smda annual report 2011
DESCRIPTION
SMDA Annual Report 2011TRANSCRIPT
2010-2011 Annual Report
SYDNEY METROPOLITANDEVELOPMENT AUTHORITY
The Sydney Metropolitan Development Authority (SMDA) was established on 15 December 2010 to pursue the NSW Government’s commitment to urban renewal in the Sydney Metropolitan area and to ensure delivery of the objectives of the State Environmental Planning Policy (Urban Renewal) 2010 (SEPP).
The purpose of the SMDA is to drive housing and employment opportunities in specific areas serviced by public transport and infrastructure while ensuring community development and positive social outcomes.
The SMDA is constituted under the Growth Centres (Development Corporations) Act 1974 and reports to the Minister for Planning through the SMDA Board.
The Growth Centres (Development Corporations) Act 1974 defines the extent of the SMDA’s growth centre areas and also sets out the SMDA’s functions within these areas, including the responsibility of dealing and acquiring land.
The Minister for Planning is responsible for the GC Act and for preparing an order for approval by the Governor to amend Schedule 1 of the GC Act to include the description of land that constitutes each of the SMDA growth centres.
Schedule 1 of the Growth Centres Act identifies the growth centres for which the SMDA is constituted, with the initial SMDA growth centres being Redfern-Waterloo and Granville, including the ‘Auto Alley’ precinct.
CONTENTS
To The MiniSTer 3
STATeMenT froM The ChAirperSon AnD Chief exeCuTive offiCer 4
AiMS & oBJeCTiveS 5
CorporATe GovernAnCe 5
BoArD MeMBerS 6
DevelopMenT 10
reDfern-WATerloo preCinCT 12
GrAnville preCinCT 14
DireCTor’S STATeMenT 16
inDepenDenT AuDiT reporT 18, 42
finAnCiAl STATeMenTS 20
AppenDiCeS 59
ChArTer
Front cover: Granville Shopping Precinct
TO THE MINISTER
The Hon. Brad Hazzard MPMinisterforPlanningandInfrastructure,MinisterassistingthePremieronInfrastructureNSWGovernorMacquarieTowerFarrerPlaceSydney
DearMinisterHazzard
ItiswithpleasurethatIforwardyouthefirstAnnualReportoftheSydneyMetropolitanDevelopmentAuthorityfortheyearending30June2011.
ThisreporthasbeenpreparedinaccordancewiththeNSW Annual Report (Statutory Bodies) Act 1984 No 87,theAnnual Report (Statutory Bodies) Regulation 2000andtheGrowth Centres (Development Corporations) Act 1974.
YoursSincerely
Roy Wakelin-King AMChiefExecutiveOfficerSydneyMetropolitanDevelopmentAuthority
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TheSMDAcommencedoperationsinDecember2010andhasbeenformedtodrivehousingandemploymentopportunitiesinspecificareasservicedbypublictransportandinfrastructureandtobuildeconomiesofurbancentres.
AninememberBoardwasappointedon17December2010toestablishthepoliciesanddirectionsfortheSMDA.
TheinitialSMDAgrowthcentreswillbetheRedfern-WaterlooareaandGranville,includingthe‘AutoAlley”precinct.
TheestablishmentoftheSMDAdemonstratesthestrongcommitmentoftheNSWGovernmenttothefutureoftheseareas.
WE HAvE gREAT plEASuRE IN WElcOMINg yOu TO THE
fIRST ANNuAl REpORT fOR THE SydNEy METROpOlITAN
dEvElOpMENT AuTHORITy (SMdA) 2010/2011.
STATEMENT fROM THE cHAIRpERSON ANd cHIEf ExEcuTIvE OffIcER
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Roy Wakelin-King AMChiefExecutiveOfficer
Dr Col Gellatly AOChairman
TheSMDAacknowledgestheimportanceofcreatingandmaintaininggoodandeffectiverelationshipswiththelocalgovernmentsandthecommunitiesintheseareas.Weseethisascentraltothesuccessoftheurbanrenewaloftheseprecincts.
TheworkoftheAuthoritysinceDecember2010hasbeenfocussedoncontinuingtherenewaloftheRedfern-WaterlooprecinctaswellasundertakingearlystudiesintheGranvillearea.NaturallytheSMDAhasalsoputconsiderableeffortintheseearlymonthsintotheessentialgovernance,policyandproceduralaspectsofestablishingandoperatingaNSWGovernmentstatutoryAuthority.
TheworkoftheRedfern-WaterlooAuthority(RWA)willcontinueinthisimportantareaofSydneyandtheSMDAwilllooktobuildonthegreatworkdonebytheRWAaccordingly.
WewouldliketotaketheopportunitytothankthecommunitiesofRedfern-WaterlooandGranvillefortheirsupporttotheSMDAandtoexpressourappreciationtothemembersoftheBoard,staffandconsultantsfortheirsupport,professionalismandcommitmenttotheAuthorityanditsfutureoperations.
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SMDA Structure
Specifically,theroleoftheSydneyMetropolitanDevelopmentAuthorityincludes:
• Workingwithtransportandplanningdepartmentstoidentifyprecinctsforrenewal;
• Undertakinglanduseplanninginvestigationsandfeasibilityanalyses;
• Deliveringanoverarchingprecinctplan;
• Coordinatingtransportandinfrastructureplanning;
• Planningforopenspaceinidentifiedprecincts;
• Levyinginfrastructurecontributionsandenteringintoplanningagreements;
• Dealingwithland;
• Borrowingandmanagingfunds;and
• Partneringwithpublicagenciesandprivateentitieswhennecessary.
AIMS & OBJEcTIvES
cORpORATE gOvERNANcE
Minister for Planning
SMDA Board
CEO
PMO & EA
Precinct Planning & Urban Renewal
Executive Assistant
Urban RenewalStrategy & Policy
Finance &Corporate Services
Communications
Legal Services
TheMinisterforPlanningandInfrastructure,MinisterassistingthePremierforInfrastructureNSW,theHon.BradHazzard,isresponsibleforthecontrolanddirectionoftheSMDA.TheMinisterhasestablishedaBoardofGovernanceand,whiletheBoardestablishthepoliciesanddirectionsfortheSMDA,itsdaytodaymanagementistheresponsibilityoftheChiefExecutiveOfficer.
ThereisoneBoardCommittee
Audit and Risk Management Committee
TheAuditandRiskManagementCommitteeisthefocalpointforcommunicationbetweentheBoard,theexternalauditors,theinternalauditorsandmanagement,astheirdutiesrelatetofinancialaccounting,reportingandinternalcontrolsandcompliance.
TheAuditandRiskManagementCommitteeassiststheBoardinfulfillingitsresponsibilitiesastoaccountingpoliciesandreportingpracticesoftheSMDA.ItistobetheBoard’sprincipalagentinassuringtheindependenceofSMDAauditors,theintegrityofmanagementandtheadequacyofthedisclosurestothepublic.
Membership
BonnieBoezmanAOandVictoriaWeekes
TheSMDAassumesmanyofthefunctionsoftheRedfern-WaterlooAuthority(RWA)and,therefore,Redfern-Waterloohasbeenidentifiedasoneoftwopriorityareas,alongwithGranville(includingthe‘AutoAlley’precinct),forurbanrenewal.ThiswillbeachievedthroughthestrategicdeliveryoftheobjectivesoftheStateEnvironmentalPlanningPolicy(UrbanRenewal)2010(SEPP).
TheintentofthenewSEPPistoprovidetheopportunityfortheStateGovernmenttoplanforhighqualityurbanrenewaltocreaterevitalisedandmorevibrantcentreswithabroaderrangeofhousingandemploymentoptions,andtoencourageinvestment.
ThisprincipalobjectiveoftheSMDAbuildsontheMetropolitanTransportPlan“ConnectingtheCityofCIties”andupdatedMetropolitanPlanforSydney2036.
Precinct Team
Precinct Team
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Dr Col Gellatly AOBAgEc(Hons)UNE,MComm(Hons)UNSW,PhDNCState,FIPAA
DrColGellatlyAOiscurrentChairpersonoftheSydneyMetropolitanDevelopmentAuthority.DrGellatlyistheformer
Director-GeneralofthePremier’sDepartment,arolewhichheheldsincebeingappointedin1994.HehasheldanumberofseniormanagementpositionswithintheNSWpublicservice,includingasDirectorGeneraloftheDepartmentofLandandWaterConservation.HewasChairoftheRedfern-WaterlooAuthority;iscurrentChairofAustralianTechnologyParkandPillarCorporation,amemberoftheBoardofStateWaterCorporation,amemberoftheUNECouncil,memberoftheBoardoftheNSWRugbyLeagueandanAdministratorofWollongongCityCouncil.
BOARd MEMBERS
BoardmembersareappointedinaccordancewithSection9Schedule2oftheRedfern-WaterlooAuthorityAct2004.
Les Wielinga Eng(Civil)GradDipMgt
LesWielingaistheDirectorGeneral,TransportNSWandiscurrentlyleadingtheimplementationofthenewTransportDepartment.HewasChiefExecutiveofthe
NSWRoadsandTrafficAuthority(2006-2009)andtheChiefExecutiveoftheSydneyMetroin2009.Leshasmorethan30years’experienceintransportissuesandmanagement,strategicplanning,infrastructuredevelopment,deliveryofinfrastructure,programandprojectmanagement,aswellasadministration.Hehassignificantexperienceinmanaginglargeteamsacrossmanydisciplinesincludinglegal,financial,economicandengineering.
Lucy Turnbull AO LLB(Sydney),MBA(UNSW)
Lucyisabusinesswoman,companydirectorandindependentmemberoftheSydneyMetropolitanDevelopmentAuthority.Formanyyearssheworkedasa
solicitorandasaninvestmentbanker.Lucyhashadalongstandinginterestintherolecitiesplay,andinarchitectureanddesign.SheisDeputyChairoftheCommitteeforSydney,wasaBoardmemberoftheRedfern-WaterlooAuthorityandiscurrentlyontheBoardoftheAustralianTechnologyPark.InJune2010shewasappointedtotheCitiesExpertPanelwhichreportstotheCOAGReformCouncilonmetropolitanstrategicplanningissues.From1999to2004LucywasSydney’sfirstfemaleLordMayor(2003-2004)andDeputyLordMayor(1999-2003).SheservedontheCounciloftheCityofSydneyfrom1999-2004andchairedmanycouncilcommittees,includingtheCentralSydneyPlanningCommittee,thePlanning,TransportandDevelopmentCommittee,theTrafficCommitteeandtheFinanceandAuditCommittees.Lucyhasalsobeenactiveinthenotforprofitsector.SheisamemberoftheboardsoftheCentreforIndependentStudiesandtheUnitedStatesStudiesCentreandtheRedfernFoundation.
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Matt Roberts M.EconBA(Econ)(Macq)
MattiscurrentlyDeputySecretaryoftheEconomic,EnvironmentandCommunitiesDirectorateandamemberoftheTreasuryExecutiveteam.Thisrole
isresponsibleforpolicydevelopment,budgetmanagementandagencystakeholderrelationsinthetransport,planning,environment,governmentservicesandcommunitiesportfolios.
InhispreviousroleasDirector,NationalReformBranch,hewasresponsiblefordevelopingTreasury’spolicyadvicefortheCouncilofAustralianGovernments’(COAG)NationalReformAgenda(NRA)aswellasrepresentingTreasuryatnumerousCommonwealth-Stateinter-governmentalmeetings.TheNRAcomprisedacomprehensivepackageofcompetition,regulatoryandhumancapitalreformsin:healthandageing;education,skills,trainingandearlychildhood;climatechangeandwater;infrastructure;businessregulationandcompetition;housing;andIndigenousreform.Priortothisappointment,MattwasPrincipalEconomicAnalystintheEconomicStrategyBranchandadvisedoneconomicreformmatters.including:NationalCompetitionPolicy,competitiveneutralitypolicy,thirdpartyaccesstoinfrastructure,pricingandcostrecoverypolicies,economicappraisals,economicdevelopmentandindustryadvice,naturalresourcepolicy,andregulatoryreforms.MattstartedhiscareerasagraduateeconomistinSydneyWaterin1996andeventuallymovedtothepositionofSeniorEconomist,dealingwithcompetition,pricingandregulatorymatters.
Mr Roy Wakelin-King AM BPS(UNE)GDPBus(UTS)ChiefExecutiveOfficer
RoyWakelin-KingwasappointedtheChiefExecutiveOfficeroftheSydneyMetropolitanDevelopmentAuthorityinDecember2010.
RoyisalsoChiefExecutiveOfficeroftheRedfern-WaterlooAuthorityandManagingDirectorofAustralianTechnologyPark,apositionhehasheldsince16February2009.PriortohisappointmentwiththeRWA,RoywastheDeputyDirectorGeneraloftheOfficeofPublicWorks&ServiceswiththeNSWDepartmentofCommerce.RoywasalsoCEOoftheWorldYouthDayCoordinationAuthoritywhichcoordinatedthedeliveryofGovernmentservicesforthehighlysuccessfulWorldYouthDay2008.RoyhasbeenanExecutiveDirectorwithintheNSWMinistryofTransportinthepositionofDirectorTransportOperationsDivision.
Royhasextensiveexperienceinbothoperationsandprojectleadership,particularlyinthefieldsoftransportandlogistics.HisexperienceincludesashortArmycareerasacommissionedofficerfollowedbyaseriesofseniorprojectandoperationalappointmentswithintheNSWGovernment.
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Shane PhillipsShanePhillipsisaprominentcommunityleaderandrespectedspokespersonforAboriginalAustralians,withculturalconnectionstotheBundjalung,Wonnarua,andEorapeoples.Priortohis
appointmentasCEOoftheTribalWarriorAssociation,Shane’scareerincludedrolesworkinginchildprotection,juvenilejusticeandthelaw.HehasalsoworkedasacommunityliaisonofficerwiththeRoyalCommissionintoAboriginalDeathsinCustodyandestablishedtheRedfernAboriginalCorporation(RAC).Shane’scommunityserviceachievementswererecognisedin2008whenhewasaninvitedparticipantinPrimeMinisterRudd’s2020Summitandsharedhisvisioninthe“OptionsfortheFutureofIndigenousAustralia”stream.HehasbeenaspokespersonfortheAboriginalRightsCoalition,aLifeMemberandCoachoftheRedfernAllBlacksUnder19’srugbyleagueteam,aMemberoftheNationalIndigenousChamberofCommerce,theGilbert&TobinReconciliationPlanningTeam,theNationalAboriginalAlliance,andtheQuarantineStationCommunityCommittee,andisafoundingDirectoroftheAustralianIndigenousChamberofCommerce.
Sam Haddad ChemEng,MBA
SamHaddadwasappointedDirectorGeneraloftheNSWDepartmentofPlanningin2005.Hehashadmorethan38yearsofprofessionalexperienceincludingtwo
decadesatseniorexecutivelevel.Hehasworkedintheprivatesectorinprojectmanagementandinfrastructuredevelopment,andhasheldseveralseniorandexecutivepositionswiththeNSWDepartmentofPlanninganditspredecessors.SamhasextensiveexperienceinshapingandleadingtheState’splanningsystem;leadingandimplementingsignificantpolicy,legislative,organisationalandoperationalreforms.
Peter Duncan Appointed23May2011CertL&ESD,Grad,CertTrafficEng,A.DipLand.Studies,G.Dip.Mgt
PeterDuncanisDeputyDirectorGeneraloftheDepartmentofPremierandCabinet.Formerly,
hewasDirectorGeneraloftheDepartmentofServices,TechnologyandAdministration.PreviousrolesincludeChiefExecutiveOfficerofForestsNSW,DirectorandChiefExecutiveoftheCentennialParkandMooreParkTrust,andDirectorEstateManagementatOlympicCoordinationAuthority.PeterhasservedonanumberofBoardsandCommitteesincludingasChairoftheNSWMarineParksAuthority,AdministratorofJenolanCavesReserveTrustandiscurrentlyaGovernoroftheCentennialParklandsFoundation.
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Brendan O’ReillyTermofAppointment17/12/10to18/04/11
BrendanO’ReillywastheDirectorGeneralwiththeNSWDepartmentofPremierandCabinet,aroleinwhichheleadstheNSWPublicSector
andensuresitsdeliveryonNSWGovernmentpolicydirectionandagenda.BrendanwaspreviouslyDirectorGeneral,DepartmentofAgeing,DisabilityandHomeCare,DeputyDirectorGeneral,Premier’sDepartment;DirectorGeneral,DepartmentofSportandRecreation;DeputyDirectorGeneral,DepartmentofCommunityServices.PriortothesesignificantGovernmentroles,BrendanwasinvolvedintheeducationsectorasDirector,SouthernSydneyInstituteofTAFEandwasalsoresponsiblefortheManufacturingandEngineeringConsortium.HewasalsoNetworkManager,TAFE,NSWIllawarraInstituteofTechnology,providingleadershipandmanagementofanetworkoftenTAFEcollegesintheOranaandFarWestregionsofNSW.
Disclosures
TheSMDAhasnorelatedpartydisclosurestodeclare.
SMDA Board Attendance FYR 10/11
January - June 2011
Directors Board Meetings
A1 B2
ColinGellatlyAO 6 6
RoyWakelin-KingAM 6 6
MikeMrdak 5 6
LucyTurnbullAO 6 6
LesWielinga 4 6
MattRoberts 6 6
SamHaddad 5 6
ShanePhillips 4 6
BrendanO’Reilly 5 5
PeterDuncan 1 1
1 Number of meetings attended2 Number of meetings held
Mark Mrdak BA(Hon.)(UNE),GradDipEd,GradDipAppEcon(UC)
MarkwasappointedSecretaryoftheDepartmentofInfrastructureandTransportinJune2009.TheDepartmentprovidespolicyadvice,programsand
regulationacrossawiderangeofactivitiesincludingmajorinfrastructureprojects,roadandrail,aviationandairports,transportsecurity,maritime,vehiclesafetystandardsandroadsafety.Markbeganhispublicservicecareerin1988withtheDepartmentofTransportandCommunicationsandhassinceheldanumberofseniorpositionsacrosstheportfolio.Hisworkincludesmanagementofinternationalanddomesticaviationpolicyandregulation,theairportsalesandregulationprogram,infrastructureinvestment,theCOAGcompetitionpolicyreformagenda,railinvestmentandregulatoryreform,maritimepolicy,emissions,energyandnaturalresourcespolicy.
BetweenMarch2008andJune2009,MarkwasDeputySecretary(Governance)withtheDepartmentofPrimeMinisterandCabinetwithresponsibilityforgovernment,governance,cabinetsecretariatandcorporatefunctionswithinPM&C.
In2009hewastheinauguralCommonwealthCoordinatorGeneralchargedwithensuringtheeffectiveimplementationofkeyCommonwealtheconomicstimulusinfrastructureinvestments.MarkisalsoamemberofseveralkeyGovernmentBoardsandCommittees.
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State Environmental Planning Policy (SEPP)
On15December2010,theNSWGovernmentannouncedanewState Environmental Planning Policy (Urban Renewal) 2010(UrbanRenewalSEPP)tofacilitateurbanrenewalplanningacrosstheState.
TheSEPPisanenvironmentalplanninginstrumentwhichismadeandamendedbytheMinisterforPlanningandInfrastructure.Itwillonlyapplytothenominatedpotentialurbanrenewalprecinctswithinitandwillfacilitatelanduserezoning.
TheUrbanRenewalSEPPrespondstotheMetropolitan Plan for Sydney 2036toaccommodate70%oftheState’spopulationgrowthwithinexistingareas,andtoprovideadequatehousingandjobsinaccessiblelocations.
TheUrbanRenewalSEPPaimstointegratelanduseplanningwithexistingorplannedinfrastructuretocreaterevitalisedcentres,greateraccesstopublictransport,andarangeofhousingandemploymentopportunities.
Future Precincts
ThegovernmenthasinitiallyidentifiedtwoprecinctsforurbanrenewalundertheSMDAandUrbanRenewalSEPP.Theseare:
1. Redfern-Waterloo
2. Granville including the ‘Auto Alley’ precinct
TheSMDAwillworkwiththeDepartmentofPlanningandInfrastructureandotherkeyagenciestohelpidentifyotherprecinctsthatoffersignificantopportunityforurbanrenewal.Ultimately,anyfutureprecinctsareamatterfortheGovernmenttodecide.
AllprecinctsapprovedbytheMinisterforPlanningandInfrastructureforinclusionundertheUrbanRenewalSEPPwillalsobedeclaredasprecinctsundertheGrowth Centres (Development Corporations) Act 1974.
Aprecinctisanareathatmaybeidentifiedasofferingtheopportunityforurbanrenewalacrossaparticulargeographicorsocio-economicarea.Thisincludesidentifyingthepotentialforimprovedandmoresustainableoptionsfortransport,jobsandhousing.
Aprecinctcanbedefinedasaparticularsite,asacentre-basedprecinctsuchasaparticularsuburb,oralargercorridororclusterofcentresorsuburbs.
Theprecinctboundary,onwhateverscale,willrequireapprovalbytheDepartmentofPlanningandInfrastructureundertheUrbanRenewalSEPPtobeconsideredapotentialprecinct,whichwillallowfurtherassessmenttobeundertakenbytheSMDAundertheGrowth Centres Act.
Theflowchartontherightoutlinestheprocess.
dEvElOpMENT
THE uRBAN RENEWAl SEpp
AIMS TO INTEgRATE lANd uSE
plANNINg WITH ExISTINg OR
plANNEd INfRASTRucTuRE TO
cREATE REvITAlISEd cENTRES
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Precinct Planning Process
Minister identifies potential precinct on a map in the SEPP
Identification of study requirements and proposed urban renewal outcomes
Detailed investigations undertaken (traffic, urban design, economic, social, etc) and study prepared
Exhibition of study and proposed planning framework (e.g. SEPP, LEP or DCP)
Director-General’s recommendation to Minister
Minister agrees that the precinct should be
developed for urban renewal
New statutory framework for precinct is legally made, effectively rezoning the land
Minister disagrees that the precinct should be
developed for urban renewal
No further action to be taken for the precinct at this time
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AlexAnDriA
reDfern-WATerloo PRECINCT
reDfern-WATerloo iS in A priMe loCATion, neAr SyDney’S CenTrAl BuSineSS DiSTriCT WiTh exCellenT linkS To puBliC TrAnSporT AnD The opporTuniTy To AliGn urBAn reneWAl WiTh poSiTive SoCiAl DevelopMenT ouTCoMeS.
Redfern-Waterloo Authority Operational Area
REDFERN
WATERLOO
EVELEIGH
DARLINGTON
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TheRedfern-WaterlooAuthority(RWA)wasresponsibleforrevitalisingtheareathroughurbanrenewal,humanservicesandemploymentandtrainingundertheRedfern-Waterloo Authority Act 2004.TheSMDAhasassumedmanyoftheurbanrenewalandplanningfunctionsoftheRWA,tocontinuetherevitalisationofRedfernandWaterlootoensurethearearealisesitsfulleconomic,socialandcreativepotential.TheSMDAhasassumedresponsibilityfortheongoingimplementationofBuiltEnvironmentPlanStage1.
Built Environment Plan Stage 1 (BEP 1)
TheBuiltEnvironmentPlanStage1ofRedfern,Waterloo,EveleighandDarlingtonconcentratesontheissuesofurbandesign,traffic,publicaccess,publictransport,landuse,affordablehousingandurbanrenewal.Stage1oftheBuiltEnvironmentPlanwasreleasedon30August2006andisprimarilyaplanningframeworktoencouragefutureeconomicgrowthandthecreationofupto18,000jobsthroughoutRedfernandWaterloo.Theaimistogeneratemorethan444,000sqmofnewemploymentspace,2,000newhomes,anewTownCentre,improvedpedestrianaccesstoourresidentialandbusinesshubsandbetterurbandesign.TheBuiltEnvironmentPlanencouragesanemploymentandinvestmentbasedrevitalisationoftheareabyprovidingaplanningframeworkforthefollowingstrategicsites:
• NorthEveleigh
• AustralianTechnologyPark
• SouthEveleighRailyards
• EveleighStreetPrecinct(includingtheBlock)
• RedfernStation/GibbonsStreet/RegentStreetPrecinct
• FormerRachelForsterHospital
• FormerRedfernPoliceStationandCourtHouse
• FormerRedfernPublicSchool
Mostofthesesites,whichtotalaround35hectares,areStateGovernmentownedandarelocatedneartheRedfernTrainStationandRedfernTownCentre.
TheBuiltEnvironmentPlanproposesaconsistentsetofcontrolsrelatingtourbandesign,landusezoningandthecarryingoutfuturedevelopmentofRedfern-Waterloosites.Italsoidentifiesstrategiesforassociatedtransportandtrafficmanagement,heritageprotection,openspaceandpublicdomainimprovements,infrastructureprovision,pedestrianandcycleaccessandguidelinesfortheachievementofsafeandsustainablecommunities.
TheunderlyingconceptforthePlanisbasedonthecreationofaTownCentrewithaneconomicandcivicheartfocussedaroundRedfernTrainStation,andwhichisconnectedthroughpedestrianlinkagestobusinesshubsattheAustralianTechnologyPark,NorthEveleigh,RedfernandRegentStreets.
Draft Built Environment Plan Stage 2 (BEP 2)
TheDraftBuiltEnvironmentPlanStage2wasreleasedforcommunityfeedbackinJanuary2011.ThePlanwaspubliclyexhibitedfrom27Januaryto28February2011.TheDraftBuiltEnvironmentPlanproposesplanningcontrols,includinglanduse,heightandfloorspacecontrols,tosupporttherenewalofHousingNSWsitesinRedfernandWaterloo,includingSouthEveleighovera20-25yeartimeframe.TheDraftBEP2aimstoachieveamixofprivate,affordableandsocialhousing,proposingamixof60%privateandaffordablehousingand40%socialhousing.
TheSydneyMetropolitanDevelopmentAuthority’sUrbanRenewalSEPPprocessandtheHousingNSWMasterPlanprocesswillprovidefurtheropportunitiesforthecommunitytoprovidefeedbackontheredevelopmentofthisimportantarea.
Redfern-Waterloo Heritage Taskforce & Interpretation Plan
TheRedfern-WaterlooHeritageTaskforcewasestablishedin2009toidentifyopportunitiesfortheconservation,interpretationand,whereappropriate,adaptivereuseofthecultural,naturalandarcheologicalheritageoftheRedfern-Waterlooarea.
Meanwhile,theEveleighSteeringCommittee(ESC)wassetupinrecognitionofthesignificantculturalandsocialsignificanceoftheformerEveleighLocomotiveWorkshopspecificallyandcomprisesabroadrangeofcommunityrepresentativesaswellasrepresentativesofAustralianTechnologyPark(ATP)andtheRWA.
TheTaskforceandESCseektoincreasecommunityawareness,understanding,appreciationandenjoymentofexistingheritageandstimulategreatercommunityinvolvementinconservationefforts.
ThedraftInterpretationPlanwaspublicallyexhibitedbetween9Marchand6April2011.
TheSMDAwillcontinuetoplanforandfacilitateappropriategrowthofRedfern-Waterlootoensuretheareareachesitsfulleconomic,socialandcreativepotentialbycreatingavibrant,sociallyinclusiveandmoresustainablecommunity.Redfern-WaterlooremainsapriorityfortheSMDAandwilluseitsachievementsasamodeltobenefitallofSydney.
Other initiatives
TheSMDAwillcontinuetheworkon:
• RedfernTrainStation;
• NorthEveleigh;and
• AffordableHousing.
GrAnville ToWn CenTre hAS Been iDenTifieD AS A prioriTy AreA By The SMDA for urBAn reneWAl.
pArrAMATA
MerrylAnDS
GRANVILLE
Aerial view of Granville Precinct with Urban SEPP boundary
GrAnvillePRECINCT
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TheSMDAwillcarryoutitsfunctionsinpartnershipwithkeyNSWStateagencies,ParramattaandHolroydCityCouncilsandtheFederalGovernment.
TheGranvilleurbanrenewalprecinctoccupiesastrategiclocationingreaterwesternSydney,iswellservicedbypublictransportandisidentifiedashavinghighpotentialforsocialandeconomicgrowthwithintheParramattaLGAboundary.
ThedraftGranvilleurbanrenewalprecincthasanapproximateareaof264hectares.
WhilstthedrafturbanrenewalprecinctisdefinedasoneareaintheUrbanRenewalSEPP,ithasthreedistinctanduniquegeographicalcommunitiescomprising:
1. Granville Town Centre
2. Church St, ‘Auto Alley’ Precinct
3. Harris Park Precinct
Specifically,theroleoftheSMDAintheGranvilleprecinctwillinclude:
• WorkingwithDepartmentofPlanningandInfrastructure,NSWDepartmentofTransportandotherrelevantagenciestoidentifyprecinctspecificrenewalissues;
• Undertakinglanduseplanninginvestigationsandfeasibilityanalyses;
• Deliveringanoverarchingprecinctplan;
• Coordinatingtransportandinfrastructureplanning;
• Planningforopenspaceinidentifiedareas;
• Levyinginfrastructurecontributionsandenteringintoplanningagreements;
• Dealingwithlandasappropriate;
• Borrowingandmanagingfunds;
• Partneringwithpublicagenciesandprivateentitieswhennecessary;and
• Ensuringextensivecommunityconsultationisundertakenatappropriatestagesintheprocess.
Interagency Urban Renewal Committee
TheSydneyMetropolitanDevelopmentAuthoritywillleadtheplanningfortheGranvilleurbanrenewalareaidentifiedundertheSEPPinpartnershipwithkeyagenciesincludingtheDepartmentofPlanningandInfrastructure,NSWDepartmentofTransport,FamilyandCommunityServices,HousingNSWandothersasrequiredthroughanInteragencyUrbanRenewalCommitteethatischairedbytheSydneyMetropolitanDevelopmentAuthority.
TheCommitteeisbeingformedandwillmeetonaregularbasis.ItwillreportthroughtheSydneyMetropolitanDevelopmentAuthorityBoardtotheMinisterforPlanningandInfrastructure.RepresentativesofParramattaCityCouncilandHolroydCityCouncil,othergovernmentagenciesandorganisationswillalsobeinvitedtoparticipateintheCommittee.
ThemainroleofthecommitteeistoinvestigateurbanrenewalopportunitiesandtoprovideinputintothestudiesbeingpreparedundertheUrbanRenewalSEPP.
Auto Alley Reference Group
InadditiontotheproposalsforthegreaterGranvilleUrbanRenewalPrecinct,andgiventheuniqueattributesandopportunitiesofthisChurchStreetsubprecinct,aReferenceGroupisbeingformedtoaddressthisspecificareaandwillinclude:
• SydneyMetropolitanDevelopmentAuthority(Chair)
• DepartmentofPlanningandInfrastructure
• NSWDepartmentofTransport
• ParramattaCityCouncil
• HolroydCityCouncil
• ACommunityrepresentative
• ParramattaChamberofCommerce
• PropertyCouncilofAustralia
THE MAIN ROlE Of THE cOMMITTEE
IS TO INvESTIgATE uRBAN RENEWAl
OppORTuNITIES ANd TO pROvIdE INpuT
INTO THE STudIES BEINg pREpAREd
uNdER THE uRBAN RENEWAl SEpp.
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dIREcTOR’S STATEMENT
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Statement by the Chairman and Chief Executive Officer on the adoption of the financial statements for the year ended 30 June 2011. Certificate under Section 41C of the Public Finance and Audit Act 1983
PursuanttoSection41C(B)and1(C)ofthePublicFinanceandAuditAct1983andinourcapacityasChairmanandChiefExecutiveOfficeroftheSydneyMetropolitanDevelopmentAuthority(SMDA),wedeclarethatinouropinion:
TheaccompanyingfinancialstatementsexhibitatrueandfairviewofthefinancialpositionoftheSMDAasat30June2011andtransactionsfortheyearendedonthatdate.ThestatementshavebeenpreparedinaccordancewiththeprovisionsofthePublicFinanceandAuditRegulation2000andtheTreasurer’sDirections.
Further,wearenotawareofanycircumstancesthatwouldrenderanyparticularsincludedinthefinancialstatementstobemisleadingorinaccurate.
Roy Wakelin-King AMChiefExecutiveOfficer
Dr Col Gellatly AOChairman
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STATEMENT By MEMBERS Of THE BOARd
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Statement by Members of the Board of Sydney Metropolitan Development Authority on the adoption of the financial statements for the year ended 30 June 2011.
Pursuant to Section 41C (1B) of the Public Finance and Audit Act 1983 and in accordance with a resolution of the members of the Board of the Sydney Metropolitan Development Authority, we declare than in our opinion:
1. The accompanying financial statements exhibit a true and fair view of the financial position and financial performance of Sydney Metropolitan Development Authority as at 30 June 2011.
2. The financial statements have been prepared in accordance with the Australian Accounting Standards and Interpretations and the provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2010 and the Treasurer’s Directions; and
3. We are not aware of any circumstances that would render any particulars included in the financial statements to be misleading or inaccurate.
Dr Col Gellatly AO Roy Wakelin-King AMChairman ChiefExecutiveOfficer
28October2011
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INdEpENdENT AudIT REpORT
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For the period 17 December 2010 to 30 June 2011
STATEMENT Of cOMpREHENSIvE INcOME
notes Consolidated SMDA
Period 17 December to
30 June 2011
Period 17 December to
30 June 2011
$’000 $’000
Revenue from continuing operations
Sales and services income 7(a) 1,048 1,048
Grants and contributions 7(b) 1,500 1,500
Interest income 5 5
Total income 2,553 2,553
Expenditure
Employee benefits expenses 8 (a) 1,512 799
Personnel services 8 (b) -- 713
Other expenses 8 (c) 544 544
Total expenditure 2,056 2,056
Surplus for the period 497 497
Other comprehensive income -- --
Total comprehensive income for the period 497 497
The above statement should be read in conjunction with the accompanying notes.
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STATEMENT Of fINANcIAl pOSITION
SMDA Proforma Accounts
As at 30 June 2011
Consolidated SMDA
notes 2011 2011
$’000 $’000
ASSETS Current assets
Cash and cash equivalents 10 690 690
Trade and other receivables 11 486 60
Total current assets 1,176 750
Non-current assets -- --
Total non-current assets -- --
Total assets 1,176 750
LIABILITIES
Current liabilities
Trade and other payables 13 295 253
Provisions 14 127 --
Total current liabilities 422 253
Non current liabilities
Provisions 14 257 --
Total non current liabilities 257 --
Total liabilities 679 253
Net assets 497 497
EQUITY
Accumulated funds 15 497 497
Contributed equity
Total equity 497 497
The above statement should be read in conjunction with the accompanying notes.
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For the period 17 December 2010 to 30 June 2011
STATEMENT Of cHANgES IN EquITy
Consolidated SMDA
notes
Period 17 December to
30 June 2011
Period 17 December to
30 June 2011
$’000 $’000
Balance of equity at the beginning of the period -- --
Total comprehensive income for the period 497 497
Transactions with owners in their capacity as owners -- --
Balance of equity at the end of the period 497 497
The above statement should be read in conjunction with the accompanying notes.
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SMDA Proforma Accounts
For the period 17 December 2010 to 30 June 2011
STATEMENT Of cASH flOWS
Consolidated SMDA
Period
17 December to 30 June 2011
Period
17 December to 30 June 2011
$’000 $’000
inflow/ inflow/
notes (outflow) (outflow)
Cash flows from operating activities
Receipts from customers 667 1,093
Government grants received 7(b) 985 983
Payments to suppliers and employees (967) (1,393)
Interest received 5 5
Net cash flows from operating activities 16(b) 690 690
Cash flows from investing activities -- --
Net cash flows used in investing activities -- --
Cash flows from financing activities -- --
Net cash flows from financing activities -- --
Net increase in cash held 690 690
Cash and cash equivalents at the beginning of the period -- --
Cash and cash equivalents at the end of period 690 690
The above statement should be read in conjunction with the accompanying notes.
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For the period 17 December 2010 to 30 June 2011
NOTES TO THE fINANcIAl STATEMENTS
1. REPORTING ENTITY AND FINANCIAL PERIOD
TheSydneyMetropolitanDevelopmentAuthority(the“Authority”)isaStatutoryBodyconstitutedbytheGrowth Centres (Development Corporations) Act 1974on17December2010andthesefinancialstatementscovertheperiodfromthatdateto30June2011.TheAuthoritypromotesthedevelopmentoflandidentifiedaspotentialurbanrenewalprecinctsincludingRedfern-WaterlooandGranvilleandotherprecinctstobeidentifiedinthefuture.TheAuthorityhasanimportantroleinboostingtheamount,mixandchoiceofhousingandcommercialdevelopmentwithinwalkingdistanceofkeypublictransporthubs.Asapriority,theAuthoritywillfocusonareascurrentlyadministeredbytheRedfern-WaterlooAuthority,includingNorthEveleighandtheAustralianTechnologyPark.TheAuthoritywillalsofocusonthedevelopmentofGranvilleTownCentreandAutoAlleyinGranville.
TheAuthority,asareportingentity,comprisesalltheentitiesunderitscontrol,whichat30June2011isonlytheOfficeofSydneyMetropolitanDevelopmentAuthority(the“Office”).TheOfficeprovidespersonnelservicestotheAuthority.PlansandrelevantlegislationarecurrentlybeingpreparedforthetransferofcertainoftheoperationsoftheRedfern-WaterlooAuthorityandtheoperationofAustralianTechnologyParkSydneyLimited,totheAuthority.
TheAuthorityiscurrentlyfundedbytheNSWGovernmentthroughto30June2014.
Thefinancialstatementsfortheperiodended30June2011havebeenauthorisedforissuebytheBoardonthe21October,2011.
2. BASIS OF PREPARATION
(a) Statement of Compliance
TheAuthority’sfinancialstatementsaregeneralpurposefinancialstatementswhichhavebeenpreparedinaccordancewithapplicableAustralianAccountingStandards(whichincludeAustralianAccountingInterpretations)andtherequirementsofthePublic Finance and Audit Act 1983 and Regulation, Treasurer’s Directions, the Growth Centres (Development Corporations) Act 1974.
(b) Historical cost convention
Thesefinancialstatementshavebeenpreparedunderthehistoricalcostconvention,asmodifiedbythe
revaluationoffinancialassetsandliabilitiesatfairvaluethroughprofitorloss,certainclassesofproperty,plantandequipmentandinvestmentproperty.
(c) Profit status of the Authority
TheAuthorityhasassesseditsprofitstatusforthefinancialperiodended30June2011anddetermineditsstatusasnot-for-profitforfinancialreportingpurposes.
(d) Basis of measurement
Thefinancialstatementshavebeenpreparedonthehistoricalcostbasisexceptforthefollowingmaterialitems:
• Financialinstrumentsatfairvaluethroughprofitandlossandavailableforsale,aremeasuredatfairvalue.
• Thedefinedbenefitassetismeasuredasthenettotaloftheplanassets,plusunrecognisedpastservicecostandunrecognisedactuariallosses,lessunrecognisedactuarialgainsandthepresentvalueofthedefinedbenefitobligation.
(e) Functional and presentation currencyThesefinancialstatementsarepresentedinAustraliandollars,whichistheAuthority’sfunctionalcurrency.
Allamountsareroundedtothenearestonethousanddollarsunlessotherwisestated.
(f) Use of estimates and judgements
Thepreparationoffinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandreportedamounts,toassets,liabilities,incomeandexpensesthatarenotreadilyapparentfromothersources.
Theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandotherfactorsthatareconsideredtoberelevant.Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimatesarereviewedorintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiod,orintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.
Informationaboutcriticaljudgementsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamountsrecognisedinthefinancialstatementsisincludedinthefollowingnotes:
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For the period 17 December 2010 to 30 June 2011
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NOTES TO THE fINANcIAl STATEMENTS
• Note3(c),3(d)(ii),3(d)(iii)&3(e)(ii)
Informationaboutassumptionsandestimationsthatmayresultinadjustmentsinthefuturefinancialyearisincludedinthefollowingnotes:
• Note10–financialassets
• Note20–financialinstruments
(g) Principles of consolidation
ControlledentitiesareallthoseentitiesoverwhichtheAuthorityhasthepowertogovernthefinancialandoperatingpoliciessoastoobtainbenefitsfromitsactivities.
Intercompanytransactions,balancesandunrealisedgainsontransactionsbetweenentitiesareeliminated.Unrealisedlossesarealsoeliminatedunlessthetransactionprovidesevidenceoftheimpairmentoftheassettransferred.Accountingpoliciesofsubsidiarieshavebeenchangedwherenecessarytoensureconsistencywiththepoliciesadoptedbytheparententity.
(h) Accounting policy adopted
Inthecurrentperiod,theAuthorityhasadoptedallofthenewandrevisedStandardsandInterpretationsthatarerelevanttoitsoperationsandwhichareeffectiveforthereportingperiodbeginningon17December2010.
3 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
TheaccountingpoliciessetoutbelowareasummaryofthesignificantaccountingpoliciesthathavebeenappliedtotheaccountingperiodpresentedinthesefinancialstatementsandhavebeenappliedconsistentlybytheAuthority.
a) Goods and services tax (GST)
Revenues,expensesandassetsarerecognisednetoftheamountofassociatedGST,unlesstheGSTincurredisnotrecoverablefromtheAustralianTaxationOffice.Inthiscaseitisrecognisedaspartofthecostofacquisitionoftheassetoraspartoftheexpense.ReceivablesandpayablesarestatedinclusiveoftheamountofGSTreceivableorpayable.ThenetamountofGSTrecoverablefrom,orpayableto,theAustralianTaxationOfficeisincludedwithotherreceivablesorpayablesinthebalancesheet.
Cashflowsareincludedinthecashflowstatementonagrossbasis.However,theGSTcomponentsofcash
flowsarisingfrominvestingandfinancingactivitieswhichisrecoverablefrom,orpayableto,theAustralianTaxationOfficeareclassifiedasoperatingcashflows.
b) Income tax
TheAuthorityisanotforprofitentityandisnotalistedentityintheNationalTaxEquivalentRegimeEntityRegister.HenceisnotliableforincometaxundertheNationalTaxEquivalentRegime.
c) Revenue recognition
TheAuthorityrecognisesrevenuewhentheamountofrevenuecanbereliablymeasured,itisprobablethatfutureeconomicbenefitswillflowtotheentityandspecificcriteriahavebeenmetforeachoftheAuthority’sactivitiesasdescribedbelow.Theamountofrevenueisnotconsideredtobereliablymeasurableuntilallcontingenciesrelatingtothesalehavebeenresolved.TheAuthoritybasesitsestimatesonhistoricalresults,takingintoconsiderationthetypeofcustomer,thetypeoftransaction,andthespecificsofeacharrangement.
Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivable.Amountsdisclosedasrevenuearenetofreturns,tradeallowances,rebatesandamountscollectedonbehalfofthirdparties.
Revenueisrecognisedforthemajorbusinessactivitiesasfollows:
(i) Sale of goods and services
RevenueisrecognisedwhentheAuthoritytransfersthesignificantrisksandrewardsofownershipoftheassetsandobtainscontroloftheassetsthatresultfromsales.
(ii) Grants and contributions
AnunconditionalcontributionandgrantsreceivedarerecognisedasrevenuewhentheAuthorityobtainscontrolovertheassetscomprisingthecontribution.Controlovercontributionsisnormallyobtaineduponthereceiptofcash.
Whereanyunspentcontributionsatyearendarerepayabletothefundingbodiesinthefollowingfinancialyear,theunspentcontributionsareaccountedforasliabilitiesratherthanrevenue.
(iii) Investment revenue
Investmentrevenuecomprisesinterestincomeonfundsinvestedwithfinancialinstitutions.Anychangesinfairvalueoffinancialassetsheldwiththefinancialinstitutionsismeasuredatfairvaluethroughprofitandlossaccountandrecognisedusingtheeffective
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interestmethodassetoutinAASB139Financial Instruments: Recognition and Measurement.
(iv) Other revenue
Otherrevenueisrecognisedwhentherighttoreceivetherevenuehasbeenestablished.
c) Expenses
AllexpensesincurredonanaccrualbasisarerecognisedasexpenditurefortheyeartotheextentthattheAuthorityhasbenefitedbyreceivinggoodsorservicesandtheexpenditurecanbereliablymeasured.
Employee expenses
Employeeexpensesincludessalariesandwagesfortheyear,workerscompensationinsurancepremiumfortheyear,9%definedcontributionincurredforemployeesunderdefinedcontributionschemeandamountsnominatedbythefundmanagersinrespectofdefinedbenefitschemes.
Depreciation expenses
TheAuthoritydoesnotownanyassets.
Insurance expenses
TheAuthorityholdsinsurancepoliciescoveringproperty,publicliability,workerscompensation,directors’liabilityandothercontingencies.TheseinsurancecoversareconductedthroughtheNSWTreasuryManagedFundSchemeofselfinsuranceforGovernmentagencies.ThepremiumisdeterminedbytheFundManagerbasedonpastclaimexperienceandtheinsurancecoverageisreviewedperiodicallytoensurethatitisadequate.
Finance costs
Financecostsincurredfortheconstructionofanyqualifyingassetarecapitalisedduringtheperiodoftimethatisrequiredtocompleteandpreparetheassetforitsintendeduseorsale.Otherfinancecostsareexpensed.
d) Assets
(i) Cash and cash equivalent
Cashandcashequivalentsincludecashonhand,depositsheldatcallwithfinancialinstitutionsandothershort-term,highlyliquidinvestmentswiththeNSWTreasuryCorporation’sHour-Glassfacilities.Thesearereadilyconvertibletocashandclassifiedascashandcashequivalents.
(ii) Receivables
Receivablesincludetrade,interagencyandotherreceivables.
Tradeandotherreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Thesefinancialassetsarerecognisedinitiallyatfairvalue,usuallybasedonthetransactioncostorfacevalue.Subsequentmeasurementisatamortisedcostusingtheeffectiveinterestmethod,lessanallowanceforanyimpairmentofreceivables.
Collectabilityoftradereceivablesisreviewedonanongoingbasis.Debtswhichareknowntobeuncollectiblearewrittenoffbyreducingthecarryingamountdirectly.Anychangesarerecognisedinthesurplus/(deficit)fortheyearwhenimpaired,derecognisedorthroughtheamortisationprocess.AnallowanceaccountisusedwhenthereisobjectiveevidencethattheAuthoritywillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsofthereceivables.Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcyorfinancialreorganisation,anddefaultordelinquencyinpayments,areconsideredindicatorsthatthetradereceivableisimpaired.
Theamountoftheimpairmentallowanceisthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discountedattheoriginaleffectiveinterestrate.Short-termreceivableswithnostatedinterestratearemeasuredattheoriginalinvoiceamountwheretheeffectofdiscountingisimmaterial.
Theamountoftheimpairmentlossisrecognisedintheincomestatementwithinotherexpenses.Whenatradereceivableforwhichanimpairmentallowancehadbeenrecognisedbecomesuncollectibleinasubsequentperiod,itiswrittenoffagainsttheallowanceaccount.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainstotherexpensesintheincomestatement.
(iii) Impairment of financial assets
Allfinancialassets,exceptthosemeasuredatfairvaluethroughtheStatementofComprehensiveIncome,aresubjecttoanannualreviewforimpairment.Anallowanceforimpairmentisestablishedwhenthereisobjectiveevidencethattheentitywillnotbeabletocollectallamountsdue.
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NOTES TO THE fINANcIAl STATEMENTS
Forfinancialassetscarriedatamortisedcost,theamountoftheallowanceisthedifferencebetweentheassets’carryingamountandthepresentvalueofestimatedfuturecashflows,discountedattheeffectiveinterestrate.TheamountoftheimpairmentlossisrecognisedintheStatementofComprehensiveIncome.
Whenanavailableforsalefinancialassetisimpaired,theamountofthecumulativelossisremovedfromequityandrecognisedintheStatementofComprehensiveIncome,basedonthedifferencebetweentheacquisitioncost(netofanyprincipalrepaymentandamortisation)andcurrentfairvalue,lessanyimpairmentlosspreviouslyrecognisedintheStatementofComprehensiveIncome.
AnyreversalsofimpairmentlossesarereversedthroughtheStatementofComprehensiveIncome,wherethereisobjectiveevidence,theonlyexceptionbeingreversalsofimpairmentlossesonaninvestmentinanequityinstrumentclassifiedas“availableforsale”mustbemadethroughthereserve.Reversalsofimpairmentlossesoffinancialassetscarriedatamortisedcostcannotresultinacarryingamountthatexceedswhatthecarryingamountwouldhavebeenhadtherenotbeenanimpairmentloss.
(iv) De-recognition of financial assets and financial liabilities
Afinancialassetisderecognisedwhenthecontractualrightstothecashflowsfromthefinancialassetsexpire;oriftheAuthoritytransfersthefinancialasset:
• Wheresubstantiallyalltherisksandrewardshavebeentransferredor;
• WheretheAuthorityhasnottransferredsubstantiallyalltherisksandrewards,ifithasnotretainedcontrol.
WheretheAuthorityhasneithertransferrednorretainedsubstantiallyalltherisksandrewardsortransferredcontrol,theassetisrecognisedtotheextentoftheAuthority’scontinuinginvolvementintheasset.
Afinancialliabilityisderecognisedwhentheobligationspecifiedinthecontractisdischargedorcancelledorexpires.
(v) Other Assets
Otherassetsincludesuperannuationassetsandprepayments.Otherassetsarerecognisedonacostbasis.
(iv) Property, plant and equipment
TheAuthorityhasnotacquiredanypropertyplantandequipmentsinceinception.Itdidnotownanyassetsasatthebalancedate.TheRedfern-WaterlooAuthoritycurrentlychargesafeetotheAuthorityfortheuseofitspropertyplantandequipment.
Maintenance
Day-to-dayservicingcostsormaintenancearechargedasexpensesasincurred,exceptwheretheyrelatetothereplacementofapartorcomponentofanasset,inwhichcasethecostsarecapitalisedanddepreciated.Nomaintenanceexpenseswerecapitalisedduringtheperiod.
(vii) Leased assets
TheAuthoritydidnotownanyleasedassetsasatthebalancedate.
(viii) Investment properties
TheAuthoritydidnotownanyinvestmentpropertiesasatthebalancedate.
(ix) Intangible assets
TheAuthoritydidnotownanyintangibleassetsasatthebalancedate.
e) Liabilities
(ii) Trade and other payables
TheseamountsrepresentliabilitiesforgoodsandservicesprovidedtotheAuthorityandotheramounts.Payablesarerecognisedinitiallyatfairvalue,usuallybasedonthetransactioncostorfacevalue.Subsequentmeasurementisatamortisedcostusingtheeffectiveinterestmethod.Short-termpayableswithnostatedinterestratearemeasuredattheoriginalinvoiceamountwheretheeffectofdiscountingisimmaterial.
(ii) Employee benefits
Wages and salaries, annual leave and sick leave
Liabilitiesforwagesandsalaries,includingnon-monetarybenefitsandannualleaveexpectedtobesettledwithintwelvemonthsofthereportingdatearerecognisedinrespectofemployees’serviceuptothereportingdateatundiscountedamountsandaremeasuredattheamountsexpectedtobepaidwhentheliabilitiesaresettled.
Long-termannualleavethatisnotexpectedtobetakenwithintwelvemonthsismeasuredatpresent
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valueinaccordancewithAASB119EmployeeBenefits.Marketyieldsongovernmentbondsof5.21%wereappliedtodiscountlong-termannualleave.
Long service leave
Theliabilityforlongserviceleaveisrecognisedintheprovisionforemployeebenefitsandmeasuredasthepresentvalueofexpectedfuturepaymentstobemadeinrespectofservicesprovidedbyemployeesuptothereportingdateusingthediscountmethod.Considerationisgiventoexpectedfuturewageandsalarylevels,experienceofemployeedeparturesandperiodsofservice.Expectedfuturepaymentsarediscountedusingmarketyieldsatthereportingdateonnationalgovernmentbondswithtermstomaturityandcurrencythatmatch,ascloselyaspossible,theestimatedfuturecashoutflows.
Provisionsmadeinrespectofemployeebenefitswhicharenotexpectedtobesettledwithin12monthsaremeasuredatthepresentvalueoftheestimatedfuturecashoutflowstobemadebytheconsolidatedentityinrespectofservicesprovidedbyemployeesuptoreportingdate.Thegovernmentbondrateof5.21%wasappliedfordiscountingpurposes.
Theoutstandingamountsofpayrolltax,workers’compensation,insurancepremiumsandfringebenefitstax,whichareconsequentialtoemployment,arerecognisedasliabilitiesandexpenseswhentheemployeebenefitstowhichtheyrelatehavebeenrecognised.
Retirement benefit obligations
AllemployeesoftheAuthorityareentitledtohavecontributionsmadetoanominatedordefaultsuperannuationplanontheirbehalf,inaccordancewiththeSuperannuationGuaranteelegislation.TheliabilityoftheAuthorityislimitedtotheamountofthecontributionsrequiredbythelegislationandisrecognisedasanexpenseasthecontributionsbecomepayable.
(iii) Provisions
ProvisionsarerecognisedwhentheAuthorityhasapresentobligationasaresultofapastevent,itisprobablethattheAuthoritywillberequiredtosettletheobligation,andareliableestimatecanbemadeoftheamountoftheobligation.
Provisionsaremeasuredatthepresentvalueofmanagement’sbestestimateoftheexpenditurerequiredtosettlethepresentobligationatthereportingdate.Thediscountrateusedtodetermine
thepresentvaluereflectscurrentassessmentsofthetimevalueofmoneyandtherisksspecifictotheliability.Theincreaseintheprovisionduetothepassageoftimeisrecognisedasinterestexpense.
f) Comparative information
TherearenocomparativebalancesastheAuthoritywasincorporatedon17December2010anditcommenceditsoperationfromthatdate.
Application of new and revised Accounting Standards
StandardsandInterpretationsaffectingamountsreportedinthecurrentperiod(and/orpriorperiods)
ThefollowingnewandrevisedStandardsandInterpretationshavebeenadoptedinthecurrentperiodandhaveaffectedtheamountsreportedinthesefinancialstatements.DetailsofotherStandardsandInterpretationsadoptedinthesefinancialstatementsbutthathavehadnoeffectontheamountsreportedaresetoutinsection(ii).
Standards affecting presentation and disclosure
• AmendmentstoAASB7‘FinancialInstruments:Disclosure’(adoptedinadvanceofeffectivedateof1January2011).Theamendments(partofAASB2010-4‘FurtherAmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProject’)clarifytherequiredlevelofdisclosuresaboutcreditriskandcollateralheldandproviderelieffromdisclosurespreviouslyrequiredregardingrenegotiatedloans.NotapplicabletotheAuthorityasatthebalancedate.
• AmendmentstoAASB5‘Non-currentAssetsHeldforSaleandDiscontinuedOperations’.DisclosuresinthesefinancialstatementshavebeenmodifiedtoreflecttheclarificationinAASB2009-5‘FurtherAmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProject’thatthedisclosurerequirementsinStandardsotherthanAASB5donotgenerallyapplytononcurrentassetsclassifiedasheldforsaleanddiscontinuedoperations.NotapplicabletotheAuthorityasatthebalancedate.
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NOTES TO THE fINANcIAl STATEMENTS
• AmendmentstoAASB101‘PresentationofFinancialStatements’(adoptedinadvanceofeffectivedateof1January2011).Theamendments(partofAASB2010-4‘FurtherAmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProject’)clarifythatanentitymaychoosetopresenttherequiredanalysisofitemsofothercomprehensiveincomeeitherinthestatementofchangesinequityorinthenotestothefinancialstatements.Allmaterialitemsareadequatelydisclosedbywayofnotestothefinancialstatements.
• AmendmentstoAASB107‘StatementofCashFlows’.Theamendments(partofAASB2009-5‘FurtherAmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProject’)specifythatonlyexpendituresthatresultinarecognisedassetinthestatementoffinancialpositioncanbeclassifiedasinvestingactivitiesinthestatementofcashflows.Consequently,cashflowsinrespectofdevelopmentcoststhatdonotmeetthecriteriainAASB138‘IntangibleAssets’forcapitalisationaspartofaninternallygeneratedintangibleasset(and,therefore,arerecognisedinprofitorlossasincurred)havebeenreclassifiedfrominvestingtooperatingactivitiesinthestatementofcashflows.NotapplicabletotheAuthorityasatthebalancedate.
Standards and Interpretations affecting the reported results or financial position
TherearenonewandrevisedStandardsandInterpretationsadoptedinthesefinancialstatementsaffectingthereportingresultsorfinancialposition.
ii Standards and Interpretations adopted with no effect on financial statements
ThefollowingnewandrevisedStandardsandInterpretationshavealsobeenadoptedinthesefinancialstatements.Theiradoptionhasnothadanysignificantimpactontheamountsreportedinthesefinancialstatementsbutmayaffecttheaccountingforfuturetransactionsorarrangements.
AASB2009-5‘FurtherAmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProject’
ExceptfortheamendmentstoAASB5andAASB107describedearlierthissection,theapplicationofAASB2009-5hasnothadanymaterialeffectonamountsreportedinthefinancialstatements.
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AASB2009-8‘AmendmentstoAustralianAccountingStandards–GroupCash-SettledSharebasedPaymentTransactions’
TheapplicationofAASB2009-makesamendmentstoAASB2‘Share-basedPayment’toclarifythescopeofAASB2,aswellastheaccountingforgroupcash-settledshare-basedpaymenttransactionsintheseparate(orindividual)financialstatementsofanentityreceivingthegoodsorserviceswhenanothergroupentityorshareholderhastheobligationtosettletheaward.TheCouncil’sfinancialstatementsarenotimpactedbythisamendments.
AASB2009-10‘AmendmentstoAustralianAccountingStandards–ClassificationofRightsIssues’
TheapplicationofAASB2009-10makesamendmentstoAASB132‘FinancialInstruments:Presentation’toaddresstheclassificationofcertainrightsissuesdenominatedinaforeigncurrencyaseitheranequityinstrumentorasafinancialliability.Todate,theAuthorityhasnotenteredandithasnolegalrighttoenterintoanyarrangementsthatwouldfallwithinthescopeoftheamendments.
AASB2010-3‘AmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProject’
TheapplicationofAASB2010-3makesamendmentstoAASB3(2008)‘BusinessCombinations’toclarifythatthemeasurementchoiceregardingnon-controllinginterestsatthedateofacquisitionisonlyavailableinrespectofnoncontrollingintereststhatarepresentownershipinterestsandthatentitletheirholderstoaproportionateshareoftheentity’snetassetsintheeventofliquidation.Allothertypesofnoncontrollinginterestsaremeasuredattheiracquisition-datefairvalue,unlessanothermeasurementbasisisrequiredbyotherStandards.
Inaddition,theapplicationofAASB2010-3makesamendmentstoAASB3(2008)togivemoreguidanceregardingtheaccountingforshare-basedpaymentawardsheldbytheacquiree’semployees.Specifically,theamendmentsspecifythatshare-basedpaymenttransactionsoftheacquireethatarenotreplacedshouldbemeasuredinaccordancewithAASB2‘Share-basedPayment’attheacquisitiondate(‘market-basedmeasure’).ThisamendmentisnotapplicabletotheAuthority.
AASB2010-4‘FurtherAmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProject’
ExceptfortheamendmentstoAASB7andAASB101describedearlierthissection,theapplicationofAASB2010-4hasnothadanymaterialeffectonamountsreportedinthefinancialstatements.
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For the period 17 December 2010 to 30 June 2011
SMDA Proforma Accounts
NOTES TO THE fINANcIAl STATEMENTS
Interpretation19‘ExtinguishingFinancialLiabilitieswithEquityInstruments’
ThisInterpretationprovidesguidanceregardingtheaccountingfortheextinguishmentofafinancialliabilitybytheissueofequityinstruments.Inparticular,theequityinstrumentsissuedundersucharrangementswillbemeasuredattheirfairvalue,andanydifferencebetweenthecarryingamountofthefinancialliabilityextinguishedandthefairvalueofequityinstrumentsissuedwillberecognisedinprofitorloss.ThisamendmentisnotapplicabletotheAuthority.
iii Standards and Interpretations in issue not yet adopted
Atthedateofauthorisationofthefinancialstatements,theStandardsandInterpretationslistedbelowwereinissuebutnotyeteffective.
Standard/Interpretation Effective for annual reporting periods beginning on or after
Expected to be initially applied in the financial year ending
AASB124‘RelatedPartyDisclosures’(revisedDecember2009),AASB2009-12‘AmendmentstoAustralianAccountingStandards’
1January2011 30June2012
AASB9‘FinancialInstruments’,AASB2009-11‘AmendmentstoAustralianAccountingStandardsarisingfromAASB9’andAASB2010-7‘AmendmentstoAustralianAccountingStandardsarisingfromAASB9(December2010)’
1January2013 30June2014
AASB2009-14‘AmendmentstoAustralianInterpretation–PrepaymentsofaMinimumFundingRequirement’
1January2011 30June2012
AASB2010-5‘AmendmentstoAustralianAccountingStandards’
1January2011 30June2012
AASB2010-6‘AmendmentstoAustralianAccountingStandards–DisclosuresonTransfersofFinancialAssets’
1July2011 30June2012
AASB2010-8‘AmendmentstoAustralianAccountingStandards–DeferredTax:RecoveryofUnderlyingAssets
1January2012 30June2013
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4. DETERMINATION OF FAIR VALUES
Anumberofaccountingpoliciesanddisclosuresrequirethedeterminationoffairvalue,forbothfinancialandnon-financialassetsandliabilities.Fairvalueshavebeendeterminedformeasurementand/ordisclosurepurposesbasedonthefollowingmethods:
(i) Trade and other receivables
Thefairvalueoftradeandotherreceivablesisbasedonthenetrealisablevalueafterconsideringanypossiblerisksofimpairment.Alltradeandotherreceivables,afterimpairment,areexpectedtobereceivedwithinashortperiodoftimeandconsideredasfairvaluesatthedatewhengoodsandserviceswereprovided.
(ii) Trade and other payables
Tradeandotherpayablesareexpectedtobepaidwithinashortperiodoftimeandwereconsideredasfairvaluesatthedategoodsandserviceswereacquired.
Whenapplicable,furtherinformationabouttheassumptionsmadeindeterminingfairvaluesaredisclosedinthenotesspecifictotheassetsortheliability.
5. FINANCIAL RISK MANAGEMENT
TheAuthorityhasexposuretothefollowingrisksfromtheuseoffinancialinstruments:
• Creditrisk
• Liquidityrisk
• Marketrisk
• Operationalrisk
ThisnotepresentsinformationabouttheAuthority’sexposuretoeachoftheaboverisks,theirobjectives,policies,andprocessesformeasuringandmanagingrisk,andthemanagementofcapital.Furtherquantitativedisclosuresareincludedthroughtheseconsolidatedfinancialstatements.
Risk Management framework
TheBoardofDirectorshastheoverallresponsibilityfortheestablishmentandoversightoftheriskmanagementframework.TheChiefExecutiveOfficerisresponsiblefordevelopingandmonitoringtheoverallriskmanagementstrategyandpoliciesfortheAuthority.TheChiefExecutiveOfficerisresponsiblefortheestablishmentandoversightofriskmanagementandreviewstheAuthority’s
activitiesandassets.TheChiefAuditExecutivereportstotheAuditandRiskCommittee,whichinturnreportsregularlytotheBoardonitsactivities.
Initsstart-upphase,theAuthorityisestablishingriskmanagementpoliciestoidentifyandanalysetherisksfacedbytheAuthorityinsettingappropriaterisklimitsandcontrols,andtomonitorriskandadherencetolimits.RiskmanagementpoliciesandsystemswillbereviewedregularlytoreflectchangesinmarketconditionsandtheAuthority’sactivities.TheAuthority,throughtraininginandimplementationofpoliciesandprocedureswilldevelopadisciplinedandconstructivecontrolenvironmentinwhichallemployeesunderstandtheirrolesandobligations.
TheAuditandRiskCommitteeoverseeshowmanagementmonitorscompliancewiththeriskmanagementpoliciesandproceduresandwillreviewtheadequacyoftheriskmanagementframeworkinrelationtorisksfacedbytheAuthority.TheChiefExecutiveinthecapacityoftheChiefAuditExecutivewillmanagetheinternalauditfunctionbyconductingscheduledandadhocreviewsofriskmanagementcontrolprocedures,theresultsofwhichwillbereportedtotheAuditandRiskCommittee.
TheAuthority’sprincipalfinancialinstrumentscomprisecashandshorttermdeposits.ThemainpurposeofthesefinancialinstrumentsistofundtheAuthority’soperations.TheAuthorityhasvariousotherfinancialinstrumentssuchasdebtorsandtradecreditors,whicharisedirectlyfromitsoperations.Itis,andhasbeenthroughouttheperiodunderreview,theAuthority’spolicythatnotradinginfinancialinstrumentsshallbeundertaken.ThemainrisksarisingfromtheAuthority’sfinancialinstrumentsareinterestraterisk,liquidityriskandcreditrisk.Theexecutivewillreviewandagreepoliciesformanagingeachoftheserisksandthesearesummarisedbelow.
(a) Credit Risk
CreditriskistheriskoffinanciallosstotheAuthorityifadebtororcounterpartytoafinancialinstrumentfailstomeetitscontractualobligations.CreditriskarisesfromthefinancialassetsoftheAuthority,includingcash,receivablesandtermdeposits.Themaximumexposuretocreditriskisgenerallyrepresentedbythecarryingamountofthefinancialassets(netofanyallowanceforimpairment).TheAuthorityhasnotgrantedanyfinancialguarantees.
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For the period 17 December 2010 to 30 June 2011
SMDA Proforma Accounts
NOTES TO THE fINANcIAl STATEMENTS
(i) Cash
CashcomprisescashonhandandbankbalanceswiththeWestpacBankofAustralia.Interestisearnedondailybankbalancesatthemonthlyaveragecashrate.ItistheAuthority’spracticetodealwithbanksof“AAA”ratingsrecommendedbytheNSWGovernment.
(ii) Receivables
TheAuthority’sexposuretocreditrisksisinfluencedmainlybytheindividualcharacteristicsofeachdebtor.TheAuthorityhastradedebtsandotherdebts.
• Trade debts
Tradedebtorsaremainlyinteragencyreceivablesrecognisedasamountsreceivableatbalancedate.Collectabilityoftradedebtorsisreviewedonanongoingbasisfromthemonthlyagedanalysisreport.TheDirectorofFinanceandCorporateServicesisresponsibleforthecreditcontrolfunctionofalloutstandingtradedebtors.Debtswhichareknowntobeuncollectiblearewrittenoff.Anallowanceforimpairmentisraisedwhenthereisobjectiveevidencethattheentitywillnotbeabletocollectallamountsdue.Thisevidenceincludespastexperience,andcurrentandexpectedchangesineconomicconditions.Thecreditriskisthecarryingamount(netofanyallowanceforimpairment).TheaveragecreditperiodextendedbytheAuthorityisproposedtobe30days.Nointerestischargedontheoverdueinvoicesanddebtors.
TherevenuestreamfortheAuthoritymainlyconsistsofGovernmentgrantsagainstwhichtherecanbenodoubtfuldebts.AsignificantportionofthetradereceivablesbalanceisduefromGeneralGovernmententitiesandthebalanceisduefromPublicTradingEnterprises.
• Other debts
TheAuthorityisexposedtovariousconcentrationsofcreditrisktootherdebts.Thesedebtswereincurredasaresultofthepaymentofminoradvancesrepayablewithininashortperiodoftime.Thecreditriskisexposedinthemonthlyagedanalysisreport.TheDirectorofFinanceandCorporateServicesisresponsibleforthecollectabilityofdebts.
(b) Liquidity Risk
LiquidityriskistheriskthattheAuthoritywillbeunabletomeetitspaymentobligationswhentheyfalldue.TheAuthoritycontinuouslymanagesthe
riskthroughmonitoringandplanningfuturecashflowsandensureadequateholdingofliquidassets.Theobjectiveistomaintainabalancebetweencontinuityoffundingandflexibilitythroughtheuseofappropriateinvestmentstrategies.
TheliquidityriskthatmightarisefromvariousclassesoffinancialassetsheldbytheAuthorityanditsmanagementisexplainedunderthecreditriskofeachclassoffinancialasset.
Duringtheperiod,therewerenodefaultsorbreachesonanyamountspayabletocreditors.Noassetshavebeenpledgedascollateral.TheAuthority’sexposuretoliquidityriskisdeemedinsignificantbasedonpriorperiods’dataandacurrentassessmentofrisk.
Theliabilitiesarerecognisedforamountsduetobepaidinthefutureforgoodsorservicesreceived,whetherornotinvoiced.Amountsowingtosuppliers(whichareunsecured)aresettledinaccordancewiththepolicysetoutinTreasurer’sDirection219.01.Iftradetermsarenotspecified,paymentismadenolaterthantheendofthemonthfollowingthemonthinwhichaninvoiceorastatementisreceived.Treasurer’sDirection219.01allowstheMinistertoawardinterestforlatepayment.Nointerestwaspaidduringtheyear.
(c) Market risk
Marketriskistheriskthatchangesinmarketprices,suchasforeignexchangerates,interestratesandequitypriceswillaffecttheincomeorvalueoftheholdingsoffinancialinstruments.Theobjectiveofmarketriskmanagementistomanageandcontrolmarketriskexposureswithininacceptableparameters,whileoptimisingthereturn.
TheAuthority’sexposurestomarketriskareasfollows:
• Growth:thedepthandlengthoftheglobaleconomicdownturn,anditsimpactontheinvestmentsheldbytheAuthority
• Systematicrisk:liquidityandcounterpartyrisksinfinancialmarkets
• LackofCorporateGovernance:Universallackofcorporategovernanceleadstofraudandbankruptcies.
TheAuthoritywillmanageitsmarketriskexposurebytheconstructionofariskframeworkthatquantifiesthepossiblerisksoutcomeindifferentevents.
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(i)Currencyrisk
TheAuthorityhasnoexposuretoforeigncurrencyriskonthefinancialinstrumentsatthebalancedate.
(ii)Interestraterisk
TheConsolidatedentityisexposedtointerestrateriskonitsdepositswithbankwhichissubjecttomarketrateofinterest.
(iii)Otherpricerisk
TheAuthorityisnotexposedtoanysignificantpriceriskonthefinancialinstrumentsatthebalancedate.
(d) Operational risk
TheAuthoritywillmanageitsoperationalriskaspartoftheriskmanagementstrategy.OperationalriskistheriskofdirectandindirectlossesarisingfromawidevarietyofcausesassociatedwiththeAuthority’sprocesses,personnel,technology,legalandregulatoryrequirementsandgenerallyacceptedstandardsofcorporatebehaviour.OperationalriskarisesfromalloftheAuthority’soperations.
TheAuthority’sobjectiveistomanageoperationalrisksoastobalancetheavoidanceoffinanciallossesanddamagestotheAuthority’sreputationwithoverallcosteffectivenessandtoavoidcontrolproceduresthatrestrictinitiativeandcreativity.
Theprimaryresponsibilityforthedevelopmentandimplementationofcontrolstoaddressoperationalriskisassignedtoseniormanagementwithineachbusinessunit.Theresponsibilitywillbesupportedbythedevelopmentofstandards,policiesandproceduresinthefollowingareas:
• Requirementsforappropriatesegregationofduties,includingtheindependentauthorisationoftransactions
• Requirementsforthereconciliationandmonitoringoftransactions
• Compliancewithregulatoryandlegalrequirements
• Documentationofcontrolsandprocedures
• Requirementsfortheperiodicreportingtoseniormanagement,relevantcommitteesandtheBoard.
• Trainingandprofessionaldevelopment
• Riskmitigation,includinginsurancewherethisiseffective.
Compliancewithestablishedstandards,policiesandprocedureswillbesupportedbyaprogrammeofperiodicreviewundertakenbyInternalAudit.Theresultsoftheinternalauditreviewswillbediscussedwithmanagementofthebusinessunittowhichtheyrelate,withreportssubmittedtoSeniorManagement,theAuditandRiskCommitteeandtheBoard.
Net fair values of financial assets and liabilities
Thecarryingamountoffinancialassetsandfinancialliabilitiesrecordedinthefinancialstatementsapproximatestheirnetfairvalues.
6. Capital Management
TheAuthoritymanagesitscapitaltoensurethatitwillbeabletocontinueasagoingconcerninordertomeetitsstatutoryobligations.ThecapitalstructureoftheAuthorityconsistsofcashandcashequivalentsandretainedprofits.
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For the period 17 December 2010 to 30 June 2011
SMDA Proforma Accounts
NOTES TO THE fINANcIAl STATEMENTS
Consolidated SMDA
Period 17 December
to 30 June 2011
Period 17 December to 30 June 2011
$’000 $’000
7 (a) Revenue from continuing operations:
Income from services 1,048 1,048
1,048 1,048
(b) Grants and Contributions
NSW Government agencies (i)
Cash 985 985
In-Kind 515 515
1,500 1,500
(c) Interest from bank deposits 5 5
(i) Grants income received from Sydney Harbour Foreshore Authority.
8 (a) Employee benefit expenses
Salaries and wages 1,357 799
Superannuation 64 --
Leave benefits 58 --
Payroll Tax 33 --
1,512 799
(b) Personal services from OSMDA -- 713
-- 713
(c) Other Expenses
Conferences and seminars 4 4
External Audit 25 25
Legal 27 27
Consultancies and contract expenses 158 158
Accomodation 59 59
Other 271 271
total other expenses 544 544
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Consolidated SMDA
Period 17 December to 30 June 2011
Period 17 December to 30 June 2011
$’000 $’000
9 Surplus for the period
Surplus has been arrived at after charging/(crediting) the following losses/(gains):
Auditor’s remuneration 25 25
Consolidated SMDA
As at 30 June 2011 As at 30 June 2011
10 Cash and Cash Equivalents
Cash on hand and at bank 690 690
690 690
11 Receivables
Current
Trade receivables 426 --
Goods and Services tax recoverable 52 52
Prepayments 8 8
Total trade & other receivables 486 60
12 Ageing of past due but not impaired receivables
Less than 3 months overdue 426 --
3 to 6 months overdue -- --
later than 6 months overdue -- --
426
13 Trade and other payables
Current trade & other payables
Trade payables 132 89
Other Payables 163 164
295 253
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For the period 17 December 2010 to 30 June 2011
SMDA Proforma Accounts
NOTES TO THE fINANcIAl STATEMENTS
Consolidated SMDA
As at 30 June 2011 As at 30 June 2011
$’000 $’000
14 Provisions
Employee benefits and related on-costs
Current
Recreation leave
Short term 76 --
Long term 37 --
Long Service leave 14 --
127 --
Non-Current
Long Service leave 257 --
257 --
Total employee benefits 384 --
Total provisions 384 --
15 Accumulated funds
Balance at the beginning of the period -- --
Surplus for the period 497 497
Balance at end of the period 497 497
16 (a) Cash and cash equivalents (Note 10) 690 690
(b) Reconciliation of surplus for the period to net cash from operating activities
Surplus for the period from continuing operations 497 497
decrease/(Increase) in trade and other receivables (486) (60)
(decrease)/Increase in trade and other payables and provisions 679 253
Net cash flows from operating activities 690 690
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Consolidated SMDA
As at 30 June 2011 As at 30 June 2011
$’000 $’000
17 Commitments for Expenditure
Capital Commitments -- --
Operating commitments 7 7
Payable within one year (inclusive of GST) 7 7
The above includes GST of $636 that is expected to be recoverable from the Australian Taxation Office.
18 Controlled Entities
Name of entity Country of Incorporation 2011
%
The Office of Sydney Metropolitan Development Authority
Australia, NSW-
The Office is a division of the Government Service and provides personnel services to the Authority.
19 Contingent Liabilities
There are no known contingent liabilities for the Authority as at the balance date.
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For the period 17 December 2010 to 30 June 2011
SMDA Proforma Accounts
NOTES TO THE fINANcIAl STATEMENTS
20 Financial instruments
The Authority’s principal financial instruments, and the main risks associated with them, are outlined below. The financial instruments arise directly from the Authority’s trading activities and operations. The Authority does not enter into or trade in financial instruments for speculative purposes.
Consolidated SMDA
As at 30 June 2011 As at 30 June 2011
$’000 $’000
Financial instrument categories
Financial assets
Cash & deposits 690 690
Trade & other receivables 486 486
1,176 1,176
Financial liabilities
Trade & other payables 295 295
295 295
Non interest bearing trade payables 295 295
295 295
BankbalancesheldwiththeWestpacbankearnedaninterestof5%duringtheperiod.
TheabovetradereceivablesbalanceisduefromGeneralGovernmententitiesandrecoveredattheendofeachmonth.Nointerestischargedonthisbalanceandthedebtisnotimpaired.
Netfairvaluesoffinancialassetsandliabilities:Thecarryingamountoffinancialassetsandfinancialliabilitiesrecordedinthefinancialstatementsapproximatetheirnetfairvalues.
21 Events after the balance date
On5September2011theNewSouthWalesGovernmenthasapprovedthewindingupoftheRedfern-WaterlooAuthority.Whenwoundup,allassetsandliabilities,rightsandobligationswillbetransferredtotheSydneyMetropolitanDevelopmentAuthority.ThiswillalsoleadtothewindingupofOfficeoftheRedfern-WaterlooAuthorityandtransferallemployeestotheOfficeoftheSydneyMetropolitanDevelopmentAuthority.
ENDOFAUDITEDFINANCIALSTATEMENTS
41
INTERNAl AudIT ANd RISK MANAgEMENT STATEMENT
OSMDA Accounts
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OSMDA Accounts
INdEpENdENT AudIT REpORT
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OSMDA Accounts
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STATEMENT By MEMBERS Of THE BOARd
Statement by Members of the Board of Sydney Metropolitan Development Authority on the adoption of the financial statements for the year ended 30 June 2011.
Pursuant to Section 41C (1B) of the Public Finance and Audit Act 1983 and in accordance with a resolution of the members of the Board of the Sydney Metropolitan Development Authority, we declare than in our opinion:
1. The accompanying financial statements exhibit a true and fair view of the financial position and financial performance of Sydney Metropolitan Development Authority as at 30 June 2011.2. The financial statements have been prepared in accordance with the Australian Accounting Standards and Interpretations and the provisions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2010 and the Treasurer’s Directions; and3. We are not aware of any circumstances that would render any particulars included in the financial statements to be misleading or inaccurate.
Dr Col Gellatly AO Roy Wakelin-King AMChairman ChiefExecutiveOfficer
28October2011
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OSMDA Accounts
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For the period 17 December 2010 to 30 June 2011
STATEMENT Of cOMpREHENSIvE INcOME
notes Period ended
30-June-2011
$’000
Revenue from continuing operations
Income from personnel services to Authority 5 713
Total income 713
Other Income
Expenditure
Employee benefits expenses 6 713
Total expenditure 713
Surplus for the period --
Other comprehensive income --
Total comprehensive income for the period --
OSMDA Accounts
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OSMDA Accounts
STATEMENT Of fINANcIAl pOSITION
As at 30 June 2011
As at
notes 30-June-2011
$’000
ASSETS
Current assets
Trade and other receivables 8 713
Total current assets 713
Non-current assets --
Total non-current assets --
Total assets 713
LIABILITIES
Current liabilities
Trade and other payables 10 329
Provisions 11 182
Total current liabilities 511
Non current liabilities
Provisions 11 202
Total non current liabilities 202
Total liabilities 713
Net assets --
EQUITY
Accumulated funds 12 --
Contributed equity
Total equity --
The above statement should be read in conjunction with the accompanying notes.
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For the period 17 December 2010 to 30 June 2011
STATEMENT Of cHANgES IN EquITy
Period ended
notes 30-June-2011
$’000
Balance of equity at the beginning of the period --
Total comprehensive income for the period --
Transactions with owners in their capacity as owners --
Balance of equity at the end of the period --
The above statement should be read in conjunction with the accompanying notes.
OSMDA Accounts
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OSMDA Accounts
For the period 17 December 2010 to 30 June 2011
STATEMENT Of cASH flOWS
Period ended
30-June-2011
$’000
inflow/
notes (outflow)
Cash flows from operating activities
Receipts from customers --
Payments to suppliers and employees --
Net cash flows from operating activities 13(b)
Cash flows from investing activities --
Net cash flows used in investing activities --
Cash flows from financing activities --
Net cash flows from financing activities --
Net increase in cash held
Cash and cash equivalents at the beginning of the period --
Cash and cash equivalents at the end of period
The above statement should be read in conjunction with the accompanying notes.
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NOTES TO THE fINANcIAl STATEMENTS
1. REPORTING ENTITY
TheOfficeoftheSydneyMetropolitanDevelopmentAuthority(theOffice)isaDivisionoftheGovernmentService,establishedpursuanttoPart2ofSchedule1tothePublic Sector Employment and Management Act 2010.Itisanotforprofitentity,asprofitisnottheprincipalobjective.ItisconsideredaspartoftheNSWTotalStateSectorAccounts.ItisdomiciledinAustraliaanditsprincipalofficeisatLevel11,Tower2,1LawsonSquare,RedfernNSW2016.
TheOffice’sobjectiveistoprovidepersonnelservicestotheSydneyMetropolitanDevelopmentAuthority(theAuthority).
TheOfficecommencedoperationson17December2010,whenitassumedresponsibilityfortheemployeesandemployee-relatedliabilitiesoftheAuthoritywhoweretransferredfromothergovernmentagencies.Theassumedliabilitieswererecognisedon17December2010togetherwithanoffsettingreceivablerepresentingtherelatedfundingduefromothergovernmentagencies.
TheAuthority(andthereforetheOffice)iscurrentlyfundedbytheNSWGovernmentthroughto30June2012.TheFinancialstatementsfortheyearended30June2011hasbeenauthorisedforissuebytheBoardoftheAuthorityonthe21October,2011.
2. BASIS OF PREPARATION
(a) Statement of Compliance
TheOffice’sfinancialstatementsaregeneralpurposefinancialstatementswhichhavebeenpreparedinaccordancewithapplicableAustralianAccountingStandards(whichincludeAustralianAccountingInterpretations)andtherequirementsofthePublic Finance and Audit Act 1983andRegulation,Treasurer’sDirections,theGrowth Centres (Development Corporations) Act of 1974.
(b) Historical cost convention
Thesefinancialstatementshavebeenpreparedunderthehistoricalcostconvention,asmodifiedbytherevaluationoffinancialassetsandliabilitiesatfairvaluethroughprofitorloss,certainclassesofemployeeentitlements.
(c) Profit status of the Authority
TheOfficehasassesseditsprofitstatusforthefinancialyearended30June2011anddetermineditsstatusasnot-for-profitforfinancialreportingpurposes.
(d) Basis of measurement
Thefinancialstatementshavebeenpreparedonthehistoricalcostbasisexceptforthefollowingmaterialitems:
• Financialinstrumentsatfairvaluethroughprofitandlossandavailableforsalearemeasuredatfairvalue
• Thedefinedbenefitassetismeasuredasthenettotaloftheplanassets,plusunrecognisedpastservicecostandunrecognisedactuariallosses,lessunrecognisedactuarialgainsandthepresentvalueofthedefinedbenefitobligation
(e) Functional and presentation currency
ThesefinancialstatementsarepresentedinAustraliandollars,whichistheAuthority’sfunctionalcurrency.Allamountsareroundedtothenearestonethousanddollarsunlessotherwisestated.
(f) Comparative information
SincetheAuthoritywasincorporatedandtheOfficewasestablishedon17December2010andcommencedoperationonthesamedaythefinancialstatementswaspreparedfrom17Decemberto30June2011.Therefore,thereisnocomparativeinformationtoreportforthisperiod.
(f) Use of estimates and judgements
Thepreparationoffinancialstatementsrequiresmanagementtomakejudgements,estimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandreportedamountstoassets,liabilities,incomeandexpensesthatarenotreadilyapparentfromothersources.
Theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandotherfactorsthatareconsideredtoberelevant.Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimatesarerecognised,orintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiod,orintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.
Informationaboutcriticaljudgementsinapplyingaccountingpoliciesthathavethemostsignificanteffectontheamountsrecognisedinthefinancialstatementsisincludedininnotes3(f)and3(h).
Informationaboutassumptionsandestimationsthatmayresultinadjustmentsinthefuturefinancialyearisincludedininnotes3(f)and3(h).
OSMDA Accounts
For the period 17 December 2010 to 30 June 2011
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For the period 17 December 2010 to 30 June 2011
OSMDA Accounts
NOTES TO THE fINANcIAl STATEMENTS
(g) Changes in accounting policy
Inthecurrentyear,theOfficehasadoptedallofthenewandrevisedStandardsandInterpretationsthatarerelevanttoitsoperationsandwhichareeffectiveforannualreportingperiodsbeginningon1July2011.Asaresult,theOfficehaschangeditsaccountingpoliciesanddisclosureinrelationtothepresentationoffinancialstatements.
Whenthepresentationorclassificationofitemsinthefinancialstatementsareamended,comparativeamountsarereclassifiedunlessthereclassificationisimpracticable.Whencomparativeamountsarereclassified,theOfficediscloses:
i)thenatureofthereclassification;ii)theamountofeachitemorclassofitems
thatisreclassified;andiii)thereasonforthereclassification.
3. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Setoutbelowisasummaryofthesignificantaccountingpoliciesthathavebeenappliedconsistentlytoallperiodspresentedinthesefinancialstatements,exceptasexplainedinnotes2(e),3(a)(iv),and3(c)(v),whichaddresschangesinaccountingpolicies.
Certaincomparativeamountshavebeenreclassifiedtoconformwiththecurrentyear’spresentation.
a) Goods and services tax (GST)
Revenues,expensesandassetsarerecognisednetoftheamountofassociatedGST,unlesstheGSTincurredisnotrecoverablefromtheAustralianTaxationOffice.Inthiscaseitisrecognisedaspartofthecostofacquisitionoftheassetoraspartoftheexpense.ReceivablesandpayablesarestatedinclusiveoftheamountofGSTreceivableorpayable,ifany.ThenetamountofGSTrecoverablefrom,orpayableto,theAustralianTaxationOfficeisincludedwithotherreceivablesorpayablesinthebalancesheet.
Cashflowsareincludedinthecashflowstatementonagrossbasis.However,theGSTcomponentsofcashflowsarisingfrominvestingandfinancingactivitieswhichisrecoverablefrom,orpayableto,theAustralianTaxationOfficeareclassifiedasoperatingcashflows.
b) Income tax
TheOfficeisnotliableforIncomeTaxasitisanentityestablishedandcontrolledbytheNewSouthWalesGovernment.
c) Revenue recognition
Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivable.Revenuefromtherenderingofpersonnelservicesisrecognisedwhentheserviceisprovidedandonlytotheextentthattheassociatedrecoverableexpensesarerecognised.
d) Expenses
AllexpensesincurredonanaccrualbasisarerecognisedasexpenditurefortheyeartotheextentthattheOfficehasbenefitedbyreceivinggoodsorservicesandtheexpenditurecanbereliablymeasured.
e) Employee expenses
Employeeexpensesincludessalariesandwagesfortheyear,workerscompensationinsurancepremiumfortheyear,9%definedcontributionincurredforemployeesunderdefinedcontributionschemeandamountsnominatedbythefundmanagersinrespectofdefinedbenefitschemes.AnnualleaveandlongserviceleaveexpensesarechargedasstatedinNote3(h).
f) Receivables
Tradereceivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredatcostusingtheeffectiveinterestmethod,lessprovisionforimpairment.
Collectabilityoftradereceivablesisreviewedonanongoingbasis.Debts,whichareknowntobeuncollectible,arewrittenoffbyreducingthecarryingamountdirectly.Anallowanceforimpairmentaccountisusedwhenthereisobjectiveevidencethatthecorporationwillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsofthereceivables.Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcyorfinancialreorganisationanddefaultordelinquencyinpaymentsareconsideredindicatorsthatthetradereceivableisimpaired.
g) Payables
Payablesincludeaccruedwages,salaries,andrelatedoncosts(suchaspayrolltax,fringebenefitstaxandworker’scompensationinsurance)wherethereiscertaintyastotheamountandtimingofsettlement.
Apayableisrecognisedwhenapresentobligationarisesunderacontractorotherwise.Itisderecognisedwhentheobligationexpiresorisdischarged,cancelledorsubstituted.
Ashort-termpayablewithnostatedinterestrateismeasuredathistoricalcostiftheeffectofdiscontinuingisimmaterial.
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h) Employee benefits
(i) Wages and salaries, annual leave and sick leave
Liabilitiesforwagesandsalaries,includingnon-monetarybenefitsandannualleavesickleaveexpectedtobesettledwithintwelvemonthsofthereportingdatearerecognisedinrespectofemployees’serviceuptothereportingdateatundiscountedamountsandaremeasuredattheamountsexpectedtobepaidwhentheliabilitiesaresettled.
Long-termannualleavethatisnotexpectedtobetakenwithintwelvemonthsismeasuredatpresentvalueinaccordancewithAASB119EmployeeBenefits.Marketyieldsongovernmentbondsof5.21%(20105.50%%)wereappliedtodiscountlong-termannualleave.
(ii) Long service leave
Theliabilityforlongserviceleaveisrecognisedintheprovisionforemployeebenefitsandmeasuredasthepresentvalueofexpectedfuturepaymentstobemadeinrespectofservicesprovidedbyemployeesuptothereportingdateusingthediscountmethod.Considerationisgiventoexpectedfuturewageandsalarylevels,experienceofemployeedeparturesandperiodsofservice.Expectedfuturepaymentsarediscountedusingmarketyieldsatthereportingdateonnationalgovernmentbondswithtermstomaturityandcurrencythatmatch,ascloselyaspossible,theestimatedfuturecashoutflows.
Provisionsmadeinrespectofemployeebenefitswhicharenotexpectedtobesettledwithin12monthsaremeasuredatthepresentvalueoftheestimatedfuturecashoutflowstobemadebytheconsolidatedentityinrespectofservicesprovidedbyemployeesuptoreportingdate.Thegovernmentbondrateof5.21%(20105.50%)wasappliedfordiscountingpurposes.
Theoutstandingamountsofpayrolltax,workers’compensation,insurancepremiumsandfringebenefitstax,whichareconsequentialtoemployment,arerecognisedasliabilitiesandexpenseswhentheemployeebenefitstowhichtheyrelatehavebeenrecognised.
(iii) Retirement benefit obligations
AllemployeesoftheOfficeareentitledtobenefitsfromtheOffice’ssuperannuationplanonretirement,disabilityordeath.TheOfficehasadefinedbenefitplanandadefinedcontributionplan.ThedefinedcontributionplanreceivesfixedcontributionsfromtheOfficeandtheOffice’slegalorconstructiveobligationislimitedtothesecontributions.Contributionstothedefinedcontributionfundarerecognisedasanexpenseastheybecomepayable.Prepaidcontributionsarerecognisedasanassettotheextentthatacashrefundorareductioninthefuturepaymentsisavailable.
Aliabilityorassetofdefinedbenefitssuperannuationplansisrecognisedinthebalancesheetandismeasuredasthepresentvalueofthedefinedbenefitobligationatthereportingdatelessthefairvalueofthesuperannuationfund’sassetsatthatdateandanyunrecognisedpastservicecost.Thepresentvalueofthedefinedbenefitobligationsisbasedonexpectedfuturepaymentswhicharisefrommembershipofthefundtothereportingdate,calculatedannuallybyindependentactuariesusingtheprojectedunitcreditmethod.Considerationisgiventoexpectedfuturewageandsalarylevels,experienceofemployeedeparturesandperiodsofservice.
Expectedfuturepaymentsarediscountedusingmarketyieldsatthereportingdateonnationalgovernmentbondswithtermstomaturityandcurrencythatmatch,ascloselyaspossible,theestimatedfuturecashoutflows.
Pastservicecostsarerecognisedimmediatelyinincome,unlessthechangestothesuperannuationfundareconditionalontheemployeesremaininginserviceforaspecifiedperiodoftime(thevestingperiod).Inthiscase,thepastservicecostsareamortisedonastraight-linebasisoverthevestingperiod.
Contributionstothedefinedcontributionfundarerecognisedasanexpenseastheybecomepayable.Prepaidcontributionsarerecognisedasanassettotheextentthatacashrefundorareductioninthefuturepaymentsisavailable.
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For the period 17 December 2010 to 30 June 2011
OSMDA Accounts
NOTES TO THE fINANcIAl STATEMENTS
j) Application of new and revised Accounting Standards
(i) Standards and Interpretations affecting amounts reported in the current period (and/or prior periods)
ThefollowingnewandrevisedStandardsandInterpretationshavebeenadoptedinthecurrentperiodandhaveaffectedtheamountsreportedinthesefinancialstatements.DetailsofotherStandardsandInterpretationsadoptedinthesefinancialstatementsbutthathavehadnoeffectontheamountsreportedaresetoutinsection(iv).
(ii) Standards affecting presentation and disclosure
• AmendmentstoAASB101‘PresentationofFinancialStatements’(adoptedinadvanceofeffectivedateof1January2011).Theamendments(partofAASB2010-4‘FurtherAmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProject’)clarifythatanentitymaychoosetopresenttherequiredanalysisofitemsofothercomprehensiveincomeeitherinthestatementofchangesinequityorinthenotestothefinancialstatements.Allmaterialitemsareadequatelydisclosedbywayofnotestothefinancialstatements.
(iii) Standards and Interpretations adopted with no effect on financial statements
ThefollowingnewandrevisedStandardsandInterpretationshavealsobeenadoptedinthesefinancialstatements.Theiradoptionhasnothadanysignificantimpactontheamountsreportedinthesefinancialstatementsbutmayaffecttheaccountingforfuturetransactionsorarrangements.
AmendmentstoAASB7‘FinancialInstruments:Disclosure’(adoptedinadvanceofeffectivedateof1January2011)
Theamendments(partofAASB2010-4‘FurtherAmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProject’).ThisamendmentisnotapplicabletotheOffice.
AmendmentstoAASB5‘Non-currentAssetsHeldforSaleandDiscontinuedOperations’
DisclosuresinthesefinancialstatementshavebeenmodifiedtoreflecttheclarificationinAASB2009-5‘FurtherAmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProject’.
ThedisclosurerequirementsinStandardsotherthanAASB5donotgenerallyapplytononcurrentassetsclassifiedasheldforsaleanddiscontinuedoperationsThisamendmentisnotapplicabletotheOffice.
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AmendmentstoAASB107‘StatementofCashFlows’ Theamendments(partofAASB2009-5‘FurtherAmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProject’)specifythatonlyexpendituresthatresultinarecognisedassetinthestatementoffinancialpositioncanbeclassifiedasinvestingactivitiesinthestatementofcashflows.Consequently,cashflowsinrespectofdevelopmentcoststhatdonotmeetthecriteriainAASB138‘IntangibleAssets’forcapitalisationaspartofaninternallygeneratedintangibleasset(and,therefore,arerecognisedinprofitorlossasincurred)havebeenreclassifiedfrominvestingtooperatingactivitiesinthestatementofcashflows.ThisamendmentisnotapplicabletotheOffice.
AASB2009-5‘FurtherAmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProject’
ExceptfortheamendmentstoAASB5andAASB107describedearlierthissection,theapplicationofAASB2009-5hasnothadanymaterialeffectonamountsreportedinthefinancialstatements.
AASB2009-8‘AmendmentstoAustralianAccountingStandards–GroupCash-SettledSharebasedPaymentTransactions’
TheapplicationofAASB2009-8makesamendmentstoAASB2‘Share-basedPayment’toclarifythescopeofAASB2,aswellastheaccountingforgroupcash-settledshare-basedpaymenttransactionsintheseparate(orindividual)financialstatementsofanentityreceivingthegoodsorserviceswhenanothergroupentityorshareholderhastheobligationtosettletheaward.TheCouncil’sfinancialstatementsarenotimpactedbythisamendments.
AASB2009-10‘AmendmentstoAustralianAccountingStandards–ClassificationofRightsIssues’
TheapplicationofAASB2009-10makesamendmentstoAASB132‘FinancialInstruments:Presentation’toaddresstheclassificationofcertainrightsissuesdenominatedinaforeigncurrencyaseitheranequityinstrumentorasafinancialliability.ThisamendmentisnotapplicabletotheOffice.
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For the period 17 December 2010 to 30 June 2011
OSMDA Accounts
NOTES TO THE fINANcIAl STATEMENTS
AASB2010-3‘AmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProject’
TheapplicationofAASB2010-3makesamendmentstoAASB3(2008)‘BusinessCombinations’toclarifythatthemeasurementchoiceregardingnon-controllinginterestsatthedateofacquisitionisonlyavailableinrespectofnoncontrollingintereststhatarepresentownershipinterestsandthatentitletheirholderstoaproportionateshareoftheentity’snetassetsintheeventofliquidation.Allothertypesofnoncontrollinginterestsaremeasuredattheiracquisition-datefairvalue,unlessanothermeasurementbasisisrequiredbyotherStandards.
Inaddition,theapplicationofAASB2010-3makesamendmentstoAASB3(2008)togivemoreguidanceregardingtheaccountingforshare-basedpaymentawardsheldbytheacquiree’semployees.Specifically,theamendmentsspecifythatshare-basedpaymenttransactionsoftheacquireethatarenotreplacedshouldbemeasuredinaccordancewithAASB2‘Share-basedPayment’attheacquisitiondate(‘market-basedmeasure’).ThisamendmentisnotapplicabletotheOffice.
AASB2010-4‘FurtherAmendmentstoAustralianAccountingStandardsarisingfromtheAnnualImprovementsProject’
ExceptfortheamendmentstoAASB7andAASB101describedearlierthissection,theapplicationofAASB2010-4hasnothadanymaterialeffectonamountsreportedinthefinancialstatements.
Interpretation19‘ExtinguishingFinancialLiabilitieswithEquityInstruments’
ThisInterpretationprovidesguidanceregardingtheaccountingfortheextinguishmentofafinancialliabilitybytheissueofequityinstruments.Inparticular,theequityinstrumentsissuedundersucharrangementswillbemeasuredattheirfairvalue,andanydifferencebetweenthecarryingamountofthefinancialliabilityextinguishedandthefairvalueofequityinstrumentsissuedwillberecognisedinprofitorloss.ThisamendmentisnotapplicabletotheOffice.
(iv) Standards and Interpretations in issue not yet adopted
Atthedateofauthorisationofthefinancialstatements,theStandardsandInterpretationslistedbelowwereinissuebutnotyeteffective.
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Standard/Interpretation Effective for annual reporting periods beginning on or after
Expected to be initially applied in the financial year ending
AASB124‘RelatedPartyDisclosures’(revisedDecember2009),AASB2009-12‘AmendmentstoAustralianAccountingStandards’
1January2011 30June2012
AASB9‘FinancialInstruments’,AASB2009-11‘AmendmentstoAustralianAccountingStandardsarisingfromAASB9’and
AASB2010-7‘AmendmentstoAustralianAccountingStandardsarisingfromAASB9(December2010)’
1January2013 30June2014
AASB2009-14‘AmendmentstoAustralianInterpretation–PrepaymentsofaMinimumFundingRequirement’
1January2011 30June2012
AASB2010-5‘AmendmentstoAustralianAccountingStandards’
1January2011 30June2012
AASB2010-6‘AmendmentstoAustralianAccountingStandards–DisclosuresonTransfersofFinancialAssets’
1July2011 30June2012
AASB2010-8‘AmendmentstoAustralianAccountingStandards–DeferredTax:RecoveryofUnderlyingAssets
1January2012 30June2013
4. DETERMINATION OF FAIR VALUES
Anumberofaccountingpoliciesanddisclosuresrequirethedeterminationoffairvalue,forbothfinancialandnon-financialassetsandliabilities.Fairvalueshavebeendeterminedformeasurementand/ordisclosurepurposesbasedonthefollowingmethods:
(i) Trade and other receivables
Thefairvalueoftradeandotherreceivablesisbasedonthenetrealisablevalueafterconsideringanypossiblerisksofimpairment.Alltradeandotherreceivables,afterimpairment,areexpectedtobereceivedwithinashortperiodoftimeandconsideredasfairvaluesatthedatewhengoodsandserviceswereprovided.
Whenapplicable,furtherinformationabouttheassumptionsmadeindeterminingfairvaluesaredisclosedinthenotesspecifictotheassetsortheliability.
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For the period 17 December 2010 to 30 June 2011
OSMDA Accounts
NOTES TO THE fINANcIAl STATEMENTS
Period ended
30-June-2011
$’000
5 Revenue from continuing operations:
Income from Personnel Service 713
713
6 Employee benefit expenses
Salaries and wages 558
Superannuation 64
Leave benefits 58
Payroll Tax 33
713
7 Surplus for the period
Surplus has been arrived at after charging/(crediting) the following
losses/(gains):
Auditor’s remuneration --
No fee charged by the Auditors
8 Receivables
Current
Trade receivables 713
Total trade & other receivables 713
9 Ageing of past due but not impaired receivables
Less than 3 months overdue 713
3 to 6 months overdue --
later than 6 months overdue --
713
10 Trade and other payables
Current trade & other payables
Trade payables 329
329
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Period ended
30-June-2011
$’000
11 Provisions
Employee benefits and related on-costs
Current
Recreation leave
Short term 76
Long term 92
Long Service leave 14
182
Non-Current
Long Service leave 202
202
Total employee benefits 384
Total provisions 384
12 Accumulated funds
Balance at the beginning of the period --
Surplus for the period --
Balance at end of the period
13 (a) Cash and cash equivalents (Note 10) --
(b) Reconciliation of surplus for the period to net cash from operating activities
Surplus for the period from continuing operations --
decrease/(Increase) in trade and other receivables (713)
(decrease)/Increase in trade and other payables and provisions 713
Net cash flows from operating activities
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For the period 17 December 2010 to 30 June 2011
OSMDA Accounts
NOTES TO THE fINANcIAl STATEMENTS
14 Commitments for Expenditure
There were no outstanding commitment for expenditure
15 Contingent Liabilities
There are no known contingent liabilities for the Office as at the balance date.
16 Financial instruments The Office’s principal financial instruments, and the main risks associated with them, are outlined below. The financial instruments arise directly from the Office’s trading activities and operations. The Office does not enter into or trade in financial instruments for speculative purposes.
30-June2011
$’000
Financial instrument categories
Financial assets
Cash & deposits
Trade & other receivables 713
713
Financial liabilities
Trade & other payables 329
329
Non interst bearing trade payables 329
329
The above trade receivables and payable balances are due from/ due to General Government entities and recovered/paid at the end of each month. No interest is charged on this balance and the debt is not impaired.
Net fair values of financial assets and liabilities: The carrying amount of financial assets and financial liabilities recorded in the financial statements approximate their net fair values.
17 Events after the balance date
On5September2011theNewSouthWalesGovernmenthasapprovedthewindingupoftheRedfern-WaterlooAuthority.Whenwoundup,allassetsandliabilities,rightsandobligationswillbetransferredtotheSydneyMetropolitanDevelopmentAuthority.ThiswillalsoleadtothewindingupofOfficeoftheRedfern-WaterlooAuthorityandtransferallemployeestotheOfficeoftheSydneyMetropolitanDevelopmentAuthority.
END OF AUDITED FINANCIAL STATEMENTS
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AppENdIcES
Charter
TheSMDAisconstitutedundertheGrowth Centres (Development Corporations) Act 1974andreportstotheMinisterforPlanningandInfrastructure,MinisterassistingthePremierforInfrastructureNSWthroughtheSMDABoard.
Permanent Temporary Full-Time Part-Time Casual
Staff 4 3 6 1 -
% 57% 43% 86% 14% -
Men 1 1 2 - -
Women 3 2 4 1 -
AboriginalPerson
orTorresStraitIslander- - - - -
PersonwithaDisability - - - - -
PersonfromaRacial,EthnicorEthno-Religious
- - - - -
MinorityGroup - - - - -
PeoplewhosefirstlanguageisnotEnglish
1 - - - -
Staff Numbers by Level
Men Women Total
$39,670-$63,781 - 1 1
$63,782-$86,498 - 1 1
$86,499-$98,159 - - -
$98,160-$119,149 - 3 3
>$119,120(nonSES) 1 - 1
>$119,120(SES) 1 - 1
Chief and Senior Executive Officer
MrRoyWakelinKingwasChiefandSeniorExecutiveOfficerwiththeSMDA
ChiefExecutiveOfficer- SESLevel7RoyWakelin-King $342,317
Staff Numbers by Employment Basis as at 30 June 2011
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Legislative Changes
Niltoreport.
Overseas Travel & Corporate Credit Cards Niltoreport.
Research and DevelopmentNiltoreport.
ConsultantsTwoconsultantswereengagedforthepurposeofManagementServicescostingatotalof$45,506.
Payment of AccountsAllagreedaccountsweresettledinatimelymanner.
Risk Management
TheSMDAhasaBusinessRiskMapofitsoperations.TheprimaryobjectiveoftheBusinessRiskMapistocoordinateriskmanagementactivitieswithintheSMDAtoensuretheactivityisfocusedonareasofgreatestriskandisalsousedbyBusinessAudittoderiveitsstrategicauditplan.
TheSMDAisamemberoftheNSWTreasuryManagedFund(TMF)whichprovidesinsurableriskprotection.
TheSMDA,itsemployeesandvolunteersarefullycoveredfortheirlegalliability,forworkerscompensation,motorvehicles,publicliability,propertyloss/damageandotherinsurancesinaccordancewiththeTMFContractofCoverage.
SMDAhasassignedfirewardenswhoattendedtrainingthroughouttheyearandallstaffparticipatedinemergencyevacuationdrills.NoOH&Sincidentshavearisen.
Fraud and Corruption Prevention Strategy
TheSMDAhasanobligationtothecommunitytoensurethatitsoperationsareefficient,effectiveandfreefromcorruption.TheresponsibilityforcorruptionpreventionrestswithallSMDAstaffandtheFraudandCorruptionPreventionStrategyprovidesaguideforstafftoidentifyreport,assessanddealwithconductthatcouldconstitutecorruption.
AppENdIcES
Funds granted to non-government community organisationsNiltoreport.
Government Information Public Access (GIPA) Act 2009
On1July2010theGovernmentInformationPublic Access (GIPA) Act 2009,anewrighttoinformationlegislation,cameintoeffect.ThisreplacestheformerFreedom of Information Act 1989.
Thenewlaw:
• Createsnewrightstoinformationthataredesignedtomeetcommunityexpectationsofmoreopenandtransparentgovernment.
• Encouragesgovernmentagenciestoproactivelyreleasegovernmentinformation.
Duringthereportingperiod,norequestsweremadetotheSMDAundertheGIPAAct.Inthesameperiod,nomajorissuesarose,andtherewerenoinvestigationsorapplicationsforreviewsubmitted.
MembersofthepublicmaycontacttheSMDAandaskforinformation.Thisisknownasaninformalrequest.SMDAmayreleaseinformationinformally,subjecttoanyreasonableconditions.Pleasenotethatcopychargesapply($1.10perA4sheet).
ApplicationforformalaccesstoSMDAinformationundertheGIPAActcanbemadebylodgingaformalAccessApplicationForm,alongwitha$30applicationfee.Processingchargescost$30perhourafterthefirsthour.Aninternalreviewofareviewabledecisioncosts$40.
Applicantsshouldbepreciseabouttheinformationtheywanttoaccesssoastoenablethecorrectinformationtobeidentified.
Applicationsshouldbedirectedto:
Right for Information OfficerSydney Metropolitan Development AuthorityPO Box 3332Redfern NSW 2016
Land Disposal
Therewerenolanddisposalsfortheyearended30June2011.
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Plans, Policies and Procedures
Code of Conduct
TheSMDAhasitsownCodeofConductwhichwasdevelopedinaccordancewiththeprinciplesofethicalandresponsibledecision-makingandembodiesthepublicsectorvaluesofrespectforthelaw,thesystemofGovernment,thecommunityanditspersons,integrity,diligence,economyandefficiency,andaccountability.
TheAuthority’sCodeofConductappliestoallemployeesofSMDAandotherpersonsengagedtodoworkoftheAuthority.TheCodeofConductconveysthestandardsofbehaviourexpectedfromstaffwhicharebasedaroundthefourprinciplesof:
• Respectforthelawandsystemofgovernment;
• Respectforpeople;
• Actwithhonestyandintegrity;and
• EfficientandeconomicuseofAuthorityresources.
Equal Employment Opportunity Policy (EEO)
TheAuthoritysupportsandisdedicatedtotheprinciplesoftheEEOincluding:
• Fairpracticesintheworkplace;
• Managementdecisionsmadewithoutbias;
• Recognitionofandrespectforthesocialandculturalbackgroundsofallstaffandclients;
• Employmentpracticeswhichproducestaffsatisfaction,jobcommitmentandqualityclientservice;and
• Improvedproductivity.
TheSMDAalsohasapolicyfortheActionPlanforWomenalongwithanAboriginalandTorresStraitIslanderEmploymentStrategy.
Disability Access Policy
TheSMDAcomplieswiththeNSWGovernmentDisabilityframeworkthroughitsDisabilityAccessPolicy.ThisprovidesaprocessfortheSMDAtobettermeettheneedsofstaffandthecommunityinrelationtopersonswithadisability.TheSMDAiscommittedtoensuringallpeoplehavereasonableaccesstotheresourcesandspacesgovernedbytheAuthority.
Ethnic Affairs Priority Statement
TheSMDArecognisesandvaluesthedifferentlinguistic,religious,racialandethnicbackgroundsofallthepeopleofNSWandendorsesthefourprinciplesofmulticulturalismassetoutintheCommunityRelationsCommissionandprinciplesoftheMulticultural Act 2000.
Towardsthisobjective,theSMDAwilldevelopandimplementpoliciessensitivetotheneedsofallstaffandclientsandensurethatitsBoardsandCommitteesreflectthemulticulturalismofthecommunity.
NSW Government Action Plan for Women
TheSMDAsupportstheNSWGovernmentActionPlanforWomenandpromotesworkplacesthatareequitable,safeandresponsivetoallaspectsofwomen’slives.Itwillalsopromotethepositionofwomeninallareasofsocietyaswellasaccesstoandsuccessfuloutcomesforwomeninallpartsoftheeducationandtrainingsystem.
Occupational Health & Safety Management Plan
TheSMDAiscommittedtotheoccupationalhealth,safetyandwelfareofitsemployees,thosecontractedtoperformworkonitsbehalfandvisitorstothepremises.Itiscommittedtoregularconsultationwithstaffandtheirrepresentatives,andwherenecessary,withcontractorsandsuppliersofequipmentandservicestoensureOH&Smanagementisofthehigheststandard.
SMDAhad0(zero)injuriesorclaimsunderthe
OH&S Act 2000.
Waste Reduction and Purchasing Policy
TheSMDAiscommittedtotheimplementationoftheGovernment’sWasteReductionandPurchasingPolicy(WRAPP).
SMDAengagestheservicesofanenvironmentalmanagementcompanythroughtheNSWGovernmentContracttomanagetherecyclingofpaperandcardboard.SMDAalsorecyclestonerandinkcartridges.SMDApurchasesrecycledpaperforprintingpurposes.
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INdEx
Aims&Objectives 05
Appendices 59
BoardMembers 06
Charter 02
ContactDetails BackCover
CorporateGovernance 05
Development 10
Director’sStatement 16
FinancialStatements 20
GranvillePrecinct 14
IndependentAuditReport 18,42
TotheMinister 03
Redfern-WaterlooPrecinct 12
StatementfromtheChairperson
andChiefExecutiveOfficer 04
This report is printed on Mega Recycled Silk A2+, an environmentally considered sheet consisting of 50% post consumer recycled waste and 50% FSC certified fibre. Mega Recycled is manufactured at the Gohrsmuhle Mill, who have their own waste water treatment plant and are ISO 14001 EMS approved. Mega Recycled is made elemental chlorine free.
Tonic Connectivewww.tonicconnective.com
Contact SMDA
Phone: 0292029100between9amto5pm, MondaytoFriday(excludingpublicholidays)Email: [email protected]: POBox3332,RedfernNSW2016Address: Level11,Tower2,
1LawsonSquare,RedfernNSW2016Website: www.smda.nsw.gov.au