Financials - Department of Planning - NSW Government

Department of Planning Financial Report 

for the year ended 30 June 2007 

CONTENTS 

Independent Auditor’s Report 86 

Statement of Director General 88 

Operating Statement 89 

Statement of Recognised Income and Expenses 90 

Balance Sheet 91 

Cash Flow Statement 92 

Program Statement – expenses and revenues 93 

Summary of compliance with financial directives 94 

Notes to and forming part of the Financial Statements 95

86 Department of Planning Annual Report 2007 – 2008 Financial Statements

Financial Statements Department of Planning Annual Report 2007 – 2008 

87

DEPARTMENT OF PLANNING 

STATEMENT 

OF 

DIRECTOR-GENERAL 

Pursuant to section 45F of the Public Finance and Audit Act 1983, I state that: 

a) The accompanying financial report has been prepared in accordance with: 

• applicable Australian Accounting Standards (which includes Australian 

Accounting Interpretations) 

• the requirements of the Public Finance and Audit Act 1983 and Regulation 

• the financial reporting directions published in the Financial Reporting Code for 

Budget Dependent General Government Sector Agencies or issued by the 

Treasurer under section 9(2) (n) of the Public Finance and Audit Act 1983. 

b) The statements exhibit a true and fair view of the financial position and 

transactions of the Department 

c) There are no circumstances which would render any particulars included in the 

financial statements to be misleading or inaccurate. 

Sam Haddad 

Director-General 

Department of Planning 

15 October 2008 


2 


Operating Statement 


Expenses excluding losses 

Operating expenses 

Notes 

Actual 

2008 

Budget 

2008 

Actual 

2007 

$’000 $’000 $’000 

Employee related 2 53,989 56,663 56,752 

Other operating expenses 3 16,789 13,026 15,495 

Depreciation and amortisation 4 899 1,294 1,453 

Grants and subsidies 5 35,636 47,190 25,249 

Total expenses excluding losses 107,313 118,173 98,949 

Less 

Revenue 

Sale of goods and services 6 40,743 42,037 38,018 

Investment revenue 7 1,252 269 321 

Grants and contributions 8 146 118 942 

Other revenue 9 2,676 1,550 4,647 

Total revenue 44,817 43,974 43,928 

Loss on disposal 10a (1,014) (600) (1,266) 

Other losses 10b – 13 (1,251) 

Net cost of services 25 63,510 73,612 57,538 

Government contributions 

Recurrent appropriation 11 61,490 69,632 58,205 

Capital appropriation 11 2,347 3,164 3,316 

Acceptance by the Crown Entity of employee 

benefits and other liabilities 12 3,915 3,871 3,165 

Total government contributions 67,752 76,667 64,686 

Surplus for the year 4,242 3,055 7,148 

The accompanying notes form part of these financial statements. 


89

3 


Statement of Recognised Income and Expense 


Notes 

Actual 

2008 

Budget 

2008 

Actual 

2007 

$’000 $’000 $’000 

Total income and expense recognised directly in 

equity 22 (1,873) – 37 

Surplus for the year 4,242 3,055 7,148 

Total income and expense recognised for the 

year 21 2,369 3,055 7,185 



4 


Balance Sheet 

as at 30 June 2008 

ASSETS 

Notes 

Actual Budget 

Actual 

2008 

2008 

2007 

$’000 $’000 $’000 

Current assets 

Cash and cash equivalents 14 11,772 18,147 18,016 

Receivables 15 5,336 5,695 5,395 

Total current assets 17,108 23,842 23,411 

Non-current assets 

Receivables 15 710 691 691 

Property, plant and equipment 

– Land 16 24,282 27,880 24,880 

– Plant and equipment 16 5,577 6,325 6,197 

Total property, plant and equipment 29,859 34,205 31,077 

Intangible assets 17 678 304 962 

Total non-current assets 31,247 35,200 32,730 

Total assets 48,355 59,042 56,141 

LIABILITIES 

Current liabilities 

Payables 19 9,747 19,584 19,584 

Provisions 20 6,157 5,480 5,634 

Total current liabilities 15,904 25,064 25,218 

Non-current liabilities 

Provisions 20 46 887 887 

Total non-current liabilities 46 887 887 

Total liabilities 15,950 25,951 26,105 

Net assets 32,405 33,091 30,036 

EQUITY 

Accumulated funds 21 32,405 33,091 30,036 

Total equity 32,405 33,091 30,036 



91

5 


Cash Flow Statement 


Notes 

Actual Budget 

Actual 

2008 

2008 

2007 

$’000 $’000 $’000 

Cash flows from operating activities 

Payments 

Employee-related (50,087) (52,946) (46,630) 

Grants and subsidies (34,926) (42,156) (24,240) 

Other (20,390) (18,360) (24,840) 

Total payments (105,403) (113,462) (95,710) 

Receipts 

Sale of goods and services 41,489 42,024 42,623 

Interest received 820 269 81 

Other 2,659 1,668 3,066 

Total receipts 44,968 43,961 45,770 

Cash flows from Government 

Recurrent appropriation 53,724 69,632 66,113 

Capital appropriation 2,347 3,164 3,316 

Net cash flows from Government 56,071 72,796 69,429 

Net cash flows from operating activities 25 (4,364) 3,295 19,489 

Cash flows from investing activities 

Proceeds from sale of property, plant and equipment 550 600 – 

Purchases of property, plant and equipment (2,430) (3,764) (2,425) 

Purchase of non-current assets – intangibles – – (917) 

Other – (1,043) 

Net cash flows from investing activities (1,880) (3,164) (4,385) 

Net increase / (decrease) in cash (6,244) 131 15,104 

Opening cash and cash equivalents 18,016 874 2,912 

Closing cash and cash equivalents 14 11,772 1,005 18,016 



6 


Supplementary financial statements 

Program Statement – expenses and revenues for the year ended 30 June 2008 

Strategy and policy 

development* 

Major development 

assessment and 

strategy 

Heritage planning 

and policy* 

Personnel 

services 

Not attributable** Total 

EXPENSES AND REVENUES 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 

Expenses excluding losses 

Operating expenses 

Employee related 14,291 13,243 28,379 33,407 4,096 4,081 7,223 6,021 – – 53,989 56,752 

Other operating expenses 5,985 2,820 9,395 10,940 1,409 1,735 – – 

– – 

16,789 15,495 

– – 

Depreciation and amortisation 318 144 155 899 426 410 – – 

899 1,453 

Grants and subsidies – 8,382 32,927 14,089 2,709 2,778 – – – – 35,636 25,249 

Total expenses excluding Losses 20,594 24,589 70,856 59,335 8,640 9,004 7,223 6,021 – – 107,313 98,949 

Revenue 

Sale of goods and services 12,178 16,476 21,312 15,471 30 50 7,223 6,021 

– – 

Investment income 591 285 592 12 69 24 – – 

– – 

Grants and contributions – – – 706 146 236 – – 

– – 

Other revenue 1,273 3,968 1,273 255 130 424 

– – – – 

40,743 38,018 

1,252 321 

146 942 

2,676 4,647 

Total revenue 14,042 20,729 23,177 16,444 375 734 7,223 6,021 – – 44,817 43,928 

Loss on disposal of non-current assets (475) – (476) (1,266) (63) – 

– – – – 

(1,014) (2,517) 

Other gains/losses – – – (1,251) – – 

– – – – 

– – 

Net cost of services (7,027) (3,860) (48,155) (45,408) (8,328) (8,270) – – – – (63,510) (57,538) 

Government contributions** 

– – – – – – – – 

67,752 64,686 67,752 64,686 

Net expenditure / (revenue) for the 

year 7,027 3,860 48,155 45,408 8,328 8,270 – – (67,752) (64,686) (4,242) (7,148) 

* The name and purpose of each program is summarised in Note 13. 

** Appropriations are made on an agency basis and not to individual programs. Consequently, government contributions must be included in the “Not Attributable” column. 


93

7 


Recurrent 

appropriation 

Expenditure/ 

net claim on 

consolidated 

fund 

Supplementary financial statements 

Summary of Compliance with Financial Directives 

2008 2007 

Capital 

appropriation 

Expenditure/ 

net claim on 

consolidated 

fund 

Recurrent 

appropriation 

Expenditure/ 

net claim on 

consolidated 

fund 

Capital 

appropriation 

Expenditure/ 

net claim on 

consolidated 

fund 

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 

Original budget 

appropriation/ expenditure 

Appropriation Act 69,632 56,038 3,164 2,347 65,786 56,599 4,164 3,316 

Additional (reduction in) 

appropriations (5,580) – – – – – – – 

S24 PF&AA – transfer of 

function between 

departments 

– to Ministry of Transport – – – – (1,279) – – – 

– to Department of Water & 

Energy (220) – – – – – – – 

63,832 56,038 3,164 2,347 64,507 56,599 4,164 3,316 

Other appropriations/ 

expenditure 

Treasurer's advance 4,500 4,500 – – 1,500 1,500 – – 

S32 – transfers from 

another Agency – 

Department of Commerce (6,722) 952 – – – – – – 

S27 – transfers from 

another agency – – – – 106 106 – – 

(2,222) 5,452 – – 1,606 1,606 – – 

Total appropriations/net claim 

on consolidated fund 

(includes transfer payments) 61,610 61,490 3,164 2,347 66,113 58,205 4,164 3,316 

Amount drawn down against 

appropriation 61,610 2,347 66,113 3,316 

Liability to consolidated fund* 120 – 7,908 – 

The Summary of Compliance is based on the assumption that consolidated fund moneys are spent first (except where otherwise identified or prescribed). 

* This liability represents the difference between the “Amount drawn down against appropriation” and the “Total Expenditure/Net Claim on Consolidated Fund”. 


8 


Notes to and forming part of the Financial Statements for the year ended 30 June 2008 

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

(a) 

Reporting entity 

The Department of Planning is a NSW Government department. The Department is a not-for-profit 

entity (as profit is not its principal objective) and it has no cash generating units. The reporting 

entity is consolidated as part of the NSW Total State Sector Accounts. 

This financial report has been authorised for issue by the Director-General on 15 October 2008. 

(b) 

Basis of preparation 

The agency’s financial report is a general purpose financial report which has been prepared in 

accordance with: 

• applicable Australian Accounting Standards (which includes Australian Accounting 

Interpretations) 

• the requirements of the Public Finance and Audit Act 1983 and Regulation 

• the Financial Reporting Directions published in the Financial Reporting Code for Budget 

Dependent General Government Sector Agencies or issued by the Treasurer under section 

9(2) (n) of the Public Finance and Audit Act 1983. 

Property, plant and equipment, investment property, assets (or disposal groups) held for sale and 

financial assets held for trading and available for sale are measured at fair value. Other financial 

report items are prepared in accordance with the historical cost convention. 

Judgements, key assumptions and estimations management has made are disclosed in the 

relevant notes to the financial report. 

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian 

currency. 

(c) 

Income recognition 

Income is measured at the fair value of the consideration or contribution received or receivable. 

Additional comments regarding the accounting policies for the recognition of income are discussed 

below. 

(i) 

Parliamentary appropriations and contributions 

Parliamentary appropriations and contributions from other bodies (including grants and 

donations) are generally recognised as income when the agency obtains control over the 

assets comprising the appropriations and contributions. Control over appropriations and 

contributions is normally obtained upon the receipt of cash. 

An exception to the above is when appropriations are unspent at year end. In this case, the 

authority to spend the money lapses and generally the unspent amount must be repaid to the 

Consolidated Fund in the following financial year. As a result, unspent appropriations are 

accounted for as liabilities rather than revenue. The liabilities disclosed in Note 19 as part of 

current liability. The liability will be to the Crown, to be extinguished next financial year. 

(ii) Sale of goods and rendering of services 

Revenue from the sale of goods is recognised as revenue when the agency transfers the 

significant risks and rewards of ownership of the assets. 

Revenue is recognised when the service is provided or by reference to the stage of 

completion (based on labour hours incurred to date). 

(iii) Investment revenue 

Interest revenue is recognised using the effective interest method as set out in AASB 139 

Financial Instruments: Recognition and Measurement. Rental revenue is recognised in 

accordance with AASB 117 Leases on a straight-line basis over the lease term. 


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9 



1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 

(d) 

Employee benefits and other provisions 

(i) 

Salaries and wages, annual leave, sick leave and on-costs 

Liabilities for salaries and wages (including non-monetary benefits), annual leave and paid 

sick leave that fall due wholly within 12 months of the reporting date are recognised and 

measured in respect of employees’ services up to the reporting date at undiscounted amounts 

based on the amounts expected to be paid when the liabilities are settled. 

Long-term annual leave that is not expected to be taken within twelve months is measured at 

present value in accordance with AASB 119 Employee benefits. Market yields on government 

bonds of 6.45 per cent are used to discount long-term annual leave. 

Unused non-vesting sick leave does not give rise to a liability as it is not considered probable 

that sick leave taken in the future will be greater than the benefits accrued in the future. 

The outstanding amounts of payroll tax, workers’ compensation insurance premiums and 

fringe benefits tax, which are consequential to employment, are recognised as liabilities and 

expenses where the employee benefits to which they relate have been recognised. 

(ii) Long service leave and superannuation 

The agency’s liabilities for long service leave and superannuation are assumed by the Crown 

Entity. The agency accounts for the liability as having been extinguished; resulting in the 

amount assumed being shown as part of the non-monetary revenue item described as 

‘Acceptance by the Crown Entity of employee benefits and other liabilities’. 

Long service leave is measured at present value in accordance with AASB 119 Employee 

Benefits. This is based on the application of certain factors (specified in NSW Treasury 

Circular 07/04) to employees with five or more years of service, using current rates of pay. 

These factors were determined based on an actuarial review to approximate present value. 

The superannuation expense for the financial year is determined by using the formulae as 

specified in treasurer’s Directions. The expense for certain superannuation schemes (i.e. 

Basic Benefit and First State Super) is calculated as a percentage of the employees’ salary. 

For other superannuation schemes (i.e. State Superannuation Scheme and State Authorities 

Superannuation Scheme), the expense is calculated as a multiple of the employees’ 

superannuation contributions. 

(iii) Other provisions 

Other provisions exist when: the agency has a present legal or constructive obligation as a 

result of a past event; it is probable that an outflow of resources will be required to settle the 

obligation; and a reliable estimate can be made of the amount of the obligation. 

Any provisions for restructuring are recognised only when an agency has a detailed formal 

plan and the agency has raised a valid expectation in those affected by the restructuring that it 

will carry out the restructuring by starting to implement the plan or announcing its main 

features to those affected. 

(e) 

(f) 

Insurance 

The agency’s insurance activities are conducted through the NSW Treasury Managed Fund 

Scheme of self insurance for Government agencies. The expense (premium) is determined by the 

Fund Manager based on past experience. 

Accounting for the Goods and Services Tax (GST) 

Revenues, expenses and assets are recognised net of the amount of GST, except where: 

the amount of GST incurred by the agency as a purchaser that is not recoverable from the 

Australian Taxation Office is recognised as part of the cost of acquisition of an asset or as 

part of an item of expense 

receivables and payables are stated with the amount of GST included. 

Cash flows are included in the cash flow statement on a gross basis. 


10 




(g) 

Acquisitions of assets 

The cost method of accounting is used for the initial recording of all acquisitions of assets 

controlled by the agency. Cost is the amount of cash or cash equivalents paid or the fair value of 

the other consideration given to acquire the asset at the time of its acquisition or construction or, 

where applicable, the amount attributed to that asset when initially recognised in accordance with 

the specific requirements of other Australian Accounting Standards. 

Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value 

at the date of acquisition (see also assets transferred as a result of an equity transfer – Note 1(p). 

Fair value is the amount for which an asset could be exchanged between knowledgeable, willing 

parties in an arm’s length transaction. 

Where payment for an item is deferred beyond normal credit terms, its cost is the cash price 

equivalent, i.e. the deferred payment amount is effectively discounted at an asset-specific rate. 

(h) 

(i) 

Capitalisation thresholds 

Property, plant and equipment and intangible assets costing $5,000 and above individually are 

capitalised. 

Revaluation of property, plant and equipment 

Physical non-current assets are valued in accordance with the “Valuation of Physical Non-Current 

Assets at Fair Value” Policy and Guidelines Paper (NSW Treasury Policy Paper 07-1). This policy 

adopts fair value in accordance with AASB 116 Property, plant and equipment. 

Property, plant and equipment is measured on an existing use basis, where there are no feasible 

alternative uses in the existing natural, legal, financial and socio-political environment. However, in 

the limited circumstances where there are feasible alternative uses, assets are valued at their 

highest and best use. 

Fair value of property, plant and equipment is determined based on the best available market 

evidence, including current market selling prices for the same or similar assets. Where there is no 

available market evidence, the asset’s fair value is measured at its market buying price, the best 

indicator of which is depreciated replacement cost. 

The agency revalues each class of property, plant and equipment at least every five years or with 

sufficient regularity to ensure that the carrying amount of each asset in the class does not differ 

materially from its fair value at reporting date. The last independent revaluation was deemed to 

have occurred on the establishment of the Department on 29 August 2005. Non-specialised assets 

with short useful lives are measured at depreciated historical cost, as a surrogate for fair value. 

When revaluing non-current assets by reference to current prices for assets newer than those 

being revalued (adjusted to reflect the present condition of the assets), the gross amount and the 

related accumulated depreciation are separately restated. 

For other assets, any balances of accumulated depreciation at the revaluation date in respect of 

those assets are credited to the asset accounts to which they relate. The net asset accounts are 

then increased or decreased by the revaluation increments or decrements. 

Revaluation increments are credited directly to the asset revaluation reserve, except that, to the 

extent that an increment reverses a revaluation decrement in respect of that class of asset 

previously recognised as an expense in the surplus / deficit, the increment is recognised 

immediately as revenue in the surplus / deficit. Revaluation decrements are recognised 

immediately as expenses in the surplus/deficit, except that, to the extent that a credit balance 

exists in the asset revaluation reserve in respect of the same class of assets, they are debited 

directly to the asset revaluation reserve. 

As a not-for-profit entity, revaluation increments and decrements are offset against one another 

within a class of non-current assets, but not otherwise. Where an asset that has previously been 

revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that 

asset is transferred to accumulated funds. 


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11 




(j) 

(k) 

Impairment of property, plant and equipment 

As a not-for-profit entity with no cash generating units, the Agency is effectively exempted from 

AASB 136 Impairment of Assets and impairment testing. This is because AASB 136 modifies the 

recoverable amount test to the higher of fair value less costs to sell and depreciated replacement 

cost. This means that, for an asset already measured at fair value, impairment can only arise if 

selling costs are material. Selling costs are regarded as immaterial. 

Depreciation of property, plant and equipment 

Except for certain heritage assets, depreciation is provided for on a straight-line basis for all 

depreciable assets so as to write off the depreciable amount of each asset as it is consumed over 

its useful life to the agency. 

All material separately identifiable components of assets are depreciated over their shorter useful 

lives. 

Depreciation rates for plant and equipment range from 10 per cent to 20 per cent. 

Land is not a depreciable asset. Certain heritage assets have an extremely long useful life, 

including original artworks and collections and heritage buildings. Depreciation for these items 

cannot be reliably measured because the useful life and the net amount to be recovered at the end 

of the useful life cannot be reliably measured. In these cases, depreciation is not recognised. The 

decision not to recognise depreciation for these assets is reviewed annually. 

(l) 

(m) 

Maintenance 

The costs of day-to-day servicing costs or maintenance are charged as expenses as incurred, 

except where they relate to the replacement of a part or component of an asset, in which case the 

costs are capitalised and depreciated. 

Leased assets 

A distinction is made between finance leases which effectively transfer from the lessor to the 

lessee substantially all the risks and benefits incidental to ownership of the leased assets, and 

operating leases under which the lessor effectively retains all such risks and benefits. 

Where a non-current asset is acquired by means of a finance lease, the asset is recognised at its 

fair value at the commencement of the lease term. The corresponding liability is established at the 

same amount. Lease payments are allocated between the principal component and the interest 

expense. 

Operating lease payments are charged to the Operating Statement in the periods in which they are 

incurred. 

(n) 

Intangible assets 

The agency recognises intangible assets only if it is probable that future economic benefits will flow 

to the agency and the cost of the asset can be measured reliably. Intangible assets are measured 

initially at cost. Where an asset is acquired at no or nominal cost, the cost is its fair value as at the 

date of acquisition. 

All research costs are expensed. Development costs are only capitalised when certain criteria are 

met. 

The useful lives of intangible assets are assessed to be finite. Intangible assets are subsequently 

measured at fair value only if there is an active market. As there is no active market for the 

agency’s intangible assets, the assets are carried at cost less any accumulated amortisation. 

The agency’s intangible assets are amortised using the straight line method over periods 

appropriate to the future economic benefit and range between two to five years. 

In general, intangible assets are tested for impairment where an indicator of impairment exists. 

However, as a not-for-profit entity with no cash generating units, the agency is effectively 

exempted from impairment testing (refer paragraph (j). 


12 




(o) 

(p) 

Other assets 

Other assets are recognised on a cost basis. 

Equity transfers 

The transfer of net assets between agencies as a result of an administrative restructure, transfers of 

programs / functions and parts thereof between NSW public sector agencies is designated as a 

contribution by owners and recognised as an adjustment to “Accumulated Funds”. This treatment is 

consistent with Australian Accounting Interpretation 1038 Contributions by Owners Made to Wholly- 

Owned Public Sector Entities. 

Transfers arising from an administrative restructure between government departments are 

recognised at the amount at which the asset was recognised by the transferor government 

department immediately prior to the restructure. In most instances this will approximate fair value. All 

other equity transfers are recognised at fair value. 

(q) 

(r) 

Payables 

These amounts represent liabilities for goods and services provided to the agency and other 

amounts, including interest. Payables are recognised initially at fair value, usually based on the 

transaction cost or face value. Subsequent measurement is at amortised cost using the effective 

interest method. Short-term payables with no stated interest rate are measured at the original 

invoice amount where the effect of discounting is immaterial. 

Receivables 

Receivables are non-derivative financial assets with fixed or determinable payments that are not 

quoted in an active market. These financial assets are recognised initially at fair value, usually based 

on the transaction cost at face value. Subsequent measurement is at amortised cost using the 

effective interest rate method, less any allowance for impairment of receivables. Any changes are 

accounted for in the Operating Statement when impaired, derecognised or through the amortisation 

process. 

Short-term receivables with no stated interest rate are measured at original invoice amount where 

the effect of discounting is immaterial. 

(s) 

Impairment of financial assets 

All financial assets, except those measured at fair value through profit and loss, are subject to an 

annual review for impairment. An allowance for impairment is established when there is objective 

evidence that the entity will not be able to collect all amounts due. 

For financial assets carried at amortised cost, the amount of the allowance is the difference between 

the asset’s carrying amount and the present value of estimated future cash flows, discounted at the 

effective interest rate. The amount of the impairment loss is recognised in the operating statement. 

(t) 

New Australian Accounting Standards issued but not effective 

The following Australian Accounting Standards and Interpretations that have recently been issued or 

amended but are not yet effective and have not been adopted for the annual reporting period ended 

30 June 2008 by the Department. The Department does not anticipate any material impact of these 

new accounting standards on the financial report of the Department. 

AASB 8 and AASB 2007-3 are effective for financial reporting periods commencing on or after 

1 January 2009. AASB 8 will result in a significant change in the approach to segment reporting, as it 

requires adoption of a 'management approach' to reporting on financial performance AASB1049 

Whole of Government and General Government Sector Financial Reporting applies to reporting 

periods beginning on or after 1 July 2008. 

Revised AASB 101 Presentation of Financial Statements and AASB 2007-8 Amendments to 

Australian Accounting Standards arising from AASB 101. A revised AASB 101 was issued in 

September 2007 and is applicable for financial reporting periods beginning on or after 1 January 

2009. 


99

13 



Revised AASB 123 Borrowing Costs and AASB 2007-6 Amendments to Australian Accounting 

Standards arising from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 

138 and Interpretations 1 & 12]. The revised AASB 123 is applicable to financial reporting periods 

commencing on or after 1 January 2009. It has removed the option to expense all borrowing costs 

and - when adopted – will require the capitalisation of all borrowing costs directly attributable to the 

acquisition, construction or production of a qualifying asset. 

(u) 

(v) 

Budgeted amounts 

The budgeted amounts disclosed are as formulated at the beginning of the 2007-08 with any 

adjustments for the effects of additional appropriation bills. 

Comparative information 

Comparative information is disclosed in respect of the previous period for all amounts reported in the 

financial statements, except when AASB requires otherwise. 


14 



2. EXPENSES EXCLUDING LOSSES – EMPLOYEE RELATED EXPENSES 

2008 2007 

$’000 $’000 

Salaries and wages (including recreation leave) 37,092 41,610 

Superannuation – defined benefit plan 1,905 1,488 

Superannuation – defined contribution plan 2,625 2,773 

Long service leave 1,886 1,589 

Workers compensation insurance 41 402 

Payroll tax and fringe benefits tax 2,875 2,745 

Redundancies 342 124 

46,766 50,731 

Personnel services expense provided to other entities 7,223 6,021 

53,989 56,752 

Corporate Services functions were provided free of charge by Corporate Shared Services, 

(Department of Commerce) to the Department and the value of these services cannot be reasonably 

estimated. 

3. EXPENSES EXCLUDING LOSSES – OTHER OPERATING EXPENSES 

Auditor’s remuneration-audit of the financial reports 85 95 

Advertising and public relations 1,138 712 

Bad and doubtful debts 66 45 

Computer costs 669 465 

Consultancy costs 2,068 3,575 

Equipment maintenance and consumables 68 85 

Fees for services rendered 5,446 5,200 

Legal fees 1,040 893 

Motor vehicle and plant hire expenses 25 73 

Motor vehicle leasing costs 216 219 

Minor equipment purchases 840 157 

Operating lease rental expense-Minimum lease 

Payments 2,500 1,879 

Maintenance 108 127 

Insurance – public liability 70 107 

Printing 607 645 

Telephones 279 228 

Stores, stationery and materials 200 217 

Training 155 169 

Travel 499 493 

Other 710 111 

16,789 15,495 

4. DEPRECIATION AND AMORTISATION EXPENSE 

Intangible assets 284 806 

Buildings and leasehold improvements 378 378 

Plant and equipment 237 269 

899 1,453 


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15 



5. GRANTS AND SUBSIDIES 

2008 2007 

$’000 $’000 

Planning Reform Fund grants to Councils 2,393 875 

Redfern Waterloo Authority 6,997 7,190 

Growth Centres Commission 6,000 6,000 

Heritage Office grants 2,709 2,438 

Contributions to Building Professionals Board 2,845 921 

Corporation Sole, Minister administering the 

Environmental Planning and Assessment Act 1979 

– expenditure and loan servicing contribution 12,780 5,648 

Other 1,912 2,177 

35,636 25,249 

6. SALE OF GOODS AND SERVICES 

Planning Reform Fund contribution 18,515 16,470 

Fees for services 390 3,384 

Demand management project reimbursement 2,301 3,000 

Development application fees for planning projects 11,894 8,671 

Other 420 472 

33,520 31,997 

Personnel services revenue charged to client entities 7,223 6,021 

40,743 38,018 

7. INVESTMENT REVENUE 

Interest 

– Bank 1,252 309 

– Repayable conservation advances – 12 

1,252 321 

8. GRANTS AND CONTRIBUTIONS 

Contributions received from 

– Commonwealth Government 146 121 

– Other State Government entities (i) – 821 

146 942 

(i) Received from the Roads and Traffic Authority in respect to the Transport Planning Data Centre 

activities. 

9. OTHER REVENUE 

Forgiveness of debt – 2,057 

Other revenue 2,676 2,590 

2,676 4,647 


16 



10a. LOSS ON DISPOSAL 

2008 2007 

$’000 $’000 

Loss on disposal of Intangibles 

Proceeds from disposal – – 

Carrying value of assets disposed – 1,254 

Net loss on disposal of intangibles – 1,254 

Loss on disposal of land 

Proceeds from disposal (550) – 

Carrying value of assets disposed (i) 1,359 – 

Net loss on disposal of land and buildings 809 – 

Loss on disposal of plant and equipment 

Proceeds from disposal – – 

Carrying value of assets disposed 205 12 

Net loss on disposal of plant and equipment 205 12 

Loss on disposal of non-current assets 1,014 1,266 

(i) Land transferred to Shoalhaven Council. 

10b. OTHER LOSSES 

Impairment of IPLAN software – 1,251 

– 1,251 

11. APPROPRIATIONS 

Recurrent appropriations 

Total recurrent drawdowns from NSW Treasury 61,610 66,113 

(per Summary of Compliance) 

Less: Liability to Consolidated Fund (120) (7,908) 

per Summary of Compliance) 

Total 61,490 58,205 

Comprising: 

Recurrent appropriations (per Operating Statement) 61,490 58,205 

Plus: Transfer payments – – 

Total 61,490 58,205 

Capital appropriations 

Total capital drawdowns from Treasury 2,347 3,316 

(per Summary of Compliance) 

Comprising: 

Capital appropriations (per Operating Statement) 2,347 3,316 

12. ACCEPTANCE BY THE CROWN ENTITY OF EMPLOYEE BENEFITS AND OTHER LIABILITIES 

The following liabilities and expenses have been assumed 

by the Crown Entity: 

Superannuation – defined benefits 1,905 1,488 

Long service leave 1,886 1,589 

Payroll tax 124 88 

3,915 3,165 


103

17 



13. PROGRAMS/ACTIVITIES OF THE DEPARTMENT 

38.1 Strategy and policy development 

Program objective(s): To set the strategic direction for land use management and infrastructure for 

communities across New South Wales. Provide advice on policy and strategy 

for key issues at a regional and State-wide level 

Program description: Reform, develop and monitor planning and building systems. 

Whole-of-government co-ordination on all aspects of planning and related 

environmental, economic and human service issues. Develop State 

environmental planning policies, regional environmental plans and other 

planning policies and strategies. Provide strategic information for government 

to guide infrastructure investment. Collect, analyse and publish data on 

transport travel patterns, employment and population. 

38.2 Major development assessment and strategy implementation 

Program objective(s): To facilitate improved economic performance, environmental sustainability and 

quality of life for NSW through better planning policies, programs and improved 

land use management. 

Program description: Strategic and project level environmental impact assessment. Implement 

whole-of-government initiatives for major development and infrastructure 

projects. Review local environmental plans to ensure consistency with Statewide 

strategic framework. Implement place-based programs that create quality 

communities and deliver economic, social and environmental benefits. 

Develop active partnerships with local government, other State agencies, 

business and the wider community. Provide best practice specialist services to 

stakeholders and the community. Manage grants programs that provide 

financial incentives to create communities in urban and regional NSW. 

38.3 Heritage planning and policy 

Program objective(s): Ensure the community knows values and cares for the heritage of NSW. 

Program description: Identify, assess and present the heritage of NSW. Provide resources, 

including skills, funding, innovation, and policy and management advice, for 

heritage conservation, promotion and assistance. Implement the regulatory 

functions to manage changes to the heritage of NSW. 

38.4 Personnel services 

Program objective(s): To provide personnel services to selected agencies as part of the State’s 

Work Choices insulation legislation. 

Program description: This service group covers personnel services that are provided to the Minister 

Administering the Environmental Planning and Assessment Act, Hunter 

Development Corporation and Western Sydney Parklands Trust. 


18 



14. CURRENT ASSETS – CASH AND CASH 

EQUIVALENTS 

2008 2007 

$’000 $’000 

Cash at bank and on hand 11,772 18,016 

For the purpose of the Cash Flow Statement, cash includes cash on hand and cash at bank and 

short-term deposits at call. 

. 

Cash and cash equivalent assets recognised in the Balance Sheet are reconciled at the end of the 

financial year to the Cash Flow Statement as follows: 

Cash and cash equivalents (per Balance Sheet) 

Closing cash and cash equivalents 11,772 18,016 

(per Cash Flow Statement) 

Details regarding credit risk, liquidity risk and market risk are disclosed at Note 26 

15. CURRENT/NON CURRENT ASSETS – 

RECEIVABLES 

Sale of goods and services 2,756 3,646 

Less: Allowance for impairment (97) (53) 

2,659 3,593 

Goods and Services Tax recoverable from ATO 654 498 

Accrued income – sale of goods and services 2,023 1,304 

Repayable conservation advances 710 691 

6,046 6,086 

Current 5,336 5,395 

Non-current 710 691 

6,046 6,086 

Details regarding credit risk, liquidity risk and market risk are disclosed at Note 26. 

16. NON-CURRENT ASSETS – PROPERTY, PLANT AND 

EQUIPMENT 

Land 

(under Coastal 

Protection 

Scheme) 

Plant 

and 

equipment 

Total 

$’000 $’000 $’000 

As at 30 June 2008 – fair value 

Gross carrying amount 24,282 7,169 31,451 

Accumulated depreciation and impairment – (1,592) (1,592) 

Net carrying amount 24,282 5,577 29,859 


Gross carrying amount 24,880 7,349 32,229 

Accumulated depreciation & impairment – (1,152) (1,152) 

Net carrying amount 24,880 6,197 31,077 

Reconciliations 

A reconciliation of the carrying amounts of each class of property, plant and equipment at the beginning 

and end of the current reporting period is set out below: 


105

19 



Land 


Protection Scheme) 

Plant 

and 

equipment 

Total 

$'000 $'000 $'000 

Year ended 2008 

Net carrying amount at start of year 24,880 6,197 31,077 

Additions 2,261 205 2,466 

Net revaluation increment taken to reserve – – – 

Disposals (2,859) (384) (3,243) 

Depreciation expense – (615) (615) 

Other movements – 174 174 

Net carrying amount at end of year 24,282 5,577 28,859 

Land 


Protection Scheme) 

Plant 

and 

equipment 

Total 

$'000 $'000 $'000 

Year ended 2007 

Carrying amount at start of year 22,431 6,862 29,293 

Additions 2,449 446 2,895 

Net revaluation increment taken to reserve – – – 

Disposals – (4) (4) 

Depreciation expense – (647) (647) 

Other movements – (460) (460) 

Net carrying amount at end of year 24,880 6,197 31,077 

17. NON-CURRENT ASSETS – INTANGIBLE ASSETS 

Software 

At 1 July 2008 $’000 

Cost (gross carrying amount) 1,119 

Accumulated amortisation and impairment (441) 

Net carrying amount 678 

At 30 June 2007 

Cost (gross carrying amount) 1,119 

Accumulated amortisation and impairment (157) 

Net carrying amount 962 

Reconciliations 

A reconciliation of the carrying amounts of each class of intangibles assets at the beginning and end 

of the current reporting period is set out below: 

Year ended 30 June 2008 

Net carrying amount at start of year 962 

Additions – 

Disposals – 

Amortisation (recognised in ‘depreciation and amortisation’) (284) 

Net carrying amount at end of year 678 

Software 

Period ended 30 June 2007 

Net carrying amount at start of year 3,419 

Acquired as a result of administrative orders 917 

Additions (58) 

Disposals (806) 

Amortisation (recognised in ‘depreciation and amortisation’) (2,505) 

Impairment losses (5) 

Net carrying amount at end of year 962 


20 



18. RESTRICTED ASSETS 

Legislation or Treasury Directions impose restrictions on the use of certain assets of the 

Department. As such, the following are considered to be restricted assets: 

2008 2007 

$’000 $’000 


Cash comprising: 

Raceway precinct contribution 1,631 1,631 

Western Sydney Employment Hub contribution 4,795 4,795 

Rhodes Peninsula Development contribution 316 316 

6,742 6,742 

19. CURRENT LIABILITIES – PAYABLES 

Accrued salaries, wages and on-costs 279 315 

Trade creditors 1,880 3,541 

Accruals – other 642 861 

Liability to Crown 120 7,908 

Fees in advance 84 217 

Raceway precinct contribution 1,631 1,631 

Western Sydney employment hub contribution 4,795 4,795 

Rhodes Peninsula development contribution 316 316 

9,747 19,584 

Details regarding credit risk, liquidity risk and market risk are disclosed at Note 26 

20. CURRENT/NON-CURRENT LIABILITIES – PROVISIONS 

Employee benefits and related on-costs 

Recreation leave 4,793 4,918 

Employee benefits and related on-costs 1,410 1,603 

Total provisions 6,203 6,521 

Aggregate employee benefits and related on-costs 

Provisions – current 6,157 5,634 

Provisions – non-current 46 887 

Total provisions per Balance Sheet 6,203 6,521 

Accrued salaries, wages and on-costs (Note 19) 279 315 

6,482 6,836 

Employee benefits expected to be settled within 

12 months from the reporting date 

Recreation leave 4,793 4,918 

Employee benefits and related on-costs 1,364 716 

6,157 5,634 

Employee benefits expected to be settled in more 

than 12 months from the reporting date 

Employee benefits and related on-costs 46 887 

46 887 


107

21 



21. CHANGES IN EQUITY 

2008 2007 

$’000 $’000 

Balance at the beginning of the year 30,036 22,851 

Net decrease in equity arising from the transfer in of former 

Department of Natural Resources assets and liabilities (373) – 

Net decrease in equity arising from the transfer of the 

Transport Planning Function (29 January 2007) and the 

Transport Data Centre (17 May 2007) to Ministry of Transport – (101) 

(Note 24) 

Net increase in equity arising from the transfer out of Building 

Professionals Board assets and liabilities as at 1 March 2007 – 138 

(Note 22) 

Net decrease in equity arising from the transfer out of coastal 

land to NSW National Parks and Wildlife Service (1,500) – 

Total 28,163 22,888 

Other than transactions with owners as owners – – 

Surplus for the year 4,242 7,148 

Balance at the end of year 32,405 30,036 

22. INCREASE/ DECREASE IN NET ASSETS FROM EQUITY TRANSFERS 

Cash (a) – (291) 

Current receivables – – 

Non-current assets (a) – (101) 

Non-current assets (b) – (30) 

Non-current assets (c) 33 – 

Non-current assets (d) (1,500) – 

Non-current receivables – – 

Total assets (1,467) (422) 

Other current liabilities (a) – (291) 

Other current liabilities (b) – (168) 

Other current liabilities (c) (406) – 

Other non-current liabilities – – 

Total liabilities (406) (459) 

Net assets acquired (1,873) 37 

(a) The Transport Planning Function (29 January 2007) and the Transport Data Centre (17 May 

2007) were transferred to the Ministry of Transport. 

(b) The Building Professionals Board (previously incorporated with Department of Planning) was 

established as a separate entity on 1 March 2007. 

(c) Transfer in of assets and liabilities from the former Department of Natural Resources. 

(d) Transfer out of Coastal Land to NSW National Parks and Wildlife Service. 

23. COMMITMENTS FOR EXPENDITURE 

(a) Capital expenditure commitments 

Aggregate expenditure for the acquisition of capital 

equipment contracted for at balance date but not 

provided for: 

Not later than one year 59 – 

Total (including GST) 59 – 


22 



2008 2007 

$’000 $’000 

(b) Other expenditure commitments 

Aggregate other expenditure for the acquisition of 

computer and office equipment and fees for services 

contracted for at balance date but not provided for: 

Not later than one year 121 272 

Total (including GST) 121 272 

(c) Operating lease commitments 

Aggregate operating lease commitments for office 

accommodation, motor vehicles and computer 

equipment contracted for at balance date but not 

provided for: 

Not later than one year 375 1,540 

Later than one year but not later than five years 478 4,035 

Later than five years – 3,982 

Total (including GST) 883 9,557 

(d) Grant commitments 

Aggregate grant commitments contracted for at 

balance date but not provided for: 

Not later than one year 5,959 4,564 

Total (including GST) 5,959 4,564 

The total commitments above include input tax credits of $0.772 (2007 $2.6 million) that are 

expected to be recoverable from the Australian Tax Office. 

24. CONTINGENT LIABILITIES 

Estimated legal liability – 407 

– 407 

The Department is not currently involved in any legal cases related to planning matters where costs 

may be awarded against it. The Department is involved in two insurance related cases which are 

covered by the Treasury Managed Fund. 

25. RECONCILIATION OF NET CASH FLOWS FROM OPERATING ACTIVITIES TO NET COST OF 

SERVICES 

Net cash (inflow)/outflow from operating activities 4,364 (19,489) 

Cash flows from Government 63,957 69,429 

Employee benefits and other liabilities 

Liability to consolidated fund (120) (7,908) 

Increase in provision for doubtful debts 44 45 

Depreciation 899 1,453 

Initial recognition of assets in the fixed asset register (33) – 

Net loss / (gain) on disposal of non-current assets 304 2,517 

Increase / (decrease) in provisions (362) 626 

Net increase / (decrease) in equity arising from 

transfers (1,873) 37 

(Increase) / decrease in other assets 2,252 1,519 

Increase / (decrease) in creditors (5,922) 9,309 

Net cost of services 63,510 57,538 


109

23 



26. FINANCIAL INSTRUMENTS 

The Department’s principal financial instruments are outlined below. These financial 

instruments arise directly from the Department’s operations or are required to finance the 

Department’s operations. The Department does not enter into or trade financial instruments, 

including derivative financial instruments, for speculative purposes. 

The Department’s main risks arising from financial instruments are outlined below, together with 

the Department’s objectives, policies and processes for measuring and managing risk. Further 

qualitative disclosures are included throughout this financial report. 

The Director-General has overall responsibility for the establishment and oversight of risk 

management and reviews and agrees policies for managing each of these risks. Risk management 

policies are established to identify and analyse the risks faced by the Department, to set risk limits 

and controls to monitor risks. Compliance with policies is reviewed by the Audit Committee on a 

continuous basis. 

(a) Financial instrument categories 

Financial 

assets 

Class 

Cash and cash 

equivalents 14 

Receivables 1 15 

Financial 

liabilities Note 

Note Category Carrying 

amount 

2008 

$’000 

Carrying 

amount 

2007 

$’000 

N/A 

11,772 18,016 

Loans and receivables (at amortised 

cost) 4,682 5,198 

Category 

Carrying Carrying 

amount amount 

2008 2007 

$’000 $’000 

Class 

Payables 2 19 

Financial liabilities measured at 

amortised cost 9,663 19,367 

Notes 

1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7) 

2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7) 

(b) Credit risk 

Credit risk arises when there is the possibility of the Department’s debtors defaulting on their 

contractual obligations, resulting in a financial loss to the Department. The maximum exposure to 

credit risk is generally represented by the carrying amount of the financial assets (net of any 

allowance for impairment). 

Credit risk arises from the financial assets of the Department, including cash and receivables. No 

collateral is held by the Department. The Department has not granted any financial guarantees. 

Cash 

Cash comprises cash on hand and bank balances within the NSW Treasury Banking System. 

Interest is earned on daily bank balances at the monthly average NSW Treasury Corporation 11am 

unofficial cash rate, adjusted for a management fee to NSW Treasury. 

Receivables – trade debtors 

All trade and other debtors are recognised as amounts receivable at balance date. Collectability of 

all debtors is reviewed on an ongoing basis. Debts, which are known to be uncollectable, are 

written off. 


24 



An allowance for impairment is raised when some doubt as to collection exists. The credit risk is 

the carrying amount (net of any allowance for impairment). No interest is earned on trade debtors. 

The carrying amount approximates net fair value. Sales are generally made on 30-day terms. 

The Department is not materially exposed to concentrations of credit risk to a single trade debtor or 

group of debtors. Based on past experience, debtors that are not past due (2008: $2,349,000; 

2007: $46,000) and not less than three months past due (2008: $165,000; 2007: $46,000) are not 

considered impaired and together these represent 95 per cent of the total trade debtors. There are 

no debtors which are currently not past due or impaired whose terms have been renegotiated. 

The only financial assets that are past due or impaired are ‘sales of goods and services’ in the 

‘receivables’ category of the balance sheet. 

Total 1,2 

Past due but not 

impaired 1,2 

$’000 

Considered 

impaired 1,2 

$’000 

2008 

< 3 months overdue 68 68 – 

3 months – 6 months 

overdue – – 97 

> 6 months overdue – – 

2007 

< 3 months overdue 46 46 – 


overdue – – – 

> 6 months overdue – – 53 

Notes 

1. Each column in the table reports ‘gross receivables’. 

2. The ageing analysis excludes statutory receivables, as these are not within 

the scope of AASB 7 and excludes receivables that are not past due and not 

impaired. Therefore, the ‘total’ will not reconcile to the receivables total 

recognised in the balance sheet. 

(c) Liquidity risk 

Liquidity risk is the risk the Department will be unable to meet its payment obligations when they fall 

due. The Department continuously manages risk through monitoring future cash flows and 

maturities planning to ensure adequate holding of high quality liquid assets. 

No assets have been have been pledged as collateral. The Department’s exposure to liquidity risk 

is deemed insignificant based on prior periods’ data and current assessment of risk. 

The liabilities are recognised for amounts due to be paid in the future for goods and services 

received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in 

accordance with the policy set out in Treasurer’s Direction 219.01. If trade terms are not specified, 

payment is made no later than the end of the month following the month in which an invoice or 

statement is received. Treasurer’s Direction 219.01 allows the Minister to award interest for late 

payment. No interest were awarded for late payments. 


111

25 



The table below summarises the maturity profile of the Department’s financial liabilities, together 

with the interest rate exposure. 

Maturity analysis and interest rate exposure of financial liabilities 

Weighted 

average 

effective 

interest 

rate 

Nominal 

amount 1 

Interest rate exposure 

$’000 

Variabl 

e 

interest 

rate 

Fixed 

interest 

rate 

Noninterest 

bearing 

2008 

Payables 9,663 9,663 

9,663 9,663 

2007 

Payables 19,367 19,367 

19,367 19,367 

5 

years 

The amounts disclosed are the contractual undiscounted cash flows of each class of financial 

liabilities. 

(e) 

Market risk 

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate 

because of changes in market prices. The Department has no exposure to foreign currency risk and 

does not enter into commodity contracts. 

The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the 

information below, for interest rate risk and other price risk. A reasonably possible change in risk 

variable has been determined after taking into account the economic environment in which the 

Department operates and the time frame for the assessment (i.e. until the end of the next reporting 

period). The sensitivity analysis is based on risk exposure in existence at the balance sheet date. 

The analysis is performed on the same basis for 2007. The analysis assumes that all other variables 

remain constant. 

(f) 

Interest rate risk 

The Department does not account for any fixed rate financial instruments at fair value through profit 

or loss or as available-for-sale. Therefore, for these financial instruments, a change in interest rates 

would not affect profit or loss or equity. A reasonably possible change of +/- 1 per cent is used, 

consistent with current trends in interest rates. The basis will be reviewed annually and amended 

where there is a structural change in the level of interest rate volatility. The Department’s exposure to 

interest rate risk is set out below. 

Carrying -1 per cent 1 per cent 

amount Profit Equity Profit Equity 

$’000 $’000 $’000 $’000 $’000 

2008 

Financial assets 

Cash and cash 

equivalents 11,772 (118) (118) 118 118 

Receivables 4,682 – – – – 

Financial liabilities 

Payables 9,663 – – – – 

26,117 (118) (118) 118 118 

2007 


Cash and cash 

equivalents 18,016 (180) (180) 180 180 



Payables 19,367 – – – – 


26 



42,581 (180) (180) 180 180 

Financial instruments are generally recognised at cost, with the exception of the TCorp Hour-Glass 

facilities, which are measured at fair value. 

27. BUDGET REVIEW 

(a) Net cost of services 

The actual net cost of services was lower than budget by $9.4 million, primarily due to lower than 

expected grant expenditure ($13.3 million less than original budget) related to the South West Rail 

Link, due to slower than expected take up of acceptance of offers for land purchase. This was 

partially offset by increased expenditure on new initiatives for employments lands and planning 

reforms, for which the Department received supplementary funding of $4.5 million. 

(b) Assets and liabilities 

Cash at bank was less than budget by $6.4 million, primarily due to the repayment of $7.9 million in 

overpaid recurrent funding, paid in error by NSW Treasury in June 2007; this is also mainly 

responsible for the $9.8 million reduction in payables. Property, Plant and Equipment is $4.3 million 

less than budget due to the transfer out of land during the year ($2.9 million), under expenditure on 

the Coastal Land Acquisition Program and less than budgeted expenditure on plant and equipment 

purchases. 

(c) Cash flows 

Cash flows from investing activities were $6.9 million under budget, largely due to reduced 

recurrent funding due to the overpayment of $7.9 million in June 2007, which was repaid during 

2007-08. Cash flows used in investing activities was $0.6 million under budget due to under 

expenditure on capital programs. 

28. AFTER BALANCE DATE EVENTS 

The Department is not aware of any material non-adjusting events, as defined by AASB 110 

Events after Balance Sheet date which would have a material financial effect on these financial 

statements. 

END OF AUDITED FINANCIAL REPORT 


113


Corporation Sole 

“Minister administering the Environmental 

Planning and Assessment Act 1979” 

Financial Report for the 

financial year ended 30 June 2008 

CONTENTS 

Performance Report 116 


Statement by the Minister 120 

Income Statement 121 

Statement of Recognised Income and Expense 122 



Notes Accompanying and Forming Part of the Financial Statements 125

Corporation Sole – 

Minister administering the 

Director’s overview 

The Corporation Sole is established as the Minister 

administering the Environmental Planning and 

Assessment Act 1979 to acquire land for planning 

purposes within the Sydney Region. This includes land 

suitable for regional open space, public transport 

corridors and land for projects such as the Rouse Hill 

Regional Centre. 

The activities of the Corporation Sole are managed 

through separate funds established under the Act, 

including the Sydney Region Development Fund. The 

management of the Corporation Sole’s activities and the 

Sydney Region Development Fund are administered by 

the Land Management Branch of the Department. 

Strategic directions 

The strategic directions for the Sydney Region 

Development Fund include: 

• the ongoing purchase of rail corridors the for North 

West and South West Rail Links 

• prudent financial management to ensure adequate 

capital funding and to achieve an optimal return on 

surplus (non-core) assets 

• the ongoing review of land acquisitions and disposal 

of surplus lands within the Sydney Region with the 

objective of maintaining the self-funding model of the 

Sydney Region Development Fund 

• focusing on implementing the intended outcomes for 

open space land strategies and lands purchased for 

other planning purposes in accordance with 

Government priorities outlined in the NSW State 

Infrastructure Strategy and the Metropolitan Strategy. 

Major achievements this year 

• Continued acquiring land for the North and South 

West Rail Links Program. 

• Created the Western Sydney Parklands Trust, 

including the vesting of 5,280 hectares with the Trust. 

• Opened the Rouse Hill Town Centre and saw the 

commencement of its trading as a new commercial 

hub for Sydney’s North West. 

Financial highlights 

As at 30 June 2008, the Corporation Sole had: 

• $898 million of core planning land 

• $307 million of surplus land including $18.1 million of 

assets held for sale in 2008-09 

• $32.3 million invested with the NSW Treasury 

Corporation in cash management (Hour Glass) 

facilities 

• $205.9 million in borrowings from NSW Treasury 

Corporation. 

During 2007-08, the Corporation Sole: 

• earned a profit of $79.2 million (adjusted to exclude 

the net gain of asset revaluations) 

• achieved a net gain through the disposal of land of 

$29.9 million surplus (proceeds $88.7 million less 

written down values and sale disbursements of $58.8 

million) 

• received $6.5 million in contributions from councils 

within the Sydney Region to meet interest costs on 

debt 

• received $12.8 million from the State Government 

• acquired and developed works of $174.5 million, 

including land at a cost of $16.2 million for open 

space planning and $77 million for transport corridor 

purposes 

• received net rental income of $4.4 million (gross 

rental of $6.1 million less expenses of $1.7 million) 

• paid out grants and subsidies of $6.6 million. 


Program highlights 

Expenditure is mainly incurred for land acquisition, sale of 

surplus land, administration and borrowing costs. Grants 

to improve open space land and new foreshore open 

space are also provided in partnership with local councils 

and community organisations. 

The Sydney Region Development Fund’s land acquisition 

program includes the purchase of regional open space in 

the Sydney metropolitan area. The fund purchases land 

of regional significance to be developed for long-term 

recreation and conservation purposes. Land acquired for 

open space involved 19 properties at a value of $16.2 

million. 

With the establishment of the Western Sydney Parklands 

Trust, the Corporation Sole has vested 2,153 hectares of 

its land in the corridor with the new Trust as the basis for 

the development of 27 kilometre long parklands for 

Western Sydney. 

The other major component of the Sydney Region 

Development Fund’s acquisition program is the purchase 

of rail corridors in the North West and South West of 

Sydney. This program is being undertaken to meet 

commitments set out in the Urban Transport Statement to 

complete the South West Rail Link to Leppington by 2012 

and to finish stage one of the North West Metro to the 

Hills Centre by 2015 and stage two by 2017. Twenty-three 

properties, with a value of $46 million, were acquired for 

the North West Metro. Thirteen properties, with a value of 

$30.5 million, were acquired for the South West Rail Link. 

The fund also helps develop significant metropolitan open 

space precincts and contributes to initiatives such as the 

Metropolitan Greenspace Program and the Sharing 

Sydney Harbour Access Program to improve liveability in 

areas of Sydney. The sum of $2.4 million was allocated to 

these programs in 2007-08. 

The fund holds land that is no longer needed for planning 

purposes, as well as fragments that can be aggregated 

and sold. The proceeds from the sale of such properties 

is the main source of funding for the fund’s ongoing 

acquisition program. 

The Sydney Region Development Fund is currently selling 

surplus sites for major employment lands in Western 

Sydney. Surplus lands have been disposed of at 

Huntingwood West and identified for sale at Doonside. 

Disposal of surplus land is also occurring at Seaforth, 

Belrose and Willoughby. 

The fund disposed of 32 properties with a total value of 

$89 million. There were no properties sold by public 

auction or tender over the value of $5 million. There were, 

however, staged payments received for project delivery 

agreements at Rouse Hill and West Huntingwood that 

were greater than $5 million. 

Development of the Rouse Hill Regional Centre continues 

on land purchased by the fund. The regional centre was 

officially opened in 2007-08 as the retail, commercial and 

community centre for Sydney’s North West. It is being 

developed in partnership with Landcom and the private 

sector developer Lend Lease and General Property Trust. 

The fund also manages a heritage asset management 

program under the Heritage Act 1977. Thirty-four heritage 

properties across the Sydney metropolitan area are 

incorporated in the Heritage Asset Management Strategy 

and section 170 Register. The Heritage Asset 

Management Strategy incorporates provisions for 

governance, maintenance and strategic direction for 

these heritage items. 

The Erskine Park biodiversity corridor 

To develop the Erskine Park employment area, 

Corporation Sole negotiated with combined 

landowners to achieve significant new employment 

land in the Western Sydney employment hub and 

209 hectares of new biodiversity corridor. 

Along with the State Plan’s objective of creating jobs 

closer to home, the agreement creates a corridor to 

link the Corporation Sole’s regional open space land 

holdings along South and Ropes Creek and includes 

$3 million of new biodiversity planning and 83 

hectares transferred to the Corporation Sole to protect 

the link into the future. 

Case Study 


117

Future directions 

In the 2008-09, the Corporation Sole will: 

• continue to improve its commercial management and 

viability of the Sydney Region Development Fund 

• continue the land acquisition program for the North 

and South West Rail Links 

• accelerate the surplus land disposal to meet ongoing 

demand for acquisitions for infrastructure and regional 

open space. 

Case Study 

Metropolitan Greenspace Program 

The Metropolitan Greenspace Program has continued 

to deliver improvements to regional open space 

across metropolitan Sydney. 

Over the last five years of operations, the fund has 

contributed $8.9 million to regional park 

embellishments and in the process facilitated over 

$35.3 million spent on regional parks for Sydney. 

In 2007-08, around 70 per cent of grant funding has 

been focused on implementing the Metropolitan 

Strategy’s regional recreational trails network. Over 

$2.1 million was awarded to trail projects across 20 

councils. These projects included staged 

development of major regional routes along 

waterways, such as the great river walk in Penrith; 

harbour and bay foreshores, such as the Botany Bay 

trail; and within urban areas linking open space 

corridors, such as between Cooks River and Iron 

Cove. 



119



121


“Minister administering the Environmental Planning and Assessment Act 1979” 

Income Statement 


Revenue 

2008 2007 

Note $'000 $'000 

Revenue 2 19,324 13,127 

Other income 3 93,472 26,329 

Total revenue 112,796 39,456 

Expenses 

Personnel services expenses 4 (a) 2,221 2,500 

Other operating expenses 4 (b) 7,544 5,501 

Finance costs 4 (c) 14,835 8,041 

Grants and subsidies 5 9,033 7,861 

Total expenses 33,633 23,903 








2008 2007 

Note $'000 $'000 

Increase in asset revaluation reserve 13 6,854 13,543 

Total income and expense recognised directly in equity 6,854 13,543 


Total income and expense recognised for the year 13 79,163 15,553 



123



Balance Sheet 



2008 2007 

Note $'000 $'000 

Cash and cash equivalents 6 62,930 44,277 

Receivables 7 6,121 4,016 

69,051 48,293 

Non-current assets held for sale 8 18,138 30,214 

Total current assets 87,189 78,507 


Property plant and equipment 

Core planning land 9 (a) 897,901 1,054,846 

Non-core planning land 9 (b) 288,988 292,788 

Other – 1 

Total non-current assets 1,186,889 1,347,635 

Total assets 12,740,078 1,426,142 


Payables 10 42,315 39,216 

Provisions 11 164 252 

Borrowings 12 19,370 27,147 

Total current liabilities 61,849 66,615 



Borrowings 12 186,571 107,284 

Total non-current liabilities 186,746 107,459 

Total liabilities 248,595 174,074 

Net assets 1,025,483 1,252,068 

Equity 

Reserves 13 386,477 792,255 

Retained surplus 13 639,006 459,813 

Total equity 1,025,483 1,252,068 







CASH FLOWS FROM OPERATING ACTIVITIES 

2008 2007 

Note $'000 $'000 

Receipts from customers 45,290 39,068 

Payments to suppliers and employees (23,981) (21,742) 

(21,309) 17,326 

Grants and subsidies paid (9,033) (7,861) 

Borrowing costs (14,155) (7,168) 

Interest received 2,605 1,561 

Net cash flows from operating activities 15 726 3,858 

CASH FLOWS FROM INVESTING ACTIVITIES 

Purchase of Property (114,701) (72,571) 

Proceeds from sale of property 61,119 42,220 

Proceeds from financial assets – 8,709 

Net cash flows from investing activities (53,582) (21,642) 

CASH FLOWS FROM FINANCING ACTIVITIES 

Proceeds from borrowings 71,510 38,573 

Net cash flows from financing activities 71,510 38,573 

Net increase / (decrease) in cash held 18,654 20,789 

Opening cash and cash equivalents 44,277 23,488 

Closing cash and cash equivalents 6 62,931 44,277 



125



Notes accompanying and forming part of the Financial Statements 


(a) Reporting entity 

The Corporation Sole "Minister administering the Environmental Planning and Assessment Act 

1979" (the Corporation), incorporating the Sydney Region Development Fund operates under 

the provisions of the Environmental Planning and Assessment Act 1979 to acquire and 

develop lands required for planning purposes within the Sydney region. The Corporation is a 

separate reporting entity. There are no other entities under its control. This financial report has 

been authorised for issue by the Minister for Planning on 20 October 2008. 

(b) Basis of preparation 

The Corporation's financial report is a general purpose financial report which has been 

prepared in accordance with: 

 

applicable Australian Accounting Standards (which include Australian Accounting 

Interpretations) 

the requirements of the Public Finance and Audit Act 1983 and its Regulation 2005. 

Investments, non-current assets held for sale and property, plant and equipment are 

measured at fair value. Other financial report items are prepared in accordance with the 

historical cost convention. 

Judgements, key assumptions and estimations management has made are disclosed in the 

relevant notes to the financial report. 

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian 

currency. 

(c) Statement of Compliance 

The financial statements and notes comply with Australian Accounting Standards, which 

include Australian Accounting Interpretations 

(d) Comparative information 

Except when an Australian Accounting Standard permits or requires otherwise, comparative 

information is disclosed in respect of the previous period for all amounts reported in the 

financial statements. 

(e) New Australian Accounting Standards issued but not effective 

The following Australian Accounting Standards and Interpretations that have recently been 

issued or amended but are not yet effective and have not been adopted for the annual 

reporting period ended 30 June 2008 by the Corporation. The Corporation does not anticipate 

any material impact of these new accounting standards on the financial report of the 

Corporation. 


1 January 2009. AASB 8 will result in a significant change in the approach to segment 

reporting, as it requires adoption of a management approach to reporting on financial 

performance AASB1049 Whole of Government and General Government Sector Financial 

Reporting applies to reporting periods beginning on or after 1 July 2008. 



September 2007 and is applicable for financial reporting periods beginning on or after 1 

January 2009. 


Standards arising from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 and 

AASB 138 and Interpretations 1 and 12]. The revised AASB 123 is applicable to financial 

reporting periods commencing on or after 1 January 2009. It has removed the option to 

expense all borrowing costs and – when adopted – will require the capitalisation of all 





(f) 

borrowing costs directly attributable to the acquisition, construction or production of a 

qualifying asset. 


Income is measured at the fair value of the consideration or contribution received or 

receivable. Additional comments regarding the accounting policies for the recognition of 

income are discussed below. 

1. Contributions: Contributions are generally recognised as income when the Corporation 

obtains control over the assets comprising the contributions. Control over contributions is 

normally obtained upon the receipt of cash. 

2. Sale of goods: Revenue from the sale of goods is recognised as revenue when the 

Corporation transfers the significant risks and rewards of ownership of the assets. 

3. Rendering of services: Revenue is recognised when the service is provided or by 

reference to the stage of completion (based on labour hours incurred to date). 

4. Investment income: Interest revenue is recognised using the effective interest method as 

set out in AASB 139 Financial instruments: Recognition and measurement. 

5. Rental revenue: Rental revenue is recognised in accordance with AASB 117 Leases on a 

straight-line basis over the lease item. 

(g) Personnel services 

1. Salaries and wages, annual leave, sick leave and on-costs: 

Liabilities for salaries and wages (including non-monetary benefits), annual leave and 

paid sick leave that fall due wholly within 12 months of the reporting date are recognised 

and measured in respect of employees’ services up to the reporting date at undiscounted 

amounts based on the amounts expected to be paid when the liabilities are settled. 

Unused non-vesting sick leave does not give rise to a liability as it is not considered 

probable that sick leave taken in the future will be greater than the benefits accrued in the 

future. 

The outstanding amounts of payroll tax, workers’ compensation insurance premiums and 

fringe benefits tax, which are consequential to employment, are recognised as liabilities 

and expenses where the employee benefits to which they relate have been recognised. 

2. Long service leave and superannuation 

The corporation’s liabilities for long service leave and superannuation are not shown in 

the Corporation’s books as staff are employed by the Department of Planning. The 

liability for these items has been assumed by the Crown Entity. 

(h) Borrowing costs 

(i) 

(j) 

Borrowing costs are recognised as expenses in the period in which they are incurred, in 

accordance with Treasury’s mandate to general government sector agencies. 

Grants and subsidies 

They generally comprise cash contributions to local government authorities and nogovernment 

organisations. They are expensed when the State transfers control of the assets. 

Insurance 

The Corporation’s insurance activities are conducted through the NSW Treasury Managed 

Fund Scheme of self insurance for Government agencies. The expense (premium) is 

determined by the fund manager based on past experience. 


127




(k) Accounting for the Goods and Services Tax (GST) 

(l) 

Revenues, expenses and assets are recognised net of the amount of GST, except where: 

 

 

the amount of GST incurred by the Corporation as a purchaser that is not recoverable 

from the Australian Taxation Office is recognised as part of the cost of acquisition of an 

asset or as part of an item of expense. 


Cash flows are included in the cash flow statement on a gross basis. However, the GST 

components of cash flows arising from investing and financing activities which is recoverable 

from, or payable to, the Australian Taxation Office are classified as operating cash flows. 



controlled by the Corporation. Cost is the amount of cash or cash equivalents paid or the fair 

value of the other consideration given to acquire the asset at the time of its acquisition or 

construction or, where applicable, the amount attributed to that asset when initially recognised 

in accordance with the specific requirements of other Australian Accounting Standards. 

Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair 

value at the date of acquisition [see also assets transferred as a result of an equity transfers – 

Note 1. 

Fair value is the amount for which an asset could be exchanged between knowledgeable, 

willing parties in an arm’s length transaction. 



(m) Capitalisation thresholds 

Property, plant and equipment and intangible assets costing $5,000 and above individually (or 

forming part of a network costing more than $5,000) are capitalised. 

(n) Revaluation of property, plant and equipment 

Physical non-current assets are valued in accordance with the Valuation of Physical Non- 

Current Assets at Fair Value Policy and Guidelines Paper (TPP 07-1). This policy adopts fair 

value in accordance with AASB 116 Property, plant and equipment and AASB 5 Assets held 

for sale. 

Property, plant and equipment is measured on an existing use basis, where there are no 

feasible alternative uses in the existing natural, legal, financial and socio-political environment. 

However, in the limited circumstances where there are feasible alternative uses, assets are 

valued at their highest and best use. 


evidence, including current market selling prices for the same or similar assets. Where there is 

no available market evidence, the asset’s fair value is measured at its market buying price, the 

best indicator of which is depreciated replacement cost. 

The Corporation revalues each class of property, plant and equipment at least every five years 

or with sufficient regularity to ensure that the carrying amount of each asset in the class does 

not differ materially from its fair value at reporting date. The last revaluation was completed for 

the following asset classes on the dates noted and was based on an independent 

assessment. 





Asset class 

Last revaluation 

Core planning land and non-marketable surplus land 31 May 2006 

Surplus land and assets held for sale 30 June 2008 

Non-specialised assets with short useful lives are measured at depreciated historical cost, as 

a surrogate for fair value. 


being revalued (adjusted to reflect the present condition of the assets), the gross amount and 

the related accumulated depreciation are separately restated. 

For other assets, any balances of accumulated depreciation at the revaluation date in respect 

of those assets are credited to the asset accounts to which they relate. The net asset accounts 

are then increased or decreased by the revaluation increments or decrements. 

Revaluation increments are credited directly to the asset revaluation reserve, except that, to 

the extent that an increment reverses a revaluation decrement in respect of that class of asset 

previously recognised as an expense in the surplus/deficit, the increment is recognised 

immediately as revenue in the surplus/deficit. 

Revaluation decrements are recognised immediately as expenses in the surplus / deficit, 

except that, to the extent that a credit balance exists in the asset revaluation reserve in 

respect of the same class of assets, they are debited directly to the asset revaluation reserve. 

As a not-for-profit entity, revaluation increments and decrements are offset against one 

another within a class of non-current assets, but not otherwise. 

Where an asset that has previously been revalued is disposed of, any balance remaining in 

the asset revaluation reserve in respect of that asset is transferred to accumulated funds. 

(o) Impairment of property, plant and equipment 

As a not-for-profit entity with no cash generating units, the Corporation is effectively exempted 

from AASB 136 Impairment of assets and impairment testing. This is because AASB 136 

modifies the recoverable amount test to the higher of fair value less costs to sell and 

depreciated replacement cost. This means that, for an asset already measured at fair value, 

impairment can only arise if selling costs are material. Selling costs are regarded as 

immaterial. 

(p) Depreciation of property plant and equipment 

Depreciation is provided for on a straight-line basis for all depreciable assets so as to write off 

the depreciable amount of each asset as it is consumed over its useful life to the Corporation. 

All material separately identifiable components of assets are depreciated over their shorter 

useful lives. 

Land is not a depreciable asset. 

Depreciation rates: 

Computers 25% 

Office equipment 14% 

(q) Leased assets 

A distinction is made between finance leases which effectively transfer from the lessor to the 

lessee substantially all the risks and benefits incidental to ownership of the leased assets, and 

operating leases under which the lessor effectively retains all such risks and benefits. 

Operating lease payments are charged to the Income Statement in periods which they are 

incurred. 


129




(r) 

Maintenance 


except where they relate to the replacement of a part or component of an asset, in which case 

the costs are capitalised and depreciated. 

(s) Loans and receivables – Year ended 30 June 2008 

(t) 

Loans and receivables are non-derivative financial assets with fixed or determinable payments 

that are not quoted in an active market. These financial assets are recognised initially at fair 

value, usually based on the transaction cost or face value. Subsequent measurement is at 

amortised cost using the effective interest method, less an allowance for any impairment of 

receivables. Short-term receivables with no stated interest rate are measured at the original 

invoice amount where the effect of discounting is immaterial. Impairment receivables is 

established when there is objective evidence that the entity will not be able to collect all 

amounts due. The amount of impairment is the difference between the asset’s carrying 

amount and the present value of estimated future cash flows, discounted at the effective 

interest rate. Bad debts are written off as incurred. 

Impairment of financial assets 

All financial assets, except those measured at fair value through profit and loss, are subject to 

an annual review for impairment. An allowance for impairment is established when there is 

objective evidence that the entity will not be able to collect all amounts due. 

For financial assets carried at amortised cost, the amount of the allowance is the difference 

between the asset’s carrying amount and the present value of estimated future cash flows, 

discounted at the effective interest rate. The amount of the impairment loss is recognised in 

the operating statement. 

When an available for sale financial asset is impaired, the amount of the cumulative loss is 

removed from equity and recognised in the operating statement, based on the difference 

between the acquisition cost (net of any principal repayment and amortisation) and current fair 

value, less any impairment loss previously recognised in the operating statement. 

Any reversals of impairment losses are reversed through the operating statement, where there 

is objective evidence, except reversals of impairment losses on an investment in an equity 

instrument classified as ‘available for sale’ must be made through the reserve. Reversals of 

impairment losses of financial assets carried at amortised cost cannot result in a carrying 

amount that exceeds what the carrying amount would have been had there not been an 

impairment loss. 

(u) Other financial assets – Year ended 30 June 2008 

Investments are initially recognised at fair value plus, in the case of financial assets not at fair 

value through profit or loss, transaction costs. 

The Corporation subsequently measures investments classified as held for trading at fair 

value. Gains or losses on these assets are recognised in the income statement. Assets 

intended to be held to maturity are subsequently measured at amortised cost using the 

effective interest method. Gains or losses on impairment or disposal of these assets are 

recognised in the income statement. Any residual investments that do not fall into any other 

category are accounted for as available for sale financial assets and measured at fair value 

directly in equity until disposed or impaired. All financial assets (except those measured at fair 

value through profit or loss) are subject to annual review for impairment. 

Purchases or sales of financial assets under contract that require delivery of the asset within 

the timeframe established by convention or regulation are recognised on the trade date i.e. the 

date the entity commits itself to purchase or sell the asset. 





(v) Non-current assets (or disposal groups) held for sale 

The Corporation has certain non-current assets (or disposal groups) classified as held for sale, 

where their carrying amount will be recovered principally through a sale transaction, not 

through continuing use. Non-current assets (or disposal groups) held for sale are recognised 

at the lower of carrying amount and fair value less costs to sell. These assets are not 

depreciated while they are classified as held for sale. 

(w) Other assets 

Other assets are recognised on a cost basis. 

(x) Equity transfers 

The transfer of net assets between agencies as a result of an administrative restructure, 

transfers of programs / functions and parts thereof between NSW public sector agencies is 

designated as a contribution by owners and recognised as an adjustment to ‘Accumulated 

funds’. This treatment is consistent with Interpretation 1038 Contributions by owners made to 

wholly-owned public sector entities. 

Transfers arising from an administrative restructure between government agencies are 


agency immediately prior to the restructure. In most instances this will approximate fair value. 

All other equity transfers are recognised at fair value. 

(y) Land transfers 

Land acquired for road purposes may be transferred, as required for construction, to the 

Roads and Traffic Authority without charge. Open Space land may be similarly transferred to 

local councils or placed under the care, control and management of local councils by means of 

trust deeds. Other lands may also be transferred to or placed under care, control and 

management of various government bodies without charge. 

On the transfer of or placement under care, control and management of land under these 

circumstances, the asset value is deducted from land and buildings within property plant and 

equipment and shown as an expense in the Income Statement, except to the extent that a 

revaluation increment in relation to that land has previous been credited to the Asset 

Revaluation Reserve. In that case the amount of the previously recognised revaluation 

increment will be deducted from the asset revaluation reserve. 

For the transfer to the Corporation of land for no consideration, the asset is recognised at fair 

value in the balance sheet. 

(z) Payables – Year ended 30 June 2008 

These amounts represent liabilities for goods and services provided to the Corporation and 

other amounts, including interest. Payables are recognised initially at fair value, usually based 

on the transaction cost or face value. Subsequent measurement is at amortised cost using the 

effective interest method. Short-term payables with no stated interest rate are measured at the 

original invoice amount where the effect of discounting is immaterial. 

(za) Borrowings – Year ended 30 June 2008 

Loans are not held for trading and are recognised at amortised cost using the effective interest 

method. Gains or losses are recognised in the Income Statement on de-recognition. 


131




2. REVENUE 

2008 2007 

$'000 

$'000 

Contributions received from: 

State Government 12,780 6,774 

Local councils (i) 6,544 6,353 

Total 19,324 13,127 

(i) Local councils within the Sydney Regional Development Fund are levied for contributions to 

meet interest costs on debt and for repayment of debt in accordance of section 147 of the 

Environmental Planning and Assessment Act 1979 

3. OTHER INCOME 

Rents 6,068 6,793 

Interest 2,725 1,513 

Net gain on disposal for consideration of non-current assets 

Held for sale 29,913 6,989 

Contract and licence receipts 2,964 9,750 

Other 51,802 1,284 

Total 93,472 26,329 

4. EXPENSES 

a. Personnel services expenses 

Salaries and wages 1,963 2,175 

Superannuation 176 161 

Workers compensation Insurance – 7 

Payroll tax and fringe benefits tax 82 101 

2,221 2,500 

b. Other expenses from continuing operations 

Auditors remuneration for audit of the financial report 59 59 

Consultancy fees 272 38 

Insurance 57 65 

Office accommodation 242 254 

Depreciation 8 68 

General administration 5,083 2,859 

Property maintenance 1,823 2,158 

7,544 5,501 

c. Finance costs 

Interest paid to TCorp 14,835 8,041 

Total 24,599 16,042 

5. GRANTS AND SUBSIDIES 

Open space improvement and restoration 

Metropolitan Greenspace Program 2,181 1,422 

Greening Western Sydney 229 677 

Other grants and subsidies 

Local government 6,623 5,337 

Other – 425 

9,033 7,861 





6. CURRENT ASSETS – CASH AND CASH EQUIVALENTS 

2008 2007 

$’000 $’000 

Cash at bank and on hand 30,584 5,422 

NSW Treasury Corporation – HourGlass cash facilities 32,346 38,855 

62,930 44,277 

Cash and cash equivalent assets in the balance sheet comprise cash at bank and in hand, short 

term deposits with an original maturity of three months or less, and deposit in Treasury 

Corporation’s Hour Glass Managed Fund cash facililty. 

For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and 

cash equivalents as defined above, net of outstanding bank overdrafts. 

7. CURRENT ASSETS – RECEIVABLES 

Sundry debtors 4,162 3,061 

Rental debtors 70 249 

4,232 3,310 

Less: Allowance for impairment – (24) 

4,232 3,286 

Amounts due on sale of land 1,889 730 

Total 6,121 4,016 

Movement in allowance for impairment 

Balance at 1 July (24) – 

Movement increase/(decrease) in allowance recognised in profit 

or loss 24 (24) 

Balance at 30 June – (24) 

8. CURRENT ASSETS - NON CURRENT ASSETS HELD FOR SALE 

18,138 30,214 

The carrying amount of surplus land parcels identified by the Corporation for disposal in the 

ensuing financial year, having obtained approval for disposal from the Government Asset 

Management Committee. Approval has not been obtained for the current year. 

9. NON CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT 

a. Core planning land at fair value 

County road and transport routes 141,419 110,842 

Open space uses 745,986 917,991 

Historic buildings and other special uses 10,496 26,013 

897,901 1,054,846 

b. Non-core planning land at fair value 

Surplus land at fair value – land previously acquired for 

planning purpose, now not required for that purpose, not 

yet available for sale 288,989 292,788 

Total planning land at fair value 1,186,890 1,347,634 


133




Reconciliation of core and non-core land held at fair value 

Core Non-core Total 

land 

land 

Balance at 1 July 2007 1,054,845 292,789 1,347,634 

Add acquisitions and development works 173,705 812 174,517 

Less: Land sold (22,100) (10,265) (32,365) 

Less: Land transferred out for no consideration (306,343) (8,055) (314,398) 

Less: WIP transfers (1,952) – (1,952) 

Net transfers from / (to) assets held for sale (396) 6,995 6,599 

Net increment on revaluation 143 6,714 6,857 

Net transfers from / (to) surplus land – – – 

Closing balance on 30 June 2008 897,902 288,990 1,186,890 

Balance at 1 July 2006 1,040,220 304,123 1,344,343 

Add acquisitions and development works 70,822 1,705 72,527 

Less: Land sold (31) (8,218) (8,249) 

Less: Land transferred out for no consideration (52,729) – (52,729) 

Net transfers from / (to) assets held for sale – (21,801) (21,801) 

Net increment on revaluation – 13,543 13,543 

Net transfers from / (to) surplus land (3,436) 3,436 – 

Closing balance on 30 June 2007 1,054,846 292,788 1,347,634 

c. Property plant and equipment at fair value 

2008 

$’000 

2007 

$’000 

Office equipment 

At fair value 432 498 

Accumulated depreciation (432) (497) 

– – 

Total property plant and equipment – 1 

Reconciliation of property plant and equipment 

Office 

equipment 

Total 

$’000 

Opening balance at 1 July 2007 1 – 

Additions – – 

Depreciation expense (1) (1) 

Closing balance at 30 June 2008 – – 

Opening balance at 1 July 2006 69 498 



Closing balance at 30 June 2007 1 – 






2008 2007 

$’000 $’000 

Accrued personnel services costs 37 22 

Creditors 39,374 21,700 

Interest 2,865 2,185 

Security and contract deposits 39 15,309 

Total 42,315 39,216 

11. CURRENT / NON-CURRENT LIABILITIES – PROVISION FOR PERSONNEL SERVICES 

Personnel services provision – current 147 217 

Other – current 17 35 

164 252 

Aggregate personnel services costs 

Provisions – current 164 252 


165 253 

37 22 

Accrued personnel services costs (Note 10) 202 275 

12. CURRENT / NON CURRENT LIABILITIES 

Unsecured borrowings 

NSW Treasury Corporation fixed term loans – Current 

Face value 19,370 27,147 

19,370 27,147 

NSW Treasury Corporation fixed term loans – Non-current 

Face value 180,535 105,867 

Unamortised premium 6,036 1,417 

186,571 107,284 

Total borrowings 205,941 134,431 

Repayment of borrowings 

Less than one year 19,369 27,147 

Between one and five years 86,713 56,229 

Later than five years 99,859 51,055 

Total 205,941 134,431 


135




Other non-current liabilities 2008 2007 

$’000 $’000 

Personnel services provision 1 1 

Leasehold obligations 174 174 

Total 175 175 

Total non-current liabilities 186,746 107,459 

Financing facilities: 

The Corporation has access to the following: 

Total facilities available 

NSW Treasury Corporation – 

Managed debt portfolio for the acquisition of the South West and 

North West rail corridor 268,000 120,500 

Managed debt portfolio for SRDF loan 96,777 96,221 

Commercial Bank 

Direct entry negotiation authority 50,000 50,000 

Cheque cashing authorities 10 10 

364,777 216,721 

Facilities used at reporting date 

NSW Treasury Corporation – 

Managed debt portfolio for the acquisition of the South West rail 

corridor 109,164 38,210 

Managed debt portfolio for SRDF loan 96,777 96,221 

Commercial Bank 

Direct entry negotiation authority – – 

Cheque cashing authorities – – 

205,941 1334,431 





13. EQUITY 

Asset 

Accumulated revaluation Total 

funds reserve 2008 

$'000 $'000 $'000 

Opening balance at 1 July 2007 459,813 792,255 1,252,068 

Coastal land revalued – 1,795 1,795 

Transfer from asset revaluation reserve 21,576 (21,576) 

Changes in equity – other than transactions with 

owners as owners: WSPT transfer – refer to note 

14 (174,076) (140,322) (314,398) 

Increment on revaluation of land and buildings – 6,854 6,854 


Closing balance – 30 June 2008 386,477 639,006 1,025,483 

Asset 



$'000 $'000 $'000 

Opening balance at 1 July 2006 441,775 833,926 1,275,701 

Changes in equity – other than transactions with 

owners as owners: DECC transfer – refer to note 

14 (3,172) (49,557) (52,729) 

Increment on revaluation of land and buildings – 13,543 13,543 

Surplus for the year 15,553 – 15,553 

Transfer from asset revaluation reserve 5,657 (5,657) – 

Closing balance – 30 June 2007 459,813 792,255 1,252,068 

14. TRANSFER OF EQUITY 

Asset 



$'000 $'000 $'000 

Amounts recognised as equity movements 

during 2007-08 174,076 140,322 314,398 

During the financial year the Corporation Sole recognised a transfer of equity in relation the transfer of 

various parcels of open space land that were transferred to the Western Sydney Parklands Trust 

(WSPT) 

Asset 



$'000 $'000 $'000 

Amounts recognised as equity movements 

during 2006-07 3,172 49,557 52,729 

In the previous financial year the Corporation Sole recognised a transfer of equity in relation the 

transfer of various parcels of open space land that were transferred to the Department of Environment 

and Climate Change. 


137




15. NOTES TO CASH FLOW STATEMENT 

Cash and cash equivalents 

For the purpose of the Cash Flow Statement, cash includes cash on hand and cash at bank as well 

as HourGlass cash investments held with NSW Treasury Corporation. Cash at the end of the 

financial year as shown in the Cash Flow Statement reconciled to the Balance Sheet in Note 6. 

Reconciliation of surplus for the year to net cash flows from operating activities. 

2008 2007 

$'000 $'000 


Properties recognised in other revenue (50,600) – 


Net gain on disposal of land (29,913) (6,989) 

(Increase) / decrease in receivables (945) (665) 

Increase / (decrease) in payables 3,099 (4,359) 

Increase / (decrease) in personnel services provision (87) 250 

Net cash flows from operating activities 726 3,858 


2008 2007 

$'000 $'000 

(a) Operating lease commitments 

Less than one year – 184 

Between one and five years – 921 

Later than five years – – 

Total (including GST) – 1,105 

(b) Other expenditure commitments 

Less than one year 134 – 


Input tax credits on the above commitments is 12. 

17. GRANT COMMITMENTS 

As at 30 June 2008, outstanding commitments for grant projects amounted to $4.4 million (2007 – 

$3.1 million). 

The total commitments above includes input tax credits of .501 million for Corporation Sole that are 

expected to be recovered from the ATO. 

The contractual timeframes of these projects all fall within the category of one year or less. 






There are future claims against the Corporation under the Land Acquisition (Just Terms 

Compensation) Act 1991, for payment for the compulsory acquisitions of land in the Sydney 

Region. Negotiations and legal proceedings will determine the final cost and timing of payments. 

EXIT PUT OPTION 

The Corporation Sole and Landcom have entered into a contract with regards to the Landcom 

Participation Agreement – Rouse Hill Regional Centre. The parties agreed that the participation fee 

will be paid by Landcom in 10 annual payments of $3,500,000. Either party to the agreement can 

exercise the exit put option. 

Consequence if this option is exercised. 

One party to exit 

The Premier and the Treasurer may impose such terms and conditions as they see fit including the 

minister continuing to hold title to the land. 

Minister and Landcom to exit 

If both the Minister and Landcom wish to exercise the Exit Put Option then the purchase price paid 

by the development under the Exit Put Option sale contract will form part of the Minister’s Financial 

return. 

As at the 30 of June neither party has exercised the exit put option. We are unable to quantify the 

effect in financial terms as to the exact circumstances of exiting the option are unknown. 

19. CONTINGENT ASSETS 

There are no known contingent assets as at the date of this report. 


The Corporation Sole’s principal financial instruments are outlined below. These financial 

instruments arise directly from the Corporation Sole operations or are required to finance the 

Corporation Sole operations. The Corporation does not enter into or trade financial instruments, 

including derivative financial instruments, for speculative purposes. 

The Corporation Sole main risks arising from financial instruments are outlined below, together with 

the Corporation Sole objectives, policies and processes for measuring and managing risk. Further 

quantitative and qualitative disclosures are included throughout this financial report. 

The Director-General has overall responsibility for the establishment and oversight of risk 

management and reviews and agrees policies for managing each of these risks. Risk management 

policies are established to identify and analyse the risks faced by the Corporation, to set risk limits 

and controls to monitor risks. Compliance with policies is reviewed by the Audit Committee on a 

continuous basis. 


139





Financial assets Note Category 

Class: 

Cash and cash 

equivalents 

6 

1 7 Loans and receivables (at 

Receivables 

amortised cost) 

Carrying 

amount 

2008 

$’000 

Carrying 

amount 

2007 

$’000 

N/A 62,930 44,277 

6,121 4,016 

Financial liabilities Note Category 

Class: 

2 10 Financial liabilities measured at 

Payables 

amortised cost 

12 Financial liabilities measured at 

Borrowing TCorp 

amortised cost 

Carrying 

amount 

2008 

$’000 

Carrying 

amount 

2007 

$’000 

42,315 39,216 

205,941 134,431 

Notes 

1. Excludes statutory receivables and prepayments (i.e. not within scope of AASB 7). 

2. Excludes statutory payables and unearned revenue (i.e. not within scope of AASB 7). 


Credit risk arises when there is the possibility of the Corporation Sole’s debtors defaulting on their 

contractual contributions, resulting in a financial loss to the Corporation. The maximum exposure to 

credit risk is generally represented by the carrying amount of the financial assets (net of any 

allowance for impairment). 

Credit risk arises from the financial assets of the Corporation, including cash, receivables, and 

authority deposits. No collateral is held by the Corporation. The Corporation has not granted any 

financial guarantees. 

Cash 

Cash comprises cash on hand and bank balances within the NSW Treasury Banking System. 

Interest is earned on daily bank balances at the monthly average NSW Treasury Corporation 11.00 

am unofficial cash rate, adjusted for a management fee to NSW Treasury. 

HourGlass investment facilities 

The Corporation Sole has investments in Hour Glass investment facilities with Tcorp's, which has 

been rated AAA by Standard and Poors. 

The Corporation's investments are represented by a number of units in managed investments 

within the facilities. 

Tcorp appoints and monitors fund managers and establishes and monitors the application of 

appropriate investment guidelines. 

None of these assets are past due or impaired. 





30 June 2008 

Weighted 

average 

effective 

interest rate 

Floating 

interest rate 

1 year 

or less 

1 to 5 

years 

More 

than 5 

years 

Non 

interest 

bearing 

Total 

carrying 

amount 

as per 

the 

Balance 

Sheet 

Percentage Percentage $'000 $'000 $'000 $'000 $'000 


Cash 5.75 30,583 – – – 30,583 

HourGlass 

investments 

Hour Glass 

investments / cash 

facility 

6.14 

32,347 – – – 32,347 

Total financial 

assets 62,930 – – – 62,930 

30 June 2007 


Weighted 

average 

effective 

interest rate 

Floating 

interest rate 

1 year 

or less 

1 to 5 

years 

More 

than 5 

years 

Non 

interest 

bearing 

Total 

carrying 

amount 

as per 

the 

Balance 

Sheet 

Cash 5.13 5,422 – – – 5,422 

HourGlass 

investments 

Cash facility 5.68 38,855 – – – 38,855 


assets 44,277 – – – 44,277 



all debtors is reviewed on an ongoing basis. Debts, which are known to be uncollectible, are written 

off. 

An allowance for impairment is raised when some doubt as to collection exists. The credit risk is 



The Corporation is not materially exposed to concentrations of credit risk to a single trade debtor or 

group of debtors. Based on past experience, debtors that are not past due and not less than three 

months past due are not considered impaired and together these represent 98 per cent of the total 

trade debtors. There are no debtors which are currently not past due or impaired whose terms have 

been renegotiated. 


141




Total 1,2 

Past due but not 

impaired 1,2 

$’000 

Considered 

impaired 1,2 

$’000 

2008 

< 3 months overdue - - - 


- - - 

overdue 

> 6 months overdue - - - 

2007 

< 3 months overdue 24 24 - 


- - - 

overdue 

> 6 months overdue - - - 

Notes 

1. Each column in the table reports ‘gross receivables’. 

2. The ageing analysis excludes statutory receivables, as these are not within the scope of AASB 

7 and excludes receivables that are not past due and not impaired. Therefore, the ‘total’ will 

not reconcile to the receivables total recognised in the balance sheet. 


Liquidity risk is the risk the Corporation will be unable to meet its payment obligations when they 

fall due. The Corporation continuously manages risk through monitoring future cash flows and 

maturities planning to ensure adequate holding of high quality liquid assets. The objectives is to 

maintain a balance between continuity of funding and flexibility through the use of overdrafts, loans 

and other advances during the current and prior years, there were not defaults or braches on any 

loan payable. 

No assets have been have been pledged as collateral. The Corporation Sole exposure to liquidity 

risk is deemed insignificant based on prior periods’ data and current assessment of risk. 


received, wether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in 




payment. 

The tables below summarises the maturity profile of the Corporation Sole financial liabilities, 

together with the interest rate exposure. 





Maturity analysis and interest rate exposure of payables 

Weighted 

average 

effective 

interest 

rate 

Nominal 

amount 1 

Fixed 

interest 

rate 


$’000 

Variable 

interest 

rate 

Noninterest 

bearing 

5 

years 

2008 – 

Payables – 42,315 – – 42,315 42,315 – – 

– 42,315 – – 42,315 42,315 – – 

2007 

Payables – 39,216 – – 39,216 39,216 – – 

– 39,216 – – 39,216 39,216 – – 

Maturity analysis of borrowings 

Contractual maturity analysis as at 30 June 2008 

Undiscounted cash flows 

Corporation Sole EPA 

and rail 

1 year or 

less 

1 to 5 

years 

More than 

5 years 

Total cash 

flows 

Market 

value 

Call deposits 34 – – 34 34 

Short-term borrowings 19,678 – – 19,678 19,476 

Fixed rate deposits 11,116 120,019 118,437 249,572 177,873 

30,828 120,019 118,437 269,284 197,383 

Contractual maturity analysis as at 30 June 2007 

Undiscounted cash flows 

Corporation Sole EPA and 

rail 

1 year or 

less 

1 to 5 

years 

More than 

5 years 

Total cash 

flows 

Market 

value 

Call deposits 139 – – 139 139 

Short-term borrowings 2,211 – – 2,211 2,204 

Fixed rate deposits 32,974 77,999 62,684 173,657 129,550 

35,324 77,999 62,684 176,007 131,893 


143




Interest rate exposure of borrowings 

Weighted 

average 

effective 

interest rate 

Floating 

interest 

rate 

1 year or 

less 

1 to 5 

years 

More 

than 5 

years 

Non 

interest 

bearing 

Total 

carrying 

amount as 

per the 

Balance 

Sheet 

30 June 2008 

Percentage $'000 $'000 $'000 $'000 $'000 $'000 


Interest bearing 6.65 – 19,370 – – – 19,370 

Interest bearing 6.75 – – 86,714 – – 86,714 

Interest bearing 6.39 – – – 99,857 – 99,857 

Other – – – – – – 


liabilities – 19,370 86,714 99,857 – 205,941 

30 June 2007 

Weighted 

average 

effective 

interest rate 

Floating 

interest 

rate 

1 year or 

less 

1 to 5 

years 

More 

than 5 

years 

Non 

interest 

bearing 

Total 

carrying 

amount as 

per the 

Balance 

Sheet 


Interest bearing 6.28 – 27,147 – – – 27,147 

Interest bearing 6.14 – – 56,229 – – 56,229 

Interest bearing 6.15 – – – 51,055 – 51,055 

Other – – – – – – 


liabilities – 27,147 56,229 51,055 – 134,431 

Notes: 

1. The amounts disclosed are the contractual undiscounted cash flows of each class of financial 

liabilities and therefore will not reconcile to the balance sheet. 

(d) Market risk 


because of changes in market prices. The Corporation’s exposure to market risk are primarily 

through interest rate risk on the Corporation’s borrowing and other price risks associated with the 

movement in the unit price of the Hour Glass investment facilities. The Corporation has no 

exposure to foreign currency risk and does not enter into commodity contracts. 

The effect on profit and equity due to a reasonably possible change in risk variable is outlined in 

the information below, for interest rate risk and other price risk. A reasonably possible change in 

risk variable has been determined after taking into account the economic environment in which the 

Corporation operates and the time frame for the assessment (i.e. until the end of the next reporting 


The analysis is performed on the same basis for 2007. The analysis assumes that all other 

variables remain constant. 


Exposure to interest rate risk arises primarily through the Corporation’s interest bearing liabilities. 

This risk is minimised by undertaking mainly fixed rate borrowings, primarily with NSW TCorp. 





The Corporation does not account for any fixed rate financial instruments at fair value through profit 

or loss or as available-for-sale. Therefore, for these financial instruments, a change in interest rates 

would not affect profit or loss or equity. A reasonably possible change of +/- 1% is used, consistent 

with current trends in interest rates. The basis will be reviewed annually and amended where there 

is a structural change in the level of interest rate volatility. The Corporation Sole exposure to 


Carrying –1 per cent 1 per cent 


$’000 $’000 $’000 $’000 $’000 

2008 


Cash and cash 

equivalents 

62,930 (629.3) (629.3) 629.3 629.3 



Payables 42,315 – – – – 

Borrowings 20,594.1 2,059.41 2,059.41 (2,059.41) (2,059.41) 

2007 


Cash and cash 

equivalents 44,277 (442.77) (442.77) 442.77 442.77 

Receivables 4,015 – 

– – – 


Payables 39,216 – – – – 

Borrowings 13,443.1 1,344.31 1,344.31 (1,344.31) (1,344.31) 

Other price risk – TCorp Hour Glass facilities 

Exposure to 'other price risk' primarily arises through the investment in the TCorp Hour Glass 

investment facilities, which are held for strategic rather than trading purposes. The Corporation 

Sole has no direct equity investments. The Corporation Sole holds units in the following Hour-Glass 

investment trusts: 

Facility Investment sectors Investment 

horizon 

Cash facility Cash, money market instruments 

Up to 1.5 years 

(pre-June 2008 – 

Up to 2 years) 

2008 2007 

$'000 $'000 

32,347 38,855 


145




The unit price of each facility is equal to the total fair value of net assets held by the facility divided 

by the total number of units on issue for that facility. Unit prices are calculated and published daily. 

NSW TCorp is trustee for each of the above facilities is required to act in the best interest of the 

unit holders and to administer the trusts in accordance with the trust deeds. As trustee, TCorp has 

appointed external managers to manage the performance and risks of each facility in accordance 

with a mandate agreed by the parties. However, TCorp acts as manager for part of the Cash 

Facility. A significant portion of the administration of the facilities is outsourced to an external 

custodian. 

Investment in the Hour Glass facilities limits the Corporation Sole's exposure to risk, as it allows 

diversification across a pool of funds with different investment horizons and a mix of investments. 

NSW TCorp provides sensitivity analysis information for each of the investment facilities, using 

historically based volatility information collected over a ten year period, quoted at two standard 

deviations (i.e. 95 per cent probability). The TCorp Hour Glass Investment facilities are designated 

at fair value through profit or loss and therefore any change in unit price impacts directly on profit 

(rather than equity). A reasonably possible change is based on the percentage change in unit price 

(as advised by TCorp) multiplied by the redemption value as at 30 June each year for each facility 

(balance from Hour Glass statement). 

Impact on profit/loss 

Change in 2008 2007 

unit price $'000 $'000 

Hour Glass Investment – cash facility –1% (323) (198) 

(c) 

Fair value 

Financial instruments are generally recognised at cost, with the exception of the TCorp Hour-Glass 

facilities, which are measured at fair value. As discussed, the value of the Hour Glass investments 

is based on the Corporation Sole's share of the value of the underlying assets of the facility, based 

on the market value. All of the Hour Glass facilities are valued using 'redemption' pricing. 

The amortised cost of financial instruments recognised in the balance sheet approximates the fair 

value, because of the short-term nature of many of the financial instruments. 


The Corporation is not aware of any material non-adjusting events, as defined by AASB 110 

Events after Balance Sheet date which would have a material financial effect on these financial 

statements 




“Minister Administering the 

Heritage Act 1977” 

Financial Report 


CONTENTS 

Performance Report 148 

Independent Audit Report 149 

Statement from the Minister 151 

Income Statement 152 

Statement of Recognised Income and Expense 153 



Notes to the Financial Statement 156

Corporation Sole – Minister administering the 

Heritage Act 1977 

Director’s overview 

The Corporation Sole is established under the Heritage Act 1977 to administer the financial operations of the Heritage 

Act. The Corporation Sole receives fees and charges under the Heritage Act. It may also acquire, devise or bequest any 

property for the purposes of the Act, and make grants and loans for the purpose of promoting, and assisting the 

conservation of, items of environmental heritage. 

Financial highlights 

As at 30 June 2008, the Corporation Sole had net assets totalling $9.156 million. The major items of the Corporation 

Sole’s asset base are heritage land and buildings of $4.19 million, heritage assistance loans of $1.73 million, and 

medium-term investments held through the NSW Treasury Corporation of $1.6 million. 

The Corporation Sole had: 

• earned a profit of $538,000 

• total revenues of $969,000 

• total expenses of $431,000 

• nil borrowings 

• received income from statutory fees and other charges of $0.59 million 

• income from interest on the Corporation Sole’s investments totalling $0.067 million 

• expenditure of $0.431 million, primarily related to administration costs of $0.403 million. 



149



151

Corporation Sole "Minister Administering the Heritage Act 1977” 

Income Statement 


2008 2007 

Notes $'000 $'000 

Revenue 

Interest on investments 67 216 

Statutory fees and other charges 590 673 

Interest on repayable loans 62 27 

Other contributions 250 –- 

Total revenue 969 916 

EXPENSES 

Administration expenses 3(a) 403 692 

Depreciation and amortisation expenses 3(b) 15 15 

Grants and contributions 3(c) 13 220 

Total expenses excluding losses 431 927 

Operating result for the year 538 (11) 






2008 2007 

Notes $'000 $'000 

Other net increases / (decreases) in equity – – 

- Asset transferred to Historic Houses Trust – (750) 

Total income and expense recognised directly in equity – (750) 


Total income and expense recognised for the year 10 538 (761) 



153


Balance Sheet 


2008 2007 

Notes $'000 $'000 

ASSETS 


Cash and cash equivalents 4 1,643 1,290 

Receivables 5 62 43 

Financial assets at fair value 6 1,601 1,612 

Total current assets 3,306 2,945 


Receivables 5 1,738 1,780 

Property plant and equipment 7 4,190 4,205 

Total non-current assets 5,928 5,985 

Total assets 9,234 8,930 

LIABILITIES 


Payables 9 78 312 

Total current liabilities 78 312 

Total liabilities 78 312 

Net assets 9,156 8,618 

EQUITY 

Accumulated funds 10 9,156 8,618 

Total equity 9,156 8,618 






2008 2007 

Notes $'000 $'000 


Payments 

Administrative expenses (436) (630) 

Grants and contributions (13) (220) 

Total payments (449) (850) 

Receipts 

Interest received 53 218 

Other 634 634 

Total receipts 687 852 

Net cash flows from operating activities 12 238 2 

CASH FLOWS FROM INVESTING ACTIVITIES 

Repayable conservation loans 104 209 

Investments 11 (206) 

Net cash flows from investing activities 115 3 

Net increase / (decrease) in cash and equivalents 353 5 

Cash and Cash Equivalents at the beginning of the financial year 1,290 1,285 

CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR 4 1,643 1,290 



155


Notes to the Financial Statements 


1. STATEMENT OF PRINCIPAL ACTIVITY 

The Corporation Sole "Minister administering the Heritage Act 1977" (Corporation Sole) was constituted under the 

Heritage Act 1977. The main activity is the administration of finance operations of the Heritage Act 1977. 

The Corporation Sole is a single not-for-profit entity. 

The financial report for the year ended 30 June 2008 has been authorised for issue by the Minister for Planning on 

20 October 2008. 


(a) 


The Corporation Sole's financial report is a general purpose financial report which has been prepared in accordance 

with: 

 

 

applicable Australian Accounting Standards (which include Australian Accounting Interpretation) 

the requirements of the Public Finance and Audit Act 1983 and Regulation 

Property and financial instruments are measured at fair value. Other financial report items are prepared in 

accordance with the historical cost convention. 

Judgements, key assumptions and estimations that management has made for the preparation of these financial 

statements are disclosed in the relevant notes to the financial statements. 

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency. 

(b) 

Statement of compliance 

The financial statements and notes comply with Australian Accounting Standards, which include Australian 

Accounting interpretations. 

(c) 


Income is measured at the fair value of the consideration or contribution received or receivable. 

Other contributions 

Contributions from other bodies (including grants and donations) are generally recognised as revenue when the 

agency obtains control over the assets comprising the contributions. Control over contributions is normally obtained 

upon the receipt of cash. 

(d) 

Insurance 

The Corporation Sole's insurance activities are conducted through the NSW Treasury Managed Fund Scheme of 

self insurance for Government agencies. The expense (premium) is determined by the Fund Manager based on 

past claim experience. 

(e) 

Conservation grants, loans and guarantees 

Section 106 of the Heritage Act 1977 allows the payment of Conservation Grants and Loans to private individuals 

and organisations. The Loans are repayable and may be interest bearing or interest free. The Act also allows the 

Corporation Sole to guarantee bank loans that have been made for certain conservation purposes. No current 

guarantees are in place with the Corporation Sole (2007: Nil). 

(f) 


Revenues, expenses and assets are recognised net of the amount of GST, except that: 

 

 

the amount of GST incurred by the Corporation Sole as a purchaser that is not recoverable from the Australian 

Taxation Office is recognised as part of the cost of acquisition of an asset or as part of an item of expense; and 






2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 

(g) 

Assets 

(i) 


The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by 

Corporation Sole. Cost is the amount of cash or cash equivalents paid or the fair value of the other 

consideration given to acquire the asset at the time of its acquisition or construction or, where applicable, the 

amount attributed to that asset when initially recognised in accordance with the requirements of other 

Australian Accounting Standards. 

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at 

their fair value at the date of acquisition. 

Fair value means the amount for which an asset could be exchanged between knowledgeable, willing parties 

in an arm's length transaction. 

Where payment for an asset is deferred beyond normal credit terms, its cost is the cash price equivalent, i.e. 

deferred payment amount is effectively discounted at an asset-specific rate. 

(ii) 


Property, plant and equipment and intangible assets costing $5,000 and above individually (or forming part of 

a network costing more than $5,000) are capitalised. 

(iii) 


Physical non-current assets are valued in accordance with the ‘Valuation of Physical Non-Current Assets at 

Fair Value’ Policy and Guidelines Paper (TPP 07-1). This policy adopts fair value in accordance with AASB 

116 Property, Plant and Equipment. 

Property, plant and equipment is measured on an existing use basis where there are no feasible alternative 

uses in the existing natural, legal, financial and socio-political environment. However, in the limited 

circumstances where there are feasible alternative uses, assets are valued at their highest and best use. 

Fair value of property, plant and equipment is determined based on the best available market evidence, 

including current market selling prices for the same or similar assets. Where there is no available market 

evidence, the asset's fair value is measured at its market buying price, the best indicator of which is 

depreciated replacement cost. 

The Corporation Sole revalues each class of property at least every five years or with sufficient regularity to 

ensure that the carrying amount of each asset in the class does not differ materially from its fair value at 

reporting date. The last revaluation was completed on 30 June 2006 and was based on an independent 

assessment. 

Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that 

an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an 

expense in the surplus / deficit, the increment is recognised immediately as revenue in the surplus / deficit. 

Revaluation decrements are recognised immediately as expenses in the surplus / deficit, except that, to the 

extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they 

are debited directly to the asset revaluation reserve. 

As a not-for-profit entity, revaluation increments and decrements are offset against one another within a class 

of non-current assets, but not otherwise. 

Where an asset that has previously been revalued is disposed of, any balance remaining in the asset 

revaluation reserve in respect of that asset is transferred to accumulated funds. 


157





(iv) 


As a not-for-profit entity with no cash generating units, the Corporation Sole is effectively exempted from 

AASB 136 Impairment of Assets and impairment testing. This is because AASB 136 modifies the 

recoverable amount test to the higher of fair value less costs to sell and depreciated replacement cost. This 

means that, for an asset already measured at fair value, impairment can only arise if selling costs are 

material. Selling costs are regarded as immaterial. 

(v) 


Except for certain heritage assets, depreciation is provided for on a straight-line basis for all depreciable 

assets so as to write off the depreciable amount of each asset as it is consumed over its useful life to 

Corporation Sole. 

All material separately identifiable components of assets are depreciated over their shorter useful lives. 

Land is not a depreciable asset. 

Depreciation rates 

Percentage rate 

Property 

Heritage building 2.50 

(vi) 

Major inspection cost 

When each major inspection is performed, the labour cost of performing major inspections for faults is 

recognised in the carrying amount of an asset as a replacement of a part, if the recognition criteria are 

satisfied. 

(vii) 

Restoration cost 

The estimated cost of dismantling and removing an asset and restoring the site is included in the cost of an 

asset, to the extent it is recognised as a liability. 

(viii) 

Maintenance 

Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to 

the replacement of a component of an asset, in which case the costs are capitalised and depreciated. 

(ix) 

Trust funds 

The Corporation Sole receives monies in a trustee capacity for of the Old Government House archaeological 

site at Port Macquarie as set out in Note 13. As the Corporation Sole performs only a custodial role in 

respect of these monies, and because the monies cannot be used for the achievement of Corporation Sole's 

own objectives, these funds are not recognised in the financial statements. 

(h) 

Payables 

These amounts represent liabilities for goods and services provided to the agency and other amounts. Payables are 

recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement is at 

amortised cost using the effective interest method. Short-term payables with no stated interest rate are measured at 

the original invoice amount where the effect of discounting is immaterial. 






(i) 

Comparative information 

Except when an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed 

in respect of the previous period for all amounts reported in the financial statements. 

(j) 


Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet 

effective have not been adopted for the financial reporting period ended 30 June 2008. These are listed as follows: 

AASB 8 and AASB 2007-3 are effective for financial reporting periods commencing on or after 1 January 2009. 

AASB1049 Whole of Government and General Government Sector Financial Reporting applies to reporting periods 

beginning on or after 01 July 2008. 

Revised AASB 101 Presentation of Financial Statements and AASB 2007-8 Amendments to Australian Accounting 

Standards arising from AASB 101. A revised AASB 101 was issued in September 2007 and is applicable for 

financial reporting periods beginning on or after 1 January 2009. 

Revised AASB 123 Borrowing Costs and AASB 2007-6 Amendments to Australian Accounting Standards arising 

from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12]. 

The revised AASB 123 is applicable to financial reporting periods commencing on or after 1 January 2009. 

In the period of initial application, the Corporation Sole does not anticipate any material impact on the figures 

reported in the financial statements. 

3. EXPENSES EXCLUDING LOSSES 

2008 2007 

$'000 $'000 

(a) Administration expenses include the following: 

Board fees 119 163 

Consultancy fees 17 23 

General administration (including transfer to Heritage Office) 95 399 

Travel 3 9 

Auditors remuneration – Audit of financial reports 15 15 

Corporate services 17 16 

Productivity Commission on Historic Heritage – 16 

Repairs and routine maintenance 137 51 

403 692 

2008 2007 

$'000 $'000 

(b) Depreciation and amortisation expense 

Depreciation 

Buildings 15 15 

15 15 

2008 2007 

$'000 $'000 

(c) Grants and contributions 

Grants and contributions 13 220 

13 220 


159




4. CASH AND CASH EQUIVALENTS 

2008 2007 

$'000 $'000 

Cash at bank and on hand 1,011 699 

Treasury Corporation (Hour-Glass) cash facility 632 591 

1,643 1,290 

For the purposes of the Cash Flow Statement, cash and cash equivalents include cash at bank, cash on hand, short 

term deposits and bank overdraft. 

Cash and cash equivalent assets recognised in the balance sheet are reconciled at the end of the financial year to 

the Cash Flow Statement as follows: 

Cash and cash equivalents (per Balance Sheet) 1,643 1,290 

Closing cash and cash equivalents (per Cash Flow Statement) 1,643 1,290 

5. RECEIVABLES 

2008 2007 

$'000 $'000 

Current receivables 

Sundry debtors 62 43 

62 43 

No allowance for impairment has been made as all amounts are considered to be collectable. 

2008 2007 

$'000 $'000 

Non-current receivables 

Loans receivable 1,270 1,374 

Interest on repayable loans 468 406 

1,738 1,780 

Total receivables 1,800 1,823 


Corporation Sole "Minister administering the Heritage Act 1977” 



6. FINANCIAL ASSETS AT FAIR VALUE 

2008 2007 

$'000 $'000 

Treasury Corporation (Hour-Glass) medium-term growth investments 1,601 1,612 

1,601 1,612 

Treasury Corporation (Hour-Glass) investments are classified as fair value through profit and loss (refer Note 14). 

Treasury Corporation (Hour-Glass) investments do not include Trust Funds of $670,590 invested with Treasury 

Corporation (refer Note 13).'For further information regarding credit risk, liquidity risk, and market risk arising from 

financial instruments (refer to Note 14)". 

7. PROPERTY, PLANT AND EQUIPMENT 

Land and 

buildings 

$'000 

At 1 July 2007 

Gross carrying amount 4,250 

Less: Accumulated depreciation (45) 

Net carrying amount at fair value 4,205 

At 30 June 2008 




Reconciliation 

A reconciliation of the carrying amount of each class of property, plant and equipment at the beginning and end of the 

current reporting period is set out below. 

Land and 

buildings 

$'000 



Equity transfer – 

Depreciation expense (15) 

Net carrying amount at end of year 4,190 


161




Land and 

buildings 

$'000 

At 1 July 2006 




At 30 June 2007 





A reconciliation of the carrying amount of each class of property, plant and equipment at the beginning and end of the 

previous reporting period is set out below. 

Land and 

buildings 

$'000 



Equity transfer (750) 

Depreciation expense (15) 

Net carrying amount at end of year 4,205 

8. RESTRICTED ASSETS 

Productivity Commission on Historic Heritage 

The Corporation Sole holds $136,282 in cash and cash equivalents (Note 4) for the preparation of a submission to the 

Productivity Commission on economic, social and environmental value of heritage on behalf of the States, Territories, 

Commonwealth and New Zealand. 

2008 2007 

$'000 $'000 

Cash balance at the beginning of the year 136 152 

Less: Expenditure – (16) 

Cash balance at the end of the year 136 136 

Parramatta Heritage Precinct Project 

The Corporation Sole holds $249,500 in cash and cash equivalents (Note 4) for the preparation of a Parramatta precinct 

National Heritage List nomination and comprehensive interpretation and tourism plan for the Parramatta precinct. 

2008 2007 

$'000 $'000 

Cash balance at the beginning of the year – – 

Add: Other contributions 250 – 

Less: Expenditure – – 

Cash balance at the end of the year 250 – 





9. PAYABLES 

2008 2007 

$'000 $'000 

Other operating expenses 62 13 

Creditors 16 299 

78 312 

10.CHANGES IN EQUITY 

Total equity 

2008 2007 

$'000 $'000 

Entity 

Balance at the beginning of the year 8,618 9,379 

Changes in equity – transactions with owners as owners 

Asset transferred to Historic Houses Trust – (750) 

Total – (750) 

Changes in equity – other than transactions with owners as owners 


Total 538 (11) 

Balance at the end of the financial year 9,156 8,618 

11.CONTINGENT LIABILITIES AND CONTINGENT ASSETS 

The Crown Solicitor is acting in a matter relating to a Deed of Agreement to a lease entered into by the Corporation Sole 

with respect to the property ‘Hillview’, owned by the Corporation Sole. 

At this time the Crown Solicitor's Office has advised that it is not certain that the Lessee could establish such, or any 

other, claim against the Corporation Sole and has indicated that the potential liability is an estimate of what may be the 

maximum amount payable. It is estimated that the Crown Solicitor's fee will be $166,000. It is anticipated any liability will 

be met by the Treasury Managed Fund. 

12.RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO NET COST OF SERVICES 

2008 2007 

$'000 $'000 

Operating result 538 (11) 


Increase / (decrease) in payables (234) 18 

Decrease / (increase) in receivable and other assets (81) (20) 

Net cash flow from operating activities 238 2 


163




13 TRUST FUNDS 

The following funds are excluded from the Financial Statements as the Corporation Sole must use them for the 

conservation purposes as detailed in agreements with the State and Commonwealth Governments as shown. 

Former Old Government House at Port Macquarie 

The Corporation Sole holds $670,590K (2007: $678,861) in trust for the conservation of the Old Government House 

archaeological site at Port Macquarie. 

2008 2007 

$'000 $'000 

Cash balance at the beginning of the year 679 715 

Add: Receipts – 34 

Less: Expenditure (4) (70) 

Cash balance at the end of the financial year 675 679 

14 FINANCIAL INSTRUMENTS 

The Corporation Sole's principal financial instruments are outlined below. These financial instruments arise directly from 

the Corporation Sole's operations or are required to finance the Corporation Sole's operations. The Corporation Sole 

does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. 


Financial assets Note Category 

Carrying 

amount 

Carrying 

amount 

Class: 2008 2007 

$'000 

$'000 

Cash and cash equivalents 4 N/A 1,643 1,290 

Receivables 

5 Loans and receivables (at amortised 

cost) 1,790 1,819 

Financial assets at fair value 

6 At fair value through profit or loss - 

classified at held for trading 1,601 1,612 


Carrying 

amount 

Carrying 

amount 

Class: 2008 2007 

$'000 

$'000 

Payables 9 


amortised cost 70 309 


Credit risk arises when there is the possibility of the Corporation Sole's debtors defaulting on their contractual 

obligations, resulting in a financial loss to the Corporation Sole. The maximum exposure to credit risk is generally 

represented by the carrying amount of the financial assets (net of any allowance for impairment). 

Credit risk arises from the financial assets of the Corporation Sole, including cash, receivables and authority deposits. No 

collateral is held by the Corporation Sole. The Corporation Sole has not granted any financial guarantees. 

Credit risk associated with the Corporation Sole's financial assets, other than receivables, is managed through the 

selection of counterparties and establishment of minimum credit rating standards. Authority deposits held with NSW 

TCorp are guaranteed by the State. 





Cash 

Cash comprises cash on hand and bank balances within the NSW Treasury Banking System. Interest is earned on daily 

bank balances at the monthly average NSW Treasury Corporation (TCorp) 11.00 am unofficial cash rate, adjusted for a 

management fee to NSW Treasury. The TCorp Hour Glass cash facility is discussed in paragraph (d) below. 


All trade debtors are recognised as amounts receivable at balance date. There are no debtors which are currently not 

past due or impaired whose terms have been recognised. 


Liquidity risk is the risk that the Group will be unable to meet its payment obligations when they fall due. The Group 

continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of 

high quality liquid assets. The objective is to maintain a balance between continuity of funding and flexibility through the 

use of overdrafts, loans and other advances. 

The liabilities are recognised for amounts due to be paid in the future for goods or services received, whether or not 

invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out in 

Treasurer’s Direction 219.01. If trade terms are not specified, payment is made no later than the end of the month 

following the month in which an invoice or a statement is received. Treasurer’s Direction 219.01 allows the Minister to 

award interest for late payment. No interest was applied during the year (2007 – nil]. 


Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in 

market prices. The Corporation Sole's exposures to market risk are primarily through interest rate risk on the Corporation 

Sole's borrowings and other price risks associated with the movement in the unit price of the Hour Glass Investment 

facilities. The Corporation Sole has no exposure to foreign currency risk and does not enter into commodity contracts. 

The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the information below, 

for interest rate risk and other price risk. A reasonably possible change in risk variable has been determined after taking 

into account the economic environment in which the Corporation Sole operates and the time frame for the assessment 

(i.e. until the end of the next financial reporting period). The sensitivity analysis is based on risk exposures in existence at 

the balance sheet date. The analysis is performed on the same basis for 2007. The analysis assumes that all other 

variables remain constant. 


Exposure to interest rate risk arises primarily through the Corporation Sole's interest bearing liabilities. This risk is 

minimised by undertaking mainly fixed rate borrowings, primarily with NSW TCorp. The Corporation Sole does not 

account for any fixed rate financial instruments at fair value through profit or loss or as available for sale. Therefore, for 

these financial instruments, a change in interest rates would not affect profit or loss or equity. A reasonably possible 

change of +/- 1% is used, consistent with current trends in interest rates. The basis will be reviewed annually and 

amended where there is a structural change in the level of interest rate volatility. The Corporation Sole's exposure to 


$'000 

Carrying 

amount -1 per cent +1 per cent 

Profit Equity Profit Equity 

2008 


Cash and cash equivalents 1,643 (16) (16) 16 16 

Receivables 1,790 – – –- – 

Financial assets at fair value 1,601 (16) (16) 16 16 


Payables (327) – – – – 


165




2007 


Cash and cash equivalents 1,290 (13) (13) 13 13 


Financial assets at fair value 1,612 (16) (16) 16 16 


Payables (312) – – – – 

Other price risk - TCorp Hour-Glass facilities 

Exposure to 'other price risk' primarily arises through the investment in the TCorp Hour Glass Investment facilities, which 

are held for strategic rather than trading purposes. The Corporation Sole has no direct equity investments. The 

Corporation Sole holds units in the following Hour-Glass investment trusts: 

Facility Investment sectors Investment horizon 2008 2007 

$'000 

$'000 

Cash facility 

Medium-term growth 

facility 

Cash, money market instruments 

Up to 1.5 years 

(pre-June 2008 – up 

to 2 years) 625 585 

Cash, money market instruments, Australian3 years to 7 years 

and International bonds, listed property, 

Australian and International shares 

(pre-June 2008 – 4 

years to 7 years) 1,481 1,490 

The unit price of each facility is equal to the total fair value of net assets held by the facility divided by the total number of 

units on issue for that facility. Unit prices are calculated and published daily. 

NSW TCorp is trustee for each of the above facilities is required to act in the best interest of the unitholders and to 

administer the trusts in accordance with the trust deeds. As trustee, TCorp has appointed external managers to manage 

the performance and risks of each facility in accordance with a mandate agreed by the parties. However, TCorp acts as 

manager for part of the cash facility. A significant portion of the administration of the facilities is outsourced to an external 

custodian. 

Investment in the Hour-Glass facilities limits the Corporation Sole's exposure to risk, as it allows diversification across a 

pool of funds with different investment horizons and a mix of investments. 

NSW TCorp provides sensitivity analysis information for each of the investment facilities, using historically based volatility 

information collected over a ten year period, quoted at two standard deviations (i.e. 95 per cent probability). The TCorp 

Hour-Glass Investment facilities are designated at fair value through profit or loss and therefore any change in unit price 

impacts directly on profit (rather than equity). A reasonably possible change is based on the percentage change in unit 

price (as advised by TCorp) multiplied by the redemption value as at 30 June each year for each facility (balance from 

Hour-Glass statement). 

Impact on profit/loss 

Change in 2008 2007 

unit price $'000 $'000 

Hour Glass Investment – cash facility -1% (6) (6) 

Hour Glass Investment – medium-term growth facility -7.5% (120) (120) 

(e) Fair value 

Financial instruments are generally recognised at cost, with the exception of the TCorp Hour-Glass facilities, which are 

measured at fair value. As discussed, the value of the Hour-Glass Investments is based on the Corporation Sole's share of 

the value of the underlying assets of the facility, based on the market value. All of the Hour-Glass facilities are valued using 

'redemption' pricing. 

The amortised cost of financial instruments recognised in the balance sheet approximates the fair value, because of the 

short-term nature of many of the financial instruments. 






There are no events subsequent to balance date which affect the financial report. 

END OF AUDITED FINANCIAL STATEMENTS 


167


Building Professionals Board 



CONTENTS 


Statement by members of the board 172 


Statement of Changes in Equity 174 



Notes to and forming part of the financial statements 177



171

172 Financial Statements 

Department of Planning Annual Report 2007 – 2008 

3


Operating statement for the year ended 30 June 2008 

Notes 2008 1 March 2007 

to 30 June 2007 

$’000 $’000 

Revenue from ordinary activities 

Contributions 2 3,423 920 

Other income 2 784 268 

Total revenue 4,207 1,188 

Expenses from ordinary activities 

Personnel services 3(a) 2,254 701 

Other operating expenses 3(b) 774 345 

Depreciation and amortisation 3(c) 6 2 

Total expenses excluding losses 3,034 1,048 

Surplus for the year 9 1,173 140 

The accompanying notes form part of this financial report 

4 


173


Statement of recognised income and expense 


Notes 2008 1 March 2007 to 

30 June 2007 

$’000 $’000 

Net (decrease) in equity arising from the 

creation of the Board on 1 March 2007 – (138) 

Total income and expense recognised 

directly in equity – (138) 

Surplus for the year 9 1,173 140 

Total income and expenses recognised 

for the year 1,173 2 


5 



Balance sheet as at 30 June 2008 

Notes 2008 2007 

ASSETS $'000 $'000 


Cash and cash equivalents 4 1,570 – 

Receivables 5 9 301 

Total current assets 1,579 301 

Non current assets 

Property, plant and equipment 6 23 29 

Total non-current assets 23 29 

Total assets 1,602 330 

LIABILITIES 


Payables 7 141 116 


Total current liabilities 425 327 



Total non-current liabilities 2 1 

Total liabilities 427 328 

Net assets 1,175 2 

EQUITY 

Accumulated funds 1,175 2 

Total equity 9 1,175 2 


6 


175


Cash flow statement 


Cash flows from operating activities 

Notes 2008 1 March 2007 to 

30 June 2007 

$'000 

$'000 

Receipts 

Contributions received 3,721 626 

Interest received 52 – 

Other 774 236 

Total receipts 4,547 862 

Payments 

Personnel services 2,180 579 

Other 797 283 

Total payments 2,977 862 

Net cash flows from/(used by) operating 

activities 

10 

1,570 – 

Net increase in cash 1,570 – 

Opening cash and cash equivalents – – 

Closing cash and cash equivalents 1,570 – 


7 


Building Professionals Board for the year ended 30 June 2008 

Notes to and forming part of the Financial Statements 


(a) 


The Building Professionals Board was established under the Building Professionals Act 2005. The Board 

is a not-for-profit entity with no cash generating units. It commenced activities on 17 March 2007. 

The financial report has been authorised for issue by the President on 17 October 2008. 

(b) 


The financial report is a general purpose financial report which has been prepared in accordance with: 

applicable Australian Accounting Standards (which includes Australian Accounting Interpretations) 

the requirements of the Public Finance and Audit Act, the Public Finance and Audit Regulation 

2000 and the Financial Reporting Directions issued by the Treasurer under section 9 (2) (n) of the 

Act. 

Property, plant and equipment, investment property, assets (or disposal groups) held for sale and 

financial assets held for trading and available for sale are measured at fair value. Other financial 

statements items are prepared in accordance with the historical cost convention. 

Judgement, key assumptions and estimations management has made are disclosed in the relevant 

notes to the financial statements. All amounts are rounded to the nearest one thousand dollars and 

are expressed in Australian currency. 

The following is a summary of the material accounting policies adopted by the Corporation in the 

preparation of the financial report. The accounting policies have been consistently applied, unless 

otherwise stated. 

(c) 

(d) 


Interest revenue is recognised to the extent that it is probable that the economic benefits will flow to the 

Board and the revenue can be reliably measured, and control of a right to receive consideration for the 

provision of, or investment in, assets has been attained. 

Personnel services 

The Board’s accounts include a provision for personnel services. This reflects the Board’s liability to 

Department of Planning (DoP) for the recreation leave entitlements due to personnel providing services 

to the Board. 

The Board’s accounts do not include provisions for long service leave or superannuation, nor is there any 

comparable provision for personnel services to reflect these liabilities. All of the Board’s liabilities for long 

service leave and superannuation up to the end of the financial year have been paid. As staff are 

employed by DoP, any unfunded liability for these items has been transferred to the State, in accordance 

with Treasury guidelines. 

(e) 

(f) 

Insurance 

A full comprehensive range of insurances covering areas such as workers compensation, motor 

vehicles, fidelity guarantee, public liability, and Industrial Special Risk is carried by the DoP with the 

Treasury Managed Fund. This coverage extends to the operations of the Building Professionals Board. 

These insurance covers are reviewed periodically to ensure they are adequate. 

Acquisition of assets 

The cost method of accounting is used for the initial recording of all acquisitions of assets controlled 

by the agency. Cost is the amount of cash or cash equivalents paid or the fair value of the other 

consideration given to acquire the asset at the time of its acquisition or construction or, where 

applicable, the amount attributed to that asset when initially recognised in accordance with the specific 

requirements of other Australian Accounting Standards. 

Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at 

the date of acquisition. 


parties in an arm’s length transaction. Where payment for an item is deferred beyond normal credit 

terms, its cost is the cash price equivalent, i.e. the deferred payment amount is effectively 

discounted at an asset-specific rate. 

_______________________________________________________________ 

6 


177



(g) 

(h) 


Property, plant and equipment and intangible assets costing $5,000 and above individually are 

capitalised. 


Physical non-current assets are valued in accordance with the “Valuation of physical non-current 

assets at fair value” Policy and Guidelines Paper (TPP 07-1). This policy adopts fair value in 

accordance with AASB 116 Property, Plant and Equipment. 


alternative uses in the existing natural, legal, financial and socio-political environment. However, in 

the limited circumstances where there are feasible alternative uses, assets are valued at their 



evidence, including current market selling prices for the same or similar assets. Where there is no 

available market evidence, the asset’s fair value is measured at its market buying price, the best 

indicator of which is depreciated replacement cost. 

The agency revalues each class of property, plant and equipment at least every five years or with 


materially from its fair value at reporting date. The last revaluation was deemed to have occurred on 

the establishment of the Department on 29 August 2005. In the former entity the last revaluation was 

completed on 30 June 2005 and was based on an independent assessment. 

Non-specialised assets with short useful lives are measured at depreciated historical cost, as a 

surrogate for fair value. 

When revaluing non-current assets by reference to current prices for assets newer than those being 

revalued (adjusted to reflect the present condition of the assets), the gross amount and the related 

accumulated depreciation are separately restated. 






previously recognised as an expense in the Surplus / deficit, the increment is recognised 

immediately as revenue in the surplus / deficit. 

Revaluation decrements are recognised immediately as expenses in the surplus/deficit, except that, 

to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class 

of assets, they are debited directly to the asset revaluation reserve. 


within a class of non-current assets, but not otherwise. 

Where an asset that has previously been revalued is disposed of, any balance remaining in the 

asset revaluation reserve in respect of that asset is transferred to accumulated funds. 

(i) 

(j) 


As a not-for-profit entity with no cash generating units, the Agency is effectively exempted from AASB 

136 Impairment of Assets and impairment testing. This is because AASB 136 modifies the 

recoverable amount test to the higher of fair value less costs to sell and depreciated replacement cost. 

This means that, for an asset already measured at fair value, impairment can only arise if selling costs 

are material. Selling costs are regarded as immaterial. 


Depreciation is provided for on a straight-line basis for all depreciable assets so as to write off the 

depreciable amount of each asset as it is consumed over its useful life to the agency. 

All material separately identifiable components of assets are depreciated over their shorter useful lives. 

_______________________________________________________________ 

7 




Depreciation rates for plant and equipment range from 10 per cent to 20 per cent. 

(k) 


The transfer of net assets between agencies as a result of an administrative restructure, transfers of 

programs / functions and parts thereof between NSW public sector agencies is designated as a 

contribution by owners and recognised as an adjustment to “Accumulated Funds”. This treatment is 

consistent with Urgent Issues Group Interpretation 1038 Contributions by Owners Made to Wholly- 

Owned Public Sector Entities. 

Transfers arising from an administrative restructure between government departments are recognised 

at the amount at which the asset was recognised by the transferor government department 

immediately prior to the restructure. In most instances this will approximate fair value. All other equity 

transfers are recognised at fair value. 

(l) 

(m) 

Maintenance 

The costs of day-to-day servicing costs or maintenance are charged as expenses as incurred, except 

where they relate to the replacement of a part or component of an asset, in which case the costs are 

capitalised and depreciated. 


Revenues, expenses and assets are recognised net of the amount of GST, except: 

 

 


Australian Taxation Office is recognised as part of the cost of acquisition of an asset or as part of 

an item of expense. 


(n) 

(o) 

Payables 

These amounts represent liabilities for goods and services provided to the agency and other amounts, 

including interest. Payables are recognised initially at fair value, usually based on the transaction cost 

or face value. Subsequent measurement is at amortised cost using the effective interest method. 

Short-term payables with no stated interest rate are measured at the original invoice amount where 


Receivables 


quoted in an active market. These financial assets are recognised initially at fair value, usually based 

on the transaction cost at face value. Subsequent measurement is at amortised cost using the 

effective interest rate method, less any allowance for impairment of receivables. Any changes are 

accounted for in the Operating Statement when impaired, derecognised or through the amortisation 

process. 

Short-term receivables with no stated interest rate are measured at original invoice amount where the 

effect of discounting is immaterial. 

(p) 

(q) 

Presentation 

All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency. 


Australian Accounting Standards and Interpretations that have recently been issued or amended but 

are not yet effective have not been adopted for the financial reporting period ended 30 June 2008. 

These are listed as follows: 

AASB 8 and AASB 2007-3 are effective for financial reporting periods commencing on or after 1 

January 2009. AASB 8 will result in a significant change in the approach to segment reporting, as it 

requires adoption of a 'management approach' to reporting on financial performance. 

AASB1049 Whole of Government and General Government Sector Financial Reporting apply to 

reporting periods beginning on or after 1 July 2008. 

_______________________________________________________________ 

8 


179



2. REVENUE 

2008 1 March to 30 

June 2007 

$’000 $’000 

Contributions from DoP 3,423 920 

Resources received free of charge (i) 176 79 

Sale of goods and services 490 137 

Other 118 52 

4,207 1,188 

(i) 

Resources received free of charge were for superannuation and LSL liability assumed by the Crown. 

3. EXPENSES 

(a) 

(b) 

(c) 

Personnel services: 

Personnel services are acquired from DoP and the cost 

comprises 

Salaries and wages (including recreation leave) 1,823 587 

Superannuation entitlements 199 56 

Long service leave 92 23 

Workers’ compensation insurance 8 5 

Payroll tax and fringe benefits tax 132 30 

2,254 701 

Other operating expenses: 

Auditor’s remuneration – audit of financial report 8 6 

Board and committee remuneration 22 – 

Contractors 156 123 

Fees for services 143 15 

Accommodation costs 238 104 

Staff training and conferences 15 32 

Travel costs 12 9 

Minor equipment purchases 39 13 

Other 141 43 

774 345 

Depreciation and amortisation: 

Plant and equipment 6 2 

6 2 

4. CURRENT ASSETS – CASH AND CASH EQUIVALENTS 2008 2007 

$’000 $’000 

Cash at bank 1,570 – 

1,570 – 

For the purposes of the Cash Flow Statement, cash at bank and cash on hand. 

Cash assets recognised in the Balance Sheet are reconciled to cash at the end of financial year as 

shown in the Cash Flow Statement as follows: 

Cash and cash equivalents (per Balance Sheet) 1,570 – 

Closing cash and cash equivalents (per Cash Flow 

Statement) 1,570 – 

_______________________________________________________________ 

10 





Sale of goods and services – 298 

Goods and services tax 9 3 

9 301 

6. NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT 

Plant and equipment Total 

$’000 $’000 


Gross carrying amount 31 31 


Net carrying amount 23 23 


Gross carrying amount 31 31 


Net carrying amount 29 29 


A reconciliation of the carrying amount of each class of property, plant and equipment at the beginning 

and end of the current reporting period is set out below. 

Year ended 30 June 2008 Plant and equipment Total 

$’000 $’000 

Net carrying amount at start of year 29 29 


Disposals – – 


Net carrying amount at end of year 23 23 

Year ended 30 June 2007 Plant and equipment Total 

$’000 $’000 

Net carrying amount at start of period – – 

Additions 31 31 

Disposals –- – 


Net carrying amount at end of period 29 29 


2008 2007 

$’000 $’000 

Creditors 131 91 

Accrued personnel services 10 – 

Unearned revenue – 25 

8. Current/non-current liabilities – Provisions 

141 116 

Personnel services provision 286 212 

Total provisions 286 212 

_______________________________________________________________ 

11 


181



Aggregate personnel services 

Provisions – current 284 211 


Total provisions per Balance Sheet 286 212 

Accrued personnel services (Note 7) 10 – 

296 212 


2008 2007 

$’000 $’000 

Balance at the beginning of the financial year 2 – 

Changes in equity – other than transactions with owners 

as owners 

– 

(138) 

Surplus for the year 1,173 140 

Balance at the end of the financial year 1,175 2 

10. RECONCILIATION OF NET CASH FLOWS FROM OPERATING 

ACTIVITIES TO OPERATING SURPLUS 

Operating surplus 1,174 140 

Decrease/(increase) in receivables 292 (301) 

Decrease/(increase) in other assets 6 (29) 

(Decrease)/increase in provisions 74 212 

(Decrease)/increase in payables 24 116 

Decrease/(increase) other (equity 

adjustment) – (138) 

Net cash flow provided by operating 

activities 1,570 – 


(a) Other expenditure commitments 

Aggregate other expenditure for the acquisition of computer 

and office equipment and fees for services contracted for at 

balance date but not provided for: 

Not later than one year 3 – 


(b) Operating lease commitments 

Aggregate operating lease commitments for office 

accommodation and motor vehicles 

Contracted for at balance date but not provided for: 

Not later than one year 263 261 

Later than one year but not later than five years 754 1,013 

Later than five years – – 

Total (including GST) 1,017 1,274 

The total commitments above includes input tax credits of $92,000 (2007: $116,000) that are expected to 

be recovered from the Australian Tax Office. 

_______________________________________________________________ 

12 





The Building Professionals Board has one legal case with an external legal provider. There will not be 

any liabilities other than the legal fees. It is estimated that these costs may total $9,000. 


The Board’s principal financial instruments are outlined below. These financial instruments arise 

directly from the Board’s operations or are required to finance the Board’s operations. The Board does 

not enter into or trade financial instruments, including derivative financial instruments, for speculative 

purposes. 

The Board’s main risks arising from financial instruments are outlined below, together with the Board’s 

objectives, policies and processes for measuring and managing risk. Further qualitative disclosures 

are included throughout this financial report. 

The Director has overall responsibility for the establishment and oversight of risk management and 

reviews and agrees policies for managing each of these risks. Risk management policies are 

established to identify and analyse the risks faced by the Board, to set risk limits and controls to 

monitor risks. Compliance with policies is reviewed by the Audit Committee on a continuous basis. 


Financial assets Note Category Carrying 

amount 

2008 

$’000 

Class: 

Cash and cash 

Carrying 

amount 

2007 

$’000 

equivalents 4 N/A 1,570 – 

Receivables 5 


cost) – 298 


Carrying 

amount 

Carrying 

amount 

2008 

$’000 

2007 

$’000 

Class: 

Payables 7 


amortised cost 131 83 


Credit risk arises when there is the possibility of the Board’s debtors defaulting on their contractual 

contributions, resulting in a financial loss to the Board. The maximum exposure to credit risk is 

generally represented by the carrying amount of the financial assets (net of any allowance for 

impairment). 

Credit risk arises from the financial assets of the Board, including cash, receivables, and authority 

deposits. No collateral is held by the Board. The Board has not granted any financial guarantees. 

Cash 

Cash comprises cash on hand and bank balances. Interest is earned on daily bank balances. 



all debtors is reviewed on an ongoing basis. Debts, which are known to be uncollectible, are written 

off. An allowance for impairment is raised when some doubt as to collection exists. The credit risk is 



The Board is not materially exposed to concentrations of credit risk to a single trade debtor or group 

of debtors. Based on past experience, debtors that are not past due (2008: $0; 2007: $298,000) and 

not less than three months past due (2008: $0; 2007: $0) are not considered impaired and together 

_______________________________________________________________ 

13 


183



these represent 100 per cent of the total trade debtors. There are no debtors which are currently not 

past due or impaired whose terms have been renegotiated. 


Liquidity risk is the risk the Board will be unable to meet its payment obligations when they fall due. 

The Board continuously manages risk through monitoring future cash flows and maturities planning 

to ensure adequate holding of high quality liquid assets. 

No assets have been have been pledged as collateral. The Board’s exposure to liquidity risk is 

deemed insignificant based on prior periods’ data and current assessment of risk. 


received, wether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in 




payment. 

Nominal 

amount 1 

Fixed 

interest 

rate 


$’000 

Variable 

interest 

rate 

Noninterest 

bearing 

Maturity dates 

5 

years 

2008 

Payables 131 – – 131 131 – – 

131 – – 131 131 – – 

2007 

Payables 83 – – 83 83 –- – 

83 – – 83 83 – – 



because of changes in market prices. The Board has no exposure to foreign currency risk and does 

not enter into commodity contracts. 

The effect on profit and equity due to a reasonably possible change in risk variable is outlined in the 

information below, for interest rate risk and other price risk. A reasonably possible change in risk 

variable has been determined after taking into account the economic environment in which the 

Board operates and the time frame for the assessment (i.e. until the end of the next reporting 


The analysis is performed on the same basis for 2007. The analysis assumes that all other variables 

remain constant. 


The Board does not account for any fixed rate financial instruments at fair value through profit or loss 

or as available-for-sale. Therefore, for these financial instruments, a change in interest rates would 

not affect profit or loss or equity. A reasonably possible change of +/- 1% is used, consistent with 

current trends in interest rates. The basis will be reviewed annually and amended where there is a 

structural change in the level of interest rate volatility. The Board’s exposure to interest rate risk is 

set out below. 



$’000 $’000 $’000 $’000 $’000 

2008 


Cash and cash 

equivalents 1,570 (16) (16) 16 16 

Receivables – – – – – 


Payables 131 – – – – 

_______________________________________________________________ 

14 




2007 


Cash and cash 

equivalents – – – – – 

Receivables 298 – – – – 


Payables 83 – – – – 


The Building Professionals Board is not aware of any circumstances that occurred after balance date 

which would render particulars included in the financial statements to be misleading. 

END OF AUDITED FINANCIAL STATEMENTS 

_______________________________________________________________ 

15 


185

Building Professional’s Board 

FINANCIAL REPORT 


CONTENTS 

Page No. 

Statement by members of the Board 1 


Statement of Changes in Equity 3 



Notes to and forming part of the financial statements 6 –18 


Western Sydney Parklands Trust 


for the period ended 30 June 2008 

CONTENTS 


Statement by members of the Trust 190 


Statement of Recognised Income and Expenditure 192 



Notes to and forming part of the financial report 195



189



Operating Statement 


Notes 

1 Jan 2008 to 

30 June 2008 

$’000 

Revenue from ordinary activities 

Grants/contributions 2 1,631 

Other income 2 521 

Total revenue 2,152 

Expenses from ordinary activities 

Personnel services 3(a) 56 

Other operating expenses 3(b) 1,387 

Depreciation and amortisation 3(c) 32 

Total expenses excluding losses 1,475 

Surplus for the period 8 677 


4 


191




Notes 

1 Jan 2008 to 

30 June 2008 

$’000 

Net increase/(decrease) in property plant and equipment 

– asset revaluation reserve 23,626 

Total income and expense recognised 

directly in equity 

Surplus for the period 

Total income and expenses recognised 

for the period 

23,626 

8 677 

24,303 


5 



Balance Sheet as at 30 June 2008 

ASSETS 


Notes 30 June 2008 

$'000 

Cash and cash equivalents 4 929 


Total current assets 1,143 

Non current assets 

Property, plant and equipment 6 338,592 

Total non-current assets 338,592 

Total assets 339,735 

LIABILITIES 


Payables 7 434 

Total current liabilities 434 

Total liabilities 434 

Net assets 339,301 

EQUITY 

Accumulated funds 315,675 

Reserves 23,626 

Total equity 8 339,301 


6 


193





Notes 1 January 2008 

to 30 June 2008 

$'000 

Receipts 

Grants/contributions received 1,795 

Other 633 

Total receipts 2,428 

Payments 

Personnel services (56) 

Other (1,443) 

Total payments (1,499) 

NET CASH FLOWS FROM OPERATING ACTIVITIES 9 929 

Net increase in cash 929 

Opening cash and cash equivalents – 

Closing cash and cash equivalents 4 929 


7 




Notes to and forming part of the Financial Report 


(a) 


The Western Sydney Parklands Trust was established under the Western Sydney Parklands Act 

2006. It commenced activities on 1 January 2008 and there is no comparative information. The Trust 

is responsible for managing 5,500 hectares of conservation, destination and community parklands in 

the western suburbs of Sydney. The Trust is a not-for-profit entity with no cash generating units. 

The financial report has been authorised for issue by the Board of the Trust for issue by the Chairman 

on 16 October 2008. 

(b) 


The financial report is a general purpose financial report which has been prepared in accordance 

with: 

 

 

Applicable Australian Accounting Standards (which include Australian interpretations) 

the requirements of the Public Finance and Audit Act 1983, the Public Finance and Audit 

Regulation 2005. 

The accrual basis of accounting and applicable accounting standards have been adopted. 

Financial report items are prepared in accordance with historical convention except property, plant 

and equipment which are recognised at fair value. 

Judgement, key assumptions and estimations management has made are disclosed in the relevant 

notes to the financial report. All amounts are rounded to the nearest one thousand dollars and are 

expressed in Australian currency. 

The following is a summary of the material accounting policies adopted by the Trust in the 

preparation of the financial report. The accounting policies have been consistently applied, unless 

otherwise stated. 

(c) 

(d) 

Statement of compliance 

The financial report and notes comply with Australian Accounting Standards, which include Australian 

Accounting Interpretations. 

Revenue recognition 

(i) Interest revenue is recognised to the extent that it is probable that the economic benefits will flow 

to the Trust and the revenue can be reliably measured, and control of a right to receive 

consideration for the provision of, or investment in, assets has been attained. 

(ii) 

Rental income is recognised in accordance with AASB 117 Leases on a straight line basis over 

the term of the lease. 

(iii) Grants and contribution are generally recognised as income when the Trust obtains control over 

the assets comprising the contribution. Control over contribution is normally obtained upon the 

receipt of cash. 

_______________________________________________________________ 

7 


195




(e) 

(f) 

(g) 

Personnel services 

The Trust’s accounts do not include provisions for long service leave or superannuation, nor is there 

any comparable provision for personnel services to reflect these liabilities. All of the Trust’s liabilities 

for long service leave and superannuation up to the end of the financial year have been paid. As 

staffs are employed by Department of Planning, any unfunded liability for these items has been 

transferred to the State, in accordance with Treasury Guidelines. 

Insurance 

A full comprehensive range of insurances covering areas such as workers compensation, motor 

vehicles, fidelity guarantee, public liability, and Industrial special risk is carried by the Department of 

Planning with the Treasury Managed Fund. This coverage extends to the operations of the Western 

Sydney Parklands Trust. These insurance covers are reviewed periodically to ensure they are 

adequate. 

Acquisition of assets 


controlled by the agency. Cost is the amount of cash or cash equivalents paid or the fair value of 

the other consideration given to acquire the asset at the time of its acquisition or construction or, 

where applicable, the amount attributed to that asset when initially recognised in accordance with 

the specific requirements of other Australian Accounting Standards. 

Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value 

at the date of acquisition. 


parties in an arm’s length transaction. 



(h) 

(i) 


Property, plant and equipment and intangible assets costing $5,000 and above individually (or forming 

part of a network costing more than $5,000) are capitalised. 


Physical non-current assets are valued in accordance with the Valuation of Physical Non-Current 

Assets at Fair Value Policy and Guidelines Paper (TT07-1). This policy adopts fair value in 

accordance with AASB 116 Property, plant and equipment. 


alternative uses in the existing natural, legal, financial and socio-political environment. However, 

in the limited circumstances where there are feasible alternative uses, assets are valued at their 



evidence, including current market selling prices for the same or similar assets. Where there is 

no available market evidence, the asset’s fair value is measured at its market buying price, the 

best indicator of which is depreciated replacement cost. 

The Trust revalue’s each class of property, plant and equipment at least every five years or with 


materially from its fair value at reporting date. The last valuation was carried out on 30 June 2008 

and was based on an independent assessment. 

Non-specialised assets with short useful lives are measured at depreciated historical cost, as a 

surrogate for fair value. 


being revalue (adjusted to reflect the present condition of the assets), the gross amount and the 

related accumulated depreciation are separately restated. 

_______________________________________________________________ 

8 










previously recognised as an expense in the surplus/deficit, the increment is recognised 

immediately as revenue in the surplus/deficit. 

Revaluation decrements are recognised immediately as expenses in the surplus/deficit, except 

that, to the extent that a credit balance exists in the asset revaluation reserve in respect of the 

same class of assets, they are debited directly to the asset revaluation reserve. 


within a class of non-current assets, but not otherwise. 

Where an asset that has previously been revalued is disposed of, any balance remaining in the 

asset revaluation reserve in respect of that asset is transferred to accumulated funds. 

(j) 

(k) 


As a not-for-profit entity with no cash generating units, the Trust is effectively exempted from AASB 

136 Impairment of assets and impairment testing. This is because AASB 136 modifies the 

recoverable amount test to the higher of fair value less costs to sell and depreciated replacement 

cost. This means that, for an asset already measured at fair value, impairment can only arise if 

selling costs are material. Selling costs are regarded by the Trust as immaterial. 


Depreciation is provided for on a straight-line basis for all depreciable assets so as to write off the 

depreciable amount of each asset as it is consumed over its useful life to the Trust. 

All material separately identifiable components of assets are depreciated over their shorter useful 

lives. 

Depreciation rates for buildings and infrastructure range from 2 per cent to 2.5 per cent. 

(l) 


The transfer of net assets between agencies as a result of an administrative restructure, transfers 

of programs / functions and parts thereof between NSW public sector agencies is designated as a 

contribution by owners and recognised as an adjustment to ‘Accumulated Funds’. This treatment is 

consistent with Urgent Issues Group Interpretation 1038 Contributions by owners made to whollyowned 

public sector entities. 

Transfers arising from an administrative restructure between government departments are 


department immediately prior to the restructure. In most instances this will approximate fair value. 

All other equity transfers are recognised at fair value. 

(m) 

(n) 

Maintenance 


except where they relate to the replacement of a part or component of an asset, in which case the 

costs are capitalised and depreciated. 


Revenues, expenses and assets are recognised net of the amount of GST, except: 

(i) 


Australian Taxation Office is recognised as part of the cost of acquisition of an asset or as part 

of an item of expense 

_______________________________________________________________ 

9 


197




(ii) receivables and payables are stated with the amount of GST included. 

Cash flows are included in the Cash Flow Statement on a gross basis, however, GST components 

of cash flows arising from investing and financing activities which are recoverable from, or payable 

to, the ATO are classified as operating cash flows. 

(o) 

(p) 

(q) 

Payables 

These amounts represent liabilities for goods and services provided to the agency and other 

amounts, including interest. Payables are recognised initially at fair value, usually based on the 

transaction cost or face value. Subsequent measurement is at amortised cost using the effective 

interest method. Short-term payables with no stated interest rate are measured at the original 

invoice amount where the effect of discounting is immaterial. 

Cash and cash equivalents 

Cash comprises cash on hand and at the bank. 

Receivables 


quoted in an active market. These financial assets are recognised initially at fair value, usually 

based on the transaction cost at face value. Subsequent measurement is at amortised cost using 

the effective interest rate method, less any allowance for impairment of receivables. Any changes 

are accounted for in the Operating Statement when impaired, derecognised or through the 

amortisation process. 

Short-term receivables with no stated interest rate are measured at original invoice amount where 


(r) 


The following Australian Accounting Standards and Interpretations that have recently been issued 

or amended but are not yet effective and have not been adopted for the annual reporting period 

ended 30 June 2008 by the Trust. The Trust does not anticipate any material impact of these new 

accounting standards on the financial report of the Trust. 


1 January 2009. AASB 8 will result in a significant change in the approach to segment reporting, 

as it requires adoption of a management approach to reporting on financial performance 

AASB1049 Whole of Government and General Government Sector Financial Reporting applies to 

reporting periods beginning on or after 01 July 2008. 



September 2007 and is applicable for financial reporting periods beginning on or after 1 January 

2009. 


Standards arising from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 

138 and Interpretations 1 & 12]. The revised AASB 123 is applicable to financial reporting periods 

commencing on or after 1 January 2009. It has removed the option to expense all borrowing costs 

and - when adopted – will require the capitalisation of all borrowing costs directly attributable to the 

acquisition, construction or production of a qualifying asset. 

. 

_______________________________________________________________ 

10 





2. REVENUE 

1 January 2008 

to 30 June 2008 

$’000 

Grants/contributions received 1,631 

Rental Income 490 

Other 31 

2,152 

3. EXPENSES EXCLUDING LOSSES 

(a) 

(b) 

(c) 

Personnel services expenses: 

Services rendered 56 

56 

Other operating expenses: 

Auditor’s remuneration – audit of financial report 10 

Board members remuneration 61 

Fees for services 894 

Maintenance expenses 395 

Other 27 

1,387 

Depreciation and amortisation expense: 

Plant and equipment 32 

32 

4. CURRENT ASSETS – CASH AND CASH EQUIVALENTS 

Cash at bank 929 

929 

Refer to Note 13 for details regarding credit risk, liquidity risk and market risk arising from financial 

instruments) 

Cash and cash equivalents (per Balance Sheet) 929 

Closing cash and cash equivalents 929 

(per Cash Flow Statement) 

The trust will seek to reconfirm the orginal approval under the PAFA Act from the NSW Treasury for the 

– direct entry negotiation authority $20 million 

– cheque cashing authority of $5,000 during 2008-09 


Sale of goods and services 94 

Goods and services tax 120 

214 

(Refer to Note 13 for details regarding credit risk, liquidity risk and market risk arising from financial 

instruments) 

_______________________________________________________________ 

11 


199




6. NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT 

As at 30 June 2008 – 

Land Buildings Infrastructure Total 

fair value 

$’000 $’000 $’000 $’000 

Gross carrying amount 334,497 350 3,777 338,624 

Accumulated depreciation – (1) (31) (32) 

Net carrying amount 334,497 349 3,746 338,592 


A reconciliation of the carrying amount of each class of property, plant and equipment at the beginning and 

end of the current reporting period is set out below. 

Year ended 30 June 2008 Land Buildings Infrastructure Total 

$’000 $’000 $’000 $’000 

Net carrying amount at start of 

– – – – 

period 

Additions – – – – 

Disposals – – – – 

Other movements 

– assets transferred in 311,203 18 3,777 314,998 

– asset revaluation 23,294 332 – 23,626 

Depreciation expense – (1) (31) (32) 

Net carrying amount at end of 

period 334,497 349 3,746 338,592 



to 30 June 2008 

$’000 

Creditors 434 

434 

(Refer Note13 for details regarding credit risk, liquidity risk and market risk arising from financial instruments) 


Accumulated 

funds 

$’000 

Reserves 

$’000 

Total 

$’000 

Balance at the beginning of the financial period – – – 

Increase/decrease in net assets from equity transfer 314,998 – 314,998 

Asset revaluation – 23,626 23,626 

Surplus for the period 677 677 

Balance at the end of the financial period 315,675 23,626 339,301 

Increase/decrease in net assets from equity transfers $’000 

Assets transferred from Corporation Sole EPA 1979 314,398 

Assets transferred from Department of Commerce 600 

314,998 

_______________________________________________________________ 

12 





9. RECONCILIATION OF SURPLUS FOR THE PERIOD TO NET CASH FLOWS FROM OPERATING 

ACTIVITIES 

Surplus for the period 677 

Depreciation 32 

(Increase) in receivables (214) 

Increase in payables 434 

Net cash flow from operating activities 929 



to 30 June 2008 

$’000 

Other expenditure commitments 

Aggregate other expenditure for the acquisition of computer 

and office equipment and fees for services contracted for at 

balance date but not provided for 

Not later than one year 118 

Total (including GST) 118 

The total commitments above include input tax credits of $10,710 that are expected to be recovered 

from the Australian Tax Office. 


The Western Sydney Parklands Trust is not aware of any contingent liabilities at the date of this 

report. 

12. RELATED PARTY DISCLOSURES 

(a) Board of the Trust 

The Board of the Trust during the financial period were: 

Name 

Date appointed 

Brendon Crotty 1 January 2008 

Michelle Rowland 1 January 2008 

Ro Coroneos 1 January 2008 

Bob Waldron 1 January 2008 

Jim Mitchell 1 January 2008 

Norma Shankie Williams 1 January 2008 

Bob Conroy 1 January 2008 

2 February 2008 (ceased 

Carl Solomon 

employment 27 Jun 2008) 

Suellen Fitzgerald 24 June 2008 

(b) Board members’ remuneration 

The total remuneration of Board members who were not government employees, including 

compulsory superannuation entitlements for the financial period was: 

$10,000 – $35,000 4 

$35,001 – $60,000 1 

_______________________________________________________________ 

13 


201





The Trust’s principal financial instruments are outlined below. These financial instruments arise 

directly from the Trust’s operations or are required to finance the Trust’s operations. The Trust 

does not enter into or trade financial instruments, including derivative financial instruments, for 

speculative purposes. 

The Trust’s main risks arising from financial instruments are outlined below, together with the 

Trust’s objectives, policies and processes for measuring and managing risk. Further qualitative 

disclosures are included throughout this financial report. 

The Director has overall responsibility for the establishment and oversight of risk management and 

reviews and agrees policies for managing each of these risks. Risk management policies are 

established to identify and analyse the risks faced by the Trust, to set risk limits and controls to 

monitor risks. Compliance with policies is reviewed by the Audit Committee on a continuous basis. 


Financial 

assets 


amount 

2008 

$’000 

Class: 

Cash and cash 

equivalents 4 N/A 929 


Financial 

liabilities 

Class: 


cost) 94 


amount 

2008 

$’000 

Payables 2 7 


amortised cost 434 

Notes 

1. Excludes statutory receivables and prepayments (i.e. not within scope of 

AASB 7) 

2. Excludes statutory payables and unearned revenue (i.e. not within scope of 

AASB 7) 


Credit risk arises when there is the possibility of the Trust’s debtors defaulting on their contractual 

contributions, resulting in a financial loss to the Trust. The maximum exposure to credit risk is 

generally represented by the carrying amount of the financial assets (net of any allowance for 

impairment). 

Credit risk arises from the financial assets of the Trust, including cash, receivables, and authority 

deposits. No collateral is held by the Trust. The Trust has not granted any financial guarantees. 

Cash 

Cash comprises cash on hand and bank balances. Interest is earned on daily bank balances. 



all debtors is reviewed on an ongoing basis. Debts, which are known to be uncollectable, are 

written off. An allowance for impairment is raised when there is objective evidence that the entity 

will not be able to collect all amounts due. The credit risk is the carrying amount (net of any 

_______________________________________________________________ 

14 





allowance for impairment). No interest is earned on trade debtors. The carrying amount 

approximates net fair value. Sales are generally made on 30 day terms. 

The Trust is not materially exposed to concentrations of credit risk to a single trade debtor or group 

of debtors. Based on past experience, debtors that are not past due $94,000 and not less than 

three months past due are not considered impaired and together these represent 100 per cent of 

the total trade debtors. There are no debtors which are currently not past due or impaired whose 

terms have been renegotiated. 


Liquidity risk is the risk that the Trust will be unable to meet its payment obligations when they fall 

due. The Trust continuously manages risk through monitoring future cash flows and maturities 

planning to ensure adequate holding of high quality liquid assets. 

No assets have been have been pledged as collateral. The Trust’s exposure to liquidity risk is 

deemed insignificant based on current assessment of risk. 


received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in 




payment. No Interest was applied during the period. 

The table below summarises the maturity profile of the Trust’s financial liabilities, together with the 

interest rate exposure. 

Maturity analysis and interest rate exposure of financial liabilities 

Weighted 

average 

effective 

interest 

rate 

$’000 

Nominal 

amount 

Fixed 

interest 

rate 


$’000 

Variable 

interest 

rate 

Noninterest 

bearing 

Maturity date 

$’000 

5 

years 

2008 

Payables 434 434 434 – – 

434 434 434 – – 



because of changes in market prices. The Trust has no exposure to foreign currency risk and does 

not enter into commodity contracts. 

The effect on profit and equity due to a reasonably possible change in risk variable is outlined in 

the information below, for interest rate risk and other price risk. A reasonably possible change in 

risk variable has been determined after taking into account the economic environment in which the 

Trust operates and the time frame for the assessment (i.e. until the end of the next reporting 


The analysis assumed that all other variables remain constant. 

(e) Fair value 

The amortised cost of financial instruments recognised in the balance sheet approximates the fair 

value because of the short-term nature of many of the financial instruments. 

(f) Interest rate risk 

The Trust does not account for any fixed rate financial instruments at fair value through profit or 

loss or as available-for-sale. Therefore, for these financial instruments, a change in interest rates 

would not affect profit or loss or equity. A reasonably possible change of +/- 1 per cent is used, 

consistent with current trends in interest rates. The basis will be reviewed annually and amended 

_______________________________________________________________ 

15 


203




where there is a structural change in the level of interest rate volatility. The Trust’s exposure to 




$’000 $’000 $’000 $’000 $’000 

2008 


Cash and cash 

equivalents 929 (9.29) (9.29) 9.29 9.29 

Receivables 214 


Payables 434 


The Western Sydney Parklands Trust is not aware of material non-adjusting events as defined by 

AASB 110 Events after Balance Sheet date which would have circumstances that occurred after 

balance date which would render particulars included in the financial report to be misleading. 


_______________________________________________________________ 

16 


Contacts 

Head Office 

23-33 Bridge Street, Sydney 

GPO Box 39, Sydney NSW 2001 

Tel: 02 9228 6111 

Fax: 02 9228 6455 

Email: information@planning.nsw.gov.au 

Information Centre 



Tel: 02 9228 6333 

Fax: 02 9228 6555 


Translating and Interpreting Service 

Please phone 131 450, ask for an interpreter in your 

language and request to be connected to 02 9228 6333 

– the Department of Planning Information Centre. Local 

call cost from fixed phones. Calls from mobile phones are 

charged at mobile rates. 

Metropolitan Regional Offices 

Heritage Branch 

3 Marist Place, Parramatta 

Locked Bag 5020, Parramatta NSW 2124 

Tel: 02 9873 8500 

Fax: 02 9873 8599 

Email: heritage@planning.nsw.gov.au 

Sydney East Region 



Tel: 02 9228 6333 

Fax: 02 9228 6244 


Sydney West Region 

Level 3, 3 Marist Place, Parramatta 

PO Box 404, Parramatta NSW 2124 

Tel: 02 9873 8500 

Fax: 02 9873 8599 

NSW Regional Offices 

Northern Region 

Grafton Office 

76 Victoria Street 

Locked Bag 9022, Grafton NSW 2460 

Tel: 02 6641 6600 

Fax: 02 02 6641 6601 

Email: northcoast@planning.nsw.gov.au 

Tamworth Office 

Level 3, Noel Park House, 155-157 Marius Street 

PO Box 550, Tamworth NSW 2340 

Tel: 02 6701 9689 

Fax: 02 6701 9690 

Hunter Region 

Newcastle Office 

PricewaterhouseCoopers Centre 

Level 2, 26 Honeysuckle Drive 

PO Box 1226, Newcastle NSW 2300 

Tel: 02 4904 2700 

Fax: 02 4904 2701 

Gosford Office 

Level 3, 107 Mann Street 

PO Box 1148, Gosford NSW 2250 

Tel: 02 4348 5000 

Fax: 02 4323 6573 

Southern Region 

Wollongong Office 

Level 2, 84 Crown Street 

PO Box 5475, Wollongong NSW 2520 

Tel: 02 4224 9450 

Fax: 02 4224 9470 

Email: wollongong@planning.nsw.gov.au 

Queanbeyan Office 

Queanbeyan Government Service Centre, 

11 Farrer Place 

PO Box 1814, Queanbeyan NSW 2620 

Tel: 02 6229 7900 

Fax: 02 6229 7901 

Alpine Resorts Assessments 

Shop 5A, Snowy River Avenue 

PO Box 36, Jindabyne NSW 2627 

Tel: 02 6456 1733 

Fax: 02 6456 1736 

Western Region 

Dubbo Office 

209 Cobra Street 

PO Box 717, Dubbo NSW 2830 

Tel: 02 6841 7528 

Fax: 02 6884 8483 


Level 3, 10 Valentine Avenue 


Tel: 02 9895 5950 

Fax: 02 9895 5949 

Email: bpb@bpb.nsw.gov.au 

Office of Strategic Lands 

Level 4, 10 Valentine Avenue 


Tel: 02 9895 7626 

Fax: 02 9895 7946

Financials - Department of Planning - NSW Government

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