2010-11 annual report 6 October 2011 The Honourable Stephen Robertson MP Minister for Energy and Water Utilities PO Box 15216 City East Qld 4002 The Honourable Rachel Nolan MP Minister for Finance, Natural Resources and the Arts GPO Box 611 Brisbane Qld 4001 Dear Ministers I am pleased to present the Annual Report 2010-2011 for WaterSecure. I certify that this annual report complies with: • the prescribed requirements of the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009; • the detailed requirements set out in the Annual Reporting Guidelines for Queensland Government Agencies; and • the annual report requirements as set out in the Corporate Governance Guidelines for State Water Authorities. A checklist outlining the annual reporting requirements can be accessed on the WaterSecure website. Yours sincerely Sam Romano Acting Chief Executive Officer WaterSecure ContentsContents AboutAbout WaterSecureWaterSec Legislativegislative basiss 4 Rolee andand functionsf 4 Our vision 4 Our mission 4 Our values 4 Strategic choices and key priorities 5 Aligning WaterSecure’s objectives and strategies with the Toward Q2 Ambitions 5 CEO and Chair Report 6 Organisational Structure 7 Our Board 7 Our Executive Management Team 8 Our performance – what we delivered 10 Key Objectives 2010-2011 10 2010-2011 Highlights 11 Cumulative water supplied in 2010-2011 12 Key performance areas 13 Strategic Asset Management Plan 14 Environment 14 Water quality plans 14 Community 15 Industry and research 16 Our People 17 Corporate Governance 20 Summary of Financial Position and Performance Statement of Comprehensive Income 25 Statement of Financial Position 26 Statement of Cash Flows 27 Financial Report 29 Glossary 78 How to comment on this annual report We value your comments on our annual report and any other matters relating to WaterSecure. Please contact us on: PO Box 16146, City East Qld 4002 1800 997 464 [email protected] www.watersecure.com.au Copies of this annual report You can obtain printed copies of this annual report by contacting WaterSecure or by downloading the report from the publications section of our website www.watersecure.com.au. ISSN 1837-0446 (Print) ISSN 1837-0454 (Online) Interpreter service The Queensland Government is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse backgrounds. If you have difficulty understanding this annual report, you can contact us on 1800 997 464 and we will arrange an interpreter to effectively communicate the report to you. © State of Queensland (WaterSecure) 2011 Legislative basis Plant’s capacity is up to 133 megalitres of water a day. WaterSecure is the trading name of the Queensland Purified water is supplied to Swanbank and Tarong power Manufactured Water Authority, a Queensland Government stations and there is the potential to also supply to future statutory authority established on 2 May 2008 under the industrial and agricultural customers. When the region’s South East Queensland Water (Restructuring) Act 2007. principal dam levels fall below a combined 40 per cent and The purpose of this legislation was to restructure the water the necessary Queensland Government approvals are in industry in South East Queensland to deliver: place, purified water from the Western Corridor Recycled Water Scheme will supplement drinking water supplies in • improved regional coordination and management of Wivenhoe Dam. water supply Desalinated water of drinking water quality is supplied • more efficient delivery of water services directly into the SEQ Water Grid to blend with other drinking • enhanced customer service for water consumers water sourced from dams and piped to customers in parts of • a clearer accountability framework for water supply the Gold Coast and Brisbane. security. On 5 December 2010 the Queensland Government Our vision announced that from 1 July 2011 WaterSecure would merge We are a customer-focused world leader in sustainable, with Seqwater. large-scale water supplies. Until 30 June 2011, WaterSecure’s head office was located at Level 2, 95 North Quay, Brisbane QLD 4000. From 1 July 2011, Our mission head office is located at 240 Margaret Street, Brisbane QLD WaterSecure’s mission is: 4000. A second office is on the Gold Coast, next to the Gold • to substantially enhance the security of water supplies Coast Desalination Plant. • to manage and improve the environmental footprint and environmental benefits of our business Role and functions • to inform, influence and participate in the ongoing WaterSecure is responsible for producing and supplying development of associated water industries. purified water and desalinated water to the South East Queensland Water Grid. Our values WaterSecure’s water supply system includes more than 200 WaterSecure works together as one team, guided by our kilometres of large-diameter underground pipeline, three SPIRIT values: advanced water treatment plants located at Bundamba, Safety is broader than workplace health and safety. Luggage Point and Gibson Island and a sea water reverse WaterSecure is committed to providing water supplies that osmosis desalination plant at Tugun on the Gold Coast. always meet and aim to exceed the water quality, safety The combined production capacity of WaterSecure’s and environmental regulatory requirements through the assets is up to 365 megalitres a day; the Western Corridor provision of safe work places and the effective management Recycled Water Scheme has the capacity to supply up to 232 of water supply infrastructure. megalitres of water a day and the Gold Coast Desalination 4 | WaterSecure Annual Report 2010-11 People – WaterSecure is committed to supporting and Aligning WaterSecure’s objectives and strategies developing our people and encouraging them to show with the Toward Q2 Ambitions leadership and initiative. WaterSecure’s objectives and strategies in 2010-2011 were Integrity – WaterSecure is open and honest to earn and aligned with the Queensland Government’s Toward Q2 maintain the support and trust of all stakeholders. We will Ambitions. always endeavour to understand and comply with our STRONG – WaterSecure strives to provide security and obligations (including legislation, contracts, standards, quality in the provision of new water sources. policies and procedures) and contribute to a culture of compliance. GREEN – WaterSecure is committed to improving its environmental performance and minimising its carbon Respect – WaterSecure staff respect each other, the footprint. During 2010-2011, processes at the Bundamba community and the environment in which we operate. We Advanced Water Treatment Plant were modified to further will always protect and seek to enhance our environment. reduce the level of nutrients discharged into the Brisbane Innovation – We seek continuous improvement by River and the Gold Coast Desalination plant purchased challenging our thinking and that of others, encouraging Renewable Energy Certificates to offset carbon emissions. our team to think innovatively. We will take decisive action SMART – WaterSecure’s advanced water treatment plants to achieve best outcomes whilst applying risk-based use world-class advanced water treatment technology decision making. incorporating microfiltration, reverse osmosis, advanced Teamwork – We understand that the power of the team oxidation and disinfection to purify water. exceeds the power of any individual and will partner for the HEALTHY – The Water Supply (Safety and Reliability) Act 2008 benefit of stakeholders. We understand that knowledge was introduced to establish regulations to ensure the safe is a valuable resource and we are committed to building supply of recycled water and drinking water in Queensland. corporate capability through the capture, retention and WaterSecure’s purified and desalinated water undergoes a sharing of corporate knowledge with our colleagues. rigorous testing program supervised by Queensland Health and regulated by the Office of the Water Supply Regulator. Strategic choices and key priorities WaterSecure’s work in 2010-11 has been guided by four key FAIR – WaterSecure promotes a fair and equitable priorities: workplace and in 2010-2011 tailored operations to optimise costs for the benefit of the community. 1. Focusing on the needs of customers and stakeholders 2. Optimising operational performance, including managing costs with tight controls 3. Being a key part of the water industry – staying relevant 4. Building and retaining corporate capability. WaterSecure Annual Report 2010-11 | 5 Sam Romano David Gray Acting Chief Executive Officer Chair CEO and Chair Report As this is our final annual report as WaterSecure, there are WaterSecure’s North Quay office and the Luggage Point a number of people to thank. Firstly, we must pay tribute and Gibson Island Advanced Water Treatment Plants were to the outgoing Executive Management Team for their evacuated during this time. Oxley, Goodna and Bundamba dedication to WaterSecure and wish them well as they pumping stations were inundated with floodwater and take on new challenges. We would also like to express our we sustained damage to several WaterSecure pipeline gratitude to the WaterSecure Board for the support and easements with landslips occurring on Esk-Kilcoy Road and leadership they have provided over the past three years and near the Goodna pumping station. Rectification works were thanks must also go to all staff at WaterSecure who worked undertaken and supply has