annual report - parliament.qld.gov.au · mrclarke is a director of mcgees property, brisbane....

Annual Report30th June 2011

Committed to fosteringprofessional excellence

of registered valuersin Queensland

Valuers Registration Board of Queensland

ANNUAL REPORT 2010 - 2011

INDEX TO REPORT

Chairperson's Address

Introduction

Objectives

Jurisdiction and Responsibility

Members of the Board

Secretary to the Board / Administration

Finance

Registrations

Table 1- Number of Registered Valuers / Breakup of Registrations

Table 2 - Retired / Deceased / Cancelled

Mutual Recognition

Board Meetings

Complaints

Table 1- Complaints - 2006 through to 2009

Table 2 - Complaints - 2010 through to 2011

Educational Support

Rural/Regional Activities

Regulation of Valuation Profession

Communication

Strategic Plan

Right to Information

Whistleblowers Protection Act 1994

Public Interest Disclosure Act 2010

Public Sector Ethics Act 1994

Carers (Recognitionl Act 2008

Office

Publication of the Annual Report

Financial Statements

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Chairperson's Report

On behalf of the Valuers Registration Board of Queensland [the Board], I present its Annual Report for the2010/2011 financial year.

The Board has ensured it properly administered the Act to the best of its ability and has continued tomaintain the Strategic Plan which will be reviewed in October 2011.

We held a workshop for our Investigators which was facilitated by Mark Healy, Barrister at law. Apart fromdiscussing issues that have arisen during investigations, Mr Healy provided detailed content for the writingof the report. It is essential that our Investigators are kept abreast of changes in legislation and are able toget the appropriate assistance required for providing comprehensive written reports on theirinvestigations.

Our first disciplinary matter was filed with QCAT and this has been a learning curve for the Board. As well, acomplainant made application to QCAT to challenge a disciplinary decision of the Board but this applicationwas struck out.

To continue with our communication with stakeholders, the Board met with representatives from ruralvaluation firms to discuss the role of the Board and any issues the Board needed to be made aware of. TheBoard also met with representatives of the Australian Property Institute (API) to discuss issues facing theprofession in general.

Each year the Board adopts the list of courses it will accept from those accredited by the API. This year theBoard clarified their acceptance of post-graduate courses which alone did not meet the academicrequirements for registration.

There has been a decline in the number of applicants to be interviewed for registration, however, theBoard has approved double the number of applications for registration under the Mutual Recognitionreciprocity.

The Board continued with its sponsorship of valuation courses with the five Universities in Queensland, andon occasion attended ceremonies to present awards to recipients.

I wish to express my appreciation and thanks to all Board Members for their commitment and acknowledgethe dedication of the Secretary and office staff during the year.

I offer this Annual Report as a record of the Board's achievement for the 2010/2011 financial year and itsfuture direction with commitment to the industry and the profession.

Greg ClarkeCHAIRPERSON

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Introduction

The Valuers Registration Board of Queensland was established in 1965 by the Valuers Registration Act1965. The current legislation is the Valuers Registration Act 1992 and the Valuers Registration Regulations2003.

Queensland retains a system of registration of valuers and approval of Specialist Retail Valuers. Annualrenewal of a valuer's registration is dependent on providing documentary evidence of their compliancewith continuing professional development (CPD) standards.

The number of persons seeking registration as valuers has diminished slightly over the past year, with alarger number of applicants seeking registration through Mutual Recognition, predominantly from NewSouth Wales.

The number of new complaints being received remains constant. The Board currently retains a panel of 7investigators to investigate these complaints. The Board provides ongoing support and training to keepInvestigators abreast of changes in legislation and assist with issues that may arise from investigations.

The Board's focus continues to be on the highest standards of education, experience for graduates seekingregistration and report writing, ensuring that the technical content and market reconciliation isappropriate.

Objectives

The Board's objectives are to provide a measure of protection for the public and to maintain the standardof valuers in Queensland by monitoring the registration, education, experience and professional conductrequirements.

To reflect these objectives the Board will continue to adopt the following mission statement.

"Committed to fostering professianal excellence af registered valuers in Queensland"

Jurisdiction and Responsibility

Subject to the Minister, the Board administers the Valuers Registration Act 1992.

The primary function of the Board is the protection of the public through the registration of valuers of landin this State. The Board consequently liaises closely with education bodies to ensure a high academicstandard is maintained. The Board has established policies for the assessment of all applicants under theAct in order to ensure that applicants have obtained sufficient practical valuation experience over a periodof at least three years from commencement of an approved course of study.

Section 43 of the Act provides procedures for the public to lay complaints against registered valuers andthe appointment of an independent person to investigate such complaints. Since the introduction of theQueensland Civil and Administrative Tribunal (QCAT), the Board can refer more serious disciplinary mattersto QCAT for resolution. The valuer also has the option to have the matter referred to QCAT.

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The Board is concerned that those persons practising as valuers do so in a proper and competent mannerand do not undertake valuations which are outside their area of professional competence. The Boardreinforces this issue with new applicants when they are interviewed by the Board.

The Board is required to maintain a list of Specialist Retail Valuers comprising the names of registeredvaluers considered by the Board to have sufficient retail rental experience to competently determine rentaldisputes.

The number of Specialist Retail Valuers has diminished over the years with only 27 remaining on theBoard's approved list.

Members of the Board

The membership of the Board at 30 June 2011 was:

[a] A nominee, who is a valuer, of the Chief Executive, Department of Environment & ResourceManagement;

[bl Two registered valuers, one of whom is to be appointed from names submitted by theAustralian Property Institute;

[c] Two nominees, from business} community or professional organisations.

The members of the Board at 30 June, 2011 were:

Gregory ClarkeChairperson

Vern DiSalvoMember

Brett McAuliffeMember

Peta PerrlngMember

Vanessa BrewlsMember

Registered ValuerMr Clarke is a Director of McGees Property, Brisbane. Mr Clarke wasappointed Chairperson of the Board on 23 April 2009.

Registered ValuerMr DiSalvo is the representative of the Valuer-General and was appointeda Member of the Board on 1 July 2011.

Registered ValuerMr McAuliffe is the Director of McAuliffe Property Services Pty Ltd. MrMcAuliffe has served as an Assistant Member since January 2003 and wasappointed a Member of the Board on 17 December 2007.

lawyerMs Perring is a corporate lawyer currently working in house at ErgonEnergy and was appointed a Member of the Board on 30 October 2008.

Accountant/Business OwnerMs Brewis is a Chartered Accountant and business owner and wasappointed a Member of the Board on 30 October 2008.

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The Board is also supported by two Assistant Members appointed from nominees of registered valuersfrom the Australian Property Institute and the Real Estate Institute of Queensland, appointed by theGovernor in Council by Gazette notice. The Board is able to call upon these Assistant Members when aMember is unavailable to attend meetings.

The Assistant Members at 30 June 2011 were:

Jeremy AptedAssistant Member

Allen CrawfordAssistant Member

Registered ValuerMr Apted is a Director of Advisory at Jones Lang LaSalle and was appointedan Assistant Member to the Board on 17 December 2007.

Registered ValuerMr Crawford a Director of Chesterton Corporate Property Advisors and wasappointed an Assistant Member to the Board on 23 April 2009.

Secretary to the Board / Administration

The Board is supported by the following staff members:

Secretary to the Board

Assistant Secretary

Administration Officer

Finance

Julia French - 20 September 1993 to present

Rebecca Hall-Waters - 15 October 2007 to present

Carmel Ucchino - 8 March 2004 to present

The Board does not receive any Government funding. All fees collected by the Board are paid into theBoard's account and not consolidated revenue. The Board pays all of its expenses from these accounts.The Board has in previous years accumulated funds so that it is able to meet expenses for complaintinvestigations and possible litigation. These funds are invested in a term deposit with Queensland TreasuryCorporation.

At 30 June 2011 the fees charged by the Board were:

Application / Roll Fee - $181.80 Late Fee - $52.30 Certificate Fee - $52.30

An increase in fees occurred on 1 August 2010 and this was in line with CPI. At present, the current fees areadequate to maintain the financial viability of the Board.

Previously, the costs which related to investigation of certain complaints were able to be recovered. Withthe more serious matters now being referred to QCAT, it is unlikely the Board will hold DisciplinaryHearings.

For matters referred to QCAT, there is an element of uncertainty whether the Board's costs can berecouped. In these instances the Board may incur considerable costs, including investigation and legalcosts, in the drawing of an application and representation at QCAT.

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The Board is audited annually by the Queensland Audit Office and an Independent Audit Report from theAuditor-General of Queensland forms part of the financial statements included in this Annual Report.

Registrations

Legislative Requirements - Qualifieations for Registration as a ValuerSection 30 of the Valuers Registration Act 1992 states:

The board is to register a person as a valuer if the person makes application under section 29 andsatisfies the board that the person-(a) is of good fame and character and is a fit and proper person to be registered as a valuer; and(b) either-

(i) holds a certificate of competence recognized by the board and issued by a prescribedinstitute; or

(ii) has passed an examination approved by the board; and(c) has had sufficient practical experience over a period of at least 3 years since starting an

approved course of study to enable the person to competently value land in Queensland.

At 30 June 2010, 1,565 valuers were registered for the State of Queensland. During the current financialyear 74 new registrations were approved and 17 valuers had their registration restored having previouslybeen removed from the register for non-payment of fees.

One applicant was refused registration under s29(7) of the Act as the Board did not consider the applicantwas competent to value land in Queensland, and the sample valuation reports submitted as part of theapplieation were not of an adequate standard.

One applicant was also refused approval as a Specialist Retail Valuer as the Board considered the applicanthad insufficient knowledge of Queensland Legislation of the Retail Shop Leases Act 1994 and Retail Shopleases Regulation 2006; no experience in the Queensland retail market; and an inadequate understandingof retail methodology.

The names of 89 valuers were removed from the register for various reasons including death, retirement ornot having paid the statutory fee and/or provided documentary evidence of their CPO Compliance by theprescribed date.

Of the 74 approved applications for registration, 24 had passed an approved examination and wereinterviewed by the Board. 49 applicants were registered under the provisions of the Mutual RecognitionAct 1992, and 1 was registered under the provisions of the Trans Tasman Mutual Recognition Act 1997.

A small number of valuers who did not renew their registration for the year are no longer practisingvaluation, choosing to work in a different capacity, and not complying with the CPD requirements under theAct.

Prior to 14 February 1970, it was possible for persons who had been in the valuation field, to gainregistration on the premise of experience only. During the early years of registration, these valuers madeup the large majority of registrations. However, over the intervening years, with natural attrition, thenumber of valuers registered without academic qualifications has decreased to 8.

At 30 June 2011 there were 1,567 valuers registered lor the State 01Queensland, and 27 Specialist RetailValuers on the Board's approved list.

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The following chart incorporates the total number of valuers registered for the year, including mutualrecognition, refused and restored applications from 2007 through to 2011.

2007 1415 55 60 3 15

2008 1487 61 78 0 22

2009 1547 47 67 0 31

2010 1565 56 59 1 15

2011 1567 24 50 1 17

The chart below shows the number of valuers who are retired / deceased or have had their registrationcancelled from 2007 through to 2011.

2007

2008

2009

2010

2011

Mutual Recognition

45

25

36

42

26

61

62

49

69

63

On 1 March 1993, the provisions of the Mutual Recognition Act 1992 took effect. Any person who hasunrestricted registration as a valuer in New South Wales or Western Australia [the only other States inAustralia that continue to maintain registration of valuers] is eligible to be registered in another State uponmaking application. However, these applicants are not required to attend before the Board for aninterview or submit samples of their work prior to registration.

The number of applicants applying for registration through Mutual Recognition still concerns the Board.There were more than double the number of valuers registered under this process than through the normalinterview process, and the majority of these applicants were from NSW.

The significant differences between the qualifications and experience of persons registered in Queenslandand persons registered in N5W are:

1. Queensland requires applicants to have a minimum of an undergraduate degree, 2 years practicalexperience, provide samples of their work and attend before the Board for an interview;

2. N5W only requires a TAFE qualification, no practical experience component, no interview process.

The result of this cross border mobility allows persons with significantly less educational and no practicalexperience in valuing land in Queensland to come to Queensland and hold themselves out to the public as aregistered valuer. This also allows Queenslanders who do not meet the high requirements for registrationof first time applicants to be registered in NSW and then be mutually recognised in Queensland.

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The Board believes that there is a significant cost to the community through the inevitable lowering ofstandards within the valuation profession. While the Board accepts and embraces thefundamental desirability of professional mobility throughout Australia, it is concerned that the regime ofequivalence has led to a reduction in standards of the valuation profession in Queensland.

The Board has always considered practical experience to be an essential part of a valuers training, andwithout it these valuers present a risk to the public and to the valuation profession. The Board, as well asthe Australian Property Institute, strive to maintain the education level of all new applicants to that ofUniversity standard.

This education is currently provided by The University of Queensland, Queensland University ofTechnology, Central Queensland University, Bond University and the University of the Sunshine Coast.

It is essential to the valuation profession in Queensland that the high standard for registration of valuersis retained.

Board Meetings

11 Board Meetings were held during the year. 60 applicants were interviewed for registration and oneapplicant was interviewed for Listing as a Specialist Retail Valuer. All applicants were required to submitdetailed samples of valuations. In addition to examining the evidence of an applicant's practical valuationwork, the Board further investigates his/her fitness to practice as a Valuer.

There were 5 Special Meetings held during the year, predominantly to deal with complaint matters.

There has not been any overseas travel undertaken during the year by Board Members on behalf of theBoard. Travel has been for attendance at Board meetings in Brisbane and Austraiian Property InstituteConferences held throughout the State.

The following is a record of attendance by Board Members and Assistant Members at these meetings.

Greg Clarke 11 10 5 5 20/12/2002 22/04/2012Vern DiSalvo 11 9 0 0 1/07/2011 30/06/2013Brett McAuliffe 11 11 5 3 20/12/2002 30/06/2013Peta Perring 11 9 5 5 30/10/2008 29/10/2011Vanessa Brewis 11 9 5 3 30/10/2008 29/10/2011Jeremy Apted 2 2 0 0 17/12/2007 30/06/2013Allen Crawford 1 1 0 0 23/04/2009 22/04/2012

Complaints

Under sections 43 and 44 of the Act, procedures exist for the public to lay complaints against registeredvaluers and the appointment of an independent person to investigate such complaints.

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Changes were made to the legislation with the introduction of the Queensland Civil and AdministrativeTribunal (QCAT) on 1 December 2009.

Under the current legislation, once the Investigator's report has been received, if the Board reasonablyconsiders a valuer has engaged in professional misconduct or incompetence or negligence in the person'sperformance as a valuer, the Board can either forward the matter to QCAT to decide or if it considers thematter does not warrant referral to QCAT, initiate disciplinary procedures.

The Board has the power to do one or more of the following:

1. admonish or reprimand the valuer;2. order the valuer to give an undertaking to abstain from particular conduct;3. impose a penalty of an amount equal to not more than 20 penalty units.

The following tables incorporate the number of complaints and action taken from 2006 to 2011. Table 2incorporates the introduction of QCAT at 1 December 2009.

Table 1

05/06 6 3 3 0 0 0 0

06/07 23 18 5 0 0 0 0

1 x Reprimand07/08 20 15 5 2 1 x Severe Reprimand 1 x $750 0

08/09 14 8 6 1 2 x Reprimand 1 x $7,500 3 mths

Table 2

During the 2010/2011 year, 16 new complaints were received and independent Investigators wereappointed under Section 44 of the Act to investigate 4 of the complaints. Disciplinary action was only takenin one instance.

As can be seen from both tables, several matters, although investigated, were completed with no actionbeing taken against the valuer.

One matter from 2006 is ongoing, with an application currently being drafted for lodgement with QCAT.The 2 matters referred to QCAT during the previous year are still ongoing and there are 2 matters from the2010/11 year that are yet to be completed.

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Educational Support

The Board awards a single prize to the outstanding student in the second year of the Real Estate ValuationCourse at five Universities throughout the State and this practice has continued for the 2010 calendar year.Representatives of the Board attended the awards ceremonies of these Universities to present prizes to thefollowing recipients:

The University of QueenslandQueensland University of TechnologyCentral Queensland UniversityUniversity of Sunshine CoastBond University

- Mr Lucas Brine- Mr James Faster- Mr Hayden Lynam

- Ms Frances Martin- Mr MattJabsan

The Board provides financial support to the CPD Program of the Queensland Division of the AustralianProperty Institute and continues to provide this support as it considers this program a necessity for keepingvaluers up to date with their professional development.

The Australian Property Institute held conferences during the year throughout Queensland. The Board wasa major sponsor of the North Queensland Property Conference held in Townsville in July 2010, theQueensland Property Conference held at the Gold Coast in October 2010, and the Rural PropertyConference held in Hervey Bay in March 2011.

Members of the Board, the Secretary and Assistant Secretary attended these conferences and wereavailable to discuss issues with the members present.

Rural/Regional Activities

The Board issued one Newsletter during the year on matters of interest to Registered Valuers includingtopics such as Assessing an Applicant's capability to be registered; Update on Laws governing the ValuationProfession; Valuation Reforms; and recent Disciplinary Decisions.

Applicants are interviewed at the Board's office in Brisbane. However, the Board will interview applicantsin regional areas when appropriate.

Representatives of the Board addressed the Australian Property Institute Gold Coast conference and TheUniversity of Queensland Property Day. The Chairperson also met and addressed Australian PropertyInstitute members throughout the year at functions on issues relevant to the profession.

Regulation of the Valuation Profession

The Board continues to maintain an overview of the regulation of the valuation profession both in Australiaand overseas in order to be able to inform the Government in the future when matters regarding theregulation of the profession and associated industries and business require input.

This proactive approach by the Board is to ensure that Queensland is informed as to the nature ofregulatory best practice and how it is applied. It is the Board's intention to maintain a watching brief on theregulation of the valuation profession and other associated professions.

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Communication

The Board is conscious of the need to ensure the community is aware of the services it provides. The Boardis currently updating its brochure that deals with the role of the Board, the registered valuer, consumerprotection, complaints and the role of the Investigator.

The Board's website enables it to post details of registered valuers, policy, procedures, newsletters,disciplinary hearing outcomes and other items of interest. Our website became operational in 2004 and iscurrently being remodelled.

The site is essential to allow access by the public to the current list of Registered Valuers for independentvaluations and also the list of Specialist Retail Valuers approved by the Board, and simply to check thestatus of a valuer's registration. The website also allows professionals, students and graduates, financialinstitutions and the public to access articles of interest.

During the year the Board met with industry professionals and the Australian Property Institute to discussissues facing the profession and to ensure the Board is carrying out its role in an appropriate manner.

Strategic Plan

The Board reviews compliance with its Strategic Plan on a monthly basis and this plan will be reviewed inOctober 2011. As part of our Strategic Plan, the Members of the Board and staff have undergone specialisttraining to ensure we are complying with corporate governance requirements.

Outlined below is the Board's current Strategic Plan:

aJ Effective implementation of the Actb] Improve communication with stakeholderscJ Maintaining a high degree of professionalism / excellencedJ Improve handling and response to complaintseJ Foster professional excellence.

Right to Information

The Secretary to the Board is the contact person for matters relating to Right to Information.

Whistleblowers Protection Act 1994

The reporting of suspected wrongdoing is essential to the integrity of the public sector in Queensland.

Under the Whistleblowers Protection Act 1994, special protection is given to public office in regard todisclosures about unlawful, negligent or improper public sector conduct or danger to public health or safetyor the environment.

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For the period 1 July 2010 to 31 December 2010, there was one application received under this Act inregard to a complaint. On advice sought from Crown Law, and based on the material provided to theBoard, the complainant had not made a public interest disclosure as defined in the Whist/eblowersProtection Act 1994.

Public Interest Disclosure Act 2010

The Whist/eblowers Protection Act 1994 was replaced by the Public Interest Disclosure Act 2010 with acommencement date of 1 January 2011.

Under this Act, there have been no disclosures during the period 1 January 2011 to 30 June 2011.

Public Sector Ethics Act 1994

The Board's Code of Conduct provides a measure against which the behaviour of Board members andemployees can be assessed to ensure the appropriate standard of ethical behaviour in the conduct of theiractivities. It forms the basis for quality assurance audits of the activities of the Board. The Code of Conductis reviewed and updated, as appropriate to ensure Board Members and staff are given access to educationand training about public sector ethics.

The administrative procedures and management practices of the Board have proper regard to this Act and,in particular, the ethics principles and values, and the Boards approved Code of Conduct.

Carers (Recognition) Act 2008

Section 9 of the Carers (Recognition) Act 2008 states that:

(1) a public authority must ensure the authority and its officers and employees-(a) have an awareness and understanding of the Queensland carers charter; and(b) take action to reflect the principles of the charter in providing services of the authority whichaffect carers and the person they care for.

(2) Also a public authority must consult with the representative bodies that the authority is satisfiedrepresent the carers affected when making strategic policy or planning decisions relevant to carersand the persons they care for.

Carers

The Board has ensured that its officers and employees have awareness and understanding of the CarersCharter included within the Carers (Recognition) Act 2008. The Board confirms there are currently no Carersin its employment. If required the Board would take action to reflect the principles of the charter inproviding services of the authority which affect Carers and the persons they care for.

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Office

The Board's office is located at:-

Postal address:Telephone:Facsimile:Email:Web Address:

Publication of the Annual Report

Level 2 The Mansions, 40 George Street, BRISBANE QLD 4000

PO Box 15877, CITY EAST QLD 400207 - 3221389207 - 3221 [email protected]

www.valuersboard.gld.gov.au

A copy of this Annual Report will be made available on the Board's website, distributed to a number of keystakeholders and will be available from the Board's office.

Financial Statements

The Financial Statements of the Board were examined by an Audit Inspector of the Queensland Audit Officeand an unqualified audit report issued.

The complete set of Financial Statements including:

• Statement of Comprehensive Income for the year ended 30 June 2011;

• Statement of Financial Position as at 30 June 2011;

• Statement of Changes in Equity for the year ended 30 June 2011;• Statement of Cashflows for the year ended 30 June 2011

and the notes accompanying the above set of Financial Statements are included in this report.

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VALUERS REGISTRATION BOARD OF QUEENSLAND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2011

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VALUERS REGISTRATION BOARD OF QUEENSLANDStatement of Comprehenslvslncomefor the year ended 30 June 20f 1

Notes 2011 2010$ $

Income from Continuing Operations

Revenue

Roll fees 318,595 314,201

Interest 22,774 16,711

Application and certificate fees 20,389 26,463

Other revenue 2,060 34,655

Total Income from Continuing Operations 363,818 392,030

Expenses from Continuing Operations

Employee expenses 2 152,778 160,548

Professional fees 3 11,784 12,867

Board members' fees 15,063 31,118

Prizes, donations & sponsorships 21,136 24,136

Complaint management 77,139 40,451

Rent expense 25,929 25,523

Printing & stationery 7,845 10,681

Postage and Telephone 8,785 9,807

Public Relations 5,552 6,881

Depreciation 1,889 1,889

Other expenses 4 31,247 23,494

Total Expenses from Continuing Operations 359,147 347,395

Operating Result from Continuing Operatione 4,671 44,635

Total Comprehenslvs Income 4,671 44,635

The accompanying notes form part of these statements.

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VALUERS REGISTRATION BOARD OF QUEENSLANDStatement of Financial Positionas at 30 June 2011

Notes 2011 2010$ $

Current AssetsCash assets 5 564,323 561,366Receivables 6Cabcharge Bond Held 200 200

Total Current Assets 564,523 661,566

Non-Current AssetsProperty, plant & equipment 6 1,169 3,058

Total Non-Current Assets 1,169 3,058

Total Assets 565,692 564,624

Current LiabilitiesPayables 7 9,640 14,134Accrued Employee Benefits 8 8,220 10,830

Total Current Liabilities 17,860 24,964

Non·Current LiabilitiesAccrued Employee Benefits 8 37,384 33,883

Total Non-Current Liabilities 37,384 33,883

Total Liabilities 55,244 58,847

Net Assete 510,448 505,777

EquityContributed equity 181,342 181,342

Accumulated Surpluses 329,106 324,435

Total Equity 510,448 505,777

The accompanying notes form part of these statements.

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Accumulated Surpluses Contributed Equity TOTAL2011 2010 2011 2010 2011 2010

$ $ $ $ $ $324,435 279,800 181,342 181,342 505,777 461,142

4,671 44,635 - - 4,671 44,635329,106 324,435 181,342 181,342 510,448 505,777

Balance as at 1 JulyOperating Resul! from Continuing OperationsBalance as at 30 June

VALUERS REGISTRATION BOARD OF QUEENSLANDStatement of Changes in Equityfor the year ended 30 June 2011

rThe accompanying notes form part of these statements.

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VALUERS REGISTRAnON BOARD OF QUEENSLANDStatement of Cash Flowsfor Ihe year ended 30 June 2011

Noles 2011 2010$ $

Cash flows from operating activitiesInnows:Roll rees 318,595 314,128Interest 22,774 16,711Application and certificate fees 20,389 26,463Other revenue 2,060 34,655GST input tax credits received 18,954 14,060Outflows:Employee expenses (156,452) (147,445)Professional fees (11,784) (12,667)Board members' fees (15,063) (32,634)Prizes, donations & sponsorships (21,136) (24,136)Complaint management (77,139) (40,451)Rent expense (25,929) (25,523)Printing & stationery (7,845) (10,681)Postage and Telephone (8,765) (9,607)Public Relations (5,552) (6,661)Other expenses (32,477) (28,577)GST Paid (17,653) (15,026)Net cash prOVided by (used in) operating activities 9(b) 2,957 51,767

Cash flows from investing activitiesOutflows:Payments for property, plant and equipmentProceeds from investmentsPayments for investmentsNet cash provided by (used in) investing aclivllies

Net increase (decrease) in cash and cash equivalents 2,957 91,766Cash and cash equivalents at beginning of financial year 561,566 469,796

Cash and cash equivalents at end of financial year 9(a) 564,523 561,566

The eccompanying noles form part of these slatements.

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VALUERS REGISTRATION BOARD OF QUEENSLANDNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2010·11

Objectives and Principal Activltle. of the BoardThe objectives of the Valuers RegistraUon Board of Queensland afe to provide a measure of protection for the public and to maintainthe standard of valuers in Queensland by monitoring the registration, education, experience and professional conduct requirements,To reflect these objeclives lhe Board continues to adopt the following mission statement"Committed to fostering professlona/e".e"en.e ofregistered valuers in Queensland"

1 Summary of Significant Accounting Policies

(a) Statement of Compliance

The Board has prepared these financial statements in compliance with section 43 of the Financial and Performance ManagementStandard 2009.

The financial report Is a general-purpose financial report and has been prepared on an accrual basis in accordance with AustralianAccounting Standards and Interpretah·ons. In addition, the financial statements comply with the Treasurer's Minimum ReportingReqUirements for the year ending 30 June 2011, and other authoritative pronouncements.

With respect to compliance with Australian Accounting Standards and Interpretations, the Board has applied those requirementsapplicable to not-far-profit entities, as the Board is a not-far-profit Statutory Body. Except where stated, the historical cost convention isused.

Accounting policIesUnless othelWise stated, alf accounting policies applied are consistent with those of the prior year. Where appropriate, comparativefigures have been amended to accord with current presentation and disclosure made of material changes to comparatives.

Classification between current and non-currentIn the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liabilityis expected to be realised or paid. The asset or liability is classified as current if it is expected to be turned over within the next twelvemonths, being the Board's operational cycle.

RoundingUnless otherwise stated, amounts in the report have been rounded to the nearest dollar. Sub totals and totals may not add due torounding, but the overall discrepancy is not greater than two.

[bl Funding of Board's Operations

Roll Fees of $181.80 per annum are levied by the Board on each valuer registered under the Valuers Registration Act 1992 so as toprovide, together with other receipts, sufficient funds to finance the operations of the Board for the year.

Roll fees are recognised as revenue when received.

[e] Property, Plant & Equipment

Property, plant and equipment items with a purchase price greater than $5000 and a useful life of more than one year are recognised asan asset. All other items of property, plant and equipment are expensed on acquisition.

Depreciation on property, plant and equipment Is calculated on a straight-line basis so as to write-off the cost of each depreciable assetprogressively over its estimated useful life to the Board.

Depreciation periods are fisted below and are consistent with the prior year:Office Equipment: 10 ~ 15 yearsComputer Equipment: 4 years

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VALUERS REGISTRATION BOARD OF QUEENSLANDNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS 2010-11

1 Summary of Significant Accounting Policies (cont)

[d] Receivable.

Receivables comprise amounts due from imposition of fines and costs as a result of dIsciplinary action and afe recognised and carried atoriginal amount The receivable is recognised when a court order has been made or a decision of the Board and any specific action tofollow up on this if required is taken up through the State Penalties Enforcement Registry_

An allowance for doubtful debts is made when there is objective evidence that the Board will not be able to collect the debts. Bad debtsafe writlen offwhen identified.

[e] Cash and Cash Equivalents

For the purposes of the Balance Sheet and the Cash Flow Statement, cash assets include all cash and cheques receipted but notbanked at 30 June as well as deposits at call with financial institutions. Investments are measured at cost. Interest revenue Isrecognised as received.

[I] Employee Benefits

Annual leave

Annual leave entitlements are accrued on a pro rata basis in respect of services provided by employees up to balance date and areprOVided for at their nominal value.

long service leavelong service leave entitlements are assessed at balance date having regard to current employee remuneration rates and other factorsIncluding accumulated years of employment, future remuneration levels, and experience of employee departure per year of service.Long service leave expected to be paid in the next 12 months is recorded as a current liability in the Balance Sheet at its nominal value.long service leave expected to be paid later than one year has been measured at the present value of the estimated future cashoutflows to be made for these entitlements accrued to balance date and recorded as a non-current liability. Relevant CommonwealthBond Rates are used for discounting future cash flows.

Superannuation

Employer superannuation contributions are paid to the employee's superannuation funds. Contributions are expensed in the period inwhich they are paid or payable. The Board's obligation is limited to its contribution to each of the funds.

[g) Taxallon

The activities of the Board are exempt from Commonwealth taxation except for Fringe Benefits Tax (FBT) and Goods and Services Tax(GST). The Board is exempt from charging GST on Registration Fees. Input tax credits receivable from the Australian Taxation Officeare recognised and accrued.

(h) Issuance of Flnenclal Statements

The financial statements are authorised by a resolution of the Board for issue by the Chairman and Secretary at the date of signing theManagement Certificate.

(i) New standards and interpretations not yet adopted

The AASB has issued new and amended accounting standards and interpretations that have mandatory application dates for future

20


2011 20102 Employee expenses $ $Employee BenefitsWages and salaries 139,510 146,891Employe~s superannuation contribution 13,003 13,006Othar employee benefits 265 651

Total 152,778 160,548

The number of employees including both full-time employees and part-time employees measured on a full-time equivalent basis is:Number of Employees: 2 2

3 Professional Fees

Legal feesConsultants feesAudit fees (Queensland Audit Office)Accounting FeesBookkeeping ServicesTotal

4 Other expenses

4,2502,8204,714

11,784

1,500

4,0003,0754,292

12,867

AdvertisingBank chargesComputer expensesConference ExpensesElectricityInsuranceLow Value Assets Written OffPhotocopier Rental and Office AmenitiesRepairs and MaintenanceIndustry ForumsSundry ExpensesTotal

6 Cash assets

Cash on handCash at bankQTC Capital Guaranteed Cash FundTotal

6 Receivables

ReceivablesLess provision for impairmentTotalMovement in allowance of provision for impairmentBalance at beginning of the yearIncreasedAmount recoveredBalance at the end of the year

7 Property, plant & equipment

1,301 2,9144,035 3,9721,158 2,3754,329 2,2332,179 1,677

904 1,2245,496 2,0235,832 5,8193,000

3,013 1,25731,247 23,494

250 25065,168 49,075

498,905 512,041564,323 561,386

26282 2734226282 27342

27342 1595212966

1060 157626282 27342

Computer equipment (at cosl)Less: Accumulated depreciation

Total

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7,555(6,386)1,169

1,169

7,555(4,497)3,058

3,058


2011 2010$ $

7 Payable.

Taxes Payable 5,771 4,360Superannuation Payeble 3,506 3,503Accrued Expenses 161 6,271CBA Mastercard 202Tolal 9,640 14,134

8 Accrued Employee Benefits

CurrenlAccrued Employee Benefils:- Annual leave payable 3,550 6,254- Long service leave payable 4,670 4,576Total current accrued employee benefits 8,220 10,830

Non·CurrentAccrued Employee benefits:• Long service leave payable 37,384 33,883Total non·current accrued employee benefits 37,384 33,883

Total 45,604 44,713

9 Reconciliation of Operating Surplus to Net Cash from Operating Activities

(a) Cash and cash equivalents at the end of financial year, as shown inthe Slalement of Cash Flows:Cash on hand 250 250Cash at bank 65,168 49,075Cabcharge Bond Held 200 200QTC Capital Guaranteed Cash Fund 498,905 512,041

564,523 561,568(b) Reconciliation of operaling result to net cashprovided by (used in) Operating activities

Operating surplus/(deficit) 4,671 44,635

Depreciation 1,889 1,889

Change in operating assets and liabilities:Increase (decrease) in accounts payable (4,494) (5,307)Increase (decrease) in accrued employee benefits 891 10,570

Net cash from operating activities 2,957 51,787

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10 Financial Instruments

lal Interest rate riskCash at bank Is earning interest at the current bank variable rates. The Capital Guaranteed Cash Fund was opened withthe Queensland Treasury Corporation on 30 June 2003.

VRB's exposure to interest rate risk and the effective Interest rates of financial assets and financial liabilities are shown inthe following table. All assets are shown by maturity date where applicable and at face value

2011 Credit, Liquidity and Interest Risk TablesMaturity Date:

Less than 1-3 3 months Greater Carrying1 month months to 1 year Ho 5 years than 5 years amount

$ $ $ $ $ $Financial AssetsNon-interest bearing 250 250Variable interest rate 564,073 564,073Tolal 564,323 5641323

Financial LiabilitiesNon-interest bearing 9,640 9,640Tolal 9,640 9,640

2010 Credit, Liquidity and Intere.t Risk TablesMaturity Date:

Le•• than 1·3 3 month. Greater Carrying1 month month. to 1 year 1to 5 yea", than 5 years amount

$ $ $ $ $ $Financial AssetsNon-interest bearing 250 250Variable interest rate 561,116 561,116Tolal 561,366 561,366

Financial LlabllltleeNon-interest bearing 14,134 14,134Tolal 14,134 14,134

WeightedAverage

Rate:%

4.04%

WeightedAverage

Rate:%

2,98%

IbJ Net fair value.The net fair value of cash assets, receivables. other financial assets and payables approximates their carrying values.

[cJ Credit riskThe maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is representedby the carrying amount of those assets as indicated in the Balance Sheet. There are no concentrations of credit risk.

[dl Liquidity Risk

The Board is exposed to liquidity risk through its trading in the normal course of business. The board manages its liquidityrisk as much as practicable through the effective application of cash management practices.

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11 Remuneration of Board Members

Remuneration paid to Board Members in connection with the management of the Board, including meeting fees and otherallowances.The number of responsible persons whose remuneration from the Board was within the following specified band were:

o

$

to 9,999

2011No.

6

2010No.

6

Board Members RemunerationJeremy AptedVanessa BrewlsGregory ClarkeAllan CrawfordBret! McAuliffePeta Perring

12 Key management personnel compensation

$ 668$ 3,006$ 4,060$ 334$ 3,674$ 3,006

Key management personnel are those persons having authority and responsibility for planning, direeling andconlrolling Ihe activities of the Board, directly or indirectly

Those persons having authority and responsibility for planning, directing and controlling the activities of the Board,directly or indirectly, during 201012011 were:

Ms Julia French, Secretary

The aggregate compensation made to key personnel is set out below.

Compensation Made 10 Key PersonnelShort-term employee benefitsPost-employment benefitsTermination benefitsTotal Compensallon

201175,955

75,955

201070,431

70,431

Remuneration packages for key executive management personnel comprise the following components:~

III Short term employee benefits which include:Base - consisting of base salary, allowances and leave entitlements paid and provided for the entire year or for that part ofthe year during which the employee occupied the specified position. Amounts disclosed equal the amount expenses in theStatement of Comprehensive Income.

III Long term employee benefits include long service leave accrued

13 Events Occurring after Balance dale

The Board has no events occurring after the balance date that would affect the financial package at 30 June 2011.

14 Commilments for Expenditure

(a) Operating Lease

The Board has an agreement with the Department of Public Works. Commitments under operating leases alreporting dale are inclusive of anticipated GST and ara payable as follows:

Not later than one yearLater than one year and not later than five years

Total

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201126,515

106,060132,575

201025,734

102,936128,670

VALUERS REGISTRATION BOARD OF QUEENSLAND

CERTIFICATE OF THE VALUERS REGISTRATION BOARD OF QUEENSLAND

These general purpose financial statemenls have ~een prepared pursuant to section ~2(1) of the Financial Accounla/i.ifilxAct 20U9 (the Act), relevant sections of the Finane/slana Performance Manfjgemenl tanCJard 2009 and other presctlbe~requirements. In accordance with section 62(1)(b) of the Act we certify that In our opin on:

(a) the prescribed requirements for establishing and keeping the accounts have been complied with in all materialrespects; and

(b) the statements have been drawn up to present a true and fair view, in accordance with prescribed accountingstandards. of the transactions of the Valuers Registration Board of Queensland for (he financial year ended30 June 2011 and of the financial position of the board at the end of that year.

G.D.CLARKEChairman

~ ..

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INDEPENDENT AUDITOR'S REPORT

To the Board of Valuers Registration Board of Queensland

Report on the Financial Report

I have audited the accompanying financial report of the Valuers Registration Board ofQueensland, which comprises the statement of financial position as at 30 June 2011, thestatement of comprehensive income, statement of changes in equity and statement of cashflows for the year then ended, notes comprising a summary of significant accounting policiesand other explanatory information, and certificates given by the Chairman and Secretary.

The Board's Responsibility for the Financial Report

The Board is responsible for the preparation of the financial report that gives a true and fairview in accordance with prescribed accounting requirements identified in the FinancialAccountability Act 2009 and the Financial and Performance Management Standard 2009,including compliance with Australian Accounting Standards. The Board's responsibility alsoincludes such internal control as the Board determines is necessary to enable thepreparation of the financial report that is free from material misstatement. whether due tofraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on the financial report based on the audit. Theaudit was conducted in accordance with the Auditor-General of' Queensland AuditingStandards, which incorporate the Australian Auditing Standards. Those standards requirecompliance with relevant ethical requirements relating to audit engagements and that theaudit is planned and performed to obtain reasonable assurance about whether the financialreport is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial report. The procedures selected depend on the auditor'sjudgement, inclUding the assessment of the risks of material misstatement of the financialreport, whether due to fraud or error. in making those risk assessments, the auditorconsiders internal control relevant to the entity's preparation of the financial report that givesa true and fair view in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of theentity's internal control, other than in expressing an opinion on compliance with prescribedrequirements. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of accounting estimates made by the Board, as well asevaluating the overall presentation of the financial report including any mandatory financialreporting requirements approved by the Treasurer for application in Queensland.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis formy audit opinion.

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Independence

The Auditor-General Act 2009 promotes the independence of the Auditor-General and allauthorised auditors. The Auditor-General is the auditor of all Queensland public sectorentities and can only be removed by Parliament.

The Auditor-General may conduct an audit in any way considered appropriate and is notsubject to direction by any person about the way in which audit powers are to be exercised.The Auditor-General has for the purposes of conducting an audit, access to all documentsand property and can report to Parliament matters which in the Auditor-General's opinion aresignificant.

Opinion

In accordance with sAO of the Auditor-General Act 2009-

(a) I have received all the information and explanations which I have required; and

(b) in my opinion -

(i) the prescribed requirements in relation to the establishment and keeping ofaccounts have been complied with in all material respects; and

(ii) the financial report presents a true and fair view, in accordance with theprescribed accounting standards, of the transactions of the ValuersRegistration Board of Queensland for the financial year 1 July 2010 to 30 June2011 and of the financial position as at the end of that year.

Other Matters· Electronic Presentation of the Audited Financial Report

This auditor's report relates to the financial report of the Valuers Registration Board ofQueensland for the year ended 30 June 2011. Where the financial report is included on theValuers Registration Board of Queensland's website the Board is responsible for the integrityof the Valuers Registration Board of Queensland's website and I have not been engaged toreport on the integrity of the Valuers Registration Board of Queensland's website. Theauditor's report refers only to the subject matter described above. It does not provide anopinion on any other information which may have been hyperlinked tolfrom these statementsor otherwise included with the financial report. If users of the financial report are concernedwith the inherent risks arising from publication on a website, they are advised to refer to thehard copy of the audited financial report to confirm the information contained in this websiteversion of the financial report.

These matters also relate to the presentation of the audited financial report in otherelectronic media including CD Rom.

M T BOOTH FCPA(as Delegate of the Auditor-General of Queensland)

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Queensland Audit OfficeBrisbane

28

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annual report - parliament.qld.gov.au · mrclarke is a director of mcgees property, brisbane....

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