredited No. of qualifications made available as a 150 212(b) 150 214 traineeship/apprenticeship % of clients satisfied with the quality of 95% 95% 93% 94% recognition services provided No. of new training contracts approved demand driven 22 300 demand driven 20 475 No. of Registered Training Organisations 234 234(c) 200 202(c) with User Choice funding agreements % of User Choice funds expended on 90% 88% 85% 83% Certificate level 3 qualifications and above % of contracts of training approved within 80%(d) 70%(e) 75% 75% 10 days from time of receipt % of satisfied clients as measured through annual sample surveys: • trainees/apprentices 95% 89% 95% 91% • employers 95% 88% 95% 86%

Footnotes (a) The number of training package qualifications will be influenced by the cycle of development and review. (b) The number of qualifications made available as a traineeship/apprenticeship has exceeded the target due to the endorsement of training packages containing large numbers of qualifications. (c) Performance reported on a calendar year basis. (d) The 2008–09 Target will be reviewed following the proclamation of the Training and Skills Development Act 2008. (e) The significant increase in the number of traineeship and apprenticeship commencements affected the Estimated Result.

12.15

Sub-program: 1.4 International(a) and Higher Education

Supporting the development of Adelaide as a centre for education, international education and South Australian education exports including the provision of marketing services, analysis and student and community support. Provision of high-level strategic policy advice to the Minister on higher education policy and planning. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $3 210 000 $3 138 000 $3 146 000 $2 520 000

Performance Commentary South Australia continues its overseas student growth, with 23 327 international students attracted to Adelaide in 2007, representing 5.1 per cent of the total number of international students studying in Australia. Highlights include: • Adelaide’s international student numbers increased by 14 per cent; • international student enrolments for South Australia’s Higher Education and ‘Other’ (Foundation/Non-award) sectors grew at more than twice the national average, and Schools sector recorded 15 per cent growth compared to a national growth of 11.5 per cent; • notably South Australia’s VET and English language (ELICOS) sectors grew 34.3 per cent and 20.4 per cent respectively; • more than 30 per cent of potential students in key target markets are aware of Adelaide. Adelaide is the first preference for 11 per cent of potential students in China and India. Of those students aware of the Study Adelaide brand more than 50 per cent say they are more likely to study in Adelaide; and • more students believe the Adelaide community is supportive of international students and friendly and welcoming compared to 2004. Higher Education continued to provide high-level strategic policy advice to the Minister during 2007–08. Highlights for 2007–08 include: • completed an audit of South Australian Government expenditure on universities to better align funding with South Australia’s Strategic Plan targets; • developed initiatives to improve university participation; • conducted research to inform strategies to improve student participation in science and mathematics education; • established a process to provide workforce intelligence to assist university planning; • contributed to national debates on university governance, auditing and regulation; • provided scholarships worth $100 000 to support students into the resources industry; • supported the Higher Education Council to improve university collaboration and respond to national and state higher education initiatives (including the University City proposal and implementing the new SACE); and • contributed to the development of the veterinary science program at the Roseworthy campus of the University of Adelaide. In 2008–09, Higher Education will: • contribute to the national Review of Higher Education; • develop strategies to improve student participation in science and mathematics education; • coordinate whole of government support for national higher education initiatives; and • assist universities to provide graduates in high demand areas of the workforce including the health, defence and resources sectors. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual South Australia’s share of overseas 6.2% 5.1% 5.8% 5.4% students(a) Growth in South Australia’s international 13 600 12 586 12 400 10 968 student commencements(a)(b) Growth in South Australia’s international 25 300 23 327 23 300 20 580 student enrolments(a)(b))

Footnotes (a) The Australian Government Department of Education, Employment and Workplace Relations (DEEWR) categorises International Education into Higher Education, Vocational and Technical Education (VTE), English Language Intensive Courses for Overseas Students, Schools, and Other sectors — Other includes Foundation, Bridging and Enabling Courses plus courses that do not lead to a qualification under the Australian Qualifications Framework. (b) The DFEEST target is to grow the number of international student commencements and enrolments. These targets and results are shown as student totals with growth being the difference between the years.

12.16

AGENCY: DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

Program Information

Program 2: Science, Technology and Innovation

Description/Objective: Provides the government’s principal strategic focus for science, technology, information economy and innovation policy development and program delivery that links government, business, industry and education sectors.

Summary income statement

Program 2: Science, Technology and 2008-09 2007-08 2007-08 2006-07 Innovation Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 3 247 2 569 2 464 3 027 Supplies and services...... 568 1 625 1 479 1 542 Grants and subsidies ...... 23 514 27 343 19 505 16 714 Other...... 41 41 41 49 Total expenses 27 370 31 578 23 489 21 332 Income Commonwealth revenue ...... 80 158 213 328 Other grants revenue...... — — — 66 Other...... — — — 306 Total income 80 158 213 700 Net cost of providing services 27 290 31 420 23 276 20 632

12.17

Sub-program information

Sub-program: 2.1 Science and Innovation

Provision of high level strategic advice to the Minister on maximising economic, environmental and social benefits from the state’s scientific research and innovation by: • identifying strategic priorities for state government investment; • raising awareness and understanding of the benefits of science and innovation amongst government, business and the community; • facilitating coordinated and strategic bids for Commonwealth grants; and • facilitating coordination of education and research activity with end-user (industry) requirements to maximise the benefits for South Australia. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $11 514 000 $20 405 000(a) $10 669 000(a) $8 584 000

Performance Commentary In 2007-08 the department continued the implementation of the Science, Technology and Innovation (STI10) policy. Highlights include: • South Australia’s public expenditure on research and development in the most recent ABS data (2004-05) is 1.12 per cent of Gross State Product compared with average investment for other Australian states of 0.77 per cent; • secured Australian government research and development resources at 13 per cent above our per capita share which exceeds South Australia’s Strategic Plan target of 10 per cent above per capita share by 2010; • appointment of a new Chief Scientist; • in 2006-07 approximately $22 million was committed over the next five years for nine national collaborative infrastructure research projects in South Australia. This will be matched by approximately $28 million in Commonwealth funding provided under the National Collaborative Research Infrastructure Strategy, with further contributions from industry and research institutions; • through Constellation SA the Chief Scientist and DFEEST were active in further developing the framework through extensive consultation with research institutions, industry and other users of research as well as implementing a number of projects building collaboration between researchers and industry. Examples of initiatives/projects that have been supported to-date include: − contribution to the development of the Wine Innovation Cluster which brings together five of Australia’s key agencies involved in grape and wine research; − comprehensive mapping of the state’s research and development capabilities in the defence sector; − co-funding, with the Department of Health, a detailed business case to establish a Centre for Intergenerational Health; − development of a detailed implementation plan for South Australian National Resource Management research collaboration; and − sponsorship of a conference on social innovation supporting research in applied social sciences. In 2008-09 the directorate will continue to engage in ongoing capacity building and infrastructure investment including: • securing Australian government research and development resources to 25 per cent above South Australia’s per capita share; • continuing support for Constellation SA including : − establishment of the minerals and energy alliance and specific mining and energy clusters; − develop the society and the citizen alliance to better coordinate research activity in the state to support social innovation; − preparation of master plans for further development of some of the state’s key research precincts; − implementation of generic support programs to underpin collaboration between the research and end-user communities, for example an online capabilities portal promoting the state’s research and development expertise and strengths; promotion of the South Australian Broadband Research and Education Network infrastructure; expansion of knowledge transfer strategies; and hosting a conference on Constellation SA implementation; − mapping of the state’s research and development capabilities in strategic sectors; and • investment of approximately $4 million in Premier’s Science and Research Fund projects. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Public expenditure on research and 0.77%(b) 1.1%(b) —(b) —(b) development as a per cent of Gross State Product(a) South Australia’s per capita share of 9.5% 8.9%(c) —(c) —(c) Australian government research and development resources(b) continued

12.18

Sub-program: 2.1 Science and Innovation continued

Footnotes (a) Increase in Estimated Result from budget is mainly due to National Collaborative Research Infrastructure Strategy payments. (b) This was a new indicator for 2007–08. The target is to match or exceed average investment as a proportion of Gross State Product compared to other Australian states. Most recent ABS data 2004–05 shows average investment for other Australian states is 0.77 per cent of Gross State Product (GSP) with South Australia’s public expenditure at 1.12 per cent of GSP. The 2008–09 Target is under review. The department commits to meeting or exceeding the Australian average expenditure while the review is under way. (c) This was a new indicator for 2007–08. Baseline data was established in 2007-08. South Australia’s Strategic Plan target is to secure Australian government research and development resources to 10 per cent above South Australia’s per capita share by 2010 and increase this share to 25 per cent by 2014, for both public and private spheres. The estimated 2007-08 result shows the state is 13 per cent above our per capita share which exceeds the 2010 Target by 3 per cent. The 2008-09 Target is 25 per cent above our per capita share.

12.19

Sub-program: 2.2 Information Economy

Provision of high level strategic policy advice to the Minister and government on the information economy and the ICT sector that: • raises awareness and greater understanding of the information economy among government, business, industry and education providers; • develops strategy and facilitates programs and projects relevant to promoting the information economy; and • facilitate bids for significant Commonwealth grants. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program(a) $5 901 000 $1 787 000 $4 749 000 $3 612 000

Performance Commentary In 2007–08 the department supported the continuing implementation of the Information Economy Agenda for South Australia. Highlights included: • completed South Australian Broadband Research and Education Network (SABRENet) tails to TAFE SA Institute campuses at Regency and Gawler and the connection to Gilles Plains campus; • completed SABRENet connections of six high schools as part of the Department of Education and Children’s Services trial; • completed the connection of Gilles Plains Institute of Medical and Veterinary Science facility; • completed the Telecommunications Infrastructure Strategy for Techport Australia; • launched the Information and Communication Technology: Driving Growth for South Australia Blueprint (‘ICT Blueprint’); • Broadband Development Fund infrastructure projects for the Yorke Peninsula, Coorong and Barossa and Light region completed and customer connections made; • Outback Connect — an ICT training and technical support program delivered online with local on ground support in remote South Australia — concluded with over 830 clients (including 146 who identified as aboriginal) registered for the program and 76 different course topics made available; • mEgaSA (Mobile Enterprise Growth Alliance South Australia) which aims to increase the size and capability of the mobile content and applications industry in South Australia won Commonwealth funding to rollout as a national program; and • established the registered training organisation (RTO) E-Learning Development fund which has assisted 18 private RTOs to initiate e-learning programs for more efficient and effective delivery to their clients and learners. 2008–09 Targets include: • support the Thinker in Residence during 2009; • implement Outback Connect Extension (OCX) program in regional South Australia; • implement broadband solutions in regional and metropolitan Adelaide in the context of national broadband programs; • implement strategies and actions identified in the ‘ICT Blueprint’; • support the Information Economy Advisory Board to develop an ICT Skills Strategy for the state; and • further develop and publish a Digital Bridge Strategy. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Broadband as a per cent of internet connections to:(b) • households Within 5% of Within 10% of Within 5% of —(b) national average national average national average • business Within 5% of Within 10% of Equal the national —(b) national average national average average • farms Within 5% of Within 10% of Exceed the —(b) national average national average national average Broadband Development Funds (BDF) for $3.5m(c) $494 232(c) $3.9m $505 165(c) the ongoing implementation of South Australia’s Broadband Strategy

Footnotes (a) The net cost of this sub-program can vary significantly across years due to the effect of carryovers. (b) New indicator from 2007-08. The South Australia’s Strategic Plan target for Broadband usage to 2010 is to exceed the Australian national average and maintain thereafter. The 2008-09 Target represents progress towards the 2010 Target. (c) Consideration of several applications for Broadband Development Fund projects were suspended in 2006–07 and 2007–08, pending the outcome of revised federal government funding programs on which the applications were dependent. The 2008–09 Target is to expend the remaining BDF funds.

12.20

Sub-program: 2.3 Bioscience Industry Development

Development of the bioscience industry through providing assistance in business development, finance, infrastructure and marketing. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $8 330 000 $7 450 000 $6 080 000 $6 459 000

Performance Commentary Six new biotechnology companies were created in 2007–08. Over the seven year period until June 2008, Bio Innovation SA (BioSA) has facilitated the doubling in number of bioscience companies in South Australia to more than 90 companies. BioSA is currently ahead of its target to create five new companies per year, and in 2007-08 has reached a milestone having provided assistance to form more than 50 companies since incorporation in 2001. Assistance with company growth has resulted in an on average generation of 100 new FTEs in bioscience companies per year. It is expected that the South Australian bioscience industry will have raised more than $40 million in venture capital and private equity in 2007-08. BioSA’s major infrastructure initiative the ‘BioSA Incubator’ commenced construction in early 2007, the building will be the centrepiece of the 4.8ha extension to the Thebarton Bioscience Precinct. Completion of the building is expected in June 2008. Further land to be developed at the Precinct will provide additional space for new bioscience manufacturing, laboratory and office buildings. BioSA has commenced plans to place some of the available land on the market for bioscience industry developments. BioSA continues to provide high level technical, commercial, business, financial and product development assistance to the bioscience community through its business development function. In addition BioSA promotes the South Australian bioscience industry through marketing initiatives and provides specialist advice to bioscience companies and researchers on regulatory affairs and infrastructure matters. BioSA stages regular events including networking functions, leaders forums and seminars, and produces a bi monthly newsletter, all supported by a highly informative web page at www.bioinnovationsa.com.au, to provide a focal point for the local bioscience community. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual New biotechnology companies created 5 6 5 4 (a) Total no. of Bioscience projects assisted 40(a) 40(a) 45(a) 57 Bioscience grants funded $3 300 000 $2 600 000 $2 500 000 $2 900 000 Bioscience marketing activities — no. of 6 7 7 7 networking functions held

Footnotes (a) This indicator was revised in 2007-08. The indicator represents bioscience projects undertaken by research organisations and companies. The focus on larger projects in 2007-08 and for 2008-09 results in a lower number of overall projects assisted.

12.21

Sub-program: 2.4 Technology Investment

Provision of seed capital and business guidance to start-up and early stage technology companies. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $1 545 000 $1 778 000 $1 778 000 $1 977 000

Performance Commentary Playford Capital invests in early stage companies under an agreement with the Commonwealth that sets out cumulative investment targets over the five-year period to June 2009. Beyond this, Playford Capital operates as a recirculating seed fund with the proceeds of investment exits available for further investment in innovative early-stage South Australian companies. Playford met targets for number of investments in 2007-08. In total, Playford and its co-investors invested over $10 million in early-stage South Australian ventures during 2007-08. The level of Playford’s investment commitments was lower than anticipated, but this was more than offset by a higher than expected level of co-investment from private investors and Commonwealth funding programs aimed at building the state’s research and development capability. Since 2001–02 Playford Capital has invested over $10 million in 38 South Australian technology companies that have gone on to raise $70 million in co-investment from private investors and government grants. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual Commonwealth Information and $1.84m $1.26m $1.86m $1.56m Communications Technology Incubators

Program (formerly Building IT Strengths) funds invested in South Australia Co-investment – leveraging funds from $2.25m(a) $9.20m —(a) $14.14m private investors and government funding programs(a)

Footnotes (a) New indicator introduced for 2008–09. No target was set for 2007–08, however the Commonwealth Information and Communications Technology Incubators Program (ICTIP) funding agreement required a minimum target of $2.25 million of co-investment in 2007–08. Playford is targeting the same minimum level of co-investment in 2008-09.

12.22

AGENCY: DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

Program Information

Program 3: Office for Youth

Description/Objective: The Office for Youth has a significant leadership role in coordinating a whole of government and community response in supporting young people, aged 12 to 25, and addressing issues affecting them. It achieves this through: • developing strong partnerships across government, the youth sector, business and the community; • creating and supporting opportunities for young people to have a voice and make an informed contribution to public debate; and • providing young people with positive experiences and opportunities which enhance their strengths and capacity, and which affirm their contributions to their communities and their ability to shape their own future.

Summary income statement

Program 3: Office for Youth 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 2 078 2 035 2 040 2 072 Supplies and services...... 1 256 1 166 1 166 1 034 Grants and subsidies ...... 1 363 1 349 1 349 1 604 Other...... 27 27 27 33 Total expenses 4 724 4 577 4 582 4 743 Income Commonwealth revenue ...... — — 18 — Other grants revenue...... — — — 39 Other...... 111 111 111 380 Total income 111 111 129 419 Net cost of providing services 4 613 4 466 4 453 4 324

12.23

Program performance information

Program: 3 Office for Youth

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $4 613 000 $4 466 000 $4 453 000 $4 324 000

Performance Commentary The Office for Youth provides programs, policy initiatives and grants to facilitate the active participation of young people in all aspects of their community, and to support their personal and skill development. Highlights for 2007-08 include: • delivery of ‘Involve’, a public sector youth conference during December 2007 to increase understanding of youth issues related to South Australia’s Strategic Plan objectives; • promotion of a greater consideration of youth issues across government by undertaking youth specific collaborations with over half of South Australian Government departments as part of consultations across the state with young people; • development and promotion of youth participation training and a web based consultation tool kit to support youth engagement for signatories of the Premier’s Memorandum on Youth Participation; • introduction of Community Engagement Grants in August 2007 to fund organisations to run projects that target at ‘risk’ young people and promote leadership and community engagement; and • provision of approximately $260 000 to the Youth Affairs Council of South Australia to provide a range of services to the youth sector and government of South Australia in collaboration with, and on behalf of the Office for Youth. During 2008-09, the Office for Youth will coordinate the development of a strategic plan to translate South Australia’s Strategic Plan targets as they relate to young people and to guide the government’s response to young people across the state. 2008-09 2007-08 2007-08 2006-07 Performance Indicators Target Estimated result Target Actual No. of young people involved in government 2 000(a) — — — and community decision making processes Percentage and amount of Office for Youth 30%(a) — — — grant funding provided to initiatives which engage disadvantaged young people No. of young people who participate in youth 2 500(b) — — — development programs No. of new participants in Duke of 1 500 1 300(c) 1 500 1 585 Edinburgh’s program % and no. of young people who complete the 52% 52% 42% 40.7% Duke of Edinburgh program as part of a (780) (680) (630) (646) course leading to a qualification No. of young people volunteering in their 4 200 4 151 4 200 4 244 local communities through youth programs Collaborative policy initiatives implemented —(d) 6 6 4 between Office for Youth and other government agencies No. of young people who are connected to —(e) 1 650 1 200 1 630 local councils through participation on Youth Advisory Committees % of youth engagement grants funding —(f) 89% 90% 89.4% distributed No. of participants in the active8 youth —(g) 1 201 1 230 1 152 development program No. of young people on the Youth —(h) 221 (h) 250 151 Participation Register No. of young people receiving youth —(i) 85(i) 50 52 leadership grants continued

12.24

Program: 3 Office for Youth continued

Footnotes (a) New indicator for 2008-09. As part of the Office’s commitment to continuous improvement, a range of new initiatives have been implemented to increase young people’s involvement in government and community decision making processes such as the Office for Youth A-Teams, Youth Consultation Grants, Youth Participation Training and SA Strategic Plan Youth Consultations. (b) New indicator for 2008-09. This indicator provides an improved level of statistical significance for measuring key Office for Youth outcomes. (c) The decrease in enrolments was due to an increasing focus of resources on the facilitation of award completions rather than new enrolments during the period. (d) Redundant indicator. This indicator is not statistically relevant over a period of time as the number, size and complexity of policy initiatives will vary from year to year. This information will be reported within the performance commentary in future portfolio statements. (e) Redundant indicator. A revised indicator ‘number of young people involved in government and community decision making processes will offer a more statistically significant measure of the participation of young people within local government. (f) Redundant indicator. The ‘percentage of youth engagement grants funding distributed’ is not a valid outcome measure — the performance of this grant initiative in delivering outcomes for young people cannot be statistically represented and will therefore be featured in the performance commentary. (g) Redundant indicator. A revised indicator ‘number of young people who participate in Office for Youth programs’ will provide a broader indicator of participation rates across all Office for Youth programs. (h) Redundant indicator. The Youth Participation Register is no longer a primary mechanism for offering youth participation opportunities across government, resulting in the lower than targeted number of participants. Also refer to footnote (a). (i) Redundant indicator. Youth leadership grants are provided on a non-competitive basis, whereby all applicants who fulfil the basic eligibility criteria are approved for grant funding. Therefore, the indicator is not statistically relevant over time as the result will vary from year to year depending on the level of demand for the grant rather than the level or resources applied to the program.

12.25 DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Expenses Employee benefit expenses — Salaries, wages, annual and sick leave ...... 215 711 214 034 211 637 208 702 Long service leave ...... 8 619 7 697 7 633 10 413 Payroll tax ...... 12 695 13 235 13 696 13 449 Superannuation ...... 26 652 26 286 25 980 23 462 Other ...... 1 577 1 539 — 1 546 Supplies and services — General supplies and services ...... 136 541 135 181 136 504 134 240 Consultancy expenses ...... 100 500 — 102 Depreciation and amortisation expenses ...... 18 074 17 691 14 468 15 360 Grants and subsidies ...... 56 294 65 217 56 916 46 952 Intra government transfers ...... 13 218 12 864 10 289 10 361 Other expenses ...... 4 417 4 273 4 288 4 233

Total expenses 493 898 498 517 481 411 468 820

Income Commonwealth revenues ...... 106 460 108 189 104 053 100 858 Intra government transfers ...... 1 905 4 923 3 702 2 862 Other grants ...... 3 912 3 868 4 000 4 239 Sales of goods and services ...... 88 678 83 036 78 614 76 575 Interest revenues ...... — — — 77 Net gain or loss from disposal of assets ...... — — — -338 Other income ...... 2 395 2 253 6 543 6 503

Total income 203 350 202 269 196 912 190 776

Net cost of providing services 290 548 296 248 284 499 278 044

Income from / Expenses to SA Government Income — Appropriation ...... 291 559 271 636 284 428 269 939 Other income ...... — 10 128 — 15 433 Expenses — Cash alignment ...... — 5 370 — —

Net income from / expenses to SA Government 291 559 276 394 284 428 285 372

Net result 1 011 -19 854 -71 7 328

12.26 DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... 56 082 46 005 45 348 58 960 Receivables ...... 24 785 24 858 21 212 17 929 Inventories ...... 928 928 1 952 928 Other current assets ...... 2 057 2 057 775 2 057

Total current assets 83 852 73 848 69 287 79 874

Non current assets Financial assets ...... 1 852 1 852 1 442 1 849 Land and improvements ...... 445 326 451 986 392 541 460 506 Plant and equipment ...... 60 305 54 729 55 583 52 984

Total non-current assets 507 483 508 567 449 566 515 339

Total assets 591 335 582 415 518 853 595 213

Liabilities Current liabilities Payables ...... 31 421 30 440 32 949 29 459 Employee benefits — Salaries and wages ...... 2 445 1 939 1 998 1 479 Annual leave ...... 8 814 8 591 7 848 8 313 Long service leave ...... 4 235 3 619 5 530 3 064 Other ...... 4 661 4 585 4 133 4 509 Short-term provisions ...... 2 546 2 432 4 253 2 325 Other current liabilities ...... 11 505 11 505 5 718 11 505

Total current liabilities 65 627 63 111 62 429 60 654

Non current liabilities Long-term borrowings ...... 499 499 499 499 Long-term employee benefits — Long service leave ...... 54 623 49 359 48 938 44 845 Long-term provisions ...... 6 570 6 441 5 139 6 356

Total non-current liabilities 61 692 56 299 54 576 51 700

Total liabilities 127 319 119 410 117 005 112 354

Net assets 464 016 463 005 401 848 482 859

Equity Retained earnings ...... 385 164 384 153 378 164 404 007 Asset revaluation reserve ...... 78 852 78 852 23 684 78 852

Total equity 464 016 463 005 401 848 482 859

Balances as at 30 June end of period.

12.27 DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... — 78 852 404 007 482 859 Adjustments ...... — — — —

Restated balance at 30 June 2007 — 78 852 404 007 482 859

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ...... — — -19 854 -19 854

Total recognised income and expense for 2007-08 — — -19 854 -19 854

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 — 78 852 384 153 463 005

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2008-09 ... — — — — Net result after restructure for 2008-09 ...... — — 1 011 1 011

Total recognised income and expense for 2008-09 — — 1 011 1 011

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 — 78 852 385 164 464 016

12.28 DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash outflows Employee benefit payments ...... 257 815 256 198 252 353 250 036 Supplies and services ...... 146 184 144 877 145 375 145 159 Grants and subsidies ...... 46 751 56 021 48 045 39 118 Net GST paid ...... — — — -5 467 Intra government transfers ...... 13 218 12 864 10 289 10 361 Other payments ...... 3 837 3 705 3 756 2 020

Cash used in operations 467 805 473 665 459 818 441 227

Cash inflows Intra government transfers ...... 1 905 4 923 3 702 2 862 Commonwealth receipts ...... 106 460 108 189 104 053 100 858 Other grants ...... 3 912 3 868 4 000 4 239 Sales of goods and services ...... 88 742 83 098 78 676 79 390 Interest received ...... — — — 177 Net GST received ...... — — — -7 681 Other receipts ...... 2 294 2 155 6 481 4 301

Cash generated from operations 203 313 202 233 196 912 184 146

SA GOVERNMENT: Appropriation ...... 291 559 271 636 284 428 269 939 Other receipts ...... — 10 128 — 15 433 Payments — Cash alignment ...... — 5 370 — —

Net cash provided by SA Government 291 559 276 394 284 428 285 372

Net cash provided by (+) / used (-) in operating activities 27 067 4 962 21 522 28 291

INVESTING ACTIVITIES: Cash outflows Purchase of property, plant and equipment ...... 16 990 10 917 15 780 16 618 Advances paid ...... — 7 000 — —

Cash used in investing activities 16 990 17 917 15 780 16 618

Cash inflows Proceeds from sale of property, plant and equipment ...... — — — 18

Cash generated from investing activities — — — 18

Net cash provided by (+) / used in (-) investing activities -16 990 -17 917 -15 780 -16 600

Net increase (+) / decrease (-) in cash equivalents 10 077 -12 955 5 742 11 691

Cash and cash equivalents at the start of the financial year 46 005 58 960 39 606 47 269

Cash and cash equivalents at the end of the financial year 56 082 46 005 45 348 58 960

12.29 ADMINISTERED ITEMS FOR THE DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Income from SA Government Income — Appropriation ...... 254 250 236 241

Net income from / expenses to SA Government 254 250 236 241

Income from other sources Commonwealth revenues ...... 7 487 8 346 8 346 2 670

Total income from other sources 7 487 8 346 8 346 2 670

Total income 7 741 8 596 8 582 2 911

Expenses Employee benefit expenses — Salaries, wages, annual and sick leave ...... 250 246 232 225 Superannuation ...... 4 4 4 — Grants and subsidies ...... 7 487 8 346 8 346 2 670

Total expenses 7 741 8 596 8 582 2 895

Net result — — — 16

12.30 ADMINISTERED ITEMS FOR THE DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash inflows Commonwealth receipts ...... 7 487 8 346 8 346 2 670

Cash generated from operations 7 487 8 346 8 346 2 670

Cash outflows Employee benefit payments ...... 254 250 236 225 Grants and subsidies ...... 7 487 8 346 8 346 2 670

Cash used in operations 7 741 8 596 8 582 2 895

SA GOVERNMENT: Appropriation ...... 254 250 236 241

Net cash provided by SA Government 254 250 236 241

Net cash provided by (+) / used in (-) operating activities — — — 16

Net increase (+) / decrease (-) in cash equivalents — — — 16

Cash and cash equivalents at the start of the financial year — — — -16

Cash and cash equivalents at the end of the financial year — — — —

12.31

AGENCY: DEPARTMENT OF FURTHER EDUCATION, EMPLOYMENT, SCIENCE AND TECHNOLOGY

The following commentary relates to variations between the 2007-08 Estimated Result and the 2008-09 Budget.

Income statement — Controlled

The variations in budgeted expenditure reflect:

• expenditure initiatives of $2.1 million detailed in the 2008-09 Budget Statement;

• savings measures totalling $3.6 million detailed in the 2006-07 Budget Statement;

• provision of $11.9 million for indexation on existing salary and non-salary costs in 2008-09;

• a $28.9 million reduction in 2008-09 as a result of carryovers from 2006-07 and other items including National Collaborative Research Infrastructure Strategy payments being reflected in 2007-08.

• $13.9 million relating to carryovers of expenditure from 2007-08 to 2008-09 and other timing adjustments.

The overall budgeted increase in income mainly reflects the estimated increases from student fees, other fees and charges, partially offset by a reduction in Commonwealth revenues.

Balance sheet — Controlled

The increase in current assets is due to an increase in accrual appropriation cash received from government to offset the increase in liabilities.

Statement of changes in equity — Controlled

Equity has been maintained from 2007-08 Estimated Result to 2008-09 Budget.

Cash flow statement — Controlled

The changes in cash flows from operating activities are primarily due to the variations that are described under the Income statement and Balance sheet.

The increase for the purchase of property, plant and equipment in 2008-09 is primarily due to expenditure associated with the development of the new Victor Harbor TAFE campus and the purchase and implementation of a new Student Information System.

Income statement — Administered

The variation in revenue and expenditure is due to the effect of funding from the Commonwealth for 2008 for the National Centre for Vocational Education Research Ltd (NCVER).

Cash flow statement — Administered

The changes in outflows and inflows are primarily due to the variation that is described under the Income statement.

12.32

12.33 Auditor-General’s Department

TABLE OF CONTENTS

AGENCY: AUDITOR-GENERAL’S DEPARTMENT

Objective ...... 13.1

Targets / Highlights...... 13.1

Program Net Cost of Services Summary...... 13.2

Investing Payments Summary...... 13.2

Workforce Summary ...... 13.2

Program Information — includes description/objective, summary income statement, sub-program information including performance criteria

1. Auditing Services...... 13.3

Financial Statements

Income statement ...... 13.5

Balance sheet...... 13.6

Statement of changes in equity ...... 13.7

Cash flow statement...... 13.8

Income statement — Administered Items...... 13.9

Balance sheet — Administered Items...... 13.10

Statement of changes in equity — Administered Items...... 13.11

Cash flow statement — Administered Items ...... 13.12

Financial Commentary ...... 13.13

AGENCY: AUDITOR-GENERAL’S DEPARTMENT

Objective

To contribute as an important body to the accountability of the Executive Government and public sector agencies to Parliament by the provision of independent reports on matters concerning public sector finance, use of public resources and the probity and lawfulness of matters associated with public administration.

2008-09 Targets / 2007-08 Highlights

Targets 2008-09 Highlights 2007-08

• Present the Auditor-General’s Annual Report to Parliament as • Presented the Auditor-General’s Annual Report to Parliament prescribed by the Public Finance and Audit Act 1987 as prescribed by the Public Finance and Audit Act 1987 • Identify and undertake certain reviews of specific issues of • Presented the following Supplementary Report to Parliament: importance and interest in the public sector, aimed at - Agency Audit Reports improving processes and/or maintaining accountability in public sector agencies • Commenced evaluation of the audit methodology and associated software tools developed by the Victorian and • Undertake 16 independent quality assurance reviews of Queensland Audit Offices public sector agency audits undertaken by field audit teams • Undertook 16 independent quality assurance reviews of • Develop a Corporate Plan for the period 2009-10 to 2011-12 public sector agency audits undertaken by field audit teams • Continue to implement and support high quality and focused • Continued to implement and support high quality and focused training and development for our people training and development for our people

13.1

Program net cost of services summary

Net Cost of Services 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Program $000 $000 $000 $000

1. Auditing Services………………………. 11 573 10 998 11 319 11 009 Total 11 573 10 998 11 319 11 009

Investing payments summary

2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Investments $000 $000 $000 $000 New Works Replacement of audit methodology and 180 — — — software………………………………… Total New Works 180 — — — Minor Works Annual program………………………... 323 654 315 51 Total Minor Works 323 654 315 51 Total Investing Payments 503 654 315 51

Workforce summary

FTEs as at 30 June Agency 2008-09 2007-08 2006-07 Budget Estimated result Actual Auditor-General’s Department………………. 111.0 111.0 107.8 Total 111.0 111.0 107.8

13.2

AGENCY: AUDITOR-GENERAL’S DEPARTMENT

Program Information

Program 1: Auditing Services

Description/Objective: The program relates to the provision of auditing services covering all audit responsibilities prescribed under the Public Finance and Audit Act 1987.

Summary income statement

Program 1: Auditing Services 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual $000 $000 $000 $000 Expenses Employee benefits and costs...... 8 808 8 549 8 552 8 384 Supplies and services...... 2 387 2 325 2 398 2 374 Other...... 379 370 370 265 Total expenses 11 574 11 244 11 320 11 023 Income Other...... 1 246 1 14 Total income 1 246 1 14 Net cost of providing services 11 573 10 998 11 319 11 009

13.3

Sub-program information

Sub-program: 1.1 Prescribed Audits

All audit work to be undertaken for agencies where the Auditor-General is the prescribed auditor. The department must annually conduct the audits as prescribed by the Public Finance and Audit Act 1987. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program $11 573 000 $10 998 000 $11 319 000 $11 009 000

Performance Commentary The variation between the 2007-08 Budget and Estimated Result arises principally from Future ICT savings applied to agency budgets, and the transfer of the Deputy Auditor-General’s leave liabilities to the department’s administered items upon his appointment as Auditor-General in September 2007.

Sub-program: 1.2 Special Investigations

All work defined within the Public Finance and Audit Act 1987 that is specifically requested by either the Parliament, Treasurer or Minister to be undertaken and reported to the Parliament by the Auditor-General. 2008-09 2007-08 2007-08 2006-07 Budget Estimated result Budget Actual Net cost of sub-program — — — —

Performance Commentary There is no budget for this Sub-program in 2008-09 or expenditure incurred in previous years as the Auditor-General has not been requested to undertake investigations pursuant to section 32 of the Public Finance and Audit Act 1987.

13.4 AUDITOR-GENERAL'S DEPARTMENT

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Expenses Employee benefit expenses — Salaries, wages, annual and sick leave ...... 7 280 7 059 7 043 6 825 Long service leave ...... 165 159 159 277 Payroll tax ...... 447 453 474 463 Superannuation ...... 913 875 873 817 Other ...... 3 332 Supplies and services — General supplies and services ...... 2 180 2 123 2 196 2 143 Consultancy expenses ...... 207 202 202 231 Depreciation and amortisation expenses ...... 370 361 361 217 Other expenses ...... 9 9948

Total expenses 11 574 11 244 11 320 11 023

Income Interest revenues ...... — — — 12 Net gain or loss from disposal of assets ...... -4 -4 -4 — Other income ...... 5 25052

Total income 1 246 1 14

Net cost of providing services 11 573 10 998 11 319 11 009

Income from / Expenses to SA Government Income — Appropriation ...... 11 569 11 338 11 412 10 915 Other income ...... — 20 — 97 Expenses — Cash alignment ...... — 925 — —

Net income from / expenses to SA Government 11 569 10 433 11 412 11 012

Net result -4 -565 93 3

13.5 AUDITOR-GENERAL'S DEPARTMENT

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... 2 163 2 155 3 023 3 113 Receivables ...... 92 91 117 90

Total current assets 2 255 2 246 3 140 3 203

Non current assets Land and improvements ...... 169 282 — — Plant and equipment ...... 199 206 374 181 Intangible assets ...... 204 64075

Total non-current assets 572 494 414 256

Total assets 2 827 2 740 3 554 3 459

Liabilities Current liabilities Payables ...... 392 399 422 406 Short-term borrowings ...... 3 333 Employee benefits — Salaries and wages ...... 187 158 151 129 Annual leave ...... 536 528 568 592 Long service leave ...... 238 199 214 174 Short-term provisions ...... 22 22 3 22

Total current liabilities 1 378 1 309 1 361 1 326

Non current liabilities Long-term employee benefits — Long service leave ...... 1 882 1 860 2 032 1 997 Long-term provisions ...... 28 28 9 28

Total non-current liabilities 1 910 1 888 2 041 2 025

Total liabilities 3 288 3 197 3 402 3 351

Net assets -461 -457 152 108

Equity Retained earnings ...... -461 -457 152 108

Total equity -461 -457 152 108

Balances as at 30 June end of period.

13.6 AUDITOR-GENERAL'S DEPARTMENT

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... — — 108 108 Adjustments ...... — — — —

Restated balance at 30 June 2007 — — 108 108

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ...... — — -565 -565

Total recognised income and expense for 2007-08 — — -565 -565

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 — — -457 -457

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2008-09 ... — — — — Net result after restructure for 2008-09 ...... — — -4 -4

Total recognised income and expense for 2008-09 — — -4 -4

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 — — -461 -461

13.7 AUDITOR-GENERAL'S DEPARTMENT

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash outflows Employee benefit payments ...... 8 717 8 458 8 461 8 129 Supplies and services ...... 2 387 2 325 2 398 2 395 Net GST paid ...... 1 1 1 233 Other payments ...... 9 9910

Cash used in operations 11 114 10 793 10 869 10 767

Cash inflows Interest received ...... — — — 12 Net GST received ...... — — — 236 Other receipts ...... 5 552

Cash generated from operations 5 5 5 250

SA GOVERNMENT: Appropriation ...... 11 569 11 338 11 412 10 915 Other receipts ...... — 20 — 97 Payments — Cash alignment ...... — 925 — —

Net cash provided by SA Government 11 569 10 433 11 412 11 012

Net cash provided by (+) / used (-) in operating activities 460 -355 548 495

INVESTING ACTIVITIES: Cash outflows Purchase of property, plant and equipment ...... 503 654 315 51

Cash used in investing activities 503 654 315 51

Cash inflows Proceeds from sale of property, plant and equipment ...... 51 51 51 17

Cash generated from investing activities 51 51 51 17

Net cash provided by (+) / used in (-) investing activities -452 -603 -264 -34

Net increase (+) / decrease (-) in cash equivalents 8 -958 284 461

Cash and cash equivalents at the start of the financial year 2 155 3 113 2 739 2 652

Cash and cash equivalents at the end of the financial year 2 163 2 155 3 023 3 113

13.8 ADMINISTERED ITEMS FOR THE AUDITOR-GENERAL'S DEPARTMENT

Income statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Income from SA Government Income — Appropriation ...... 257 251 248 563

Net income from / expenses to SA Government 257 251 248 563

Income from other sources Other income ...... 9 423 9 137 9 137 9 392

Total income from other sources 9 423 9 137 9 137 9 392

Total income 9 680 9 388 9 385 9 955

Expenses Employee benefit expenses — Salaries, wages, annual and sick leave ...... 258 297 249 237 Long service leave ...... 10 112 — 2 Other expenses ...... 9 423 9 382 9 137 9 392

Total expenses 9 691 9 791 9 386 9 631

Net result -11 -403 -1 324

13.9 ADMINISTERED ITEMS FOR THE AUDITOR-GENERAL'S DEPARTMENT

Balance sheet

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 Assets Current assets Cash and cash equivalents ...... 932 928 364 924 Receivables ...... 425 425 143 425

Total current assets 1 357 1 353 507 1 349

Total assets 1 357 1 353 507 1 349

Liabilities Current liabilities Payables ...... 1 157 1 153 307 1 149 Employee benefits — Salaries and wages ...... 7 665 Annual leave ...... 117 117 — —

Total current liabilities 1 281 1 276 313 1 154

Non current liabilities Long-term employee benefits — Long service leave ...... 295 285 — —

Total non-current liabilities 295 285 — —

Total liabilities 1 576 1 561 313 1 154

Net assets -219 -208 194 195

Equity Retained earnings ...... -219 -208 194 195

Total equity -219 -208 194 195

Balances as at 30 June end of period.

13.10 ADMINISTERED ITEMS FOR THE AUDITOR-GENERAL'S DEPARTMENT

Statement of changes in equity

______Contributed Asset Retained Total capital revaluation earnings reserve

$000 $000 $000 $000

Balance at 30 June 2007 ...... — — 195 195 Adjustments ...... — — — —

Restated balance at 30 June 2007 — — 195 195

Net gain/loss on revaluation of property, plant and equipment during 2007-08 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2007-08 ... — — — — Net result after restructure for 2007-08 ...... — — -403 -403

Total recognised income and expense for 2007-08 — — -403 -403

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2008 — — -208 -208

Net gain/loss on revaluation of property, plant and equipment during 2008-09 ...... — — — — Net changes in reserves ...... — — — —

Net income/expense recognised directly in equity for 2008-09 ... — — — — Net result after restructure for 2008-09 ...... — — -11 -11

Total recognised income and expense for 2008-09 — — -11 -11

Equity contributions from SA Government ...... — — — — Repayment of equity contributions from SA Government ...... — — — —

Estimated balance at 30 June 2009 — — -219 -219

13.11 ADMINISTERED ITEMS FOR THE AUDITOR-GENERAL'S DEPARTMENT

Cash flow statement

______2008-09 2007-08 2007-08 2006-07 Budget Estimated Budget Actual result

$000 $000 $000 $000 OPERATING ACTIVITIES: Cash inflows Net GST received ...... 4 4 4 938 Other receipts ...... 9 423 9 137 9 137 9 348

Cash generated from operations 9 427 9 141 9 141 10 286

Cash outflows Employee benefit payments ...... 257 251 248 563 Net GST paid ...... — — — 871 Other payments ...... 9 423 9 137 9 137 8 809

Cash used in operations 9 680 9 388 9 385 10 243

SA GOVERNMENT: Appropriation ...... 257 251 248 563

Net cash provided by SA Government 257 251 248 563

Net cash provided by (+) / used in (-) operating activities 4 4 4 606

Net increase (+) / decrease (-) in cash equivalents 4 4 4 606

Cash and cash equivalents at the start of the financial year 928 924 360 318

Cash and cash equivalents at the end of the financial year 932 928 364 924

13.12

AGENCY: AUDITOR-GENERAL’S DEPARTMENT

Financial Commentary — major variations

The following commentary relates to the Agency Financial Statements presented in the previous section.

2007-08 Estimated Result and the 2008-09 Budget

The budgeted increase in the department’s net cost of services reflects in the main the following matters:

• general expenditure increases for 2008-09, notably:

– employee entitlements associated with Enterprise Bargaining outcomes; and

– supplies and services associated with indexation increases.

• once-off recognition of other income in 2007-08 arising from the transfer of the Deputy Auditor-General’s leave liabilities to the department’s administered items upon his appointment as Auditor-General in September 2007.

2007-08 Estimated Result and the 2007-08 Budget

Income statement — Controlled

The variation between the 2007-08 Budget and Estimated Result arises principally from Future ICT savings applied to agency budgets, and the transfer of the Deputy Auditor-General’s leave liabilities to the department’s administered items upon his appointment as Auditor-General in September 2007.

Cash flow statement — Controlled

Minor works The 2007-08 Estimated Result includes an approved carry over of expenditure from 2006-07 for an upgrade to training facilities and associated changes to office accommodation arrangements on the 10th floor of the State Administration Centre.

Cash at Bank The department regularly manages and monitors cash balances to identify any cash that is surplus to meeting its approved cash expenditure requirements. In 2007-08 the department transferred surplus cash totalling $925 000 to the consolidated account in accordance with the principles of the Cash Alignment Policy.

13.13 ACCOUNTING STANDARDS

ACCOUNTING STANDARDS

The financial statements included in the 2008-09 Portfolio Statements are special purpose financial reports.

Estimates in these portfolio statements have been prepared on a basis consistent with Australian equivalents to International Financial Reporting Standards (AIFRS), except where these notes indicate otherwise.

Reporting Entities

The financial reports include all assets, liabilities, incomes and expenses of individual entities and portfolio agencies (administrative groupings of entities).

In the process of reporting on portfolios, agencies or other entities as single economic entities, transactions and balances between controlled entities are eliminated.

The commentary at the commencement of the portfolio statement for each portfolio identifies which entities have been included in the consolidated reports for that portfolio.

Separation of Disclosure

The statements provide disclosure through the separation of activities defined as controlled and administered.

Activities that are ‘controlled’ are those where the agency delivers services and governs the financial and operating policies so as to obtain benefits from these activities and assets in the pursuit of its objectives.

Generally, activities that are ‘administered’ on behalf of the government exist where an agency has no discretion to alter the resources provided or determine how they are spent.

Format

The financial statements for each portfolio include an Income Statement, Balance Sheet, Statement of Changes in Equity and a Cash Flow Statement.

Basis of Measurement

Most government assets are valued at their written down current cost. Otherwise agencies adopt one of the following measurement bases:

Market / fair value is the amount for which an asset could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm’s length transaction (in many cases agencies use written down current cost as a proxy for fair value).

Net market value in relation to an asset means the market value after deducting costs expected to be incurred were the asset to be exchanged.

Current cost of an asset means the lowest cost at which the gross service potential of that asset could currently be obtained in the normal course of operations.

All non-current tangible assets, with a cost of acquisition greater than $1 million and a useful life of more than three years, are required to be valued at fair value unless excluded from the scope of Australian Accounting Standard AASB 116 Property, Plant and Equipment or an alternative valuation is specified by another accounting standard.

Depreciation and Amortisation of Non-Current Assets

All non-current assets having limited useful lives are systematically depreciated/amortised over their useful lives in a manner that reflects the consumption of their service potential. The most common method used for calculating depreciation expense is the straight line method.

Certain heritage assets have very long and indeterminate useful lives. Their service potential has not, in any material sense, been consumed during the reporting period. As such, no amount for depreciation has been recognised in respect of those assets.

Assets acquired under finance leases are amortised over the period during which the government is expected to benefit from use of the leased asset.

Employee Benefits

Employee benefits (including salaries and wages, annual leave, long-service leave, sick leave and superannuation benefits) reflect those benefits accrued as a result of services provided by employees up to the reporting date.

Short-term employee benefits (fall due within twelve months) are measured at a nominal amount based on the remuneration rates an agency expects to pay. Examples of short-term employee benefits include salaries and wages and annual leave.

Long-term employee benefits (fall due later than twelve months) are measured as the present value of estimated future cash flows. An example of a long-term employee benefit is long service leave.

Sick leave

For the majority of agencies, no liability will be recognised for sick leave.

There is no liability for non-vesting sick leave (a non-vesting entitlement is that which does not constitute a legal obligation of the employing agency until a valid claim is made by an employee or an event has occurred) if, on average, sick leave taken is less than total entitlements accruing.

Vesting sick leave entitlements are rare for South Australian Government employees.

Superannuation

For most South Australian Government controlled agencies, the Treasurer assumes the accrued superannuation liability in return for periodic payments from agencies. Therefore, unless there are contributions due but not yet paid at the reporting date, there is no superannuation liability recorded for the agency.

Two types of superannuation plans are in operation currently in the public sector: defined benefit plans and defined contribution plans. In a defined benefit plan, a member’s entitlement is determined by reference to a formula based on years of membership and/or salary levels. In a defined contribution plan, a member’s entitlement is determined by reference to accumulated contributions made to the plan together with investment earnings thereon.

Under existing arrangements, the Treasurer is liable for any net deficiency in assets for the defined benefits plans. Deficits in defined benefit superannuation plans are recognised as liabilities in the Balance Sheet for the Treasurer. The deficits are measured as the excess of employees’ accrued benefits resulting from services up to the reporting date over the net market value of the plan’s assets as at the reporting date.

Income recognition

Wherever possible, income is recognised when the transaction or event giving rise to the income occurs. As a result, all items of income are normally reported in the Income Statement when an agency obtains control over the respective amounts. In circumstances where it is not possible to determine objectively when control over the asset passes to the agency, the amounts are recognised upon receipt.

Appropriation

The investment program requirements for agencies included in the portfolio statements may be funded through operating appropriation, operating receipts, the proceeds of asset sales, grants and through Commonwealth payments. Where the investment requirements of an agency are not funded from these sources, the State Government funding of an agency’s investment program will generally be treated as an equity contribution from the government, as representative owner. These contributions are treated as contributions to equity rather than income in an agency.

Funds appropriated, but not required to meet current year cash outflows will be deposited with the Treasurer and will show as an asset in the agency’s Balance Sheet.

Cash Alignment Policy

Where agencies have returned excess cash held to the Treasurer in accordance with the Cash Alignment Policy, the payment is generally recorded as a ‘payment to government’ in the Income Statement. Some agencies have elected to repay debt or return contributed capital with excess cash balances. These transactions will be reflected in the Balance Sheet.

Rounding

All amounts in the financial statements have been rounded to the nearest thousand dollars, unless otherwise indicated.

Due to rounding, there may be instances where financial statements and tables do not add correctly.

Presentation

The format of the financial statements is consistent with the Model Financial Reports (prepared by the Department of Treasury and Finance for statutory reporting requirements) and is consistent with the requirements of: AASB 101 Presentation of Financial Statements and AASB 107 Cash Flow Statements.

2008 09 REGIONAL STATEMENT BUDGET PAPER 6

Presented by the Honourable Kevin Foley MP Deputy Premier and Treasurer of South Australia on the Occasion of the Budget for 2008–09