Department of Lands and Planning. Annual Report

Transcription

1 Department of Lands and Planning Annual Report

2 Annual Report Published by the Department of Lands, Planning and the Environment Northern Territory Government Apart from any use permitted under the Australian Copyright Act, no part of this document may be reproduced without prior written permission from the Northern Territory Government through the Department of Lands, Planning and the Environment. ISSN Enquiry should be made to: Department of Lands, Planning and the Environment GPO Box 2520 DARWIN NT 0801 Telephone: (08)

3 Letter to the Ministers from the Chief Executives, Department of Lands, Planning and the Environment and Department of Transport, to Ministers The Hon Terry Mills MLA Minister for Lands, Planning and the Environment Parliament House DARWIN NT 0800 The Hon Adam Giles MLA Minister for Transport Parliament House DARWIN NT 0800 Dear Ministers We are pleased to present you with the annual report of the former Department of Lands and Planning (encompassing the Transport division) for the year ended 30 June The report describes the performance and key achievements of each of the department s divisions, pursuant to section 28 of the Public Sector Employment and Management Act. To the best of our knowledge and belief: a) Proper records of all transactions affecting the department are kept, and employees under our control observe the provisions of the Financial Management Act, its Regulations and applicable Treasurer s Directions. b) Departmental procedures afford proper internal control. A current description of these procedures is recorded in the accounting and property manual. The manual has been prepared in accordance with the requirements of the Financial Management Act. c) No indication of fraud, malpractice, major breach of legislation or delegation, major error in, or omission from, the accounts and records exists. d) In accordance with section 15 of the Financial Management Act, we advise that as at 30 June 2012, the department had adequate internal audit capacity. The results of all internal audit matters have been reported to us. e) The financial statements included in the annual report have been prepared from proper accounts and records, and in agreement with Treasurer s Directions. f) Employment Instructions issued by the Commissioner for Public Employment have been satisfied. Ken Davies Chief Executive Department of Lands, Planning and the Environment 16 November 2012 Mike Burgess A/Chief Executive Department of Transport 16 November 2012

4 Table of Contents Overview About the Department Corporate Governance 04 Our People 05 Achievements and Priorities 06 Performance 07 Legislation 08 Committees and Boards 09 Financial Statements DLP ANNUAL REPORT

5 01Part 1 Overview

6 Key Achievements Conducted public exhibition of and consultation about the Greater Darwin Plan, Released: - 10-year NT Infrastructure Strategy - 10-year NT Integrated Regional Transport Strategy; Northern Territory ranked first in the March 2012 Australian Property Council Report for development assessment timeframes year NT Road Strategy. Approval granted and progress commenced on a new Valuation Services model for the Northern Territory. Completed second year of a three-year program for the survey of Growth Communities. Continued education and awareness about the requirements for building homes in the Territory and the moratorium for existing buildings within declared building control areas to achieve compliance by 30 June Progressed the Residential Building Cover Package, which will provide increased consumer protection, including insurance cover in the event a builder dies, disappears, becomes bankrupt or deregistered and supporting documentation for residential buildings in the Territory. Released land in regional centres for residential development. Opened the Coolalinga and Humpty Doo park and ride facilities. Completed the $17 million Stage 3 of the East Arm Port Access Project Berrimah Road overpass. All taxis fitted with CCTV cameras to improve driver and passenger safety. Opened the $3 million Howard Springs to Palmerston cycle path. Completed the McArthur River Bridge near Borroloola and the Mainorou River Bridge on the Central Arnhem Road. Expanded Mandorah Ferry services, providing additional service and free travel for Cox Peninsula school students and seniors DLP ANNUAL REPORT PART 1: Overview 01

7 Implemented Electronic Development Assessment (eda) Online (2) to further improve development assessment. eda Online (1) commenced operation on 1 July 2010 and all development applications are now lodged electronically through this system. eda2 Online was launched in and enhances the capacity for the online lodgement of planning applications by allowing processing of variation applications (for minor changes to approved developments), applications for Part 5 clearance (following subdivision approval and construction) and certificates of compliance (following development approval and construction). eda2 builds on the progress of eda1 and will continue to make lodging applications easier and processing more efficient. Developed area plans and zoning maps for the Territory Growth Communities of Hermannsburg, Ngukurr, Wurrumiyanga, Lajamanu, Ramingining and Milingimbi. Achieved national recognition for Darwin s robust planning processes in relation to the Council of Australian Governments Capital Cities Planning agenda. Issued titles and leases to support the Ichthys project and workers accommodation village. Delivered the Expression of Interest process for an integrated residential, commercial and tourist accommodation development on Lot Town of Palmerston, a high-profile site in the Palmerston CBD. Delivered two national design competitions for the new city of Weddell: the Weddell New-Town Urban Design Competition and the Weddell Tropical Housing Design Competition. Released Johnston Stage 2 for residential development. Undertook demographic and growth modelling research in the Litchfield Local Government Area, Alice Springs and Weddell. Participated in the Eline Enterprise marine pollution control response. Undertook a study of the housing preferences of home buyers in the Northern Territory. 01 PART 1: Overview Implemented DriveSafe NT, a new driver education, training and licensing program for Territory drivers aged in Darwin, Alice Springs and Katherine. Also launched a new DriveSafe NT Remote two year trial program with a focus on Indigenous youth. Approved funding for 14 energy efficiency projects, including lighting upgrades in 44 schools across the Northern Territory and the installation of a co-generation plant in the Alice Springs Hospital DLP ANNUAL REPORT 5

8 Purpose of the report The annual report for the Department of Lands and Planning (the department) has been prepared by the Chief Executive in order to comply with annual reporting requirements under section 28 of the Public Sector Employment and Management Act, the Financial Management Act and the Information Act. Its primary purpose is to report the department s performance in to the Minister for Lands, Planning and the Environment and the Minister for Transport. Other audiences of this information include the Northern Territory Legislative Assembly, other agencies, our staff and the department s stakeholders. The report provides a comprehensive account of the department s functions and performance against approved budget and performance measures for , and progress against the strategic goals outlined in the department s Corporate Plan It also overviews the department s responsibilities and internal governance arrangements and identifies strategic priorities into Darwin Bus Service is a Government Business Division within the department that provides public transport to the Darwin, Palmerston and rural areas. Its achievements are included in this annual report. Related Annual Reporting The department also works with: The Land Development Corporation (LDC): a corporation that drives strategic residential and industrial land development to stimulate economic growth in the region. The department s Chief Executive is also the Chief Executive of the LDC. NT Build: a statutory body that manages a portable long service leave scheme for construction workers in the Territory. The department has principal administrative responsibility for NT Build. Both the LDC and NT Build produce their own annual reports, separately to that of the Department of Lands and Planning. Throughout this report, department will be used to refer to the Department of Lands and Planning including Darwin Bus Service but excluding the Land Development Corporation and NT Build DLP ANNUAL REPORT PART 1: Overview 01

9 Chief Executive s overview The department recorded strong achievements across a range of transport, lands and planning activities We are pleased to present you with the annual report of the former Department of Lands and Planning (encompassing the Transport division) for the year ended 30 June New Administrative Arrangement Orders have transfered the functions of the former Department of Lands and Planning, to the newly formed Department of Lands, Planning and the Environment, and the Department of Transport. This overview is a reflection of the work undertaken by the department during the previous financial year under the leadership of the then Chief Executive, David Ritchie. The department recorded strong achievements across a range of transport, lands and planning activities during the reporting period. These activities helped shape the built environment and improved the quality of life for people across the Territory. The work in these areas is crucial to Territory communities, the needs of which are being redefined by population increases and a robust economy bringing change to many communities. We made progress on a number of high-priority issues, including the development of transit infrastructure and services, improvements to the coordination and delivery of land releases, and enhancements to community confidence in planning and decision making processes. A major achievement was the public release of three major strategy documents: the Infrastructure Strategy, the Transport Strategy and the Roads Strategy. These strategies are a culmination of many years of hard work and commitment from our staff and will continue to have a strong footprint and provide a high-level framework for the future development of the Territory. Importantly, these strategies outline the current strategic priorities and direction to support our role in undertaking infrastructure and transport service planning, development, management and maintenance, and these functions will be met through the new departments of Lands, Planning and the Environment, and Transport. Developing a well-functioning planning system and creating more strategic focus for planning schemes will ultimately result in faster planning approvals, which is central to enabling our communities to flourish. The availability of appropriate and affordable housing is a major issue affecting social and economic wellbeing in the Northern Territory. Strategic land releases and town planning were priorities for the department, driving developments such as the expansion of Palmerston and the Alice Springs suburb of Kilgariff. Our Strategic Planning division engaged with key community groups about potential facilities and services in these new suburbs. The department worked hard to express the distinctive identities of Territory communities. Urban planning is being reconsidered in the context of placemaking ; the social narrative of a community expressed in the creation of unique people places in established and emerging centres. It is timely to reflect on the huge amount of work that has taken place behind the scenes to support government in securing the Ichthys LNG project for the Territory. The dedicated work of our staff was instrumental in the development of this $34 billion project. 01 PART 1: Overview DLP ANNUAL REPORT 7

10 Chief Executive s overview, continued From site survey and tenure negotiations to development assessment approvals, the work of Land Services helped make the Ichthys project a reality. The Transport Division also played a central role in providing strategic advice on the project s Transport Management Plan and Traffic Impact Assessment. Both documents help inform the project s level of impact on our road network and highlight the need to keep the community informed throughout. The department continued to promote road and marine safety in Specifically, new training and licensing programs for prospective drivers were introduced into urban, regional and remote centres. Marine Safety Branch achieved a 50 per cent reduction in the time taken to recognise overseas survey and certification of vessels and crew associated with the Ichthys project. Significant road upgrades were undertaken during the year, including the sealing of Jenkins Road, construction of the Berrimah Road rail overpass and McArthur River Bridge, and ongoing improvements to the flood immunity of Port Keats Road. These upgrades facilitate better access to communities and commercial precincts, and are tailored to handle the extra demand generated by our growing population and major projects. Expansion of the bus network was complemented by the ongoing acquisition of technologically advanced buses. Outer suburban and rural services were improved by the commissioning of park and ride facilities at Coolalinga and Humpty Doo, which increased transport options for public bus users in these areas. Our work throughout the Territory created opportunities for regional and Indigenous economic development. The Indigenous Land Use Planning Unit continued to work towards delivery of town plans for Territory Growth Communities. The plans are a template for development and underscore the government s commitment to support Indigenous Territorians. At 30 June, nine Territory Growth Communities had Area Plans and zoning maps. Consultation to develop plans with the remaining communities is continuing. We would like to thank the department s staff for their tireless efforts in achieving key targets in the last financial year. Their ongoing dedication to the development of the Territory is reflected in substantial enhancements to the lifestyles of all Territorians. Ken Davies Chief Executive Department of Lands, Planning and the Environment Mike Burgess A/Chief Executive Department of Transport DLP ANNUAL REPORT PART 1: Overview 01

11 02Part 2 About the Department

12 About the Department Who we are The Department of Lands and Planning is a Northern Territory Public Sector agency as defined under the Administrative Arrangements Order issued by The Administrator. The department was created in December 2009 following a machinery-of-government change. What we do The Department of Lands and Planning is responsible for developing the strategic planning and growth frameworks, strategies and infrastructure plans required to sustainably develop the Northern Territory. Department of Lands and Planning Our purpose: to shape the Northern Territory s built environment to enable our communities to flourish Transport Services Land Services Strategic Planning Responsible for: public transport motor vehicle registries commercial passenger vehicles marine and rail safety, including administration of marine pollution road safety education, including implementation of road safety reforms policy, planning and reform in aviation, heavy vehicles and road safety Territory s road network and transport infrastructure Government Business Division: Darwin Bus Service. Responsible for: management of Crown land management of land grants and managing outcomes in relation to Aboriginal land releasing land for residential development administration of Acts related to building, development assessment, Crown land, surveying, valuation, place naming and associated regulations provision of spatial information valuation services development assessment and control processes professional advice to government, the Development Consent Authority, industry and the community statutory survey services. Responsible for: developing strategic plans and policies for sustainable, long-term use and development of land in the Northern Territory processing amendments to the Planning Act and the NT Planning Scheme. Business Services provides corporate services to the department that enable output groups to focus on achieving outcomes through delivery of services to the community and government DLP ANNUAL REPORT PART 2: About the Department 02

13 Our key stakeholders and environment Territory Government agencies Minister for Lands and Planning; Transport; and infrastructure Land and building developers and Industry Commonwealth, state and local governments Department of Lands and Planning Key Stakeholders Industry, service providers, road/ rail/marine, peak bodies Project proponents Community public transport users road users home owners health service providers NGOs 02 PART 2: About the Department DLP ANNUAL REPORT 11

14 Our key areas of focus Corporate goals The department s three-year Corporate Plan was set the following six key areas of focus. 1 Education support access for school children across the Territory to regular, safe travel options ensure that suitable serviced land is identified for educational institutions, including schools and tertiary institutions in residential centres continue demographic and economic modelling to meet the needs of educational institutions, including schools and tertiary institutions continue to work with schools to improve energy efficiency provide leadership and influence in the university city project. 2 Health and Wellbeing provide facilities that frontline health and human service agencies can use to spatially enable information they collect and manage implement the department s Strategic People Plan and Health and Wellbeing Strategy to provide a work environment that maximises employee productivity and satisfaction and minimises risk implement transport plans, with a focus on alternative and active transport modes plan for walkable, sustainable communities that people want to live in implement the Road Safety Action Plan. 3 Economic Sustainability research a Greater Darwin Growth Model through population data analysis examine the economic effects of the Ichthys project through ongoing modelling facilitate infrastructure development at East Arm Wharf, Blaydin Point site, Howard Peninsula and the Tank Farm plan and design new land developments, including Weddell and Kilgariff implement Planning for the Future outcomes in Alice Springs, Tennant Creek and Katherine. 4 Society implement the 10-year Infrastructure Strategy to provide for the needs of the Territory community release serviced land to meet the housing and social infrastructure needs of the community design, commission and maintain transport infrastructure strategies to meet community needs develop and implement roads and transport strategies to ensure that roads meet community needs assist in the delivery and promotion of road, rail and marine safety programs to regional and remote communities. 5 Knowledge, Creativity and Innovation implement the Asset Management System continue Integrated Land Information System (ILIS) developments to streamline processes relating to government land management, land release, land registration, and land and property valuation develop and implement electronic lodgement and processing systems for survey and unit plans implement stakeholder management systems and frameworks to improve key stakeholder relations continue to support NT industry to identify and realise additional commercial opportunities for ILIS in Australia and overseas. 6 Environment complete projects under the government Energy Efficiency program implement the Territory Government s Building Energy and Greenhouse Strategy incorporate planning for sustainable design principles in government land releases, including Weddell improve and expand regional and urban bus networks continue the Global Navigation Satellite Systems positioning infrastructure program to achieve a total of 25 operational base stations DLP ANNUAL REPORT PART 2: About the Department 02

15 Organisational structure Chief Executive Strategic Planning Strategic Lands Planning Infrastructure Strategy Coordination Sustainability Unit Territory Growth Planning Unit Transport Planning Major Projects Transport Road Network Transport Planning Policy and Reform Transport Services Business Services Financial Services HR Services Knowledge and Information Services Information Technology Marketing, Communications and Secretariat Legal Governance Regions Alice Springs Katherine Tennant Creek Nhulunbuy Land Development Corporation Industrial Land Residential Land Marketing and Communications Legal Land Services Building Advisory Services Land Information Development Assessment Services Land Administration Lands and Planning, Alice Springs Lands and Planning, Katherine 02 PART 2: About the Department DLP ANNUAL REPORT 13

16 Corporate Plan Achievements Northern Territory ranked first in the 2012 Australian Property Council Report for development assessment timeframes Linking structure, corporate goals and achievements The table below depicts how the department s divisions deliver on our corporate goals. Our Business Regions team provides the full range of departmental services to Katherine, Nhulunbuy and Alice Springs and therefore contribute to multiple corporate goals across all output groups. Output group Lands Business units Land Information Land Administration Building Advisory Services Development Assessment Services Planning Strategic Planning Transport Public Transport Road Transport Transport Safety Road Network Transport Assets Transport Policy Business Services Business Services DLP ANNUAL REPORT PART 2: About the Department 02

17 Key corporate goals Achievements release serviced land for housing, community and education needs Implement Global Navigation Satellite Systems positioning infrastructure program continue ILIS enhancements implement electronic lodgement and processing systems for survey and unit plans implement Residential Building Cover package üü released residential land in Johnston Stage 2 for residential development üü released land in regional centres for residential development üü Northern Territory ranked first in the March 2012 Australian Property Council Report for development assessment timeframes üü implement online system: Electronic Development Assessment 2 üü progressed with implementing the Residential Building Cover Package examine economic effects of the Ichthys project and design new land developments, including Weddell and Kilgariff plan and design new land developments, including Weddell and Kilgariff complete projects under the government Energy Efficiency program implement the 10-year Infrastructure Strategy to provide for the needs of the Territory community plan for walkable, sustainable communities that people want to live in üü framed government s options for managing growth pressures and opportunities associated with the Ichthys project üü undertook demographic and growth modelling in the Litchfield Local Government Area, Alice Springs and Weddell üü continued the design and construction of headworks infrastructure in Alice Springs, including construction of the Norris Bell intersection to facilitate the release of land at Kilgariff for residential development üü continued a program of baseline environmental and other priority studies associated with the development of the future city of Weddell üü approved 14 energy efficiency projects, including energy efficiency lighting upgrades in 44 schools across the Northern Territory and installation of a co-generation plant at Alice Springs Hospital üü released the Building the Future, Northern Territory Government; 10- year Infrastructure Strategy üü conducted public exhibition of and consultation about the Greater Darwin Plan üü undertook a study of the housing preferences of home buyers in the Northern Territory üü delivered two national design competitions for Weddell implement the 10-year Transport and Road Strategies deliver and promote road, rail and marine safety programs to regional and remote communities implement transport plans with a focus on alternative and active transport modes implement the Road Safety Action Plan improve and expand regional and urban bus networks implement the Asset Management System üü üü üü üü üü üü üü finalised and released the Transport and Road Strategies implemented the DriveSafe NT program in Darwin, Alice Springs and Katherine and DriveSafe NT Remote trial program developed the Travelsmart Strategy finalised and released the Road Safety Action Plan opened Coolalinga and Humpty Doo park and ride facilities opened the $3 million Howard Springs to Palmerston cycle path Implemented the Asset Management System, with refinements ongoing implement the Strategic People, Plan, Health and Wellbeing Strategy implement stakeholder management systems and framework üü üü developed Emerging Leaders, Regulatory Training and Mentoring programs implemented a new Work Health and Safety framework 02 PART 2: About the Department DLP ANNUAL REPORT 15

18 Executive Leadership Team Chief Executive David Ritchie David has held the Chief Executive position in various departments for more than 19 years. During that time he has initiated institutional reform and developed new systems to increase organisational capability. Prior to heading the Department of Lands and Planning in December 2009, David was Chief Executive of the Department of Local Government and Housing, where he was responsible for reform of local government and public housing across the Territory. David is a board member of the Northern Territory Land Corporation, the Conservation Land Corporation and the Cooperative Research Centre (CRC) for Remote Economic Participation. He is a fellow of the Australian Anthropological Society and the Australian Institute of Company Directors. 02 Executive Director Business Services Tracey Scott Tracey joined the Northern Territory Public Service (NTPS) in 2005 as the Chief Financial Officer for the former Department of Business, Economic and Regional Development, Tourism NT and the Land Development Corporation. She has been with the Department of Lands and Planning since July For 16 years prior to joining the department, Tracey was Senior Director for a multinational professional services firm in Darwin, where she provided consulting and advisory services to all levels of government. Tracey has a Bachelor of Business (Accounting) and is a member of the Australian Institute of Chartered Accountants. 03 Executive Director Lands Leah Croke Leah joined the NTPS as an administrative trainee in 1993 with the then Department of Lands and Housing. She has principally worked with the department undertaking roles in Organisational and Business Services (Corporate), Transport and Lands Services at senior levels. Leah has been in her current position since 2008 and has a Bachelor of Economics and postgraduate qualifications in town planning and management. She recently completed a Masters qualification in Public Policy DLP ANNUAL REPORT PART 2: About the Department 02

19 Executive Director Strategic Planning David Malone David is the department s Executive Director for Strategic Planning which focuses on land use planning, economics, demography, engineering, design and sustainability services to the Department. It has carriage of the development of Weddell and Kilgariff, as well as the early development works for a range of lands-based projects. Previously, David led the team that managed the development of the Northern Territory s strategic plan, and was Executive Director for the Office of Territory Development, Major Projects, Asian Relations and Trade and Regional Economic Development. From 1996 to 2002 he was also the General Manager of the Territory Construction Association, now known as Master Builders NT. David has an economics degree. 05 Executive Director Transport Sharron Noske Sharron has held senior positions across the NTPS since 1988, including Deputy Chief Executive of Strategic Policy and Futures with the Department of Education and Training, and Executive Director of Strategic Services in the Department of the Chief Minister. Sharron joined the department in early 2010 as the Executive Director of Strategic Planning and in February 2011, moved to her current role with responsibility for the road network, transport assets, transport services and policy reform. 06 Executive Director Regions Ann Jacobs Ann is the representative for the department s regions and oversees the activities of the regional offices in an area from Alice Springs to Nhulunbuy. Ann has spent more than 30 years in the NTPS, including in the Department of Health, the Office of the Commissioner for Public Employment and the Department of Infrastructure, Planning and the Environment. Ann has a Graduate Certificate in Public Sector Management. 07 Executive Director Land Development Corporation John Coleman John joined the Lands Branch in 1976, which subsequently evolved into the Department of Lands and Planning. Since then he has undertaken many roles in land administration and land development, and was the first Regional Director for Lands and Housing in Katherine in the mid-1980s. John was formerly the General Manager of Destination Development in Tourism NT and Executive Director in the Department of Business and Employment. 02 PART 2: About the Department DLP ANNUAL REPORT 17

20 Workforce Profile 550 full-time equivalent staff at 30 June 2012 Technical 11% Professional 11% Male 49% Physical 8% Female 51% Graduates & Trainees, 3% Physical 61% Executive 6% Male Female DLP ANNUAL REPORT PART 2: About the Department 02

21 03Part 3 Corporate Governance

22 Our governance framework Good corporate governance refers to the systems by which an organisation is controlled, how it operates and the mechanisms by which it and its people are held to account. Our governance framework guides the actions of individuals by providing clarity and direction about appropriate behaviour and decision-making. DLP Governance Framework Accountability & Standards Controls & Compliance Executive Team Strategy & Planning Operations & Performance Accountability & Standards Legislation and regulations Government (minister) Treasury (budgets) Key stakeholders Strategy & Planning Vision and mission Strategic business plans Organisational structure Capability and leadership Service charter/delivery Workforce development Risk management Operations & Performance Action plans Systems and procedures Financial reporting Service improvemement Individual performance plans Internal and external reporting Controls & Compliance Governance framework Internal audit Compliance and reporting Code of Conduct Delegations Auditor General DLP ANNUAL REPORT PART 3: Corporate Governance 03

23 Our governance framework The governance framework is underpinned by nine principles that provide the foundation for the development of a self-diagnostic process to assess our maturity and areas of improvement The department s governance framework is underpinned by nine principles, that provide the foundation for the development of a self-diagnostic process to assess our maturity and areas of improvement. The principles are: Principle 1: Government and public sector relationship Principle 2: Management and oversight Principle 3: Organisational structure Principle 4: Operations Principle 5: Ethics and integrity Principle 6: People Principle 7: Finance Principle 8: Communication Principle 9: Risk management 03 PART 3: Corporate Governance DLP ANNUAL REPORT 21

24 Risk management Strategic Business Risks In 2010, the Executive Leadership Team reviewed and updated the department s strategic business risk assessment to align with the profile of the new department: The Department of Lands and Planning. The risk assessment examines potential risks faced by the department in delivering its responsibilities. The department identified the following priority risk areas that had consequences rated as major or severe: Risk area Integrated strategic planning lack of integration and alignment of key strategies Failure to implement strategic plans and deliver objectives misunderstanding of the department s future directions operational planning and service delivery not aligned with strategic directions Legislative non compliance / regulatory capacity failure to comply with framework (financial and procurement guidelines) failure to meet regulatory obligations as legislation owners (all legislative acts) and meeting government and community needs Ability to deliver services across the NT and to meet stakeholder expectations perceived lack of consultation and strategic planning for whole of NT, including regions Sustainability / climate change failure to meet whole-of-government energy management targets Stakeholder relationships negative impact on reputation (lack of confidence) with community and other stakeholders Recruitment, management and retention of an appropriately skilled workforce Response Corporate Governance Framework reviewed and re-designed to inform and guide decision making across the divisions with clear pathways of accountability and responsibility annual report project has been managed by a project team to ensure understanding across the agency corporate plan was redesigned to strengthen linkages to government priorities and to facilitate integrated planning. employee performance management framework, Plan Do Review (PDR), designed and implemented with links to the corporate plan, individual position descriptions, and public sector leadership and behavioural expectations to increase capacity of staff to deliver objectives of corporate and divisional plans revised planning structure implemented to strengthen reporting to Executive Leadership Team against divisional plans. engaged a number of consultants to strengthen the department s regulatory capacity, to deliver good regulatory practice through robust decision making launched research into a formal mechanism for internal control self-assessment, including system development, reporting capability at multiple levels within the department and monitoring of review schedules developed a performance management system for improved financial management and automated corporate performance reporting. developed a communications strategy that includes an intranet review project and the annual stakeholder survey. established a Green Team to focus on organisational responses to environmental and sustainability issues performance against the NTG Greening the Fleet Strategy targets are actively monitored, with regular reporting to ELT to ensure decision making is informed across the department the NTG Energy Smart Buildings Policy set a target of 10%, and the department achieved a 17% reduction in energy intensity through implementation of more efficient lighting and after hours air-conditioning arrangements. a Stakeholder Engagement Group was formed to enhance organisational understanding of stakeholder expectations and to ensure a coordinated approach to strategic issues and relationships. the Strategic People Plan addresses needs in this area employee performance management framework, Plan Do Review (PDR), designed and implemented with links to the corporate plan, individual position descriptions and public sector leadership and behavioural expectations DLP ANNUAL REPORT PART 3: Corporate Governance 03

25 Risk management Like all large organisations, the Department of Lands and Planning is a complex socio-technical system with many sources of risk that are difficult to predict. The ability to remain responsive to risk is a key focus of the department. Risk Management The department maintains a risk management strategy to monitor internal and external risks and inform decisions about dealing with them. The department s risk management strategy has three components: enabling powerful decision making despite uncertainty building whole-of-organisation awareness and responsiveness providing and using powerful tools for finding and understanding risks. DLP regularly conducts cross-boundary risk leadership forums to break down work silos and to build the ability of DLP leaders to reduce internally generated risks, share information and to work together in complex situations. It enriches their understanding of the factors driving performance, of future options and possibilities and of how to optimise risk responses as a whole, rather than risk by risk. Internal Controls The department has a number of internal control mechanisms designed to mitigate risks in the workplace. Corporate Delegations: the Chief Executive delegates certain powers to other employees under the Financial Management Act, the Public Sector Employment and Management Act, the Procurement Act, and the Contracts Act. The CE has approved the following delegations, which were updated during : 1. Financial delegations (FMA) 2. Human Resources delegations (PSEMA) 3. Procurement and Contracts delegations (PA and CA) Conflict of Interest: Whistle-blowers: Code of Conduct: Freedom of Information and Privacy: Insurance: whether real or perceived, conflicts of interest erode confidence in the integrity of the organisation. Executive directors and branch managers are responsible for ensuring staff declare any conflicts, which are reported to the department s Risk Management and Audit Committee (RMAC). No conflicts of interest were declared by departmental officers during the year. staff are regularly reminded they can report wrongdoing through whistle-blower legislation. The Executive Director, Business Services is the department s Protected Disclosure Officer. No public interest disclosures were lodged about the department s officers over the year. through internal training programs such as the Induction program, staff are regularly reminded of their responsibility to act in accordance with the Code of Conduct. Where an employee acts in contravention of the Code of Conduct, the department may commence disciplinary proceedings. in accordance with the Information Act, the department has a range of policies and procedures to enable individuals to access records and information held by the department. Seven applications to access government information were accepted and processed by the department during the year. The department also received seven other applications for government information during the year, which were not accepted as the applicants were able to obtain relevant information via standard administrative processes. This is the preferred process where possible. No applications to obtain or correct personal information were received during the year. like the majority of Territory public sector agencies, the department self-insures with specific arrangements made for public liability associated with Crown land. The Darwin Bus Service also self-insures. 03 PART 3: Corporate Governance DLP ANNUAL REPORT 23

26 Through the Strategic Internal Audit Program, departmental risks as identified in the Strategic Business Risk Assessment are reviewed and recommendations made on business improvement opportunities Monitoring through audits and reviews The quality of our control systems are monitored as part of the Business Services Divisional Plan. Internal and external audits, performance audits, financial statement audits and assurance reviews are conducted to determine the accuracy and reliability of information and provide: an independent assessment of selected areas of the department an assurance about public sector financial reporting, administration and accountability. The department conducted 13 external audits and reviews and managed three internal audits during Internal Audits Through the Strategic Internal Audit Program, departmental risks as identified in the Strategic Business Risk Assessment are reviewed and recommendations made on business improvement opportunities. An internal audit service provider has been engaged to provide an independent and objective review and advisory service to the department. This arrangement provides assurance to the Chief Executive and the committee that the department s financial and operational controls: manage organisational risk achieve organisational objectives operate efficiently, effectively and in an ethical manner assist management to improve business performance. Internal audits enable the department s Risk Management and Audit Committee (the committee) and Executive Leadership Team to determine if appropriate risk and internal control mechanisms are in place for a strong risk and compliance culture DLP ANNUAL REPORT PART 3: Corporate Governance 03

27 Audits and reviews Internal Reviews Conducted in One internal audit review was carried over from due to the complexity of the scope, and three others have been conducted and completed. Review Date Comments Review of procurement activity for Mandorah Ferry Review of controls to achieve Greening the Fleet objectives Review of information protection and acceptable usage of IT resources November 2011 May 2012 May 2012 A probity assessment was conducted on the procurement process to identify any potential areas of concern and maximise opportunities to improve procurement process in the department and across government. The review found that due process was followed and appropriately delegated approvals to seek tenders were given. Recommendations to improve administration processes are being implemented across the department. The objective was to assess the processes and internal controls in place to ensure the department achieves its targets under the government s Greening the Fleet strategy. It was found that targets and actions need to be clarified, communicated, properly tracked and monitored, including the under/over-utilisation of fleet vehicles. The Vehicle Management System (under development at 30 June 2012) is being reviewed to ensure these issues are addressed. Two program items were combined: Compliance ICT End User Policy and Performance of Controls for Business Drive Access. This review assessed the department s approach to managing risks in information security, staff computer usage and protection of confidential information. Recommendations related to the information security framework, classification protocols, training and implementation of technical controls. A review of the service delivery framework in the Information and Business Systems unit will look to incorporate these recommendations. 03 PART 3: Corporate Governance DLP ANNUAL REPORT 25

28 Audits and reviews External Audits External audits play a major role in the way the department is accountable for its financial, compliance and performance outputs. External audits are conducted by outside entities, usually the Auditor-General of the Northern Territory, although other providers can be used. The Auditor-General reports directly to Parliament twice a year, and releases reports publicly. The Auditor-General conducted and completed nine external audits on behalf of the department in The outcomes of the audits were mostly satisfactory and the recommendations were incorporated into amended policies and procedures. External Audits Conducted in External Audit Date Comments End of Year Review: Agency Compliance Audit Darwin Bus Service: Financial Statements Audit Surveyors Board of the NT: Financial Statement Audit Interstate Road Transport Act 1985 Acquittal: Financial Statement Audit Nation Building Program (National Land Transport) Act 2009 December Acquittal: Financial Statement Audit Statements of Receipts and Expenditure of Funds: National Land Transport August 2011 August 2011 August 2011 September 2011 October 2011 October 2011 The primary objective of the audit was to assess and test the adequacy of systems developed by the department to comply with its accountability and control requirements. There were no significant matters or material weaknesses identified. The audit scope included audit of general purpose financial report. An unqualified audit opinion was issued. The audit scope included audit of general purpose financial report. An unqualified audit opinion was issued. The audit was conducted to enable opinions to be expressed about the Statement of Amounts Expended or Set Aside and the Registration Revenue Statement pursuant to the Interstate Road Transport Act. An unqualified audit opinion was issued. The audit was undertaken to enable opinion to be expressed about the Statement of the Receipts and Expenditure of the Roads to Recovery payments received by the Department of Lands and Planning under Part 8 of the Nation Building Program (National Land Transport) Act (Statement of Expenditure) prepared under the Nation Building Program (National Land Transport) Act that requires acquittal by 31 October. An unqualified audit opinion was issued. The audit was undertaken to enable opinion to be expressed about the various Statements of Amounts Expended or Set Aside for Expenditure from Monies paid to the Northern Territory (Statements of Expenditure) prepared under the Nation Building Program (National Land Transport) Act that require acquittal by 31 December. An unqualified audit opinion was issued DLP ANNUAL REPORT PART 3: Corporate Governance 03

29 Audits and reviews External Audits Conducted in , continued External Audit Date Comments Procurement Audit: Interstate Purchases Procurement Audit: Credit Card Transactions Agency Compliance Audit December 2011 December 2011 February 2012 A number of purchases from interstate suppliers were identified that did not comply with procurement requirements. Staff were made aware of the requirements and, as a result, no further incidents have arisen No matters arising from the audit. Audit findings related to: management accounts may be incomplete due to un-posted, but completed work in progress (WIP) balances an indemnity not endorsed by legal services procedures for recognition of assets and gifting of built infrastructure to local and non-government organisations. Other External Reviews Two audits/reviews were conducted by other external providers during the reporting period: External Audit Date Comments Provision of Regular Scheduled Passenger Services between Cullen Bay and Mandorah Wharf: Procurement Compliance Investigation, Major Training Services FaHCSIA Tasks of Opportunity: Intervention Funding Acquittal March 2012 December 2011 Financial report presents fairly in accordance with Funding Agreement. Investigate the procurement process undertaken for the Request For Tender (RFT) in terms of compliance with government s procurement policy. The investigation found that the overall procurement process was both valid and complied with the NT Procurement Framework in all essential elements, with some opportunities to improve administrative processes. 03 PART 3: Corporate Governance DLP ANNUAL REPORT 27

30 Administrative structure and accountability Administrative structure and accountability The Chief Executive is supported by the Executive Leadership Team through a clearly defined administrative structure. As needs change and restructures occur, the organisational chart, which clearly articulates the accountability pathway, is updated and published on the intranet. Each of the corporate delegations and other internal control mechanisms are updated when this structure is changed to ensure relevance and currency. Executive Committees and Boards The Executive Leadership Team provides governance and leadership to a number of committees that support our key objectives and purpose. This relationship is identified in the figure below. Executive Leadership Team Risk Management and Audit Committee Information Management Committee Work Health and Safety Steering Committee Organisational Development Committee Health and Wellbeing Committee Figure 1 (77): Committees supporting the Executive Leadership Team Each committee s purpose, membership during the year and achievements are provided in the following section, along with identification of priorities for Executive Leadership Team The Executive Leadership Team (ELT) assists the Chief Executive in high-level monitoring of organisational performance, identification of critical issues and development of appropriate departmental response. Through the Senior Leaders Forum, the ELT develops leadership capability and shares knowledge. Membership Chief Executive: David Ritchie Executive Director, Strategic Planning: David Malone Executive Director, Land Services: Leah Croke Executive Director, Transport Services: Sharron Noske Executive Director, Business Services: Tracey Scott Executive Director, Regions: Ann Jacobs Executive Director, Land Development Corporation: John Coleman DLP ANNUAL REPORT PART 3: Corporate Governance 03

31 Administrative structure and accountability Risk Management and Audit Committee The primary objective of the Risk Management and Audit Committee (RMAC) is to assist the Chief Executive to fulfil his responsibilities in relation to the department s corporate governance activities. This includes risk management, internal control structures, the performance of internal and external audit functions and reporting processes. The RMAC meets bi-monthly, with additional meetings scheduled to deal with other business as required. The RMAC s charter is reviewed bi-annually, at which time membership is also reviewed. Membership Internal departmental members External members Invited attendees Executive Director, Business Services: Tracey Scott Director, Governance: Belinda Townsend Commercial Director, Land Development Corporation: Mark Norman A/Director, Darwin Bus Service: Alex Rae Deputy Chief Executive Officer, Department of the Chief Minister (Chair): Rod Applegate Executive Director, Business Services, Department of Natural Resources, Environment, the Arts and Sport: Susan Kirkman Auditor General for the Northern Territory or nominee Chief Financial Officer, Department of Lands and Planning: Jasmin Aldenhoven Manager Procurement and Compliance, Department of Lands and Planning: Matthew Chin Executive directors or senior managers as required achievements completed the Strategic and Operations Risk Mapping Register, which provides clear linkages between strategic business risks, operations risks and the mitigation projects being undertaken conducted four internal reviews and coordinated 13 external audits on departmental processes, projects or activities recommended actions to strengthen the Corporate Governance Framework and improve the reporting and monitoring capability of the ELT reviewed and updated the Risk Management System, including revising overarching policy, accompanying strategy, toolkits and resources priorities finalise the Risk Management System continue development of the Corporate Governance Framework to include supporting policies, toolkits and documentation implement the Public Accounts Committee s May 2011 recommendations for internal controls implement a formal mechanism for internal control self-assessment, including system development, reporting capability at multiple levels within the department and monitoring of review schedule progress the corporate business systems development project. 03 PART 3: Corporate Governance DLP ANNUAL REPORT 29

32 Administrative structure and accountability Work Health and Safety Steering Committee The Work Health and Safety (WHS) Steering Committee assists the department to instigate, develop and carry out measures relating to the health, safety and welfare of staff. The steering committee is made up of representatives from all department buildings and includes representatives from all regions. The department also has a number of WHS committees at its various locations. Membership Committee Chair Contacts Work Health and Safety Steering Committee Alice Springs health and safety committees OHS combined, Greatorex Building OHS combined, Alice Plaza MVR North Stuart Highway Darwin CBD committee Energy House NAB Arnhemica Darwin Region, MVR Goyder Road Ethos House Palmerston Katherine Tennant Creek Tracey Scott Executive Director Business Services May Taylor Regional Manager Charlotte Sankey (DCI) Kirra Morgan Development Assessment Services Therese Schutt Garry West Surveyor General Land Information Judith Plenty Manager, Staff Development, MVR Richard Morris, Regional Director Morgan Byrne, MVR Mella Martin-Hewitt Manager Work Health and Safety May Taylor Laura Randall (EIC) Perlie-Anne Mabasa Brendan Taylor-McInnes (HSR), MVR Paul Mossman (HSR) Transport Planning Darren Wilson, MVR Alexis Berger (HSR) Further details on work health and safety activity can be found in the Our People section of this report DLP ANNUAL REPORT PART 3: Corporate Governance 03

33 achievements Service Counter Audits completed and protection screens upgraded at Energy House, Palmerston MVR, Goyder Road MVR and Ethos House presentation on personal safety duty of care responsibilities under new legislation delivered to staff distributed OH&S management system chart to staff first aid and floor wardens trained and assessed as meeting code of practice guidelines workgroups formed and seven Health and Safety Representatives (HSRs) trained across the department developed Work Health and Safety induction presentation and delivered at corporate inductions established new Work Health and Safety Steering Committee priorities reduce the internally generated risks of failing to comply with the duty of care obligations of the Work Health and Safety (National Uniform Legislation) Act 2011 and associated Regulations enhance the dynamics of transparency, collaborative networking, sharing of information, consultation over WHS matters and robust decision making to enable safer workplaces. Information Management Committee The Information Management Committee (IMC) is a cross-agency group that focuses on the development of information and business systems in the department. The IMC is chaired by the Executive Director, Business Services and includes membership from each of government s agencies. Membership Corporate members Divisional members Executive Director, Business Services: Tracey Scott Director, Knowledge and Information Services: Kate Booth Director, IT Services: Donald Young Director, Transport Services: Paul Rajan Executive Director, Land Services: Leah Croke Commercial Director, Land Development Corporation: Mark Norman Executive Director, Strategic Planning: David Malone achievements draft IT Strategic Plan endorsed reviewed and approved Movers Modernisation project reviewed and approved the Building Advisory Services (BAS) file scanning project priorities instigate a streamlined online approvals process release business case template and whole-of-agency communications revise criteria for projects being referred to Information Steering Committee (ISC). 03 PART 3: Corporate Governance DLP ANNUAL REPORT 31

34 Administrative structure and accountability Organisational Development Committee The Organisational Development Committee (ODC) provides a forum for the department s divisions to contribute to organisational and workforce development activities. Activities the ODC undertakes include providing comment on draft policies and procedures; reviewing data and research for application in the department; discussing organisational, workforce and Indigenous issues; and considering suitable solutions and making recommendations to the ELT. The ODC provides input in the following areas: graduate, scholarship, traineeship and apprenticeship programs leadership and management training professional development programs that may be funded by the department (corporate initiatives) participation in careers expos annual staff survey identification of targeted or generic training to meet specific development needs building future workforce capability knowledge management Indigenous employment and career development. Membership Corporate members Divisional members Executive Director, Business Services: Tracey Scott Director, HR Services: Sarah Temple Manager, Organisational and Workforce Development: Rosalie Wiltshire Senior Organisational Consultant: Natalie Oldmeadow Senior Director, Building Advisory Services: Steve Popple Director, Land Information Services: Tony Gill Director, Transport Planning Policy and Reform: Nick Papandonakis Director, Transport Services: Paul Rajan Director, MVR: Glenda Thornton Senior Compliance Officer, Commercial Passenger Vehicles: Greg Turner Regional Manager, Business Services: May Taylor Project Officer, Heavy Vehicles, Marine and Rail National Regulators: Sandie Beattie achievements delivered the department s graduate program, from which there were 12 graduates for the period provided input to the Emerging Leaders program delivered professional development programs and started exploring the need for a dedicated development program for administrative officers identified targeted and generic training needs, such as a regulators training program delivered the mentoring program conducted a staff survey and analysed and disseminated the results DLP ANNUAL REPORT PART 3: Corporate Governance 03

35 priorities ensure the department s people management and development systems are efficient and effective and support managers and employees in the achievement of organisational objectives ensure the workforce is skilled and has the capabilities to deliver on the department s corporate objectives ensure the department has sufficient entry-level resources and that these staff are provided with opportunities for development provide ongoing development and learning opportunities for all staff ensure our workforce reflects the community it serves and that the department s obligations under its Indigenous Employment and Career Development Strategy and whole-of-government strategies are being met. Health and Wellbeing Committee The Health and Wellbeing Committee s main function is to promote the department s Health and Wellbeing Strategy. It also identifies and supports health and wellbeing initiatives in the workplace through consultation with staff. Membership Director, Marketing and Communications: Travis Crozier Manager, Organisational and Workforce Development: Rosalie Wiltshire Manager, Work Health and Safety: Mella Martin-Hewitt Regional Manager (Alice Springs), Business Services: May Taylor Executive Assistant to the Chief Executive: Kara McLean HR Consultant: Kellie Green Executive Officer: Emily Heames Project Officer: Jenna Lovett Executive Information Coordinator (Alice Springs): Laura Randall Executive Information Coordinator: Rebecca McAlear Information Coordinator: Denise Raymond Human Resources Graduate: Lisa Zirkel 03 PART 3: Corporate Governance DLP ANNUAL REPORT 33

36 Administrative structure and accountability achievements coordinated free flu vaccinations, which were offered to all staff created the department s work-life balance policy coordinated free health assessments for 87 staff in Darwin and 20 staff in the regions facilitated health information sessions for staff on Resilience and the Art of Positive Thinking, nutrition, men s health, women s health, back health and Strategies for Stress created MyHealth Hour, a formal avenue for employees to access flex time or Time off in Lieu (TOIL) for health and wellbeing activities coordinated/offered yogalates classes developed the MyHealth website priorities develop innovative promotional material to promote health and wellbeing initiatives ensure relevant delegate approval is obtained for the procurement of goods and services under the Health and Wellbeing Strategy review the viability and success of health and wellbeing initiatives establish and maintain links with the Occupational Health and Safety Committee report on the Health and Wellbeing Strategy. Reporting under Charles Darwin University/NT Government Partnership Agreement Charles Darwin University (CDU) and the Northern Territory Government have operated under a partnership agreement since The partnership aims to ensure the economic, social and environmental development of the Northern Territory is supported by a robust and resilient university that works in partnership with government. A new five-year agreement commenced from July 2012 to 2017 the third partnership agreement between the parties. Further information about the agreement is available at For the first time in , agencies were asked to include information in their annual reports about their specific activities under the agreement to promote the partnership within the department and to its stakeholders. Under the partnership agreement, an annual report is prepared and this will include links to each agency s annual report to improve access to relevant information for stakeholders. Activities in : The department participated in the Staff Sharing Arrangement between CDU and the Northern Territory Government, with one CDU employee seconded to the Territory Growth Planning Unit for a period of three years. The department used training provided under the partnership agreement. The Machinery of Government course provided new employees with a comprehensive introduction to the operations and structure of government. The department attended the CDU Careers Fair, which presented an opportunity to promote the career opportunities available in the department DLP ANNUAL REPORT PART 3: Corporate Governance 03

37 The department has undertaken a number of activities to address our corporate responsibility in relation to sustainability and environmental issues. Vehicle Asset Management Greening the Fleet Under the Territory Government s Greening the Fleet strategy, the department has a responsibility to reduce fuel usage and Co2 emissions and to replace vehicles that do not comply with the Green Fleet standards. Centralised procedures have been implemented to ensure new and replacement fleet vehicles are selected using the NTG Green Fleet standards. The Vehicle Management System is being reviewed as a result of the recent internal audit findings to ensure that we strengthen our capability to meet these targets. The Greening the Fleet strategy has set a target to reduce emissions from the government passenger and light commercial fleet by 20 per cent in 2014 and 50 per cent in The department has already achieved a 17 per cent reduction in Co2 emissions. DLP - Co 2 Emissions gm/km Target emissions Actual emissions The department s production of Co2 gas is measured in grams per kilometre (gm/km) as an average for each vehicle in the agency fleet. Under Australian Design Rule, Co2 emissions are used to measure progress against greening the fleet targets in grams per kilometre and are based on the current fleet profile. Actual Co2 emissions are based on fuel consumption and can be distorted by inaccurate odometer readings and different driving styles. Building Asset Management Energy Smart Buildings Policy The Territory Government s Energy Smart Buildings policy provides a framework for government agencies to improve their building energy performance. It set a target of 10 per cent reduction in energy intensity by In 2011, the department reported a 28 per cent reduction in energy intensity compared to This has significantly exceeded the government s target and is significant progress towards the revised one-third (33.3%) reduction target by Generally, the department has been reducing its energy intensity since In , an expansion of Darwin Bus Service and an increase in business activity for the Motor Vehicle Registry saw an increase in consumption. In particular, MVR Goyder Road had a 15 per cent increase in consumption compared with the previous year; attributable to problems with air conditioning and an increase in business traffic. As a significant contributor to the department s energy reporting portfolio, changes in consumption at MVR Goyder Road can impact on the overall departmental performance. A major energy efficient lighting upgrade in Energy House in resulted in higher savings. 03 PART 3: Corporate Governance DLP ANNUAL REPORT 35

38 Sustainability and Environmental Reporting Building greenhouse gas emissions are calculated annually and are based on the energy consumed and the current published National Greenhouse Accounts (NGA) factors. The department reduced its calculated greenhouse gas emissions by 25 per cent over the reporting period. The following graph illustrates the department s energy intensity performance since SUMMARY Energy use (GJ) 5858 Energy intensity (MJ/m 2) reduction since Greenhouse gas emissions (tonnes CO 2 -e) Greenhouse gas intensity (kg/m 2 ) variation compared to % % The department also achieved the third-highest percentage change in energy intensity savings out of a total of 17 agencies that report. It has shown significant savings in total energy use and greenhouse gas emissions. Future Actions The department has made significant progress towards reducing its building energy consumption and intensity. To ensure these gains are sustained, the following areas for improvement have been identified: increasing equipment efficiency increasing building efficiency opting to lease more efficient buildings reducing usage energy auditing monitoring data increasing staff awareness and engagement Baseline FY2005/06 FY2006/07 FY2007/08 FY2008/09 FY2009/10 FY2010/11 Energy Intensity Mj/m2 Baseline Energy Intensity Mj/m2 Actual Energy Intensity Mj/m2 Target Figure 2: Total DLP Energy Intensity Actual vs Target from to DLP ANNUAL REPORT PART 3: Corporate Governance 03

39 04Part 4 Our People DLP ANNUAL REPORT 37

40 Snapshot snapshot Achievements developed and implemented two department-specific training programs: the Regulatory Training program, from which participants will receive a Certificate IV, and a pilot of the Emerging Leaders program, for staff from CLF6 to CLF8 level developed the pilot for a mentoring program implemented a Health and Wellbeing program, which includes the MyHealth website developed online forms for the department s employee management system, Plan Do Review recruited 13 graduates for the 2012 Graduate Program in disciplines of economics, civil engineering, building and land surveying, urban and regional planning, accounting, environmental science and HR management saved $ in training costs by securing 13 productivity places for staff members in Certificate IV qualifications in project management, training and assessment and OH&S. The Productivity Places Program (PPP) is a joint Australian and Northern Territory government program funded by the Australian Government and the Department of Business and Employment (DBE). The department was required to pay only 10% of the course ceiling price, while 90% was funded externally developed and implemented a Transition to Retirement policy and knowledge management elements to support information capture and sharing for retiring staff in long-term or critical positions became a Professional Development Partner of Engineers Australia to support the department s engineers in their professional development developed 36 succession plans for leadership, critical and hard-to-fill positions 51% of department staff completed the NTPS Staff Survey compared with the average NTPS completion rate of 31% invested $ on staff development and the Regulatory Training Program DLP ANNUAL REPORT PART 4: Our People 04

41 Achievements and corporate objectives Linking our achievements in with corporate objectives Corporate Plan Key areas of focus: implement Strategic People Plan and Health Wellbeing Strategy. Strategic People Plan Key areas of focus: creating a high-performing, effective and satisfied workforce building the capabilities of our employees recruiting and retaining skilled employees encouraging diversity and employees who work together creating a safe and supportive work environment. Achievements Developed and implemented department-specific programs: Regulatory Training and Emerging Leaders, and developed a mentoring program implemented Health and Wellbeing Program, including myhealth website approved 13 productivity placements, saving $ developed Tranisition to Retirement policy recruited 13 graduates for 2012 Graduate Program developed 36 succession plans invested $ on training and development. 04 PART 4: Our People DLP ANNUAL REPORT 39

42 Strategic human resources priorities Strategic human resources priorities The department continued to implement its Strategic People Plan in The plan supports corporate objectives and assists the department to achieve its purpose through the contributions of its people. Our focus in this area during was: creating a high-performing, effective and satisfied workforce building the capabilities of our employees recruiting and retaining skilled employees encouraging diversity and employees who work together creating a safe and supportive work environment. Creating a high performing, effective and satisfied workforce Employee Feedback The NTPS Staff Survey was conducted in October Results for the department were positive, generally rating above the whole-of-ntps average, with a response rate of 51 per cent for the department (average NTPS response: 31%). We also demonstrated an overall improvement in employee sentiment when compared with the 2009 NTPS survey results. The strongest findings for the department when compared to whole-of-ntps averages were: positive perceptions that employment is based on merit, that the department has good procedures and processes for selecting employees, and that recruitment and promotion decisions are fair agreement that the department s workplace culture is supportive of work-life balance and flexible work options satisfaction with the level of employee consultation, the encouragement of staff input and the management of change agreement that priorities identified in the 2009 NTPS Staff Survey had been actioned lower reported rate of bullying and harassment in the last 12 months. While the department s results were above the NTPS average in each of the above areas, the areas identified for improvement were: Areas for improvement Fair internal review system Managing performance Managers talking to employees about how agency values apply to their work Current and proposed action department s grievance review system is being reviewed and will be promoted to staff regular training offered the employee performance development framework, Plan Do Review training offered in managing employee performance managers provided with support from HR or executive coaches to guide in performance management. Plan Do Review guides managers and employees to discuss how roles link to agency objectives departmental values distributed to staff with corporate plan DLP ANNUAL REPORT PART 4: Our People 04

43 Strategic human resources priorities The department has also acted on several priority areas identified through the 2010 internal staff survey. Priority areas from 2010 staff survey Action taken in Performance feedback: not having a regular performance review and/or not receiving feedback Workload management: particularly undertaking additional work outside of working hours Efficiencies and improvements: especially in the areas of administrative processes, red tape and perceived slow decision-making Employees and managers have attended the department s Plan Do Review system workshops, which discuss giving and receiving feedback Greater focus on identifying and implementing improvements in systems, and promotion of flexible work arrangements All internal delegations revised to streamline processes and allow for greater manager accountability and improvements to internal processes Health and Wellbeing Good health and wellbeing is a holistic concept that incorporates physical, mental, emotional, social and spiritual wellness. The department implemented a Health and Wellbeing Strategy during to support staff in achieving a healthy work and life balance. Other benefits the strategy will help deliver is a safe and supportive work environment, maximising employee productivity and satisfaction and minimising risk. The Health and Wellbeing team comprises representatives from all divisions and all levels in the department and drove all health and wellbeing activities in with the support of the Executive Leadership Team. As part of its Health and Wellbeing program, the following initiatives and activities are available to all the department s staff: MyHealth website DLP MyHealth Hour Health assessments Health information sessions Yogalates classes MyHealth Hour provides a formal avenue for employees to access flex time or Time off in Lieu (TOIL) for health and wellbeing activities. 87 staff in Darwin and 20 staff in the regional area were provided with free health assessments to check their height, weight, BMI, waist circumference, blood pressure, blood glucose, cholesterol and lifestyle. Free sessions on Resilience and the Art of Positive Thinking, nutrition, men s health, women s health, back health and strategies for stress were offered. Yogalates is a combination of Yoga and Pilates to develop core strength and is suitable for all fitness levels and genders. Held weekly at two DLP locations at a discounted cost of $40 per person for 8 sessions. 37 participants in Darwin for the reporting period. Flu vaccinations 123 staff (20%) were vaccinated in PART 4: Our People DLP ANNUAL REPORT 41

44 Strategic human resources priorities Senior Administrative Officer Pay Progression, 1 July 2011 to 30 June 2012 With the introduction of the new Northern Territory Public Sector Enterprise Agreement, annual pay progression for Senior Administrative Officers and Senior Professionals is now based on performance. Officers employed in a Senior Classification (SAO1, SAO2, SP1 and SP2) for a 12-month period are eligible to apply for progression. This requires a performance agreement (Plan Do Review) to be put in place and is subject to the employee being assessed as meeting performance criteria. Applications in Applications received Applications approved Applications not approved* Total *Two of the three applications not approved were later re-submitted and were approved as the employee was able to demonstrate they had met the performance targets outlined in their Plan Do Review over a 12-month period, and that they had achieved one or a combination of the performance progression criteria. This figure includes the Government Business Division (GBD) of Darwin Bus Service. All applications were assessed against performance agreements and conducted as required under the PSEMA. Building the capabilities of our employees Plan Do Review, Employee Performance Management Framework The PDR system is supported with monthly training that covers using the PDR system, using the Capability and Leadership Framework, setting SMART performance goals, identifying learning needs and developing learning solutions. During , 202 staff members attended PDR training. In January 2012, the PDR system was automated and since then, 360 staff have completed their PDR online. Further enhancements to the system to make it more user friendly are expected to be implemented in the second half of Developing our Leaders The department has a strong focus on developing its leaders capabilities and skills, which is overseen by the Executive Leadership Team and the Organisational Development Committee. During , the following leadership development activities were undertaken: Senior Leaders Forums The quarterly Senior Leaders Forums provide a forum for the Chief Executive and Executive Leadership Team to discuss issues with senior staff as well as provide professional development and support in leadership skills. Four forums were held during the year. Emerging Leaders Program Based on the NTPS Capability and Leadership Framework (CLF), the Emerging Leaders Program focuses on developing the leadership capabilities of middle managers. The Program is open to employees at CLF6 to CLF8 levels and attracted 20 staff in the initial program. The department s employee performance management and development system, Plan Do Review (PDR), supports the culture of high performance and regular and honest feedback. The system provides a structured way for staff to have regular meetings with their manager to clarify what is required of them in their role, identify tasks of high priority, review their performance and discuss opportunities to advance their career. This is in addition to regular performance feedback DLP ANNUAL REPORT PART 4: Our People 04

45 Emerging Leaders Program participants, left to right Top row: Ben Taylor, Deborah Pritchard, Brenton Taylor, Therese Shutt, Juan Pazo, Sally Cunningham, Michael Holmes, Toni Spry Middle row: Claire Manalo, Dennielle Cahill, Sue Cawood, Katie Easom, Rebecca Fuller, Kerri O Brien Front row: Julie Bennett, Jan Kinsella, Connie Gore, Owen Dutton Absent: Simon Flavel, Jenna Lovett. The program focuses on developing future leaders self-awareness, team management skills and strategic thinking capabilities. By working in cross-agency project teams, participants are provided with a mentor to further develop their project management skills, and provide opportunities to network with employees from across the department. OCPE Leadership Programs OCPE s leadership programs were accessed during , including Kigaruk and Lookrukin men s and women s Indigenous leadership programs, Discovery Women as Leaders, Public Sector Management Program (PSMP), Future Leaders Program, Executive Leaders Program and Australia and New Zealand School of Government (ANZSOG) programs. During : 10 employees attended these programs four employees completed their final unit of the PSMP two employees have been sponsored for the next PSMP intake five employees will be commencing other leadership programs later in 2012, including Future Leaders Program, Executive Leaders Program and ANZSOG programs. Training and Development Professional Development Total employees (FTE) Total training and development expense DLP $ $ $ Total training and development expense DBS* $ $ $ Total personnel expenditure $ $ $ Training and development costs as a % of personnel expenditure 0.99% 1.02% 1.10% Training expenditure per employee (FTE) $780 $860 $955 *Darwin Bus Service (DBS) figures do not appear in previous annual reports. 04 PART 4: Our People DLP ANNUAL REPORT 43

46 In , the department invested $ in training and development for its employees Training and development Developing our Professionals The department encourages the development of its professional employees by supporting a range of professional incentives, such as the Professional Development Allowance, Professional Excellence Scheme and other professional incentives. In the past year, six employees have taken up their option to access the Professional Development Allowance, totalling $4593. Engineers Australia In , the department invested $ in training and development for its employees, which equates to $955 per full-time equivalent staff member. This has increased over the years, with the increase in occurring because of the Regulatory Training Program (Table 3). Corporate learning and development opportunities delivered to employees in included corporate induction, code of conduct, workplace etiquette, staff selection and report writing, cross-cultural training, giving and receiving feedback, the probation process, managing performance, divisional presentations and Plan Do Review training. A range of external training was provided to employees, including Develop Personal Resilience through Change, Emotional Intelligent Leadership, Certificate IV qualifications in project management, training and assessment and occupational health and safety, project administration and Microsoft Office training for Word, Excel and Project. Regulatory Training Program In , the department embarked on the development of an accredited training program for its regulators that delivers the elements of good regulatory practice. Commencing in October 2011, the Regulatory Training Program has seen 31 employees attend policy and review training and advanced decision making for government workshops. The customised program commenced in July 2012 with 15 employees enrolled in the first workshop. In early 2012, the department signed a Professional Development Program (PDP) Agreement with Engineers Australia to develop the professional status of our engineers. The agreement provides a structured framework for career planning and development through assessment and provision of feedback while engineers work towards achieving Chartered Status. Professional Development The department supports employees gaining relevant professional and technical skills through higher education. Support provided includes financial assistance for study fees and paid study leave to attend tutorials, lectures and exams. As part of the department s efforts to build the capability of our workforce, it currently provides 15 staff with study assistance to gain qualifications in: Diploma of building surveying Diploma of town planning Bachelor of commerce Bachelor of information technology/media Graduate certificate in geographic information/cross cultural management Graduate certificate in business administration Graduate diploma in regional and urban planning Graduate diploma in project management Chartered accountant CPA Australia Masters in business administration Masters in traffic DLP ANNUAL REPORT PART 4: Our People 04

47 Training and development The table below shows the number of employees who have received study assistance over the last three years. While the number of employees has reduced between and the previous financial year, the average reimbursement has increased. This occurred as some employees are completing double degrees, others are completing Masters programs and another was not eligible to receive the discounted fees. Summary of Studies Assistance Reimbursements Employees received study assistance * Total reimbursed $ $ $ Average reimbursement $1711 $1639 $2134 *Revised figure from annual report; more staff were in receipt of study assistance than previously reported. Recruiting and retaining skilled employees Workforce Planning and Development Workforce planning informs people-related decisions such as recruitment, employment programs, people development and policies. It is undertaken at least annually as part of annual business planning. The department has made inroads into staffing critical and hard-to-fill positions in the past 12 months, such as: retaining three graduate planners from 2011 recruiting a further two planners retaining one marine surveyor from 2011 supporting two marine surveyor scholarships recruiting one graduate land surveyor and two graduate building surveyors recruiting one graduate Civil Engineer recruiting one graduate HR Professional. The department continues to develop and implement strategies to attract and retain staff in our hard-to-fill positions. Strategies include using the grow your own approach through training and development, forging closer relationships with schools and universities, and using contemporary recruitment methods and more sophisticated knowledge management interventions. Promoting Careers in the Department The department continues its efforts to increase awareness among Territorians of the diverse career opportunities available in the department and in the NTPS. The department was involved in a number of events to promote career opportunities throughout the year, with representatives attending the: Department of Education and Training (DET) Careers Expos: attended by more than 2000 secondary school students, parents, teachers and other Territorians who are exploring their future training, education and career path choices. The Big Meet, Brisbane: a one-day careers fair promoted to all students from universities in Brisbane and surrounding areas and organised by the Australian Association of Graduate Employers (AAGE). Queensland universities offer courses in a range of disciplines that are generally ongoing, hard-to-fill positions for the department, such as urban and regional planning, economics, public policy, land surveying and building surveying. Charles Darwin University Careers Fair: has a broad audience and provides an opportunity for the department to connect with local students seeking opportunities to use their new qualifications. School Visits, Adopt a School and Work Experience Through these employment forums the department provided information to students on the opportunities available in the department, including scholarships and traineeships. Valuable one-on-one time with students allowed staff to discuss the types of jobs on offer and the skills required. 04 PART 4: Our People DLP ANNUAL REPORT 45

48 Training and development School Visits In July 2011 the department visited Kormilda College, Darwin High School and Taminmin Senior College, all in the Darwin area. Year 11 and 12 students asked questions about the department s scholarship program and Spatial Science traineeship. Careers advisors also attended and gained an insight of the opportunities available to promote to their students. Adopt a School In November 2011 the Department of Business and Employment (DBE) and Palmerston Senior College jointly hosted an employment forum themed speed dating for jobs. Department representatives spoke to approximately 70 Year 11 and 12 students, particularly about the Spatial Science Traineeship and Urban and Regional Planning Scholarship, which are hard-to-fill areas. Work Experience Students are placed throughout the department each year, gaining an insight into the many facets of working for government and guidance on moving from school to work. Through the program, the department can engage with future employees, network with schools, contribute to the education of Northern Territory youth and establish what motivates young people to join government. Seven senior school students participated in work experience in in the Road Safety, Road Network, Public Transport, Darwin Bus Service, Building Advisory Services and Development Assessment Services areas. Employment Programs The department s employment programs target entrylevel recruits, including graduates, scholarship holders, apprentices and trainees. Significant resources are devoted to supporting these ongoing programs and developing new programs and initiatives identified through Workforce Planning and Workforce Development processes, particularly in professions in an identified skill shortage area. Scholarship numbers remained steady at four participants in two in naval architecture and two in urban and regional planning while apprenticeship numbers dropped slightly to one participant; a final-year apprentice who is based at Darwin Bus Service completing a Certificate III in Automotive (Heavy Vehicle). Employment Program participants between 2009 and Program Participants Participants Participants Graduate WILS* ICS** Traineeships Apprenticeships Engineering Co-Op DLP Scholarship Total *WILS Work Integrated Learning Scholarship **ICS Indigenous Cadet Support Graduate Development Program The program aims to address succession planning issues by creating a supply of trained employees for the department. Graduates undertake a 12-month rotation to various business units where they receive on-the-job experience, coaching and a working knowledge of the NTPS. The department s graduates link in with NT Treasury graduates for additional training, such as presentation skills and Finance Officer In Training (FOIT) sessions. The relationship between the agencies provides further support and networking opportunities for graduates. There was an increase in the number of participants in the employment programs in compared with the previous year, mainly due to the high calibre of graduate applicants for the 2012 program. An additional Spatial Science trainee was also recruited in to ensure a continuum through the program DLP ANNUAL REPORT PART 4: Our People 04

49 Training and development 2012 Graduates, left to right Clifford Yong, Kate Rogers, Wayne Lu, Tony Brennan, Jamie Castles, Gabrielle Wise, Paul Hansen, Lisa Zirkel, Gordon Yoon, Lauren Wolfenden Absent: Victor Oecker and Maria Florez In , graduates were recruited in a range of disciplines, such as accounting, building surveying, civil engineering, economics, environmental science, human resource management, land surveying, and urban and regional planning. Graduates were sourced both locally and interstate, from South Australia, Western Australia, Queensland and New South Wales. This diverse group strengthens our organisational capability by bringing together various cultures, life experiences and qualifications. Apprenticeships Apprenticeships allow participants to work full time while studying for a vocational qualification. In there was one final-year apprentice based at Darwin Bus Service (DBS) completing a Certificate III in Automotive (Heavy Vehicle). The apprenticeship combines competency-based training through Charles Darwin University with on-the-job experience. The apprentice provides valuable support to the DBS workshop and has the opportunity to progress to a qualified mechanic position on successful completion. Vacation Employment The department continued to offer employment to students studying relevant degrees during university breaks in Vacation employment gives students an insight into the workings of the NTPS and helps develop skills and knowledge relevant to their study. Ten vacation employment students worked at the department during in the areas of: Legal Services Road Network Marketing and Communications Procurement Sustainability Darwin Bus Service. Students were involved in a range of projects, including gathering data and research on government buildings energy usage, data management and database design, creating publications, evaluating bicycle paths and reviewing Standard Operating Procedures for bus drivers. Encouraging diversity and employees who work together Equal Employment Opportunity The department benefits from a gender-balanced and diverse workforce that reflects our customer base. At 30 June 2012: 51 per cent of our workforce was female; 49 per cent was male 20 employees identified as having a non-english speaking background 12 employees identified as Aboriginal or Torres Strait Islander 10 employees identified as having a disability. 04 PART 4: Our People DLP ANNUAL REPORT 47

50 Training and development Industrial Relations During the department continued to work with the Transport Workers Union (TWU) through the Joint Consultative Committee. The committee is a consultative reference body for the Chief Executive to consider significant organisational and attitudinal reforms as they impact on Darwin Bus and public transport services. The Community and Public Sector Union (CPSU) also conducted workplace visits to speak with interested employees in Darwin, Alice Springs and Katherine. Indigenous Employment and Career Development The department progressively implements its Indigenous Employment and Career Development Strategy (IECDS), which mirrors the NTPS strategy under the key priorities of workplace environment, attraction, retention and communication. Comparison of Indigenous employees Female Male Female Male Female Male Indigenous Employees as at 30 June Total Indigenous employees Total employees % Indigenous 1.7% 1.39% 2% Indigenous employment is a standing agenda item of the Organisational Development Committee. The department actively participates in the Indigenous Employment Program, having engaged two permanent employees in with a third participant completing the program at year end. The classification levels and gender balance of Indigenous employees is shown in Table 5. The department s proportion of Indigenous employees is below the NTPS target of 10 per cent DLP ANNUAL REPORT PART 4: Our People 04

51 Training and development Creating a safe and supportive work environment Indigenous employees as at 30 June 2012 Classification Female Male Total AO AO AO AO AO SAO Total The department continues to focus on improving this result through initiatives such as: developing Indigenous apprentices, trainees and cadets for professional positions developing pre-employment programs for nominated positions facilitating the Tertiary Enabling Program (TEP), coaching, counselling and mentoring programs identifying barriers to career development and progression participating in the OCPE s IECD coordinators network developing cultural competency in the department rather than just cultural awareness promoting Indigenous employment. In , the department will make a submission to the Commissioner for Public Employment for approval under the Special Measures section of the Public Sector Employment Management Act (PSEMA) for special employment programs for Aboriginal and Torres Strait Islanders. Work Health and Safety On 1 January 2012, a range of legislation relating to the common amount of national work, health and safety scheme came into effect. The legislation requires a management system that includes the requirement for employees and their representatives to participate in decision making processes, provide appropriate training for health and safety representatives, committee members, officers and workers, and to establish procedures to manage work health and safety. The department engaged a full-time Work Health and Safety Manager during to ensure the department had the capacity to respond to these requirements. A gap analysis was conducted to identify areas of focus to enable a strategic approach to achieving best practice work health and safety for staff. The reporting and monitoring processes have been strengthened with monthly reports provided to the Executive Leadership Team on the department s performance and reported Lost Time Injuries. A number of assessments were conducted in the reporting period, including workstation reviews, workplace assessments and an investigation into a workplace incident. Integral to maintaining staff safety is ensuring they are aware of hazards, issues and their responsibilities. The department is using a number of methods to ensure staff have access to information regarding the new legislation: Health and Safety Representatives roles and responsibilities have been redefined and positions filled, with training provided for incoming members presentation of Minter Ellison Lawyers to all staff and the Executive Leadership Team on new workplace responsibilities. Willing and Able Strategy At 30 June 2012, 10 staff identified as having a disability. The department is committed to a working environment where people with a disability are recruited, promoted and retained on the basis of their ability. It does this through its implementation of the NTPS Willing and Able strategy, as well as identifying and removing barriers to workplace participation. 04 PART 4: Our People DLP ANNUAL REPORT 49

52 The department is keenly aware of the benefits that come from having bright and fresh work environments. Creating a safe and supportive work environment Sharepoint Collaboration site being developed to enable staff to review and provide comment on draft documentation as part of the WHS Management System presentations by key stakeholders and experts to Senior Leaders Forum delivery of hazard identification workshop fortnightly WHS stories published on the intranet. As part of the WHS Management system development, procedures for hazard management, asbestos management and emergency preparedness are also being finalised. Improving our work environment Arnhemica Building, Parap During the department addressed work environment issues raised in the 2009 NTPS Staff Survey by finalising the fit-outs of work cafes at Energy House and Arnhemica locations. The department is keenly aware of the benefits that come from having bright and fresh work environments. To this end, divisions have worked on place making, whereby internal office spaces have been redesigned with a focus on clean, welcoming and stylised work spaces. With the relocation of staff from the Land Division and Strategic Planning Division from the CBD to Arnhemica in Parap, the opportunity existed to redesign and modernise work spaces. Energy House In Energy House, the Transport Division redesigned the office to provide a central area for staff to gather and for use as a shared facility DLP ANNUAL REPORT PART 4: Our People 04

53 Creating a safe and supportive work environment Work and Life Balance The department continues to recognise and acknowledge the importance of providing employees with the flexibility they need to successfully balance their professional objectives and ambitions with their personal commitments and interests. It also recognises that enabling employees to balance personal and professional commitments impacts positively on an employee s health and wellbeing and their level of engagement and productivity. The department continues to support flexible work practices to meet the needs of staff by providing options such as: Staff utilising a Work-Life Balance Option Female Male Total % of Workforce Recreation leave at half pay (i) % Flexible work arrangements (part-time work) (ii) % Leave without pay % Extended leave scheme (iii) % i purchasing annual leave and leave at half pay arrangements are available. ii part-time work arrangements iii allowing staff to reduce their pay to 80% for 4 years to cover the 5th year taken as leave with pay. Other initiatives available include: Leave without pay, which includes taking extended leave for family or personal reasons or for career breaks. Transition to Retirement (TTR), which provides a range of flexible options for employees nearing retirement so they may gradually transition from full-time work to retirement. Working from home, which is subject to the needs of work units and may be approved on a case-bycase basis. 04 PART 4: Our People DLP ANNUAL REPORT 51

54 Staff awards In the department acknowledged its employees work, experience and expertise with a number of team-based and individual awards. Darwin Bus Service Employee Recognition Awards Darwin Bus Service (DBS) Employee Recognition Awards recognise the actions, behaviour and achievements of DBS staff or teams and their contribution to the delivery of a safe, efficient and reliable public transport service. Award winners in were: Geoffrey Ryan (Fleet coordinator), Bob Small (Supervisor), Carolyn Brumby (Bus Driver) and Gary Weh (Supervisor) October to December 2011 Geoffrey Ryan, Carolyn Brumby, Bob Small, Gary Weh pictured from left to right. Carolyn Brumby July 2011 previous quarter Carolyn Brumby awarded in July 2011 for previous quarter. Catherine Kassman January to March 2012 Catherine Kassman with Alex Rae, Director Passenger Transport. Rui Messias July to September 2011 Rui Messias pictured with Jas Anand, the previous manager of the DBS DLP ANNUAL REPORT PART 4: Our People 04

55 Staff awards Motor Vehicle Registry 2011 third quarter winner Outstanding Staff Contribution Award (OSCA) This award is presented quarterly and recognises employees for a job well done second quarter winner Rebecca da Ros (Darwin) with Alex Rae, Director Passenger Transport, was awarded for her willingness to go above and beyond what is expected of her role. In particular, her outstanding assistance with the release of the new General Issue number plates and the Commemorative Plates services was commended fourth quarter winner Maribel Lewis, pictured, with Glenda Thornton, Director Motor Vehicle Registration, for her excellent customer service and strong team work ethics. Yvette Sinclair, pictured, for her very helpful and warm customer service, especially at difficult times. Karen Taylor (Alice Springs), pictured with Ray Smith, Regional Manager, Lands and Planning Alice Springs, for her endless dedication to her staff. She is patient, understanding and very approachable, and always offers great encouragement. 04 PART 4: Our People DLP ANNUAL REPORT 53

56 Staff awards 2011 Annual Service Excellence Award Winner Regional and Southern Areas In 2011, 10 regional staff received nominations for the Annual MVR Regional Outstanding Customer Service Award. Karina Smith was announced the winner for her outstanding commitment to the team. Chief Minister s Awards for Excellence in the Public Sector Medal Winner David Jeffery is the Manager of Client Services in Survey Services in Land Information in Darwin. David has contributed his skills and dedication to a number of development projects, including the Conoco Philips refinery, Darwin Prison, the Kenbi land claim and the Ichthys project. David is renowned for delivering excellent customer service and always striving to achieve an outcome for the client, no matter how big or small the job is. He is one of the most highly regarded surveyors in the Northern Territory Government and is greatly respected by the private sector and industry. I was surprised to pick up the award, and my family is very impressed, he said. It s something to tell the grandkids. Referee Craig Bradley said, If you want to get something done and you need to know how you do it, Dave is the man to call. Staff and fellow nominees with winner, Karina Smith. Left to right: Paul Stansall, Karen Taylor, Daniel Cole, Amanda Saunders, Lynda Ankers, Abby Teddy, Karina Smith, Melissa Ellercamp, Brendon Taylor-McInnes, Ann Jacobs Annual Service Excellence Award Winner Northern Region Stephanie Lin was the winner of the northern region s award for consistently providing excellent customer service at the front counter of MVR. David Jeffery DLP ANNUAL REPORT PART 4: Our People 04

57 Staff awards Nikki Daire was invited to present her final year co-authored thesis paper at the threeday Fast Sea Transportation research conference in Hawaii in September graduate presented at international conference 2011 graduate naval architect, Nikki Daire, was invited to present her final year co-authored thesis paper at the three-day Fast Sea Transportation research conference in Hawaii in September The event promotes worldwide cooperation among scientists and engineers and, specifically, naval architects in the marine industry. Papers submitted to be read at the conference are relatively few and only those of a high degree of importance in the marine research field are selected. Nikki said her paper was well received and prompted several interesting questions and comparisons with research in a similar field. Picture: Gregor MacFarlane, Manager, National Centre for Maritime Engineering and Hydrodynamics and Nikki Daire. 04 PART 4: Our People DLP ANNUAL REPORT 55

58 Staff awards 2011 Engineering Excellence Awards Road Network Division engineers were honoured at the 2011 Engineering Excellence Awards. The accolades at the Engineers Australia awards night in July recognised four departmental projects: McArthur River Bridge (Highly Commended, Projects category): Sumesh Dhir, Louise McCormick, Geoff Horni and Ernie Wanka Bridging the Gap (Highly Commended, Reports category): Chandan Kalase and Ernie Wanka Tiger Brennan Drive (People s Choice Award): Louise McCormick, Geoff Horni and Ernie Wanka` Palmerston Boat Ramp (President s Award): Louise McCormick, Geoff Horni, Chandan Kalase and Ernie Wanka. The division s Acting Manager of Network Planning, Louise McCormick, said the selection followed a long nomination process that involved written submissions, site visits by the judging panel, a formal public presentation and media exposure. We did very well from the evening, picking up four awards from the seven nominated projects. Other government agencies and external consultants, including the Department of Construction and Infrastructure, Power and Water, UNO Management Services, and the Department of Local Government and Housing, competed for tributes at the industry gala. The awards acknowledge the high quality of these projects and celebrate the contribution engineers make to society. I congratulate everyone involved for their commitment to excellence, and the benefits their work brings to Territorians, she said. Back L - R: Chandon Kalase, Geoff Horni, Sumesh Dhir Front: Louise McCormick DLP ANNUAL REPORT PART 4: Our People 04

59 Reporting against Employment Instructions Reporting Against Employment Instructions Under the Public Sector Employment and Management Act (the Act), Employment Instructions provide direction to agencies on human resource management matters. Section 18 of the Act requires agencies to report on each employment instruction in agency annual reports. The Department of Lands and Planning s performance against each instruction is reported below. TABLE 7: Employment Instructions, Annual Reporting Requirements and Agency Action Employment Instruction and Annual Reporting requirements Number 1 Filling Vacancies Agency must develop a procedure for the filling of vacancies consistent with the Act, its subordinate legislation and any relevant award or enterprise agreement. Report annually on the number of employees in each designation and variations. Number 2 Probation Agency must develop a probationary procedure consistent with the Act, its subordinate legislation and any relevant award or enterprise agreement. Number 3 Natural Justice The principles of natural justice are to be observed in all dealings with employees. Number 4 Employee Performance Management and Development Systems Agency to develop an employee performance management consistent with the Act, its subordinate legislation and any relevant award or enterprise agreement. Number 5 Medical Examinations Agency may engage a health practitioner in accordance with the Act and Employment Instruction Number 3. Number 6 Employee Performance and Inability Agency to provide OCPE with information relating to performance and inability. The agency has procedures in place for undertaking performance management and inability in consistent with the Act and its subordinate legislation and any relevant award or enterprise agreement. Agency Action in Recruitment action: advertised 151 vacancies (permanent and temporary), 166 staff commenced and 150 separations (excluding casual and temporary vacation employees). One promotion appeal was lodged and was disallowed. The department is updating its Probation Policy. New ongoing employees are advised of the probation process by the Department of Business and Employment (DBE) with their offer of employment. The process is explained during Induction and in the department s information pack for new employees. The principles of natural justice are followed in all dealings with employees and reflected in internal policies and procedures. The department s performance management system, Plan Do Review (PDR), integrates the department s planning frameworks and objectives with employees work priorities. The PDR system is a 12-month cycle of planning, doing and reviewing the work of employees. PDR was launched in January 2011, with electronic forms launched in January per cent of department staff have a PDR in place. Two employees were directed to attend examinations by approved health practitioners. The department s performance management system, Plan Do Review (PDR), provides a framework for managers and staff to document where performance improvement is required. Human Resource staff support managers dealing with under-performance issues and assist managers and staff in performance improvement efforts. No inability action was taken during PART 4: Our People DLP ANNUAL REPORT 57

60 Reporting against Employment Instructions Employment Instruction and Annual Reporting requirements Number 7 Discipline Agency may develop discipline procedures consistent with the Act, its subordinate legislation and any relevant award or enterprise agreement. Number 8 Internal Agency Complaints and Section 59 Grievance Reviews Agency must develop an internal employee grievance-handling policy and procedure consistent with the Act, its subordinate legislation and any relevant award or enterprise agreement. Number 9 Employment Records Agency has responsibility for keeping employees employment records. The agency must comply with the requirements of the Information Act (NT) regarding correction, collecting and handling of personal information contained on an employee s employment record. Number 10 Equality of Employment Opportunity Programs Agency must develop an Equality of Employment Opportunity Program consistent with the Act, its subordinate legislation, the Anti-Discrimination Act and any relevant award or enterprise agreement. Number 11 Occupational Health and Safety Standards Programs Agency must develop programs and procedures to ensure employees are consulted in the development and implementation of OHS. Agency must provide OHS information in the annual report in relation to the agency s occupational health and safety programs. Number 12 Code of Conduct The Code of Conduct stipulates the basic level of conduct expected of Public Sector Officers as defined in the Act. The agency may issue an agency-specific Code of Conduct that is consistent with the Act. Agency Action in The department s discipline policy and procedure is available to all staff on the intranet. No disciplinary action was taken during The department s grievance policy and procedure is available to all staff on the intranet. Human Resources provides advice and support to managers and staff in dealing with grievances. Four grievances were lodged in The Department of Business and Employment (DBE) stores all personnel files. The department follows DBE policy regarding access to these files. Any requests to access employee records are made through the Director, Human Resources. The department s Equal Employment Opportunity Management Policy was developed and implemented in September Details of the department s Indigenous Employment and Career Development programs and initiatives are reported in this annual report. With the introduction of the Work Health and Safety (National Uniform Legislation) Act, 2011, a Work Health and Safety Manager was employed to uphold the department s commitment to provide a safe and healthy work environment for all employees, including contractors and implement changes resulting from the new Act. Details of Work Health and Safety activities are reported in the Governance and Our People sections of this annual report. New staff are provided with the NTPS Code of Conduct booklet as part of their commencement package. Staff are reminded of their obligations through a range of forums provided during their employment. The Transit Safety Unit has its own Code of Conduct, which complements the NTPS Code of Conduct. In-house training sessions, including staff inductions, workplace etiquette and the selection process, promote compliance with the NTPS Code of Conduct and Principles. Training and the intranet are used to remind staff about accepting gifts and benefits, use of IT and other resources, confidentiality, conflicts of interest, outside employment, fraud and ethics, harassment and bullying, health and safety, making public comment, outside employment, privacy and record keeping DLP ANNUAL REPORT PART 4: Our People 04

61 Department overview and purpose Employment Instruction and Annual Reporting requirements Number 13 Appropriate Workplace Behaviour The agency must develop an agency policy and procedure to foster appropriate workplace behaviour and a culture of respect, and to deal effectively with inappropriate workplace behaviour and bullying. Agency Action in The department is committed to providing all employees with a safe and healthy workplace, free from inappropriate behaviours such as bullying, harassment and discrimination. An interactive workshop is provided for staff to discuss their rights and responsibilities and the requirement for all staff to adhere to and act in accordance with the NTPS Code of Conduct. The focus is on developing employees understanding of the need to take responsibility for their own behaviours and actions in the workplace. The workshop provides useful tools and resources for staff to use if faced with inappropriate behaviours. No formal complaints about inappropriate workplace behaviour were received during the reporting period. 04 PART 4: Our People DLP ANNUAL REPORT 59

62 DLP ANNUAL REPORT

63 05Part 5 Department Achievements and Priorities

64 Lands Land Information Achievements in Completed the aerial photography, satellite imagery, geodetic infrastructure, land valuation, topographic mapping and cadastral coordination capture and maintenance programs. Under a Memorandum of Understanding (MOU) with the Commonwealth Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA), completed the final year of a five-year funding program to deliver aerial photography and mapping over Indigenous communities and associated areas. Revaluation of Darwin, Palmerston, the Darwin Waterfront and Darwin Rates Area undertaken. Progressed the implementation of a new model for delivery of Valuation Services to the Territory Government. Extended the integration of NT Visualiser functionality in the Web Emergency Operations Centre (WebEOC), incorporating address validation to support emergency response. Completed the second year of a three-year program to survey existing infrastructure and lots in the 20 Growth Communities. On behalf of government, managed survey projects for the Ichthys Howard Springs workers village and Blaydin Point construction sites, finalised survey plans for the Kenbi land claim and completed control mark surveys for the suburbs of Johnston and Bellamack. Administratively supported the Place Names Committee to name 188 roads in 12 Growth Communities and 241 roads in 31 other remote Northern Territory communities. A joint project with Commonwealth agencies to establish and maintain Global Navigation Satellite System (GNSS) Base Station networks in the Territory continued, resulting in 15 base stations being operational. Seven major mapping projects, including: Darwin to Alice Springs railway, Barkly Highway, Darwin, Kakadu National Park and Greater Darwin Area. Priorities in Complete the statutory revaluation program. Continue the implementation of a new model for the delivery of valuation services to the Territory Government. Complete the final year of the program to survey land and infrastructure boundaries in Growth Communities. Commence a program to survey land and infrastructure boundaries for other Northern Territory remote Indigenous communities. Continue the program of road naming and addressing in the Growth Communities and other remote Indigenous communities. Further enhance the GNSS Base Station network in the Territory. Enhance ILIS and its capabilities as the platform for land administration and a record for all land dealings in the Territory. Develop and implement the aerial photography and mapping program. Finalise the photography and mapping of the NTER communities funded by the Commonwealth Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) DLP ANNUAL REPORT PART 5: Achievements and Priorities 05

65 Development Assessment Services Achievements in Implemented improvements to current processes to improve service delivery and reduce average times for development assessment. Achieved highest score in the Australian Property Council Report for development assessment nationally. Enhanced the capacity of Development Applications Online through the development of Electronic Development Applications 2 (eda2), enabling the electronic lodgement of expanded application types. Priorities in Implement further improvements in administrative process to enhance service and reduce development assessment timeframes. Continue to enhance Development Applications Online to allow electronic lodgements of all application types. Continue participation in the national reform agenda for development assessment in order to reduce processing times for development applications. Building Advisory Services Achievements in Continued to progress the implementation of the Residential Building Cover Package and supporting requirements. Progressed the Residential Building Cover Package, which will provide increased consumer protection such as insurance cover in the event a builder dies, disappears, becomes bankrupt or deregistered and supporting documentation for residential buildings in the Territory. Continued education and awareness in relation to the requirements for building homes in the Territory and the moratorium for existing buildings within declared building control areas to achieve compliance by 30 June Provided input and participated at a national level on building regulation and policy initiatives (e.g. energy efficiency, disability access and national occupational licensing). Priorities in Continue to progress the implementation of the Residential Building Cover Package in the Territory and supporting requirements. Progressively implement building control to Growth Communities following consultation with communities and stakeholders. Develop options for proposed changes to building regulation in the Territory. Continue education and awareness in relation to the moratorium, and building homes in the Territory. Provide input and participate at a national level on building regulation and policy initiatives. 05 PART 5: Achievements and Priorities DLP ANNUAL REPORT 63

66 Finalised the release of land in Johnston Stage 2 for residential development Land Administration Achievements in Finalised the issue of titles for residential lots in Johnston (Stage 1). Issued titles for residential development in Bellamack. Finalised the release of land in Johnston Stage 2 for residential development. Finalised the issue of a Crown lease for the Ichthys project workers village and the onshore facility at Blaydin Point. Finalised land tenure for the Palmerston tennis and netball facilities. Progressed the capital acquisition program to facilitate the delivery of government projects and initiatives. Implemented and maintained a fire and weed program, in consultation with NRETAS, for the management of vacant Crown land as part of government s commitment to the annual weed management program. Provided information and assistance to the Aboriginal Land Commissioner to assist with inquiries into land claims pursuant to the Aboriginal Land Rights (Northern Territory) Act and continued negotiations to settle Aboriginal land claims and community living areas. Progressed the assessment of the expressions of interest for the development of Lot (Palmerston Superblock) in the Palmerston town centre for mixed-use development. Continued to release land for development in accordance with the government s program for urban and regional areas. Implemented and managed the Greening our Streets community street planting program initiative. Finalised land tenure arrangements to facilitate the development of the Defence of Darwin exhibition at East Point. Identified land, in consultation with the Department of Health, for the establishment of a northern suburbs super clinic. Priorities in Issue and monitor Crown leases for development. Finalise land tenure arrangements for government community and sporting facilities in Palmerston. Progress the sale of Crown land sites in accordance with the Direct Sales and Community Land Grant application policy. Finalise the issuing of a Crown lease for the Short Stay Accommodation Village, Section 4445 Hundred of Bagot. Progress the Capital Acquisition Program to facilitate the delivery of government projects and initiatives. Subject to an Indigenous Consent Agreement over the town of Mataranka in relation to native title, facilitate the servicing, subdivision and release of 14 residential lots. Progress the resolution of Community Living Areas and Aboriginal land claims. Continue to provide information and assistance to the Aboriginal Land Commissioner to assist with inquiries into claims pursuant to the Aboriginal Land Rights (Northern Territory) Act. Review the status of outstanding Community Living Area applications. Assist in progressing the whole-of-town native title settlement for Batchelor DLP ANNUAL REPORT PART 5: Achievements and Priorities 05

67 Provided Demographic and growth advice to support enquiry by design processes for KilgaRiff Territory Growth Planning Achievements in Framed Government s options for managing growth pressures and opportunities associated with Ichthys and other major infrastructure projects, especially in relation to residential housing. Managed the development of a financial model and the commercial analysis of the first neighbourhoods in Weddell. Undertook a study of the housing preferences of home buyers in the Northern Territory. Undertook policy analysis, housing market intelligence and coordination to support the government s strategies. Undertook growth modelling research on the Litchfield Local Government Area, focussing on future demographic, economic and infrastructure projections and needs. Prepared economic and demographic analysis in support the department s strategic land use planning and preparation of the Greater Darwin Plan. Provided demographic and growth advice to support Enquiry by Design processes for Kilgariff, and provided follow up demographic and growth analysis for Weddell and Berrimah planning. Priorities in Help frame government s options for managing growth pressures and opportunities, particularly in relation to provision of sufficient and affordable residential housing. Prepare analysis and options for development of financial and commercial implementation models for: the remaining Palmerston East greenfields residential developments, including Zuccoli and Mitchell future Litchfield infrastructure and housing requirements further development of Weddell and Kilgariff. Further develop growth models for Darwin, Palmerston, Litchfield and Alice Springs, which also provide projections of demand for key government services. 05 PART 5: Achievements and Priorities DLP ANNUAL REPORT 65

68 senior planner, jan kinsella, with kids from ngukurr during the preparation of the area plan and zoning map Strategic Lands Planning Achievements in Conducted public exhibition and consultation of the Greater Darwin Plan 2012 under the Planning Act. Charles Darwin University Palmerston campus rezoned to facilitate a residential estate. Release of updated storm tide maps for Darwin, Palmerston, Weddell, Cox Peninsula and Dundee. Area plan and zoning maps included in the NT Planning Scheme for Hermannsburg (Ntaria), Ngukurr, Wurrumiyanga (Nguiu), Lajamanu, Ramingining and Milingimbi. Delivered place-making workshops with City of Darwin staff to develop projects for the consideration of the Darwin Capital City Committee. Delivered a place-making workshop with Alice Springs Town Council to develop initiatives for the beautification of the town centre. Processed 60 applications for rezoning and amendments to the NT Planning Scheme. Half of these have been determined. Undertook a number of planning scheme reforms, such as for activated frontages, building heights and bed and breakfast accommodation. Priorities in Development of draft legislation for the establishment of the NT Planning Commission for approval by the Legislative Assembly. Development of land use planning concepts and policies. Provide support to the Northern Territory Planning Commission. Inclusion in the NT Planning Scheme of Area Plans and zoning maps for the remaining Territory Growth Communities: Ali Curung, Borroloola, Daguragu/Kalkarindji, Elliott, Gapuwiyak, Gunbalanya, Maningrida, Numbulwar, Papunya, Wadeye, Yuendumu and Yirrkala DLP ANNUAL REPORT PART 5: Achievements and Priorities 05

69 Commenced development of the Darwin Regional Transport Plan, a long-term strategy (to the year 2030) for both transport infrastructure and services Building the Future Northern Territory Government 10 Year Infrastructure Strategy DEPARTMENT OF LANDS AND PLANNING Infrastructure Planning Achievements in Commenced development of the Darwin Regional Transport Plan, a long-term strategy (to the year 2030) for both transport infrastructure and services that will be required to meet the population and land use projections embodied in the Greater Darwin Plan. Released the 10-year Northern Territory Infrastructure Strategy. Delivered two national design competitions for the new city of Weddell: the Weddell New-Town Urban Design Competition and the Weddell Tropical Housing Design Competition. Commenced planning and detailed design of a regional trunk water main to facilitate further development of the Middle Arm Peninsula and surrounding areas, including Weddell. Completed the design and construction of headworks infrastructure required to support the first development stage of Zuccoli and further land within Johnston. Continued the contaminated land audit at Berrimah Farm and Berrimah Prison sites. Continued the design and construction of headworks infrastructure in Alice Springs, including construction of the Norris Bell intersection, to facilitate the release of land at Kilgariff for residential development. Investigated the potential for further land development within Darwin and the Greater Darwin area, including Howard Springs Pine Forest, Karama North and Humpty Doo. Investigated the potential for further development in Katherine and Tennant Creek. Continued to develop major land release projects, including Kilgariff, Zuccoli and Weddell. Continued a program of baseline environmental and other priority studies associated with the development of the future city of Weddell. Completed the environmental assessment process associated with the development of the Marine Supply Base at East Arm. Priorities in Complete the Darwin Regional Transport Plan for consideration by government prior to the public consultation phase. Construct a Rapid Creek fishing platform through the Green Heart of Darwin program. Work with the winners of the Weddell Tropical Housing Design competition to develop affordable small lot house designs that can be made available to the public. Complete the detailed design and commence construction of the Middle Arm water main required to service future development of Middle Arm Peninsula and surrounding areas, including the future city of Weddell. Complete headworks construction for the first stages of land development at Kilgariff. Continue the construction program for infrastructure headworks to support the progressive development of Zuccoli Stage 1 and further land within Zuccoli and Mitchell, including a parcel of land at Mitchell West. Weddell: continue land use and project planning associated with the first stage and overall development commence the master planning process, including a precinct scale plan for the first area of development commence the formal environmental assessment process. 05 PART 5: Achievements and Priorities DLP ANNUAL REPORT 67

70 Infrastructure Sustainability Achievements in Ongoing coordination of the NT Government s Energy Efficiency Program (GEEP). Projects included: energy efficiency lighting upgrades in 44 schools across the Northern Territory installation of a co-generation plant at Alice Springs Hospital lighting upgrades in the Museum and Art Gallery of the Northern Territory, the Araluen Arts Centre, the Peter McAulay Centre and Nichols Place Magistrates Courts. Assisted agencies with their annual building energy reporting, and collated the and Northern Territory Government Building Energy and Greenhouse Reports. Represented the Territory on national groups dealing with policy and technical developments relating to energy efficiency and sustainability in the built environment. Priorities in Provide professional policy and technical advice to allow sustainability principles to be incorporated in land and infrastructure developments. Provide advice on technical issues relating to energy efficiency and sustainability in the built environment. Complete all of the Government Energy Efficiency Program (GEEP) projects. Transport Regulation and Compliance Achievements in Achieved a 50 per cent reduction in the time taken to recognise overseas survey and certification of vessels and crew involved in the Ichthys project by using risk management processes. Continued providing policy input and implementation to agreed national reforms, including the establishment of a single National Heavy Vehicle Regulator, single National Rail Safety Regulator and the proposed establishment of a single National Regulator for Maritime Safety in Australia. Assisted with successful facilitation of major events, including the 2011 World Solar Challenge and the 2012 Finke Desert Race. Priorities in Continue to adopt and implement new national standards and guidelines for National Heavy Vehicle Regulator, National Rail Safety Regulator and the National Regulator for Maritime Safety. Progress change to light vehicle inspection regime to align with other jurisdictions DLP ANNUAL REPORT PART 5: Achievements and Priorities 05

71 Public Transport Achievements in Continued review and expansion of the public and school bus network, including new services such as the Museum and Rosebery School service and continued the bus shelter installation program to meet disability standards in Darwin and Alice Springs. Opened and integrated the Coolalinga and Humpty Doo park and ride facilities into the urban system and improved bus access and parking at the Palmerston exchange. Expanded Mandorah Ferry services to include an additional service and free travel for Cox Peninsula school students and seniors. Priorities in Upgrade the public information line to an interactive voice recognition service with timetable information available 24/7. Launch a journey planner for Alice Springs urban network and continue to install new bus stop totems across the Darwin and Alice Springs urban networks. Road Network Achievements in Delivered a total capital works program of $232.3 million, including projects such as the Berrimah Road Rail overpass, Cullen River Bridge and Vanderlin Drive duplication. Delivered a total Disaster Maintenance Program of $25.6 million. Completed the upgrading and sealing of Jenkins Road and other road and intersection upgrades in partnership with INPEX. Priorities in Howard Springs Road intersection upgrade and duplication. Completion and opening of the Daly River Bridge. Duplication of Tiger Brennan Drive to the Darwin CBD. Upgrade remote airstrips, including Lajamanu, Utopia, Canteen Creek and Yarralin. 05 PART 5: Achievements and Priorities DLP ANNUAL REPORT 69

72 commenced DriveSafe Remote Driver Education, Training and Licensing Trial program Road Transport Achievements in Implemented the pre-election commitment program, DriveSafe NT, a new driver education, training and licensing program for Territory drivers aged in Darwin, Alice Springs and Katherine. At 30 June, 330 people were enrolled in the program and 233 learner licences had been issued. Issued Evidence of Age cards from MVR offices as part of the alcohol reform initiatives coordinated by the Department of Justice, and contributed to New Era in Corrections initiatives, including a driver education, training and licensing program. Priorities in Progress opportunities to improve Motor Vehicle Registry services using technological solutions, including the MOVERS database upgrade and MVR On Line for local motor vehicle dealers. Continue to monitor and review all elements of the DriveSafe NT program and expand into the Barkly region. Continue to review the METAL Program in order to better meet motorcycle training and licensing needs of Territorians. Transport Policy and Planning Achievements in Continued to contribute to the COAG reform agenda for heavy vehicles, rail and marine. Continued to monitor the Integrated Regional Transport Strategy bus trial program and commenced DriveSafe NT Remote driver education, training and licensing trial program. Continued to provide road safety education including the delivery of: annual programs such as Sober Bob, Christmas Express and Back to School 26 road safety forums to approximately 820 Territorians seven Indigenous road safety song competitions 260 school-based road safety education and awareness sessions to approximately students throughout the Territory the TIME road safety theatre production to an audience of approximately Priorities in Implement legislation to commence the National Rail and Marine Safety Regulators in the Northern Territory. Extend DriveSafe NT Remote trial program to additional communities. Implement national age-appropriate child restraint laws and deliver road safety education and awareness on safely sharing our roads with heavy vehicles DLP ANNUAL REPORT PART 5: Achievements and Priorities 05

73 Upgraded the existing two-way radio network to meet occupational health and safety requirements Darwin Bus Service Achievements in Upgraded the existing two-way radio network to meet occupational health and safety requirements. New 36-month contracts issued for the supply and delivery of buses and the provision of bus repairs and maintenance. Continued refinement of Darwin Bus Service s commercial business operations as a Government Business Division. Priorities in Continue refinement of Darwin Bus Service s commercial business operations as a Government Business Division. Finalise a Service Level Agreement with Public Transport on route services. Continue to explore opportunities to deliver new public transport services. 05 PART 5: Achievements and Priorities DLP ANNUAL REPORT 71

74 DLP ANNUAL REPORT

75 Transport Policy and Planning Achievements in Continued to contribute to the COAG reform agenda for Heavy Vehicles, Rail and Marine. Continued to monitor the Integrated Regional Transport Strategy bus trial program and commenced DriveSafe Remote Driver Education, Training and Licensing Trial program. Continued to provide road safety education including the delivery of: annual programs including sober bob, Christmas Express and back to school 26 road safety forums to approximately 820 Territorians 7 Indigenous road safety song competitions 260 school-based road safety education and awareness sessions to approximately students throughout the Territory the TIME road safety theatre production to an audience of approximately Priorities in Implement legislation to commence the National Rail and Marine Safety Regulators in the Northern Territory. Extend DriveSafe Remote to additional communities. Implement national age-appropriate child restraint laws and deliver road safety education and awareness on safely sharing our roads with heavy vehicles. 06Part 6 Darwin Bus Service Performance Achievements in Upgraded the existing two-way radio network to meet occupational health and safety requirements. New 36-month contracts issued for the supply and delivery of buses and the provision of bus repairs and maintenance. Continued refinement of Darwin Bus Service s commercial business operations as a Government Business Division. Priorities in Continue refinement of Darwin Bus Service s commercial business operations as a Government Business Division. Finalise a Service Level Agreement with Public Transport on route services. Continue to explore opportunities to deliver new public transport services DLP ANNUAL REPORT 73

76 Performance reporting by output group 1. Outcome Outcomes are the intended results provided by the department to the Territory community. Outcomes represent the objectives that government is seeking to achieve. Land and landrelated information is available, managed and used to support sustainable economic development in the Territory Strategic and long-term integrated planning that supports community needs, sustainable economic development and the future growth of the Territory Provide safe and effective transport systems and services that meet community and Territory Government needs Statutory body for which the Department of Lands and Planning has principal administrative responsibility, but compiles its own annual report and financial statements. It is included for the purpose of ensuring its employees are captured under the Northern Territory Public Sector Employment and Management Act 2. Output Group Output groups aggregate similar or related agency outputs and are used primarily for reporting purposes. Lands Planning Transport NT Build 3. Outputs Outputs are the services provided or the goods produced by an agency for users external to the agency. Land Information Land Administration Building Advisory Services Development Assessment Services Planning Public Transport Road Transport Transport Safety Road Network Transport Assets Transport Policy NT Build 4. Key Deliverables Key deliverables are indicators of the main activity and/or achievements that contribute to a particular output. Key deliverables for each output are reported in this section of the annual report. Key deliverables are reported in the NT Build annual report Performance reporting by Divisional Outputs DLP ANNUAL REPORT PART 6: Performace Reporting 06

77 Lands Lands Outcome: Land and land-related information is available, managed and used to support sustainable economic development in the Territory. Land Information Output: Provides land-related, geographical spatial data and information and a consistent framework of land information policy, standards and distribution networks to service government. Key Deliverables Actual Estimate Actual Estimate Comments Land-related data sets maintained to technical specifications Land-related data sets accessible through NTLIS 1 Customer satisfaction with land information services Statutory services delivered on time Availability of access to the NTLIS environment meets defined standard Non-statutory service requests met Non-statutory service requests met within agreed timeframe 93% 90% 94% 90% 92.5% 90% 91% 95% 100% 99.8% 100% 99.8% Decrease in service requests due to lower-than-expected complex requests and Growth Communities enquiries 96.7% 90% 100% 90% 1 NTLIS is the Northern Territory Land Information System. 06 PART 6: Performace Reporting DLP ANNUAL REPORT 75

78 Performance reporting by output group Land Administration Output: Manages the Crown estate, provides land to meet the requirements of the Territory Government and the community, and provides advice and related administrative activities on land issues and land released for private development. Key Deliverables Actual Estimate Actual Estimate Comments Native title, land claim and Indigenous land issues progressed and resolved Crown land parcels across the Territory managed for public safety and to meet statutory requirements 1 Sale and acquisition of land for government, commercial and community purposes progressed Property management contractors compliance with contractual and regulatory requirements % 95% 99% 95% 1 Crown land parcels base increase due to council drainage reserves being passed to government DLP ANNUAL REPORT PART 6: Performace Reporting 06

79 Lands Building Advisory Services Output: Manages the regulatory framework to enable structures within proclaimed building areas to achieve structural, fire, safety, health and amenity standards and provide support for statutory boards. Key Deliverables Actual Estimate Actual Estimate Comments Building practitioners registered Number of registrations peak every two years with renewals and will increase in Building practitioners audited 5% 5% 3% 5% Audits focused on all registered building certifiers located in the Northern Territory. These are the most complex category to audit and as a result only 3% was achieved Investigated complaints finalised An increased number of complaints have been finalised due to improvements in the complaints handling process Stakeholder satisfaction 86% 80% 88% 80% Timeframes met as agreed 90% 90% 90% 90% 1 Comprises building certifiers, building contractors, certifying engineers, certifying plumbers and drainers. 2 Complaints finalised includes those dismissed, referred to Building Practitioners Board or to courts. Development Assessment Output: Provides development assessment and control processes under the Planning Act. Key Deliverables Actual Estimate Actual Estimate Comments Applications processed under the Planning Act 1, Increased applications as the result of additional activity associated with the INPEX development Average processing time for development applications (in days) Client satisfaction with services 86% 95% 88% 95% 1 Excludes Planning Scheme Amendments. 2 Lower number of development applications due to cyclical nature of development activity. 06 PART 6: Performace Reporting DLP ANNUAL REPORT 77

80 Performance reporting by output group Planning Output: Strategic and long-term integrated planning that supports community needs, sustainable economic development and the future growth of the Territory. Key Deliverables Actual Estimate Actual Estimate Comments Growth models for existing and new urban growth areas throughout the Territory Indigenous communities with a Nine Area Plans are now scheduled Town Area Plan 1 complete, with the remaining 11 plans nearing completion Major land use and urban planning projects undertaken to cater for future growth Major infrastructure projects planned and managed New projects commenced under the Strategic Planning Fund Number of government and non-government organisations provided with policy advice and information relating to building sustainability issues Audits and investigations of Territory Government buildings and land developments on energy consumption and emission reduction activities There has been a focus on additional projects that are required to meet the growth challenge across the Territory Projects over and above longer-term strategic planning include specific inputs to the Blaydin Point development at Middle Arm and the Marine Supply Base at East Arm Client satisfaction 88% 90% 93% 90% 1 This measure is a cumulative total of plans completed DLP ANNUAL REPORT PART 6: Performace Reporting 06

81 Transport Transport Outcome: Provide safe and effective transport systems and services that meet community and Territory Government needs. Transport Safety Output: Provide regulatory services covering marine and rail safety. Deliver marine, road and rail safety education and awareness programs. Key Deliverables Actual Estimate Actual Estimate Comments Deliver community and schoolbased road safety education sessions Carry out rail safety audits and inspections in accordance with national and departmental plans Marine Survey and seafarer certificates issued Certificates issued in accordance with approval standards Significant increase in number of sessions delivered is a result of improved data collection methods combined with a significant increase in demand from school groups 100% 100% 100% 100% % 90% 93% 90% Public Transport Output: Manage public transport services in the greater Darwin area and Alice Springs, and dedicated school transport services for students in the Territory. Key Deliverables Actual (1) Estimate (2) Actual (2) Estimate (2) Comments Delivery of public bus services in Darwin, rural Darwin and Alice Springs in accordance with contractual requirements 1 Provision of school bus services across the Territory in accordance with contractual requirements 1 Provision of customised transport solutions for students with identified special needs M km 4.57M km 4.6M km New contract came into effect M km 2.34M km 2.36M km New contract came into effect (student numbers) 1 Previously published number of service runs annually has been replaced with number of service kilometres delivered, following finalisation of bus contracts. 2 During new contractual arrangements came into effect. The new measures in the contract are the number of service kilometres delivered. 3 Number of students provided with the service 06 PART 6: Performace Reporting DLP ANNUAL REPORT 79

82 Performance reporting by output group Road Network Management Output: Develop strategies and programs for managing the Territory s transport infrastructure. Key Deliverables Actual Estimate Actual Estimate Comments Lane kilometres of: New sealed roads Sealed roads upgraded Unsealed roads upgraded Network resealed, national network Network resealed, Territory roads New cycle path User satisfaction index This measure is prepared by Austroads and represents users perception of the performance of each attribute, measured on a performance scale of 1 (very dissatisfied) up to 5 (very satisfied) DLP ANNUAL REPORT PART 6: Performace Reporting 06

83 Transport Road Transport Output: Provide driver licensing and vehicle registration services, conduct inspections and on-road auditing of heavy and commercial passenger vehicles, provide accreditation and licensing of the commercial passenger industry and ensure compliance with legislative requirements. Key Deliverables Actual Estimate Actual Estimate Comments Licensed drivers Increased demand for licenses due to the NT s expanding population and economic growth Registered motor vehicles Increased demand for licenses due to the NT s expanding population and economic growth Customer satisfaction 97% 95% 95% 95% Results of customer survey undertaken in February 2012 Registration and driver licence reminder notices sent five weeks prior to expiry date 100% 100% 100% 100% 1 Includes all licence categories, including commercial, passenger vehicle, provisional and learner. 2 Includes all vehicle types, including motorcycles, trailers, heavy vehicles and commercial passenger vehicles. Transport Assets Output: Develop and manage the Territory s transport assets program, including assistance to the Darwin Port Corporation for non-commercial activities. Key Deliverables Actual Estimate Actual Estimate Comments Community service obligation payments to the Darwin Port Corporation 1 $4.32M $3.16M $3.16M $2.91M Management of government facilities 2 1 Includes a one-off payment to Darwin Port Corporation for repairs and maintenance to the Fisherman s Wharf and Stokes Hill Wharf precinct. 2 Includes bus stops, shelters and interchanges, boat ramps, jetties, pontoons and barge landings, remote aerodromes, road safety centres, motor vehicle registries, METAL training facilities and weighbridges. 06 PART 6: Performace Reporting DLP ANNUAL REPORT 81

84 Performance reporting by output group Transport Policy Output: Provide timely high-level strategic transport advice to government. Key Deliverables Actual Estimate Actual Estimate Comments Policy advice measured by stakeholder satisfaction 90% 90% 90% 90% Survey is currently being undertaken for 2012 Delivery of the Integrated Regional Transport Strategy s Bus Trial Initiative 1 Input into and delivery of National Reforms (COAG/ SCOTI) within agreed timeframes % 90% 90% 90% 1 A total of eight new scheduled passenger bus trial services from major Territory centres to remote communities were commenced or continued to be run in The feasibility of two other services is still being assessed. 2 COAG is the Council of Australian Governments and SCOTI is the Standing Council on Transport and Infrastructure. Darwin Bus Service Output: A safe, comfortable, reliable and courteous bus service that is efficient and cost effective. Key Deliverables Actual Estimate Actual Estimate Comments Total scheduled services Contractual service kilometres 1.71M 1.69M 1.70M 1.69M Average cost per kilometre $4.98 $4.99 $4.99 $4.99 Client satisfaction 99% 99% 99% 99% DLP ANNUAL REPORT PART 6: Performace Reporting 06

85 07Part 7 Legislation DLP ANNUAL REPORT 83

86 Governing legislation Legislation and Administrative Responsibilities The Department of Lands and Planning administers a range of legislation under the ministerial portfolio for the Minister for Lands and Planning and the Minister for Transport. Ministerial Portfolio Minister for Lands and Planning Minister for Transport Act Aboriginal Land Architects Building Construction Industry Long Service Leave and Benefits Control of Roads (Part IV) Crown Lands (except section 79) Crown Lands Freehold (Conversion from Crown Leasehold) Electrical Workers and Contractors Lands Acquisition Lands Acquisition (Pastoral Leases) Land Development Corporation Licensed Surveyors Miscellaneous Acts Amendment (Aboriginal Community Living Areas) Northern Territory Land Corporation Palmerston Development Authority Act Repeal Pastoral Land (Aboriginal Community Living Areas) Place Names Planning Plumbers and Drainers Licensing Plumbers and Drainers Licensing (Validation) Special Purposes Leases Valuation of Land Aerodromes Act Repeal Commercial Passenger (Road) Transport Control of Roads (except Part IV) Marine Marine Pollution Motor Vehicles (except Part V) Petroleum Products Subsidy Public Transport (Passenger Safety) Rail Safety Road Transport Reform (Vehicles and Traffic) (Northern Territory) Traffic DLP ANNUAL REPORT PART 7: Legislation 07

87 New or amended legislation for The Department of Lands and Planning produced the following legislation under the Lands and Planning and Transport portfolios: Lands and Planning The Building Amendment (Rural Relocation) Regulations 2011 were effected on 2 November The policy provides for the relocating of buildings, in that where a building is lawful on its original location it should retain that status on a new site, as long as it is moved to approved rural land and subject to some other requirements. The Planning Amendment (Exempt Subdivisions) Regulations 2011 were effected on 20 December 2011 to prescribe land on which there is telecommunications infrastructure used, or proposed to be used, for associated with the National Broadband Network rollout is situated as an exempt subdivision for the purposes of section 5(2)(h) of the Planning Act. The Building Amendment (Registration and other matters) Bill 2011 and the Building Amendment (Residential Building Consumer Protection) Bill 2012 were introduced as cognate Bills in the Legislative Assembly on 23 November 2011, passed on 27 March 2012 and commenced on 27 April The purpose of the Building Amendment (Registration and other matters) Bill 2011 is to provide for certain matters affecting building practitioners registration. The amendments also make legislative provision for the Regulations to prescribe requirements for progress payments to be linked to specified stages of building work. In addition, several housekeeping matters are addressed in this Bill. The purpose of the Building Amendment (Residential Building Consumer Protection) Bill 2012 is to establish a Home Warranty Insurance scheme, (now referred to as Residential Building Insurance (RBI)), and for the provision of approved fidelity fund schemes, which offer protection similar to RBI. The Building Amendment (Disability Access and Other Matters) Act 2012 was introduced into the Legislative Assembly on 23 February 2012, passed on 28 March 2012 and commenced on 27 April The purpose of this Bill is to amend the Building Act to provide for two different matters. The first matter relates to miscellaneous housekeeping matters. Since the commencement of the significant reforms to the Building Act in 2006, the Act has been tested and it has become apparent that a number of minor housekeeping amendments are required. Some of those housekeeping matters were included in the Building Amendment (Registration and other matters) Bill The second matter is in response to the commencement of the Commonwealth Disability (Access to Premises Buildings) Standards Those Standards are made under the Commonwealth Disability Discrimination Act The technical provisions in the Standards were replicated in the 2011 edition of the Building Code of Australia (the BCA). The BCA is the relevant technical standard for building work adopted in the Building Act (NT) through the Regulations. All proposed building work must comply with the BCA before a building permit may be issued. 07 PART 7: Legislation DLP ANNUAL REPORT 85

88 Taxi cctv The cameras record antisocial behaviour and assist the prosecution of criminal offenders. This will improve the safety of drivers and passengers. Transport The Traffic and Other Legislation Amendment Bill 2011 was introduced into the Legislative Assembly on 4 May 2011 and passed on 10 August 2011 without amendment. The Act (no. 22 of 2011) commenced on 1 September This amendment implements changes to methods for measuring breath alcohol content and other outstanding miscellaneous amendments. The Traffic Amendment (Australian Road Rules) Regulations (no. 56 of 2011) commenced on 1 February 2012 (apart from the age-appropriate child restraint laws, which will commence on 1 February 2013) to implement various nationally agreed reforms. The majority of the amendments adopted are of a minor technical nature. Key changes include: requiring children under seven to be restrained in vehicles appropriately for their age and size limiting use of mobile phones and visual display units in vehicles limiting use of fog lights further restricting use of wheeled recreational devices specifically requiring observation of traffic signs increasing driver responsibilities for passengers wearing of seatbelts limiting the number of passengers to the number of available seatbelts prohibiting carriage on motorbikes of pillion passengers under eight years of age prohibiting vehicles from stopping on painted islands technical amendments to various road rules reflecting current driver behaviour and traffic engineering practices. The Motor Vehicles (Fees and Charges) Amendment Regulations 2012 were gazetted on 28 June 2012 to commence on 1 July The current NT Motor Vehicles (Fees and Charges) Regulations provide for an automatic annual adjustment to occur on 1 July each year. These amendments to the regulations were effected to: stop the 2012 annual adjustment from automatically occurring retain the current schedule for heavy vehicle registration charges for the period 1 July to 31 December 2012 attach a schedule of charges implementing a 3.7 per cent adjustment and a reduction in the A-trailer charge to take effect from 1 January During the reporting period, approval was granted to draft amendments to: the Passenger Bus Regulations. This will mean the Motor Omnibus Regulations will be repealed and relevant provisions incorporated into the Passenger Bus Regulations to reduce regulatory complexity and avoid duplication of legislative provisions governing passenger bus services amendments to the Motor Vehicles Regulations to allow holders of a C class (car) licence to drive certain vehicles used in civil construction or agriculture implement Territory legislation for the introduction of national regulators for heavy vehicle, marine and rail safety repeal the Petroleum Products Subsidy Act, enacted in the Territory to administer a national scheme that has ceased to exist DLP ANNUAL REPORT PART 7: Legislation 07

89 Part 8 08Committees and Boards

90 Committees and boards Surveyors Board of the Northern Territory The Surveyors Board is a statutory body under Part III of the Licensed Surveyors Act. The board s purpose is to provide for the registration of land boundary surveyors and regulation of the practice of land boundary surveying in the Northern Territory. Members at 30 June 2012 were: Chair: Mr Garry West - Surveyor-General Members: Mr Gregory Leach Mr Aleksander Bakunowicz Mr Robert Sarib Mr Roland Maddocks Secretary: Mr David Jeffery Place Names Committee for the Northern Territory The Place Names Committee is established under section 5 of the Place Names Act to make recommendations to the minister on the naming of places (streets, roads, suburbs, localities and natural features). Members at 30 June 2012 were: Chair: Ms Dawn Lawrie Members: Mr Garry West - Surveyor-General Councillor Liz Martin Mr Sean Parnell Action Officer: Ms Christine West Building Advisory Committee The Building Advisory Committee is a statutory body under section 9(1) of the Building Act. The committee advises the minister on appropriate technical standards and matters arising from administration of the Act. The committee accredits building products, construction methods, and design and component systems. Members at 30 June 2012 were: Chair: Mr Steven Ehrlich Deputy Chair: Mr Peter Russell Members: Mr Dean Chambeyron Mr Steve Popple Mr Robert Foote Mr Peter Pratten Mr Paul Nowland Mr Grant O Callaghan Mr Neil Clarke Mr Graham Lockerbie Mr Carl Martin Acting Registrar: Ms Erin Belfrage Building Appeals Board The Building Appeals Board was established under section 17(1) of the Building Act to determine and decide on: modifications to the applications of building regulations with regard to specific building work appeals by owners or their agents against decisions of a building certifier appeals by the director against the decision of a building certifier appeals against decisions of the director. Members at 30 June 2012 were: Chair: Mr John Brears Deputy Chair: Mr Daniel Bree Members: Mr David Bridgman Mr Steve Popple Mr Craig Leslie Mr Andy Matthewson Mr Allan Oates Mr Dehne Tynan Acting Registrar: Ms Erin Belfrage DLP ANNUAL REPORT PART 8: Committees and Boards 08

91 Northern Territory Plumbers and Drainers Licensing Board The Plumbers and Drainers Licensing Board is a statutory authority established under section 5 of the Plumbers and Drainers Licensing Act. It is responsible for issuing advanced tradesman licences, journeyman registration cards and reciprocity certificates. The board administers the Plumbers and Drainers Licensing Act and ensures only qualified persons obtain licences, registration cards and certificates. It is also responsible for assessing and maintaining standards of workmanship, and protecting consumers by investigating complaints, and, where appropriate, taking disciplinary action. The board fulfils its role by functioning in conjunction with other authorities that, under their respective legislation, require authorised plumbing and drainage works to be carried out by licensed tradesmen. Members at 30 June 2012 were: Chair: Vacant Deputy Chair: Mr Richard McElwee Members: Mr Rodney Cryer Mr Armando Padovan Mr Dennis Reid Acting Registrar: Ms Erin Belfrage NT Build NT Build Board (called NT Build ) was established as a body corporate in 2005, under the Construction Industry Long Service Leave and Benefits Act (the Act), to provide portable long service leave benefits to Territory construction industry workers. The Board is responsible for administering the portable long service leave scheme. The scheme enables workers to qualify for long service leave based on their service to the industry rather than service with the same employer. Workers can therefore work for any number of employers. The portability also extends across state borders under the National Reciprocal Agreement. The Scheme is funded by a levy imposed on eligible construction projects of at least $ or more in value (excluding single detached dwellings) and from investment earnings. This revenue is used to fund the payment of long service leave benefits accrued by construction workers. The Board is required under the Act to report annually direct to the responsible minister on its operations. Accordingly, a separate annual report, including audited financial statements, is tabled each year in the Legislative Assembly. Members at 30 June 2012 were: Chair: Mr Barry Chambers Members: Mr Graham Kemp Mr Dick Guit Mr Michael Haire Mr Tony Stubbin Mr Mick Huddy Registrar: Mr Theo Tsikouris 08 PART 8: Committees and Boards DLP ANNUAL REPORT 89

92 Committees and boards Northern Territory Land Corporation In accordance with the Northern Territory Land Corporation Act, the function of the Northern Territory Land Corporation (the corporation) is to acquire, hold and dispose of real property in accordance with this Act. The Corporation is not an Authority or Instrumentality of the Crown and is not subject to the control and direction of a minister or the Crown. Members at 30 June 2012 were: Chair: Mr Peter Blake Members: Mr Chris Bigg Mr Bill Goedegebuure Mr John Pinney Mr David Ritchie Executive Officer: Ms Grace Thorpe The Department of Lands and Planning provides some services to the corporation to carry out its functions. Land and Valuation Review Tribunal The Land and Valuation Review Tribunal is established under section 21 of the Valuation of Land Act. The tribunal reviews any decision of a Valuation Board of Review referred by an objector who is dissatisfied with the board s decision. Under the Crown Lands Act, the tribunal can review a decision of the minister or the Valuer-General on an objection to a reappraisal of lease rent, an assessment of compensation for improvements on land or a determination to forfeit a lease of Crown lands. The tribunal can also review a decision of the minister or the Valuer-General under the Special Purposes Leases Act. As required by the Act, the President and all members of the tribunal are judges of the Supreme Court. Members at 30 June 2012 were: Chair: Hon Trevor John Riley (Chief Justice) appointed President of the Tribunal Members: Hon Peter Martin Barr Hon Jenny May Blokland Hon Judith Kelly Hon Justice John Ronald Mansfield AM Hon Justice Brian Ross Martin AO Hon Dean Mildren RFD Hon Leslie Trevor Olsson AO MBE RFD ED Hon John Edward Reeves Hon Stephen Roger Southwood Registrar: Ms Margaret Rischbieth DLP ANNUAL REPORT PART 8: Committees and Boards 08

93 Northern Territory Architects Board The Northern Territory Architects Board is constituted under the Architects Act to authorise or refuse the registration of an applicant (subject to conditions) as an architect, an architectural partnership or an architectural company. It regulates the practice of architecture in the Northern Territory and ensures the general community can rely on the fact that persons using the title architect are qualified to perform their professional role. Members at 30 June 2012 were: Chair: Mr Ross Finocchiaro Deputy Chair: Mr Richard Layton Members: Mr Robert Cova Mr Bertram Birk Ms Lynette Bennett Registrar: Ms Helen Gordon Community Living Areas Tribunal The Community Living Areas Tribunal is constituted under part 8 of the Pastoral Land Act as an independent body to consider and make recommendations to the minister on applications for the excision of Aboriginal community living areas from pastoral leases. Applications are referred to the tribunal by the minister, who appoints two members. One of the members is selected from nominations provided by the Northern Territory Cattlemen s Association, and the other from nominations provided by the relevant land council. The two members, and chair or deputy chair, comprise the tribunal for the purpose of hearing a particular matter. Members at 30 June 2012 were: Chair: Mr Hugh Bradley Deputy Chair: Ms Raelene Webb Members as nominated by the Northern Territory Cattlemen s Association: Mr Bob Lee Mr Jim Forwood Mr Paul Vanderleur Mr Sam Goldsworthy Mr John Armstrong Mr Bill Prior Mr Val Dyer Mr John Hagan Members as nominated by the Northern Land Council: Mr Michael O Donnell Ms Jenny Blockland Ms Toni Bauman Mr David Dalrymple Mr Paul Walsh Mr Michael Prowse Action Officer: Ms Helen Gordon 08 PART 8: Committees and Boards DLP ANNUAL REPORT 91

94 Committees and Boards Commercial Passenger Vehicle Board The Commercial Passenger Vehicle Board is a statutory body under the Commercial Passenger (Road) Transport Act. The board provides advice to the minister on all matters relating to commercial passenger vehicles. Members at 30 June 2012 were: Chair: Mr Chris Bigg Members: Mrs Mary Johnson Dr Siva Ram Vemuri Mr Aaron Blasch Mr Simon Webb Mr Glenn Aitchison Mr Gerry Copeland Mr Nicholas Papandonakis Executive Officer: Ms Bernie Ingram Building Practitioners Board The Building Practitioners Board was established under the Building Act to ensure that qualifications and performance of building practitioners match their responsibilities under the Act. The Northern Territory s building control system is supported by private sector certification. Building practitioners are responsible for certifying, within their respective level of registration, that building works are designed and constructed in accordance with the Building Act, the Building Code of Australia and associated Australian standards. Building practitioners must be registered with the Building Practitioners Board. Members at 30 June 2012 were: NT Valuation Board of Review Panel The Valuation Board of Review Panel is a statutory body established under Section 20B of the Valuation of Land Act to consider objections to decisions of the Valuer General, usually for rating purposes. The Act provides for the establishment by ministerial appointment of a Valuation Board of Review Panel of appropriately qualified persons from which a Valuation Board of Review is selected to consider an objection. The panel consists of 14 members appointed by the minister who must be valuers, members of the Real Estate Institute of Australia (or hold qualifications that the minister considers equivalent to such membership), or legal practitioners. At least two of the panel must be legal practitioners. Members at 30 June 2012 were: Chair: Mr Michael McDermott Deputy Chair: Mr John Gleeson Members: Mr Nikolai Christup Mr Ross Copland Mr Trevor Dalton Mr David Francis Mr Douglas Fraser Mr Michael Gale Mr Martin Gore Mr Bill Linkson Mr Timothy Rabbitt Mr Terry Roth Mr Alex Smithson Mr Tony West Registrar: Helen Gordon Chair: Mr Dick Guit Deputy Chair: Ms Penny Whinney-Houghton Members: Mr Robert Cox Mr Brendan Meney Mr Peter Naylor Mr Paul Nowland Mr Bede Rodeghiero Mr John Stewart Mr Jim Williams Mr Graham Lockerbie Registrar: Ms Vicki Goudie DLP ANNUAL REPORT PART 8: Committees and Boards 08

95 Electrical Workers and Contractors Licensing Board The Electrical Workers and Contractors Licensing Board is a statutory authority established under section 6 of the Electrical Workers and Contractors Act. It is responsible for issuing electrical and contractor s licences, registration cards and reciprocity certificates. The board administers the Electrical Workers and Contractors Act and ensures only qualified persons obtain licences. It is also responsible for assessing and maintaining standards of workmanship and protecting consumers by investigating complaints and, where appropriate, taking disciplinary action. The board fulfils its role by functioning in conjunction with other authorities that, under their respective legislation, require authorised electrical works to be carried out by licensed tradesmen. Members and Deputies at 30 June 2012 were: Members: Chair: Mr Colin Freeman Mr Stephen Gray Mr Michael Haire Mr Ken Kernich Mr Pat Nolan Deputies: Mr Geoff Cowie Mr Howard Pullen Mr Andrew Whitty Acting Registrar: Mrs Chantale Hore 08 PART 8: Committees and Boards DLP ANNUAL REPORT 93

96 Development Consent Authority The Development Consent Authority (DCA) determines development applications under the Planning Act and NT Planning Scheme, and conducts hearings into other matters as requested by the minister under the provisions of the Act. The minister may direct the DCA generally under section 85(1) of the Planning Act. Members at 30 June 2012 were: CHAIRMAN: Alice Springs: Batchelor: Darwin: Katherine: Litchfield: Palmerston: Tennant Creek: Peter McQueen John Mcbride David Koch Brendan Heenan Geoff Booth Chansey Paech (Alternate member for B Heenan and G Booth) Stuart Delahay Richard Luxton Andrew Turner Diedre Pickering Dave Gray (Alternate member for A Turner and D Pickering) Grant Tambling David Hibbert Garry Lambert Robin Knox Jeanette Anictomatis (Alternate member for G Lambert and R Knox) Anne Shepherd Barry Densley Donald (Henry) Higgins Steven Rose Fay Miller (Alternate member for D Higgins and S Rose) Keith Aitken Richard Luxton Michael Bowman Allan McKay Terry Richards (Alternate member for M Bowman and A Mckay) Steve Ward Stuart Delahay Susan McKinnon Paul Bunker Andrew Byrne (Alternate member for S McKinnon and P Bunker) Ray Wallis Lennart Holbrok William (Tony) Boulter Hal Ruger Narelle Bremner (Alternate member for W Boulter and H Ruger) DLP ANNUAL REPORT PART 8: Committees and Boards 08

97 09Part 9 Financial Statements Department OF LANDS AND PLANNING GOVERNMENT BUSINESS DIVISION DARWIN BUS SERVICE

98 Department of Lands and Planning Financial Report FINANCIAL STATEMENT OVERVIEW For the year ended 30 June 2012 The Department of Lands and Planning (the Department) through its Corporate Plan continues to shape the Northern Territory s built environment by providing government with strategic plans and policies to meet current and emerging needs for land, transport systems and other infrastructure, supporting economic growth. The Department plays a central role in the sustainable development of the Territory by forecasting demand and providing: strategic and long-term integrated land use planning, to achieve the best use of land; roads, transport and infrastructure planning to develop and connect communities across the Territory; and safe, accessible and effective public transport services. The Department s outputs are Lands, Planning, Transport and the Statutory Body: NT Build. The Department s corporate division, Business Services, is allocated across these outputs for external reporting purposes. Refer to Note 3 to the Financial Statements for reporting by output groups. Operating Statement (Financial Performance) The Department s financial performance resulted in an operating deficit of $31.6 million against a budgeted $28.7 million deficit. The deficit primarily relates to the depreciation expense of $41.7 million, a non-cash expense which is not funded under the Territory s Financial Management Framework. The operating result was within the Department s target, a net result of total income higher than budgeted by 1% and expenditure higher than budgeted by 2%. Summary of Financial Performance Original Budget Revised Budget Change Actual Variance $M $M $M Total income % % Total expenses % % Net operating result (36.9) (28.7) (22.2) % (31.6) 10.0 % Operating Income Total operating income for was $277.5 million, an increase of $37.1 million over and slightly higher than the revised budget. The increase between financial years is primarily due to additional output appropriation of $23.9 million, and an increase in capital grants and subsidies revenue of $12.5 million. Output appropriation increased due to once-off additional funding of $10 million for repairs and maintenance to Territory roads and an additional $30 million under the National Disaster Relief and Recovery Arrangements (NDRRA) for damage to Territory roads. Substantial investment into repairs and maintenance is carried out every year on Territory roads and output appropriation funding was increased in in recognition of the record wet season in to undertake further work to repair and improve the road network condition. Capital grants and subsidies revenue of $12.5 million relates to the funding received through Regional Partnership arrangements towards the upgrade of the road between Angurugu and Umbakumba on Groote Eylandt. The other main source of funding received in was Commonwealth appropriation to fund the repairs and maintenance of roads on the National Network under the maintenance agreement with the Australian Government DLP ANNUAL REPORT PART 9: Financial Statements 09

99 Department of Lands and Planning Financial Report FINANCIAL STATEMENT OVERVIEW For the year ended 30 June Operating Income Profile 8% 4% 5% 5% Grants and subsidies revenue $14m Output appropriation $217.3m 78% Commonwealth appropriation $22.7m Sales of goods and services $11.4m Other income $12.1m Operating Expenses Total operating expenses for was $309.1 million. Repairs and maintenance of $129.6 million constitute the greatest proportion of this cost, followed by purchases of goods and services of $71.9 million and employee expenses of $46.2 million Operating Expense Profile 13% 3% 4% 15% Employee expenses $46.2m Purchases of goods and services $71.9m 23% Repairs and maintenance $129.6m Depreciation and amortisation $41.7m Other administrative expenses $7.9m 42% Current grants and subsidies $11.8m The below figure summarises expenditure trends by category over the last three financial years. There was a small increase in total expenditure in compared to of 3.2% (a contrast on the increase of 15.8% in ). Key variations are highlighted below: Compared to , repairs and maintenance expenses increased by $16.4 million, representing a 14.5% increase in the investment of maintenance on Territory roads. Employee expenses increased by $3.1 million, representing a 7.1% increase on the previous year. This is the result of enterprise bargaining agreement salary increases and demand growth across a number of activities, including the National Transport Reform through a National Regulator, DriveSafe NT Remote, New Era in Corrections initiatives and the newly established Office of the Valuer General. Other administrative expenses reduced by $7.9m or 50% from the previous year due to a once-off write down in of works in progress that did not meet the asset capitalisation criteria of $9.5 million. Depreciation expense increased by $4.5m (12.1%) in comparison to , as a result of $87.5 million worth of infrastructure works capitalised in PART 9: Financial Statements DLP ANNUAL REPORT 97

100 Department of Lands and Planning FINANCIAL STATEMENT OVERVIEW For the year ended 30 June 2012 Expenditure Trend Actual $M Actual $M Change % Actual $M Change % Operating expenses Employee expenses Purchases of goods and services (3.7) Repairs and maintenance Property management Depreciation and amortisation Other administrative expenses (50.1) Current grants and subsidies (25.7) 2.7 (7.7) Capital grants and subsidies (31.4) Community service obligations (26.8) Total R&M Expenditure Repairs and maintenance costs are a substantial investment on Territory Roads undertaken by the Department on both the Territory and National Network and is the main component of total operating expenditure. The graph below signifies the increasing investment in Repairs and Maintenance (including Disaster Maintenance) over the last three financial years. Repairs and Maintenance expenditure trend 140, , , , , ,590 $ 000s 80,000 60,000 40,000 20, Years DLP ANNUAL REPORT PART 9: Financial Statements 09

101 Department of Lands and Planning FINANCIAL STATEMENT OVERVIEW For the year ended 30 June 2012 Balance Sheet The Balance Sheet shows the Department s net worth and financial position. The Department held assets totalling $3.3 billion at 30 June 2012, an increase of $346.5 million from This is represented predominantly by an increase in the value of the land portfolio by $253 million, an increase in infrastructure of $47.8 million and works in progress of $45 million. The largest component of the Department s asset profile relates to infrastructure assets (primarily the Territory road network), which was last revalued in In , the Department revalued land in accordance with a rolling revaluation plan, resulting in a revaluation increment of $229.9 million. The Department s land portfolio, second to Infrastructure, is a significant proportion of the Department s asset base. The land portfolio includes vacant crown land which is managed by the Department as the Crown Land administrator to meet the current and future land requirements of the Territory Government. Asset Portfolio 7% 1% 16% Land $525.2m 76% Infrastructure $2.5b Works in Progress $238.7m Buildings $27.7m The Department held liabilities of $36.2 million as at 30 June 2012, an increase of $12.6 million on reflecting the inclusion of unearned revenue of $10.0 million from the sale of land in the Middle Arm industrial precinct and the obligation to carry out the associated headworks being undertaken in In the Department continued to maintain a strong financial position, with liabilities representing 1% of total assets. Statement of Cash Flow The Statement of Cash Flows represents cash received and applied during the year from operating, investing and financing activities. The table below summarises the movement of cash over the year. Statement of Cash Flow Summary Cash Flow Actual $M Actual $M Actual $M Variance $M Variance Cash at beginning of year (24.7) (65.4) Cash received Less cash spent Cash at end of reporting period The Department s cash of $44.7 million at year end was an increase of $31.6 million from , due to the advance payment of Commonwealth funds for infrastructure investment to be carried out on the Central Arnhem Road, the Arnhem Highway and the Stuart Highway/Howard Springs intersections. The cash and deposits held will be utilised in future years to meet the Department s obligations. % 09 PART 9: Financial Statements DLP ANNUAL REPORT 99

102 Department of Lands and Planning FINANCIAL STATEMENT OVERVIEW For the year ended 30 June 2012 Capital Spend The Department s Capital Works program, comprising mainly of capital works for roads on the Territory and National networks and land development in Palmerston East, is a considerable investment each year. Capital spend was slightly higher in than the previous year, although down on , which saw the significant achievement of completing the first stage of the Tiger Brennan drive project. In , the following significant works were undertaken; finalisation of the Berrimah Road duplication and rail overpass as part of the staged implementation of the Tiger Brennan Drive extension; headworks infrastructure to continue the release of land in Palmerston East; provision of headworks to service the new suburb of Kilgariff in Alice Springs. Capital Spend Trend 160, , , , ,000 $ 000s 140, , , ,712 Investment in infrastructure and capital 130, , , Years DLP ANNUAL REPORT PART 9: Financial Statements 09

103 Department of Lands and Planning Financial Report CERTIFICATION OF THE FINANCIAL STATEMENTS We certify that the attached financial statements for the Department of Lands and Planning have been prepared from proper accounts and records in accordance with the prescribed format, the Financial Management Act and Treasurer s Directions. We further state that the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement, and notes to and forming part of the financial statements, presents fairly the financial performance and cash flows for the year ended 30 June 2012 and the financial position on that date. At the time of signing, we are not aware of any circumstances that would render the particulars included in the financial statements misleading or inaccurate... David Ritchie Jasmin Aldenhoven Chief Executive Chief Financial Officer 30 August August PART 9: Financial Statements DLP ANNUAL REPORT 101

104 Department of Lands and Planning Comprehensive Operating Statement For the year ended 30 June 2012 NOTE 2012 $ $ 000 INCOME Grants and subsidies revenue Current 1, Capital 12,510 - Appropriation Output 217, ,414 Commonwealth 22,732 18,804 Sales of goods and services 11,363 10,824 Goods and services received free of charge 4 7,584 5,910 Gain on disposal of assets 5 3,091 8,300 Other income 1,468 2,314 TOTAL INCOME 3 277, ,397 EXPENSES Employee expenses 46,224 43,174 Administrative expenses Purchases of goods and services 6 67,942 70,553 Repairs and maintenance 129, ,210 Property Management 3,979 3,629 Depreciation and amortisation 10, 11 41,720 37,210 Other administrative expenses 7,874 15,785 Grants and subsidies expenses Current 2,722 2,949 Capital 5,925 8,640 Community service obligations 3,161 4,316 TOTAL EXPENSES 3 309, ,466 NET DEFICIT (31,604) (59,069) OTHER COMPREHENSIVE INCOME Transfers From Reserves on Disposal of Assets 8,147 13,413 Revaluation Surplus ,497 64,742 TOTAL OTHER COMPREHENSIVE INCOME 220,644 78,155 COMPREHENSIVE RESULT 189,040 19,086 The Comprehensive Operating Statement is to be read in conjunction with the notes to the financial statements DLP ANNUAL REPORT PART 9: Financial Statements 09

105 Department of Lands and Planning BALANCE SHEET As at 30 June 2012 NOTE 2012 $ $ 000 ASSETS Current Assets Cash and deposits 7 44,686 13,070 Receivables 8 12,972 7,320 Prepayments Other assets 9 11,073 34,225 Total Current Assets 68,766 54,639 Non-Current Assets Advances and investments 4,394 4,226 Property, plant and equipment 10 3,248,188 2,903,409 Heritage and cultural assets Total Non-Current Assets 3,252,748 2,907,803 TOTAL ASSETS 3,321,514 2,962,442 LIABILITIES Current Liabilities Deposits held 12 1,577 2,074 Payables 13 17,330 15,018 Provisions 14 5,370 4,765 Other Liabilities 10,000 - Total Current Liabilities 34,277 21,857 Non-Current Liabilities Provisions 14 1,893 1,780 Total Non-Current Liabilities 1,893 1,780 TOTAL LIABILITIES 36,170 23,637 NET ASSETS 3,285,344 2,938,805 EQUITY Capital 1,614,046 1,456,547 Reserves 15 1,778,517 1,566,020 Accumulated funds (107,219) (83,762) TOTAL EQUITY 3,285,344 2,938,805 The Balance Sheet is to be read in conjunction with the notes to the financial statements. 09 PART 9: Financial Statements DLP ANNUAL REPORT 103

106 Department of Lands and Planning Statement of Changes in Equity For the year ended 30 June 2012 NOTE Equity at 1 July $ 000 Comprehensive result $ 000 Transactions with owners in their capacity as owners $ 000 Equity at 30 June $ Accumulated Funds (83,762) (31,604) - (115,366) Transfers from reserves - 8,147-8,147 (83,762) (23,457) - (107,219) Reserves 15 1,566, ,497-1,778,517 1,566, ,497-1,778,517 Capital Transactions with Owners 1,456, ,456,547 Equity injections Capital appropriation ,263 43,263 Equity transfers in ,515 52,515 National partnership payments ,294 93,294 Commonwealth capital - - 5,752 5,752 Equity withdrawals Capital withdrawal - - (20,335) (20,335) Equity transfers out - - (16,990) (16,990) 1,456, ,499 1,614,046 Total Equity at End of Financial Year 2,938, , ,499 3,285, Accumulated Funds (38,106) (59,069) - (97,175) Transfers from reserves - 13,413-13,413 (38,106) (45,656) - (83,762) Reserves 15 1,501,278 64,742-1,566,020 1,501,278 64,742-1,566,020 Capital Transactions with Owners 1,350, ,350,294 Equity injections Capital appropriation ,196 59,196 Equity transfers in ,518 29,518 National partnership payments ,881 34,881 Commonwealth capital - - 4,291 4,291 Equity withdrawals Capital withdrawal - - (1,257) (1,257) Equity transfers out - - (20,376) (20,376) 1,350, ,253 1,456,547 Total Equity at End of Financial Year 2,813,466 19, ,253 2,938,805 The Statement of Changes in Equity is to be read in conjunction with the notes to the financial statements DLP ANNUAL REPORT PART 9: Financial Statements 09

107 Department of Lands and Planning cash flow statement For the year ended 30 June 2012 NOTE 2012 $ $ 000 CASH FLOWS FROM OPERATING ACTIVITIES Operating Receipts Grants and subsidies received Current 1, Appropriation Output 217, ,414 Commonwealth 22,732 18,804 Receipts from sales of goods and services 50,362 43,072 Total Operating Receipts 291, ,121 Operating Payments Payments to employees (45,297) (42,741) Payments for goods and services (228,433) (210,610) Grants and subsidies paid Current (2,722) (2,949) Capital (722) (6,096) Community service obligations (3,161) (4,316) Total Operating Payments (280,335) (266,712) Net Cash From/(Used in) Operating Activities 16 11,544 (10,591) CASH FLOWS FROM INVESTING ACTIVITIES Investing Receipts Proceeds from asset sales 37,474 22,434 Total Investing Receipts 37,474 22,434 Investing Payments Purchases of assets (138,712) (133,226) Advances and investing payments (167) - Total Investing Payments (138,879) (133,226) Net Cash Used in Investing Activities (101,405) (110,792) CASH FLOWS FROM FINANCING ACTIVITIES Financing Receipts Deposits received (497) (422) Equity injections Capital appropriation 43,263 59,196 Commonwealth appropriation 99,046 39,172 Total Financing Receipts 141,812 97,946 Financing Payments Equity withdrawals (20,335) (1,257) Total Financing Payments (20,335) (1,257) Net Cash From Financing Activities 121,477 96,689 Net increase/(decrease) in cash held 31,616 (24,693) Cash at beginning of financial year 13,070 37,763 CASH AT END OF FINANCIAL YEAR 7 44,686 13,070 The Cash Flow Statement is to be read in conjunction with the notes to the financial statements. 09 PART 9: Financial Statements DLP ANNUAL REPORT 105

108 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 INDEX OF NOTES TO THE FINANCIAL STATEMENTS 1. Objectives and Funding 2. Statement of Significant Accounting Policies 3. Comprehensive Operating Statement by Output Group INCOME 4. Goods and Services Received Free of Charge 5. Gain on Disposal of Assets EXPENSES 6. Purchases of Goods and Services ASSETS 7. Cash and Deposits 8. Receivables 9. Assets Held for Sale 10. Property, Plant and Equipment 11. Heritage and Cultural Assets LIABILITIES 12. Deposits Held 13 Payables 14. Provisions EQUITY 15. Reserves OTHER DISCLOSURES 16. Notes to the Cash Flow Statement 17. Financial Instruments 18. Commitments 19. Contingent Liabilities and Contingent Assets 20. Events Subsequent to Balance Date 21. Accountable Officer s Trust Account 22. Write-offs, Postponements, Waivers, Gifts and Ex Gratia Payments 23. Schedule of Territory Items DLP ANNUAL REPORT PART 9: Financial Statements 09

109 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June OBJECTIVES AND FUNDING The Department of Lands and Planning provides Government with strategic plans and policies to meet current and emerging needs for land, transport systems and other infrastructure to support economic growth. Additional information on key functional responsibilities of the Department can be found in the Performance Reporting section of the Annual Report. The Department is predominantly funded by, and is dependent on, the receipt of Parliamentary appropriations. The financial statements encompass all funds through which the agency controls resources to carry on its functions and deliver outputs. For reporting purposes, outputs delivered by the agency are summarised into several output groups. Note 3 provides summary financial information in the form of a Comprehensive Operating Statement by output group. 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Accounting The financial statements have been prepared in accordance with the requirements of the Financial Management Act and related Treasurer s Directions. The Financial Management Act requires the Department to prepare financial statements for the year ended 30 June based on the form determined by the Treasurer. The form of agency financial statements is to include: (i) a Certification of the Financial Statements; (ii) a Comprehensive Operating Statement; (iii) a Balance Sheet; (iv) a Statement of Changes in Equity; (v) a Cash Flow Statement; and (vi) applicable explanatory notes to the financial statements. The financial statements have been prepared using the accrual basis of accounting, which recognises the effect of financial transactions and events when they occur, rather than when cash is paid out or received. As part of the preparation of the financial statements, all intra-agency transactions and balances have been eliminated. Except where stated, the financial statements have also been prepared in accordance with the historical cost convention. The form of the agency financial statements is also consistent with the requirements of Australian Accounting Standards. The effects of all relevant new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are effective for the current annual reporting period have been evaluated. The Standards and Interpretations and their impacts are: AASB 124 Related Party Disclosures (December 2009), AASB Amendments to Australian Accounting Standards [AASB 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052] The Standards amend the requirements of the previous version of AASB 124 to clarify the definition of a related party, provide a partial exemption from related party disclosure requirements for government-related entities and include an explicit requirement to disclose commitments involving related parties. The Standards do not impact the financial statements. AASB 1054 Australian Additional Disclosures, AASB Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project [AASB 1, 5, 101, 107, 108, 121, 128, 132 & 134 and Interpretations 2, 112 & 113] The Standards are a consequence of Phase 1 of the joint Trans-Tasman Convergence project of the AASB and New Zealand s Financial Reporting Standards Board. AASB amends a range of Australian Accounting Standards and Interpretations for the purpose of closer alignment to IFRSs and harmonization between Australian and New Zealand Standards. The Standard relocates and deletes various Australian-specific guidance and disclosures from other Standards and aligns the wording used to that adopted in IFRSs. Relocated Australian-specific disclosures are now contained in AASB The Standards do not impact the financial statements. 09 PART 9: Financial Statements DLP ANNUAL REPORT 107

110 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 AASB Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1, 7, 101 & 134 and Interpretation 13] The Standard amends a number of pronouncements as a result of the IASB s cycle of annual improvements. Key amendments include clarification of content of statement of changes in equity (AASB 101) and financial instrument disclosures (AASB 7). The Standard does not impact the financial statements. AASB Amendments to Australian Accounting Standards [AASB 1, 3, 4, 5, 101, 107, 112, 118, 119, 121, 132, 133, 134, 137, 139, 140, 1023 & 1038 and Interpretations 112, 115, 127, 132 & 1042] The Standard makes numerous editorial amendments to a range of Australian Accounting Standards and Interpretations, including amendments to reflect changes made to the text of IFRSs by the IASB. The Standard does not impact the financial statements. AASB Amendments to Australian Accounting Standards Disclosures on Transfers of Financial Assets [AASB 1 & 7] The Standard makes amendments to AASB 7 Financial Instruments: Disclosures resulting from the IASB s comprehensive review of off balance sheet activities. The amendments introduce additional disclosures, designed to allow users of financial statements to improve their understanding of transfer transactions of financial assets, including understanding the possible effects of any risks that may remain with the entity that transferred the assets. The Standard does not impact the financial statements. AASB Amendments to Australian Accounting Standards Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation [AASB 127, 128 & 131] The Standard extends relief from consolidation to not-for-profit entities in particular circumstances, by removing the requirement for the consolidated financial statements prepared by the ultimate or any intermediate parent entity to be IFRS compliant, provided that the parent entity and the ultimate or intermediate parent entity are not-for-profit entities that comply with Australian Accounting Standards. The Standard does not impact the financial statements. (b) Australian Accounting Standards and Interpretations Issued but not yet Effective At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective. Standard/Interpretation Summary Effective for annual reporting periods beginning on or after Impact on financial statements AASB 9 Financial Instruments (Dec 2010), AASB Amendments to Australian Accounting Standards arising from AASB 9 (Dec 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] AASB 9 incorporates revised requirements for the classification and measurement of financial instruments resulting from the IASB s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement). 1 Jan 2013 Minimal effect on the financial statements DLP ANNUAL REPORT PART 9: Financial Statements 09

111 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 Standard/Interpretation Summary Effective for annual reporting periods beginning on or after Impact on financial statements AASB 10 Consolidated Financial Statements AASB 12 Disclosure of Interests in Other Entities AASB 13 Fair Value Measurement, AASB Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7, 9, , , 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132] AASB Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements standards [AASB 1, 2, 3, 5, 7, 9, , 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Interpretations 5, 9, 16 & 17] AASB Amendments to Australian Accounting Standards Presentation of Items of Other Comprehensive Income [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049] Requires a parent to present consolidated financial statements as those of a single economic entity, replacing the requirements previously contained in AASB 127 Consolidated and Separate Financial Statements. Requires the extensive disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on its financial position, financial performance and cash flows. Replaces the guidance on fair value measurement in existing AASB accounting literature with a single standard. The Standard defines fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. Makes consequential amendments to a range of Standards and Interpretations in light of the issuance of AASB 10 Consolidated Financial Statements and AASB 12 Disclosure of Interests in Other Entities. Requires entities to group items presented in other comprehensive income on the basis of whether they are potentially reclassifiable to profit or loss subsequently. 1 Jan 2013 Minimal effect on the financial statements 1 Jan 2013 Minimal effect on the financial statements 1 Jan 2013 Minimal effect on the financial statements 1 Jan 2013 Minimal effect on the financial statements 1 July 2012 Minimal effect on the financial statements 09 PART 9: Financial Statements DLP ANNUAL REPORT 109

112 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 (c) Agency and Territory Items The financial statements of the Department include income, expenses, assets, liabilities and equity over which the Department has control (Agency items). Certain items, while managed by the Department, are controlled and recorded by the Territory rather than the agency (Territory items). Territory items are recognised and recorded in the Central Holding Authority as discussed below. Central Holding Authority The Central Holding Authority is the parent body that represents the Government s ownership interest in Government-controlled entities. The Central Holding Authority also records all Territory items, such as income, expenses, assets and liabilities controlled by the Government and managed by agencies on behalf of the Government. The main Territory item is Territory income, which includes taxation and royalty revenue, Commonwealth general purpose funding (such as GST revenue), fines, and statutory fees and charges. The Central Holding Authority also holds certain Territory assets not assigned to agencies as well as certain Territory liabilities that are not practical or effective to assign to individual agencies such as unfunded superannuation and long service leave. The Central Holding Authority recognises and records all Territory items, and as such, these items are not included in the Department s financial statements. However, as the Department is accountable for certain Territory items managed on behalf of Government, these items have been separately disclosed in Note 23 Schedule of Territory Items. (d) (e) (f) (g) Comparatives Where necessary, comparative information for the financial year has been reclassified to provide consistency with current year disclosures. Presentation and Rounding of Amounts Amounts in the financial statements and notes to the financial statements are presented in Australian dollars and have been rounded to the nearest thousand dollars, with amounts of $500 or less being rounded down to zero. Changes in Accounting Policies The accounting polices adopted are consistent with those of the previous year except for policies in relation to land. Accounting Judgments and Estimates The preparation of the financial report requires the making of judgments and estimates that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgments and estimates that have significant effects on the financial statements are disclosed in the relevant notes to the financial statements. Notes that include significant judgments and estimates are: Employee Benefits Note 2(v) and Note 14: Non-current liabilities in respect of employee benefits are measured as the present value of estimated future cash outflows based on the appropriate Government bond rate, estimates of future salary and wage levels and employee periods of service. Contingent Liabilities Note 19: The present value of material quantifiable contingent liabilities are calculated using a discount rate based on the published 10-year Government bond rate DLP ANNUAL REPORT PART 9: Financial Statements 09

113 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 Allowance for Impairment Losses Note 2(n), 8: Receivables and 17: Financial Instruments. Depreciation and Amortisation Note 2(k), Note 10: Property, Plant and Equipment, and Note 11: Heritage and Cultural Assets. (h) Goods and Services Tax Income, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except where the amount of GST incurred on a purchase of goods and services is not recoverable from the Australian Tax Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the Balance Sheet. Cash flows are included in the Cash Flow Statement on a gross basis. The GST components of cash flows arising from investing and financing activities, which are recoverable from, or payable to, the ATO are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable or payable unless otherwise specified. (i) Income Recognition Income encompasses both revenue and gains. Income is recognised at the fair value of the consideration received, exclusive of the amount of GST. Exchanges of goods or services of the same nature and value without any cash consideration being exchanged are not recognised as income. Grants and Other Contributions Grants, donations, gifts and other non-reciprocal contributions are recognised as revenue when the Department obtains control over the assets comprising the contributions. Control is normally obtained upon receipt. Contributions are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated. Appropriation Output appropriation is the operating payment to each Department for the outputs they provide and is calculated as the net cost of the Department s outputs after taking into account funding from the Department s income. It does not include any allowance for major non-cash costs such as depreciation. Commonwealth appropriation follows from the Intergovernmental Agreement on Federal Financial Relations, resulting in Special Purpose Payments (SPPs) and National Partnership (NP) payments being made by the Commonwealth Treasury to state treasuries, in a manner similar to arrangements for GST payments. These payments are received by Treasury on behalf of the Central Holding Authority and then on-passed to the relevant agencies as Commonwealth appropriation. Revenue in respect of appropriations is recognised in the period in which the Department gains control of the funds. Sale of Goods Revenue from the sale of goods is recognised (net of returns, discounts and allowances) when: the significant risks and rewards of ownership of the goods have transferred to the buyer; the Department retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be reliably measured; it is probable that the economic benefits associated with the transaction will flow to the Department; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. 09 PART 9: Financial Statements DLP ANNUAL REPORT 111

114 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 Rendering of Services Revenue from rendering services is recognised by reference to the stage of completion of the contract. The revenue is recognised when: the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and it is probable that the economic benefits associated with the transaction will flow to the entity. Interest Revenue Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset. Goods and Services Received Free of Charge Goods and services received free of charge are recognised as revenue when a fair value can be reliably determined and the resource would have been purchased if it had not been donated. Use of the resource is recognised as an expense. Disposal of Assets A gain or loss on disposal of assets is included as a gain or loss on the date control of the asset passes to the buyer, usually when an unconditional contract of sale is signed. The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal. Refer also to Note 5. Contributions of Assets Contributions of assets and contributions to assist in the acquisition of assets, being non-reciprocal transfers, are recognised, unless otherwise determined by Government, as gains when the Department obtains control of the asset or contribution. Contributions are recognised at the fair value received or receivable. (j) (k) Repairs and Maintenance Expense Funding is received for repairs and maintenance works associated with the Department s assets as part of output revenue. Costs associated with repairs and maintenance works on the Department s assets are expensed as incurred. Depreciation and Amortisation Expense Items of property, plant and equipment, including buildings but excluding land and road formation, have limited useful lives and are depreciated or amortised using the straight-line method over their estimated useful lives. Amortisation applies in relation to intangible non-current assets with limited useful lives and is calculated and accounted for in a similar manner to depreciation. The estimated useful lives for each class of asset are in accordance with the Treasurer s Directions and are determined as follows: Buildings years years Infrastructure Bridges Sealed pavement Unsealed pavement Road formation Street lights and traffic control systems 70 Years 40 Years 8 Years Infinite not depreciated Years 70 Years 40 Years 8 Years Infinite not depreciated Years Plant and Equipment years 2-15 Years Leased Plant and Equipment Lease term Lease term Heritage and Cultural Assets 100 Years 100 Years 1 Includes computer software, computer hardware and transport equipment DLP ANNUAL REPORT PART 9: Financial Statements 09

115 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 Assets are depreciated or amortised from the date of acquisition or from the time an asset is completed and held ready for use. (l) (m) (n) Interest Expense Interest expenses include interest and finance lease charges. Interest expenses are expensed in the period in which they are incurred. Cash and Deposits For the purposes of the Balance Sheet and the Cash Flow Statement, cash includes cash on hand, cash at bank and cash equivalents. Cash equivalents are highly liquid short-term investments that are readily convertible to cash. Cash at bank includes monies held in the Accountable Officer s Trust Account (AOTA) that are ultimately payable to the beneficial owner refer also to Note 21. Receivables Receivables include accounts receivable and other receivables and are recognised at fair value less any allowance for impairment losses. The allowance for impairment losses represents the amount of receivables the Department estimates are likely to be uncollectible and are considered doubtful. Analyses of the age of the receivables that are past due as at the reporting date are disclosed in an aging schedule under credit risk in Note 17 Financial Instruments. Reconciliation of changes in the allowance accounts is also presented. Accounts receivable are generally settled within 30 days and other receivables within 30 days. (o) (p) Advances and Investments Advances and Investments include the Home Building Certification Fund. In the Northern Territory, the Home Building Certification Fund (HBCF) Owner Builder Insurance is the mandatory insurance cover required under the Building Act and obtained through the Territory Insurance Office. This insurance policy provides cover to future owners of the home for the rectification of any non-compliant building work for a period of ten years from the completion of the building. Property, Plant and Equipment Acquisitions All items of property, plant and equipment with a cost, or other value, equal to or greater than $ are recognised in the year of acquisition and depreciated as outlined below. Items of property, plant and equipment below the $ threshold are expensed in the year of acquisition. The construction cost of property, plant and equipment includes the cost of materials and direct labour, and an appropriate proportion of fixed and variable overheads. Complex Assets Major items of plant and equipment comprising a number of components that have different useful lives, are accounted for as separate assets. The components may be replaced during the useful life of the complex asset. Subsequent Additional Costs Costs incurred on property, plant and equipment subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the Department in future years. Where these costs represent separate components of a complex asset, they are accounted for as separate assets and are separately depreciated over their expected useful lives. Construction (Work in Progress) As part of the financial management framework, the Department of Construction and Infrastructure is responsible for managing general government capital works projects on a whole of Government basis. Therefore appropriation for some capital works, in the Department s case (infrastructure headworks and transport asset projects) are provided directly to the Department of Construction and Infrastructure and the cost of construction work in progress is recognised as an asset of that Department. Once completed, works in progress (assets) are transferred to the agency. 09 PART 9: Financial Statements DLP ANNUAL REPORT 113

116 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 Road Networks capital works and associated cash to deliver these works is managed directly by our Department and project managed by Construction Division. Once completed, capital works assets are either capitalised to the agency s Fixed Asset Register to the extent they meet capitalisation criteria, expensed, or where undertaken for other parties such as Local Government or Councils are gifted as capital grants (for example, Commonwealth funded Black Spot works on Council roads). Land Under Roads Land Under roads is land roadways and road reserves including land under footpaths, nature strips and median strips. The Department has elected to recognise all land under roads in accordance with AASB 116 where all the asset recognition criteria have been met. (q) Revaluations and Impairment Revaluation of Assets Subsequent to initial recognition, assets belonging to the following classes of non-current assets are revalued with sufficient regularity to ensure that the carrying amount of these assets does not differ materially from their fair value at reporting date: land; buildings; infrastructure assets; heritage and cultural assets; Land has been revalued to Unimproved Capital Value (UCV) during Land will be revalued annually to UCV which is deemed to equate to fair value utilizing a three year rolling revaluation plan. Fair value is the amount for which an asset could be exchanged, or liability settled, between knowledgeable, willing parties in an arms-length transaction. The fair value of the Department s infrastructure assets is based on their depreciated replacement cost. Plant and equipment are stated at historical cost less depreciation, which is deemed to equate to fair value. The unique nature of some of the heritage and cultural assets may preclude reliable measurement. Such assets have not been recognised in the financial statements. Impairment of Assets An asset is said to be impaired when the asset s carrying amount exceeds its recoverable amount. Non-current physical and intangible agency assets are assessed for indicators of impairment on an annual basis. If an indicator of impairment exists, the Department determines the asset s recoverable amount. The asset s recoverable amount is determined as the higher of the asset s depreciated replacement cost and fair value less costs to sell. Any amount by which the asset s carrying amount exceeds the recoverable amount is recorded as an impairment loss. Impairment losses are recognised in the Comprehensive Operating Statement. They are disclosed as an expense unless the asset is carried at a revalued amount. Where the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus for that class of asset to the extent that an available balance exists in the asset revaluation surplus. In certain situations, an impairment loss may subsequently be reversed. Where an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount. A reversal of an impairment loss is recognised in the Comprehensive Operating Statement as income, unless the asset is carried at a revalued amount, in which case the impairment reversal results in an increase in the asset revaluation surplus. Note 15 provides additional information in relation to the asset revaluation surplus DLP ANNUAL REPORT PART 9: Financial Statements 09

117 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 (r) Assets Held for Sale Assets held for sale consist of those assets that management has determined are available for immediate sale in their present condition, and their sale is highly probably within the next twelve months. These assets are measured at the lower of the asset s carrying amount and fair value less costs to sell. These assets are not depreciated. Non-current assets held for sale have been recognised on the face of the financial statements as current assets. Refer to Note 9. (s) Leased Assets Leases under which the Department assumes substantially all the risks and rewards of ownership of an asset are classified as finance leases. Other leases are classified as operating leases. Finance Leases Finance leases are capitalised. A leased asset and a lease liability equal to the present value of the minimum lease payments are recognised at the inception of the lease. Lease payments are allocated between the principal component of the lease liability and the interest expense. Operating Leases Operating lease payments made at regular intervals throughout the term are expensed when the payments are due, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property. Lease incentives under an operating lease of a building or office space is recognised as an integral part of the consideration for the use of the leased asset. Lease incentives are to be recognised as a deduction of the lease expenses over the term of the lease. (t) (u) (v) Deposits Held Deposits Held includes the Accountable Officers Trust Account (AOTA), clearing monies, and non-government works, which consists of financial obligations payable within the next twelve months. The AOTA is for the receipt of monies to be held in trust in accordance with Section 7 of the Financial Management Act. Clearing monies are public monies held in transit. Non-Government works are transactions relating to a recoverable works project which will not become a Northern Territory Government asset upon completion. Payables Liabilities for accounts payable and other amounts payable are carried at cost, which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the Department. Accounts payable are normally settled within 30 days. Employee Benefits Provision is made for employee benefits accumulated as a result of employees rendering services up to the reporting date. These benefits include wages and salaries and recreation leave. Liabilities arising in respect of wages and salaries, recreation leave and other employee benefit liabilities that fall due within twelve months of reporting date are classified as current liabilities and are measured at amounts expected to be paid. Non-current employee benefit liabilities that fall due after twelve months of the reporting date are measured at present value, calculated using the Government long-term bond rate. No provision is made for sick leave, which is non-vesting, as the anticipated pattern of future sick leave to be taken is less than the entitlement accruing in each reporting period. Employee benefit expenses are recognised on a net basis in respect of the following categories: wages and salaries, non-monetary benefits, recreation leave, sick leave and other leave entitlements; and other types of employee benefits. As part of the financial management framework, the Central Holding Authority assumes the long service leave liabilities of Government agencies, including the Department of Lands and Planning and as such no long service leave liability is recognised in the Department s financial statements. 09 PART 9: Financial Statements DLP ANNUAL REPORT 115

118 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 (w) Superannuation Employees superannuation entitlements are provided through the: Northern Territory Government and Public Authorities Superannuation Scheme (NTGPASS); Commonwealth Superannuation Scheme (CSS); or non-government employee-nominated schemes for those employees commencing on or after 10 August The Department makes superannuation contributions on behalf of its employees to the Central Holding Authority or non-government employee-nominated schemes. Superannuation liabilities related to government superannuation schemes are held by the Central Holding Authority and as such are not recognised in the Department s financial statements. (x) Contributions by and Distributions to Government The Department may receive contributions from Government where the Government is acting as owner of the Department. Conversely, the Department may make distributions to Government. In accordance with the Financial Management Act and Treasurer s Directions, certain types of contributions and distributions, including those relating to administrative restructures, have been designated as contributions by, and distributions to, Government. These designated contributions and distributions are treated by the Department as adjustments to equity. The Statement of Changes in Equity provides additional information in relation to contributions by, and distributions to, Government. (y) Commitments Disclosures in relation to capital and other commitments, including lease commitments are shown at Note 18. Commitments are those contracted as at 30 June where the amount of the future commitment can be reliably measured DLP ANNUAL REPORT PART 9: Financial Statements 09

119 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June COMPREHENSIVE OPERATING STATEMENT BY OUTPUT GROUP Lands Planning Transport Statutory Body Total Note $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 INCOME Grants and subsidies revenue Current 1, , Capital , ,510 - Appropriation Output 27,681 28,771 11,822 15, , , , ,414 Commonwealth ,732 18, ,732 18,804 Sales of goods and services 2,325 2, ,987 8, ,363 10,824 Goods and services received free of charge 4 2,975 2, ,033 3, ,584 5,910 Gain on disposal of assets 5 3,091 8, ,091 8,300 Other income , ,468 2,314 TOTAL INCOME 37,631 42,655 12,461 15, , , , ,397 EXPENSES Employee expenses 16,235 15,265 5,152 4,747 24,103 22, ,224 43,174 Administrative expenses Purchases of goods and services 6 12,825 14,148 4,109 8,311 54,971 51, ,921 74,182 Repairs and maintenance 1,731 1,466 2,145 2, , , , ,210 Depreciation and amortisation 10, , ,800 36, ,720 37,210 Other administrative expenses 3,416 12, ,884 3, ,874 15,785 Grants and subsidies expenses Current ,433 2, ,722 2,949 Capital 1, ,367 3,969 2, ,925 8,640 Community service obligations ,161 4, ,161 4,316 TOTAL EXPENSES 37,346 44,872 12,006 21, , , , ,466 NET SURPLUS/(DEFICIT) 285 (2,217) 455 (5,401) (32,342) (51,451) (2) - (31,604) (59,069) OTHER COMPREHENSIVE INCOME Transfers From Reserve 8,147 13, ,147 13,413 Asset Revaluation Surplus 212,497 62, , ,497 64,742 TOTAL OTHER COMPREHENSIVE INCOME 220,644 75, , ,644 78,155 COMPREHENSIVE RESULT 220,929 73, (5,401) (32,342) (49,959) (2) - 189,040 19,086 This Comprehensive Operating Statement by output group is to be read in conjunction with the notes to the financial statements. 09 PART 9: Financial Statements DLP ANNUAL REPORT 117

120 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June $ 000 $ GOODS AND SERVICES RECEIVED FREE OF CHARGE Corporate and information services 7,584 5,910 Total Goods and Services Received Free of Charge 7,584 5, GAIN ON DISPOSAL OF ASSETS Net proceeds from the disposal of non-current assets 27,474 22,434 Less: Carrying value of non-current assets disposed (24,383) (14,134) Gain On The Disposal of Non-Current Assets 3,091 8,300 Includes the sales from Land Held for Sale under Other Assets. 6. PURCHASES OF GOODS AND SERVICES The net deficit has been arrived at after charging the following expenses: Goods and services expenses: Consultants (1) 4,184 7,554 Advertising (2) Marketing and promotion (3) 959 1,201 Document production Legal expenses (4) Recruitment (5) Training and study Official duty fares Travelling allowance Information technology charges 8,737 7,818 Survey, drafting and drilling 2,743 4,271 Motor vehicle expenses 1,209 1,148 Agency service arrangements bus contracts 38,776 30,224 (1) Includes marketing, promotion and IT consultants. (2) Does not include recruitment, advertising or marketing and promotion advertising. (3) Includes advertising for marketing and promotion but excludes marketing and promotion consultants expenses, which are incorporated in the consultants category. (4) Includes legal fees, claim and settlement costs. (5) Includes recruitment-related advertising costs. 7. CASH AND DEPOSITS Cash on hand Cash at bank 44,657 13,041 Total Cash and Deposits 44,686 13, DLP ANNUAL REPORT PART 9: Financial Statements 09

121 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June $ 000 $ RECEIVABLES Current Accounts receivable 8,055 2,039 Less: Allowance for impairment losses (410) (379) 7,645 1,660 GST receivables 5,327 5,660 Total Receivables 12,972 7, ASSETS HELD FOR SALE Land 11,073 34,225 Total Assets Held for Sale 11,073 34,225 Land held for sale consists of those assets which it has been determined are available for sale in their present condition, and their sale is highly probable within the next twelve months. 09 PART 9: Financial Statements DLP ANNUAL REPORT 119

122 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June $ 000 $ PROPERTY, PLANT AND EQUIPMENT Land At fair value (1) 525, ,114 Buildings At fair value 63,713 64,982 Less: Accumulated depreciation (35,996) (36,353) 27,717 28,629 Infrastructure At fair value (2) 3,962,683 3,874,727 Less: Accumulated depreciation (1,509,557) (1,469,381) 2,453,126 2,405,346 Construction (Work in Progress) At capitalised cost 238, ,554 Plant and Equipment At fair value 7,722 7,334 Less: Accumulated depreciation (4,596) (4,038) 3,126 3,296 Leased Plant and Equipment At capitalised cost Less: Accumulated depreciation (31) (31) - - Computer Software At capitalised cost 1,228 1,182 Less: Accumulated depreciation (1,051) (955) Computer Hardware At capitalised cost 1,507 1,525 Less: Accumulated depreciation (1,376) (1,329) Transport Equipment At capitalised cost Less: Accumulated depreciation (463) (438) Total Property, Plant and Equipment 3,248,188 2,903,409 Property, Plant and Equipment Valuations (1) Land assets are held at unimproved capital value (approximating fair value) with independent valuations determined by the Australian Valuation Office (AVO) obtained. The fair value of land is determined based on any existing restrictions on asset use. (2) The fair value of the agency s Infrastructure assets is based on their depreciated replacement cost. Impairment of Property, Plant and Equipment Agency property, plant and equipment assets were assessed for impairment as at 30 June No impairment adjustments were required as a result of this review DLP ANNUAL REPORT PART 9: Financial Statements 09

123 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June PROPERTY, PLANT AND EQUIPMENT (continued) 2012 Property, Plant and Equipment Reconciliations A reconciliation of the carrying amount of property, plant and equipment at the beginning and end of is set out below: Land Buildings Infrastructure Construction (Work in Progress) Plant and Equipment Computer Software Computer Hardware Transport Equipment Total $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 Carrying Amount as at 1 July ,114 28,629 2,405, ,554 3, ,903,409 Additions 3, ,465 Disposals (21,888) (21,888) Depreciation - (1,223) (39,669) - (584) (96) (116) (32) (41,720) Additions/(Disposals) from asset transfers (21,174) ,449 (91,153) (5) (24,572) Revaluation increment 229, ,944 Transfer to/from Assets held for sale 20, ,652 Other movements 41, , ,898 Carrying Amount as at 30 June ,162 27,717 2,453, ,739 3, ,248, PART 9: Financial Statements DLP ANNUAL REPORT 121

124 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June PROPERTY, PLANT AND EQUIPMENT (continued) 2011 Property, Plant and Equipment Reconciliations A reconciliation of the carrying amount of property, plant and equipment at the beginning and end of is set out below: Land Buildings Infrastructure Construction (Work in Progress) Plant and Equipment Computer Software Computer Hardware Transport Equipment Total $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 Carrying Amount as at 1 July ,207 24,372 2,309, ,113 3, ,775,624 Additions 1, , ,225 Disposals (9,385) (9,385) Depreciation - (1,305) (34,837) - (737) (82) (158) (89) (37,208) Additions/(Disposals) from asset transfers 5,387 3, ,980 (133,600) (14) 5,302 Revaluation increment 75,835 2, ,185 Transfer to/from Assets held for sale (32,734) (32,734) Other movements (9,600) (9,600) Carrying Amount as at 30 June ,114 28,629 2,405, ,554 3, ,903, DLP ANNUAL REPORT PART 9: Financial Statements 09

125 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June $ 000 $ HERITAGE AND CULTURAL ASSETS Carrying amount At fair value Less: Accumulated depreciation (17) (15) Carrying amount as at 30 June Reconciliation of movements Carrying amount at 1 July Depreciation (2) (2) Carrying amount as at 30 June Heritage and Cultural Assets Valuation The fair value of these assets was determined based on any existing restrictions on asset use. Where reliable market values were not available, the fair value of Agency assets was based on their depreciated replacement cost. Impairment of Heritage and Cultural Assets Agency heritage and cultural assets were assessed for impairment as at 30 June No impairment adjustments were required as a result of this review. 12. DEPOSITS HELD Current Deposits Held 1,577 2,074 Total Deposits Held 1,577 2, PAYABLES Accounts payable 2,701 2,265 Accrued expenses 14,629 12,753 Total Payables 17,330 15, PROVISIONS Current Employee benefits Recreation leave 3,831 3,369 Leave loading Recreation leave - Airfares Other current provisions Other provisions ,370 4,765 Non-Current Employee benefits Recreation leave 1,893 1,780 1,893 1,780 Total Provisions 7,263 6,545 The Department employed 497 full time employees as at 30 June 2012 (476 full time employees as at 30 June 2011). This includes NT Build employees and excludes GBD s. 09 PART 9: Financial Statements DLP ANNUAL REPORT 123

126 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June $ 000 $ RESERVES Asset Revaluation Surplus (i) Nature and purpose of the asset revaluation surplus The asset revaluation surplus includes the net revaluation increments and decrements arising from the revaluation of non-current assets. Impairment adjustments may also be recognised in the asset revaluation surplus. (ii) Movements in the asset revaluation surplus Balance as at 1 July 1,566,020 1,501,278 Increment land 229,944 75,835 Other - land (9,300) - Increment buildings - 2,063 Increment infrastructure Transfer to Accumulated Funds (8,147) (13,413) Net Movements 212,497 64,742 Balance as at 30 June 1,778,517 1,566, NOTES TO THE CASH FLOW STATEMENT Reconciliation of Cash The total of agency Cash and deposits of $44,686,000 recorded in the Balance Sheet is consistent with that recorded as Cash in the Cash Flow Statement. Reconciliation of Net Deficit to Net Cash from Operating Activities Net Deficit (31,604) (59,069) Non-cash items: Depreciation and amortisation 41,720 37,210 Asset write-offs/write-downs 87 9,747 Asset donations/gifts Gain on disposal of assets (3,091) (8,300) Capital Grant 5,206 2,546 Repairs and maintenance/minor New Works 3,889 1,310 Changes in assets and liabilities: Decrease/(Increase) in receivables (5,652) (996) Decrease/(Increase) in prepayments (11) (6) (Decrease)/Increase in payables 223 6,671 (Decrease)/Increase in provision for employee benefits (Decrease)/Increase in other provisions Net Cash from Operating Activities 11,544 (10,591) DLP ANNUAL REPORT PART 9: Financial Statements 09

127 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June FINANCIAL INSTRUMENTS A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments held by the Department include cash and deposits, receivables, payables and finance leases. The Department has limited exposure to financial risks as discussed below. (a) Categorisation of Financial Instruments The carrying amounts of the Department s financial assets and liabilities by category are disclosed in the table below $ 000 $ 000 Financial Assets Cash and deposits 44,686 13,070 Loans and receivables 12,074 5,910 Financial Liabilities Fair value through profit or loss (FVTPL): Designated as at FVTPL 18,688 16,882 (b) Credit Risk The Department has limited credit risk exposure (risk of default). In respect of any dealings with organisations external to Government, the Department has adopted a policy of only dealing with credit worthy organisations and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults. The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents the Department s maximum exposure to credit risk without taking account of the value of any collateral or other security obtained. 09 PART 9: Financial Statements DLP ANNUAL REPORT 125

128 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June FINANCIAL INSTRUMENTS (continued) Receivables Receivable balances are monitored on an ongoing basis to ensure that exposure to bad debts is not significant. A reconciliation and aging analysis of receivables is presented below. Aging of Receivables Aging of Impaired Receivables Net Receivables $ 000 $ 000 $ Not overdue 7,189-7,189 Overdue for less than 30 days Overdue for 30 to 60 days Overdue for more than 60 days 714 (410) 304 Total 8,055 (410) 7,645 Reconciliation of the Allowance for Impairment Losses Opening 379 Written off during the year (112) Increase in allowance recognised in profit or loss 143 Total Not overdue Overdue for less than 30 days Overdue for 30 to 60 days Overdue for more than 60 days 1,194 ( Total 2,039 (379) 1,660 Reconciliation of the Allowance for Impairment Losses Opening 272 Written off during the year (8) Increase in allowance recognised in profit or loss 115 Total 379 (c) Liquidity Risk Liquidity risk is the risk that the Department will not be able to meet its financial obligations as they fall due. The Department s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when they fall due. The following tables detail the Department s remaining contractual maturity for its financial assets and liabilities. It should be noted that these values are undiscounted, and consequently totals may not reconcile to the carrying amounts presented in the Balance Sheet DLP ANNUAL REPORT PART 9: Financial Statements 09

129 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June FINANCIAL INSTRUMENTS (continued) 2012 Maturity analysis for financial assets and liabilities Variable Interest Less than a Year Fixed Interest Rate 1 to 5 Years More than 5 Years Non Interest Bearing Total Weighted Average $ 000 $ 000 $ 000 $ 000 $ 000 % Assets Cash and deposits ,686 44,686 Receivables ,645 7,645 Advances and Investments 4, , % Total Financial Assets 4, ,366 56, % Liabilities Deposits held ,577 1,577 Payables ,330 17,330 Total Financial Liabilities ,907 18, Maturity analysis for financial assets and liabilities Variable Interest Less than a Year Fixed Interest Rate 1 to 5 Years More than 5 Years Non Interest Bearing Total Weighted Average $ 000 $ 000 $ 000 $ 000 $ 000 % Assets Cash and deposits ,070 13,070 Receivables ,660 1,660 Advances and Investment 4, , % Total Financial Assets 4, ,754 18, % Liabilities Deposits held ,074 2,074 Payables ,018 15,018 Total Financial Liabilities ,092 17,092 (d) Market Risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. It comprises interest rate risk, price risk and currency risk. (i) Interest Rate Risk The Department of Lands and Planning is not exposed to interest rate risk on Department financial assets and financial liabilities as they are non interest bearing. (ii) Price Risk The Department of Lands and Planning is not exposed to price risk as the Department does not hold any financial instruments impacted by price risk. 09 PART 9: Financial Statements DLP ANNUAL REPORT 127

130 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June FINANCIAL INSTRUMENTS (continued) (e) (iii) Currency Risk The Department of Lands and Planning is not exposed to currency risk as the Department does not hold borrowings denominated in foreign currencies or transactional currency exposures arising from purchases in a foreign currency. Net Fair Value The fair value of financial instruments is estimated using various methods. These methods are classified into the following levels: Level 1 fair value is calculated using quoted prices in active markets. Instruments whose carrying amount is deemed to be equal to its fair value qualify for this level of classification. Level 2 to be used for those instruments that cannot be classified as either Level 1 or Level 3. Level 3 fair value is estimated using inputs other than quoted market data, for example, net present value Total Carrying Amount Net Fair Value Level 1 Net Fair Value Level 2 Net Fair Value Level 3 Net Fair Value Total $ 000 $ 000 $ 000 $ 000 $ 000 Financial Assets Cash and deposits 44,686-44,686-44,686 Receivables 7,645-7,645-7,645 Advances and investments 4,429-4,429-4,429 Total Financial Assets 56,760-56,760-56,760 Financial Liabilities Deposits held 1,577-1,577-1,577 Payables 17,330-17,330-17,330 Total Financial Liabilities 18,907-18,907-18, Total Carrying Amount Net Fair Value Level 1 Net Fair Value Level 2 Net Fair Value Level 3 Net Fair Value Total $ 000 $ 000 $ 000 $ 000 $ 000 Financial Assets Cash and deposits 13,070-13,070-13,070 Receivables 1,660-1,660-1,660 Advances and investments 4,250-4,250-4,250 Total Financial Assets 18,980-18,980-18,980 Financial Liabilities Deposits held 2,074-2,074-2,074 Payables 15,018-15,018-15,018 Total Financial Liabilities 17,092-17,092-17,092 The net fair value of financial instruments being cash and deposits, receivables, advances and investments cannot be classified into Level 1 or 3 as no active market exists. The net fair value of financial liabilities being deposits held and payables cannot be classified into Level 1 or 3 as no active market exists DLP ANNUAL REPORT PART 9: Financial Statements 09

131 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June $ 000 $ COMMITMENTS (i) Capital Expenditure Commitments Capital Works Capital expenditure commitments are primarily in relation to the construction of road networks. Capital expenditure commitments contracted for at balance date but not recognised as liabilities are payable as follows: Within one year 22,694 45,539 Later than one year and not later than five years 9,269 18,600 Later than five years - - (ii) Other Expenditure Commitments Other non-cancellable expenditure commitments not recognised as liabilities are payable as follows: 31,963 64,139 Within one year 37, Later than one year and not later than five years 142,474 - Later than five years 18, CONTINGENT LIABILITIES AND CONTINGENT ASSETS 197, (a) Contingent Liabilities The Department of Lands and Planning has entered into agreements which contain indemnity clauses. The contingent liabilities arising from the indemnities are unquantifiable, but expected to be immaterial. However, for all the events that would give rise to the liabilities the Department has comprehensive risk management procedures in place. Legal proceedings or disputes in which the Department is a party are not separately disclosed. Due to the wide variety and nature of individual cases, and the uncertainty of any potential liability means that no value can be attributed to individual cases until such time as the courts make a decision so as to not prejudice the outcome of the proceeding or dispute. (b) Contingent Assets The Department of Lands and Planning had no contingent assets as at 30 June 2012 or 30 June EVENTS SUBSEQUENT TO BALANCE DATE No events have arisen between the end of the financial year and the date of this report that require an adjustment to, or disclosure in these financial statements. 21. ACCOUNTABLE OFFICER S TRUST ACCOUNT In accordance with section 7 of the Financial Management Act, an Accountable Officer s Trust Account has been established for the receipt of money to be held in trust. A summary of activity is shown below: Nature of Trust Money Opening Balance Receipts Payments Closing Balance 1 July June 2012 $ 000 $ 000 $ 000 $ 000 Retention/Security deposits (175) - 4 (171) Surveyors Board (35) (12) - (47) Total (210) (12) 4 (218) 09 PART 9: Financial Statements DLP ANNUAL REPORT 129

132 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June WRITE-OFFS, POSTPONEMENTS, WAIVERS, GIFTS AND EX GRATIA PAYMENTS Agency Agency Territory Items Territory Items 2012 $ 000 No. of Trans $ 000 No. of Trans $ 000 No. of Trans $ 000 No. of Trans. Write-offs, Postponements and Waivers Under the Financial Management Act Represented by: Irrecoverable amounts payable to the Territory or an agency written off Losses or deficiencies of money written off Total Written Off, Postponed and Waived by Delegates Amounts written off, postponed and waived by the Treasurer Irrecoverable amounts payable to the Territory or an agency written off Losses or deficiencies of money written off Public property written off Waiver or postponement of right to receive or recover money or property Total Written Off, Postponed and Waived by the Treasurer Write-offs, Postponements and Waivers Authorised Under Other Legislation Gifts Under the Financial Management Act - Internal Gifts Under the Financial Management Act - External Ex Gratia Payments Under the Financial Management Act DLP ANNUAL REPORT PART 9: Financial Statements 09

133 Department of Lands and Planning NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June SCHEDULE OF TERRITORY ITEMS The following Territory items are managed by the Department on behalf of the Government and are recorded in the Central Holding Authority (refer Note 2(c)) $ 000 $ 000 TERRITORY INCOME AND EXPENSES Income Taxation revenue 30,641 28,912 Grants and subsidies revenue Capital 5,903 5,098 Fees from regulatory services 7,438 7,552 Royalties and rents 2,843 2,247 Other income 2,543 1,234 Total Income 49,368 45,043 Expenses Central Holding Authority income transferred 49,368 45,043 Total Expenses 49,368 45,043 Territory Income less Expenses - - TERRITORY ASSETS AND LIABILITIES Assets Other receivables Total Assets Liabilities Central Holding Authority income payable Total Liabilities Net Assets PART 9: Financial Statements DLP ANNUAL REPORT 131

134 Darwin Bus Service FINANCIAL REPORT For the year ended 30 June 2012 FINANCIAL STATEMENT OVERVIEW Darwin Bus Service (DBS) is a Government Business Division operating the government bus fleet providing scheduled urban and school bus services for the greater Darwin area. Services are provided for special events including the V8 Super Cars, Arafura Games, Darwin Cup Carnival, Royal Darwin Show and Christmas / New Year activities. All services are provided under a service level agreement with the Public Transport Division (PTD) of the Department of Lands and Planning. This agreement is currently under review and new arrangements are expected to be implemented in the financial year. Financial Performance The financials for reflect an operating surplus before tax of $1.03 million. This was predominantly due to an increase in sales of goods and services revenue as a result of a general increase in services provided. The net operating result after tax was $ , an improvement on the budget by $ Total income was 2.9% higher than the revised budget and total expenses before income tax was 2.7% less than the revised budget. Operating Statement Summary Original Budget Revised Budget Change Actual Variance $ 000 $ 000 % $ 000 % Revenue Sales of goods and services 7,961 8, , Interest revenue (39.5) 140 (1.4) Gain/(Loss) on disposal of assets (39.3) Other revenue Total income 8,580 8, , Expenses Operating expenses 8,019 8, ,211 (2.7) Total expenses 8,019 8, ,211 (2.7) Income tax expense (3.5) Net operating result (4.1) DLP ANNUAL REPORT PART 9: Financial Statements 09

135 Darwin Bus Service FINANCIAL REPORT For the year ended 30 June 2012 Operating Income Total operating income for was $9.2 million, an increase of $ over and higher than the revised budget by $ Revenue is raised through the service level agreement with the Public Transport Division of the Department of Lands and Planning and is the main source of income for DBS. In , there was a general increase in services provided as a result of an increase in market growth. 2% 1% 5% Sales of goods and services $8.5m Interest revenue $0.14m 92% Gain on disposal of assets $0.12m Other revenue $0.47m Operating Expenses Total operating expenses for was $8.2 million. Employee expenses of $4.3 million constitute the greatest proportion of this cost, followed by fleet operating expenses of $2.1 million. 9% 3% 10% Employee expenses $4.3m Fleet operating $2.1m 52% Depreciation $0.8m Purchases of G&S $0.7m 26% Other operating $0.3m The below table summarises expenditure trends by category. There was a small decline in expenditure during the year of 1% (in contrast to an increase of 5.1% in ). During : employee expenses increased by $ representing a 2.9% increase when compared to the previous year. The increase is the result of the enterprise bargaining agreement salary increases and overtime paid to bus drivers. other operating expenses increased by $ from , primarily due to the increase in Corporate services costs provided by external agencies. 09 PART 9: Financial Statements DLP ANNUAL REPORT 133

136 Darwin Bus Service FINANCIAL REPORT For the year ended 30 June 2012 Expenditure Trend Actual Change Actual Change Actual Change $ 000 % $ 000 % $ 000 % Operating expenses Employee expenses 4, , , Purchases of goods and services 784 (12.7) 721 (8.0) 709 (1.7) Fleet operating expenses 2, , ,142 (10.1) Depreciation 862 (1.0) (8.9) Other operating expenses 148 (2.0) Total 7, , ,211 (1.0) Income tax expense 183 (31.5) Balance Sheet The Balance Sheet shows the government business division s net worth and financial position. The largest component of DBS s asset base is transport equipment (the bus fleet) at a total value of $6.4 million, in addition to cash deposits of $3.9 million. DBS s total assets of $11.8 million as at 30 June 2012, represents an increase of $ from , as a result of an increase in cash held. DBS held total liabilities of $1.5 million at 30 June 2012, an increase of $ from reflecting an increase in payables and provisions. In DBS continued to maintain a strong financial position, with liabilities representing less than 13% of total assets. Balance Sheet Trend ,400 11,080 10,934 11,192 11, $ 000s Total assets Total liabilities ,243 1,613 1,255 1,251 1, Years DLP ANNUAL REPORT PART 9: Financial Statements 09

137 Darwin Bus Service FINANCIAL REPORT For the year ended 30 June 2012 Statement of Cash Flow The statement of cash flows represents cash received and applied during the year from operating, investing and financing activities. The table below summarises the movement of cash over the year Actual Actual Variance Variance $ 000 $ 000 $ 000 % Cash Flow Cash at beginning of year 3,982 2,999 (983) (24.7) Cash received 9,265 10, Less cash spent 10,248 9, (9.1) Cash at end of reporting period 2,999 3, Cash at bank of $3.9 million at the end of was $ higher than the previous year. The cash and deposits held will be utilised in to replenish the bus fleet and meet DBS s other obligations. 09 PART 9: Financial Statements DLP ANNUAL REPORT 135

138

139 Darwin Bus Service FINANCIAL REPORT CERTIFICATION OF THE FINANCIAL STATEMENTS We certify that the attached financial statements for the Darwin Bus Service have been prepared from proper accounts and records in accordance with the prescribed format, the Financial Management Act and Treasurer s Directions. We further state that the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement, and notes to and forming part of the financial statements, presents fairly the financial performance and cash flows for the year ended 30 June 2012 and the financial position on that date. At the time of signing, we are not aware of any circumstances that would render the particulars included in the financial statements misleading or inaccurate... Mike Burgess Jasmin Aldenhoven Chief Executive Chief Financial Officer 18 September September PART 9: Financial Statements DLP ANNUAL REPORT 137

140 Darwin Bus Service COMPREHENSIVE OPERATING STATEMENT For the year ended 30 June 2012 Note 2012 $ $ 000 Income Sales of goods and services 8,510 8,242 Interest revenue Gain on disposal of assets Other income TOTAL INCOME 9,238 9,044 EXPENSES Employee expenses 4,291 4,167 Administrative expenses Purchases of goods and services Fleet operating expenses 4 2,142 2,382 Depreciation and amortisation Other operating expenses TOTAL EXPENSES 8,211 8,295 SURPLUS BEFORE INCOME TAX 1, INCOME TAX EXPENSE Income tax expense TOTAL INCOME TAX EXPENSE NET SURPLUS COMPREHENSIVE RESULT The Comprehensive Operating Statement is to be read in conjunction with the notes to the financial statements DLP ANNUAL REPORT PART 9: Financial Statements 09

141 Darwin Bus Service BALANCE SHEET As at 30 June 2012 Note 2012 $ $ 000 ASSETS Current Assets Cash and deposits 6 3,932 2,999 Receivables Inventories Prepayments Total Current Assets 5,365 4,505 Non-Current Assets Property, plant and equipment 9 6,405 6,687 Total Non-Current Assets 6,405 6,687 TOTAL ASSETS 11,770 11,192 LIABILITIES Current Liabilities Payables Provisions 11 1, Total Current Liabilities 1,299 1,056 Non-Current Liabilities Provisions Total Non-Current Liabilities TOTAL LIABILITIES 1,469 1,251 NET ASSETS 10,301 9,941 EQUITY Capital Accumulated funds 9,954 9,594 TOTAL EQUITY 10,301 9,941 The Balance Sheet is to be read in conjunction with the notes to the financial statements. 09 PART 9: Financial Statements DLP ANNUAL REPORT 139

142 Darwin Bus Service STATEMENT OF CHANGES IN EQUITY For the year ended 30 June NOTE Equity at 1 July $ 000 Comprehensive result $ 000 Transactions with owners in their capacity as owners $ 000 Equity at 30 June Accumulated Funds 9, ,313 Dividends paid - - (359) (359) $ 000 9, (359) 9,954 Capital - Transactions with Owners Total Equity at End of Financial Year 9, (359) 10, Accumulated Funds 9, ,856 Dividends paid - - (262) (262) 9, (262) 9,594 Capital - Transactions with Owners Total Equity at End of Financial Year 9, (262) 9,941 This Statement of Changes in Equity is to be read in conjunction with the notes to the financial statements DLP ANNUAL REPORT PART 9: Financial Statements 09

143 Darwin Bus Service CASH FLOW STATEMENT For the year ended 30 June 2012 NOTE 2012 $ $ 000 CASH FLOWS FROM OPERATING ACTIVITIES Operating Receipts Receipts from sales of goods and services 9,991 9,033 Interest received Total Operating Receipts 10,131 9,177 Operating Payments Payments to employees (4,339) (4,199) Payments for goods and services (3,971) (4,120) Income tax paid (225) (183) Total Operating Payments (8,535) (8,502) Net Cash From Operating Activities 12 1, CASH FLOWS FROM INVESTING ACTIVITIES Investing Receipts Proceeds from asset sales Total Investing Receipts Investing Payments Purchases of assets (517) (1,532) Total Investing Payments (517) (1,532) Net Cash Used In Investing Activities (401) (1,444) CASH FLOWS FROM FINANCING ACTIVITIES Financing Payments Dividends paid (262) (214) Total Financing Payments (262) (214) Net Cash Used In Financing Activities (262) (214) Net increase/(decrease) in cash held 933 (983) Cash at beginning of financial year 2,999 3,982 CASH AT END OF FINANCIAL YEAR 6 3,932 2,999 The Cash Flow Statement is to be read in conjunction with the notes to the financial statements. 09 PART 9: Financial Statements DLP ANNUAL REPORT 141

144 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 INDEX OF NOTES TO THE FINANCIAL STATEMENTS 1. Objectives and Funding 2. Statement of Significant Accounting Policies INCOME 3. Gain on Disposal of Assets EXPENSES 4. Purchases of Goods and Services 5. Income Tax Expense ASSETS 6. Cash and Deposits 7. Receivables 8. Inventories 9. Property, Plant and Equipment LIABILITIES 10. Payables 11. Provisions OTHER DISCLOSURES 12. Notes to the Cash Flow Statement 13. Financial Instruments 14. Commitments 15. Contingent Liabilities and Contingent Assets 16. Events Subsequent to Balance Date 17. Write-offs, Postponements, Waivers, Gifts and Ex Gratia Payments DLP ANNUAL REPORT PART 9: Financial Statements 09

145 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June OBJECTIVES AND FUNDING Darwin Bus Service has been determined by the Treasurer to be a Government Business Division (GBD) as specified in the Financial Management Act. Unlike general government agencies Darwin Bus Service does not receive direct appropriation for its commercial activities. Instead, operating revenue is primarily generated from the provision of services to the Public Transport Division (PTD) of the Department of Lands and Planning. Together with other contractors, it provides an operational capacity to assist the PTD to meet the community needs for public transport in the greater Darwin area, including the delivery of school and special events bus services. 2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Accounting The financial statements have been prepared in accordance with the requirements of the Financial Management Act and related Treasurer s Directions. The Financial Management Act requires Darwin Bus Service to prepare financial statements for the year ended 30 June based on the form determined by the Treasurer. The form of the financial statements is to include: (i) (ii) (iii) (iv) (v) (vi) a Certification of the Financial Statements; a Comprehensive Operating Statement; a Balance Sheet; a Statement of Changes in Equity; a Cash Flow Statement; and applicable explanatory notes to the financial statements. The financial statements have been prepared using the accrual basis of accounting, which recognises the effect of financial transactions and events when they occur, rather than when cash is paid out or received. As part of the preparation of the financial statements, all intra-agency transactions and balances have been eliminated. Except where stated, the financial statements have also been prepared in accordance with the historical cost convention. The form of Darwin Bus Service s financial statements is also consistent with the requirements of Australian Accounting Standards. The effects of all relevant new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are effective for the current annual reporting period have been evaluated. The Standards and Interpretations and their impacts are: AASB 124 Related Party Disclosures (December 2009), AASB Amendments to Australian Accounting Standards [AASB 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 &1052] The Standards amend the requirements of the previous version of AASB 124 to clarify the definition of a related party, provide a partial exemption from related party disclosure requirements for government-related entities and include an explicit requirement to disclose commitments involving related parties. The Standards do not impact the financial statements. AASB Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1, 7, 101 & 134 and Interpretation 13] The Standard amends a number of pronouncements as a result of the IASB s cycle of annual improvements. Key amendments include clarification of content of statement of changes in equity (AASB 101) and financial instrument disclosures (AASB 7). The Standard does not impact the financial statements. 09 PART 9: Financial Statements DLP ANNUAL REPORT 143

146 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 AASB Amendments to Australian Accounting Standards Disclosures on Transfers of Financial Assets [AASB 1 & 7] The Standard makes amendments to AASB 7 Financial Instruments: Disclosures resulting from the IASB s comprehensive review of off balance sheet activities. The amendments introduce additional disclosures, designed to allow users of financial statements to improve their understanding of transfer transactions of financial assets, including understanding the possible effects of any risks that may remain with the entity that transferred the assets. The Standard does not impact the financial statements. (b) Australian Accounting Standards and Interpretations Issued but not yet Effective At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective. Standard/Interpretation Summary Effective for annual reporting periods beginning on or after Impact on financial statements AASB 9 Financial Instruments (Dec 2010), AASB Amendments to Australian Accounting Standards arising from AASB 9 (Dec 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127] AASB 13 Fair Value Measurement, AASB Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7, 9, , , 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132] AASB Amendments to Australian Accounting Standards Presentation of Items of Other Comprehensive Income [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049] AASB 9 incorporates revised requirements for the classification and measurement of financial instruments resulting from the IASB s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement). Replaces the guidance on fair value measurement in existing AASB accounting literature with a single standard. The Standard defines fair value, provides guidance on how to determine fair value and requires disclosures about fair value measurements. Requires entities to group items presented in other comprehensive income on the basis of whether they are potentially reclassifiable to profit or loss subsequently. 1 Jan 2013 Minimal effect on the financial statements. 1 Jan 2013 Minimal effect on the financial statements. 1 July 2012 Minimal effect on the financial statements. (c) Central Holding Authority The Central Holding Authority is the parent body that represents the Government s ownership interest in Government-controlled entities. The Central Holding Authority also records all Territory items, such as income, expenses, assets and liabilities controlled by the Government and managed by agencies on behalf of the Government. The main Territory item is Territory income, which includes taxation and royalty revenue, Commonwealth general purpose funding (such as GST revenue), fines, and statutory fees and charges. The Central Holding Authority also holds certain Territory assets not assigned to agencies as well as certain Territory liabilities that are not practical or effective to assign to individual agencies such as unfunded superannuation and long service leave. The Central Holding Authority recognises and records all Territory items, and as such, these items are not included in Darwin Bus Service s financial statements DLP ANNUAL REPORT PART 9: Financial Statements 09

147 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 (d) (e) (f) (g) Comparatives Where necessary, comparative information for the financial year has been reclassified to provide consistency with current year disclosures. Presentation and Rounding of Amounts Amounts in the financial statements and notes to the financial statements are presented in Australian dollars and have been rounded to the nearest thousand dollars, with amounts of $500 or less being rounded down to zero. Changes in Accounting Policies There have been no changes to accounting policies adopted in as a result of management decisions. Accounting Judgements and Estimates The preparation of the financial report requires the making of judgements and estimates that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgements and estimates that have significant effects on the financial statements are disclosed in the relevant notes to the financial statements. Notes that include significant judgements and estimates are: Employee Benefits Note 2(t) and Note 11: Non-current liabilities in respect of employee benefits are measured as the present value of estimated future cash outflows based on the appropriate Government bond rate, estimates of future salary and wage levels and employee periods of service. Depreciation and Amortisation Note 2(j), Note 9: Property, Plant and Equipment. Financial Instruments Note 13 (h) Goods and Services Tax Income, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except where the amount of GST incurred on a purchase of goods and services is not recoverable from the Australian Tax Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the Balance Sheet. Cash flows are included in the Cash Flow Statement on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable or payable unless otherwise specified. (i) Income Recognition Income encompasses both revenue and gains. Income is recognised at the fair value of the consideration received, exclusive of the amount of goods and services tax (GST). Exchanges of goods or services of the same nature and value without any cash consideration being exchanged are not recognised as income. 09 PART 9: Financial Statements DLP ANNUAL REPORT 145

148 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 Rendering of Services Revenue from rendering services is recognised by reference to the stage of completion of the contract. The revenue is recognised when: the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and it is probable that the economic benefits associated with the transaction will flow to the entity. Interest Revenue Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset. Disposal of Assets A gain or loss on disposal of assets is included as a gain or loss on the date control of the asset passes to the buyer, usually when an unconditional contract of sale is signed. The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal. Refer also to Note 3. (j) Depreciation and Amortisation Expense Items of property, plant and equipment, including buildings but excluding land, have limited useful lives and are depreciated or amortised using the straight-line method over their estimated useful lives. Amortisation applies in relation to intangible non-current assets with limited useful lives and is calculated and accounted for in a similar manner to depreciation. The estimated useful lives for each class of asset are in accordance with the Treasurer s Directions and are determined as follows: Transport Equipment 15 Years 15 Years Plant and Equipment 5-10 Years 5-10 Years Computer Equipment and Software 3-10 Years 3-10 Years Assets are depreciated or amortised from the date of acquisition or from the time an asset is completed and held ready for use. (k) (l) (m) Taxation Darwin Bus Service is required to pay income tax on its accounting profit at the company tax rate of 30 per cent in accordance with the requirements of the Treasurer s Directions and the NT Tax Equivalents Scheme. Cash and Deposits For the purposes of the Balance Sheet and the Cash Flow Statement, cash includes cash on hand, cash at bank and cash equivalents. Cash equivalents are highly liquid short-term investments that are readily convertible to cash. Inventories Inventories include assets held either for sale (general inventories) or for distribution at no or nominal consideration in the ordinary course of business operations. General inventories are valued at the lower of cost and net realisable value, while those held for distribution are carried at the lower of cost and current replacement cost. Cost of inventories includes all costs associated with bringing the inventories to their present location and condition. When inventories are acquired at no or nominal consideration, the cost will be the current replacement cost at date of acquisition. The cost of inventories are assigned using a mixture of first-in, first out or weighted average cost formula or using specific identification of their individual costs. Inventory held for distribution are regularly assessed for obsolescence and loss DLP ANNUAL REPORT PART 9: Financial Statements 09

149 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 (n) Receivables Receivables include accounts receivable and other receivables and are recognised at fair value less any allowance for impairment losses. The allowance for impairment losses represents the amount of receivables that Darwin Bus Service estimates are likely to be uncollectible and are considered doubtful. Analyses of the age of the receivables that are past due as at the reporting date are disclosed in an aging schedule under credit risk in Note 13 Financial Instruments. Reconciliation of changes in the allowance accounts is also presented. Accounts receivable are generally settled within 30 days and other receivables within 30 days. (o) Property, Plant and Equipment Acquisitions All items of property, plant and equipment with a cost, or other value, equal to or greater than $10,000 are recognised in the year of acquisition and depreciated as outlined below. Items of property, plant and equipment below the $10,000 threshold are expensed in the year of acquisition. The construction cost of property, plant and equipment includes the cost of materials and direct labour, and an appropriate proportion of fixed and variable overheads. Complex Assets Major items of plant and equipment comprising a number of components that have different useful lives, are accounted for as separate assets. The components may be replaced during the useful life of the complex asset. Subsequent Additional Costs Costs incurred on property, plant and equipment subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to Darwin Bus Service in future years. Where these costs represent separate components of a complex asset, they are accounted for as separate assets and are separately depreciated over their expected useful lives. (p) Revaluations and Impairment Impairment of Assets An asset is said to be impaired when the asset s carrying amount exceeds its recoverable amount. Non-current physical Darwin Bus Service assets are assessed for indicators of impairment on an annual basis. If an indicator of impairment exists, the Darwin Bus Service determines the asset s recoverable amount. The asset s recoverable amount is determined as the higher of the asset s depreciated replacement cost and fair value less costs to sell. Any amount by which the asset s carrying amount exceeds the recoverable amount is recorded as an impairment loss. Impairment losses are recognised in the Comprehensive Operating Statement. They are disclosed as an expense unless the asset is carried at a revalued amount. Where the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus for that class of asset to the extent that an available balance exists in the asset revaluation surplus. In certain situations, an impairment loss may subsequently be reversed. Where an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount. A reversal of an impairment loss is recognised in the Comprehensive Operating Statement as income, unless the asset is carried at a revalued amount, in which case the impairment reversal results in an increase in the asset revaluation surplus. 09 PART 9: Financial Statements DLP ANNUAL REPORT 147

150 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 (q) Assets Held for Sale Assets held for sale consists of those assets which management has determined are available for immediate sale in their present condition, and their sale is highly probably within the next twelve months. These assets are measured at the lower of the asset s carrying amount and fair value less costs to sell. These assets are not depreciated. Non-current assets held for sale have been recognised on the face of the financial statements as current assets. (r) Leased Assets Leases under which Darwin Bus Service assumes substantially all the risks and rewards of ownership of an asset are classified as finance leases. Other leases are classified as operating leases. Finance Leases Finance leases are capitalised. A leased asset and a lease liability equal to the present value of the minimum lease payments are recognised at the inception of the lease. Lease payments are allocated between the principal component of the lease liability and the interest expense. Operating Leases Operating lease payments made at regular intervals throughout the term are expensed when the payments are due, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property. Lease incentives under an operating lease of a building or office space is recognised as an integral part of the consideration for the use of the leased asset. Lease incentives are to be recognised as a deduction of the lease expenses over the term of the lease. (s) (t) Payables Liabilities for accounts payable and other amounts payable are carried at cost which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the agency. Accounts payable are normally settled within 30 days. Employee Benefits Provision is made for employee benefits accumulated as a result of employees rendering services up to the reporting date. These benefits include wages and salaries and recreation leave. Liabilities arising in respect of wages and salaries and recreation leave and other employee benefit liabilities that fall due within twelve months of reporting date are classified as current liabilities and are measured at amounts expected to be paid. Non-current employee benefit liabilities that fall due after twelve months of the reporting date are measured at present value, calculated using the Government long term bond rate. No provision is made for sick leave, which is non-vesting, as the anticipated pattern of future sick leave to be taken is less than the entitlement accruing in each reporting period. Employee benefit expenses are recognised on a net basis in respect of the following categories: wages and salaries, non-monetary benefits, recreation leave, sick leave and other leave entitlements; and other types of employee benefits. As part of the Financial Management Framework, the Central Holding Authority assumes the long service leave liabilities of Government agencies, including Darwin Bus Service and as such no long service leave liability is recognised in Darwin Bus Service s financial statements DLP ANNUAL REPORT PART 9: Financial Statements 09

151 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2012 (u) Superannuation Employees superannuation entitlements are provided through the: NT Government and Public Authorities Superannuation Scheme (NTGPASS); Commonwealth Superannuation Scheme (CSS); or non-government employee nominated schemes for those employees commencing on or after 10 August Darwin Bus Service makes superannuation contributions on behalf of its employees to the Central Holding Authority or non-government employee nominated schemes. Superannuation liabilities related to government superannuation schemes are held by the Central Holding Authority and as such are not recognised in Darwin Bus Service s financial statements. (v) (w) Dividend Darwin Bus Service is required to remit a dividend in accordance with the Northern Territory Government s dividend policy which is 50 per cent of net profit after tax. Commitments Disclosures in relation to capital and other commitments, including lease commitments are shown at Note 14. Commitments are those contracted as at 30 June where the amount of the future commitment can be reliably measured. 09 PART 9: Financial Statements DLP ANNUAL REPORT 149

152 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June $ $ GAIN ON DISPOSAL OF ASSETS Net proceeds from the disposal of non-current assets Less: Carrying value of non-current assets disposed - - Gain on the disposal of non-current assets PURCHASES OF GOODS AND SERVICES The net surplus has been arrived at after charging the following expenses: Goods and services expenses: Fleet operating expenses comprising Repairs and maintenance 989 1,325 Fuel 1,115 1,024 Other Rent Corporate support by external agencies Insurance Information technology charges Audit fees Training and Study Consultants (1) 30 6 Official duty fares 3 2 Recruitment (2) - 1 Travelling allowance 1 - (1) Includes marketing, promotion and IT consultants. (2) Includes recruitment-related advertising costs. 5. INCOME TAX EXPENSE The prima facie income tax expense on pre-tax accounting surplus from operations reconciles to the income tax expense in the financial statement as follows; Net surplus before income tax 1, Income tax expense calculated at 30% Total Income Tax Expense CASH AND DEPOSITS Cash on hand 2 2 Cash at bank 3,930 2,997 Total Cash and Deposits 3,932 2, DLP ANNUAL REPORT PART 9: Financial Statements 09

153 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June $ $ RECEIVABLES Current Accounts receivable Interest receivables GST receivables - 35 Total Receivables INVENTORIES General Inventories At cost Total Inventories PROPERTY, PLANT AND EQUIPMENT Transport Equipment At capitalised cost 15,167 15,421 Less: Accumulated depreciation (8,773) (8,755) 6,394 6,666 Plant and Equipment At capitalised cost Less: Accumulated depreciation (851) (841) Computer Equipment and Software At capitalised cost Less: Accumulated depreciation (18) (18) - - Total Property, Plant and Equipment 6,405 6,687 Impairment of Property, Plant and Equipment Darwin Bus Service property, plant and equipment assets were assessed for impairment as at 30 June No impairment adjustments were required as a result of this review. 09 PART 9: Financial Statements DLP ANNUAL REPORT 151

154 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Property, Plant and Equipment Reconciliations A reconciliation of the carrying amount of property, plant and equipment at the beginning and end of is set out below: Transport Equipment Plant and Equipment Total $ 000 $ 000 $ 000 Carrying Amount as at 1 July , ,687 Additions Disposals (771) - (771) Depreciation (789) (10) (799) Depreciation written back on disposals Carrying Amount as at 30 June , ,405 A reconciliation of the carrying amount of property, plant and equipment at the beginning and end of is set out below: Transport Equipment Plant and Equipment Total $ 000 $ 000 $ 000 Carrying Amount as at 1 July , ,033 Additions 1, ,532 Disposals (88) - (88) Depreciation (857) (20) (877) Depreciation written back on disposals Carrying Amount as at 30 June , , DLP ANNUAL REPORT PART 9: Financial Statements 09

155 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June $ $ PAYABLES Accounts payable GST payables 18 - Accrued expenses Total Payables PROVISIONS Current Employee benefits Recreation leave Leave loading Other employee benefits Other current provisions Income tax Dividend , Non-Current Employee benefits Recreation leave Total Provisions 1,213 1,087 Darwin Bus Service employed 53 employees as at 30 June 2012 (58 employees as at 30 June 2011). 09 PART 9: Financial Statements DLP ANNUAL REPORT 153

156 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June NOTES TO THE CASH FLOW STATEMENT Reconciliation of Cash The total of agency Cash and Deposits of $3,932,000 recorded in the Balance Sheet is consistent with that recorded as Cash in the Cash Flow Statement $ $ 000 Reconciliation of Net Surplus to Net Cash from Operating Activities Net Surplus Non-cash items: Depreciation and amortisation Gain on disposal of assets (116) (88) Changes in assets and liabilities: Decrease/(Increase) in receivables 138 (573) Decrease/(Increase) in inventories (79) 3 Decrease/(Increase) in prepayments 14 (17) (Decrease)/Increase in payables 92 (51) (Decrease)/Increase in provision for employee benefits (54) (42) (Decrease)/Increase in income tax liabilities Net Cash from Operating Activities 1, FINANCIAL INSTRUMENTS A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments held by Darwin Bus Service include cash and deposits, receivables and payables. Darwin Bus Service has limited exposure to financial risks as discussed below. (a) Categorisation of Financial Instruments The carrying amounts of Darwin Bus Service s financial assets and liabilities by category are disclosed in the table below $ 000 $ 000 Financial Assets Cash and deposits 3,932 2,999 Loans and receivables Financial Liabilities Amortised cost: Payables DLP ANNUAL REPORT PART 9: Financial Statements 09

157 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June FINANCIAL INSTRUMENTS (continued) (b) Credit Risk Darwin Bus Service has limited credit risk exposure (risk of default). In respect of any dealings with organisations external to Government, Darwin Bus Service has adopted a policy of only dealing with credit worthy organisations and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults. The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represents Darwin Bus Service s maximum exposure to credit risk without taking account of the value of any collateral or other security obtained. Receivables Receivable balances are monitored on an ongoing basis to ensure that exposure to bad debts is not significant. A reconciliation and aging analysis of receivables is presented below Aging of Receivables Aging of Impaired Receivables Net Receivables $ 000 $ 000 $ 000 Not overdue Overdue for less than 30 days Overdue for 30 to 60 days Overdue for more than 60 days Total Not overdue Overdue for less than 30 days Overdue for 30 to 60 days Overdue for more than 60 days Total (c) Liquidity Risk Liquidity risk is the risk that Darwin Bus Service will not be able to meet its financial obligations as they fall due. Darwin Bus Service s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when they fall due. The following tables detail Darwin Bus Service s remaining contractual maturity for its financial assets and liabilities. It should be noted that these values are undiscounted, and consequently totals may not reconcile to the carrying amounts presented in the Balance Sheet. 09 PART 9: Financial Statements DLP ANNUAL REPORT 155

158 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June FINANCIAL INSTRUMENTS (continued) 2012 Maturity analysis for financial assets & liabilities Assets Fixed or Variable $ 000 Less than a Year $ 000 Interest Bearing 1 to 5 Years $ 000 More than 5 Years $ 000 Non Interest Bearing $ 000 Total $ 000 Weighted Average Cash and deposits 3, , Receivables Total Financial Assets: 3, ,791 % Liabilities Payables Total Financial Liabilities: Maturity analysis for financial assets & liabilities Assets Fixed or Variable $ 000 Less than a Year $ 000 Interest Bearing 1 to 5 Years $ 000 More than 5 Years $ 000 Non Interest Bearing $ 000 Total $ 000 Weighted Average Cash and deposits 2, , Receivables Total Financial Assets: 2, ,996 % Liabilities Payables Total Financial Liabilities: DLP ANNUAL REPORT PART 9: Financial Statements 09

159 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June FINANCIAL INSTRUMENTS (continued) (d) Market Risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. It comprises interest rate risk, price risk and currency risk. The primary market risk that Darwin Bus Service is likely to be exposed to is interest rate risk. (i) Interest Rate Risk Darwin Bus Service s exposure to interest rate risk by asset and liability classes is disclosed above under liquidity risk. The entity s operating account earns monthly interest at a variable rate (Reserve Bank of Australia s official cash rate). Negative balances without overdraft facilities or prior arrangement with NT Treasury Corporation will be charged the overdraft rate applied to the Government Bank Account by National Australia Bank. Market Sensitivity Analysis Changes in the variable rates of 100 basis points (1 per cent) at reporting date would have the following effect on Darwin Bus Service s profit or loss and equity. Profit or Loss and Equity 100 basis points increase $ basis points decrease $ June 2012 Financial assets cash at bank 39 (39) Net Sensitivity 39 (39) 30 June Financial assets cash at bank 30 (30) Net Sensitivity 30 (30) (ii) Price Risk Darwin Bus Service is not exposed to price risk as Darwin Bus Service does not hold any financial instruments impacted by price risk. (iii) Currency Risk Darwin Bus Service is not exposed to currency risk as Darwin Bus Service does not hold borrowings denominated in foreign currencies or transactional currency exposures arising from purchases in a foreign currency. 09 PART 9: Financial Statements DLP ANNUAL REPORT 157

160 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June FINANCIAL INSTRUMENTS (continued) (e) Net Fair Value The fair value of financial instruments is estimated using various methods. These methods are classified into the following levels: Level 1 derived from quoted prices in active markets for identical assets or liabilities. Level 2 derived from inputs other than quoted prices that are observable directly or indirectly. Level 3 derived from inputs not based on observable market data Total Carrying Amount Financial Assets Net Fair Value Level 1 Net Fair Value Level 2 Net Fair Value Level 3 Net Fair Value Total $ 000 $ 000 $ 000 $ 000 $ 000 Cash and deposits 3,932-3,932-3,932 Receivables Total Financial Assets 4,791-4,791-4,791 Financial Liabilities Payables Total Financial Liabilities Total Carrying Amount Financial Assets Net Fair Value Level 1 Net Fair Value Level 2 Net Fair Value Level 3 Net Fair Value Total $ 000 $ 000 $ 000 $ 000 $ 000 Cash and deposits 2,999-2,999-2,999 Receivables Total Financial Assets 3,996-3,996-3,996 Financial Liabilities Payables Total Financial Liabilities The net fair value of financial assets, being cash and deposits and receivables and financial liabilities, being payables are classified as Level 2 as they are derived from inputs other than quoted prices that are observable directly or indirectly DLP ANNUAL REPORT PART 9: Financial Statements 09

161 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June COMMITMENTS (i) Capital Expenditure Commitments Darwin Bus Service had the following capital expenditure commitments at 30 June $ $ 000 Within one year Later than one year and not later than five years Capital expenditure commitments represent the contracted arrangements to undertake the programmed replacement of the fleet. (ii) Other Expenditure Commitments Other non-cancellable expenditure commitments not recognised as liabilities are payable as follows: Within one year Later than one year and not later than five years - - Other expenditure commitments include the rent of premises being the bus depot (iii) Operating Lease Commitments Darwin Bus Service leases motor vehicles under non-cancellable operating leases expiring from one to two years. Future operating lease commitments not recognised as liabilities are payable as follows: Within one year Later than one year and not later than five years PART 9: Financial Statements DLP ANNUAL REPORT 159

162 Darwin Bus Service NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June CONTINGENT LIABILITIES AND CONTINGENT ASSETS (a) Contingent Liabilities Darwin Bus Service has entered into agreements which contain indemnity clauses. The contingent liabilities arising from the indemnities are unquantifiable, but are expected to be immaterial. However, for all the events that would give rise to the liabilities, the entity has comprehensive risk management procedures in place. (b) Contingent Assets Darwin Bus Service had no contingent assets at 30 June 2012 or 30 June EVENTS SUBSEQUENT TO BALANCE DATE No events have arisen between the end of the financial year and the date of this report that require adjustment to, or disclosure in these financial statements. 17. WRITE-OFFS, POSTPONEMENTS, WAIVERS, GIFTS AND EX GRATIA PAYMENTS Darwin Bus Service had no write offs, postponements, waivers, gifts and ex gratia payments in and DLP ANNUAL REPORT PART 9: Financial Statements 09

163 Postal GPO Box 2520 DARWIN NT 0801 Telephone Facsimile [email protected] Web Head Office 5th Floor, Energy House Cavenagh Street Darwin, Northern Territory, Australia. Katherine Regional Office NT Government Centre, 5 First Street Katherine, Northern Territory, Australia. Nhulunbuy Regional Office Lot 43, John Flynn Drive, Nhulunbuy, Northern Territory, Australia. Tennant Creek Regional Office 33 Leichhardt Street, Tennant Creek, Northern Territory, Australia. Alice Springs Regional Office Greatorex Building, Corner Bath and Parsons Streets, Alice Springs, Northern Territory, Australia.