annual report 2000/01 - parliament of western australia

Annual Report2000/01

Chemistry Centre (WA)125 Hay Street

East Perth WA 6004

Telephone: 9222 3177Facsimile: 9325 7767

Email: [email protected]: www.ccwa.wa.gov.au

TABLE OF CONTENTS

Foreword 1Output 1 Commercial Scientific Services

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Output 2 Scientific Support for Research Centres and Community Projects

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Output Measures 9Customer Focus 11Health and Safety 11Leave 11Publications and Promotion 12Research and Technical Investigations 12Risk Management 13Staff 14Employee Assistance 14Equal Opportunity 14Language and Cultural Diversity 14Advertising and Sponsorship 14Organisational Chart 15Certification of Performance Indicators 16Performance Indicators Effectiveness 17 Efficiency 18Certification of Financial Statements 19 Statement of Financial Performance 20 Statement of Financial Position 21 Statement of Cash Flows 22 Output Schedule of Expenses and Revenues 23 Consolidated Fund Appropriation and Revenue Estimates 24 Notes to Accounts 25Auditor’s Opinion 34

FOREWORD

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As of 1 July 2001, the Chemistry Centre(WA) will be in the portfolio of the Minister for StateDevelopment, while in 2000/01 reported to theMinister for Mines through the Director General ofthe Department of Minerals and Energy.

The Chemistry Centre provides high valuescientific services to government agencies, researchgroups and industry. Its role includes the provision offorensic scientific services to the Police Service andthe State Coroner, scientific information and advicerelating to agriculture, the environment, naturalresources and health to government agencies, industryand research groups, and an emergency responsecapability for emergencies such as chemical spills,food safety or export incidents and health orenvironmental concerns.

The ‘core’ business for the Chemistry Centrelies between the pure research of the Universities andthe high volume analytical test work carried out byprivate-sector laboratories. The ‘core’ activitiesinclude complex analytical and chemicalinvestigations and the provision of specialist adviceand information. These activities, which complementthe activities of the private sector laboratories in thisState, are described in more detail in this AnnualReport.

The Chemistry Centre has, during 2000/01,maintained or improved its performance as measuredby a wide range of indicators attesting to theChemistry Centre’s role as a provider of high qualityspecialist scientific services.

The Chemistry Centre has maintained itsquality system certification and its wide range ofquality test accreditations. This involved peer reviewby seventeen external auditors and assessors duringthe year.

Staff continue to make significant scientificcontributions, including a range of major scientificimprovements which have led to significantproductivity increases and new scientific services.During the year staff presented nineteen papers toscientific conferences and published seven papers inscientific journals. Staff also presented a range oflectures and laboratory programs in severalUniversity courses.

Chemistry Centre staff were involved intwenty three funded research projects. Most werecollaborative projects with staff from other WesternAustralian research groups. The research funds to theChemistry Centre in 2000/01 were 40% higher thanin 1999/00.

Some 600 secondary and tertiary chemistrystudents participated in the Chemistry Centre’s OpenDays in May 2001. They were shown a range ofdemonstrations which highlighted the ChemistryCentre’s role in providing specialist scientific servicesto government agencies, industry and researchgroups.

The new Chemistry Centre’s website waslaunched during the year. This provides details of theChemistry Centre’s services, quality systems,accreditations and job vacancies.

On 1 July 2001 the Chemistry Centrebecame a Division of the newly formed Departmentof Mineral and Petroleum Resources. As aconsequence the Centre’s Annual Report for 2001/02will be part of this Department’s Annual Report.

It is my view that the Chemistry Centre willcontinue to be an important part of the State’sscientific infrastructure and to make a criticalcontribution to the outcomes of many governmentagencies, of other Western Australian researchgroups, industry and to the Western Australiancommunity.

DIRECTOR GENERALDEPARTMENT OF MINERAL AND PETROLEUMRESOURCES

CHEMISTRY CENTRE (WA)

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MISSION: The Chemistry Centre’s mission is tosatisfy client expectations by being a leadingprovider of cost-effective analytical,investigative, research and value addedscientific services.

OUTPUT 1: Commercial Scientific Services.

OUTPUT DESCRIPTION: The provision of highquality independent chemical and scientificinformation and advice to government agenciesand industry. The scientific services include theareas of agricultural, environmental, food,occupational health and racing chemistry andforensic science. Clients include AgricultureWA, Department of Conservation and LandManagement, Health Department, Departmentof Environmental Protection, Police, Coronerand industry.

During 2000/01 the Chemistry Centrecontinued to provide a comprehensive range ofchemical and mineralogical services toGovernment agencies, industry and WesternAustralian research groups. These servicesgenerally fall between the pure research ofUniversities and the high volume work of privatesector laboratories. They include scientific testsand advice, support for statutory responsibilities,solutions to scientific problems, investigationsand collaborative research projects.

Clients require high scientific expertise,advice, interpretative and investigative skills,appropriate quality test accreditation and qualitysystems certification. Clients value scientistsfrom an independent organisation who are ableto give expert advice, communicate effectivelywith their officers and provide expert evidenceto courts and coronial enquiries. Some clientsalso require a 24 hour emergency responsecapability.

The changes, introduced in July 1994,when the financial resources previously

allocated to the Chemistry Centre werereallocated to government client agencies haslead to reduced requirements for scientificservices from some government agencies. TheChemistry Centre has responded by reducingstaffing levels.

The Chemistry Centre supports theState’s lupin industry and is responsible for thequality component of the National LupinBreeding Program. This support of qualityinvolves the monitoring of alkaloid and proteinlevels in breeding lines from the National LupinBreeding Program. However, there have beenrecent changes in the emphasis of lupinmarketing bodies to increase the competitivenessof lupin seed on the world protein market. Dueto the distrust in Europe of genetically modifiedsoybean and corn which are used as proteinsources in animal feeds and human foods, therehas been an increased demand for non-genetically modified substitute sources ofprotein and lupin seed is one such source. Theanimal feed industry in Australia and the worldis also requiring lupin grain with higher proteinand energy levels. In order to accommodatethese shifts in marketing emphasis the nationallupin breeders are introducing the developmentof lupin seed with high protein and energy levelsas components of their breeding programs.

To assist with the development of thisbreeding component, the Chemistry Centre hasdeveloped a non-destructive near infraredreflectance (NIR) technique for measuringprotein levels in single lupin seeds. Anenzymatic non-destructive technique has beendeveloped to determine the level of glucose andgalactose in single lupin seeds. These enzymetechniques allow the measurement ofcarbohydrate levels in the seed and alsoindirectly give a measure of lupin seed hullthickness. A NIR technique for measuring oil insingle seeds is under development and will allowlupin breeders to plant out any promising seedsand thus develop improved lines with higherprotein and energy levels from these singleseeds.

The Centre continues to support theHealth Department’s food monitoring programs.These programs aim to establish the safety of the


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food supply within Western Australia and toanticipate areas of concern by sampling andtesting. The programs aim to attain maximumutilisation of resources, avoid duplication ofeffort and provide an across governmentapproach to food safety ensuring cooperationand coordination between governmentdepartments and local government.

After a six year review the HealthMinisters adopted a new joint food standardscode that provides updated food regulations forAustralia and New Zealand. The new codeintroduced significant changes to the labelling offoods and in support of these changes the Centreundertook the analysis of a wide range of foodsfor nutritional labelling. As well as thetraditional nutritional parameters (fat, protein,carbohydrate, sodium and potassium) morecomplex nutritional analyses were performedincluding folate, total dietary fibre and gluten incereal products and saturated, monounsaturated,polyunsaturated and omega-3 fatty acids in oiland fat products. Other programs supported in2000/01 include aflatoxins in peanut products,cadmium in cereals and the development ofchemical and/or biological methods to enable thedetection of irradiated foods.

The Residue Chemistry Section wasrestructured during this year, including theappointment of a new section leader withsignificant experience in organic analyticalchemistry and the development and applicationof quality systems to residue chemistry. Thesection was particularly successful in attractingindustry funding from key national fundingbodies, especially the Horticultural Research andDevelopment Corporation (HRDC) for the twoyear project: “Reducing pesticide residuescreening costs for the Australian vegetableindustry through the development of multi-pesticide residue screening protocols”. Thisproject is part of an on going effort to supportthe State’s agricultural and food processingexport industries through the development ofcost effective export quality assurance tests.

Synthetic organic chemical expertise hasbeen contributed to a range of collaborativemulti-discipline, Western Australian drugdiscovery research projects. These projects have

been involved with protozoal infections,prostrate cancer, anti-cancer drugs and rationaldrug design. Contract synthesis has beenundertaken for six Australian pharmaceuticalcompanies. Analytical standards for veterinarydrugs have also been synthesised.

The combined experience and expertiseof the Chemistry Centre’s agricultural andenvironmental scientists have again been utilisedby mining companies to minimise the impact ofthe mining and mineral processing industries onthe local environment. Problems confrontingtheses industries include management of acidicresidues (acid mine drainage, mineral sandsprocessing) alkaline residues (bauxiteprocessing), toxic process solutions (cyanide ingold recovery), heavy metals and nutrients.Research is continuing in efforts to convert someof these residues into useful agriculturalmaterials. Examples include ‘red mud’ frombauxite refining, fly ash from power stations,and clay materials in combination with greengarden waste to improve nutrient retention insandy soil.

The Centre continued to providespecialist services to industry and governmentagencies concerned with evaluation andprotection of the environment. Contractscontinued with companies in Western Australia,Northern Territory, New South Wales,Queensland and with government agencies inSouth Australia and the Northern Territory. Therevenue from industry clients for specialistinvestigations remained at about the same levelfor the year. Work from the mining industryalso continued to be significant and consultancyservices to Indonesian, Thai, South African andNorth American companies and the WorldHealth Organisation were provided.

Investigation of contaminated sites andthe potential for groundwater contamination dueto industrial and human activity are continuallyareas of interest. Expansion of capabilities ingas sampling and analysis has resulted in majorproject work on organic chemicals in theatmosphere. Work from Western AustralianGovernment agencies with health andenvironmental responsibilities continued at lowlevels.


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Occupational hygiene assessments andenvironmental health investigations havecontinued to be an important function for thespecialist Chemists in the Centre. Health relatedassessments have been carried out in private andGovernment hospitals, industry, schools anduniversities. Assessments have been primarilyfocussed on indoor air pollutants such as wasteanaesthetic agents. Ozone, organic vapours andhazardous particulates. Environmental healthinvestigations have been mainly associated withodours from industry.

The Forensic Science Laboratory plays avital role in supporting law enforcement inWestern Australia through provision of acomprehensive forensic chemistry service to theWestern Australian Police Service, the State andDistrict Coroners and to other governmentdepartments and agencies involved in justiceadministration.

The toxicological examination ofautopsy samples from sudden deaths to identifya cause of death constituted the major proportionof services provided to the Coroners. Thisservice involves the analysis of blood, liver andother samples taken at autopsy for drugs andpoisons. Both the presence or absence of drugsand poisons in sudden deaths may be ofsignificance to the coronial investigation. Forinstance although a drug may not be theprincipal cause of death, its presence mayindicate an existing medical condition, whichcould contribute to the death. In cases involvingaccidental or traumatic deaths the presence ofdrugs may assist in explaining how or why theincident occurred. In cases where epilepsy orathsma is suspected as the cause of death theabsence of medication could explain theincident.

Irrespective of the circumstancessurrounding a case, Australian Coronersrecognise that comprehensive toxicologicalexaminations are required if coronial deaths areto be properly investigated.

Cases which required a full toxicologicalanalysis in 24 hour turn around because ofobjections to the conducting of an autopsyaccounted for approximately 15% of cases in2000/01.

The Forensic Science Laboratoryexamined 373 cases for alcohol and/or drugs inconnection with traffic sobriety offences. It alsocontinued to supply standard alcohol solutionsfor the calibration of evidential breath testinginstruments and a consulting service to theWestern Australian Police.

Chemistry Centre staff continued toprovide information and advice to the WA DrugAbuse Strategy Office.

The Physical Evidence Section providesservices to the Police Forensic Branch and todetectives concerned with the evaluation ofevidence from crime scenes.

The majority of cases examined byconcern paint, glass, fires, fibres, gunshotresidues, explosives, plastics, cosmetics,lubricants, corrosives and metals.

Forensic examination is aimed mainly atthe following tasks:

• Identification, detection ormeasurement;

• Comparisons;

• Simulations to assess likelihoodof various scenarios.

Gunshot residue detection continues tobe a major casework category. This is despite areduction in the total number of fatalitiesinvolving firearms.

Gunshot residues are produced when afirearm is discharged. Residues can originatefrom the projectile, primer or propellant. Suchparticles are blasted though the muzzle, ejectionports and gaps in the construction of the firearm.Residues also remain in and on the firearm andcartridge case. They may be deposited as smallparticles on the hands, face, hair and clothing ofthe firer and on persons and surfaces near theimmediate firing point.

Paint is another major evidencecategory. It is extremely valuable in theinvestigation of traffic accidents or crimesinvolving motor vehicles. Pyrolysis techniquesare a key analytical method in forensic paint andpolymer examinations and the Chemistry Centre


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is recognised as the leading Australianpractitioner of these techniques.

The identification and comparison ofsoil is often of great significance in establishingthe location of a crime scene or for linking asuspect with a known crime scene. Previousresearch undertaken by Chemistry Centre staffshowed that characteristics of sands varied onboth a coast to hills transect as well as fromnorth to south. These procedures weresuccessfully applied to a number of policeinvestigations during the year.

The Illicit Drug Section hasresponsibility for the examination andidentification of material seized by the WesternAustralian Police suspected of being either anillicit drug or a controlled substance. It also hasresponsibility for the scientific investigation ofclandestine drug laboratories and other incidentsinvolving the manufacture of illicit drugs.

Staff continue to be associated with theinvestigation of clandestine drug laboratories,the provision of drug intelligence information tooperational police and community basedprograms, comparison / profiling of drugseizures, training of police officers in clandestinedrug laboratory investigation and participation innational drug strategy functions.

There has been a significant growth inthe number of clandestine drug laboratoriesinvestigations undertaken for the Police. Thefrequency of occurrence is now approximatelythe same as that in Victoria. The vast majorityof cases are involved with the illicit manufactureof methylamphetamine. Clandestine laboratoriesoften utilise and involve extremely hazardouschemicals that pose a severe health and safetyrisk to the Police and Chemistry Centre officersinvestigating these incidents and the public ingeneral. Ensuring that appropriately trained andexperienced Chemistry Centre officers areinvolved in these investigations has placed asevere strain on resources that could be allocatedto other operational areas of the ForensicScience Laboratory. Unfortunately this hasresulted in an increase in response time for someother classes of investigation, most notablygeneral illicit drug cases.

The Racing Chemistry group continuedto provide drug monitoring and advisory andresearch services for the Western AustralianTrotting Association and from January, to theWestern Australian Greyhounds RacingAuthority. The group continued its drugevaluation program, required because the drugsused in racing tend to change as new drugsbecome available. The group also conducted,within this program, research into newprocedures for detecting highly potent low-dosedrugs as well as investigations into the rates atwhich drugs are excreted by the animals, and inwhat form. This information is vital to the groupand for the stipendiary stewards to interpretwhen a detected drug was administered to theanimal.


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OUTPUT 2: Scientific Support for ResearchCentres and Community Projects.

OUTPUT DESCRIPTION: The provision ofspecialist high quality, independent chemicaland scientific information and advice toCooperative and Special Research Centres andprojects which benefit the Western Australiancommunity.

The Chemistry Centre has continued tosupport senior secondary, TAFE and universitystudents studying chemistry with Open Days andwork experience. Lectures and laboratoryprograms including a series on analyticalchemistry and several series on forensic sciencetopics such as drugs, toxicology and physicalevidence have also been provided to Universitystudents. Specialist advice on national standardsand guidelines related to food, water purity,pesticide, poisons and the environment wasprovided to relevant State committees.

Allowable Maximum Residue levels(MRL) of pesticides in agricultural produce,foodstuffs and drinking water are continuing tofall. Indeed in some case there is zero tolerance.It is becoming increasingly difficult to detectthese residues and many overseas regulatoryagencies responsible for residue testing are nowusing extremely expensive and sensitiveinstruments to detect these residues. Australia’sability to compete with other primary exporterscould be compromised by the inability to meetthese exacting residue levels. One approach tomeet these benchmark residue levels is to useisotopic chemical standards in the analyticalprocedure. Many of these key standards areunavailable and the Chemistry Centre has nowdeveloped the ability to synthesis thesestandards. Key standards already synthesisedinclude veterinary drugs and herbicides. TheCentre’s expertise in this area is recognisedthroughout Australia and resulted in a contract tosynthesise the sports drug standards required forthe Sydney Olympics.

The Chemistry Centre is a partner withindustry, other government agencies andUniversities in sixteen collaborative researchprojects, which were funded for 2000/01. Theseprojects are involved with agriculturaldevelopment, environmental issues, analytical

chemistry and medical research. The ChemistryCentre received $612,365 of the total $2,157,479funds from Commonwealth Government,agricultural and mineral funding bodies.

Analytical procedures were developedand validated for the analysis of tributyltin inmarine sediments, seawater and marine biota.This has allowed samples from WesternAustralian ports and ship building areas to betested. Tributyltin is used as an anti-foulingagent in marine paints, however, it can no longerbe used for small boats. Tributyltin residuesdisrupt shellfish breeding cycles and couldimpact on the viability of the local shellfishindustry.

A non-destructive test was developed forthe determination of key nutritional properties,especially protein levels in single lupin seeds.This test has the potential to rapidly acceleratethe Western Australian and National LupinBreeding Program through the selection of lupinvarieties with an improved protein content. TheWestern Australian lupin export industry iscurrently worth in excess of $200 million perannum.

A preliminary survey of soils fromgardens in the residential areas of the Perthmetropolitan area has indicated widespread over-fertilisation with phosphorus. Approximatelyone third of the soils analysed were saturatedwith phosphorus. Continuing fertilisation ofsuch soils will result in leaching of phosphorusfrom the topsoil into groundwater and eventuallyinto coastal rivers, lakes and estuaries. Thesituation could be markedly improved byamendment with materials with a high capacityto ‘fix’ or adsorb soluble phosphorus. Organicwastes, such as composted manures and greenwaste are not satisfactory, as they have very littlecapacity to retain soluble phosphorus. TheDepartment Environmental Protection WasteManagement and Recycling Fund has provided$50,000 for the Chemistry Centre to investigatethe effect of blending composted green wastewith natural clays and mineral processingresidues.

A project funded by the Grains Researchand Development Corporation to evaluate singlepoint soil test indices for assessing the ability of


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soil to retain phosphorus was completed duringthe year. These indices are used for estimatingphosphorus fertiliser requirements of plants andenvironmental assessment of nutrient pollutionissues. The Phosphorus Retention Index,developed by the Chemistry Centre in 1982 wasfound to be the most useful index for a range ofWestern Australian soils.

The WA Science and TechnologyInnovation Fund has funded a project involvingeight students and a staff member from theVocational and Educational Training sectorworking with Chemistry Centre scientists for sixmonths. This has strengthened links with thissector and the project will lead to direct studentinvolvement with industry.

The Chemistry Centre is an activepartner in several collaborative projects withAgriculture WA (Pulse and Oilseed Program)and the Centre for Legumes in MediterraneanAgriculture (CLIMA). These projects arefocused on continuing development of the sweetlupin seed industry in Western Australia anddevelopment of alternative grain legumes for usein areas not suited to lupin seed production.Research has concentrated on the developmentof rapid screening tests that will enable plantbreeders to select lupins on the basis ofimproved protein content and quality forruminants and increased metabolisable energyfor monogastrics, especially pig and poultry.Lupins are considered to be inferior incomparison to soybean meal for these keyqualities, accordingly lupins are a price takercompared to soybean and additional work mustbe undertaken to improve their competitiveposition. The Centre was successful in attractingfunding from the Grains Research Committee forthis work.

Recent work at the Chemistry Centre,has established that pulse crop, includingchickpea and faba bean are particularly rich inphytosterols, which have been shown to beeffective in lowering blood cholesterol levels.These ;pulses also contain significant levels offolic acid, which is often deficient in the diets ofpregnant women. This information will helpmarketers to promote the export of these

commodities on the basis of their positive healthbenefits.

Excellent progress is being make on thedevelopment of multi-pesticide residue screeningtests for the detection of pesticide residues inhorticultural produce. These assays are expectedto significantly reduce pesticide residue testingcompliance costs to the industry and ensure thequality of Western Australian exports.

Rapid near infrared procedures havebeen developed for key quality traits in canola.These tests are now being used to support therecently established Western Australian CanolaBreeding Program that has been established tosupport an industry that has grown from50,000mt to 1,000,000mt in less than ten years.

Western Australia has a small, buteffective medical and biotechnology researchcommunity. This capability has been augmentedthrough the establishment of institutes such asthe Western Australian Institute for MedicalResearch (WAIMR) and other medical researchgroups such as the Western AustralianBiomedical Research Institute and the Centre forDiagnosis and control of Parasitic Diseases. TheChemistry Centre is also supporting the recentlyestablished Biomedial Research & DevelopmentAlliance that is seeking to develop WesternAustralia as a Bio Innovation Hub and whichbrings together all of the medical researchgroups in Western Australia. The ChemistryCentre is using its skills in organic syntheticchemistry and natural product chemistry to assistthese groups in the development of biologicallyactive compounds that may be used for diseasesincluding diabetes, cancer, osteoporosis andprotozoal infections, especially malaria,cryptosporidium and giardia.

The A.J. Parker Cooperative ResearchCentre for Hydrometallurgy is a partnershipinvolving Curtin and Murdoch Universities,CSIRO Division of Minerals, the Department ofMinerals and Energy and AMIRA (AustralianMineral Industries Research Association).Significant contributions including specialistanalytical support were made to ilmeniteleaching, gold processing including carbon andcyanide management, solvent extraction,


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electrowinning and other industry sponsoredprojects.

The Western Australian government andcommunity in general, benefit from theEmergency Response capability of theChemistry Centre.

Some emergency case responses are partof planned government agency programs – egPolice Service investigations of illegal,clandestine drug laboratories. In these casesthere is significant agency commitment tomaintenance of the capacity and the agency andChemistry Centre officers undergo regulartraining with Police and emergency services stafffrom several government agencies.

However, the overall capacity ismaintained ‘in case’ there are incidents whichoccur from time to time and may endanger thepublic, workers and/or the environment. Typicalemergencies included the identification ofnoxious chemicals released to the environmentin cases of fire and accidents at industrial sites.Other incidents have included dust and odouremissions, bird deaths, pesticide oversprays andspills in shipping containers. Illegal break-ins towater supplies require rapid chemical analysis toenable water supply agencies to correctlymanage the problem and risk of contamination.

A review of the Chemistry Centre’sEmergency Response capability, especially itsanalytical methodologies was completed. Thisreview has established the need for more rapidtests for the analysis of soil, sediment, water andair for pollutants arising from for example,chemical spills, fires of water reservoir break-ins. A program of method development hascommenced, these new capabilities oncedeveloped will allow a more timely response andprovide the key information that regulatoryagencies and emergency response officers needduring and immediately after the crisis.

The Scaevola spinescens extract wasprepared fortnightly for some eight (8) persons.No new clients have been added to this programsince 1991.


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OUTPUT MEASURES

Output 1 Output 2QUANTITYChargeable Hours

The number of hours of work charged to clients. 44,917 10,818

100% 100%QUALITYQuality System Accreditation

The proportion of the Chemistry Centre’s scientificareas covered by accreditation procedures. Thisindicator provides evidence of the external accreditationof the Chemistry Centre’s quality systems. TheChemistry Centre also received certification for QualityManagement System AS3901/ISO9001 for “provisionof laboratory testing and related scientific investigationservices” in January 1995. The Chemistry Centre hasmaintained all its accreditations and its certification in2000/01.

TIMELINESSClient Timeliness Satisfaction

Key clients were surveyed in March 2001. The surveyquestions dealt with issues regarding quality, accuracy,completeness of information, timeliness, access to staff,cost of services and level of understanding of clientneeds. A total of 68 responses were received from the139 surveys sent out (48.9% response rate).

86.6%(Response

48.9%)

86.6%(Response

48.9%)

COSTCost Recovery for Core Business

The ratio of sales generated by the Laboratoriescompared to the costs of the Laboratories and the fixedcosts related to the core business of the ChemistryCentre.

83% 83%

Six Monthly Certification AuditsDate(s) Number of

AssessorsArea

8 August 2000 Two Chemistry Centre29 & 30 January 2001 Two Chemistry Centre

Accreditation AuditsAssessment Date Number of

AssessorsArea

26 July 2000 Three Food27 July 2000 Three Plant and Soil27, 28 & 29 March 2001 Four Forensic Science21 June 2001 Three Dusts & Gases


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Output 1 Output 2EFFECTIVENESSPublication Index

The publication index is the number of scientific papersaccepted for publication in scientific or professionalassociation journals or for presentation at national orinternational scientific conferences per full timeequivalent staff. This indicator provides evidence of theChemistry Centre’s scientific achievements.

0.31 per FTE 0.31 per FTE

Quality Systems Accreditation

The proportion of the Chemistry Centre’s scientificareas covered by accreditation procedures. Thisindicator provides evidence of the external accreditationof the Chemistry Centre’s quality systems. TheChemistry Centre also received certification for QualityManagement System AS3901/ISO9001 for “provisionof laboratory testing and related scientific investigationservices” in January 1995. The Chemistry Centre hasmaintained all its accreditations and its certification in2000/01. This has involved six external audits.

100% 100%

Proficiency Tests

The Chemistry Centre participates in a range of nationaland international proficiency trials. Proficiency trialresults are used to ensure validated procedures are used.The indicator is the number of proficiency tests per fulltime equivalent staff.

7.56 per FTE 7.56 per FTE

EFFICIENCYHourly Chargeout Rate in Providing Services

The chargeout rate is calculated by dividing the cost ofthe respective Output by the hours actually charged. Itis dependent on the availability of work and whether itcan be invoiced or not.

$121 $121


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CUSTOMER FOCUS

The nature of the Chemistry Centre’sbusiness requires regular and frequent liaisonwith clients to discuss client problems andrequirements, joint investigative and researchprojects and evidential requirements. A clientsurvey was held during the year. The average‘satisfied’ response was 86.6%.

Continuous improvement is a crucialcomponent of the Chemistry Centre QualitySystems. A Continuous Improvement Form isused to address issues raised by customers,internal and external audits, safety issues, systemfailures, compliments and improvement ideas.89 of the 224 forms were generated bycustomers in 2000/01. These included 36customer complaints and 24 compliments. Arange of improvements was implemented toimprove Chemistry Centre processes.

Annual client surveys are sent to majorclients. The survey questions dealt with quality,accuracy, completeness of information,timeliness, access to staff, cost of services andlevel of understanding of client needs. Theresults are shown in the following table:

Client Satisfaction % (out of 4)

Year 99/00 00/01

Number of surveysdistributed

129 139

Number of responsesreceived

69 66

Quality of services 3.33 3.54

Accuracy ofinformation

3.56 3.61

Completeness ofinformation

3.43 3.56

Timeliness 2.79 2.92

Access to staff 3.46 3.51

Understanding ofclient needs

3.56 3.70

Current information 3.48 3.67

Cost of services 2.95 3.20

HEALTH AND SAFETY

The Occupational Health and SafetyCommittee has continued to address safetyissues. Regular safety audits have beenundertaken. The program to ensure appropriatestaff maintain first aid certificates, hearing andeye tests and hepatitis B immunisation has beencontinued.

During 2000/01 there were two worker’scompensation claims. Both were accepted.Twelve days were lost through injury.

Health and Safety

Year 97/98 98/99 99/00 00/01

Number of worker’scompensation claims

6 5 3 2

Days lost throughinjury

86.8 32.5 19.5 12

These accidents have been investigatedand operational and training proceduresupgraded as part of the Chemistry Centre’scontinuous improvement program.

LEAVE

The Chemistry Centre requires staff totake annual leave by the 1 March after the yearin which it accrues and take an average of onemonth of long service leave each year after itsaccrual. The annual leave entitlement increasedby 5% in 2000/01 whilst the long service leaveentitlement increased by 28%. Significant longservice leave entitlements will continue as thenumber of staff accruing leave varies as shownin the following graph:

($’000)

Year 96/97 97/98 98/99 99/00 00/01

Annual leaveentitlement

226 193 146 144 151

Long Serviceentitlement

354 317 368 222 285

Long Servicecontingententitlement

406 460 501 605 560


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PUBLICATIONS AND PROMOTION

Chemistry Centre (WA) staff wereauthors or co-authors of twenty six (26)scientific papers presented at conferences orpublished in the scientific literature. Thesepapers dealt with chemical investigationscovering the fields of agriculture, forensicscience, environment and public health.

The Chemistry Centre also published a1999/00 Annual Review (32 pages) whichrecorded the Chemistry Centre’s scientificachievements. The Annual Review was also puton the Chemistry Centre’s website in pdf formatfor the first time.

The Chemistry Centre’s website wasregularly updated. Job vacancies were alsoadded during the year.

The Chemistry Centre provides tours ofthe laboratories annually in Science Week.Schools, Universities and the general communityare invited to tour demonstrations illustratingactivities and investigations undertaken in eachof the Laboratories. Over 600 persons visitedthe Chemistry Centre during four Open Days inMay 2001.

Further information about thesepublications can be obtained from the ChemistryCentre.

RESEARCH AND TECHNICAL INVESTIGATIONS

The Chemistry Centre (WA) undertakesa range of research and technical investigationswhich are the subject of reports for clients.These are confidential to the clients. In somecases these lead to publications. Where

Chemistry Centre (WA) staff are authors or co-authors these are recorded under ‘Publications’.

Chemistry Centre staff are also involvedin a range of funded research projects. Researchprojects funded in 2000/01 included:

• Lupin protein assay – Development ofrapid and non-destructive assays for theselection of single lupin seeds withimproved protein content (GRDC);

• Tubulin Project - An examination oftubulin binding compounds in protozoansusing photoaffinity labelling, antibodiesand sequence analysis and mutation(ARC-SPIRT);

• Multi-Element Soil Testing -Evaluation of multi-element soil testingprocedures for improving fertiliserrecommendation systems in WesternAustralian agriculture (GRDC);

• Phytoestrogen – Marketing Advantage –Phytoestrogen, Phytosterol and VitaminLevels in Australian Pulses: A PositiveMarketing Advantage (GRDC);

• Lupin Enzyme - Development of RapidEnzymatic Screening Assays for theSelection of Lupins with ImprovedNutritional Value for Monogastrics(GRC);

• Medicago by Sinorhizobium - TheEffect of Acidity on the Production andRecognition of Signal Molecules inNodulatin of Medicago by Sinorhizobium(ARC-SPIRT);

• Lupin NIR - Development of RapidNear Infrared (NIR) SpectroscopicScreening Tests for the Selection ofLupins with Increased Energy and ProteinContent (GRC);

• Multi-pesticide Screening Protocols -Reducing Pesticide Residue ScreeningCosts for the Australian VegetableIndustry Through the Development ofMulti-pesticide Screening Protocols(HRDC);

Long Service Leave Falling Due

0

10

20

30

96/97 97/98 98/99 99/00 00/01

Year

No.

of

Em

ploy

ees


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• Aphids Resistance - ChemicalMechanisms of Resistance in Lupins toAphids (GRC);

• Table Olive Oil - Establish Protocols andGuidelines for the Table Olive OilProcessing in Australia (RIRDC);

• Lupin Breeding - Lupin Breeding inAustralia. Determination date of alkaloidlevels in breeding lines from the nationallupin breeding program (GRDC);

• Canola Oil - Oil Content of Canola inDry Areas of the WA Wheat Belt(GRDC);

• Your Number’s Up - Your Number isUp: Improving the quality and reliabilityof numbers (WA Science and TechnologyFund);

• Salinity Soil Carbon - Impact of salinityon soil carbon stocks and fluxes(Greenhouse CRC);

• Kangaroos - Selective herbivory bykangaroos in disturbed land (ARC-SPIRT);

• Waste Management - Utilising greenand industrial wastes to overcomeenvironmental problems in urban areas inPerth in WA (Waste Management andRecycling Fund);

• Paired site sampling - Paired sitesampling to estimate soil carbon changesfollowing land clearing in south-westernAustralian (Australian GreenhouseOffice);

• Cyanide - P420b - Environmentalmodule of project in cyanide research(AMIRA);

• Forensic Mineralogy of Soils (SandySoils) - The forensic comparison ofsandy soils using associated clay andheavy mineral assemblage as indicatorsof provenance (NIFS).

Most are collaborative projects with WesternAustralian research groups. Research funds perFTE to the Chemistry Centre are shown in thefollowing graph.

RISK MANAGEMENT

The Chemistry Centre has a RiskManagement Plan which has identified no highrisks, fifteen significant risks and seven mediumrisks. Action plans are addressing the significantrisks.

The objective of this program is to ensure:

• Appropriate security of the ChemistryCentre buildings, contents andinformation;

• The capabilities, reputation and image ofthe Chemistry Centre are not adverselyaffected by an incident;

and to reduce:

• Injuries, incidents, injury lost time,workers compensation claims andworkers compensation premiums;

• Risks to staff, buildings, equipment andrecord;

• Insurance premiums;

• Any other risks which may impact onthe Chemistry Centre’s scientificbusiness.

The Chemistry Centre’s RiskManagement Plan was reviewed and updated inJune 2001.

Research Grants

012345

96/97 97/98 98/99 99/00 00/01

Years

$,00

0 pe

r F

TE


14

STAFF

The Reporting Officer is the Director.His appointment was renewed under the SeniorExecutive guidelines for a five year contractfrom 22 June 1998.

Staffing and industrial relations issuesand policies are dealt within the Department ofMinerals and Energy’s Workplace Agreementand Enterprise Bargaining Agreement of 2000 –2002.

COMPARISON OF EMPLOYEE NUMBERS AS AT 30JUNE

99/00 00/01

Scientific /Technical Staff 71 74.5

Support Staff 12 12.5

Total 83 87

EMPLOYEE ASSISTANCE

The Chemistry Centre engages theservices of Occupational Services to support theChemistry Centre’s Employee AssistanceProgram. Occupational Services has consultantswho provide an independent, confidential andprofessional counselling service to employeesand their immediate families. The average staffuse rate for 2000/01 was 2.2%.

EMPLOYEE ASSISTANCE CONSULTATIONS

97/98 98/99 99/00 00/01

Average staffusage (%)

4.2 1.1 2.2 2.2

EQUAL OPPORTUNITY

In November 1998, the Department ofMinerals and Energy, which includes theChemistry Centre, launched its EEO andDiversity Management Plan. This Plan outlinesa range of strategies aimed at developing aculture that incorporates diversity, where workpractices support equal opportunity, andharassment and discrimination are not tolerated.

One of the major aspects of the plan wasto have in place an internal grievancemanagement system that was both 'user friendly'for staff who needed to use it, and that assistedin resolving matters at the lowest possible level.There are fourteen staff members who havetaken on the role of Contact Officers within theDepartment of Minerals and Energy.

LANGUAGE AND CULTURAL DIVERSITY

The industrial agreements covering staffemployed at the Chemistry Centre recognise andmake provision for cultural leave.

ADVERTISING AND SPONSORSHIP

The Chemistry Centre has not usedadvertising agencies, research organisations,polling organisations or direct mail organisationsduring 2000/01.

Media advertising organisations such asMarketforce ($9,788) and the Intersector ($2209)have only been used for advertising jobvacancies.


15

Natural ResourcesChemistry Laboratory

Environmental Chemistry

Land Resource Chemistry

D IngrahamChief

J HoskingDirector

N CampbellChief

Food and BiologicalChemistry Laboratory

Forensic ScienceLaboratory

Finance andInformation

Food & AgriculturalChemistry

Medicinal and BiologicalChemistry

Residue Chemistry

Occupational Health andEmergency Response

Illicit Drugs

Physical Evidence

Racing Chemistry

Toxicology

N RothnieChief

G ClarksonFinanceManager

CERTIFICATION OF PERFORMANCE INDICATORS

I hereby certify that the performance indicators are based on proper records and fairlyrepresent the performance of the Chemistry Centre (WA) for the financial year ended 30 June2001.

DR J W HOSKINGREPORTING OFFICER

22 August 2001


17

PERFORMANCE INDICATORS

EFFECTIVENESS INDICATORS

OUTCOME: Quality, independent chemical and scientific research, consultancy and analyticalservices

Quality System Accreditation

This indicator is the proportion of scientificareas in the Chemistry Centre that meetinternationally recognised accreditation andcertification requirements. This requiresregular audits by external assessors whoconfirm that the Chemistry Centre meetsinternational standards for chemical andforensic science test accreditations and qualitymanagement system certification. TheChemistry Centre has maintained all itsaccreditations and its certification in 2000/01.

Client Quality Satisfaction

All major clients were surveyed in March2000. The survey population was 414. Thesurvey questions dealt with issues regardingquality, accuracy, completeness ofinformation, timeliness, access to staff, cost ofservices and level of understanding of clientneeds. A total of 68 responses were receivedfrom the 139 surveys sent out (48.9% responserate). The surveys were sent to clients whowere responsible for 95% of the ChemistryCentre’s revenue. The survey error, at 95%level of confidence, is ± 10.86.

Publication Index

The publication index is the number ofscientific papers accepted for publication inscientific or professional association journalsor for presentation at national or internationalscientific conferences per full time equivalentstaff. This indicator provides evidence of theChemistry Centre’s scientific achievementsand that these are subject to peer review.

Proficiency Tests

The Chemistry Centre participates in a rangeof national and international proficiency trials.Proficiency trial results are used to ensureresults are consistent with results obtained byother laboratories. The indicator is the numberof proficiency tests per full time equivalentstaff.

`

CLIENT SURVEY

99/00 00/01

Client satisfaction (%) 82.9 86.6

Publications Index

0

0.1

0.2

0.3

96/97 97/98 98/99 99/00 00/01

Years

Pub

licat

ions

per

F

TE

Proficiency Tests per FTE

0

5

10

96/97 97/98 98/99 99/00 00/01

Year

Tes

ts p

er F

TE

Quality System Accreditation

020406080

100

95/96 96/97 98/99 99/00 00/01

Year

Scie

ntfi

c A

reas

A

ccre

dite

d


18

EFFICIENCY INDICATORS

OUTPUT 1COMMERCIAL SCIENTIFIC SERVICES

Description: The provision of high quality independent chemical and scientific information andadvice to government agencies and industry. The scientific services include the areas of agricultural,environmental, food, occupational health and racing chemistry and forensic science. Clients includeAgriculture WA, Department of Conservation and Land Management, Health Department,Department of Environmental Protection, Police, Coroner and industry.

1.1 Percentage Cost Recovery

The cost recovery reflects the client revenue asa percentage of the expenditure of this outputand is a measure of efficiency. Extra noncontrollable costs which do not form part of anormal business operation are excluded. Thepercentage cost recovery for Output 1 for2000/01 is 83% excluding the extra costs, or78% including them.

1.2 Average Hourly Charge Out Rate ($)

The chargeout rate is calculated by dividingthe cost of Output 1 by the hours actuallycharged. This is a measure of the efficiency ofthe operation of the Chemistry Centre.

CHARGE OUT RATE

98/99 99/00 00/01

Rate ($) 136 112 121

OUTPUT 2SCIENTIFIC SUPPORT FOR RESEARCH CENTRES AND COMMUNITY PROJECTS

Description: The provision of specialist high quality, independent chemical and scientificinformation and advice to Cooperative and Special Research Centres and projects which benefit theWestern Australia community.

2.1 Percentage Cost Recovery

The cost recovery reflects the client revenue asa percentage of the expenditure of this Outputand is a measure of efficiency. The percentagecost recovery for Output 2 is 100%.

2.2 Average Hourly Charge Out Rate ($)

The average hourly rate charge is calculated bydividing the cost of Output 2 by the hoursactually charged. This is a measure of theefficiency of the operation of the ChemistryCentre.

CHARGE OUT RATE

98/99 99/00 00/01

Rate ($) 100 109 121

Percentage Cost Recovery

020406080

100

96/97 97/98 98/99 99/00 00/01

Year

Cos

t R

ecov

ery

(%)

Percentage Cost Recovery

020406080

100

96/97 97/98 98/99 99/00 00/01

Year

Cos

t R

ecov

ery

(%)

CERTIFICATION OF FINANCIAL STATEMENTS

The accompanying financial statements of the Chemistry Centre (WA) have been prepared incompliance with the provisions of the Financial Administration and Audit Act 1985 from properaccounts and records to present fairly the financial transactions for the financial year ending 30June 2001 and the financial position as at 30 June 2001.

At the date of signing I am not aware of any circumstances which would render the particularsincluded in the financial statements misleading or inaccurate.

DR J W HOSKINGREPORTING OFFICER

22 August 2001


20

Statement of Financial Performancefor the Year ended 30 June 2001

Note 2000/2001 1999/2000($'000) ($'000)

REVENUESRevenues from ordinary activities

External Clients 4 5,446 5,169Total revenues from ordinary activities 5,446 5,169

REVENUES FROM GOVERNMENTAppropriations 11 2,045 2,100Resources received free of charge 12 612 530Liabilities assumed by the Treasurer 13 537 682

Total Revenues from Government 3,194 3,312

EXPENSESExpenses from ordinary activities

Salaries and oncosts 5 5,230 4,794Superannuation 6 537 682Depreciation 7 410 382Accommodation expenses 8 292 292Administration expenses 9 2,176 1,942Net loss on disposal of non current assets 10 27 47

Total expenses from ordinary activities 8,672 8,139

Net Profit/(Loss) 24 (32) 342

The Statement of Financial Performance should be read in conjunction with the accompanyingnotes.


21

Statement of Financial Positionas at 30 June 2001

Note 2000/2001 1999/2000($'000) ($'000)

CURRENT ASSETSCash and amounts held in suspense 14 277 248Inventories 15 275 215Receivables 16 588 476Prepayments 17 39 19

Total current assets 1,179 958

NON-CURRENT ASSETSConstruction Works in Progress 18 5 5Property, plant, equipment, andvehicles

18 1,640 1,469

Total non current assets 1,645 1,474

Total assets 2,824 2,432

CURRENT LIABILITIESPayables 19 823 384Accrued expenses 19 12Accrued salaries 20 108 105Employee entitlements 21 577 629Amount due to the Treasurer 22 1,200 1,200

Total current liabilities 2,720 2,318

NON-CURRENT LIABILITIESEmployee entitlements 21 354 332

Total non current liabilities 354 332

Total liabilities 3,074 2,650

EQUITY

Accumulated Losses 23 (238) (218)

Total liabilities and equity 2,824 2,432

The Statement of Financial Position should be read in conjunction with the accompanying notes.


22

Statement of Cash Flowsfor the Year ended 30 June 2001

Note 2000/2001 1999/2000($'000) ($'000)Inflows Inflows

(Outflows) (Outflows)

CASH FLOWS FROM GOVERNMENTTreasurer's Advance 0 100Receipts from Recurrent Appropriations 2,045 2,100

Net Cash Flows provided by government 2,045 2,200

Utilised as follows:CASH FLOWS FROM OPERATINGACTIVITIES

ReceiptsRevenues from services 5,334 5,491

GST receipts on sales 569

PaymentsSalaries and related costs (5,257) (4,782)Administration (1,485) (2,474)GST payments on purchases (255)GST payments to taxation authority (314)

Net cash from operating activities 24 (1,408) (1,765)

CASH FLOWS FROM INVESTINGACTIVITIES

Payments for purchase of non-current assets (611) (409)Receipts from the sale of non-current assets 3 0

Net cash from investing activities (608) (409)

Net increase in cash used 29 26

Cash assets at the beginning of the financial year 248 222Cash assets at the end of the financial year 277 248

The Statement of Cash Flows should be read in conjunction with the accompanying notes.


23

Output Schedule of Expenses and Revenuesfor the year ended 30 June 2001

Commercial Scientific Scientific Support for TotalServices Research Centres and

Community Projects2000/2001 1999/2000 2000/2001 1999/2000 2000/2001 1999/2000

($'000) ($'000) ($'000) ($'000) ($'000) ($'000)

Revenue from ordinary activitiesExternal Clients 4137 4744 1309 425 5,446 5,169

Total revenue from ordinary activities 4137 4744 1309 425 5,446 5169

Expenses from ordinary activitiesSalaries and oncosts 5230 4794 5,230 4,794Superannuation 537 682 537 682Depreciation 410 382 410 382Accommodation expenses 292 292 292 292Administration expenses 867 1517 1309 425 2,176 1,942Net loss on disposal of non current assets 27 47 27 47

Total expenses from ordinary activities 7,363 7,714 1,309 425 8,672 8,139

Revenues from Government Appropriations 2045 2100 2,045 2,100 Resources received free of charge 612 530 612 530 Liabilities assumed by the Treasurer 537 682 537 682

Total Revenues from Government 3194 3312 3194 3312

Net Profit/(Loss) (32) 342 0 0 (32) 342


24

Summary of Consolidated Fund Appropriations and Revenue Estimatesfor the year ended 30 June 2001

2000/2001 1999/2000Details of Appropriation Items and ExpendituresAuthorised

Estimate Actual Variation Actual($'000) ($'000) ($'000) ($'000)

Amount required to fund outputs for the Year 8,398 7,382 1,016 7,692Less Retained Revenue - Section 23A Financial Administration and Audit Act (1985) 6,350 5,337 1013 5,592Item 56 amount provided to fund outputs for the Year 2,048 2,045 3 2,100Amount required for Capital Services for the Year 525 611 (86) 409Less Retained Revenue - Section 23A Financial Administration and Audit Act (1985) 525 611 (86) 409Amount provided for Capital Servicesfor the year 0 0 0 0GRAND TOTAL 2,048 2,045 3 2,100

Details of ExpenditureOUTPUTSCommercial Scientific Services 7,250 6,582 668 8,042Scientific Support for Research Centresand Community Support 1,275 1,309 (34) 425Total Recurrent Expenditure 8,525 7,891 634 8,467less Retained Revenue 7,148 6,483 665 6,702

1,377 1,408 (31) 1,765add adjustment for Cash Balances (note 2) 671 637 34 335Recurrent Expenditure 2,048 2,045 3 2,100

Capital Expenditure 525 611 (86) 409LESS Retained Revenue 525 611 (86) 409Capital Expenditure 0 0 0 0

GRAND TOTAL OF APPROPRIATIONS 2,048 2,045 3 2,100

NOTES(1) Explanations of variations between the current year estimates and actual results, and the actual results compared

with the immediately preceding year are set out in note 29.

(2) Adjustment for Cash Balances represented by 2000/2001 1999/2000Estimate Actual Actual

($'000) ($'000) ($'000)Increase/(Decrease) in Bank Account 146 29 26Capital Expenditure 525 611 409Proceeds on Sale of Assets 0 (3) 0(Increase) in Treasurer's Advance 0 0 (100)

671 637 335


25

Notes to Accounts

1 The Chemistry Centre (WA)'s objectives and funding

The Chemistry Centre's mission is to satisfy client expectations by being a leading provider of cost- effectiveanalytical, investigative, research and value added scientific services.

The Chemistry Centre (WA) is part funded by Parliamentary appropriation. It has a Retained RevenueAgreement set up under Section 23A of the Financial Administration and Audit Act 1985 for $6,350,000plus any additional amounts which may be earned. The amount of the net appropriation was $2,048,000. Itwas reduced to $2,045,000 during the year. It provides the following services on a fee for service basis:

* Chemical, * Mineralogical, * Metallurgical

and related Scientific Investigative and Advisory Services

The fees charged are determined by applying full cost accounting.

During the 12 months to 30th June 2001 the actual financial details were:

Gross Expenditure $7,382,000 Gross Revenue $5,337,000 Net Expenditure $2,045,000 Amount retained $5,337,000

2 Significant accounting policies

(a) General Statement

The financial statements constitute a general purpose financial report which has been prepared in accordancewith Australian Accounting Standards and UIG Consensus Views as applied by the Treasurer's Instructions.Several of these are modified by the Treasurer's Instructions to vary the application, disclosure, format, andwording. The Financial Administration and Audit Act and the Treasurer's Instructions are legislativeprovisions governing the preparation of financial statements and take precedence over Australian AccountingStandards and UIG Consensus Views. The modifications are intended to fulfil the requirements of generalapplication to the public sector together with the need for greater disclosure and also to satisfy accountabilityrequirements.

If any such modification has a material or significant financial effect upon the reported results, details of thatmodification and where practicable, the resulting financial effect is disclosed in individual notes to thesefinancial statements.

(b) Basis of accounting

The financial statements have been prepared in accordance with Australian Accounting Standard AAS 29 asmodified by Treasurer’s Instruction 1101A (where Australian Accounting Standards and UIG ConsensusViews are modified by Treasurer’s Instructions, any material or significant financial effects resulting are to bequantified where practicable and disclosed by way of note). The modifications giving rise to material orsignificant financial effects are:

The statements have been prepared on the accrual basis of accounting using the historical cost convention.Additions to non-current physical assets are stated at cost.


26

(c) Appropriations

Appropriations in the nature of revenue, whether recurrent or capital, are recognised as revenues in the periodin which the Chemistry Centre (WA) gains control of the appropriated funds. The Chemistry Centre (WA)gains control of appropriated funds at the time those funds are deposited into the Chemistry Centre (WA)’sbank account.

(d) Operating accounts

Amounts appropriated are deposited into the account and any revenues which are the subject of netappropriation determinations are also deposited into the account. All payments by the Chemistry Centre aremade from the operating account.

(e) Depreciation of non-current assets

All non-current assets having a limited useful life are systematically depreciated over their useful lives in amanner which reflects the consumption of their service potential. Depreciation is provided for on the straightline basis using rates which are reviewed annually. Useful lives for each class of depreciable asset are:

Plant 10 yearsOffice equipment 5 yearsComputer equipment 3 yearsScientific Equipment 7 - 10 years

(f) Employee entitlements

Annual and long service leave

These entitlements are calculated at current remuneration rates. The principles of AAS30 have been appliedin estimating leave entitlements.

Superannuation

Some staff contribute to the Superannuation and Family Benefits Act Scheme a defined benefit pensionscheme now closed to new members, or to the Gold State Superannuation Scheme defined benefit lump sumscheme now also closed to new members. All staff who do not contribute to either of these schemes becomenon contributory members of the West State Superannuation Scheme an accumulation fund complying withthe Commonwealth Government's Superannuation Guarantee (Administration) Act 1992 .

The superannuation expense comprises the following elements:

(i) change in the unfunded employer's liability in respect of current employees who are members of the Superannuation and Family Benefits Act Scheme and current employees who accrued a benefit on transfer from that Scheme to the Gold State Superannuation Scheme;

and

(ii) notional employer contributions which would have been paid to the Gold State Superannuation Scheme and the West State Superannuation Scheme if the Chemistry Centre (WA) had made concurrent employer contributions to those Schemes.

(g) Receivables, Payables, Accrued Salaries and Amount due to the Treasurer

Receivables are recognised as the amounts receivable as they are due for settlement no more than 30 daysfrom the date of recognition.

Collectibility of accounts receivable is reviewed on an ongoing basis. Debts which are known to beuncollectible are written off. A provision for doubtful debts is raised where some doubts as to collectionexists.


27

Accrued salaries suspense account consists of amounts paid annually into a suspense account over a period of10 financial years to largely meet the additional Cash Flows in each eleventh year when 27 pay days occur inthat year instead of the normal 26. No interest is received on this account.

Payables including accruals not yet billed are recognised when the Chemistry Centre (WA) becomes obligedto make future payments as a result of a purchase of assets or services. Accounts payable are generally settledwithin 30 days.

Accrued salaries represents the amount due to staff but unpaid at the end of the financial year as the end of thelast pay period for the financial year does not coincide with the end of the financial year.

The amount due to the Treasurer is in respect of a Treasurer's Advance, approval of which is renewed for eachfinancial year. The amount is therefore repayable within a maximum period of one year. No interest ischarged on this advance.

(h) Net Fair Values of Financial Assets and Liabilities

Net fair values of financial instruments are determined on the following base:

Monetary financial assets and liabilities not traded in an organised financial market - cost basis carryingamounts of debtors, accounts payable, and accruals (which approximate net market value)

(i) Inventory

Inventories are valued at the lower of cost and net realisable value. Costs are assigned on the weightedaverage method.

3 Outputs of the Chemistry Centre (WA)

The Budget for 2000/2001 was framed in terms of outputs, consequently financial reporting for the year isalso analysed in terms of outputs. The Chemistry Centre (WA) has two outputs:

1. Commercial Scientific Services Output

The provision of high quality independent chemical and scientific information and advice to governmentagencies and industry. The scientific services include the areas of agricultural, environmental, food,occupational health, racing, chemistry and forensic science.

2. Scientific Support for Research Centres and Community Projects

The provision of specialist high quality, independent chemical and scientific information and advice toCooperative and Special Research and projects which benefit the Western Australian Community.

Information about the outputs and the expenses and revenues which are attributable to those outputs are setout in the Outputs Schedule.

2000/01 1999/00($'000) ($'000)

4 External Clients

Private Sector Client Income 2,320 2,233Government Sector Client Income 3,126 2,936External Clients 5,446 5,169

5 Salaries

Salaries 5,005 4,794Change in annual and long service leave entitlements Redundancy Payments 225 0

5,230 4,794

6 Superannuation

Total expense for the year 537 682The liability for future superannuation benefits to be paidout was assumed by the government


28

Superannuation contributions have decreased due to expected futureeconomic changes as expected by the Government Superannuation Board

7 Depreciation

Office Equipment 4 5Computer Equipment 71 49Plant 4 4Scientific Equipment 331 324

410 382

8 Accommodation expenses

Expenses incurred during the year 0 0Resources received free of charge 292 292

292 2929 Administration expenses

Expenses incurred during the year 1,855 1,702Audit Fees in favour of Office of the Auditor General 10 10Bad Debts Written Off 1 2Resources received free of charge 310 228

2,176 1,942

10 Net Profit/(Loss) on disposal of non current assets

Profit on Disposal of Scientific Equipment 0 0Loss on disposal of Scientific Equipment 27 47Net Profit/(Loss) (27) (47)

Total proceeds from the disposal of non current assets 3 0

11 Appropriations

Revenues from Government provided through netAppropriation agreement (see note 2c) 2,045 2,100

12 Resources received free of charge

Administration ExpensesCorporate Services charge 48 48(The Department of Minerals and Energy provide some humanresources, purchasing and administrative support)

External Audit Fees - Office of the Auditor General 10 10Payroll Tax 262 180Accommodation expenses 292 292(Use of Building at 125 Hay Street East Perth)

612 530

13 Liabilities assumed by the Treasurer

Superannuation expense 537 682


29

14 Cash and amounts in suspense

Operating account 162 149Accrued salaries suspense account 114 98Cash on hand 1 1

277 248Accrued salaries suspense account is represented by a cash balance and is therefore equivalent to the net fairvalue.

15 Inventories

Stocks of unused consumables and stationery on hand arevalued at the lower of cost and net realisable value. 275 215

16 Receivables

Amounts owed by Service Consumers 604 492 less provision for doubtful debts (16) (16)

588 476

Debtors are required to be settled within 30 days

The Chemistry Centre (WA) does not have any significant exposure to any individual customer or counterparty

The Chemistry Centre (WA) considers the carrying amount of debtors approximate their net fair values

17 Prepayments

Administrative Expenses 19 9Equipment Maintenance Contracts 20 10

39 19

18 Property, plant, equipment and vehicles

Development costs relating to new laboratory 5 3

Office equipment

At cost 66 61

Accumulated depreciation (48) (43)

18 18

Computer Equipment

At cost 800 672


181 61

Scientific equipment

At cost 6,986 7,308

Accumulated depreciation (5,736) (5,912)

1,250 1,396

Plant

At cost 55 47


20 16

Total

At cost 7,912 8,091

Accumulated depreciation (6,438) (6,597)

1,474 1,494


30

Plant,equip,

vehicles

Officeequip

Buildingsunder

construction

Total

($'000) ($'000) ($'000) ($'000)2001 – Carrying amount at the start of the year 1,451 18 5 1,474 Additions 611 1 0 612 Disposals (31) 0 0 (31) Depreciation (406) (4) 0 (410)Carrying amount at end of year 1,625 15 5 1,645

2000 – Carrying amount at the start of the year 1,474 17 3 1,494 Additions 401 6 2 409 Disposals (47) 0 0 (47) Depreciation (377) (5) 0 (382)Carrying amount at end of year 1,451 18 5 1,474

19 Payables

Amounts payable for goods and services received 539Amount held for payment of GST 101Grants held in trust for research projects 183

823Accounts payable are generally settled within 30 days. The Chemistry Centre (WA) considers that thecarrying amount of accounts payable approximates their fair values.

Accrued expenses 12 0

20 Accrued salaries

Amounts owing for 6 working days from the 22nd June 2001 to the30th June 2001

108 105

(2000 – 23rd June 2000 to 30th June 2000 6 working days)

Accrued salaries are settled within a few days of the financial year end. The Chemistry Centre (WA)considers that the carrying amount of accrued salaries is equivalent to the net fair value.

21 Employee entitlements

Current liabilitiesLiability for annual leave 152 170Liability for long service leave 425 459

577 629Non-current liabilitiesLiability for long service leave 354 332

931 961

The Chemistry Centre (WA) considers that the carrying amount of provision for employee entitlementsapproximates the net fair value.

22 Amount due to the Treasurer

Amounts advanced 1,200 1,200

The Chemistry Centre (WA) considers that the carrying amount of the Amount due to the Treasurer isequivalent to the net fair value.


31

23 Equity

Equity represents the residual interest in the net assets of the Chemistry Centre (WA). The Government holdsthe equity interest on behalf of the community.

Accumulated SurplusBalance at the beginning of the year (218) (560)Change in net assets resulting from operations (32) 342Balance at the end of the year (250) (218)

24 Reconciliation of net cash used in operating activities to operating profit/(loss).

For the purposes of the Statement of Cash Flows , cash has been deemed to include cash on hand and amountsin suspense.

Net cash from operating activities (Statement of Cash Flows) (1,408) (1,765)

Increase/(decrease) in accounts receivable 112 (322)Increase/(decrease) in prepayments 20 (4)Increase/(decrease) in accrued expenses (12) 0Increase/(decrease) in inventories 60 (3)Net Loss on sale of assets (27) (47)(Increase)/decrease in accounts payable (439) 777Depreciation (410) (382)(Increase)/decrease in accrued salaries (3) (42)(Increase)/decrease in liability for employee entitlements 30 30Funds provided by Government (Net Appropriation) 2,045 2,100Net Profit/(Loss) (32) 342

25 Operating Lease Commitments

Scientific equipment

Amounts due not later than one year 26 24Later than one year and not later than five years 54 80Later than five years 0 0

26 Remuneration of Senior Officers

The number of Senior Officers whose total of fees, salaries and other benefits received, or due and receivable,for the financial year, who fall within the following bands is:

$ 2000/01 1999/00

90,001 - 100,000 3 3100,000 - 110,000 1 1

The total remuneration of Senior Officers is ($'000's): 409 388

Retirement Benefits

The following amounts in respect of retirement benefits for SeniorOfficers were paid or became payable for the financial year:

0 0

Total notional contributions by Senior Officers to Gold StateSuperannuation Scheme and West State Superannuation Scheme.

98 115

One senior officer is a member of the Superannuation and Family Benefits Act Scheme. (1999/00: 1)


32

27 Summary of research trusts

The following moneys are held on behalf of various institutions for which the Chemistry Centre (WA)performs various specified research projects.

Opening Balance 19 7

Revenue received during the year 570 241Money spent on research during the year (406) (229)

Closing balance 183 19

This money is held as a liability in Accounts Payable

28 Supplementary Financial Information

(Amounts shown to nearest $) ($) ($)

Public and other property, revenue and debts due to the state, written off in accordance with Section 45 of theFinancial Administration and Audit Act by:

The Accountable Officer 1,133 1,589 The Minister 0 0

Analysis of losses written offBad Debts 1,133 1,589

29 Explanatory Statement

The Summary of Consolidated Fund Appropriations and Revenue estimates discloses appropriations and other statuesexpenditure estimates, the actual expenditures made and revenue estimates and payments into the Consolidated Fund, all on acash basis. The following explanations are provided in accordance with Treasurer’s Instruction 945. Significant variations areconsidered to be those greater than 10%.

(i) Significant variations where actual expenditures exceeded or were less than estimates for the financial year

2001Estimate

2001Actual

Variation

($'000) ($'000) ($'000)Commercial Scientific Services 7,250 6,582 668

A major new project was expected to begin (an investigation intobiodiversity). Unfortunately this has been deferred indefinitely.

(ii) Significant variations between actual outputs for the financial year and outputs for the immediately preceding financialyear.

2001 2000 Variation($'000) ($'000) ($'000)

Commercial Scientific Services 6,582 8,042 1,460

The reduction is caused by more accurate identification of the costs for thetwo outputs.

Scientific Support for Research Centres and Community Support 1,309 425 884

The increase is caused by a more accurate identification of the costs of theoutputs. Previously the figures had been capped at a figure unrealisticallylower.


33

30 Additional Financial Instruments Disclosures

Interest rate risk exposure

The Chemistry Centre (WA)'s exposure to interest rate risk, repricing maturities and the effective interestrates on financial instruments are:

30 June 2001 Non Interest Bearing2000/01 1999/00

Assets ($'000) ($'000)

Cash resources 277 248Accounts receivable 588 492

Total financial assets 865 740

LiabilitiesAccounts payable 823 365Accrued salaries 108 105Employee entitlements 931 961

Total financial liabilities 1,862 1,431

Net financial assets/(liabilities) (997) (691)

Credit Risk Exposure

All financial assets are unsecured.

Amounts owing by other government agencies are guaranteed and therefore no credit risk exists in respect ofthose amounts. In respect of other financial assets the carrying amounts represent the Chemistry Centre(WA)'s maximum exposure to credit risk in relation to those assets.

The following is an analysis of amounts owing by other government agencies:

Western Australian Government agencies 121 186Government agencies of other jurisdictions 15 16Total 136 202

31 Contingent Obligations

At reporting date the Chemistry Centre (WA) was unaware of any contingent obligations or liabilities notalready stated.

32 Events occurring after Reporting Date

On July 1, 2001 the Chemistry Centre became a Division of the Department of Mineral and PetroleumResources. The assets and liabilities of the Chemistry Centre were transferred at book value to theDepartment of Mineral and Petroleum Resources at that date. This event has no effect on the financialstatements of the Chemistry Centre at 30 June 2001.

33 Related Bodies

The Chemistry Centre (WA) had no related bodies as defined in the Financial Administration and Audit Act1985 and Treasurer’s Instruction 951.

34 Affiliated Bodies

The Chemistry Centre (WA) had no affiliated bodies as defined in the Financial Administration and Audit Act1985 and Treasurer’s Instruction 951.

annual report 2000/01 - parliament of western australia

Documents