Albury-Wodonga Development Corporation

FINAL ANNUAL REPORT
1 JULY 2014 – 31 DECEMBER 2014
Albury-Wodonga
Development
Corporation
FINAL ANNUAL REPORT
1 JULY 2014 – 31 DECEMBER 2014
Albury-Wodonga
Development
Corporation
AWDC FINAL ANNUAL REPORT 2014-15
About the 2014-15
Final Annual Report
© Commonwealth of Australia 2015
ISSN: 0728 8743
With the exception of the Commonwealth Coat of Arms, all material presented in this
document is provided under a Creative Commons Attribution 3.0 Australia
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in a third party, permission will be required from the third party to reuse the material.
The document must be attributed as the
Albury-Wodonga Development Corporation Final Annual Report 2014-15
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Provided you have not modified or transformed the material in any way (including, for
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Source: The Australian Government Department of Finance
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Other uses
If you have any questions about this licence or any other use of this document, please contact
the Assistant Secretary, Communications and Coordination Branch, in the Department of
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AWDC prepared the bulk of this report in December 2014, just before its abolition on
31 December 2014. The Department of Finance finalised the report in 2015.
References to AWDC and its activities are in the past tense. The Chair’s and the CEO’s
letters were signed on 17 December 2014 and therefore some references within them
are in future tense.
ii
AWDC FINAL ANNUAL REPORT 2014-15
iii
AWDC FINAL ANNUAL REPORT 2014-15
Responsible Minister
as at 31 December 2014
Senator the Hon. Mathias Cormann
Minister for Finance
Members of the
Corporation
as at 31 December 2014
Appointed Members
Dr Andrew Watson
Interim Chairperson
Mrs Carol Judd
Appointed Member
Ex-officio Member
Mr Peter Veneris
Chief Executive Officer
iv
AWDC FINAL ANNUAL REPORT 2014-15
Contents
Responsible Minister ...........................................................................................iv
Members of the Corporation...............................................................................iv
The year in review�� 2
Performance and trends�� 4
Overview of the Corporation �� 6
Establishment�� 6
Responsible Minister�� 6
Organisation �� 6
Role�� 6
Functions�� 7
Powers�� 9
Duties�� 10
Arrangements for outside participation �� 10
Judicial decisions and reviews by outside bodies�� 10
Performance for the year ��11
Receipts, expenditure��11
Returns to government��11
Land and asset management��11
Sales�� 13
Environmental performance�� 14
Cultural heritage investigations�� 15
Management and accountability �� 16
Corporate governance�� 16
Corporation members�� 16
Code of ethics�� 17
Corporate and operational planning�� 17
Risk management�� 18
Audit services�� 18
Indemnities and insurance premiums for officers�� 18
Information services�� 19
Land information�� 19
Records management�� 20
Customer service charter�� 20
Human resources�� 20
Staff development, training and performance appraisal�� 22
Work health and safety�� 22
Equal employment opportunity�� 23
Freedom of information�� 23
Glossary�� 70
Index�� 72
Index of Annual Report requirements�� 75
v
AWDC FINAL ANNUAL REPORT 2014-15
The year in review
This report is presented by Corporation
members for the period 1 July 2014 to
31 December 2014. The final Corporation
meeting was held on 17 December 2014
prior to the Corporation’s abolition on
1 January 2015.
The Corporation has been working
closely with the Department of Finance
towards its orderly wind-up and transfer of
responsibilities to the department.
The Albury-Wodonga Development
Corporation (Abolition) Bill 2014 passed
both Houses of Parliament in October 2014
and received Royal Assent on 11 November
2014. The Corporation will be abolished
upon commencement of Schedule 1 Parts
1 and 2 of the Act on a date to be fixed
by Proclamation. A Proclamation signed
by the Governor-General on the advice
of the Executive Council has fixed the
commencement date as 1 January 2015.
2
The Corporation paid a Special Dividend of
$3.2 million to the Australian Government
in December 2014 based on its operating
results for the period July to December
2014. The Corporation’s Annual Operational
Plan for 2014-15 forecast dividend
payments totalling $7 million for the 2014-15
financial year.
A Final Dividend of $12.5 million was also
paid in December 2014 which represented
the balance of the Corporation’s cash
reserves after making allowance for
employee termination payments and other
winding-up costs. A total of $336.9 million
has been paid to the Commonwealth
in dividends or financial returns since
payments commenced in 1988-89.
The Corporation undertook a due diligence
process which was informed by business
and legal advisers. The process involved
identifying the necessary steps that need
to be taken prior to and in preparation for
wind-up and the disclosure of all relevant
information to the Department of Finance
particularly in respect of the Corporation’s
remaining land bank.
The Albury-Wodonga National Growth
Centre Project has been a bold and
visionary experiment. Over the past
40 years, the Corporation as part of
its activities has developed over 6,000
residential lots in over 30 different estates,
developed seven industrial estates,
planted three million trees, conserved
4,000 hectares of hilltops and other
environmentally sensitive land, provided a
range of physical and social infrastructure
and contributed financially to numerous
community based organisations.
The land bank and all of the Corporation’s
assets and liabilities will become assets and
liabilities of the Commonwealth on
1 January 2015.
In presenting this final report on the
Corporation’s activities I would like to pay
tribute to those with the original vision, as
well as the many chairpersons, board
AWDC FINAL ANNUAL REPORT 2014-15
members and employees who have
worked very hard over the last 40 years to
implement that vision. I also wish to express
my appreciation to the Members of the
Albury-Wodonga Land Disposal Advisory
Committee, local councils, government
agencies and the many other stakeholders
with whom the Corporation has worked
over the years. The support of current and
former Commonwealth and State Ministers
who had portfolio responsibility for the
Corporation and officers of their respective
Departments is also appreciated.
I also wish to record my appreciation for
the support provided by my fellow board
member, Mrs Carol Judd, and thank the
Corporation staff for their efforts particularly
in the lead up to, and in preparation for, the
Corporation’s eventual wind-up.
Dr Andrew Watson
Interim Chairperson
17 December 2014
3
AWDC FINAL ANNUAL REPORT 2014-15
Performance and trends
The Corporation commenced the 2014-15
financial year by continuing to focus on the
disposal of its land assets whilst working
closely with the Department of Finance
towards its orderly wind-up and transfer of
responsibilities to the department.
However, once the Albury-Wodonga
Development Corporation (Abolition) Bill
2014 passed both Houses of Parliament
and it became clear that the Government
was working towards a 31 December
2014 wind-up the Corporation transitioned
its focus from land disposal to wind-up
activities.
The Corporation ceased advertising land
for sale in early November 2014 and
entering into new arrangements for the sale
of land. However, in the case of existing
arrangements such as where agreement
had been reached with purchasers for the
sale of specific properties, deposits taken or
contracts issued, the Corporation continued
to work with those parties to finalise
dealings.
The Corporation’s undeveloped land bank
was reduced by 108 hectares in the first six
months of the 2014-15 financial year and
will comprise 978 hectares at wind-up. The
reduction in the land bank included sales to
the private sector totalling 89 hectares and
the sale of two parcels comprising
19 hectares to an educational institution for
educational purposes.
4
A total of 17 developed residential lots were
sold in the same period (10 in New South
Wales and seven in Victoria). The
10 sales in New South Wales related to lots
in the Hume Gardens Estate joint venture
development with Albury City Council
whereas the sales in Victoria involved lots
in the Corporation’s own residential estates
namely Wattle Glen and Yarralumla Rise.
In preparing for the Corporation’s
wind-up and transfer of responsibilities to
the Department of Finance, it was agreed
that the Hume Gardens Joint Venture
Agreement would be terminated. This took
effect on 30 November 2014. The six lots
remaining in the Hume Gardens Estate
are now owned outright by the Corporation
and ownership will transfer to the
Commonwealth on 1 January 2015 along
with all of the Corporation’s other assets
in accordance with the Albury-Wodonga
Development Corporation (Abolition) Act
2014.
At wind-up the Corporation retains 39
developed residential lots and three
developed industrial lots in its own right and
has another 30 developed industrial lots in
joint venture agreements with the Albury
and Wodonga Councils.
I wish to express my appreciation to current
Corporation members Andrew Watson and
Carol Judd as well as former members who
have provided support and guidance in my
role as Chief Executive Officer.
AWDC FINAL ANNUAL REPORT 2014-15
I also wish to thank all the Corporation staff
for their assistance and in particular for
their professionalism during the wind-up
phase and transition of responsibilities to
the Department of Finance. The support
provided by officers of the Department of
Finance is also appreciated.
Peter Veneris
Chief Executive Officer
17 December 2014
5
AWDC FINAL ANNUAL REPORT 2014-15
Overview of the Corporation
Establishment
The Albury-Wodonga Development
Corporation (the Corporation), a
Commonwealth statutory authority, was
established by the Albury-Wodonga
Development Act 1973 (“the Act”).
Responsible Minister
Senator the Hon. Mathias Cormann,
Minister for Finance, held ministerial
responsibility for administration of the
Act and for overseeing activities of the
Corporation as at 31 December 2014.
Organisation
Membership
Section 10 of the Act prescribed
membership arrangements for the
Corporation. The Corporation consisted of
up to four members as follows:
.
.
6
three appointed part-time members. The
Act provided for the Governor-General
to appoint a Chairperson and two other
members to the Corporation for periods
of up to three years. Appointment was
subject to the Minister for Finance being
satisfied that proposed members met
the qualification requirement: appointed
members were required to have
knowledge and understanding of issues
relating to the development of the
Albury-Wodonga region
an ex-officio member. The Chief
Executive Officer of the Corporation was
an ex-officio, non-voting member.
Membership of the Corporation at
31 December 2014 is shown on page iv.
Staff
Staff of the Corporation were employed
under section 21(1) of the Act.
The organisation chart on page 21 shows
the structure of the Corporation.
Role
The Corporation was a major
property-owner in the Albury-Wodonga
region and continued to dispose of its
property assets in an orderly manner to
provide a financial return to government in
preparation for its abolition.
The Corporation ceased its previous role
as a land developer and operated with the
trading name Albury-Wodonga Corporation
in recognition of the fact that it had
withdrawn from development activities.
The Government announced in the 2014
Federal Budget that it would implement
a policy by 1 July 2015 of “ceasing the
Albury-Wodonga Development Corporation,
with remaining property management
functions consolidated into the Department
of Finance”.
The Albury-Wodonga Development
Corporation (Abolition) Bill 2014 passed
both Houses of Parliament in October 2014
and received Royal Assent on 11 November
2014. The Corporation was abolished upon
commencement of Schedule 1 Parts 1 and
2 of the Albury-Wodonga Development
AWDC FINAL ANNUAL REPORT 2014-15
Corporation (Abolition) Bill 2014 on a date
fixed by Proclamation. A Proclamation
signed by the Governor-General on the
advice of the Executive Council fixed the
commencement date as 1 January 2015.
Functions
The Corporation’s functions, set out in
section 8(1) of the Act, were:
.
.
.
.
to prepare the Corporation, over a period
ascertained in accordance with the
Winding-up Agreement, for abolition by a
future Act
for the purposes of preparing the
Corporation for abolition, as mentioned
above, to dispose of the assets of the
Corporation
to assist the Commonwealth and other
persons in connection with the
winding-up of the Corporation and the
joint Commonwealth/ State scheme
for the purposes of facilitating the
winding-up of the Corporation and the
joint Commonwealth/State scheme:
.
.
.
.
.
to acquire assets previously held by
the Albury-Wodonga (New South
Wales) Corporation or the
Albury-Wodonga (Victoria)
Corporation
to hold such assets
to prepare such assets for disposal
(including by way of developing or
improving such assets)
to dispose of such assets
if requested by or on behalf of the
Commonwealth, or by or on behalf of
an authority of the Commonwealth,
to do so — to act as the agent of the
Commonwealth, or the authority of
the Commonwealth, in relation to the
disposal of land in the Albury-Wodonga
region.
Statement of Expectation
A Statement of Expectation issued by the
responsible Minister from time to time
outlined the Government’s expectations
for the Corporation in a public and formal
manner. The Government announced on
27 June 2005 that the Corporation would
exit its land development activities by
July 2007 and sell its remaining property
assets over an approximate 10 year period.
A Statement of Expectation issued on
8 February 2013 extended this period to
June 2021.
A revised Statement of Expectation was
issued on 3 September 2014 subsequent
to the Government’s announcement that it
would be implementing a policy by
1 July 2015 of “ceasing the
Albury-Wodonga Development Corporation,
with remaining property management
functions consolidated into the Department
of Finance”.
According to the 2014 Statement of
Expectation, “it is expected that the
Corporation Board will:
a. Manage the remaining operations
of the Corporation, including the
pursuit of any sale opportunities on
a commercially supportable basis
until the transfer is completed;
b. Ensure the land held by the
Corporation is to be sold through
an open market process except for
lands:
7
AWDC FINAL ANNUAL REPORT 2014-15
i.
iii. sale price is not more than
held for community purposes,
which are to be bound by
Security of Purpose Conditions
as a condition of transferring
the title to these lands;
10% below the current market
valuation as determined by
a Commonwealth or state
valuation authority; and
ii. where it is considered
d. Continue to consult with the
appropriate to negotiate a
boundary adjustment or sale of
land directly with an adjoining
owner for betterment purposes;
Department of Finance in
developing key performance
indicators in producing the
Winding-Up and Annual
Operational Plans, and Annual
Reports.”
iii. held for environmental
purposes which are to be
transferred to State and/or local
governments with funding from
the AWC at a level agreed by
the Minister; and
iv. bound by specific agreements,
endorsed by the responsible
Minister, pre-dating the
Statement of Expectation;
c. Not sell land assets at less than
the current market valuation as
determined by a Commonwealth or
state valuation authority without the
consent of the Minister unless:
i.
The land has first been
advertised at the current
market valuation as determined
by a Commonwealth or
state valuation authority and
remained unsold for a period of
at least 12 months;
ii. The land is sold through an
open and competitive process
i.e. public auction, tender or
expression of interest process;
and
8
Winding-up of the Corporation
In accordance with the requirements of the
Act, the Corporation prepared a Winding-up
Plan which outlined the manner in which
the Corporation proposed to perform its
functions in the lead up to its ultimate
wind-up.
Subsequent to the passing of the
Albury-Wodonga Development Corporation
(Abolition) Act 2014 the Corporation
commenced a Due Diligence process to,
among other things:
.
.
.
identify the necessary steps required to
be taken by the Corporation prior to and
in preparation for its wind-up
establish the status of its assets and
liabilities, ensure relevant documentation
relating to its assets and liabilities was
provided to the Department of Finance
and all material risks are disclosed
provide a written assurance to the
Commonwealth at the completion of the
due diligence process that, to the best of
their knowledge and belief, all relevant
information was provided regarding
AWDC FINAL ANNUAL REPORT 2014-15
.
.
the Corporation’s assets and liabilities
and that the information provided to the
Commonwealth for the purposes of the
due diligence process was complete and
accurate
arrange at the completion of the due
diligence process, appropriate run-off
insurance cover from its underwriters
assist the Commonwealth in connection
with the wind-up of the Corporation.
The vision
The Corporation’s vision for future success
of the organisation was “to provide land
assets to a range of clients who would
use the land to its best regional advantage
and in a way which promotes the highest
standards of environmental and urban
quality.”
The mission
The Corporation’s mission recognised
the needs of the community as well as
existing legislative requirements and
the Government’s expectations of an
accelerated disposal of land and an
appropriate financial return “to effect a
strategy to dispose of assets consistent
with Australian Government policy in a
manner which optimises the financial return
to the Commonwealth and prepares the
organisation for winding-up with minimal
residual risks.”
Corporate objectives
The Corporation determined the following
strategic objectives in order to achieve its
mission. The objectives were to:
.
efficiently manage all of the
Corporation’s assets
.
.
.
.
utilise industry best practices to plan for
and expedite the sale of Corporation
land at pricing levels and time scales
that do nothing to destabilise existing
real estate values
operate in a socially responsible manner
and with care for the enhancement of the
local environment
provide a culture which supports the
development and commitment of staff
while recognising the changing role of
the Corporation
develop and implement action plans for
the winding-up of the Corporation.
Core activity
The Corporation achieved its mission and
objectives through the pursuit of its core
activity:
.
.
land and asset management, preparation
for disposal and disposal
implementation of action plans for
winding-up the Corporation.
Powers
Under section 8(2) of the Act: “The
Corporation has power to do all things
necessary or convenient to be done for
or in connexion with, or as incidental to,
the performance of its functions and, in
particular, without limiting the generality of
the foregoing, has power:
a. to enter into contracts and
agreements; and
b. either directly or by arrangement
with other persons, to construct
buildings and works and carry on
services.”
9
AWDC FINAL ANNUAL REPORT 2014-15
Under section 21(1) of the Act, the
Corporation could appoint such officers
or engage such employees as it thought
necessary for the purposes of the Act.
Duties
Section 8(3) of the Act provided that the
Minister may declare a New South Wales
or Victorian Act complementary to the
Act where functions, powers or duties
appeared to be conferred or imposed on the
Corporation by such an Act for the purposes
of the Winding-up Agreement.
The Minister made a declaration that
section 16 of the New South Wales
Albury-Wodonga Development Repeal Act
2000 and section 16(1) of the Victorian
Albury-Wodonga Agreement (Repeal) Act
2003 were complementary to the Act for this
purpose.
The effect of the Minister’s declaration was
that the Corporation had a duty in the same
manner as the former State Corporations
to comply with relevant State legislation,
including laws relating to environmental
protection, environmental planning, and
land and building development and sale.
Arrangements for outside participation
Albury-Wodonga Land Disposal Advisory
Committee
The Albury-Wodonga Land Disposal
Advisory Committee was established
to provide advice to the Corporation on
land disposal strategies as part of the
development of the Corporation’s Annual
Operational Plan. The committee includes
representatives of the Corporation,
New South Wales and Victorian State
10
Governments, the Albury City Council and
the Wodonga City Council, business and
the community. The committee met on two
occasions during 2014-15 and provided a
forum in which the Department of Finance
could inform relevant stakeholders of the
wind-up of the Corporation and transfer of
responsibilities to the department.
Intergovernmental liaison
The Corporation contacted and held
discussions with local councils on matters of
mutual interest. Meetings at a management
level occurred regularly during the year. The
Corporation maintained contact with a range
of other government agencies to discuss
development, sales and disposal matters
during the year.
Judicial decisions and reviews by outside
bodies
There were no judicial decisions or reviews
of Corporation activity by outside bodies
during the reporting period.
AWDC FINAL ANNUAL REPORT 2014-15
Performance for the year
Receipts, expenditure
Gross cash receipts for 2014-15 amounted
to $7.4 million and expenditure for the year
amounted to $3.8 million (excluding returns
to Government).
A summary of cash received and cash used
is detailed in the statement of cash flows
included within the financial statements.
Returns to government
The Corporation paid a Special Dividend of
$3.2 million to the Government in
December 2014 based on its operating
results for the period July to December
2014. The Corporation’s Annual Operational
Plan for 2014-15 forecast dividend
payments totaling $7 million for the whole of
the 2014-15 financial year.
Having regard to the Corporation’s abolition
on 31 December 2014, a Final Dividend of
$12.5 million was also paid in December
2014 which represented the balance of
the Corporation’s cash reserves after
making allowance for employee termination
payments and other winding-up costs.
After including the payments totalling
$15.7 million in December 2014, the total
of all returns paid by the Corporation to
the Commonwealth since inception totals
$336.9 million. The total of all returns paid
to either State or Federal governments, is
set out in the table below and amounts to
$340.6 million.
Table 1 - Returns to governments 1988-89
to 2014-15
Returns to the Commonwealth
1988-89 to 2005-06
$187 237 111
2006-07
$30 000 000
2007-08
$30 000 000
2008-09
$20 000 000
2009-10
$20 000 000
2010-11
$16 000 000
2011-12
$8 000 000
2012-13
$4 000 000
2013-14
$6 000 000
2014-15 (half year)
$3 200 000
Final dividend
payment
Total
$12 500 000
$336 937 111
Returns to Victoria
2003-04
Total Returns
$3 746 477
$340 683 588
Land and asset management
The Corporation’s undeveloped land bank
as at 31 December 2014 totalled
978 hectares having been reduced by
108 hectares since 1 July 2014.
11
AWDC FINAL ANNUAL REPORT 2014-15
Land bank movements in the year under
review are summarised in the Table below.
the land bank nine are situated on land
currently listed for sale.
Table 2 - Undeveloped land bank
movements (hectares) 1 July to
31 December 2014
The eradication and suppression of
noxious weeds remained a key component
of the Corporation’s land management
activities through the implementation of an
annual spraying program using registered
contractors. Patterson Curse and St John’s
Wort in particular were programmed for
eradication and suppression on an annual
basis.
Albury
Wodonga
Total
Land bank
as at
1 July 2014
355
731
1 086
Less sales
30
78
108
Less
environmental
land transfers
-
-
-
Land bank
as at
31 December
2014
325
653
978
A summary of the land bank as at
31 December 2014 by land type is set out in
Table 3 below.
Table 3 - Undeveloped land bank as at
31 December 2014 (hectares)
Land
NSW
VIC
Total
Residential
262
337
599
Industrial &
Commercial
37
78
115
Rural
-
83
83
Other
26
155
181
Total
325
653
978
Category
Land assets under management as at
31 December 2014 included two rural
leases, 21 agistment licences, one other
licence and an extractive industry site.
Other assets include 10 acquired rural
houses (four in New South Wales and six
in Victoria). Of the 10 houses still held in
12
Maintenance of vacant developed
residential and industrial lots was also
carried out in accordance with a seasonal
program. Maintenance predominantly
involved the slashing of vacant lots in all
estates to reduce fire risk. This program
is seasonal extending from early spring to
mid-summer depending on the prevailing
conditions. In general the Corporation
fulfilled its land management responsibilities
by:
.
.
.
.
.
.
implementing seasonal programs in
accordance with Corporation policies
and statutory requirements
detecting and focusing attention on
maintenance issues and maintenance
registers to assist in the allocation of
work on a regular basis
using registered contractors conversant
with Corporation properties and the
standard of maintenance required
inspecting properties held in the land
bank on a periodic basis
being aware of inherent maintenance
problems
receiving assistance from officers of local
municipal and other statutory authorities.
AWDC FINAL ANNUAL REPORT 2014-15
Sales
Undeveloped land bank
The undeveloped land bank was reduced by
108 hectares in the 2014-15 financial year
from 1,086 hectares on 1 July 2014 to
978 hectares as at 31 December 2014.
Table 4 shows the 2014-15 sales of
undeveloped land by land category.
Table 4 – Sales of Undeveloped Land by
Category (hectares) from 1 July to
31 December 2014
Land
NSW
VIC
Total
Residential
27
1
28
Industrial &
Commercial
3
58
61
Rural
-
-
-
Other
-
19
19
Total
30
78
108
Category
Developed residential lots
A total of 17 developed residential lots were
sold in the first six months of the 2014-15
financial year (10 in New South Wales and
seven in Victoria). The 10 sales in
New South Wales related to lots in the
Hume Gardens Estate joint venture
development with Albury City Council
whereas the seven sales in Victoria involved
lots in the Corporation’s own residential
estates.
effect on 30 November 2014. The lots
remaining in the Hume Gardens Estate
were owned outright by the Corporation,
however, ownership was transferred to the
Commonwealth on 1 January 2015 along
with all of the Corporation’s other assets
in accordance with the Albury-Wodonga
Development Corporation (Abolition) Act
2014.
The total sales forecast in the Corporation’s
Annual Operational Plan for the whole
of the 2014-15 Financial Year was for 20
developed lots sales (10 joint venture sales
and 10 sales of the Corporation’s own
developed residential lots).
Table 5 below shows sales of Corporation
developed residential lots over the past six
years.
Table 5 - Annual residential lots sales
2009-10 to 2014-15
2009-10
47
2010-11
22
2011-12
10
2012-13
8
2013-14
26
2014-15 (half year)
17
In preparing for the Corporation’s
wind-up and transfer of responsibilities to
the Department of Finance, it was agreed
that the Hume Gardens Joint Venture
Agreement would be terminated. This took
13
AWDC FINAL ANNUAL REPORT 2014-15
Table 6 below shows the movement in the
number of developed residential lots in
2014-15 by estate.
Table 6 – Residential Lot Sales by Estate
from 1 July 2014 to 31 December 2014
Estate Name
As at
1 July
2014
As at
31
Sales
December
2014
New South Wales
Hamilton
Heights
Hume
Gardens*
Table 7 – Summary of Developed
Residential and Industrial Lots as at
31 December 2014
AWDC Developed
NSW
VIC
Total
Residential
8
31
39
2
1
3
10
32
42
18
12
30
18
12
30
28
44
72
Lots
2
-
2
16
10
6
Industrial
18
10
8
Sub-total - AWDC
Country Club
2
-
2
Federation
Park
4
-
4
Wattle Glen
6
2
4
Venture Developed
Yarralumla
Rise
26
5
21
Lots
Total
38
7
31
Grand Total
56
17
39
Total
Victoria
*Joint venture development with Albury City
Council until 30 November 2014
Developed industrial lots
There were only three developed industrial
lots owned by the Corporation in its own
right at 31 December 2014, two in Albury in
the Thurgoona Industrial Estate and one in
Wodonga at Wodonga Enterprise Park.
The Corporation had two joint venture
industrial land developments with the Albury
and Wodonga Councils at Airside North and
Baranduda Enterprise Park respectively.
There were no developed industrial lots sold
in 2014-15 to 31 December 2014.
14
A summary of all developed residential and
industrial lots in which the Corporation has
an interest through joint venture agreements
or which it owns in its own right is set out in
Table 7 below.
Developed Lots
Joint Venture Developed Lots
Industrial
Sub-total - Joint
Grand total
Environmental performance
The principles of ecologically sustainable
development were incorporated into the
Corporation’s activities in a number of ways:
.
.
the Corporation’s mission statement and
strategic objectives refer to sustainable
development and enhancement of the
environment. The Corporation also had
an environment policy which outlined
the Corporation’s role in promoting
environmentally sound and sustainable
land development
the Corporation’s land development
program was subject to the New South
Wales and Victorian planning and
environment requirements as a result of
a Ministerial declaration under section
8(3) of the Act.
AWDC FINAL ANNUAL REPORT 2014-15
In seeking to minimise the impact of future
development on land currently or formerly
owned by it, the Corporation completed
extensive environmental studies on this land
and developed detailed strategies for future
protection of key environmental assets.
These studies include the Thurgoona
Threatened Species Conservation Strategy
completed in 2004-05, the Albury Ranges
Threatened Species Conservation Strategy
completed in 2005-06 and the Wodonga
Retained Environmental Network Strategy
completed early in 2006-07. The strategies
provided a framework for future land
development and identified areas in need
of protection. They also emphasised the
importance of long term management and
the need for an effective management
structure and management plan for identified
areas.
The Corporation agreed to transfer the
environmental land identified in the
Thurgoona and Albury Ranges Threatened
Species Conservation Strategies to the
New South Wales Government. The
environmental land identified in the
Wodonga Retained Environmental Network
Strategy is being transferred to the Victorian
Government and the Wodonga City Council.
In total over 1,000 hectares of land will be
transferred and will be accompanied by
approximately $11 million in funding for its
future maintenance.
The transfer agreement executed by the
parties incorporated security of purpose
conditions to ensure the land is preserved
for environmental purposes and managed
in accordance with the objectives of the
threatened species conservation strategies
and that the funds to be provided are used
for this purpose.Implementation of the
agreement commenced in 2007-08 with
land being transferred progressively. One
small area remains to be transferred on
the New South Wales side of the border
comprising less than one hectare following
which all transfers will have been completed.
Since implementation of the agreement
commenced a total of 1,082 hectares (604
hectares in New South Wales and 478
hectares in Victoria) has been transferred
with funding amounting to $10.82 million.
The New South Wales Office of Environment
and Heritage in consultation with the
Corporation commissioned an environmental
assessment of various Corporation properties
in 2013-14. The purpose of the assessment
was to ascertain whether Seasonal
Herbaceous Wetlands (Freshwater) of the
Temperate Lowland Plains, which are listed
as a threatened ecological community under
the Environment Protection and Biodiversity
Conservation Act 1999, are present on the
land. A draft copy of the report was received
by the Corporation in October 2014. The final
version of the report had not been received
prior to the Corporation’s wind-up.
Cultural heritage investigations
A report commissioned by the Corporation to
draw together previous known archaeological
studies and registered sites to achieve an
archaeological overview of development
areas in Albury-Wodonga was completed
during 2006-07. The report enabled the
Corporation to link archaeological studies
with individual parcels in the land bank as
they were being prepared for disposal so that
the Corporation was better placed to fulfill its
disclosure obligations.
15
AWDC FINAL ANNUAL REPORT 2014-15
Management and accountability
Corporate governance
To ensure statutory requirements and
stakeholder expectations in relation to
best business practice were met,
Albury-Wodonga Development Corporation
Members and managers discharged their
responsibilities within the framework of the
Albury-Wodonga Development Act 1973
and the Public Governance, Performance
and Accountability Act 2013.
The Corporation presided over the
development of strategies which best
accommodated the interests of the
Commonwealth and stakeholders.
Managers and staff implemented these
strategies in accordance with operational
procedures, and corporate performance
was monitored through an effective
system of internal and external audit and
risk management. In accordance with
its Governance Policy an assessment
of Corporation Board performance was
undertaken during 2014-15.
Corporation members
The Albury Wodonga Development Act
1973 provided for three part-time members
including the Chairperson appointed by the
Governor-General and the Chief Executive
Officer of the Corporation as an ex-officio,
non-voting member.
The members of the Corporation in 2014-15
were:
16
Laurance Andrew Watson – MB BS
(UWA), MHA (UNSW), DipAvMed (London),
FAFOEM. Appointed member until
7 December 2013 and Interim Chairperson
from 1 January 2014.
After 20 years of service in the RAAF,
Dr Watson worked as a Chief Executive
Officer of a Victorian public health
service for 15 years before returning to
private medical practice as a Specialist
Occupational Health Physician. During his
career he acquired a knowledge of business
administration and organisational change
process, knowledge that is transferable
across business sectors. Dr Watson was
Chairperson of the Corporation’s Audit
Committee until 7 December 2013 and
Interim Chairperson of the Corporation from
1 January 2014 following the expiration of
Mr Hanrahan’s term of office on
31 December 2013. He was also
Chairperson of the Albury Wodonga Land
Disposal Advisory Committee.
Carol Anne Judd – B Bus (Acc), FCPA,
AIMM, Registered Tax Agent
Mrs Judd has over 29 years experience
in the accountancy profession in public
practice including 13 years as an employee
and 16 years as Principal of her own
Practice. She was previously a board
member of the Business Enterprise Centre
in Albury for five years and a member of the
Albury Wodonga Branch Council of CPA
Australia for six years during which time
she held the positions of Treasurer and
Secretary. Mrs Judd was Chairperson of the
Corporation’s Audit Committee from
18 December 2013.
AWDC FINAL ANNUAL REPORT 2014-15
Peter Veneris – ALGA, B Bus (Local Govt.),
MBA (Comm. Law).
Mr Veneris was Chief Executive Officer
and an ex officio non-voting member of the
Corporation. Prior to joining the Corporation
in 2006 Mr Veneris had 28 years experience
in local government including the positions
of General Manager of Hume Shire Council
and General Manager of the Greater
Hume Shire Council created following
the rationalisation of local government
boundaries in the Albury region.
In the period from 1 July to 31 December
2014 a total of six Corporation meetings
including one Special meeting and two Audit
Committee meetings were held. A record of
members’ attendance at meetings is set out
in Table 8 below.
Table 8 – Record of Meeting Attendance
Member
Audit
Corporation
Committee
Meetings
Meetings
Dr Andrew Watson
6
2
Mrs Carol Judd
6
2
Mr Peter Veneris
6
2
Code of ethics
The Corporation adopted a Code of Ethics.
The Code provided that the Corporation
through its involvement in the regional land
industry would:
.
.
demonstrate ethical principles and
observe the highest standards of
integrity and honesty in all professional
and personal dealings
uphold and promote the reputation of the
Australian Government and the industry .
.
.
.
generally and not misuse authority of
office for personal gain
respect the confidentiality of information
given to the Corporation in the course of
its work
engage in continued learning to maintain
and improve professional skills and
competence within the industry and
promote innovation and excellence in
practice
strive to support environmentally
sustainable development
show respect for the rights of customers
and maintain the public’s confidence and
trust in the Industry.
Corporate and operational planning
The Corporation maintained its corporate
and operational planning through the
interplay of its Annual Operational Plan (with
a three-year horizon) and its Winding-up
Plan (long term strategy). The Corporation
was required to prepare these documents in
accordance with the Act and to submit them
to the Minister. These have been submitted
in accordance with legislative timeframes.
In the first six months of 2014-15 the
Corporation activities were directed to:
.
.
.
continue the land sales program of
varying sized parcels to the private
sector including strategies to enhance
the saleability of various properties
released to the market in prior years
optimise the return to the
Commonwealth from its land sales
prepare detailed winding-up action plans
17
AWDC FINAL ANNUAL REPORT 2014-15
.
undertake a due diligence process and
work closely with the Department of
Finance towards an orderly wind-up
of the Corporation and transition of its
land management responsibilities to the
department.
Risk management
The Corporation adopted an organisational
risk management philosophy and
awareness at all levels. A corporate
framework for managing risk was endorsed
by the Corporation and implemented
throughout the organisation which
provided for management reporting on a
monthly basis, management certification
on a regular basis and/or internal audit
assurance on a quarterly basis in relation to
medium and high risks.
The Corporation’s Risk Management Policy
also provided that critical decisions taken
by the Corporation were to be informed and
supported by a risk assessment including
adoption of the Annual Operational Plan,
the forecast dividend payments, the actual
interim dividend payment and the actual
final dividend payment.
In the first six months of 2014-15 the
Corporation’s Audit Committee continued
to assist the Corporation in exercising due
care, diligence and skill in discharging its
oversight and monitoring responsibilities,
especially regarding financial reporting, risk
management and winding-up issues.
Members of the Albury-Wodonga
Development Corporation Audit Committee
during 2014-15 were Dr Andrew Watson,
Mrs Carol Judd and Mr Peter Veneris.
Mrs Judd was Chairperson of the
committee.
18
The Audit Committee Charter defined the
function, structure and responsibilities of
the committee. This charter was subject to
annual review.
The committee provided a conduit through
which internal and external auditors
had a clear and simultaneous line of
communication with the Corporation and its
managers.
Internal audit services for the 2014-15
year until the Corporation’s wind-up were
provided by Johnsons MME Chartered
Accountants and predominantly involved
quarterly reviews of financial transactions.
In accordance with the Audit Committee
Charter an assessment of the Committee’s
performance was undertaken in 2014-15.
Audit services
External audit services were provided by
Ernst & Young as agents for the Australian
National Audit Office during 2014-15 in
relation to the 2013-14 financial statements.
The total value of payments made or
accrued for external audit related services
during the year amounted to $58,000
excluding GST.
Indemnities and insurance premiums for
officers
A Professional Indemnity insurance policy
was in place for the first six months of
2014-15 providing cover of $10 million
for any one claim and in the aggregate. A
Directors and Officers Liability insurance
cover was also maintained with a limit of
indemnity of $10 million for any one claim
and in the aggregate.
In preparing for its wind-up, run-off
insurance cover was arranged by the
AWDC FINAL ANNUAL REPORT 2014-15
Corporation in respect of its Directors and
Officers Liability and Professional Indemnity
insurance policies extending for a period
of seven years and in respect of its Public
and Products Liability insurance policy for
a period of two years. A Commonwealth
Indemnity has also been granted to
Corporation members.
Information services
The Corporation’s information technology
services were maintained by an external
contractor and supported by policies
that focussed on access and security,
appropriate use of the internet and email,
business continuity planning and related
procedures.
Information regarding Corporation land
for sale was made available on the
Corporation’s website
www.awc.gov.au in addition to conventional
marketing methods such as newspaper and
radio advertising. In respect of developed
lots the information available from the
corporate website included price, size,
location, plan of subdivision, development
control plan, estate enhancement provisions
and soil classification. The website was
integrated with Google maps to assist users
in identifying the location of Corporation
land available for sale.
Corporate information made available
on the website included the Statement
of Expectation issued by the responsible
Minister, Statement of Corporate Intent,
Corporate Profile, Albury Wodonga Land
Disposal Advisory Committee membership
and Charter and recent annual reports.
A data base of Albury Wodonga businesses,
known as the Albury Wodonga Business
Directory, was officially launched in
2009-10 as a joint initiative of the
Corporation and the Albury and Wodonga
Councils. The business directory assisted
the Corporation in meeting its obligation
to provide suitably researched information
to the Albury-Wodonga Land Disposal
Advisory Committee and assisted the
Councils in performing their business and
economic development functions. The
data base was used to conduct a survey
of Albury-Wodonga businesses in 2012-13
with the key survey findings made publicly
available on the directory website
www.alburywodonga.gov.au.
Land information
The geographic information system (GIS)
services were provided to the Corporation
by an external contractor.
The GIS services supported the
Corporation’s marketing and sales activities,
and the corporate website during the year.
Land ownership and lease holdings were
also managed and monitored by the GIS
and related systems.
With the assistance of its GIS contractor
the Corporation captured metadata for its
mapping (or spatial) data to ensure that
maximum benefit was obtained from the
spatial data, both by internal users and
potential external users, and assisted with
any winding-up issues as they related to
the Corporation’s mapping information
including the retention of and future access
to the spatial data. The project involved
conducting a search and establishing
an inventory of the Corporation’s spatial
data holdings and establishing metadata
statements for key datasets.
19
AWDC FINAL ANNUAL REPORT 2014-15
Records management
The Corporation’s records management
policy set out the framework for the creation
and management of records required
to efficiently and effectively support its
business functions. Operating instructions
were also in place to specify record keeping
procedures in greater detail.
In preparing for its wind-up the Corporation
prepared a Records Authority and submitted
it to National Archives of Australia for
approval. The Records Authority, among
other things, identified the Corporation
records required to be retained as National
Archives.
Customer service charter
The Corporation’s customer service charter,
entitled Our Commitment to Service, set
out the Corporation’s customer service
standards and customer rights and
responsibilities.
The charter contained 15 individual
standards and included standards covering
the quality of relationships with customers
and service delivery.
Table 9 - Corporation staff at
17 December 2014
Full-time
Parttime
Total
Senior
management
1
-
1
Senior officers
2
-
2
Administrative
service officers
2
-
2
Total
5
-
5
One senior officer was employed in a
part-time capacity until 6 November 2014
when he reverted to full-time employment to
assist with the winding-up actions once the
wind-up date had been determined.
The Albury Wodonga Development
Corporation Enterprise Agreement
2013-2015, approved by Fair Work Australia
during 2012-13, covered all employees
except the Chief Executive Officer who was
employed under an individual employment
contract.
Human resources
The Corporation employed four full-time
and one part-time staff including the Chief
Executive Officer at 17 December. Staff
were located in Albury-Wodonga. The Chief
Executive Officer was employed pursuant to
section 10A of the Act. The other four staff
members were employed under section
21(1) of the Act. Table 9 sets out the existing
staff structure at 17 December 2014.
20
Left to right: Peter Rutsch,Graeme Hiskins,
Sue Stanfield, Nina Merrilees, Peter Veneris
AWDC FINAL ANNUAL REPORT 2014-15
Table 10 - Organisation structure and roles and responsibilities as at 17 December 2014
Corporation Board
.
.
.
.
.
.
.
Peter Veneris
CHIEF EXECUTIVE OFFICER
Manage business of the Corporation
Administrative support for Corporation Members
Policy advice, formulation and co-ordination
Government relationships
Annual report
Winding-up Plan and Annual Operational Plan
Sales of undeveloped land
ASSET MANAGEMENT
FINANCE AND ADMINISTRATION
Graeme Hiskins
Assets Manager
Peter Rutsch
Finance and Administration Manager
Nina Merrilees
Property Officer
Sue Standfield
Administration Officer
.
.
.
.
.
.
Leasing of:
residential and rural properties
commercial and industrial
buildings and sites
Asset management & maintenance
programs
Sales of developed residential,
industrial and commercial lots
Land valuations
.
.
.
.
.
.
.
Financial management and reporting
Financial, costing and accounting
services
Financial services for joint ventures
Information and communication
technology
Records and library services
Human resource management
Administrative and purchasing
services
21
AWDC FINAL ANNUAL REPORT 2014-15
Staff development, training and
performance appraisal
The Corporation implemented a mechanism
for performance agreement and appraisal of
the objectives. These objectives improved
performance through:
.
.
.
.
measurement of individual performance
against corporate goals and objectives
(as detailed in the Corporation’s Annual
Operational Plan)
evaluation of individual staff
members’ understanding of their work
responsibilities and the performance
standards expected of them and to
ensure they knew how their performance
against standards was perceived
evaluation of communication between
supervisors and their staff
improvement of individual work
performance where expected results
were not achieved.
Performance Appraisals were also designed
to provide:
.
.
.
a basis for assessing and meeting the
training and development needs of
individual staff members
adaptability and flexibility in staff
members
a basis for performance based pay
arrangements.
Importantly, the performance appraisal
system provided an opportunity for
employees and their supervisors to identify
training/development needs and to agree on
a program for the employee’s development/
enhancement based on those needs.
22
Vocational training and re-training
opportunities were made available to staff
during 2014-15 in view of the Corporation’s
impending wind-up.
Work health and safety
The Corporation was subject to the Work
Health and Safety Act 2011 (WHS Act).
One of the Corporation’s five employees
was elected as a health and safety
representative.
Work health and safety had been made
a standing agenda item at monthly
staff meetings which were attended by
all employees in lieu of establishing a
separate and stand-alone health and
safety committee. The WHS Act provided
that if a health and safety committee
was not required to be established,
other consultation procedures could be
established for a workplace.
A request may be made for one or more
work groups of workers to be established for
the purpose of having different work groups
represented by different health and safety
representatives. No such request had been
made by Corporation employees as the
total number of workers employed by the
Corporation was five and all workers were
situated at the same location undertaking
similar work from a work health and safety
perspective.
Activities undertaken in the first six months
of 2014-15 in relation to work health, safety
and welfare of employees and contractors
included:
.
.
Influenza vaccinations
biennial health checks
AWDC FINAL ANNUAL REPORT 2014-15
.
eye tests for screen based equipment
operation
.
.
.
access to counseling services
CPR refresher course
vehicle fire extinguisher and first aid kit
maintenance
No claims for staff injuries were received
during the reporting period and there were
no reports to Comcare Australia under the
incident-reporting regulations of the WHS
Act.
Equal employment opportunity
The Corporation was subject to the Equal
Employment Opportunity (Commonwealth
Employees) Act 1987 but, as an employer of
less than 40 employees, was not a “relevant
authority” for the purposes of that Act and
had no formal reporting requirements.
However, the Corporation had a Workplace
Relations Policy in place stating its
commitment to the principles of equal
employment opportunity in employment
matters.
Freedom of information
Commonwealth Freedom of Information
Act 1982
The Corporation was subject to the
Freedom of Information Act 1982 (FOI
Act). However by virtue of Section 7 (2) the
Corporation was exempt from the operation
of the FOI Act in relation to documents in
respect of its commercial activities.
Information Publication Scheme
The Corporation had prepared an Agency
Plan in accordance with the requirements
of Section 8 of the FOI Act showing how
the Corporation was complying with the
Information Publication Scheme (IPS)
requirements of the FOI Act. A copy of the
Agency Plan had been made available on
the Corporation’s website.
.
.
.
The purpose of the Agency Plan was to:
.
outline what information the Corporation
proposed to publish
outline how and to whom the information
would be published
explain how the Corporation would
otherwise comply with the IPS
requirements and section 8 of the Act.
The objectives of the Agency Plan were to:
.
.
.
identify and publish all information
required to be published pursuant to
section 8 of the Act
proactively identify and publish any other
information to be published (s 8(4))
ensure that information published as
part of the Corporation’s IPS entry was
accurate, up to date and complete
ensure that information published as part
of its IPS entry was easily discoverable.
In accordance with the Agency Plan
information was published under the
following headings:
.
.
.
.
.
.
.
About the Corporation
Organisation Structure
Powers and functions
Statutory appointments
Annual reports
Operational information
Other information
23
AWDC FINAL ANNUAL REPORT 2014-15
An IPS Register was established to assist
in identifying documents for publication. The
Register identified when each document
was last updated and when each document
was scheduled to be updated again
to ensure the IPS entry was accurate,
up to date and complete. The Register
also identified the format in which each
document was available and the file size.
FOI procedures and facilities for access
Requests under the Commonwealth
Freedom of Information Act 1982 (FOI
Act) for access to documents previously in
possession of the Corporation should be
addressed to:
The FOI Coordinator
Legal Services Branch
Department of Finance
John Gorton Building
King Edward Terrace
PARKES ACT 2600
The FOI Coordinator can be contacted on
(02) 6215 1783 to discuss any prospective
request to the department.
One Freedom of Information request was
received in the first six months of 2014-15.
Categories of documents
Most records were located at the
Corporation’s office at 620 Macauley
Street, Albury, 2640. Records older than
seven years and used less frequently for
Corporation activities, but still retained for
administrative or legal purposes, are held in
off-site storage.
Categories of documents are: minutes
and business papers; policy manual;
24
management manual; annual reports;
Winding-up Plan and Annual Operational
Plan; public relations documentation;
correspondence and business files which
comprise administration, sale, lease, policy,
acquisition and development and estate
design files; financial and accounting
records; company search files; personnel
management files; various reports
commissioned by the Corporation; mailing
and contact lists; development plans, maps
and drawings; land register, property titles
and technical records dealing with physical
land development.
AWDC FINAL ANNUAL REPORT 2014-15
25
AWDC FINAL ANNUAL REPORT 2014-15
INDEPENDENT AUDITOR’S REPORT
To the Minister for Finance
Report on the Financial Statements
I have audited the accompanying financial statements of Albury-Wodonga Development
Corporation for the period 1 July 2014 to 31 December 2014, which comprise: a Statement by
the Secretary and the Chief Financial Officer of the Department of Finance; the Statement of
Comprehensive Income; Statement of Financial Position; Statement of Changes in Equity;
Cash Flow Statement; Schedule of Commitments; Schedule of Contingencies; and Notes to
and forming part of the financial statements comprising a summary of significant accounting
policies and other explanatory information.
Secretary of the Department of Finance’s Responsibility for the Financial Statements
The Secretary of the Department of Finance is responsible for the preparation of financial
statements that present fairly in accordance with Australian Accounting Standards and the
Public Governance, Performance and Accountability Act 2013 and for such internal control as
is necessary to enable the preparation of financial statements that present fairly and are free
from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
My responsibility is to express an opinion on the financial statements based on my audit.
I have conducted my audit in accordance with the Australian National Audit Office Auditing
Standards, which incorporate the Australian Auditing Standards. These auditing standards
require that I comply with relevant ethical requirements relating to audit engagements and
plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation of the financial statements that
present fairly in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of the accounting policies used
and the reasonableness of accounting estimates made by the Secretary for the Department of
Finance, as well as evaluating the overall presentation of the financial statements.
GPO Box 707 CANBERRA ACT 2601
19 National Circuit BARTON ACT
Phone (02) 6203 7300 Fax (02) 6203 7777
26
AWDC FINAL ANNUAL REPORT 2014-15
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis
for my audit opinion.
Independence
In conducting my audit, I have followed the independence requirements of the Australian
National Audit Office, which incorporate the requirements of the Australian accounting
profession.
Opinion
In my opinion, the financial statements of Albury-Wodonga Development Corporation have
been prepared in accordance with the Public Governance, Performance and Accountability
(PGPA) Act 2013 and:
(a) comply with Australian Accounting Standards and the PGPA Rules; and
(b) present fairly Albury-Wodonga Development Corporation’s financial position as at
31 December 2014 and its financial performance and cash flows for the period
1 July 2014 to 31 December 2014.
Basis of accounting
I draw attention to Notes 1.1 and 1.2 of Albury-Wodonga Development Corporation’s
financial statements which disclose that, as a result of the passing of the Albury-Wodonga
Development Corporation (Abolition) Act 2014, Albury-Wodonga Development
Corporation ceased to exist on 31 December 2014. I also draw attention to Note 1.2 which
describes the basis of preparation of the financial statements.
My opinion, set out above, has not been modified in respect of these matters.
Australian National Audit Office
Carla Jago
Executive Director
Delegate of the Auditor-General
Canberra
23 March 2015
27
AWDC FINAL ANNUAL REPORT 2014-15
28
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Statement of Comprehensive Income
for the period 1 July 2014 to 31 December 2014
31 December
2014
30 June
2014
Notes
$'000
$'000
Employee benefits
3A
1,169
836
Suppliers
3B
1,068
1,679
NET COST OF SERVICES
Expenses
Depreciation
3C
12
Losses from asset sales
3D
-
325
Write-down and impairment of assets
3E
-
108
Other expenses
3F
-
Total expenses
35
36
2,249
3,019
Own-Source Income
Own-source revenue
Sale of goods
4A
801
1,426
Interest
4B
256
566
Rental income
4C
157
237
Royalties
4D
16
70
1,230
2,299
Total own-source revenue
Gains
Gains from sale of assets
4F
Total gains
Total own-source income
Net (cost) of services
Share of surplus of joint ventures accounted for using the equity method
7C
(Deficit) / Surplus
129
92
129
92
1,359
2,391
(890)
(628)
89
174
(801)
(454)
131
198
OTHER COMPREHENSIVE INCOME
Items not subject to subsequent reclassification to net cost of services
Changes in asset revaluation reserves
Total other comprehensive income (loss)
Total comprehensive (loss)
5
131
198
(670)
(256)
The above statement should be read in conjunction with the accompanying notes.
26
29
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Statement of Financial Position
as at 31 December 2014
31 December
2014
30 June
2014
Notes
$'000
$'000
Cash and cash equivalents
7A
2,629
14,672
Trade and other receivables
7B
101
65
Investments accounted for using the equity method
7C
6,124
7,188
8,854
21,925
ASSETS
Financial Assets
Total financial assets
Non-Financial Assets
Inventories
8A
2,655
2,542
Land and buildings
8B
1,484
1,484
Plant and equipment
8C
5
Other non-financial assets
8E
116
Assets under construction - land preparation
9
Total non-financial assets
Assets held for sale
8D
Total assets
63
-
109
109
4,369
4,198
41,970
46,206
55,193
72,329
159
LIABILITIES
Payables
Suppliers
10A
2
Grants
10B
17
40
Other payables
10C
1
104
20
303
483
Total payables
Provisions
Employee provisions
11A
-
Other provisions
11B
18
18
18
501
Total provisions
Total liabilities
38
804
55,155
71,525
Reserves
38,215
40,984
Retained surplus
16,940
30,541
55,155
71,525
Net assets
EQUITY
Total equity
The above statement should be read in conjunction with the accompanying notes.
27
30
(801)
Total comprehensive income
2,900
(6,000)
30,541
6,603
(6,000)
(6,603)
40,984
(2,900)
38,215
-
-
198
198
47,389
$'000
30 June
2014
-
-
131
131
40,984
$'000
31 December
2014
Reserves
55,155
-
(15,700)
(15,700)
(670)
(801)
131
71,525
$'000
31 December
2014
Total equity
The above statement should be read in conjunction with the accompanying notes.
the date of disposal.
the date of original acquisition. The balance transferred represents the difference between the historical cost and the book value of land assets at
Transfers between equity components are derived from sales of land assets which have accumulated revaluation increments over their lives from
amounting to $131,000 (30 June 2014: $198,000 increase).
Changes in revaluation reserves relate to the net movement in value of Property, Plant & Equipment and Assets Held for Sale, and movement in associated selling costs
16,940
Transfers between equity components
Closing balance as at 30 June
(15,700)
(15,700)
Dividends
Sub-total transactions with owners
Returns on capital:
Distributions to owners
Transactions with owners:
(454)
(454)
-
Changes in revaluation reserves
(801)
30,392
$'000
$'000
30,541
30 June
2014
31 December
2014
Retained surplus
Surplus (Deficit) for the period
Comprehensive income
Balance carried forward from previous period
Opening balance
for the period 1 July 2014 to 31 December 2014
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Statement of Changes in Equity
28
71,525
-
(6,000)
(6,000)
(256)
(454)
198
77,781
$'000
30 June
2014
AWDC FINAL ANNUAL REPORT 2014-15
31
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Cash Flow Statement
for the period 1 July 2014 to 31 December 2014
Notes
31 December
2014
30 June
2014
$'000
$'000
1,580
3,041
279
593
OPERATING ACTIVITIES
Cash Received
Sales of goods and rendering of services
Interest
-
Net GST Received
Total cash received
13
1,859
3,647
Suppliers
(1,685)
(1,352)
Employees
(1,684)
(792)
(3,369)
(2,144)
(1,510)
1,503
Proceeds from sale of property, plant and equipment
4,542
7,653
Proceeds from investment in Joint Ventures
1,017
-
5,559
7,653
Cash Used
Total cash used
Net cash (used by)/from operating activities
12
INVESTING ACTIVITIES
Cash Received
Total cash received
Cash Used
-
Purchase of plant and equipment
Contributions to investment in Joint Ventures
Total cash used
Net cash flows from investing activities
(40)
(392)
-
(392)
(40)
5,167
7,613
FINANCING ACTIVITIES
Cash Used
(15,700)
(6,000)
Total cash used
(15,700)
(6,000)
Net cash (used by) financing activities
(15,700)
(6,000)
Net increase (decrease) in cash held
(12,043)
3,116
14,672
11,556
2,629
14,672
Dividends paid
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
7A
The above statement should be read in conjunction with the accompanying notes.
29
32
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Schedule of Commitments
as at 31 December 2014
31 December
2014
30 June
2014
$'000
$'000
-
(159)
BY TYPE
Commitments payable
Other commitments
Operating Lease 1
Net GST payable on commitments
2
-
14
Total other commitments
-
(145)
Net commitments by type
-
(145)
Within 1 year
-
(159)
Between 1 to 5 years
-
-
-
(159)
BY MATURITY
Commitments payable
Operating lease commitments
Total operating lease commitments
GST payable
Within 1 year
-
14
Between 1 to 5 years
-
-
Total GST payable commitments
-
14
Net commitments by maturity
-
(145)
Note:
1. The Operating Lease relates to office accommodation and is non-cancellable.
The term of the lease is for a fixed period which expires in June 2015 and was subject to an indexation increment
of 3.5% per annum. The lease was novated to the Department of Finance on 31 December 2014.
2. Commitments are GST inclusive where relevant
The above schedule should be read in conjunction with the accompanying notes.
30
33
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Schedule of Contingencies
as at 31 December 2014
31 December
2014
30 June
2014
$'000
$'000
Contingent assets
Land Sales
Total contingent assets
805
3,237
805
3,237
Contingent liabilities
Employee Redundancies
Total contingent liabilities
-
542
-
542
Details of each class of contingent liabilities and contingent assets in the prior year are disclosed in Note 14, along
with information on significant remote contingencies and contingencies that cannot be quantified.
The above schedule should be read in conjunction with the accompanying notes.
31
34
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Table of Contents - Notes
Note 1: Summary of Significant Accounting Policies
Note 2: Events after the Reporting Period
Note 3: Expenses
Note 4: Own-Source Income
Note 5: Other Comprehensive Income
Note 6: Fair Value Measurements
Note 7: Financial Assets
Note 8: Non-Financial Assets
Note 9: Assets Under Construction - Land Preparation
Note 10: Payables
Note 11: Provisions
Note 12: Cash Flow Reconciliation
Note 13: Senior Executive Remuneration
Note 14: Contingent Assets and Liabilities
Note 15: Member Remuneration
Note 16: Related Party Disclosures
Note 17: Remuneration of Auditors
Note 18: Financing Arrangements
Note 19: Financial Instruments
Note 20: Financial Assets Reconciliation
Note 21: Compensation and Debt Relief
Note 22: Reporting of Outcomes
32
35
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
Note 1: Summary of Significant Accounting Policies
1.1 Objective of Albury-Wodonga Corporation
The Corporation was an Australian Government Statutory Authority established by the Albury-Wodonga Development
Act 1973 and was a not-for-profit entity. The Corporation has been abolished as at 31 December 2014, under the
Albury-Wodonga Development Corporation (Abolition) Act 2014. The objective of the Corporation was to dispose of its
assets, consistent with Australian Government policy, in a manner which optimised the return to the Commonwealth.
The corporation was structured to meet the following outcome:
Outcome 1: To prepare the Corporation, over a period specified in the Statement of Expectation issued by the
Minister for Finance from time to time, for abolition by a future Act. Achievement of this outcome is subject to disposal
of land assets in accordance with the guidelines set out in the Statement of Expectation.
Commercial activities were carried out in the state of NSW and also Victoria, under the registered business name
“Albury-Wodonga Corporation” to reflect the fact that the Corporation had withdrawn from land development activities.
1.2 Basis of Preparation of the Financial Statements
As noted in note 1.1, the Corporation ceased to exist on 31 December 2014 and the assets and liabilities of the
Corporation become assets of the Commonwealth without any conveyance, transfer or assignment. The financial
statements have been prepared on the basis that the assets will be realised and liabilities settled in the normal course
of the Department of Finance’s business.
The financial statements have been prepared in accordance with:
a) The Albury-Wodonga Development Act 1973; and
b) Public Governance, Performance and Accountability (Financial Reporting) Rule 2015; and
c) Australian Accounting Standards issued by the Australian Accounting Standards Board (AASB) that apply for the
reporting period.
The financial statements have been prepared on an accrual basis and in accordance with the historical cost
convention, except for certain assets and liabilities at fair value and land sales as per Note 1.5. Except where stated,
no allowance is made for the effect of changing prices on the results or the financial position.
The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars
unless otherwise specified.
The financial statements are for the 6 month period 1 July 2014 to 31 December 2014 whereas the comparatives are
for the 12 month period 1 July 2013 to 30 June 2014.
Unless an alternative treatment is specifically required by an accounting standard or the Financial Reporting Rule
(FRR), assets and liabilities are recognised in the balance sheet when and only when it is probable that future
economic benefits will flow to the Corporation or a future sacrifice of economic benefits will be required and the
amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory
contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised
are reported in the schedule of commitments or the schedule of contingencies.
Unless an alternative treatment is specifically required by an accounting standard, income and expenses are
recognised in the Statement of Comprehensive Income when, and only when, the flow, consumption or loss of
economic benefits has occurred and can be reliably measured.
1.3 Significant Accounting Judgements and Estimates
In the process of applying the accounting policies listed in this note, the Commonwealth has made the following
judgements that have the most significant impact on the amounts recorded in the financial statements:
a) The fair value of land and buildings has been taken to be the market value of similar properties as determined
by an independent valuer. In some instances, Corporation land or buildings may in fact realise more or less
when offered to the market for sale.
33
36
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
1.3 Significant Accounting Judgements and Estimates (cont’d)
No other accounting assumptions or estimates have been identified that have a significant risk of causing a material
adjustment to carrying amounts of assets and liabilities within the next reporting period.
1.4 New Australian Accounting Standards
Adoption of New Australian Accounting Standard Requirements
No accounting standard has been adopted earlier than the application date as stated in the standard.
Other new standards, amendments to standards or interpretations that were issued prior to the sign-off date, and
were applicable to the current reporting period did not have a financial impact and are not expected to have a future
financial impact on the Corporation.
Future Australian Accounting Standard Requirements
Other new standards, amendments to standards or interpretations that were issued prior to the sign-off date and are
applicable to future reporting periods are not expected to have a future material impact on the financial statements of
the Corporation.
1.5 Revenue
All revenue from the sale of goods, such as developed lots, and other undeveloped land (classified as either land and
buildings or assets held for sale) is recognised when the amount due under the respective sales contract is actually
received by the Corporation.
Revenue is recognised only upon settlement (rather than exchange) of contracts i.e. when:
a) the risks and rewards of ownership have been fully transferred to the buyer;
b) the Corporation has relinquished effective control over the property;
c) the revenue and transaction costs incurred have been reliably measured; and
d) the economic benefits associated with the transaction have been received by the Corporation.
Receivables for property rentals and other charges, which have 28 day terms, are recognised at the nominal amounts
due, less any impairment allowance account. Collectability of debts is reviewed at the end of the reporting period.
Allowances are made when collectability of the debt is no longer probable.
Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments:
Recognition and Measurement.
1.6 Gains
Sale of Assets
Gains from disposal of assets are recognised when control of the asset has passed to the buyer, in accordance with
the recognition policy outlined in Note 1.5.
Resources Received Free of Charge
Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably
determined and the services would have been purchased if they had not been donated. Use of these resources is
recognised as an expense.
Resources received free of charge are recorded as either revenue or gains depending on their nature.
1.7 Transactions with the Government as Owner
Other Distributions to Owners
The FRR requires that distributions to owners be debited to contributed equity unless it is in the nature of a dividend.
All equity originally contributed by the Australian Government has been repaid and the amount provided in the
accounts for the current financial year represents a dividend paid from accumulated surpluses.
34
37
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
1.8
Employee Benefits
Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits
due within twelve months of the end of the reporting period are measured at their nominal amounts.
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.
Other long-term employee benefits are measured as the net total of the present value of the defined benefit obligation
at the end of the reporting period.
Leave
The liability for employee benefits includes provision for annual leave and long service leave. No provision has been
made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of
the Corporation is estimated to be less than the annual entitlement for sick leave.
The leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will be
applied at the time the leave is taken, including the Corporation's employer superannuation contribution rates to the
extent that the leave is likely to be taken during service rather than paid out on termination.
The liability for long service leave has been determined on the basis of an estimate of the present value of the liability
taking into account attrition rates and pay increases through promotion and inflation.
Separation and Redundancy
No provision has been made for separation and redundancy benefit payments. The Corporation only recognises a
provision for termination when it has developed a detailed formal plan for the terminations and the employees affected
have been advised in writing that their positions are to cease on a nominated date.
Superannuation
Staff of the Corporation are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector
Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap). There are two non-executive Board members
who are members of other defined contribution schemes, one of which is a self- managed superannuation fund and
one is an industry based fund (Australian Super).
The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution
scheme.
The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled
by the Australian Government in due course. The liability is reported in the Department of Finance ’s administered
schedules and notes.
The Corporation makes employer contributions to the employees’ superannuation schemes at rates determined by an
actuary as sufficient to meet the current cost to the Government. The Corporation accounts for the contributions as if
they were contributions to defined contribution plans.
1.9
Leases
A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the
lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating
lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks
and benefits.
The Corporation does not have any assets which have been acquired under a finance lease.
Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits
derived from the leased assets.
1.10 Fair Value Measurement
The Corporation deems transfers between levels of the fair value hierarchy to have occurred at the end of the
reporting period.
35
38
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
1.11 Cash
Cash is recognised at its nominal amount. Cash and cash equivalents includes:
a) cash on hand; and
b) demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to
known amounts of cash and subject to insignificant risk of changes in value.
1.12 Financial Assets
The Corporation classifies its financial assets in the following categories:
a) financial assets at fair value through profit or loss;
b) held-to-maturity investments;
c) available-for-sale financial assets; and
d) loans and receivables.
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial
recognition. Financial assets are recognised and derecognised upon trade date.
Effective Interest Method
The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating
interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future
cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.
Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value
through profit or loss.
Loans and Receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an
active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using
the effective interest method less impairment. Interest is recognised by applying the effective interest rate.
Impairment of Financial Assets
Financial assets are assessed for impairment at the end of each reporting period.
Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for
loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as
the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted
at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The
loss is recognised in the Statement of Comprehensive Income.
1.13 Investment in Associates
The Corporation’s investment in its associates is accounted for using the equity method.
The Corporation has contributed equity to three joint development arrangements with two local government bodies,
namely the City of Albury and the City of Wodonga. These projects involve the development and sale of industrial and
residential lots in separate precincts situated within the local government boundaries of Albury and Wodonga. One of
these joint development arrangements was divested during the period ended 31 December 2014.
Equity contributions by the Corporation involve land, estate development costs, rates and maintenance. Development
works have been completed and the finished lots are currently being marketed.
The terms of each agreement provide that "the rights, duties, obligations and liabilities of the parties shall be several
and not joint nor joint and several". The arrangements are not partnerships and each party is separately responsible
for any assets held or liabilities incurred in respect of the arrangement.
Under the equity method, investments in the associates are carried in the Corporation’s balance sheet at cost as
adjusted for post-acquisition changes in the Corporation’s share of net assets of the associates. Goodwill relating to
an associate is included in the carrying amount of the investment. After the application of the equity method, the
Corporation determines whether it is necessary to recognise any impairment loss with respect to the net investment in
associates.
The Corporation's investment measured at fair value, less an impairment allowance is shown at Note 7C.
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
36
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
1.14 Financial Liabilities
Financial liabilities are classified as either Suppliers, Grants or Other payables. Financial liabilities are recognised and
derecognised upon ‘trade date’.
Suppliers, Grants or Other payables
Suppliers, Grants or Other payables, are initially measured at fair value, net of transaction costs. These liabilities are
subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an
effective yield basis.
39
AWDC FINAL ANNUAL REPORT 2014-15
The Corporation's investment measured at fair value, less an impairment allowance is shown at Note 7C.
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
1.14 Financial Liabilities
Financial liabilities are classified as either Suppliers, Grants or Other payables. Financial liabilities are recognised and
derecognised upon ‘trade date’.
Suppliers, Grants or Other payables
Suppliers, Grants or Other payables, are initially measured at fair value, net of transaction costs. These liabilities are
subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an
effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future
cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.
Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods
or services have been received (and irrespective of having been invoiced).
1.15 Contingent Liabilities and Contingent Assets
Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant
schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset
or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when
settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than
remote.
1.16 Financial Guarantee Contracts
The Corporation has not entered into any financial guarantee contracts.
1.17 Acquisition of Assets
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of
assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value
plus transaction costs where appropriate.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair
value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In
the latter case, assets are initially recognised as contributions by owners at the amounts at which they were
recognised in the transferor’s accounts, immediately prior to the restructuring.
1.18 Property, Plant and Equipment
Asset Recognition Threshold
Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases
costing less than $1000, which are expensed in the year of acquisition (other than where they form part of a group of
similar items which are significant in total).
The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site
on which it is located. This is particularly relevant to ‘make good’ provisions taken up by the Corporation where there
is an obligation to restore an office building leased by the Corporation to its original condition, on termination of the
lease. These costs are included in the value of the Corporation’s leasehold improvements with a corresponding
provision for the ‘make good’ recognised.
Revaluations
Following initial recognition at cost, property plant and equipment are carried at fair value less subsequent
accumulated depreciation and accumulated impairment losses. Valuations of vehicles and operating equipment are
conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the
assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of
movements in market values for the relevant assets.
37
40
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
1.18 Property, Plant and Equipment (cont’d)
Revaluation adjustments were made on a class basis. Any revaluation increment is credited to equity under the
heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the
same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets
are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset
and the asset restated to the revalued amount.
Depreciation
Depreciable plant and equipment assets are written-off to their estimated residual values over their estimated useful
lives to the Corporation using, in all cases, the straight-line method of depreciation.
Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary
adjustments are recognised in the current, or current and future reporting periods, as appropriate.
Depreciation rates applying to each class of depreciable asset are based on the following useful lives:
31 December 2014 30 June 2014
Plant, equipment & vehicles
3 - 10 Years
3 - 10 Years
Leasehold improvements
3 years
3 years
Impairment
All assets were assessed for impairment at 31 December 2014. Where any indications of impairment exist, the asset’s
recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than
its carrying amount.
The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is
the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of
an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be
replaced if the Corporation were deprived of the asset, its value in use is taken to be its depreciated replacement cost.
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits
are expected from its use or disposal.
1.19 Inventories
Inventories include standard residential lots, large residential (rural living) lots and industrial use lots.
Inventories held for sale include separate inputs of raw land and development costs as follows:
a) Raw land - at valuation when transferred to each development precinct.
b) Development works - at cost for supplier invoices plus allocation of labour and overheads (internal charges
have been applied on the basis of a reasonable share of total activities).
Inventories held for sale are valued at the lower of cost and net realisable value.
The Corporation also holds inventories through its investment in associates. Refer to Note 1.13.
1.20 Taxation / Competitive Neutrality
The Corporation is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and Goods and Services Tax
(GST).
Revenue, expenses and assets are recognised net of GST except:
a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
b) for receivables and payables.
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
38
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
1.20 Taxation / Competitive Neutrality (cont’d)
Competitive Neutrality
The Corporation is not subject to Competitive Neutrality arrangements which require designated Authorities and
Agencies to make Australian Income Tax Equivalent payments to the Australian Government.
Note 2: Events After the Reporting Period
41
AWDC FINAL ANNUAL REPORT 2014-15
b) for receivables and payables.
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
1.20 Taxation / Competitive Neutrality (cont’d)
Competitive Neutrality
The Corporation is not subject to Competitive Neutrality arrangements which require designated Authorities and
Agencies to make Australian Income Tax Equivalent payments to the Australian Government.
Note 2: Events After the Reporting Period
On 1 January 2015, all remaining assets and liabilities of the Corporation were transferred to the Department of Finance,
under the Albury-Wodonga Development Corporation (Abolition) Act 2014. The Department of Finance assume all
responsibility for any remaining obligations and assets at this time.
39
42
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
31 December
2014
30 June
2014
$'000
$'000
Note 3: Expenses
Note 3A: Employee Benefits
411
684
Superannuation - Defined Contribution Plans
54
113
Leave and other entitlements
23
Wages and salaries
Termination payments
Total employee benefits
39
681
-
1,169
836
Note 3B: Suppliers
Goods and services supplied or rendered
Consultants
72
155
Contractors
409
552
481
707
Total goods and services supplied or rendered
Goods supplied and services rendered in connection with
External parties - goods supplied
238
96
External parties - services rendered
243
611
481
707
Total goods and services supplied or rendered
Other suppliers
Operating lease rentals in connection with external parties
72
141
Cost of goods - developed land
324
532
Municipal rates
180
289
Minimum lease payments
Workers compensation expenses
Total other suppliers
Total suppliers
11
10
587
972
1,068
1,679
12
35
12
35
Note 3C: Depreciation
Depreciation:
Plant, equipment and vehicles
Total depreciation
40
43
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
31 December
2014
30 June
2014
$'000
$'000
Note 3: Expenses
Note 3D: Losses from Asset Sales
Assets held for sale:
Proceeds from sale
-
(660)
Carrying value of asset sold
-
967
Selling expense
-
18
-
325
Total (gains)/losses from asset sales
Note 3E: Write-Down and impairment of Assets
Asset write-downs and impairments from
-
108
-
108
Environmental land grants
-
36
Total other expenses
-
36
Investments in Associates
Total write-down and impairment of assets
Note 3F: Other Expenses
Note 4: Own-Source Income
Own-Source Revenue
Note 4A: Sale of Goods
Sale of goods to external parties
801
1,426
Total sale of goods
801
1,426
Note 4B: Interest
Interest on extended terms contracts
-
123
Interest on invested funds
256
443
Total interest
256
566
Note 4C: Rental Income:
Operating lease:
157
237
157
237
Other
16
70
Total royalties
16
70
Rented rural properties
Total rental income
Note 4D: Royalties
41
44
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
31 December
2014
30 June
2014
$'000
$'000
Gains
Note 4F: Gains from Sale of Assets
Assets held for sale:
Proceeds from sale
Carrying value of assets sold
Selling expense
4,664
7,278
(4,367)
(6,995)
(169)
(201)
Plant and Equipment:
Proceeds from sale
Carrying value of assets sold
48
54
(47)
(44)
-
-
129
92
Changes in revaluation reserves
131
198
Total other comprehensive income
131
198
Selling expense
Total gain from sale of assets
Note 5: Other Comprehensive Income
The Balance Sheet includes all undeveloped land assets at current valuation (fair value) in accordance with the
Revaluation Policy stated in Note 1.18. The net change in the valuation of land assets owned by the Corporation
has been brought to account as other comprehensive Income.
Note 6: Fair Value Measurements
The following tables provide an analysis of assets and liabilities measured at fair value.
The different levels of the fair value hierarchy are defied below.
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Corporation can access at
measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly.
Level 3: Unobservable inputs for the asset or liability.
42
45
46
43,459
Total fair value measurements of assets in the statement of financial
-
-
-
-
-
$'000
There were no transfers between Level 1 and Level 2 fair value during the period to 31 December 2014 (30 June 2014: nil).
Note 6B: Level 1 and Level 2 Transfers for Recurring Fair Value Measurements
The highest and best use of all non-financial assets are the same as their current use.
Fair value measurements - highest and best use differs from current use for non-financial assets (NFAs)
position
43,459
Total non-financial assets
5
1,484
Other property, plant and equipment
41,970
Assets held for sale
$'000
Land and Buildings
Non-financial assets
Fair value Level 1 inputs
43,459
43,459
5
1,484
41,970
$'000
Level 2 inputs
reporting period using
-
-
-
-
-
$'000
Level 3 inputs
Fair value measurements at the end of the
Fair value measurements at the end of the reporting period by hierarchy for assets and liabilities in the period ended 31 December 2014
Note 6A: Fair Value Measurements
for the period 1 July 2014 to 31 December 2014
Notes to and forming part of the Financial Statements
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
43
AWDC FINAL ANNUAL REPORT 2014-15
Level 2
Level 2
Land and buildings (assets not ready for sale)
Other property, plant & equipment
2. Significant unobservable inputs only. Not applicable for assets or liabilities in the Level 2 category.
1. No change in valuation technique occurred during the period.
Level 2
Assets held for sale
Non-financial assets
2 or Level 3)
Category (Level
5
1,484
41,970
$'000
Fair value
Remaining useful
lives of assets
Replacement cost
of similar assets
appreciation rate
Long-term land
Land size
Sale prices of
comparable land
Market
comparables
appreciation rate
Long-term land
Land size
Sale prices of
comparable land
Market
Inputs used
comparables
Valuation
technique(s)1
Level 2 and 3 fair value measurements - valuation techniques and the inputs used for assets and liabilities in the period ended 31 December 2014
Note 6C: Valuation Techniques and Inputs for Level 2 and Level 3 Fair Value Measurements
for the period 1 July 2014 to 31 December 2014
Notes to and forming part of the Financial Statements
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
44
N/A
N/A
N/A
(weighted
average)2
AWDC FINAL ANNUAL REPORT 2014-15
47
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
31 December
2014
30 June
2014
$'000
$'000
Note 7: Financial Assets
Note 7A: Cash and Cash Equivalents
Cash on hand or on deposit
2,629
14,672
Total cash and cash equivalents
2,629
14,672
In addition to the cash held at bank and on hand, the Corporation held bank undertakings amounting to $200,000
(30 June 2014: $200,000) as security for rectification works by a tenant using a leased asset.
Note 7B: Trade and Other Receivables
Goods and Services:
Goods and services in connection with external parties
Total goods and services receivables
4
65
4
65
Other receivables:
GST receivable from the Australian Taxation Office
-
FBT receivable from the Australian Taxation Office
Receivable from Wodonga City Council for share of JV proceeds
Total other receivables
Total trade and other receivables (gross)
6
-
91
-
97
-
101
65
Receivables are shown at the gross amount. No allowance has been made for impairment because all debts are
considered to be fully collectible.
Trade and other receivables (net) are expected to be recovered
No more than 12 months
Total trade and other receivables (net)
101
65
101
65
100
59
Trade and other receivables (gross) aged as follows
Not overdue
Overdue by:
0 to 30 days
-
2
31 to 60 days
-
2
61 to 90 days
-
Total trade and other receivables (gross)
1
1
1
101
65
More than 90 days
Goods and services receivable was with entities external to the Australian Government. Credit terms are net
28 days (30 June 2014: 28 days).
45
48
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
31 December
2014
30 June
2014
$'000
$'000
Note 7: Financial Assets
Note 7C: Investments Accounted for Using the Equity Method
Investments in associates:
-
Hume Gardens
Thurgoona Industrial Estate
Baranduda Enterprise Park
Total equity accounted investments (gross)
976
5,376
5,364
2,161
2,261
7,537
8,601
Less impairment allowance account:
Investments accounted for using the equity method
Total impairment allowance account
Total equity accounted investments (net)
(1,413)
(1,413)
(1,413)
(1,413)
6,124
7,188
Investments in equity accounted investments are expected to be recovered
No more than 12 months
More than 12 months
Total equity accounted investments
6,124
1,094
-
6,094
6,124
7,188
Details of investments accounted for using the equity method
Ownership
31 December
30 June
2014
2014
Name of entity
Principal activity
%
%
Associates:
Hume Gardens Estate
Residential land sales
0.0%
86.9%
Thurgoona Industrial Estate
Industrial land sales
86.8%
86.6%
Baranduda Industrial Estate
Industrial land sales
77.8%
77.6%
31 December
2014
30 June
2014
$'000
$'000
8,983
10,303
Summarised financial information of associates:
Balance sheet:
Assets
Liabilities
Net Assets
(13)
(73)
8,970
10,230
Statement of comprehensive income:
Revenues
830
1,623
Expenses
(707)
(1,423)
123
200
89
174
89
174
Net surplus
Share of associates' net surplus:
Share of net surplus before tax
Share of associates' net surplus after tax
Cash distributions (equity returns) received from associates $1,107,550 (30 June 2014: $1,281,602).
46
49
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
Note 7: Financial Assets
Note 7C: Investments Accounted for Using the Equity Method
Reconciliation of the Impairment Allowance
Movements in relation to the six month period to 31 December 2014
Equity based
Opening Balance
Amounts created - potential shortfall in recovery of book value
Closing Balance
Investments
Total
$'000
$'000
(1,413)
(1,413)
(1,413)
(1,413)
Movements in relation to the twelve month period to 30 June 2014
Equity based
Investments
Opening Balance
Amounts created - potential shortfall in recovery of book value
Closing Balance
Total
$'000
$'000
(1,305)
(1,305)
(108)
(108)
(1,413)
(1,413)
47
50
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
31 December
2014
30 June
2014
$'000
$'000
1,759
1,646
Note 8: Non-Financial Assets
Note 8A: Inventories
Inventories held for sale:
Finished goods - residential lots (at cost)
Finished goods - industrial lots (at cost)
Total inventories
896
896
2,655
2,542
During the period ended 31 December 2014, $324,000 of inventory held for sale was recognised as an expense
(2014: $532,000). No items of inventory are recognised at fair value less cost to sell.
Inventories are expected to be recovered
No more than 12 months
2,655
453
-
2,089
2,655
2,542
Land at fair value
1,484
1,484
Total Land
1,484
1,484
More than 12 months
Total inventories held for sale
Note 8B: Land and Buildings
Leasehold improvements:
Fair value
Accumulated depreciation
17
17
(17)
(17)
Total leasehold improvements
Total land and buildings
-
-
1,484
1,484
No indicators of impairment were found for land and buildings.
Various parcels of land will be transferred to assets held for sale within the next 12 months. The final value of
such transfers will depend on completion of surveys, fencing and preparation works on selected parcels.
48
51
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
31 December
2014
30 June
2014
$'000
$'000
Note 8: Non-Financial Assets
Note 8C: Plant and Equipment
Plant and equipment:
Fair value
Accumulated depreciation
Total plant and equipment
169
242
(164)
(179)
5
63
41,970
46,206
41,970
46,206
No indicators of impairment were found for plant and equipment
Note 8D: Assets held for sale
Undeveloped land:
Fair value
Total assets held for sale
Asset held for sale include:
a) Parcels of land which have been fully prepared and are being actively marketed and are ready for sale within
the next 12 months or later.
b) Specific parcels which are subject to exchanged legal contracts, but with payment still to be received. These
have not been brought to account as sales, due to conditions applied under the Revenue Recognition Policy
outlined in Note 1.5. $805,000 (2014: $3,237,030).
Note 8E: Other Non-Financial Assets
Deposit paid for Thurgoona infrastructure construction
Total other non-financial assets
116
-
116
-
Total other non-financial assets - are expected to be recovered in:
No more than 12 months
Total other non-financial assets
116
-
116
-
No indicators of impairment were found for other non-financial assets.
Revaluations of non-financial assets
Property owned by the Corporation is situated in both New South Wales and Victoria and is classified as either Land and
Buildings or Assets held for Sale. A valuation of all such land holdings was carried out at 30 June 2014 in accordance with
the revaluation policy stated at Note 1.18.
These valuers also act as representatives of either the Valuer Generals Office, in New South Wales or Victoria as required.
Revaluation increments include $0 for land and buildings (30 June 2014: increment $7,000) and $0 for land classified as
assets held for sale (30 June 2014: increment $191,000).
49
52
Total as at 31 December 2014
Accumulated depreciation and impairment
Gross book value
Total as at 31 December 2014 represented by
1,484
-
17
(17)
-
-
1,484
1,484
-
-
Other - transfer to Assets Held for Sale
Total as at 31 December 2014
-
-
-
-
Depreciation expense
Accumulated depreciation on disposals
-
-
Revaluations recognised in other comprehensive income
Disposals by sale
-
-
Additions by purchase
-
17
(17)
1,484
1,484
Total as at 1 July 2014
Accumulated depreciation and impairment
Gross book value
As at 1 July 2014
$'000
Land
$'000
Leasehold
Improvements
Undeveloped
1,484
(17)
1,501
1,484
-
-
-
-
-
-
1,484
(17)
1,501
$'000
Buildings
and
Total Land
and
Plant
5
(165)
170
5
-
(72)
26
(12)
-
-
63
(179)
242
$'000
Equipment
Note 8F: - Reconciliation of the Opening and Closing Balances of Property Plant and Equipment for the six month period to 31 December 2014
for the period 1 July 2014 to 31 December 2014
Notes to and forming part of the Financial Statements
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
1,489
(182)
1,671
1,489
-
(72)
26
(12)
-
-
1,547
(196)
1,743
$'000
Total
50
AWDC FINAL ANNUAL REPORT 2014-15
53
54
1,484
Total as at 30 June 2014 represented by
Gross book value
Accumulated depreciation and impairment
1,484
1,484
Disposals by sale
Total as at 30 June 2014
-
Accumulated depreciation for disposals
(250)
-
Depreciation expense
Other - transfer to Assets Held for Sale
7
-
(17)
17
-
-
-
-
-
-
-
(17)
17
$'000
-
Additions by purchase
Total as at 30 June 2014 represented by
Leasehold
Improvements
1,727
-
1,727
Revaluations recognised in other comprehensive income
Total as at 1 July 2013
Accumulated depreciation and impairment
Gross book value
As at 1 July 2013
$'000
Land
Undeveloped
1,484
(17)
1,501
1,484
(250)
-
-
-
7
-
1,727
(17)
1,744
63
(179)
242
63
-
(74)
30
(35)
-
39
103
(174)
277
$'000
Equipment
Buildings
$'000
and
Plant
and
Total Land
Note 8F: (cont'd) - Reconciliation of the Opening and Closing Balances of Property Plant and Equipment for the twelve month period to 30 June 2014
for the period 1 July 2014 to 31 December 2014
Notes to and forming part of the Financial Statements
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
1,547
(196)
1,743
1,547
(250)
(74)
30
(35)
7
39
1,830
(191)
2,021
$'000
Total
51
AWDC FINAL ANNUAL REPORT 2014-15
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
31 December
2014
30 June
2014
$'000
$'000
Developer headworks - credit offsets
109
109
Total assets under construction - land preparation
109
109
109
19
Note 9: Assets Under Construction
Note 9A: Land preparation
Developer Credit offsets are recorded at fair value and represent both water supply and
sewerage infrastructure provided to the City of Albury.
Assets under construction are expected to be recovered
No more than 12 months
More than 12 months
Total assets under construction - land preparation
109
90
109
No indicators of impairment were found for assets under construction.
52
55
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
31 December
2014
30 June
2014
$'000
$'000
Note 10: Payables
Note 10A: Suppliers
Trade creditors and accruals
2
159
Total suppliers
2
159
Suppliers are expected to be settled within 12 months
2
159
Total suppliers
2
159
Settlement was usually made within 30 days.
All supplier payables are in connection with external parties.
Note 10B: Grants
Public sector:
State, Territory and Local Governments
17
40
Total grants
17
40
Grants are expected to be settled
No more than 12 months
Total grants
17
40
17
40
The grants liability relates to Corporation land that will be preserved for environmental purposes after
transfer to the NSW Government. The liability has been raised to cover maintenance and capital
related outlays for a period of 10 years based on a formula negotiated with the recipient.
The release of the identified lands and associated grants funding is protected by security of purpose
conditions incorporated in a deed of agreement between the Corporation and the NSW Government.
Note 10C: Other Payables
1
Salaries & wages
GST payable to ATO
-
Security and other contract deposits
-
Total other payables
33
35
36
1
104
Other payables are expected to be settled
No more than 12 months
Total other payables
1
104
1
104
53
56
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
31 December
2014
30 June
2014
$'000
$'000
Leave
-
483
Total employee provisions
-
483
No more than 12 months
-
450
More than 12 months
-
33
-
483
Note 11: Provisions
Note 11A: Employee Provisions
Employee provisions are expected to be settled
Total employee provisions
Note 11B: Other Provisions
Provision for restoration obligations
18
18
Total other provisions
18
18
Other provisions are expected to be settled
No more than 12 months
18
More than 12 months
-
18
18
18
Total other provisions
-
Provision for
As at 1 July 2014
restoration
Total
$'000
$'000
18
Total as at 31 December 2014
18
-
-
18
18
Additional provisions made
The Corporation has 1 agreement (30 June 2014: 1) for the leasing of premises which includes a provision requiring the
Corporation to restore the premises to their original condition at the conclusion of the lease. The Corporation has
made a provision to reflect the expected present value of this obligation.
54
57
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
31 December
2014
30 June
2014
$'000
$'000
Cash Flow Statement
2,629
14,672
Statement of financial position
2,629
14,672
-
-
Note 12: Cash Flow Reconciliation
Reconciliation of cash and cash equivalents as per statement of financial position
to cash flow statement
Cash and cash equivalents as per:
Discrepancy
Reconciliation of net cost of services to net cash from / (used by) operating activities
Net (cost of) services
(801)
(454)
Adjustments for non-cash items
12
35
(129)
233
Share of surplus from joint ventures
(89)
(174)
Impairment of assets
-
Depreciation
Net (Gain)/Loss on disposal of assets
108
Movements in assets and liabilities:
Assets
Decrease in Receivables
55
55
Decrease in Inventories
324
531
(116)
1,088
(251)
(10)
(32)
43
(Increase)/Decrease in Other Assets
Liabilities
(Decrease) in Suppliers
(Decrease)/Increase in Other Liabilities
(Decrease)/Increase in Provisions
Net cash (used by) / from operating activities
(483)
48
(1,510)
1,503
55
58
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
31 December
2014
30 June
2014
$
$
118,741
153,947
Note 13: Senior Executive Remuneration
Note 13A: Senior Executive Remuneration Expenses for the Reporting Period
Short-term employee benefits:
Salary
Motor Vehicle and other allowances
Total short-term employee benefits
-
9,769
118,741
163,716
12,126
22,487
12,126
22,487
Post-employment benefits:
Superannuation
Total post-employment benefits
Other long-term benefits:
Annual leave accrued
-
Long-service leave
-
4,607
-
9,115
Total other long-term benefits
4,508
Termination benefits
159,128
-
Total senior executive remuneration expenses
289,995
195,318
Notes:
1. Note 13A is prepared on an accrual basis.
2. Note 13A excludes acting arrangements and part-year service where total remuneration expensed for a senior
executive was less than $195,000.
56
59
60
1
1
1
110,554
1
Bonus paid 5
1
1
149,932
22,487
$
$
Bonus paid 5
-
14,061
vary between financial years due to various factors such as individuals commencing with or leaving the Corporation during the financial year.
5. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may
4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.
reportable remuneration band during the reporting period.
3. The 'contributed superannuation' amount is the average cost to the Corporation for the provision of superannuation benefits to substantive senior executives in that
d) salary sacrificed benefits.
c) exempt foreign employment income; and
b) reportable fringe benefits (at the net amount prior to 'grossing up' for tax purposes);
a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column);
2. 'Reportable salary' includes the following:
individuals in the band.
$
186,480
$
remuneration
$
No.
Executives
Total
reportable
137,304
$
remuneration
Reportable
salary 2
Reportable
allowances 4
14,624
$
Senior
Contributed
superannuation 3
-
1. This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for
Notes:
Total
Less than $195,0000
Total remuneration (including part-time arrangements):
Average annual reportable remuneration
$
Substantive
12,126
$
$
No.
Executives
Average annual reportable remuneration paid to substantive senior executives for the twelve month period to 30 June 2014
Total
Less than $195,0000
Total remuneration (including part-time arrangements):
Average annual reportable remuneration
Total
reportable
Reportable
allowances 4
Senior
Contributed
superannuation 3
Reportable
salary 2
Substantive
Average annual reportable remuneration paid to substantive senior executives for the six month period to 31 December 2014
Note 13B: Average Annual Reportable Remuneration Paid to Substantive Senior Executives during the Reporting Period
for the period 1 July 2014 to 31 December 2014
Notes to and forming part of the Financial Statements
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
57
AWDC FINAL ANNUAL REPORT 2014-15
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
Note 14: Contingent Assets and Liabilities
Land sale contracts
31 December
30 June
2014
2014
$'000
$'000
3,237
8,050
Contingent assets
Balance from previous period
805
3,237
(3,237)
(8,050)
New contingent assets recognised
Assets realised
Total contingent assets
805
3,237
Contingent liabilities
542
Balance from previous period
-
-
New contingent liabilities recognised
542
(542)
Liabilities realised
Total contingent liabilities
-
-
Net contingent assets
542
805
2,695
Quantifiable Contingencies
The Schedule of Contingencies contains $805,000 of contingent assets applicable to sums due under exchanged contracts
for the sale of land assets (30 June 2014: $3237,030). These amounts have not been brought to account as revenue as they
have not met the requirements of the income recognition policy, as outlined in note 1.5.
Unquantifiable Contingencies
The Corporation is not aware of any unquantifiable contingencies (30 June 2014: nil).
Significant Remote Contingencies
The Corporation had no significant remote contingencies (30 June 2014: nil).
Note 15: Members remuneration
Note 15A: Non-executive members remuneration
31 December
2014
30 June
2014
No.
No.
2
2
$0 to $29,999
$30,000 to $59,999
Total number of non-executive members
-
1
2
3
Total remuneration received by members of the Corporation for the period ended 31 December 2014 was $49,334
(30 June 2014: $102,962). Remuneration of executive directors is included in Note 13: Senior Executive Remuneration.
58
61
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
Note 16: Related Party Disclosures
Loans to Members and Member related entities
There were no loans by the Corporation to any members of the Board or their related entities.
Other Transactions with Members or Member-Related Entities
The Corporation provides, as part of a remuneration package, a motor vehicle and other minor benefits to an executive who
is also a member of the Board. The total value of these benefits is included in Note 13: Senior Executive Remuneration.
Note 17: Remuneration of Auditors
31 December
2014
30 June
2014
$'000
$'000
Financial statement audit services
58
58
Total
58
58
Remuneration paid to the Australian National Audit Office (ANAO) for auditing the financial
statements of the Corporation.
Fair value of the services provided
No other services were provided by the ANAO.
Note 18: Financing Arrangements
The Corporation has unrestricted access to a line of credit through a bank overdraft facility,
the details of which are as follows:
Total Overdraft facility available
-
Used facility as at the end of the reporting period
-
-
Unused facility as at the end of the reporting period
-
200
200
59
62
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
Note 19: Financial Instruments
Note 19A: Categories of Financial Instruments
Financial Assets
Loans and receivables:
Cash and cash equivalents
2,629
14,672
101
65
Total loans and receivables
2,730
14,737
Total financial assets
2,730
14,737
2
159
Trade and other receivables
Financial Liabilities
Financial liabiities measured at amortised cost
Suppliers
Grants Payable
17
40
Other Payables
1
104
Total financial liabilities measured at amortised cost
20
303
Total financial liabilities
20
303
Interest revenue
256
566
Net gain from loans and receivables
256
566
Net gain from financial assets
256
566
Note 19B: Net Gains or Losses on Financial Assets
Loans and receivables
Note 19C: Net Gains or Losses on Financial Liabilities
There was no income or expense from financial liabilities - at amortised cost in the period ended 31 December 2014
(30 June 2014: nil).
Note 19D: Fair Value of Financial Instruments
There were no financial instruments held at 31 December where the carrying amount was not a reasonable approximation
of fair value (30 June 2014: nil).
60
63
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
Note 19: Financial Instruments
Note 19E: Credit Risk
The Corporation was exposed to minimal credit risk as loans and receivables were cash and trade receivables. The
maximum exposure to credit risk arises from default by a debtor. This exposure was equal to the total amount of trade
receivables (31 December 2014: $101,000 and 30 June 2014: $65,000).
The Corporation managed its credit risk by use of the following mitigation processes:
a) the use of rental bonds for tenants who lease Corporation property;
b) cash deposits which range from 5% to 10% in respect of land sales contracts which have not been settled; and
b) collateral was also held to mitigate against credit risk as set out in Note 19G.
Credit quality of financial instruments not past due or individually determined as impaired
Not past
Not past
Past due
due nor
due nor
or
Impaired
Impaired
Impaired
31 December
31 December
30 June
2014
2014
2014
$'000
$'000
$'000
Financial Assets
Cash and cash equivalents
2,629
14,672
Trade and Other Receivables
100
59
1
Total
6
14,731
1
6
Ageing of financial assets that were past due but not impaired for 31 December 2014
0 to 30
31 to 60
days
days
$'000
$'000
61 to 90
days
$'000
90+
days
$'000
Total
$'000
1
1
1
1
Trade and other receivables
Total
2,729
Past due
or
Impaired
30 June
2014
$'000
-
-
Ageing of financial assets that were past due but not impaired for 30 June 2014
0 to 30
days
$'000
Trade and other receivables
Total
2
2
-
-
31 to 60
days
$'000
61 to 90
days
$'000
90+
days
$'000
Total
$'000
2
2
1
1
1
1
6
6
61
64
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
Note 19: Financial Instruments
Note 19F: Liquidity Risk
The Corporation did not receive Appropriations from the Australian Government. Consequently it relied on the disposal
of land assets and the sale of developed lots held in inventory to meet its obligations.
Sufficient cash reserves were retained at the end of each financial year to fund operations, after allowing for payment of an
appropriate dividend to the Australian Government.
Management of ongoing liquidity risk is achieved through internal mechanisms and procedures which ensure that there are
sufficient resources available to meet financial obligations as they arise.
Maturities for non-derivative financial liabilities 31 December 2014
within 1
1 to 2
year
years
Total
$'000
$'000
$'000
2
-
2
17
-
17
Trade Creditors
Grants
1
-
1
20
-
20
Other Payables
Total
Maturities for non-derivative financial liabilities 30 June 2014
within 1
1 to 2
year
years
Total
$'000
$'000
$'000
159
-
40
-
40
Other Payables
104
-
104
Total
303
-
303
Trade Creditors
Grants
159
There were no derivative financial liabilities held by the Corporation at 31 December (30 June 2014: nil).
31 December
2014
30 June
2014
$'000
$'000
Note: 19G Assets Held as Collateral
Fair value of assets held as collateral:
Financial assets
-
Trade and Other Receivables (i)
Investments accounted for under the equity method (ii)
8,471
200
200
8,605
8,686
Bank Guarantees from tenants (iii)
Total assets held as collateral
15
8,405
(i) Deposits and land titles held for sales contracts which were in the process of being settled.
(ii) Market value of land titles held in respect of developed lots being marketed by associates (Note 7c). Release of title by the
Corporation or its nominated legal representative is dependent on settlement by a cheque from an Authorised Deposit Taking
Institution (ADI) on or before the due date.
(iii) A Deed of Guarantee is held as security for future rectification works by a tenant who is using a property leased from the
Corporation for business purposes.
62
65
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
Note 19: Financial Instruments
Note 19H: Market Risk
Interest rate risk
The Corporation held basic financial instruments which did not expose it to significant market risks.
The basic financial instruments held by the Corporation are not exposed to 'Currency risk' or 'Other price risk' and exposure to
interest rate risk is considered to be low.
31 December
2014
30 June
2014
$'000
$'000
Note 20: Financial Assets Reconciliation
Financial assets
Total Financial assets as per balance sheet
8,854
21,925
6,124
7,188
Less: non-financial instrument components:
Investments accounted for under the equity method
-
-
Total non-financial instrument components
6,124
7,188
Total financial assets as per financial instruments note
2,730
14,737
Other Receivables
Note 21: Compensation and Debt Relief
There were no 'Act of Grace' payments incurred or paid or waivers of amounts owing during the reporting period (30 June 2014: nil).
63
66
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
Note 22: Reporting of Outcomes
The Corporation carried out commercial activities and was structured to meet one outcome. All costs and income are attributed to
this single outcome in the tables set out below.
Note 22A: Net Cost of Outcome Delivery
Outcome 1
Total
31 December
2014
30 June
2014
31 December
2014
30 June
2014
$'000
$'000
$'000
$'000
(2,249)
(3,019)
(2,249)
(3,019)
1,359
2,391
1,359
2,391
(890)
(628)
(890)
(628)
Commercial Activities
Expenses
Own-source income
Net (cost)/contribution of outcome delivery
64
67
AWDC FINAL ANNUAL REPORT 2014-15
Albury-Wodonga Development Corporation trading as:
Albury-Wodonga Corporation
Notes to and forming part of the Financial Statements
for the period 1 July 2014 to 31 December 2014
Note 22B: Major Classes of Expenses, Income, Assets and Liabilities by Outcome
Outcome 1
Total
31 December
2014
30 June
2014
31 December
2014
30 June
2014
$'000
$'000
$'000
$'000
Expenses:
Employee expenses
1,169
836
1,169
836
Supplier expenses
1,068
1,679
1,068
1,679
Depreciation
12
Losses from asset sales
-
325
-
Write-down and impairment of assets
Other expenses
Total
35
12
35
-
325
108
-
108
36
-
36
2,249
3,019
2,249
3,019
Sale of Goods
801
1,426
801
1,426
Interest
256
566
256
566
Rentals
157
237
157
237
16
70
16
70
129
92
129
92
1,359
2,391
1,359
2,391
2,629
14,672
2,629
14,672
101
65
101
65
6,124
7,188
6,124
7,188
Income:
Royalties & other
Gains from sale of assets
Total
Assets
Cash and cash equivalents
Trade and other receivables
Investments
Inventories
Land & assets held for sale
Other non-financial assets
Total
2,655
2,542
2,655
2,542
43,454
47,690
43,454
47,690
230
172
230
172
55,193
72,329
55,193
72,329
Liabilities
Provisions
18
501
18
501
Suppliers
2
159
2
159
17
40
17
40
1
104
1
104
38
804
38
804
Grants
Other payables
Total
Outcome 1 is described in Note 1.1
65
68
AWDC FINAL ANNUAL REPORT 2014-15
69
AWDC FINAL ANNUAL REPORT 2014-15
Glossary
Albury-Wodonga Area Development
Winding-up Agreement – an agreement
entered into by the Australian, NSW and
Victorian governments to terminate the
Albury-Wodonga Area Development
Agreement, the Commonwealth/State
agreement scheduled to the Commonwealth
Albury-Wodonga Development Act 1973,
the NSW Albury-Wodonga Development
Act 1974 and the Victorian Albury-Wodonga
Agreement Act 1973.
Albury-Wodonga Corporation – trading
name of the Albury-Wodonga Development
Corporation in recognition of the fact that
the Corporation was withdrawing from
development activities.
Annual Operational Plan – a plan for
the financial year, setting out strategies,
activities and resources to give effect to the
Winding-up Plan.
Corporate governance – the process
by which an organisation is directed and
controlled.
Customer service charter – a public
statement about the service an organisation
will provide and what customers can expect
from that organisation.
Ecologically sustainable
development – using, conserving and
enhancing the community’s resources
so that ecological processes, on which
life depends, are maintained, and the
total quality of life, now and in the future
can be increased. (National Strategy for
70
Ecologically Sustainable Development,
Council of Australian Governments, 1992).
Englobo land – land ready for subdivision
and development.
Enterprise agreement – a collective
agreement made directly between an
employer and a group of employees, or
between an employer and a union or unions
representing employees.
Environmental land – land identified in the
threatened species conservation strategies
commissioned by the Corporation and other
activities to be retained in public ownership
by transfer to State and local governments.
Exchange of contracts – the point at
which a contract of sale is executed by both
parties and the vendor is legally bound to
sell the subject property to the purchaser
and the purchaser is legally bound to
purchase it at the contract price.
Ha – hectare(s)
Information Publication Scheme
(IPS) – a scheme established by Part 2 of
the Freedom of Information Act, 1982. The
IPS requires agencies to publish a broad
range of information on their website and
to prepare and publish an Agency Plan that
explains how they intend to implement the
IPS.
Land bank – all land assets owned by the
Albury-Wodonga Development Corporation,
and now transferred to the Department of
Finance
AWDC FINAL ANNUAL REPORT 2014-15
Sale – for the purposes of this document, a
sale is constituted when settlement occurs.
Settlement – occurs when the sale of
a property is completed and the vendor
receives the balance of the purchase
monies owing and delivers the original
certificate of title and a signed Transfer to
the purchaser.
State corporations – the Albury-Wodonga
(NSW) Corporation and the
Albury-Wodonga (Victoria) Corporation.
State government statutory authorities
established for the purposes of land
acquisition, management and disposal in
the respective states until dissolved in 2004.
Winding-up Plan – sets out the manner in
which the Corporation proposes to perform
its functions leading to its ultimate
winding-up.
71
AWDC FINAL ANNUAL REPORT 2014-15
Index
72
abolition, 2–3
acknowledgements, 2-3
activity, core, 9
Agency Plan (information), 23
Albury City Council, 4, 10, 13, 14
Albury Ranges Threatened Species
Conservation Strategy, 15
Albury-Wodonga Agreement (Repeal)
Act 2003, 10
Albury-Wodonga Corporation (trading
name), 6
Albury-Wodonga Development Act 1973,
6, 16
Albury-Wodonga Development Corporation
(Abolition) Act 2014, 4, 8, 13
Albury-Wodonga Development Corporation
(Abolition) Bill 2014, 2, 4, 6–7
Albury Wodonga Development Corporation
Enterprise Agreement 2013-2015, 20
Albury-Wodonga Development Repeal Act
2000, 10
Albury-Wodonga Land Disposal Advisory
Committee, 3, 10, 16, 19
Albury-Wodonga National Growth Centre
Project, 2
Annual Operational Plans, 8, 10
2014-15, 2, 11, 13, 17, 18
archaeological studies, 15
assets, 2, 4, 7, 8, 9, 12, 13, 15
Audit Committee, 18
Charter, 18
audits, 18
Australian National Audit Office, 18
Chairperson’s review, 2–3
Chief Executive Officer’s report, 4–5
code of ethics, 17
Comcare Australia, 23
corporate and operational planning, 17–18
corporate governance, 16–19
cultural heritage investigations, 15–16
customer service charter, 20
Baranduda Enterprise Park, 14
Governance Policy, 16
Department of Finance, 2, 4, 5, 6, 7, 8, 10,
13, 18
documents, categories, 24
Due Diligence process, 8–9, 18
duties, 10
ecologically sustainable development, 14
Environment Protection and Biodiversity
Conservation Act 1999, 15
environmental performance, 14–15
equal employment opportunity, 23
Equal Employment Opportunity
(Commonwealth Employees) Act 1987,
23
Ernst & Young, 18
expenditure, 11
external audits, 18
Final Dividend, 2, 11
financial performance, 11–15
financial statements, 29–68
freedom of information, 23–4
Freedom of Information Act 1982, 23, 24
functions, 7
AWDC FINAL ANNUAL REPORT 2014-15
human resources, 20
Hume Gardens Estate, 4, 13
Hume Gardens Joint Venture Agreement,
13
indemnities, 18–19
industrial lots, 4, 12, 14
Information Publication Scheme (IPS), 23
Register, 24
information services, 19
insurance premiums, 18–19
intergovernmental liaison, 10
internal audits, 18
Johnsons MME Chartered Accountants, 18
judicial decisions and reviews, 10
key performance indicators, 8
land and asset management, 11
land bank, 2, 4, 11, 12, 13, 15
land information, 19
letter of transmittal, iii
liabilities, 2, 8
mapping data, 19
Members of Corporation, iv, 6, 16–17
Minister, iv, 6
mission, 9
National Archives of Australia, 20
New South Wales Office of Environment
and Heritage, 15
performance, 4. see also environmental
performance; financial performance
powers, 9–10
Proclamation, 2, 7
property management functions, 6
Public Governance, Performance and
Accountability Act 2013, 16
receipts, 11
records management, 20
residential lots, 4, 13, 14
responsibilities, 21
returns to government, 11
risk management, 18
role, 6, 21
sales, 13
Seasonal Herbaceous Wetlands
(Freshwater) of the Temperate Lowland
Plains, 15
security of purpose conditions, 8, 15
staff, 6
development and training, 22
numbers, 20
performance appraisal, 22
Statement of Expectation, 7–8
strategies, 15
Thurgoona and Albury Ranges Threatened
Species Conservation Strategies, 15
Thurgoona Industrial Estate, 14
training and development, 22
undeveloped land bank, 4, 11, 12, 13
objectives, 9
organisational structure, 21
Our Commitment to Service, 20
overview, 6–10
vision, 9
Wattle Glen, 4
website, 19
73
AWDC FINAL ANNUAL REPORT 2014-15
weed management, 12
winding-up, 8–9, 18, 20
agreement, 7, 10
plan, 17–18, 24
Wodonga City Council, 4, 10, 14, 15, 19
Wodonga Retained Environmental Network
Strategy, 15
work health and safety, 22–3
Work Health and Safety Act 2011, 22
Yarralumla Rise, 4
74
AWDC FINAL ANNUAL REPORT 2014-15
Index of Annual Report requirements
Commonwealth Authorities (Annual Reporting) Orders 2011
Page number
Enabling legislation
6
Responsible Minister
iv, 6
Ministerial Directions and other statutory requirements
7–8
Information about directors
16–17
Outline of organisational structure and statement of governance
16–21
Related entity transactions
Not applicable
Key activities and changes affecting the authority
4–5, 8–10
Judicial decisions and reviews by outside bodies
10
Information from subsidiaries
Not applicable
Indemnities and insurance premiums of officers
18–19
Disclosure requirements for GBEs
Not applicable
75
AWDC FINAL ANNUAL REPORT 2014-15
76

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